ABSTRACT
The Hungarian economy would collapse from one day to the other if international money markets withdrew their confidence and the country could not manage its international financial liabilities. The system of indirect management, together with the mistaken notion that Hungary could accelerate its growth through Comecon trade, rendered the country unable to cope with a world economic restructuring that was itself misdiagnosed as temporary. The leadership must take most of the blame for the fact that in facing those crises, Hungary slid back. One could stress historical factors—for example, that because of historical circumstances and socialist ideals, the politics and economics in Eastern Europe diverged from the Western European and North American model. Somewhat superficially, one could say that Hungary and perhaps other socialist countries are trying to create capitalist commodity production without domination of capitalists.
