THE SOCIALIST SYSTEM AND ITS COLLAPSE IN HUNGARY - AN INTERPRETATION IN TERMS OF MODERNIZATION THEORY

Modernisation theory is considered to be the best framework to interpr et the socialist period and the collapse of the socialist system. Mode rnisation is defined here as a combination of five processes: 1. struc tural changes; 2. an improvement in living standards; 3. the developme nt of a welfare system; 4. democratisation; 5. the development of mode rn values and norms. During the socialist period, structural changes u sually went in the direction of modernisation in that living condition s were improved, albeit more slowly than in the market economies, whil e the welfare system was dysfunctional. The greatest obstacle to furth er modernisation was seen to be the absence of values and norms which provide the basis for the functioning of a modern economy and society. The cause of this value crisis was the initially totalitarian and lat er authoritarian character of the system. The failure of the modernisa tion process delegitimised the political system, and subsequent popula r pressure to change the system was the main cause of its collapse. Af ter the revolution, the political system was wholly democratised, but the former socialist countries are confronted with serious economic de cline, which will hopefully be turned around in the coming years. A th oroughgoing reform of social policy is needed but not so easily implem ented. The development of the 'civic virtues', values and norms needed for an efficient market economy and the functioning of political demo cracy might take several decades.