Book Reviews: Economic Planning in Hungary, 1947-9. By GEORGE KEMÉNY. (London and New York: Royal Institute of International Affairs. 1952. Pp. x, 146. $2.50.)
| Published date | 01 December 1952 |
| DOI | 10.1177/106591295200500445 |
| Date | 01 December 1952 |
| Subject Matter | Articles |
710
Economic
Planning
in
Hungary,
1947-9.
By
GEORGE
KEMÉNY.
(London
and
New
York:
Royal
Institute
of
International
Affairs.
1952.
Pp.
x,
146.
$2.50.)
In
this
factual
study
Dr.
George
Kem6ny,
noted
Hungarian
economist
now
in
exile,
offers
a
keen
insight
into
the
intricacies
of
the
national
planning
process
in
a
typically
Eastern
European
country.
Although
written
primarily
for
the
technically
trained
economist,
this
book
will
serve
the
political
scientist
as
a
useful
instrument
in
understanding
the
politics
of
an
important
area
and
in
appraising
the
true
impact
of
the
new
&dquo;people’s
democracies&dquo;
on
the
Eastern
European
scene.
One
of
the
introductory
chapters
on
&dquo;The
Antecedents
of
Planning&dquo;
is
particularly
significant,
since
it
surveys
the
transition
era
(1945-47)
of
the
early
postwar
period
and
points
up
the
&dquo;economic
and
political
land-
slides&dquo;
which
paved
the
way
to
Communist
access
to
power
in
Hungary.
Here
the
author,
himself
a
member
of
early
coalition
cabinets,
effectively
stresses
the
economic
overtones
of
a
Communist
political
strategy
which
changed
from
constructive
and
co-operative
behavior
to
violent
tactics
of
coalition-wrecking.
In
a
few
cleverly
condensed
although
highly
technical
pages,
Dr.
Kem6ny
succeeds
in
setting
the
economic
background
to
the
Hungarian
Three-Year
Plan
which
officially
began
on
August
1,
1947.
Although
the
plan
proved
to
be
successful
at
first,
the
criteria
of
eventual
failure
were
discernible
by
the
expert
observer.
The
national
planning
effort
implied
a
tremendous
expansion
in
heavy
industries,
and
it
was
not
Hungary’s
legitimate
needs,
but
Russia’s
shortage
in
these
products
which
served
as
criterion
for
the
degree
of
expansion.
Thus
all
national
planning
was
clearly
subordinated
to
the
short-term
interests
of
the
Soviet
Union.
’
’
Once
the
initial
planning
impulse
ran
its
true
course,
serious
difficulties
began
to
disrupt
Hungary’s
economy.
Adverse
developments
in
foreign
trade
caused
a
depletion
of
the
country’s
scarce
foreign
exchange
reserves,
while
simultaneously
an
uneven
production
growth
jeopardized
the
ful-
fillment
of
plan
targets.
The
output
of
capital
goods
went
well
ahead,
but
that
of
consumer
goods
lagged
behind.
More
effective
was
the
struggle
against
unemployment.
The
Three-Year
Plan
dealt
primarily
with
in-
dustrial
unemployment
and
made
a
good
start
in
liquidating
unemploy-
ment
in
agriculture,
which
assumed
vast
dimensions
during
the
past
decades.
Even
these
successful
features
of
the
plan
were
soon
offset
by
the
increasing
rigidity
of
a
Communist-dominated
economic
system
which
abounded
in
frictions
and
obstacles.
In
the
author’s
opinion,
it
was
only
a
grim
determination
which
helped
the
planners
to
overcome
some
of
their
most
serious
difficulties.
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