00:00:00 In Hungary, the transformation in
1989-90 meant that we had carried out
00:00:06 a constitutional revolution, and this
constitutional revolution meant that
we created a political institutional
00:00:13 system that ensures the framework,
ensures that it is further developed.
00:00:18 This is extremely important
because many things have not been
00:00:24 created in an institutional system
in such a short period of time.
00:00:29 In the same economic context,
the actors of a market
00:00:35 economy must be brought back,
the basic institutional systems that
operate against a market economy
00:00:42 - not a communist market with a planned
economy or an economic system and
00:00:48 this must not only be brought back
but also updated in the sense that it
00:00:54 operates today in the modern world.
So here, not only is it a political
00:01:01 institutional system, but we laid
down basic laws for economic,
social and institutional systems,
00:01:07 from politics to the economy,
from social issues to cultural issues,
to education, etc. So here is
00:01:14 a very specific legislative programme,
which is based on government
initiatives, which has taken place
00:01:21 in all areas in recent years. Well, right now,
the process in education is over,
so is it in social
00:01:27 law and so forth. In practice,
00:01:32 this means that parliamentary
democracy was born in Hungary,
00:01:39 within the framework of a free
social market economy, with all
00:01:46 the difficulties and bitterness
that a transformation entails.
00:01:53 Here, I must first of all
point out that we, like the
00:01:58 other former Communist countries,
have received an inheritance,
00:02:02 which was the previous system.
This legacy means that the country
00:02:08 can be classified as one with disadvantages,
burdens, debt, and it is burdened,
00:02:16 which makes it difficult
to create a new order,
00:02:21 a new economic life.
In addition to the inheritance,
00:02:27 the other is the transformation.
Everywhere in the world,
when a system is transformed,
00:02:32 when society as a whole is formed,
there has not only
00:02:38 a change of government,
but everything has to change from the
00:02:43 foundations to the top, state,
society and thinking have to change,
00:02:48 and a lot has to change for us to be
talk about transformation here.
People here are disappointed.
00:02:56 People thought it was possible to transform
the country from one moment to the next.
What is good is considered natural,
00:03:03 what is bad is unacceptable,
and it is not so that we
00:03:08 can go to another country and
experience the well-being of it
immediately as a tourist trip.
00:03:16 There, too, it took decades for
the happier half of Europe to have
00:03:21 the economic system and standard of
living that they are enjoying today
00:03:25 and they still have their problems there.
So, in the same way that
00:03:31 all medications have side effects,
there are side effects of
medications and surgical procedures
00:03:38 given during transformation.
Third, not only must the country
00:03:43 bear the burden of transformation,
but also what has happened
00:03:49 throughout the world.
So the disintegration of Eastern
Europe, the Soviet bloc,
00:03:55 has given and gave the whole world
great and optimistic political ideas,
00:04:01 but this is a market failure
in the case of an economic
00:04:07 system built on a Soviet bloc
and it increases our economic
00:04:13 difficulties, and if we add
that a global economic downturn,
00:04:18 a global economic recession is happening
from America to Japan,
Germany and elsewhere,
00:04:25 then there is no wonder that our
place in the world economy is
00:04:31 much more difficult to enforce, and
Hungary is one of the luckier ones here
00:04:38 because with an economic policy turn
we managed to achieve that more than
00:04:45 50 percent of the Western capital
coming into the entire region has come
00:04:51 to Hungary in the last few years
and Hungary's exports to the European community
00:04:57 has taken up more than half of its
share in its total export.
There is also considerable export
00:05:05 now to the United States.
This does not mean that we want
00:05:11 neighbouring countries to be left out,
or the former Soviet Union,
00:05:15 it is a matter of solvency.
We consider it to be an abnormal
00:05:21 condition that, in foreign trade
Poland, the former Czechoslovakia,
00:05:26 or the current two countries,
wentbelow 2% in their share
in Hungarian foreign trade.
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