Efficiency and employment in Hungarian agriculture

Mészáros, Sándor – Szabó, Gábor

Keywords: total-factor productivity, efficiency-oriented and employment-oriented agricultural policy

Hungary cannot avoid the global economic competition aimed at increasing the efficiency of agricultural production, mainly to protect our export markets but in order to keep the domestic consumers as well. Compared to other Eastern European Union Member States currently we are doing well, but we have to face the fact that the level of efficiency among sectors and among plants is extremely diverse, which indicates the existence of substantial reserves. The agricultural administration, however, cannot afford to unilaterally subordinate the efficiency of agricultural production and operating structure. The occupational and environmental aspects also deserve attention.
It would be important to improve the carrying capacity of our agriculture, at least in some regions (Transtisza, Northern Hungary, Southern Transdanubia), due to local production. Confronting efforts for efficiency and efforts for employment, at the national level we can distinguish two types of agricultural development strategies: one is efficiency-oriented, the other is employment-oriented development. Both strategies are backed by different interests, plant type (and size), production structure. Supporting one or the other strategy is a political decision or, more accurately, a sequence of decisions.
We are convinced that, unlike in past decades of practice, the foundation of the strategic decisions exact, economic, social and environmental dimensions have to be taken into account when carrying out impact assessments.

Full article