People's Republic of Hungary
Encyclopedia
The People's Republic of Hungary or Hungarian People's Republic was the official state name of 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...

 from 1949 to 1989 during its Communist
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

 period under the guidance of 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....

. The state remained in existence until 1989 when opposition forces consolidated in forcing the regime to abandon communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

. The state considered itself the heir of the 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....

, which was formed in 1919 and was the second socialist state formed after Soviet Russia.

Formation

Following the "liberation" of Hungary from Nazi Germany by the Red Army, Soviet military occupation
Soviet occupation of Hungary
The Soviet occupation of Hungary, followed the defeat of Hungary in World War II, lasted for 45 years ending in 1991 shortly before the collapse of the Soviet Union -World War II:...

 ensued. After seizing most material assets from German hands, the Soviets tried and managed, to a certain extent, to control Hungarian political affairs. By coercion through force, when the Red Army
Red Army
The Workers' and Peasants' Red Army started out as the Soviet Union's revolutionary communist combat groups during the Russian Civil War of 1918-1922. It grew into the national army of the Soviet Union. By the 1930s the Red Army was among the largest armies in history.The "Red Army" name refers to...

 set up police organs to persecute the opposition, assuming this would enable 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....

 to seize the upcoming elections, to intense communist propaganda in an attempt to legitimize their rule. The Hungarian Communist Party, despite all the efforts, was trounced, receiving only 17% of votes, by a coalition government
Independent Smallholders, Agrarian Workers and Civic Party
The Independent Smallholders, Agrarian Workers and Civic Party is a political party in Hungary...

 under Prime Minister Zoltán Tildy
Zoltán Tildy
Zoltán Tildy , was an influential leader of Hungary, who served as Prime Minister from 1945–1946 and President from 1946-1948 in the post-war period before the seizure of power by Soviet-backed communists....

, thus frustrating soviet expectations of ruling through a democratically elected government.

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....

, however, intervened through force once again, resulting in a puppet government that disregarded Tildy, placed communists in important ministerial positions, and imposed several restrictive measures, like banning the victorious coalition government and forcing it to yield the Interior Ministry to a nominee of 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...

.

Communist Interior Minister László Rajk
László Rajk
László Rajk was a Hungarian Communist; politician, former Minister of Interior and former Minister of Foreign Affairs...

 established the ÁVH secret police
State Protection Authority
The State Protection Authority was the secret police force of Hungary from 1945 until 1956. It was conceived of as an external appendage of the Soviet Union's secret police forces, but attained an indigenous reputation for brutality during a series of purges beginning in 1948, intensifying in 1949...

, in an effort to suppress political opposition through intimidation, false accusations, imprisonment and torture. In early 1947, the Soviet Union pressed Hungarian leader Mátyás Rákosi
Mátyás Rákosi
Mátyás Rákosi was a Hungarian communist politician. He was born as Mátyás Rosenfeld, in present-day Serbia...

, famous for his use of salami tactics
Salami tactics
Salami tactics, also known as the salami-slice strategy, is a divide and conquer process of threats and alliances used to overcome opposition. With it, an aggressor can influence and eventually dominate a landscape, typically political, piece by piece. In this fashion, the opposition is eliminated...

, to take a "line of more pronounced class struggle."

The People's Republic of Hungary was formed thereafter. The same political dynamics continued through the years, with the Soviet Union pressing and manuevering hungarian politics through the Hungarian Communist Party, intervening whenever it needed to, through military coercion and covert operations. Hungarian communist László Rajk
László Rajk
László Rajk was a Hungarian Communist; politician, former Minister of Interior and former Minister of Foreign Affairs...

 (who was later executed) called it "a dictatorship of the proletariat
Dictatorship of the proletariat
In Marxist socio-political thought, the dictatorship of the proletariat refers to a socialist state in which the proletariat, or the working class, have control of political power. The term, coined by Joseph Weydemeyer, was adopted by the founders of Marxism, Karl Marx and Friedrich Engels, in the...

 without the Soviet form" called a "people's democracy." Hungary stayed that way until the late 1980's, when turmoil broke out across the Eastern Bloc, culminating with the fall of the Berlin Wall and the Soviet Union's dissolution.

Stalinist era (1949-1956)

Mátyás Rákosi
Mátyás Rákosi
Mátyás Rákosi was a Hungarian communist politician. He was born as Mátyás Rosenfeld, in present-day Serbia...

, the new leader of Hungary demanded complete obedience from fellow members of the Hungarian Working People's Party. Rákosi's main rival for power was László Rajk
László Rajk
László Rajk was a Hungarian Communist; politician, former Minister of Interior and former Minister of Foreign Affairs...

, who was then Hungary's Foreign Secretary. Rajk was arrested and Stalin's NKVD
NKVD
The People's Commissariat for Internal Affairs was the public and secret police organization of the Soviet Union that directly executed the rule of power of the Soviets, including political repression, during the era of Joseph Stalin....

 emissary coordinated with Hungarian General Secretary Rákosi and his ÁVH secret police to lead the way for the show trial
Show trial
The term show trial is a pejorative description of a type of highly public trial in which there is a strong connotation that the judicial authorities have already determined the guilt of the defendant. The actual trial has as its only goal to present the accusation and the verdict to the public as...

 of Rajk.

At the September 1949 trial, Rajk made a forced confession, claiming that he had been an agent of Miklós Horthy
Miklós Horthy
Miklós Horthy de Nagybánya was the Regent of the Kingdom of Hungary during the interwar years and throughout most of World War II, serving from 1 March 1920 to 15 October 1944. Horthy was styled "His Serene Highness the Regent of the Kingdom of Hungary" .Admiral Horthy was an officer of the...

, Leon Trotsky
Leon Trotsky
Leon Trotsky , born Lev Davidovich Bronshtein, was a Russian Marxist revolutionary and theorist, Soviet politician, and the founder and first leader of the Red Army....

, Josip Broz Tito
Josip Broz Tito
Marshal Josip Broz Tito – 4 May 1980) was a Yugoslav revolutionary and statesman. While his presidency has been criticized as authoritarian, Tito was a popular public figure both in Yugoslavia and abroad, viewed as a unifying symbol for the nations of the Yugoslav federation...

 and Western imperialism. He also admitted that he had taken part in a murder plot against Mátyás Rákosi and Ernő Gerő. Rajk was found guilty and executed.

Despite their helping Rákosi to liquidate Rajk, future Hungarian leader János 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...

 and other dissidents were also purged from the party during this period. During Kádár's interrogation, the ÁVH beat him, smeared him with mercury to prevent his skin pores from breathing, and had his questioner urinate into his pried-open mouth.

Rákosi thereafter imposed authoritarian rule on Hungary. At the height of his rule, Rákosi developed a strong cult of personality
Cult of personality
A cult of personality arises when an individual uses mass media, propaganda, or other methods, to create an idealized and heroic public image, often through unquestioning flattery and praise. Cults of personality are usually associated with dictatorships...

. Dubbed the “bald murderer,” Rákosi imitated Stalinist political and economic programs, resulting in Hungary experiencing one of the harshest dictatorships in Europe. He described himself as "Stalin's best Hungarian disciple" and "Stalin's best pupil."

Repression was harsher in Hungary than in the other satellite countries in the 1940s and 1950s due to a more vehement Hungarian resistance. Approximately 350,000 Hungarian officials and intellectual party members were purge
Purge
In history, religion, and political science, a purge is the removal of people who are considered undesirable by those in power from a government, from another organization, or from society as a whole. Purges can be peaceful or violent; many will end with the imprisonment or exile of those purged,...

d from 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...

 from 1948 to 1956. Any member with a western connection was immediately vulnerable, which included large numbers of people who had spent years in exile in the West during the Nazi-occupation of Hungary. Approximately 150,000 were also imprisoned, with 2,000 summarily executed.

Additionally, during "social purges" of non-party members, in Budapest at 2:00 a.m. on Mondays, Wednesdays, and Fridays, vans transported purge targets, who by 1953, numbered approximately 700,000. Of those, 98,000 were branded as spies and saboteurs, 5,000 of which were executed. These social purges used immense amounts of resources, including almost one million Hungarian adults employed to record, control, calculate, indoctrinate, spy on and sometimes kill targets of the purge.

Rákosi rapidly expanded the education system in Hungary. This was an attempt to replace the educated class of the past by what Rákosi called a new "working intelligentsia". In addition to effects such as better education for the poor, more opportunities for working class children and increased literacy in general, this measure also included the dissemination of communist ideology in schools and universities. Also, as part of an effort to separate the Church from the State
Separation of church and state
The concept of the separation of church and state refers to the distance in the relationship between organized religion and the nation state....

, religious instruction was denounced as propaganda and was gradually eliminated from schools.

The government collectivized agriculture, and it extracted profits from the country's farms to finance rapid expansion of heavy industry, which attracted more than 90% of total industrial investment. At first Hungary concentrated on producing primarily the same assortment of goods it had produced before the war, including locomotives and railroad cars. Despite its poor resource base and its favorable opportunities to specialize in other forms of production, Hungary developed new heavy industry in order to bolster further domestic growth and produce exports to pay for raw-material import.

Cardinal József Mindszenty, who had opposed the German Nazis and the Hungarian Fascists during the Second World War, was arrested in December 1948 and accused of treason. After five weeks under arrest, he confessed to the charges made against him and he was condemned to life imprisonment. The protestant churches were also purged and their leaders were replaced by those willing to remain loyal to Rákosi's government.

The new Hungarian military hastily staged public, pre-arranged trials to purge "Nazi remnants and imperialist saboteurs". Several officers were sentenced to death and executed in 1951, including Lajos Toth, a 28 victory-scoring fighter ace
Fighter Ace
Fighter Ace was a massively multiplayer online computer game in which one flies World War II fighter and bomber planes in combat against other players and virtual pilots...

 of the World War II Royal Hungarian Air Force, who had voluntarily returned from US captivity to help revive Hungarian aviation. The victims were cleared posthumously following the fall of communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...

.

Rákosi had difficulty managing the economy and the people of Hungary saw living standards fall. His government became increasingly unpopular, and when Joseph Stalin died in 1953, Mátyás Rákosi was replaced as prime minister by Imre Nagy
Imre Nagy
Imre Nagy was a Hungarian communist politician who was appointed Chairman of the Council of Ministers of the People's Republic of Hungary on two occasions...

. However, he retained his position as general secretary of the Hungarian Working People's Party and over the next three years the two men became involved in a bitter struggle for power.

As Hungary's new leader, Imre Nagy removed state control of the mass media and encouraged public discussion on changes to the political system and liberalizing the economy. This included a promise to increase the production and distribution of consumer goods. Nagy also released rightist opposition from prison and talked about holding multiparty elections and withdrawing Hungary from the Warsaw Pact.

On 9 March 1955, the Central Committee of the Hungarian Working People's Party condemned Nagy for rightist deviation. Hungarian newspapers joined the attacks and Nagy was accused of being responsible for the country's economic problems and on 18 April he was dismissed from his post by an unanimous vote of the National Assembly. Rákosi once again became the leader of Hungary.

Rákosi's power was undermined by a speech made by Nikita Khrushchev
Nikita Khrushchev
Nikita Sergeyevich Khrushchev led the Soviet Union during part of the Cold War. He served as First Secretary of the Communist Party of the Soviet Union from 1953 to 1964, and as Chairman of the Council of Ministers, or Premier, from 1958 to 1964...

 in February 1956. He denounced the policies of Joseph Stalin and his followers in Eastern Europe. He also claimed that the trial of László Rajk had been a "miscarriage of justice". On 18 July 1956, Rákosi was forced from power as a result of orders from the Soviet Union. However, he did manage to secure the appointment of his close friend, Ernő Gerő
Erno Gero
Ernő Gerő was a Hungarian Communist Party leader in the period after World War II and briefly in 1956 the most powerful man in Hungary as first secretary of its ruling communist party.-Life and career:...

, as his successor.

On 3 October 1956, the Central Committee of the Hungarian Working People's Party announced that it had decided that László Rajk
László Rajk
László Rajk was a Hungarian Communist; politician, former Minister of Interior and former Minister of Foreign Affairs...

, György Pálffy, Tibor Szőnyi and András Szalai had wrongly been convicted of treason in 1949. At the same time it was announced that Imre Nagy had been reinstated as a member of the party.

1956 Revolution

The Hungarian Revolution of 1956 began on October 23 as a peaceful demonstration of students in Budapest
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...

. The students protested for the implementation of several demands
Demands of Hungarian Revolutionaries of 1956
On October 23, 1956, a group of Hungarian students compiled a list of sixteen points containing key national policy demands. Following an anti-Soviet protest march through the Hungarian capital of Budapest, the students attempted to enter the city's main broadcasting station to read their demands...

 including an end to Soviet occupation. The police
State Protection Authority
The State Protection Authority was the secret police force of Hungary from 1945 until 1956. It was conceived of as an external appendage of the Soviet Union's secret police forces, but attained an indigenous reputation for brutality during a series of purges beginning in 1948, intensifying in 1949...

 made some arrests and tried to disperse the crowd with tear gas. When the protesters attempted to free those who had been arrested, the police opened fire on the crowd, provoking rioting throughout the capital.

Early the following morning, Soviet military units entered Budapest and seized key positions. Citizens and soldiers joined the protesters chanting "Russians go home" and defacing communist party symbols. The Central Committee of the Hungarian Working People's Party responded to the pressure by appointing the reformer Imre Nagy
Imre Nagy
Imre Nagy was a Hungarian communist politician who was appointed Chairman of the Council of Ministers of the People's Republic of Hungary on two occasions...

 as the new Prime Minister.

On October 25, a mass of protesters gathered in front of the Parliament Building. ÁVH units began shooting into the crowd from the rooftops of neighboring buildings. Some Soviet soldiers returned fire on the ÁVH, mistakenly believing that they were the targets of the shooting. Supplied by arms taken from the ÁVH or given by Hungarian soldiers who joined the uprising, some in the crowd started shooting back.

Imre Nagy now went on Radio Kossuth and announced he had taken over the leadership of the Government as Chairman of the Council of Ministers of the People's Republic of Hungary
Council of Ministers of the People's Republic of Hungary
The Council of Ministers of the People's Republic of Hungary was created following the founding of the People's Republic of Hungary. Along with the state itself, it was dissolved on 23 October 1989...

. He also promised "the far-reaching democratization of Hungarian public life, the realisation of a Hungarian road to socialism in accord with our own national characteristics, and the realisation of our lofty national aim: the radical improvement of the workers' living conditions."

On October 28, Nagy and a group of his supporters, including János Kádár, Géza Losonczy, Antal Apró, Károly Kiss, Ferenc Münnich and Zoltán Szabó, managed to take control of the Hungarian Working People's Party. At the same time revolutionary workers' councils and local national committees were formed all over Hungary.

The change of leadership in the party was reflected in the articles of the government newspaper, Szabad Nép (i.e. Free People). On 29 October the newspaper welcomed the new government and openly criticised Soviet attempts to influence the political situation in Hungary. This view was supported by Radio Miskolc that called for the immediate withdrawal of Soviet troops from the country.

On October 30, Imre Nagy announced that he was freeing Cardinal József Mindszenty and other political prisoners. He also informed the people that his government intended to abolish the one-party state. This was followed by statements of Zoltán Tildy, Anna Kéthly and Ferenc Farkas
Kisbarnaki Ferenc Farkas
Ferenc Farkas de Kisbarnak was Chief Scout of the Hungarian Boy Scouts, commanding officer of the Royal Ludovika Akadémia, the country's officer training school, and General of the Hungarian VI Army Corps during World War II...

 concerning the restitution of the Smallholders Party, the Social Democratic Party and the Petőfi (former Peasants) Party.

Nagy's most controversial decision took place on 1 November when he announced that Hungary intended to withdraw from the Warsaw Pact and proclaim Hungarian neutrality. He asked the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

 to become involved in the country's dispute with the Soviet Union.

On 3 November, Nagy announced the details of his coalition government. It included communists (János Kádár, Georg Lukács
Georg Lukács
György Lukács was a Hungarian Marxist philosopher and literary critic. He is a founder of the tradition of Western Marxism. He contributed the concept of reification to Marxist philosophy and theory and expanded Karl Marx's theory of class consciousness. Lukács' was also an influential literary...

, Géza Losonczy), three members of the Smallholders Party (Zoltán Tildy, Béla Kovács and István Szabó), three Social Democrats (Anna Kéthly, Gyula Keleman, Joseph Fischer), and two Petőfi Peasants (István Bibó and Ferenc Farkas). Pál Maléter
Pál Maléter
Pál Maléter was born to Hungarian parents in Eperjes, a city in the northern part of Historical Hungary, today part of Slovakia. He was the military leader of the 1956 Hungarian Revolution....

 was appointed minister of defence.

Nikita Khrushchev
Nikita Khrushchev
Nikita Sergeyevich Khrushchev led the Soviet Union during part of the Cold War. He served as First Secretary of the Communist Party of the Soviet Union from 1953 to 1964, and as Chairman of the Council of Ministers, or Premier, from 1958 to 1964...

, the leader of the Soviet Union, became increasingly concerned about these developments and on November 4, 1956 he sent the Red Army
Red Army
The Workers' and Peasants' Red Army started out as the Soviet Union's revolutionary communist combat groups during the Russian Civil War of 1918-1922. It grew into the national army of the Soviet Union. By the 1930s the Red Army was among the largest armies in history.The "Red Army" name refers to...

 into Hungary. Soviet tanks immediately captured Hungary's airfields, highway junctions and bridges. Fighting took place all over the country but the Hungarian forces were quickly defeated.

During the Hungarian Uprising an estimated 20,000 people were killed, nearly all during the Soviet intervention. Imre Nagy was arrested and replaced by the Soviet loyalist, János 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...

, as head of the newly formed Hungarian Socialist Workers' Party
Hungarian Socialist Workers' Party
The Hungarian Socialist Workers' Party was the ruling Marxist–Leninist party of Hungary between 1956 and 1989. It was organised from elements of the Hungarian Working People's Party during the 1956 Hungarian Revolution...

 (Magyar Szocialista Munkáspárt). Nagy was imprisoned until being executed in 1958. Other government ministers or supporters who were either executed or died in captivity included Pál Maléter, Géza Losonczy, Attila Szigethy and Miklós Gimes.

Changes under Kádár

First Kádár led retributions against the revolutionaries. 21,600 dissidents were imprisoned, 13,000 interned, and 400 killed. But in the early 1960s, Kádár announced a new policy under the motto "He who is not against us is with us", a variation of Rákosi's quote: "He who is not with us is against us". He declared a general amnesty, gradually curbed some of the excesses of the secret police, and introduced a relatively liberal cultural and economic course aimed at overcoming the post-1956 hostility towards him and his regime.

In 1966, the Central Committee approved the "New Economic Mechanism
New Economic Mechanism
The New Economic Mechanism was a major economic reform launched in the People's Republic of Hungary in 1968.- Reform :The period from 1956–1968 was one of reform in Eastern Europe...

", through which it sought to overhaul the economy, increase productivity, make Hungary more competitive in world markets, and create prosperity to promote political stability. Over the next two decades of relative domestic quiet, Kádár's government responded alternately to pressures for minor political and economic reforms as well as to counter-pressures from reform opponents.

By the early 1980s, it had achieved some lasting economic reforms and limited political liberalization and pursued a foreign policy which encouraged more trade with the West. Nevertheless, the New Economic Mechanism led to mounting foreign debt, incurred to subsidise unprofitable industries.

Economy

As a member of the Eastern Bloc
Eastern bloc
The term Eastern Bloc or Communist Bloc refers to the former communist states of Eastern and Central Europe, generally the Soviet Union and the countries of the Warsaw Pact...

, initially, Hungary was shaped by various directives of 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...

 that served to undermine Western institutional characteristics of market economies
Market economy
A market economy is an economy in which the prices of goods and services are determined in a free price system. This is often contrasted with a state-directed or planned economy. Market economies can range from hypothetically pure laissez-faire variants to an assortment of real-world mixed...

, democratic governance (dubbed "bourgeois democracy" in Soviet parlance), and the rule of law subduing discretional intervention by the state. The Soviets modeled economies in the rest of the Eastern Bloc
Eastern bloc
The term Eastern Bloc or Communist Bloc refers to the former communist states of Eastern and Central Europe, generally the Soviet Union and the countries of the Warsaw Pact...

, such as Hungary, along Soviet command economy lines. Economic activity was governed by Five Year Plans, divided into monthly segments, with government planners frequently attempting to meet plan targets regardless of whether a market existed for the goods being produced.

Producer goods were favored over consumer goods, causing consumer goods to be lacking in quantity and quality in the shortage economies
Shortage economy
Shortage economy is a term coined by the Hungarian economist, János Kornai. He used this term to criticize the old centrally-planned economies of the communist states of the Eastern Bloc...

 that resulted. Overall, the inefficiency of systems without competition or market-clearing prices became costly and unsustainable, especially with the increasing complexity of world economics. Meanwhile, other Western European nations experienced increased economic growth in the Wirtschaftswunder
Wirtschaftswunder
The term describes the rapid reconstruction and development of the economies of West Germany and Austria after World War II . The expression was used by The Times in 1950...

 ("economic miracle") Trente Glorieuses
Trente Glorieuses
Les Trente Glorieuses refers to the thirty years from 1945-1975 following the end of the Second World War in France. The name was first used by the French demographer Jean Fourastié...

 ("thirty glorious years") and the post-World War II boom.

While most western European economies essentially began to approach the per capita
Per capita
Per capita is a Latin prepositional phrase: per and capita . The phrase thus means "by heads" or "for each head", i.e. per individual or per person...

 Gross Domestic Product
Gross domestic product
Gross domestic product refers to the market value of all final goods and services produced within a country in a given period. GDP per capita is often considered an indicator of a country's standard of living....

 levels of the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, Hungary's did not, with its per capita GDPs falling significantly below their comparable western European counterparts:
Per Capita GDP (1990 $
Dollar
The dollar is the name of the official currency of many countries, including Australia, Belize, Canada, Ecuador, El Salvador, Hong Kong, New Zealand, Singapore, Taiwan, and the United States.-Etymology:...

)
1938 1990
Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

$1,800 $19,200
Czechoslovak Socialist Republic
Czechoslovak Socialist Republic
The Czechoslovak Socialist Republic was the official name of Czechoslovakia from 1960 until end of 1989 , a Soviet satellite state of the Eastern Bloc....

$1,800 $3,100
Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

$1,800 $26,100
Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

$1,300 $16,800
People's Republic of Hungary $1,100 $2,800
People's Republic of Poland
People's Republic of Poland
The People's Republic of Poland was the official name of Poland from 1952 to 1990. Although the Soviet Union took control of the country immediately after the liberation from Nazi Germany in 1944, the name of the state was not changed until eight years later...

$1,000 $1,700
Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

$900 $10,900


The per capita GDP figures are similar when calculated on PPP basis:
Per Capita GDP (1990 $
Dollar
The dollar is the name of the official currency of many countries, including Australia, Belize, Canada, Ecuador, El Salvador, Hong Kong, New Zealand, Singapore, Taiwan, and the United States.-Etymology:...

)
1950 1973 1990
Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...

$3,706 $11,235 $16,881
Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

$3,502 $10,643 $16,320
Czechoslovak Socialist Republic
Czechoslovak Socialist Republic
The Czechoslovak Socialist Republic was the official name of Czechoslovakia from 1960 until end of 1989 , a Soviet satellite state of the Eastern Bloc....

$3,501 $7,041 $8,895(Czech)/
$7,762(Slovakia)
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....

$2,834 $6,058 $6,871
People's Republic of Hungary $2,480 $5,596 $6,471
Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...

$2,397 $8,739 $12,210


Housing shortages also emerged. The near-total emphasis on large low quality prefabricated apartment blocks, such as Hungarian Panelház
Panelház
Panelház is the name of a type of block of flats in Hungary and Hungarian inhabited areas of the Pannonian Basin. Transylvanian Magyars call these buildings tömbház . It was the main housing type built in the Socialist era. From 1959 to 1990 788,000 panel flats were built in Hungary...

, was a common feature of Eastern Bloc cities in the 1970s and 1980s. Even by the late 1980s, sanitary conditions were generally far from adequate. Only 60% of Hungarian housing had adequate sanitation by 1984, with only 36.1% of housing having piped water.

Transition to Western-style democracy

Hungary's transition to a Western-style democracy was one of the smoothest among the former Soviet bloc. By late 1988, activists within the party and bureaucracy and Budapest-based intellectuals were increasing pressure for change. Some of these became reformist social democrats, while others began movements which were to develop into parties. Young liberals formed the Federation of Young Democrats (Fidesz); a core from the so-called Democratic Opposition formed the Association of Free Democrats (SZDSZ), and the national opposition established the Hungarian Democratic Forum
Hungarian Democratic Forum
The Hungarian Democratic Forum , abbreviated to MDF, was a centre-right political party in Hungary. It had a liberal conservative and Christian democratic ideology...

 (MDF). Nationalist movements, such as the Jobbik, reappeared after a rapid decline in nationalist sentiment following the establishment of the People's Republic. Civic activism intensified to a level not seen since the 1956 revolution.

In 1988, Kádár was replaced as General Secretary of the Communist Party, and reform communist leader Imre Pozsgay
Imre Pozsgay
Imre Pozsgay is a Hungarian, ex-Communist, politician who played a key role in Hungary's transition to democracy after 1988. He is currently an advisor to prime minister Viktor Orbán....

 was admitted to the Politburo. In 1989, the Parliament adopted a "democracy package", which included trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...

 pluralism; freedom of association, assembly, and the press; a new electoral law; and in October 1989 a radical revision of the constitution, among others. A Central Committee plenum in February 1989 endorsed in principle the multiparty political system and the characterization of the October 1956 revolution as a "popular uprising", in the words of Pozsgay, whose reform movement had been gathering strength as Communist Party membership declined dramatically. Kádár's major political rivals then cooperated to move the country gradually to Western-style democracy. The Soviet Union reduced its involvement by signing an agreement in April 1989 to withdraw Soviet forces by June 1991.

National unity culminated in June 1989 as the country reburied Imre Nagy, his associates, and, symbolically, all other victims of the 1956 revolution. A national round table, comprising representatives of the new parties and some recreated old parties—such as the Smallholders and Social Democrats—the Communist Party, and different social groups, met in the late summer of 1989 to discuss major changes to the Hungarian constitution in preparation for free elections and the transition to a fully free and democratic political system.

In October 1989, the Communist Party convened its last congress and re-established itself as the Hungarian Socialist Party (MSZP). In a historic session on October 16–20, 1989, the Parliament adopted legislation providing for multiparty parliamentary elections and a direct presidential election. The legislation transformed Hungary from a People's Republic into the Republic of Hungary, guaranteed human and civil rights, and created an institutional structure that ensures separation of powers among the judicial, executive, and legislative branches of government. On the day of the 1956 Revolution, October 23, the Hungarian Republic was officially declared (by the provisional President of the Republic Mátyás Szűrös
Mátyás Szurös
Mátyás Szűrös is a Hungarian politician. He served as provisional President of the Republic from October 18, 1989–May 2, 1990. His presidency occurred during Hungary's transition from communist to democratic government...

), replacing the Hungarian People's Republic. The revised constitution also championed the "values of bourgeois democracy and democratic socialism" and gave equal status to public and private property.

Hungary decentralized its economy and strengthened its ties with western Europe; in May 2004 Hungary became a member of the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...

.

See also

  • History of Hungary
    History of Hungary
    Hungary is a country in central Europe. Its history under this name dates to the early Middle Ages, when the Pannonian Basin was colonized by the Magyars, a semi-nomadic people from what is now central-northern Russia...

  • List of Worker's Party General Secretaries

External links

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