Hungary: Transformation and re-integration into Europe, 1989-199

The purpose of this thesis is to examine the attempts by Hungary to transform itself from a centrally-planned, socialist dictatorship to a market-oriented, democratic state after the fall of the Iron Curtain in 1989. This process of transformation requires fundamental changes in Hungary's political, economic, foreign and social policies. These changes were initiated by the first post-Communist government elected in 1990 led by Jozsef Antall, and are continuing today under the direction of the socialist government elected in 1994, led by Gyula Horn.;A vital part of Hungary's transformation process is the assistance it receives from the West in the form of technology, expertise and monetary aid. Without this assistance, Hungary could never realise its goal of rejoining Europe and integrating itself into the European Union (EU). Although an Association Agreement has been signed between Hungary and the EU, full membership in the latter organisation will not be realised in this century, as Hungary must first coordinate all its policies and institutions with those of the EU, as well as modernise its infrastructure and bring its economy out of its current recession. Foreign direct investment is playing a large role in the modernisation of infrastructure and in technology-transfer, as multi-national companies are investing in Hungary's future in preparation for its foreseeable integration into the European Union.