Hungary Economy in the 1950’s

Hungary Economy in the 1950’s

While both the territory and the population of the Hungary have not undergone changes of a certain entity following the Second World War (but the ethnic structure is now more homogeneous due to the exodus of about 260,000 Germans), the economy of the country has been changing both in agriculture and in the industrial one; foreign trade also found new outlets to other countries E of the Iron Curtain. These goals were achieved through a series of multi-year plans that aimed to transform the Hungary from an agricultural-industrial country with a predominance of agriculture, to an industrial-agricultural country with a predominance of industry. The new plants have made it possible to give work to many unemployed farmers, who have thus avoided having to emigrate. D ‘ on the other hand, the widespread use of machines (tractors, seeders, etc.) has freed many peasants from the heavy work in the fields, exercised in the past slavishly, who have increased the number of workers, which now reaches two million. The land ownership has undergone profound changes following the agrarian reforms of 1945 and 1950. With the first, the expropriation of properties with a surface greater than 100 jugeri (= 57 ha) was ordered, with the second about 3 million were expropriated. of ha, equal to about one third of the Hungarian soil.

Much of the land (almost 2 million hectares) was divided between 642,000 small owners, who were assigned lots from one and a half to 6 and a half hectares, depending on the number of family members and the quality of the land. At first, production decreased somewhat. Then cooperatives began to be created, in order to make exploitation collective, while the land remains the property of the peasants. The temporary return of workers to work in the fields was also facilitated and the standard of living improved through the construction of houses and new agricultural centers. An attempt was also made to extend the irrigated areas (Tiszalök dam on the Tisza) and tried to counteract the violence of the wind with the use of rows of trees. New crops have also been spread. For Hungary economics and business, please check

We then tried to enhance the mining heritage, which is not conspicuous; in December 1945 the mines were declared by the state, which manages them through a special company. Lignite and coal are the most important mineral product. From 7-8 million tons in 1938, lignite production increased to 18-19 million. Recent is the discovery of oil (Lispe field in the Zala committee) and large quantities of uranium ores in the Cinquechiese region.

Already before 1945 the Hungary it possessed a fair amount of industrial activity in some branches, such as agriculture, textiles, electricity, chemicals. The communist regime, in a manner consistent with what happened in the other popular republics, brought about profound changes to the industrial sector. First, the main private industries have been suppressed, while companies with less than 10 employees have been kept. A special center has been created for heavy industries (aimed at the construction of tractors, agricultural machinery, etc.), which deals with the rational exploitation of raw materials. It was then taken care that the industries have a more harmonious distribution and while up to 1945 they were mainly concentrated in the surroundings of Budapest, some completely new peripheral industrial districts were created.

This transformation of the U, from a predominantly agricultural state to an industrial-agricultural state, carried out by the managers at an accelerated pace, did not take place without frictions and contrasts, which also manifested themselves on the occasion of the workers’ revolt of 1956. Later many constraints were removed and the sectors (buses, railway wagons, motorcycles, precision machines, etc.) that are closer to the traditions of Hungarian industry have been strengthened.

The commercial movement reflects this phase of adjustment and evolution; the Hungary it has become a strong buyer of raw materials (especially iron ores) and exporter of processed products, mainly aimed at the less developed countries of south-eastern Europe.

The three-year plan 1958-1960 set itself the task of reorganizing and rebuilding the Hungarian economic-financial system, on the basis of a more realistic assessment of the country’s economic possibilities; the prospects for 1960-1965 are directed towards an only relative increase in the production of basic raw materials and a strengthening of the precision engineering industry. According to the 1960-1965 five-year plan, national income will have to increase by at least 150% and, through a fair distribution, the increase in real per capita income of at least 26-29% and the increase in consumption will be ensured. base of the population of 40-50%.

The state budget shows a surplus fluctuating around 1 billion forints. The revenues of 1957 come for 36 billion from state enterprises, for 5 from taxes, for 4 from loans; the expenses concern the national economy for 34 billion, defense for 2 and social services for 12 billion.

The currency is the forint. established in 1946, whose exchange rate is around 11 guilders for 1 US dollar; with 1 April 1957 the exchange rate with the currencies of Western countries and Yugoslavia for tourists was doubled (22 florins for 1 US dollar). This exchange does not apply to commercial transactions.

Hungary economics