Eugen Varga
Encyclopedia
Eugen Samuilovich Varga (November 6, 1879, Budapest
– October 7, 1964, Moscow
) was a Marxist
economist
of Hungarian origin.
He studied philosophy and economic geography at the University of Budapest. In 1906, he started writing in socialist and academic journals, mainly on economic subjects, but also on other topics. Before World War I
he gained some fame by discussing with Otto Bauer
about the origins of inflation in the Austro-Hungarian Empire
. In this period he belonged to the Marxist Centrists, of whom Karl Kautsky
and Rudolf Hilferding
were the most prominent spokesmen. He participated as minister of finance in the short-lived Hungarian Soviet Republic
of 1919. After the overthrow of the Soviet Republic he fled to Vienna. In 1920 he went to the Soviet Union
, where he started working for the Comintern
, specializing in international economic problems and agrarian questions. In years 1922-1927 he was working at the department of trade in the Soviet embassy in Berlin
. In the 1930s he became an economic adviser to Joseph Stalin
. He survived the purges of the 1930s. During World War II
he advised the Soviet Government in matters of post-war reparations. He attended the Potsdam Conference of 1945 as an expert. Like most of his compatriots living and working in Moscow, he joined the Communist Party of the Soviet Union
, but he also remained active in the Hungarian Communist Party
.
He authored the economic reports the congresses of the Comintern discussed between 1921 and 1935. A large number of his writings were studies of the international economic conjuncture
, in which he made great effort to assess quantitative trends in output, investment and employment using official economic data from numerous countries. He also extensively studied German
imperialism.
In 1946 he published The Economic Transformation of Capitalism at the End of the Second World War, in which he argued that the capitalist system was more inherently stable than had been hitherto believed. This led to the closure of the Institute which he headed. (See: Paolo Spriano, Stalin and the European Communists. London: Verso, 1985). Finally, in 1949 he would make his self-criticism. Though he remained a leading academic economist, his prestige had diminished. In the second edition of the Great Soviet Encyclopedia he was qualified as a "bourgeois economist". After Stalin's death in 1953, he reappeared on the scene, but the new men in power in the Kremlin
believing in the virtues of peaceful co-existence were not interested in Varga's predictions of the outbreak of a "necessary" economic crisis in the United States. In 1954 and 1959 he received the Lenin Orders, in 1954 he obtained a Stalin Prize and in 1963 a Lenin Prize
. After his death, his selected works in three volumes were published in the Soviet Union
, Hungary
, and East Germany.
Varga never returned to living in his native Hungary. Because he was very close to Mátyás Rákosi
, he was several times invited as an economic advisor to Hungary. In this period (1945-1950) he had specialized in economic planning, pricing and monetary reforms, i.e. reforms the Hungarian Communists now in power were carrying out. After the fall of Rákosi caused by the Hungarian Revolution of 1956 and the take-over by the Kádár
team, Varga's advisory work was not appreciated anymore.
Budapest
Budapest is the capital of Hungary. As the largest city of Hungary, it is the country's principal political, cultural, commercial, industrial, and transportation centre. In 2011, Budapest had 1,733,685 inhabitants, down from its 1989 peak of 2,113,645 due to suburbanization. The Budapest Commuter...
– October 7, 1964, Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...
) was a Marxist
Marxism
Marxism is an economic and sociopolitical worldview and method of socioeconomic inquiry that centers upon a materialist interpretation of history, a dialectical view of social change, and an analysis and critique of the development of capitalism. Marxism was pioneered in the early to mid 19th...
economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
of Hungarian origin.
He studied philosophy and economic geography at the University of Budapest. In 1906, he started writing in socialist and academic journals, mainly on economic subjects, but also on other topics. Before World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
he gained some fame by discussing with Otto Bauer
Otto Bauer
Otto Bauer was an Austrian Social Democrat who is considered one of the leading thinkers of the left socialist Austro-Marxist tendency...
about the origins of inflation in the Austro-Hungarian Empire
Austria-Hungary
Austria-Hungary , more formally known as the Kingdoms and Lands Represented in the Imperial Council and the Lands of the Holy Hungarian Crown of Saint Stephen, was a constitutional monarchic union between the crowns of the Austrian Empire and the Kingdom of Hungary in...
. In this period he belonged to the Marxist Centrists, of whom Karl Kautsky
Karl Kautsky
Karl Johann Kautsky was a Czech-German philosopher, journalist, and Marxist theoretician. Kautsky was recognized as among the most authoritative promulgators of Orthodox Marxism after the death of Friedrich Engels in 1895 until the coming of World War I in 1914 and was called by some the "Pope of...
and Rudolf Hilferding
Rudolf Hilferding
Rudolf Hilferding was an Austrian-born Marxist economist, leading socialist theorist, politician and chief theoretician for the Social Democratic Party of Germany during the Weimar Republic, almost universally recognized as the SPD's foremost theoretician of his century, and a...
were the most prominent spokesmen. He participated as minister of finance in the short-lived Hungarian Soviet Republic
Hungarian Soviet Republic
The Hungarian Soviet Republic or Soviet Republic of Hungary was a short-lived Communist state established in Hungary in the aftermath of World War I....
of 1919. After the overthrow of the Soviet Republic he fled to Vienna. In 1920 he went to the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
, where he started working for the Comintern
Comintern
The Communist International, abbreviated as Comintern, also known as the Third International, was an international communist organization initiated in Moscow during March 1919...
, specializing in international economic problems and agrarian questions. In years 1922-1927 he was working at the department of trade in the Soviet embassy in Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
. In the 1930s he became an economic adviser to Joseph Stalin
Joseph Stalin
Joseph Vissarionovich Stalin was the Premier of the Soviet Union from 6 May 1941 to 5 March 1953. He was among the Bolshevik revolutionaries who brought about the October Revolution and had held the position of first General Secretary of the Communist Party of the Soviet Union's Central Committee...
. He survived the purges of the 1930s. During World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
he advised the Soviet Government in matters of post-war reparations. He attended the Potsdam Conference of 1945 as an expert. Like most of his compatriots living and working in Moscow, he joined the Communist Party of the Soviet Union
Communist Party of the Soviet Union
The Communist Party of the Soviet Union was the only legal, ruling political party in the Soviet Union and one of the largest communist organizations in the world...
, but he also remained active in the Hungarian Communist Party
Hungarian Communist Party
The Communist Party of Hungary , renamed Hungarian Communist Party in 1945, was founded on November 24, 1918, and was in power in Hungary briefly from March to August 1919 under Béla Kun and the Hungarian Soviet Republic. The communist government was overthrown by the Romanian Army and driven...
.
He authored the economic reports the congresses of the Comintern discussed between 1921 and 1935. A large number of his writings were studies of the international economic conjuncture
Conjuncture
In general, a conjuncture is a period marked by some watershed event which separates different epochs.In economics, conjuncture is a critical combination of events....
, in which he made great effort to assess quantitative trends in output, investment and employment using official economic data from numerous countries. He also extensively studied German
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
imperialism.
In 1946 he published The Economic Transformation of Capitalism at the End of the Second World War, in which he argued that the capitalist system was more inherently stable than had been hitherto believed. This led to the closure of the Institute which he headed. (See: Paolo Spriano, Stalin and the European Communists. London: Verso, 1985). Finally, in 1949 he would make his self-criticism. Though he remained a leading academic economist, his prestige had diminished. In the second edition of the Great Soviet Encyclopedia he was qualified as a "bourgeois economist". After Stalin's death in 1953, he reappeared on the scene, but the new men in power in the Kremlin
Kremlin
A kremlin , same root as in kremen is a major fortified central complex found in historic Russian cities. This word is often used to refer to the best-known one, the Moscow Kremlin, or metonymically to the government that is based there...
believing in the virtues of peaceful co-existence were not interested in Varga's predictions of the outbreak of a "necessary" economic crisis in the United States. In 1954 and 1959 he received the Lenin Orders, in 1954 he obtained a Stalin Prize and in 1963 a Lenin Prize
Lenin Prize
The Lenin Prize was one of the most prestigious awards of the USSR, presented to individuals for accomplishments relating to science, literature, arts, architecture, and technology. It was created on June 23, 1925 and was awarded until 1934. During the period from 1935 to 1956, the Lenin Prize was...
. After his death, his selected works in three volumes were published in the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
, Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
, and East Germany.
Varga never returned to living in his native Hungary. Because he was very close to Mátyás Rákosi
Mátyás Rákosi
Mátyás Rákosi was a Hungarian communist politician. He was born as Mátyás Rosenfeld, in present-day Serbia...
, he was several times invited as an economic advisor to Hungary. In this period (1945-1950) he had specialized in economic planning, pricing and monetary reforms, i.e. reforms the Hungarian Communists now in power were carrying out. After the fall of Rákosi caused by the Hungarian Revolution of 1956 and the take-over by the Kádár
János Kádár
János Kádár was a Hungarian communist leader and the General Secretary of the Hungarian Socialist Workers' Party, presiding over the country from 1956 until his forced retirement in 1988. His thirty-two year term as General Secretary makes Kádár the longest ruler of the People's Republic of Hungary...
team, Varga's advisory work was not appreciated anymore.