The Interdependence of Socialist Hungary’s External and Internal Balances : The Bridge Model and the Consolidation of the Kádár Era

Gerőcs, Tamás and Pinkasz, András (2023) The Interdependence of Socialist Hungary’s External and Internal Balances : The Bridge Model and the Consolidation of the Kádár Era. In: State Socialism in Eastern Europe : History, Theory, Anti-capitalist Alternatives. Marx, Engels, and Marxisms . Palgrave Macmillan, Cham, pp. 31-55. ISBN 9783031225031; 9783031225048

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Abstract

This chapter is an analysis of the interdependencies between Hungary’s internal dynamics and its external integration into the world economy in the state-socialist era. Though countless scholars have studied state-socialist regimes’ successful attempts to modernize their economies (and the reasons for their failures to do so), their debates—such as the so-called state-capitalism debate—typically take into account only these countries’ forms of integration into the external environment, such as the Council for Mutual Economic Assistance (Comecon), or are limited to the functions of these countries’ domestic institutions—as is the case, for example, in discussions of the internal contradictions of centrally planned economic systems. Our study, on the other hand, involves the use of the dependent-development paradigm, which emphasizes the interdependence of the global economic environment and the social conditions in the particular countries that comprise it. The objects of study for scholars of dependency theory are thus the connections between internal and external processes—that is, the relationships between the structures that serve as the environment of international integration and the domestic agencies capable of transforming these structures.

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