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By J. L Benson

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Who will get the jobs? Who will be the winners and the losers in the transformation to a market economy? The social changes, however, are also related to the question of how people experience and react to the change process, and through their agency contribute to the formation of new classes or social groups. What new identities, norms and values are under formation? How will the social agents form themselves into classes or groups and organize themselves? The change in social agents and the formation of new interest groups will in turn impact on the institutional framework and colour the type of market economy emerging.

This development has been much debated, but as Laky argues, these people, of course, also have an interest in securing a good living for themselves and, besides, they actually have some knowledge of running a company because they performed this task under the old regime. The third type of privatization is sale of state-owned companies to foreigners. In many cases these companies will be run by Hungarians, which creates an opportunity for young well-educated people. The fourth type is reprivatization of nationalized property or forcibly collectivized land.

14 Transition of Economic Systems capita, and to the top 24 per cent on the human development index. , 1992) but the centrally planned economies were increasingly lagging behind, and the pressure towards imitation of the rich Western countries became correspondingly stronger. IMITATION This type of process was very accurately described by Marx and Engels in The Communist Manifesto, where consumer materialism was emphasized as a driving force of history: The bourgeoisie, by the rapid improvement of all instruments of production, by the immensely facilitated means of communication, draws all, even the most barbarian, nations into civilization.

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