DEFICIENCIES IN HUNGARY'S ECONOMY; 1955 ECONOMIC PLAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700200253-7
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 31, 2011
• Sequence Number: 253
• Publication Date: October 17, 1954
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/31: CIA-RDP80-00809A000700200253-7
Sanitized Copy Approved for Release 2011/08/31: CIA-RDP80-00809A000700200253-7
 Sanitized Copy Approved for Release 2011/08/31: CIA-RDP80-00809A000700200253-7
DEFICIENCIES IN HUNGARY'S ECONOMY 195 ECONOMIC PL 1N
The following is a summary of the report on the national economy sub-
mitted by the Political Committee to the Central Committee of the
Workers Party: Hungarian
riculture
Hungary has become one of the largest rice-producing countries of Europe.
Production of corn and green vegetables has increased and vegetable prices
have declined since 1953. C.nsiderable progress has been made in animal hus-
bandry. By this fall, the pig stock should increase to 5-7 million, the
largest number since the liberation.
Most producer cooperatives have strengthened their position since the
withdrawal of members last year. Agriculture has received many more machines
this year than last.
Industry
Production of consumer goods during the first 8 months of 1954 was 12.4
percent greater than during the corresponding period of 1953.
Standard of Livi
In the first quarter of 1954, workers' income was 15.8 percent greater
and prices for consumer goods were 8.3 percent less than in the first quarter
of 1953. However, complaints are numerous about the poor quality of consumer
goods.
Progress in the development of agriculture is slower than planned because
of shortages in equipment and labor. Industry is legginC behind the plan and
fails to supply adequate amounts of farm equipment and consumer goods.
Production of basic materials has slowed down. During the first 8 months
of 1954, the output of coal, rolled steel, and building materials was below that
in the corresponding period of 1953. The debt [lag behind plan?] of the coal
mines had increased to 350,000 tons by 20 September.
The basic prerequisite for a rise in the national economy is acceleration
of the industrial regrouping with a view to increasing the production of farm
machines, consumer goods, and exportable products.
The situation in regard to cost of production has become intolerable.
Budgetary appropriations are too high. In recent years, the national budgets
showed a greater relative increase than national income. Public administration
personnel has increased by 164 percent since 1949. Appropriations for sports,
scholarships, and training courses have increased excessively. Reduction of
production costs must be one of the main tasks in the immediate future.
Sanitized
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r
STAT
The 1955 Plan
The foregoing facts and considerations formed the basis for the national
economic plan which the Political Committee adopted last June. Under this
plan industrial and agricultural production must be increased considerablyin-
during 1955. The plan provides for a saving of 2-3 percent in
materials,
dustrial regrouping, acceleration of the production of consumer goods, a 30-
percent increase in appropriations for renovations, a 3-percent reduction in
production costs, the transfer of surplus administrative personnel to pro-
ductive work, etc.
Foremost Tasks
1. Establishment of unity in the party in regard to the new course
policy, and consistent interpretation of economic-political goals. Fight
against uncertainty among economic leaders and elimination of persons who
are incapable of accomplishing such goals.
2. Acceleration of industrial and agricultural production, especially
of bread grains. Improvement of the economic position of peasants and in-
crease in exportable agricultural products. Increase in fodder production
and better utilization of agricultural machines.
3. Completion of the 1954 industrial production plan. Increase in
production of agricultural equipment, consumer goods, and export products.
Increase in fertilizer production, especially nitrogen fertilizers. Im-
provement in the quality of agricultural machines. Increase in the mechani-
zation of coal mines.
4. Increase in productivity and reduction of production costs. Im-
provement in maintenance work. Introduction of economic incentives for
workers and technicians.
5. Reduction of budgetary appropriations, continuance of rationali-
zation, and re-employment of surplus personnel in the course of rationali-
zation.
6. Liquidation of bureaucracy and of irresponsible attitudes of mana-
gers. Punishment of violators of work and plan discipline.
STAT
Sanitized Copy Approved for Release 2011/08/31: CIA-RDP80-00809A000700200253-7