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Hungary Direct Administrative Intervention
In the late 1980s, the government reserved the right to
intervene directly in sectors marked by a significant
market
imbalance and when manipulation of economic regulators
proved
insufficient to achieve or restore a state of equilibrium.
The
government also could intervene directly when a Comecon
agreement
had to be fulfilled. Means of direct government
intervention
included allocating resources; adjusting imports, exports,
or
purchases by producers and distributors; forcing
enterprises to
accept contracts to supply, for example, important
investment
projects, the health care system, state reserves, and
other
areas; designating distribution channels; and prescribing
inventory levels. Each year the government decided which
enterprises were subject to central intervention, and a
list of
these enterprises became a part of the annual plan. In the
late
1980s, government recourse to central allocation or
administrative intervention had become an exception to the
rule,
and when such intervention did take place, it was in a
number of
cases only temporary.
Data as of September 1989
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