Introduction
The impact of transition and structure of property rights
The impact of agriculture on the environment
Conclusions
References
 

The author devotes attention primarily to the events of the 1990s, while fully aware that the roots of agriculture-related concerns in the fields of the protection of the environment and the protection of nature extend back several decades. The events witnessed in the past years verify that the establishment of an eco-social market economy cannot be accomplished within a few years; a more lengthy period will doubtless be required for this. The unequivocal endeavour of the countries of Central and Eastern Europe, among them Hungary, is that they should, as soon as possible, gain full entry into the European Union. The country stands in need of external resources and, it appears, that within the scope of endeavours related to environmental protection integrated into rural development, the European Union is prepared to grant certain financial resources, to be available for use in Hungary in the future. The primary condition for this is the impartial exploration of the conditions prevailing, aimed at maximum objectivity. It is a well-established fact that in the absence of diagnosis there can be no therapy. The author thus regards his work in this as large-scale diagnostics performed on the agricultural environment in Hungary.

Within this section, several consequences of fundamental importance of the change in the political and economic system are discussed.

At the end of the 1980s, approximately 10 percent of the total land area cultivated for agriculture was under state control; 70 percent under cooperative, and 20 percent under private control. Thus, in Hungarian agriculture privatization was marked by the transfer into private hands of land and asset property which previously belonged not to the state but to the production cooperatives. By the end of 1998, almost the entire former cooperative land property and the majority of state land property had been transferred to private ownership.
On the basis of the provisions of the Compensation Act, approximately 700 000 individuals have obtained an average of three hectares of agricultural land. The number of landowners has risen very substantially, while the average dimensions of land property have undergone strong deconcentration. (Sz?cs-Csendes-Pálovics, 1997). Foreign nationals are not entitled to purchase land property; neither are Hungarian cooperatives or any type of company or partnership. Thus, practically no land remains under the ownership of the latter, who are therefore obliged to rent land from private owners of land property.
On examination of this issue from the aspect of sustainability, the following inferences can be made:

• the great disconnection between land ownership and land utilization should, from the aspect of soil conservation, be regarded as an unfavourable development;
• neither does the maximization in the course of 10 years of land rental periods with the exception of plantations provide appropriate assistance towards more widespread good economic practice.

The period following 1990 saw a substantial decline in the emphasis on agriculture within the national economy, with respect both to GDP and to the number of actively employed wage earners. The decline witnessed in agricultural production, and particularly in livestock production, occurred is a substantial degree in the agricultural areas of less favourable conditions and natural resources, characterized by a weak infrastructure and industry.
The sustainability of agriculture was seen to weaken considerably: both in general and particularly in the above areas. In the past few years it has become evident within both professional and scientific spheres and to policy makers that the sustainability of rural areas cannot be based merely on agricultural policy taken strictly in the narrower sense (and, within this, the state subsidy system). "The necessity for the interconnection of agricultural policy, rural development policy taken in the wider sense (with particular respect to the development of infrastructure) and environmental policy is now evident" (Szabó, 1998). At the same time, the role of the agricultural producers, in their capacity as the guardians of the landscape, is by no means recognized to such an extent in Hungary as in the European Union. Although, as will be seen in the discussion to follow, the necessary legislative basis is already available, the system of the financial recognition of services for the protection of the landscape and nature is still to be developed.

Within the agricultural sector, liberalization manifested itself primarily in the freeing of producer and consumer prices and also, parallel to this, in a drastic decrease in state subsidies. The emergence of market prices for materials and energy created the incentive for greater thrift throughout the national economy, including agriculture; the beneficial effect of this on environmental protection has been clearly visible. The data from the Economist presented in Figure 1 demonstrates unambiguously that in Hungary the PSE indicator remains far below that in data corresponding both to the OECD and to the European Union.

Figure 1: Farm subsidies
Source: The Economist, 1998

The following sections will deal, on the one hand, with characteristics peculiar to Hungary in the agricultural land market and on the other with changes in input and output prices.

The most important conditions for the creation of a healthy land market may be summarized as follows:

• the prospects for profitability in agricultural production should be of an appropriate level, and should prove stable;
• the legal framework governing the sale and purchase and the renting of land areas should be clear-cut and concise, and should not restrict market forces to an excessive degree.

Between 1990 and 1997 an approximate threefold increase in farm-gate prices for agricultural products was recorded, while the price index for industrial products necessary for agricultural production increased to almost four times their price at the beginning of that period; thus, the gap between the farm-gate price index and the price index of industrial products used in agriculture was observed to widen in the course of less than a decade.
While in the 1970s and 1980s concern arose from the rigidity of the price system and the dominance of prices fixed by the authorities, in the present decade high-ratio price changes by exposure to fluctuations in market demand render any well-considered planning and development of production an incalculable process. (HCSO¹,1998). In the past few years, the decline in inputs (agricultural chemicals and energy) has greatly exceeded that of outputs; thus, the conclusion can be drawn that agricultural production has taken on a more extensive, and at the same time less environmentally polluting character. The author will attempt to expound this in greater detail in the following section.
 
 

In Hungary, the agricultural production exerts a multifaceted effect on the environment, since 66.6 percent of the land area of the country is given over to agricultural production. Environmental pollution and the deterioration of the environment resulting from plant and livestock production both demand attention primarily in respect of the protection of the soil and water. Neither should the air polluting effect of agriculture be neglected, while the positive role of agriculture in the shaping of the landscape and in the preservation of biodiversity is, in many respects, of determinant significance.

Between 1986 and 1990 the NPK balance in soils in Hungary showed a distinctly positive balance for all of the three macroelements cited, but particularly with respect to nitrogen. In contrast, between 1991 and 1995 significant nutrient deficiency emerged. The other main conclusions are summarized in the following (Ruzsányi, 1997; Urfi, 1998):

• in the first period examined, the P and K nutrient reserves of the soil increased considerably, which contributed greatly to the fact that the efficiency of plant production did not decline more markedly between 1991 and 1995;
• between 1986 and 1990, one third of artificial nitrogen fertilizer was utilized in a manner considered wasteful and destined to cause environmental pollution;
• by the latter half of the 1990s, fertilization with phosphorus and potassium had practically ceased, while the use of nitrogen decreased to a third of its former quantity, leading to a substantial moderating tendency in levels of environmental burden.

In addition to the use of agricultural chemicals and fertilizers, melioration activity also influences to a considerable degree both the efficiency of production and the sustainable utilization of land. As a consequence of the fundamental transformation in the conditions of land ownership and land utilization in Hungary, and also because of the decrease in state subsidies for melioration, in 1996 melioration investments were applied to a total of 20 000 hectares of land, compared with over 190 000 hectares in 1985 (HCSO, 1998: pp. 68-71).
Although the amount of land available in Hungary is to be regarded as markedly favourable, the situation today is far from beneficial with respect to quality. That is to say, a considerable proportion of lands are composed of low-yield sandy or alkaline soils. The pH of soils has also fallen progressively in the past few decades as a consequence of the wasteful use of artificial fertilizer. In addition the widespread use of liquid manure technology has caused a significant proportion of agricultural land to be exposed to erosion by wind and water.
A contradictory picture has emerged with regard to mechanization. In contrast to the heavy, power- and labour-oriented machinery formerly used, which were utilized to the detriment of the soil structure, the years leading up to the present time have seen the arrival of smaller, lighter machines; at the same time, the prevailing technical standards have deteriorated in comparison with the (even then alarming) situation of the late 1980s. In the past few years, a great deal of second-hand machinery has appeared in Hungary; the fuel consumption and requirements for spare parts and servicing typical of such equipment exceed per se those of products of modern technology.

Unfortunately the author is obliged to state that there isno reliable statistical data available on water utilization for agriculture in Hungary.
Of the two main branches of agriculture, only estimates can be referred to in respect of livestock production. Between 1990 and 1997, with the exception of horse stock numbers, declines of between 29 percent and 54 percent were observed in stock numbers for the various main species; this was accompanied by a substantial decrease in the quantities of water utilized in livestock production. The 38 percent decline in pig stock numbers, coupled with the repression of the application of liquid manure technology, exerted a beneficial effect on the environmental burden.
With regard to crop production, the Hungarian Central Statistics Office, working on the basis of data issued by the Ministry of Transport, Telecommunications and Water Management, publishes figures for water utilization in plant production. It can be seen clearly from the data that rises were witnessed in every respect until the 1990s, which have been characterized by a declining tendency.
However, cause for concern arises from the fact that statistical evaluation extends only to the various types of agricultural companies, partnerships and cooperatives; no measurements of water utilization are taken either by individual producers or by the population. The reason behind this is that at present approximately 40 percent of arable land and land used for agriculture are used exclusively for collective farming.
In the first half of the 1990s, drought conditions exerted a moderating effect on the previously observed decline in the quantity of water used for irrigation; however, the higher levels of precipitation experienced in the past few years have accordingly led to a decrease in water requirements for irrigation. A concern unconditionally meriting consideration here is that, partly due to climatic conditions and partly as a consequence of inefficient management of water supplies, soil water levels in the area between the Danube and the Tisza have fallen by several metres in approximately fifteen years. The attainment of a solution to this problem ranks among the major tasks to be accomplished in environmental management.

Changes in land ownership have exerted an influence towards increased thrift with respect to water resources. This development has also been motivated by the fact that water needs have multiplied in the past decade. Within the framework of melioration investments, activity related to soil drainage had practically ceased by the mid-1990s, and the exploitation and replenishment of the capacity of the irrigation systems is also hampered by the present fragmented structure of land ownership.

Agriculture plays a crucial role with respect to the protection of the landscape. The following are determinant factors related to the effects of agriculture on the landscape:

• conditions of land ownership and land utilization;
• distribution of the respective branches of cultivation and production within the land areas devoted to agricultural activity;
• the structural composition of plant production and animal production;
• intensity of production.

• a favourable aesthetic change was derived through a more diversified operational structure, produced as a consequence of the deconcentration of the dimensions of agricultural enterprises, though the undoubtedly evocative, attractive sight of the wheat fields edged with poppies represents a step backwards from the aspect of agronomic and economic considerations;
• the substantial growth of areas neglected, uncultivated, or cultivated without due care has a deteriorative effect on the landscape, at the same time raising issues of plant health and hygiene.

Substantial results have been achieved in the field of the protection of nature in Hungary during the present decade (Table 1). In the past few years, a number of studies published have dealt with issues connected with biodiversity, both in general and also in relation to agriculture (Láng et al., 1994, Márkus-Nagy, 1997, Varga et al., 1998).
Márkus and Nagy (1997) found out that the intensification of agriculture has played a significant role in the degradation of agricultural landscape and other habitats, and in the reduction of biological diversity. These authors also stated the opinion that "despite intensification, in Hungary there are still large areas with agricultural habitats of outstanding value with respect to the protection of the natural environment".

Table 1: Protected areas

The authors classify the following types of land among those agricultural systems of significance from the aspect of the protection of the natural environment under conditions currently existing in Hungary:

• extensive areas of arable land,
• rice plantations,
• pasture lands,
• traditional vineyards and orchards,
• mixed farming systems,
• fish lakes,
• reed beds.

1. Core areas for the protection of nature.
2. Nature protection buffer zones and areas for the protection of water sources.
3. Transitional zones.
4. Agricultural zones.
5. Areas withdrawn from cultivation.

The detrimental effects of environmental degradation have resulted in an impact on agriculture primarily via the factors outlined below.
The reduction in soil depth caused by wind and water erosion has both exerted an adverse effect on soil fertility, and increased the risk of eutrophication due to soil being washed into watercourses. The acidification of soils and the fall in their pH values has had an unfavourable influence on most plants yields. It has also been instrumental in the introduction into the food chain of various heavy metals. The adoption of the widespread use of liquid manure technologies has, besides causing soil and water pollution, resulted in the reduction of organic fertilizer produced in livestock production.
With respect to water management, a whole range of negative experience and observations could be reported. In the area between the Danube and Tisza Rivers, underground water levels have sunk to such a degree as to put at risk agricultural production. The deterioration of the water drainage infrastructure made a considerable contribution to the fact that at the beginning of 1999 several hundred thousand hectares of agricultural land remained covered by water for a protracted period of time. It should also be noted that, in addition to causing ecological damage, the diversion of the River Danube in the Szigetköz region in 1992 seriously restricts the development of agricultural production.

This section will deal firstly with those general issues related to the legal, planning and institutional systems of environmental policy. This will be followed by the discussion of a number of aspects of environmental protection. The author will finally touch upon the role played by non-governmental organizations and other groups within society in relation to environmental protection.

As a result of the rounds of specialized professional, social and administrative discussions and conciliatory sessions spanning a number of years (approximately a dozen versions of the bill having been formulated), in the spring of 1995, the National Assembly passed Act LIII 1995 on general legislation relating to the protection of the environment (HOJ², 1995). In the same year, parliament passed Act LVI 1995 relating to product fees for environmental protection (HOJ, 1995); the governmental and ministerial directive connected with this was also issued without further delay. Foreign investors and Hungarian nationals concerned about the environment all noted with approval that, in accordance with the stipulations of the environmental protection act, a governmental directive had been issued in connection with environmental protection impact assessment.
Another package of acts was passed in 1996; this package has a more direct effect than the above legislation on the agricultural economy. The package included: Act LIII 1996 on the protection of nature; Act LIV 1996 on forests and their conservation; Act LV 1996 on the protection of game and on hunting. After lengthy discussions, Act XXVIII 1998 on the protection of livestock was passed in the spring of 1998.

In 1991, the government passed a ruling entitled the "Long- and short-term plan of measures related to the protection of the environment"; however, the urgency of the endeavour to implement the objectives of this plan differed greatly among the individual ministries. The autumn of 1997 saw the passing of a National Assembly ruling on the National Environmental Protection Programme (NEPP).
This latter concept was formulated thus by the legislative body: "The National Environmental Protection Programme represents a six-year interventional plan system designed to result in solutions to, or to initiate the solving of, the present environmental problems of the country, and to endeavour to prevent such future problems" (HOJ, 1997). Each year the government formulates a plan of measures to be implemented, and subsequently reports to parliament on the accomplishment of these measures. In 1995 and 1996, the proportion of expenditure on environmental protection in Hungary amounted to approximately 1 percent of GDP; the NEPP anticipates that this ratio will increase to between 1.7 percent and 2.2 percent of GDP during 2000-2002.

In 1990, the Ministry of Environmental Protection and Regional Planning (MEPRP) was formed, whose responsibilities include the following areas: environmental protection, the protection of nature, issues related to building and construction, regional planning, the protection of historic buildings, meteorology.
The above structural framework continued to exist, with only minor changes, until the summer of 1998, when the new government took the decision to transfer regional planning and issues surrounding building and construction to the sphere of authority of the minister of agriculture, and the protection of historic buildings to that of the minister of culture.
In addition to its activity in the protection of the environment and nature the Ministry of Environmental Protection (MEP, former MEPRP) now supervises the National Meteorological Service. Twelve environmental protection inspectorates and eleven national park directorates contribute to the work of the MEP in the accomplishment of tasks related to the protection of the environment and nature at the local level. The Chief Inspectorate for the Protection of the Environment and Nature acts as a national authority. Observations based on the experience of six months would not be sufficient to provide a fair evaluation of the effect of the above restructuring.

Intense activity is currently in progress at the Ministry of Agriculture and Regional Development (MARD) for the purpose of formulating an Agricultural Environmental Protection Programme (MARD, 1998).

Despite the fact that there can as yet be no consideration of a uniform, comprehensive agricultural environmental protection policy in Hungary, a certain proportion of the legal and institutional conditions necessary are already in place.
In addition to the 1995 Environmental Protection Act, the Nature Protection Act passed in 1996 also bears particular significance in this respect (HOJ, 1996). The act includes the declaration, made in Hungary for the first time, to the effect that: "The preservation of protected natural assets and areas must be supported by means of the provision of state subsidies, the granting of tax concessions, and the establishment of a credit system to promote environmentally sound agricultural activity" (HOJ, 1996).
In addition to the above, recent years have seen the introduction of a number of new acts closely related to agriculture which give prominence to the requirements of environmental protection. These acts are the following: the Livestock Production Act, the Animal Health and Hygiene Act, the Livestock Feeding Act, and the Animal Protection Act. At the MARD, the coordination of agricultural environmental protection is performed by the Department of Agricultural Environmental Protection operating within the framework of the Chief Department of Agricultural Environmental Protection and Plant Health and Hygiene. At the MEP, the investigation of interaction between agriculture and the protection of nature is primarily the task of the Office for the Protection of Nature.

On examination of the conditions prevailing in Hungary, no omission should be made of the important fact that in the past decades prices for materials and energy, which were previously kept at artificially low levels by means of state subsidies, have now undergone the transformation to market prices. In practice, with respect to agriculture among the other sectors, this has resulted in considerably higher prices for artificial fertilizers, medical preparations for livestock, energy, water, etc. This encourages increased thrift with regard to the use of materials and energy; consequently, it may be ascertained that in the conditions currently prevailing in Hungary, even the enforcement of market prices has, from the aspect of environmental protection, represented substantial progress towards the establishment of "correct" prices (Szabó, 1997).
However, it would not be correct to assert the principle of the development of "correct" prices independent of the consideration for space and time. That is, due to social-political concerns, great circumspection should be employed in, for example, the further broadening of the range of product fees linked to environmental protection, or the planned establishment and introduction of environmental green taxes. This raises the issue of the completion of, and necessity for, social impact studies.
Meanwhile, the author considers the introduction of surcharges on agricultural inputs above market prices (e.g., that of the nitrogen tax) to be unrealistic for the foreseeable future.

The task of plant protection is outlined by Directive 2/1998 (bearing the force of an act) (KERSZÖV Computer, 1998). The above law, together with ministerial directive 5/1988, which was issued for the purpose of its implementation, specifies in detail the tasks to be accomplished with respect to the organization of plant protection, protection against damaging substances and organisms, the distribution and use of certain pesticides, and activity in the interest of plant protection. Particularly strict regulations apply to the inner protection zone of waterworks and places where water is drawn, in that the use of pesticides is prohibited in such areas. In outer protection zones pesticides may be used only with the prior permission of the authorities responsible for water supplies and for public health in the area concerned. This law also provides directives on the treatment of pesticide residues.
One of the current concerns in Hungary is the disposal of pesticide packaging; a pesticide waste also represents a further constant source of danger. Both issues still await solutions, until when the only available alternatives are storage (well or badly arranged) in the best case, and a direct threat to the environment in the worst case. Experts stress that in the modernization of obsolete plant protection machinery, a certain available prominence must be granted to environmentally sound forms of technology. The operation of the state inspection system is performed by specialists employed at the MARD plant health and hygiene and soil protection stations.

There is no self-contained law in force in Hungary with respect to the use of organic and artificial fertilizers. It is to be anticipated that one of the directives linked to the new Plant Health and Hygiene Act will regulate this range of issues; the Fertilizers Act in force in Germany is to serve as the basis for the formulation of this directive.
As was mentioned in a previous section, 1995 saw the introduction of laws, which are considered to be in conformity to with European Union legislation, relating both to animal health and hygiene and to the production and distribution of animal feeds. These laws provide for far-reaching assertions concerning the requirements for environmental protection and the protection of animals. The Animal Health and Hygiene Act, for example, sets out the highly detailed regulation of the procedures to be followed for animal carcasses to be rendered harmless.

The sections dealing with land ownership and land utilization in Act LV 1994 on agricultural land (HOJ, 1994) have given rise to great debate, and opinion is truly divided. However, the measures connected with the preservation of the quantity and quality of agricultural land included in this act have been received with almost universal acceptance.
From the aspect of environmental protection, this Act is of particularly significance in that, as compared to former Land Act I 1987, soil protection is featured as a new section in this law, with the soil protection fine being introduced. Due to the unrealistically low price of agricultural land, the above recently passed act decrees that "Where agricultural land is utilized for other purposes a single, once-only land protection fee is to be paid" (act quoted).
As opposed to the concept of the land protection fee, which is payable for legal activity, the endeavour underlying the land protection fine is to sanction practices deviating from the proper use of agricultural land (if, for example, an area under nature protection safeguard is used for unlicensed purposes or for purposes deviating from the branch of cultivation normally performed there). This act prescribes multifaceted obligation in the interest of avoiding erosion, increasing soil acidity or alkalinity, etc.
Evaluation by specialists in soil science is required with respect to, for example: irrigation; the disposal on agricultural land of sewage, sludge and other forms of non-dangerous waste; the disposal of liquid manure. Mention should finally be made of the fact that the tasks of the state with respect to land protection are fulfilled by the Ministry of Agriculture and Regional Development, with the cooperation of the Ministry of Environmental Protection, via the plant health and hygiene and soil protection stations (i.e., authorities).

The National Assembly passed the Environmental Protection Act and the Water Management Act simultaneously (HOJ, 1995); the latter, with consideration to those requirements relating to the protection of the environment and of nature, contains laws and obligations connected with the utilization of water and watercourses, the preservation of opportunities for use, and the prevention of damage. Among other aspects, this Act decrees that, in the meeting of the demand for water supplies, the essential requirements for the protection of nature precede the utilization of water for economic purposes; furthermore, the water consumer is obliged to pay a water resource utilization fee for the water lying beneath the surface of the land used. Such fees have increased substantially over the past few years, thus providing the incentive for greater thriftness.
On 1 September 1997, a governmental directive was introduced which, in connection with the act relating to the management of water supplies, contains stipulations on the protection of water resources (HOJ, 1997). Among others, the limitations and prohibitions also affecting agricultural production feature in this law, primarily in the disposal of liquid manure. In zones set aside for the protection of surface and sub-surface water, strict stipulations relate both to livestock production and to plant production.

In market economy conditions, in addition to those possibilities provided by legal regulations, the state also has the opportunity to provide incentives for environmentally sound practices by means of subsidies and taxes.
Subsidies constitute important instruments for economic regulators with respect to environmental management (Bai, 1998; Szabó, 1997; Szolnokiné, 1997). During the past few years in Hungary subsidies have been available, for the purposes of agricultural environmental protection, from the Central Environmental Protection Fund (CEPF) and from agricultural subsidy and regional planning resources.
With respect to sources of land cultivation subsidies considered substantial from the aspect of agricultural environmental protection, the following are the characteristic points.
In terms of further advances, the most important task to be accomplished, besides the broadening of the range of subsidies granted and the increasing of the funds available for allocation to such purposes, is to ensure that where state subsidies are granted the stipulation of strict requirements relating to environmental protection, and naturally the monitoring of the adherence to these, should be achieved. Such requirements have not as yet been formulated.
With regard to the tax system, the situation at present is rather ambivalent. A positive example to be cited is that, pursuant to the act on corporation tax preferential depreciation, tariffs (33 percent) apply to heat-producing equipment fuelled by agricultural and forestry by-products. A fact even more particular in nature is that the act on VAT allocates a preferential tax code of 12 percent both in general to fossil fuels and to environmentally sound fuels of varied composition produced from industrial and agricultural waste. An aspect to be evaluated as negative with respect to environmental management is that chemical products for agricultural purposes are exempted from the general tax code of 25 percent. It is at the same time gratifying that in the service sector environmental protection-related planning, expert counselling, agricultural laboratory examinations, the laboratory examination of environmental elements and provisions for animal health and hygiene fall under a tax code of 12 percent. The clash between profitability and environmental protection is to be seen the most clearly in the provision which enables agricultural producers, within a certain defined framework, to reclaim a substantial proportion of tax included in the price of diesel fuel. (This constitutes a type of "negative green tax".)

According to some studies, environmental awareness among the population of Hungary has increased in the past few years, while other studies state exactly the opposite. However, experts agree that the more educated and the younger the individual, the greater his or her awareness of the environment. The adult population shows a greatly differentiated, often highly ambivalent relation to environmental risks. A substantial proportion of people are of the opinion that their own role in the origin of environmental pollution is a minor one, while they play a substantial part in the elimination of the consequences. This indicates the lack of an individual sense of responsibility. The results of these surveys verify nevertheless that the decline in the standard of living has led to a parallel decrease in a willingness for financial sacrifice among the population.
On the whole: "The attitude of Hungarian society to the environment corresponds to the position occupied by the country in the world order; that is, members of society are much less aware than their counterparts in the more highly developed countries of western Europe, but more environmentally aware than those in the countries of eastern Europe" (Füzesi-Tistyán, 1998).

With the change of the political system in 1989, there occurred an abrupt increase in the number of "green" non-governmental organizations in Hungary. It is difficult to determine precisely the number of non-governmental organizations concerned with the protection of the nature and environment now in operation, since this number is constantly changing, and the registers produced relating to these bodies contain contradictory data. Over a thousand non-governmental organizations are now involved in issues related to the protection of the nature and environment, the scale of these bodies extending from school interest groups to national organizations. The non-governmental organizations have also established loose networks in the fields of, for example, the preservation of air purity, energy, waste matter, and public education. The respective organizations also possess a high degree of functional independence within the networks (MEPRP, 1997).
The "Green Spider" computer network developed by the non-governmental organizations, is one of the most efficient and effective forms of communication. Over two hundred organizations are connected to the network, the only governmental body so far linked to this being the MEP. This network provides an excellent forum for the MEP to announce draft legislation, observations and responses, and invitations for funding applications.
For the purposes of providing the necessary scientific, professional and social background for environmental protection, the National Council for Environmental Protection (NCEP) was formed as a consultant body of the government in April 1996. One third of the members of the NCEP are representatives of non-governmental organizations involved in the protection of the environment. Other members ensure participation in this body from the world of science and the business community.
Of the committees within the Central Environmental Protection Fund, the committee dealing with the allocation of expenditure for public purposes enjoys the highest degree of participation from among the society at large: five of the six committee members are delegates from non-governmental organizations.
NGOs may apply to take part in state tasks pertaining to the specialized government departments with the costs incurred to be covered by the state budget. Via their day-to-day links with the local population and with the local authorities, such organizations may in certain areas act with a greater degree of effectiveness and efficiency than the official bodies.
The "green" non-governmental organizations (NGOs) are generally not particularly interested in agri-environmental issues. Two topics very rarely appear on their agendas: organic farming and bird life preservation on cultivated agricultural land. In Hungary, only one NGO, the Biocultural Association³, has any serious involvement in agri-environmental concerns. This organization has succeeded in developing organic farming in the country in the course of the past decade.
The Biocultural Association has over 1 500 members, operating in the form of 45 local groups in Hungary and six based in other countries. In Hungary the association is engaged in the further development and the operation of the international monitoring and quality control system. The objective of this activity is to ensure that trade in bioproducts is above board and transparent. Work in quality control in Hungary is undertaken by the independent unit of the association operating under the title Bioculture Control Hungary. Between 1991 and 1998, the total area of land subject to monitoring rose from 2 840 hectares to 21 565 hectares, while the number of enterprises monitored increased almost sixfold.
Crops are now grown on 81 percent of all land included in ecological management programmes. The remaining land is devoted in approximately equal proportions to perennial culture and grassland (meadow and pasture) use. In its journal "Biokultúra" and in other publications, the information centre of the association provides up-to-date information on new findings in organic farming, on the situation in the movement, and on issues related to legislation and financing and to the protection of health. The independent advisors of the association operate a consultancy unit, and also each year organize a number of study trips to destinations in both Hungary and abroad for those interested.

The process of social development was interrupted for several decades, having weathered the stagnation of the 1980s and the transformation and structural crisis of the early 1990s. The economy is now seen to be convalescing. A number of amateur organizations based on non-profit making principles, financed to a greater or lesser degree by community funds, but not operating under state guidance or control, have emerged (Kuti-Marschall, 1991). At the same time in the 1990s, a genuine renaissance of the foundations, associations and other institutions serving public welfare has blossomed. In addition to developments in public health, culture and social services, variegated and fruitful activity can now also be seen in the protection of nature and the environment.
Since the early 1990s the Ecology Information Centre has produced a publication entitled Green Network, which contains listings and brief outlines of organizations and institutions engaged in the propagation and development of the culture of ecology.
At present, registers in Hungary include approximately 300 environmentally or ecologically oriented non-governmental organizations engaged in some kind of registrable activity. About half of these are actively involved in endeavours directed towards firmly set objectives. There remain 10 to 15 organizations of significance in public life, which, via their membership and the media, now exert a perceptible environment-influencing effect (Kiss, 1997). It may be considered a positive development that, since 1998, it has been possible for Hungarian citizens to pledge 1 percent of their personal income tax to, among others, these organizations.
 
 

The state of the environment has, as in other areas of the national economy, including agriculture, been determined to a decisive extent, by the processes which took place in the three decades from 1960 to 1990. It is well known fact that during the quantity-oriented approach which dominated as late as the 1980s at agricultural cooperatives and on state farms, quality-related and ecological issues appeared, at best, as mere propaganda slogans. As a consequence, the democratic civil system inherited an agricultural sector in which the concepts of sustainable development could not be enforced.
The processes and phenomena which have emerged in the course of the 1990s diverge radically from those observed in previous decades. As a result of social and economic changes, agricultural production declined substantially from the early 1990s, subsequent to which modest growth has been seen from 1994 onwards; however, inputs (chemicals used in agriculture, energy, animal stock numbers, etc.) have decreased to an extent greatly exceeding outputs. It follows from this that the material and energy requirements for production have been moderated considerably, which has led to changes unambiguously favourable with respect to the burden on the environment. At the same time, it has also become evident that the agro-ecological potential of the country has not yet been exploited to the optimal degree.
It is an undoubtedly positive development that the middle of this decade saw the introduction of a number of important acts and other legal rules related to environmental protection, all formulated to conform to European Union standards. However, many tasks remain to be accomplished with respect to the institutional system creating the conditions for the enforcement of these laws and to the system of economic incentives.

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Kerszöv Computer. 1998. Directive 2/1998 (bearing the force of an act) on plant protection, in a unified structure with the ministerial decree on agriculture (5/1988, 26. IV) issued for its implementation.
Hungarian Official Journal. 1994. Act LV 1994 on cultivated land, No. 69, pp. 2533-2596.
Hungarian Official Journal. 1995a. Act LIII 1995 on general regulations for the protection of the environment. No. 52, pp. 2780-2799.
Hungarian Official Journal. 1995. Act LVI 1995 on the product fee for environmental protection, and on this fee with respect to certain products. No. 53, pp. 2828-2833.
Hungarian Official Journal. 1995c. Act LVII 1995 on water management. No. 53, pp. 2833-2846.
Hungarian Official Journal. 1996. Act LIII 1996 on the protection of nature. No. 53, pp. 3305-3325.
Hungarian Official Journal. 1997a. National Assembly Resolution 83/1997 (26. IX.) on the National Environmental Protection Programme, No. 82, pp. 5816-5846.
Hungarian Official Journal. 1997b. Governmental Decree 123/1997 (18. VII.) on the protection of currently used water bases, potential water bases and water infrastructure serving the supply of potable water, No. 65, pp. 4738-4755.
 
 

Hungarian Central Statistics Office. 1998a. Hungarian Statistical Pocket Book-1997, Budapest.
Hungarian Central Statistics Office. 1998b. Hungarian Statistical Book-1997, Budapest.
Hungarian Central Statistics Office. 1998c. Data on Environmental Statistics-1996, Budapest.

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