The origins of neoliberalism in late socialist Hungary.

What is it about?

This article analyses the origins of neoliberalism in late socialist Hungary. Through a case study of the influential Financial Research Institute, it shows that 'proto-neoliberal' ideas and practices emerged organically in Hungarian society in the 1980s, as a response by domestic elites to the deepening crisis of the Kádár regime. Hence, the essential aim of the regime change was to reconfigure the Hungarian economy along neoliberal lines, while making sure that the political transition proceeded as smoothly as possible.

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Why is it important?

The transition to a free market economy, along neoliberal lines, is widely conceived as an exogenous process, commencing after the demise of the Soviet bloc in 1989-91. Yet, as this article shows, neoliberal ideas and practices existed in embryonic form in the region from the late 1970s onwards, and became increasingly popular among economic and political elites following the deepening crisis of Soviet bloc economies. The findings of the article contributes to our understanding of the genesis and consolidation of neoliberal ideas and practices in Eastern Europe.