Since 1989/90, Hungary has been immersed in new efforts towards modern
ization in order to bring the economy and the society closer to wester
n European standards. However, he transition to a modern market econom
y and to democracy has proven to be more difficult than initially expe
cted. The tendencies and problems of this modernization process are ex
amined with the help of data from sociological studies conducted since
1990. The social structure is tending increasingly towards that of a
modern society: the middle strata, such as those occupied by educated
officials and the petty bourgeoisie, is growing; the reigning elite is
broadening and diversifying. Poverty has more than doubled, due to th
e slide in production. Dissatisfaction is high and emotional problems
common among the disadvantaged strata. Lawlessness seems to be the gre
atest barrier to successful transition. The election results of 1994 c
an be interpreted as an expression of dissatisfaction. The worst of th
e economic crisis, however, seems over, and the democratic political s
ystem has, to this point, not been jeopardized.