Post-Communist Transformations in Hungary: “Bokros Plan” Strategy (1990 – 1998)

Abstract

The article is dedicated to the history of economic and political transformations in Hungary after the end of the Soviet era during the period of 1990-1998. Special attention is given to the strategy of the “Bokros Plan” and governmental initiatives led by the administrations of József Antall, who based the political system of Hungary on national traditions, historical constitution, primarily constitutional law, and the leader of the Hungarian Socialist Party, Gyula Horn, aiming for progressive reforms that allowed Hungary to successfully integrate into the European community. The article specifically analyzes the variability of political views within Hungarian society, exemplified by the radical shift in preferences from the Democrats under Antall to the Socialists under G. Horn, which was an uncommon phenomenon in post-communist countries. The research places particular emphasis on the analysis of the “Bokros Plan” (named after the Minister of Finance, Lajos Bokros), which, on one hand, saved the Hungarian economy from bankruptcy, but on the other hand, triggered distrust and protests from the public due to cuts in social benefits and free state services. The study examines the effectiveness of these reforms in shaping economic independence and overall development in the country, taking into account the social challenges and inequalities that arose during their implementation. Special attention is given to the analysis of mandatory private pension funds, introduced in post-communist Central-Eastern Europe, which holds significant importance considering the severe demographic decline and aging population in these countries, coupled with a lack of social solidarity inherited from communism. Furthermore, the article focuses on the formation of Hungary's foreign policy oriented towards European and Atlantic integration, aiming to restore Hungary to its historical position among developed Western European nations.