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JPRS U'1~617
. 28 JuNE 19~2
- U SS~ ~e ort
p
CONSUMER GOODS AND DOMESTIC TRADE
(FOUO 2/82)
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~ .
~PRS. L/10617
- 28 ~une 1982
USSR REPORT
CONSUMER GOODS AND DOMESTIC TRADE
~RTICLES OId HUN~ARIAN E~ONOMIC MODEL
(~oUO 2/s 2 )
CONTENTS
- CONSUI~TION TREND6 ANA POLICIES .
- H~garian Farming Practices Discussed
(Sergey Golyakov; 1~TEW TIMES, Apr 82) . . . . . . . . . . . . . . . . . . . 1
Hungarian Economic Model Diacus~ed in Soviet Press
(LITERATUIt~iAYA C~ZETA, ?U Sep 81, 17 Mar 82,
_ 5
P RAVDA, 22 Feb 82 )
.Agricultural Expe riments, by Kapitolins
Kozhevnikova
I~inancial, Bsnking Incentives, by V. Gerasimov
~ Tmprovements in Re tail ~rade, by L. Velikanova
Economic Planning o~~ CEMA Countries in. Agroindustrial
Operations
(Iv~n Nikolayevich Buzdalov, Mikhail Yefimovich,
VOPROSY EKONOMLKI, Mar $2) 25
.
- a- IIII - USSR - 38b FOUO]
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CONSUMPTION TRENDS ~ND POLICIES
I~L'NGARIAN FARMING PRACTICES DISCUSSED
Moscow NEW TIMES in English No 14, Apr 82 pp 20-23
- [Article by Sergey Golyakov: "Creative Energy"]
- [Text ] There are, perhaps, no greater R1~e sneda? st~P1~~'+ �d i�od pt'~
coru~oiaseurs o! iood than the u~cb are Lhe co-opera'thres~ w~ich
HunBarians. Their cui~ine neaL no account for almoat 75 per cent oi
recommendation. The recipes oi the agricuitural output and ensure the
iamous 8oulash or oi ilah aoup a la highest rates oi the growth. Dr~w-
Szeged can be found in the cook inS aad realization oi a8ricultur:~
- books oi many countries� Nor have produce.
the HunBarians changed their tastes The law on co-eP~r$tives adopted
even in theae diet-con'cioue timea. by t~e National Aaaanbly (parlia-
Nearly 2~e1t o1 every 100 iorlata a ~~t~ pa~n~y ~ their twofold pur-
taandlY sP~~ B~ Sor ~ood, end tha ~nomic and social. The eco-
mudi~i~ an~
n~~
~d nomic airn is te exP8nd production
. g,nd ltnprove the living standards oi
o! food Produ~:`.~. the co-operated iarmera. The aocial
Those enBaBed in the production aim is to mould the soclalistt~ ~i
and aale oi food.atuifa are guided life ~and thinkin6. Enio
eaooa+d~n81Y� 131 ataibe Ldrms ogadtlaa~ a~ su~porr
and about 1,~00 agricultural co- each co-operative runs it~ economic
aperatives are cxpandin6 their atisirs independently,' on the basis
= putput lrota year to ~ear� Tn tt1~ At demaraticaUy adopted decieions.
- pa~t five years the average annual The so-opecatlve members enioy the
rate oi growth haa been 3�b Per xruib oi their labour and ehare the
cerrt. HunBaz'Y ~'a~~ 4he ecaro~~c s~lsks iasvalved.
world's three leadin6 countries in addreas to the fourth con-
p~r capita output o! corsi and pork� g~ oi ~ricultural co-operatives '
- Taking the averaBe level ot the past r~tly held in Biuiapesx, Pal
~ fevv yr~ars, Bra[a P~~i'On eR~~ Loaonrti, President of the Preeiden-
1~300 ki1oBracnmea P~T ~ tial Councii of Hunaai'Y ,and
~e ,a~oh,i,ev~ts of the Hu~ai'~sn Political Bureau Member oi. _the
farmers allow them not only to meet tiunRarian Socialist Workers' PartY,
home demand but aLso to exPo~ a ~aid that in the past itve yeara the
pert of *.h~!* Pr~uce. About 30 Years ~operatives dad eifecUvelq con-
ago the situation in Hun~arian ~ribut,~d to agricultural develop-
agriculture seaned hopde~� Th� ment and the supply oi food i~
d~ag~ caused by the wer waa population. Todaq, he etreaaed, twice
nearly double the suns of the na- ~ much b produced per hec~re oi
tional income frota a6ricuitural lanG in H~nBal'Y than 20 Years aBo.
praduction in 1938. I,abour productivity in a8riculture
gow was thfa important economlc has risen nearly iour ti:sies durinQ
problem solved? , this peried� 'The activity of the co-
eperatives is deservedly respected bY
1
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~oclaty ai ~ whola It hu alio.dnwa oamershi~f, part at ~e ianm ~?ork
~~'O~' ~ wu carrled out iointly. Martual afd
oi developing countrlea in par'tscular. ~~y,~
ReFrv~rEatfve~ at Irsq~ He?#n. ~ubtre oo-oQeratives. �
3udan and other couatrias btve ~ ditiiculk The
Wdted Hunaary in the past trw doc~anc~ta oi thoee 7ean are praerv-
yean
to jn`udy the ~xperleace o~ ita ed in �the .mahiva. P~euse of the
co-operatfv~. ' psyer shorb~~~ the minuta of the
initW a~ee~in~a ot oo-operetivd were
TT~e Be.glnning ~ 3otkd down in pencfl on the bacb oi
~ Belr~ a~onfirmed c!'4Y-dwellcr~ ar an o:+d~lr~arY ~DP~B
I ieared I should bc ~naw'h~t ont ot D~P~. ~Here are the minutea drawn
_ rop in Tisztetslar Village in 3ep~tan-
my de~pth wheu it came to dercrlblt~ bar 1048: 'The oo-operative has 11
the arorkitus of' an a~ricultural oe- membe:s. It was or~nized bq six
aperative-,eawlA~, h~rw^`...~tas, lartil- paiants. !'ive iolned later. 'Phe co-
lzen, Hnneatock aasd amec~ani~tbn. operative manbers diecuss aU 4uee-
Btit ~bedt wrktert ~t 't3~e ~our~i I?~' ,~Olts WBether. Al) the work ie done
Byyu+oraze~ stra~lAY ~Y~ iointly. The hervest ie divided equal-
v1s9t s co-o~ec+ative, arurJ~ me thst ly. One,titth of the h~rvest ~i~ put by.
I~wa~ld nat t+e~ret dR. I ceradKr do General meetings are held on
syat tx~ret dk !f only beoMS~e E m~de 3vnday~. The member~ see to !t thst
bhe ao4uain~roe a~ P~er~ac Fa6f~n. e~veryane worka an eQual arrwurrt od -
deputy chairmtn of the 8silasmenti time. A pool of cowa and imQlernenb
co-operaUve aot tar irata Btadtpest. .tsas been foaned. ZUye eo-oy~ea'aitive
This qui~t maa wlth k1ad. clever hae 79 hectares oi land. d0 hectarea
~ eYea~ a peasant to the a~rnow. qWck- of thrm being P1auBhland.��
13' reasoved all sn7 doubt~. Ii~s stoa~7~ "We had aomett.f~ng like tt~is too; ~
~ like the ~thread oi Artadne, help~d me Ferenc Fabian told me. "When the
out o: the lebyrinth oi preooneeived gp~ ~nnivereary of our co-opcrative
notions lnto the'world oi unacpected o~nred in 1~78, people rec~lled
dix.wveriee, to aoqnire a lot of in- tho~e diifkult d~ye. The country
- tere~tiin~ snd ii�truative iniorm~tlon here b h111y, and the eoil fs not very
about the oo-operative moveiaet~t in tertlle. It is prac~lcal~y lmpo~aible to .
the Hunltarian oountrYaid~. pth~ a good harvesk ON7 ~e'ten
It b firmiy believed that this awve- ye~n ago manq vlllsgera lett thefr
mewt beBen in ~ A~ril 1445, when ~pe and ~went elsew~tiere 7a seeerch
~ Flut~ary was liberated ira~n the of a rteady income." '
tasciat yoke . by the 8oviet atmY. Today the oo-oQerati~e on the
Agrarian reform was one oi the firrt benk oi the Szilae Aiver~ from which
atept taken by the ' ntw~ people's it derives ite name, ia one of the most
gav~ernnert. Tlse ~eaesnt's aige-o1d p~o~ in the oountrY. ~ Year
dream oi havin~ his own plot oi Iand p~~ was eatimated at 900 mil-
oame true. Same 660,000 landless lfon forinta, and net profit wae ataout
peasants snd faran labaurers recetved gp atlllion forinte.
~u~s iplot~ for a ~Y~~~ ~3~?t� -
~ L~ach tamlly wa~ allotted an averaQe
ot thne heetare'. The transttion irasa Gold Mine .
indivSdual farming ~o iocislist co-
_ apera~tion ~t?w began on ffie ba~U oi ~ True, the main produce oi the
emaY~cale �femily ta~ on gzilascnenti. co-oDeratora ie rather
pri~?+~tetiY~ud Is~d� ~ u?uud. In the early 1o7os, after much
In the Ye~ri o! postwu disloatlon ~eerchin~, acperlmeMi and consulta-
the pe~aants did aot have enou~h t{oru with acieMtrts end agronomiete,
drau~ht cabtle, rc?~chlne~ lu,el or ~eed. they dl~covered that medictnel herba
~ ~ ~ and esfential oil,beari~ planb grow
weII on the Iocal aoil which is little
be~en to orQanfu mutual aid ~roup~� ~uited for ~tradiUonal cropa. This
With l~l r~ei~lua in Prlvak determined the epeclaUsation of the
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- - - - - - - - -
s.rm. w~n~ost hak ot ~ts 4,000 ~,ckln~. ot crn,rs~, to bu~w .na
beetarp oi aruble land b ecwa to pyip thqe modern ~hops cat a
_ camocnile, anint, oavory, saBe !nd ~ppd deal ot money. The co-
other aroma'tic grar~es. ,~~~Ve not tuve aitorded
It should not be thou~ht, h~+"
ever~ that thia "Bo1d m1ne~~ proved them had the Bovernment not pro-
- easy to exploit. It took more than vided the neceasary credits and
the initiative ot the co-operative equipment on tavourable lerau.
leadc~ra for the farta to be~in ~~r own procasinQ is one
apecfalizin8 in herb-Bt'o'w'ing� Many
ati imponts~K oh~a~e in bhe eoom- a2 ithe enadn Lertures d Hua64rSsn
mic and aocial life of the country agrlruitural oo-operattva. Most
was needed before thle could hep- tarms have bullt shops to proceae
- pen. It was necessarY to T@nounce ,poultry, milk, vegetsblea and iruit.
~o~me oi bhe methada ad ~lement-
These ihops account !or up to 90
ing aBrarian policy whlch had D='a~'"
pd erroneous. It waa necasei'Y ~ �p~r cent oi the totel incane oi a co-
- tind money which the state, with operative and help to raeet con-
!t~ former emphads on lnduatrlal Aumer demand. Besidea which i~hey -
growth, did not have. It was ncces- y~~ th~ ~~~rative membera oc-
sary to Qive up the 9yetem when the u!ed all the year round.
i~mns .were xold 1~ran above what F P
and how to plant, oiten without the Many farme aLo engaBe iti wood-
~ctual conditione bein8 taken into working, tulfil orden irom enter- .
account. Lastly, it required, aome p~~ for repair and maintenance
previous experience of co-ope*ation, ~york, ~nd have their own build~inB
a tra~ly revoluttonary ~hfit ln the Zeama. The Szilaamenti co-operative
mindt of pea~ants, Party decielon~
lhat - would in~pire them and aiso !~a db sidelinea: ib a~ember~
~ encourage their lnttiatlve and in- ,ur~nble ~mall a~plitiera for
creaee the intereat ot peaasnb in putaide TV aeri4ls and, make furni-
the results oi their labour. The ~er- ~ t~ ~ 8
severin8 eitorta oi the Hungarian
~i~.~ p~y small plot at a nearby quarry. where .
thh~ line~ ~oon bore truit. StrJk- tnarble a86regate b produced for
~ng proot of thi~ b the pro~reu ron~truction purpotes. It aleo
- achieved �by 3zUeimenti. butlda premises and houua for its
. Ferenc Fabian did .not tske me ~d ior people in
over the iielda. There was nothing
~nterestinB ~ere, he safd. Whet tt~e ~d6hbourina villages. ~
rco-operative boaata oi is its it~- "It L not so much the additlonal
dustrial buildinga where the ,~k aretre a~Ler, extra .
aromatic herlu ere processed a~nd ~a~ey is naver supertluous;' Ferenc
prepared for the market. Hut I dW ~,~~i~ NWe ~lmply doa't
not at once see the famlliar packets
of dried Brasaeu. The first buildinB want manpower raonrces to be
we visited-a realm oi tiled walb wasted. Ii people t~eve the time and
and apo~leas cieat~'la~ess-~~nuxs ~ there u a b18 city nearby, why not
modern chemical laboratory with ,organfu teams for house-cleanin~t.
_ complex equipment which turua extrn mo~ey maY he1p
xnany tona oi the B~~ mer+ into
a!rw ditres ad e~sen~ a~d oils. As ~ecribi~ve to oover tbe ex~pe~ea fn-
we moved from one iectio� b . y~tir,~ ~~e btg~?er ca~t o~ ~ro:iuc-
another more operationa were T~
added which immeaeurablg in- ~ exam,pla Tbe eleatrl~-
creased the value of the original ty ohar~a ~trd ltkl pnioa t~mve
Faw materiel. At the end o! the" rLe~'? no~c~a~b1Y in .'0~ p~ ~
- ,production line I sew various kinds ~ th�~ y�O
of preparatione in attractlve modern r~~ ~Q at ex-
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- orbibenR ~r~cer�� a IarQe park - - -
Then there are the individual and "Close ce-operation with unall
~ubsidisry plots oi the co-oP~'ative ~roducers; ' Ferenc Fabien told me,
tarmen. Individual plota oi noL "enables us to uae what ia virtuallY
~ more than 0.8 hectare are allotted ~+?esleland. old Sarm buildinBa in
manben for conuientious work and v~?hlah on Llse ecale oi the entire
for tu1ii11in8 their time quotas countt~ over e miUion head oi cat-
,(Z,500 houre a yesr tor a man and tle can be kept, and, laYt1Y, ianc?ilY
1,500 houn for a women). 'l~our. icLCludin8 old people, ~epen-
' Subsidiarla include plote ot land ~ ~O ~d
~nd farm buildinge belongina to want to work."
non-~ruR~bers of e co-qPe~ve. � But ~he Woximity of a ao-oPe~'8-
Theae may include Plots atteched to tive whi~ch can lselp darmers run
tbeir homes or ~ummer-houaes, Lhdr wbsldi~rY Plab a+essiaiae the
iruit- or veBetable-(trowin~ ~srocla- dedsive factor. The Szileannenti
tfoni, etc. . poard includes a group of people
Both typa oi allotm~ta ocxnpY a whose job it ie to give a8ronomical,
total area of 7?6,000 t?ectarea. Over veterinary and other assbtance to
80 per cent oi them ~re unfit !or ~mall householcL. Neverthelaa, the
~ lar~ge-scale farmin8� .Neverlhelas, farmen recxive their main income ~
up i~om the co-operatlve, not trom their ,
~Urnal praduce in Hun~arY 1s B~? Pi~. ~b�ur P~u~~ty fn large-
pn these pla~ts. They produce ~ per .~cale P~u~ion U naturally hiBher
Fent oi the milk, 80 per cent oi the then on small holdin6~.
~ 70 ~t ~~e It took a whole day to take fn the
_ ~ruit ond berria. Ot courie~ ~maII Szile~nes~tl oo-aipendtkve. Ferea~c .
howeholds do not p1aY ~Y' P~ ~ Fabian showed me the local house
the production oi 8='ain. co~ne ed cui~hure. We ise~d s sna~ek 1n 1l~e
iebder~ su~ar beet or ather marbeta- ce-eDet'ative centeen and vfeited the
ple products ior which large invest- sectlon where the ~om~o.ttion oi
~ n~~ ~~~~y~ variou~ natural eaeences are studied.
' ~arms Bl'ow onione~ pePPere~ cucum- Z'~s ~Pacioua ehop ia the. only one
bers and othar vegetables and raise ot its ldnd in HunBary and i~ needed
pige~ c~we, poultry, rabbits and by the entire country. .It producea
~?11 sorts oi eaeences. At preeent !t
beee-work, which as a rule, ca1L
~or much time and manual l~t~our. , is preparin8 additioni to the ration
HunBarian experience ~hows that pi broilers. A few dropa to the ra-
' the ~ucceu or thta work depende t~~~ and th~ meat oi broiler~ rafsed
above all on the multiform as- =~eT ~quit+ee qt~ a
dstance oi the co-oper~ttvet whtch ~
'~upply 'the household larma with
aeed, pedigree cattle aad fodder and 3zllasmeeti U a large and complex
do work requlMng the use of tarrn. The main iource of inergy
~ machinery. Cwoperatives abo con- d~t b cree~tive e~tbibude
dude ior~-ler[a a~o~rtm~cb w1l~h f~e af ~am?ers to tt~eir work, the hiBh
Mmn tor tiue s41e at ~'sxda' Qrodwoe. ~ense oi raPonsibility and the ini-
w~hf~ch thus beooa~+~ a+ ti~tive oi the farmer~ befare whom
- ~~s~rt of the Rabool produ~oe of ~ple's 8overnment has opened
a co_operstive, and, moreover, quite truly broad horisons. �
~
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Cc)P1SUI~TIQN TRENDS AND PO~.ICIES
'"^~^ARIAN ECONOMIC P'iODEL DISCUSSED IN SOVIET PRESS
ii,%_ ,v
Agricultural Experiments
~~+r,.;cow LITERATURNAYA GAZETA in Russian No 40, 30 Sep 81 p 13
!'.~~ticle by Kapitolina Kozhevnikova, Special Correspondent of LITERATURNAYA GAZETA:
_ .~-~w Are Things in Hungary?"]
_ ;~~.:xt] I first visited Hungaxy 2 years ago. I described my impressions of this
~:?:ip in the essay "Believing in the Earth" (LITERATURNAYA GAZETA, No 8, 1980). The
r~~~~id growth of Hungarian agriculture and the search for various ways to improve it
- h~?ve caused a lively interest among our people. The editors received many comments
avout this article. The readers were pleased with the successes of our friends and
- thr~y inquired and wondered what of the Hungarian experience could suit us. When on
- rrips and meeting with acquaintances atad colleagues, I always heard the question:
"How Are Things in Hungary?"
This universal and, I would say, even avid interest in the present flungarian country-
- side cause3 me to go back to it.
In fact,~.how are things in Hungary?
- There was my first impression possibly tainted by excessive emotion. There was the
strong effect of the delights of this oeautiful land. Had these not to some degree
' concealed the harsh essence of things? Certainly it was a question of purely prosaic
matters, earthly in the full sense of the word.
T' :s, again Hungary in the stmuner of 1981.
_ 5omething.About Peasant Stingineas
:~1;.s stinginess is widely known. "Peasant greed won out...," "Why do you grudge
~vzry penny like an old village woman?..." Is it not true that we often he~r these
or similar expressions? We no longer give them too much thought, we accept them as
r:hey are offending the completely blameless village people. Yes, of course, there
~....,.tainly existed a peasant small-owner psychology and an affection for one's piece
1and. How else could it be if the grain grower got everything by sweat and toil,
~ ;i�~~t recall the recent history of both Russia and Hungary.
~
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- A person constantly faced with the fear of hunger ann pestilence learned to save
every piece of land, each piece of bread.and every penny. He did not squander his
money as he had no capital. Once it was gone that was the end of it....
I would rather speak not of peasant stinginess, but rather thriftiness. Man through
' the ages has lived off the iand, its fruits and everything that it produced.and gavp
him. He always looked at the skies wondering what to expect: an evil desiccating
heat or gloomy bad weather?
For the peasants life together, on a kol~Choz, has been both easier, more advan-
tageous and more productive. But it has also evoked a new concern: how to instill
in the country man the concept of "your and everyone's together." He drives modern
machines which have arrived in the fields.and on the farms; he lives in a good home.
He even has his own motor vehicle (not every one, but some do). He earns a good
deal of money, he travels and visits resorts. But on the field you can see an
' abandoned combine. The untransported potato can rot in the clamps.
How can a feeling of thriftiness, even~ a little stinginess, be returned to all farm-
ers without exception so that they did not waste a kilogram or a hundred kilograms
of tomatoes or apples?
No matter how one cuts it there is one way out: it is essential to f ind in our
viable socialist system not only the moral but also the precise material incentives
which would force a person to work so that it would be impossible for him to throw
out even a hundred grams of produced product.
For a certain time the Hungarians, not fearing the accusation of miserliness, have
begun to follow the principle that the bestt thing is money in the bank. Before a
cooperative or state farm undertakes samething it first carefully analyzes whether
this will bring a profit or loss.
I know there are persona who would immediately raise counterarguments: such an at-
mosphere fosters a nerson with a petty owner psychology, that we do not live by
bread alone and so forth. But the ma.in thitig, in my opinion, is something else....
Very poignant for me are the words of L. Z. Brezhnev said by him at the 26th Part,
Congress: "The economy should be economic."
This is the issLe. It is the main thing.
...We drove south from Budapest into the county of Baranya, virtually acrosa the
entire country, past lush fields and vineyards, past old cities. We drove almost
to the very Yugoslav border. It was the settlement of Baksa.
Andras Pinter is the deputy chairman of the cooperative here. To become acquainted
with the cooperative, I ml.ght mention the figures of the harvest brought in last
year: 58 quintals of corn p~r hectare, 58 quintals of wheat, 47.7 quintals of
spring barley, and 25 quintals for sunflower.... These are solid figures. That
- year, Pinter said, was a regular one and in some ways unfavorable. Incidentally,
in 1980 the entire nation obtained from each hectare 47.4 quintals of wheat, 37.7
quintals of barley, 53.3 quintals of corn, 371.3 quintals of sugar b eets, 147 quin-
tals of potatoes and 52.3 quintals of grapes.... The Hungarians fatten beef, pigs
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ac~~i chickens not only for themselves but have also made meat a most profitable item
it~ their exports.
T~~~, ability to count every forint, to proceed primarily from economic advantage and
feel the real. soil under your feet--I was convinced o~ this again and again dtir-
jn~~ my trip--just how important this is to make agriculture highly profitable!
. in Baksa they took a look, said Andras Pinter, and reached the conclusion that
�~~.n a cooperative which had excellent machinery and good personnel available would
' ~1 to produce sufficient products from the fields and farms if they could not find
,..-t magic wand whieh is tediously called material self-interest. ~
"Just look," said Pinter enthusiastically, "how is a brigade's work usually organ-
iz~:d? The leader gives the instructions and the people carry them out. There is
r�,thing to think about and nothing to wonder about. But the peasant certainly is
creator on the land! Give him some independence. He loves to wonder what
~h.:uld be done and how. An indifferent worker is useless to the cooperative and
- ,1.�less to the state. Two years ago, with the aid of scientists from the economics
titute, the idea ~rose of creating small groups of workers for the sectors and
~ '.ndoning the large brigades where everything was.lost and diffuse where eternally
: ~ething or someone was lacking.
G;, started with poultry raising. We assigned 15 persons who would be both the
po~iltry tenders, the mechanic, the driuer and the night guard. Here you have all
- tl-,c necessary means of production and here you have 600,000 forints which corres-
_ p,;:-+ds to the total wages paid during the year to the collective. By the end of the
y=~sr, see to it that you produce a profit of 3 million forints. How you do this,
by what ways and means--that is your job. Take over! ~
- There were arguments and debates about whether or not this would destroy the al- ~
ready existing organism. Was every person who dreamed about independence capable of
using it?
"Well what happened," said I with interest, "at the end of the year did they produce
the planned 3 mill~.on rubles of profit?'~
. "More, much more!"
"And how was this money divided?"
"t,-~ke this. Of the total received above the plan, 30 percent went to the coopera-
��e. This was for the amortization of the equipment, credit and so forth. The 30
:cent was divided between thp brigade members. They themselves determined who got
how much. Well, things got underway. All poultry raising converted to the group
_~:�m and them the other sectors as well. The innovation was beneficial for us. Do
know I do not recall such a procedure for the equipment or such industry in my
croperative although I have already been working here 18 years. Take the same
poul.try raising. Certain farms have: motor vehicles. They are eternally in short
,~�~,ply and new ones are requested. Now two vehicles satisfy all needs. They some-
~;.r�es are even turned over to other groups, but for a fee. Everything has been re�-
i�~:~red and everything brought into order. Not even a single board is loose. The
r~- ~d is consinned thriftily."
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The group or brigade is given extensive rights. When necessary they themselves can
hire u::ban residents or anyone else as they receive the entire wage fund for the
year and spend it at their discretion.
At the end of last year, the cooperative paid its seven groups 920,000 ~orints above
their wages. Everyone received different amaunts: some 2,000 forints and some
12,000.
- "Obviously, there must be some ceiling in wages?"
"Yes, of course. This is determined by the Ministry of Finances. If it is exceeded,
a person will pay a progressive tax...."
Is this a variety of our non-schedule system? Actually it is a Hungarian vErsion of
it. It is a viable and interesting version which encompasses and solves a broad
range of problems including: independence, self-interest and economy. Here a per-
� son keeps control of things and becomes�their true master.
And as the master he keeps account of the money and everything else, he finds the
way out of a difficult situation and knows where to spend and where to save.
I.f it is awakened and directed into the required channel, this peasant thriftiness
is~ capable of a great deal. And ultim~tely it will end up with a well-stocked shelf
and table as has happ2ned in Hungarl.
"A Living Organism and Not a Monument...."
In my previous visit I had twice met with the then Hungarian deputy minister of
agriculture and food industry, Jeno Vancsa. At presezt, Comrade Vancsa is the min-
ister. We both wanted very much to continue our interesting talks. But life did
- not provide such an opportunity. My meeting was set with the deputy minister Janos
Jeleki.
The deputy minister was a short thin man in a sports 3acket. The ice of unfamiliar-
ity was quickly broken.
It is worthy o� note that Jeno Vancsa for many ~ears was the director of a sovkhoz
and for 18 years af ter completing an institute Janos Jeleki worked in his home vil-
lage somewhere beyond the Tisza River, initially as *~e chief agronomist and later
as the deputy chairman and then chairman of the ~~.operative.
"This is my second ~ob," said Jeleki smiling, "and generally speaking, you can take
me merely as an ordinary rural agronomiat. Particularly as I have worked less than
a year here in the ministry...."
"The path of our agriculture ia not at all simple," began Jeleki in reflecting, "the
countryside has lived through many difficulties. At one stage there was an efflux
of manpower into the cities, the planned quotas for the harvest were not m.~t and
much produced product simply rotted. For a time we purchsaed frozen meet in Argen-
- ~ tina.... But the land and all that could be produced on it was the main wealth of
our nation. Nature did not grant us anything else. Atad the.acute need forced us to
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ttiink and seek. In what areas were the searches? How could labor in the country-
side be made advantag~ous for everyone so that people would not wait for the orders
to begin planting, to sc;~ such and such, so that they would learn to ac~ independ-
_ ently. But this independence should u~t develop into anarchy but should bear fruit
~n.i strengthen both the coopeiativ~ . and our entixe nationa~ economy. Haw does a
pilot learn to fly? At one moment he is sittir~g next to the instructor and then all
a sudden he is alone in the skies. It is terrifying. But he flies. Zhe in-
;