The impact of transition on agriculture and rural areas in Hungary

Abstract

In this paper authors are dealing with the link between processes of transition, liberalization, decentralization and influence of these processes in agriculture and rural areas in Hungary. After the collapse of Warsaw Pact, Hungary entered the process of transition. Some important steps that were made in accordance with this process were territorial decentralisation and market liberalization. In parallel with the process of transition also was the process of privatization. It changed the structure of agricultural farms in the sense that they become too weak to survive in the market. Market liberalization has been the especially negative for agriculture and rural areas. However, in the meantime Hungary joined the European Union. It can be expected in the future that Hungary will stabilize the development of agriculture and rural areas if implements measures in accordance with guidelines that are precondition for using European funds intended for this purpose.