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This paper describes the economic and political situations in Hungary as they appeared to the author during a two-week visit in October 1989. Following the collapse of the communist party structure, Hungary has headed toward a democratic, multiparty system. Hungary's economy is weak, and the problems of past mismanagement will not be easily solved: foreign investment regarded as a necessary evil; abounding corruption; and division of state-owned properties are among many troubling issues. The author suggests that the Hungarian experience with democratic rule is limited and therefore in need of aid and guidance from the West, particularly from the United States.

This report is part of the RAND Corporation paper series. The paper was a product of the RAND Corporation from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

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