Privatization in Hungary: Methods, Results and Problems

In Hungary, as in most of the centrally planned economies state property had become overwhelming in all the main branches of the national economy, except agriculture, by the early 1950es. In agriculture, state-frames had a share of about 15 percent, measured either by cultured land or by their contribution to production. In the late 1950es and early 1960es the creation of agricultural production cooperatives was also concluded and the share of private farms shrank to a few percent only. Still, private smallholders, together with the household plots of members of cooperatives added up to some 15 percent of cultivated land and to more than one third of agricultural production in the 1980es. Their share was even higher in fruit, vegetable and meat production and in some other special fields. Private property also survived in retail trade and in some services.