IDEAS home Printed from
   My bibliography  Save this article

The Great Transformation -- Without A Technological Revolution. The Case Of Hungary


  • Balazs Hamori
  • Katalin Szabo


The study examines the question of why the Hungarian economy is drifting twenty years after the change of regime into similarly critical situations, than it had directly before the change. Why the indebtedness has not been stopped, why the consolidation of the economy was not successful, and why the undealyable reforms were not set on their way? The authors mark the "one-sidedness" of the change of the regime as one of the reasons of this, meaining that the institutional changes unfolding at the end of the 80's, the political transformation and the foundation of the fundamental institutions of the market economy were not based on a technological transformation in the 90's. The variously colored governments remained equally insensitive to the necessity of the IT revolution, and to its consequences. For example, while an information technology ministry had already been in place in the United Kingdom in 1985, in Hungary the various economic plans, documents, governmental programs before and after the change of regime were based on an economic world view that was oriented towards the most traditional market economy. The regime-changers up to date have hardly taken any note of the fact that time had already past over the traditional market economy. The authors connect the deficiencies of the technological background of the change of the regimes with the perceptible (and growing) lagging of our competitiveness in several areas, and that the knowledge economy - compared even with countries starting from similar position - remained vestigial, or it has been growing extremely unevenly in the different areas.

Suggested Citation

  • Balazs Hamori & Katalin Szabo, 2012. "The Great Transformation -- Without A Technological Revolution. The Case Of Hungary," Montenegrin Journal of Economics, Economic Laboratory for Transition Research (ELIT), vol. 8(2), pages 151-164.
  • Handle: RePEc:mje:mjejnl:v:8:y:2012:i:2:p:151-164

    Download full text from publisher

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Dani Rodrik & Arvind Subramanian & Francesco Trebbi, 2004. "Institutions Rule: The Primacy of Institutions Over Geography and Integration in Economic Development," Journal of Economic Growth, Springer, vol. 9(2), pages 131-165, June.
    2. Kornai, János, 2010. "Innováció és dinamizmus. Kölcsönhatás a rendszerek és a technikai haladás között
      [Innovation and dynamism. Reciprocal effect between systems and technical advance]
      ," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(1), pages 1-36.
    3. Daron Acemoglu & Simon Johnson & James A. Robinson, 2002. "Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1231-1294.
    4. Douglass C. North & John Joseph Wallis & Barry R. Weingast, 2006. "A Conceptual Framework for Interpreting Recorded Human History," NBER Working Papers 12795, National Bureau of Economic Research, Inc.
    5. Robert W. Fogel, 1999. "Catching Up with the Economy," American Economic Review, American Economic Association, vol. 89(1), pages 1-21, March.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mje:mjejnl:v:8:y:2012:i:2:p:151-164. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nikola Draskovic Jelcic). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.