THE ROLE OF PRIVATIZATION PROCESS IN TRANSITIONAL PERIOD THE MARKET ECONOMY IN HUNGARY

Abstract

This study summarizes the experiences of Hungarian privatization up till now. It is pointed out that a lot of important questions haven't been answered because of the lack of overall privatization strategy of the government. The new private enterprises are burdened by high taxes and other payments into the budget and they make a certain part of them work in spheres of grey and black economies. So the progress of privatization was restrained by the lack of enterprise-friendly economic environment. The expectations for foreign capital taking part in privatization to bring modern technology and new markets hardly ever come true. On the other hand, monopolistic structures were transmitted to the foreign capital which offend interests of Hungarian producers and consumers. Privatization techniques supporting Hungarian investors haven't had the necessary results.