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Economy Of Hungary During the two decades following World War II, Hungary was transformed from a predominantly agricultural land into an industrial-agricultural state. This transformation was carried out under a system of central planning patterned on that of the Soviet Union. Consumer desires were ignored, tight labor discipline was enforced, and living standards were depressed, so that the largest possible share of Hungary’s resources could be used to develop an industrial base. Investment in industry was encouraged by a tax and subsidy structure that overpriced consumer goods and underpriced the components of heavy industrial goods. The highly centralize panning process often led to inefficiencies, while strict discipline and low living standards led to poor labor performance and popular discontent. After 1960 the rigid planning policies of the regime were somewhat liberalized. To increase efficiency, modern techniques were adopted to establish production targets, to determine prices, and to allocate resources; and the regime began changes brought about a rise in the standard of living but slowed the country’s economic growth rate. Nevertheless, by the middle of the 1960’s Hungary was one of the most industrialized state