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Rural development in Hungary


The paper deals with recent developments in the countryside of Hungary including social and economic processes before and after transition, relevant concepts of rural development, and institutional and policy background of rural development, and policy background of rural development.

Since the drastic economic and political changes in Central and Eastern Europe in 1990, many elements of the rural life have changed in Hungary. The country has begun the process of developing a market-oriented economy and a democratic political system, both of which have had a great impact on rural areas, rural people and the agricultural sector.

The transition from a centrally-planned to a market-oriented economy in Hungary is based on two laws of rural transition, the Compensation Law and the Transition Law for Agricultural Cooperatives. The paper discusses how they apply in Hungary. The paper also discusses Hungary's horizontal and vertical approaches to rural development.

The paper also draws conclusions based on Hungary's recent rural development experience.

· We should accept an approach which is more complex, considers rural areas in a holistic way, and gives consideration to the specific conditions of endogenous resources.

· All efforts aimed at alleviating rural poverty must be better coordinated, in order to improve their effectiveness.

· We have to influence governments and institutions to develop a well-functioning decentralized network for rural development and to create opportunities for rural people to play a significant role in these actions.

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