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Among the East European countries, Hungary has most successfully transitioned to a market economy and is perhaps best prepared for accession to the European Union. But some of this success is the result of heavy intervention in grain and livestock markets, which has led to trade disputes with the United States and WTO. ERS economists analyze agricultural supply, consumption, trade, and policies of Hungary.
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Two new publications provide a comprehensive analysis of the economic forces behind the profound changes in agricultural production, consumption, and trade in the transition economies of Eastern Europe and the former Soviet Union. The first report—Changes in Agricultural Markets in Transition Economies—concludes that declines in output have been an inevitable part of market reform and that the main goal of agricultural policy in the transition economies should not be to return output to pre-reform levels but to increase the productivity of input use.
The second report—Livestock Sectors in the Economies of Eastern Europe and the Former Soviet Union: Transition from Plan to Market and the Road Ahead—focuses on the livestock sectors of Hungary, Poland, Romania, Russia, and Ukraine. Hungary, along with Poland, has emerged as one of the more successful reformers in the region. The report identifies factors contributing to Hungary's relative success in this sphere but also points out institutional bottlenecks that continue to prevent Hungary's livestock sector from reaching its potential.
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updated: May 10, 2002
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