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New Economic Mechanism
Hungarian history
Also known as: NEM
Learn about this topic in these articles:
economy of Hungary
- In Hungary: Overview
…growth, the government introduced the New Economic Mechanism (NEM) in 1968. The NEM implemented market-style reforms to rationalize the behaviour of Hungary’s state-owned enterprises, and it also allowed for the emergence of privately owned businesses. By the end of the 1980s, one-third of the gross domestic product (GDP)—nearly three-fifths of…
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role of Kádár
- In Hungary: The Kádár regime
…trade and industry, and the New Economic Mechanism (NEM), initiated in 1968, introduced the profit motive into state-directed enterprises. Agricultural cooperatives were allowed to produce industrial goods for their own use or to sell on demand, while the private plots of their members supplied a large proportion of fruits and…
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