Foundations of the 'Agricultural Miracle' in Communist Hungary

Among the socialist states, only Hungary showed some impressive success in increasing agricultural production.After Hungarian agricultural production cooperatives were released from the state patronage in 1967, they could freely develop their production and start non-agricultural activities (P.187-195).In the early 1970s, they got access to the highly productive Western machines and technologies, which significantly increased production in animal husbandry, and yields per hectare of maize, wheat and sugar beet skyrocketed.The second reason for success was the integration of small-scale private production into agricultural production cooperatives (P.240-264).The study by Zsuzanna Varga on the Hungarian Agricultural Miracle provides detailed information on the features of this model of agricultural development.Varga rightly puts the question mark on the title -to stress the economic and moral limits of the 'agricultural miracle'.In Hungary, large-scale 'socialist' agricultural production fell into a cost trap in the 1980s, just like in all other socialist-bloc countries, due to the extreme increase in the cost of industrial inputs and to the political limitations of market-based freedoms (P.221-234).Since they were applied only to the agricultural sector, they exacerbated internal contradictions of the state command economy.Agricultural production cooperatives made large profits with non-agricultural goods and paid higher wages, which attracted skilled workers from the 'socialist' industry.The 'industrial lobby' and dogmatic forces opposed their outflow from industry to agriculture by making a fuss about 'private enrichment' and group interests, thus, getting broad support not only in the media, but also in the party leadership.Therefore, the actions of the successful agricultural-production cooperatives' chairmen were

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