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— CH. 1 · SOVIET OCCUPATION AND FORMATION —

Hungarian People's Republic

~11 min read · Ch. 1 of 6
6 sections
  • The Red Army entered Hungary in 1945 and seized control of the country's political affairs shortly after World War II ended. Soviet forces set up police organs to persecute opposition groups, using intimidation and false accusations to weaken non-Communist parties. In November 1945, the Hungarian Communist Party received only 17% of votes in free elections, losing decisively to a Smallholder-led coalition under Prime Minister Zoltán Tildy. The Kremlin responded by forcing a puppet government that disregarded Tildy and placed communists in key ministerial positions. Communist Interior Minister László Rajk established the ÁVH secret police to suppress dissent through imprisonment and torture. By early 1947, Soviet pressure forced Mátyás Rákosi, the leader of Hungarian Communists, to adopt a harsher class struggle policy. American observers later described these maneuvers as a coup orchestrated by Russia to counter US actions in Greece and Turkey. Rákosi used what he called "salami tactics" to slice away opposition party members one by one. He pressured other parties to remove those unwilling to comply with communist demands, labeling them fascists. Prime Minister Ferenc Nagy resigned in favor of a more pliant Smallholder named Lajos Dinnyés. In the 1947 elections, the Communists became the largest party but still lacked a majority. The coalition remained intact until October 1947 when Rákosi issued an ultimatum: cooperate with a new Communist-dominated government or face exile. Most courageous members of non-Communist parties were pushed out, leaving only loyalists behind. In June 1948, the Social Democrats were forced to merge with the Communists to form the Hungarian Working People's Party. Independent-minded Social Democrats were quickly sidelined. By May 1949, voters faced a single Communist-dominated list with no real opposition left. On the 20th of August 1949, the newly elected National Assembly passed a constitution nearly identical to the Soviet model. That same day, the country was officially renamed the Hungarian People's Republic.

  • Mátyás Rákosi emerged as the de facto leader of Hungary after 1949 and demanded complete obedience from within his own party. His main rival for power was László Rajk, who served as Foreign Secretary at the time. Stalin's NKVD emissary coordinated with Rákosi and the State Protection Authority to stage a show trial against Rajk in September 1949. During the trial, Rajk made a forced confession claiming he had been an agent of Miklós Horthy, Leon Trotsky, Josip Broz Tito, and Western imperialism. He also admitted to participating in a murder plot against Rákosi and Ernő Gerő. Rajk was found guilty and executed despite lacking any credible evidence. Future Hungarian leader János Kádár and other dissidents were purged during this period. During Kádár's interrogation, the ÁVH beat him, smeared him with mercury to block his skin pores, and had his questioner urinate into his pried-open mouth. Another notable show trial occurred in 1950 known as the Trial of the Generals. Several officers were sentenced to death and executed, including Lajos Tóth, a World War II flying ace who had voluntarily returned from US captivity to help revive Hungarian aviation. These victims were cleared posthumously after communism fell. At the height of his rule, Rákosi developed a strong cult of personality and dubbed himself "Stalin's best Hungarian disciple." He imitated Stalinist political and economic programs, resulting in one of Europe's harshest dictatorships. The government collectivized agriculture and extracted profits from farms to finance rapid expansion of heavy industry. More than 90% of total industrial investment went toward producing locomotives and railroad cars. Despite poor resources, Hungary developed new heavy industries to bolster domestic growth and produce exports for raw material imports. Rákosi rapidly expanded education to replace the old educated class with what he called a new working intelligentsia. Religious instruction was denounced as propaganda and gradually eliminated from schools. Cardinal József Mindszenty, who had opposed Nazis during WWII, was arrested in December 1948 and accused of treason. After five weeks under arrest, he confessed to charges made against him and received life imprisonment. Protestant churches were also purged and their leaders replaced by loyalists.

  • The Hungarian Revolution of 1956 began on October 23 as a peaceful student demonstration in Budapest demanding an end to Soviet occupation. Police made arrests and tried to disperse the crowd with tear gas. When protesters attempted to free those detained, police opened fire on the crowd, provoking rioting throughout the capital. Early the next morning, Soviet military units entered Budapest and seized key positions. Citizens and soldiers joined the protesters chanting "Russians go home" while defacing communist party symbols. The Central Committee appointed reformer Imre Nagy as prime minister in response to mounting pressure. On October 25, a mass of protesters gathered in front of the Parliament Building. ÁVH units began shooting into the crowd from rooftops of neighboring buildings. Some Soviet soldiers returned fire on the ÁVH, mistakenly believing they were targets. Supplied with arms taken from the ÁVH or given by Hungarian soldiers who joined the uprising, some in the crowd started shooting back. Imre Nagy went on Radio Kossuth and announced he had taken over leadership as Chairman of the Council of Ministers. He promised far-reaching democratization of public life and radical improvement of workers' living conditions. On October 28, Nagy and supporters including János Kádár took control of the Hungarian Working People's Party. Revolutionary workers' councils and local national committees formed across Hungary. The government newspaper Szabad Nép welcomed the new administration and criticized Soviet attempts to influence events. Radio Miskolc called for immediate withdrawal of Soviet troops. On November 1, Nagy announced Hungary intended to withdraw from the Warsaw Pact and proclaim neutrality. He asked the United Nations to become involved in the dispute with the Soviet Union. On November 3, Nagy detailed his coalition government which included communists, Smallholders, Social Democrats, and Peasants. Pál Maléter was appointed minister of defense. Nikita Khrushchev, leader of the Soviet Union, became increasingly concerned about these developments. On the 4th of November 1956, he sent the Red Army into Hungary. Soviet tanks captured airfields, highway junctions, and bridges within hours. Fighting occurred throughout the country but Hungarian forces were quickly defeated. An estimated 20,000 people died during the uprising, nearly all during Soviet intervention. Imre Nagy was arrested and replaced by Soviet loyalist János Kádár as head of the newly formed Hungarian Socialist Workers' Party. Nagy remained imprisoned until being executed in 1958. Other ministers and supporters executed or dying in captivity included Pál Maléter, Géza Losonczy, Attila Szigethy, and Miklós Gimes.

  • János Kádár initially followed retributions against revolutionaries after 1956. Twenty-one thousand six hundred dissidents were imprisoned, thirteen thousand interned, and four hundred executed. In the early 1960s, however, he announced a new policy under the motto "He who is not against us is with us." This variation softened Rákosi's original quote and marked a shift toward relative liberalization. He declared a general amnesty and gradually curbed excesses of the secret police. A relatively liberal cultural and economic course aimed at overcoming post-1956 hostility toward his regime emerged. Homosexuality was decriminalized in 1961. By the early 1980s, Hungary achieved lasting economic reforms and limited political liberalization while pursuing foreign policies encouraging trade with the West. The state allowed imports of certain Western consumer and cultural products. Hungarians gained greater freedom to travel abroad compared to other Eastern Bloc countries. These measures earned Hungary the moniker of the "merriest barrack in the socialist camp" during the 1960s and 1970s. Kádár remained one of the longest-serving leaders of the 20th century until finally retiring in 1988. He was forced from office by pro-reform forces amidst an economic downturn. Despite this, influences remained supreme until late 1980s when turmoil broke out across the Eastern Bloc. The Communist Party abandoned power just over a year after Kádár's retirement, paving way for free elections in 1990. In June 1989, a four-man executive presidency replaced the Politburo. Three members, Miklós Németh, Imre Pozsgay, and Rezső Nyers, came from radical reform factions. Nyers became party president while Grósz retained general secretary title but now outranked by Nyers. National unity culminated in June 1989 as country reburied Imre Nagy, his associates, and symbolically all victims of 1956 revolution. A national round table comprising representatives of new parties, recreated old parties like Smallholders and Social Democrats, and different social groups met in late summer 1989 to discuss major constitutional changes preparing for free elections.

  • In 1966, the Central Committee approved the New Economic Mechanism moving away from strictly planned economy toward decentralized Yugoslav-style system. Over next two decades of relative domestic quiet, Kádár's government responded alternately to pressures for minor political and economic reforms. Dissidents known as Democratic Opposition remained closely watched by secret police particularly during anniversaries of 1956 uprising in 1966, 1976, and 1986. By early 1980s, Hungary achieved some lasting economic reforms and limited political liberalization pursuing foreign policy encouraging more trade with West. Nevertheless, New Economic Mechanism led to mounting foreign debt incurred to subsidize unprofitable industries. Many manufacturing facilities were outmoded unable to produce goods salable on world markets. Despite this, they succeeded obtaining sizable financial loans from Western countries without much difficulty. During a 1983 visit to Hungary, Soviet leader Yuri Andropov expressed interest adopting some country's economic reforms in Soviet Union. Great social progress occurred between 1949 and 1984. Population aged 20 to 24 years old with less than eight years education decreased from 71.2% to 4.9%. Annual consumption of meat and fish increased from 35 kilograms to 78. Percentage homes with electricity rose from 46.6% to 99%. Homes with running water increased from 17.1% to 76.6%. Number cars per thousand people grew from three to 122. Televisions increased from ten to 276. Washing machines went from 45 to 317. Refrigerators jumped from four to 328. Infant mortality fell from 91 per thousand live births to 20.4. Per capita national income grew by 343% from 1950 to 1983 averaging 4.6% annually. Real wages increased by 136% while real incomes rose by 251%. Real value per capita social benefits rose by 432% from 1960 to 1980. From 1949 to 1984, Hungary's GDP grew as fast as Spain. Poverty greatly reduced though price index rose by 96% between 1962 and 1982. People earning less than 800 forints dropped from 55% in 1962 to 6.4% of those earning under 1800 after twenty years. In 1987 inequality minimal with Gini coefficient of 0.21 and poverty rate at 1%. Plans prioritized investment producer goods over consumer goods leading shortage economy lacking user feedback or innovation incentives. Housing shortages emerged near-total emphasis large low quality prefabricated apartment blocks called Hungarian Panelház common feature Eastern Bloc cities 1970s and 1980s. Even late 1980s sanitary conditions generally far inadequate only 60% housing adequate sanitation by 1984. Only 36% housing had piped water.

  • In 1985 Mikhail Gorbachev rose to power in Soviet Union changing course its foreign policy. Hungary transition Western-style democracy among smoothest former Soviet bloc countries. By late 1988 activists within party bureaucracy Budapest-based intellectuals increasing pressure change. Some became reformist social democrats others began movements developing into parties. Young liberals formed Federation Young Democrats Fidesz. Core Democratic Opposition formed Association Free Democrats SZDSZ national opposition established Hungarian Democratic Forum MDF. Civic activism intensified level not seen since 1956 revolution. In 1988 Kádár replaced General Secretary MSZMP Prime Minister Károly Grósz reformist communist leader Imre Pozsgay admitted Politburo. In 1989 Parliament adopted democracy package including trade union pluralism freedom association assembly press new electoral law. Central Committee plenum February 1989 agreed principle give up MSZMP monopoly power characterizing October 1956 revolution popular uprising words Pozsgay whose reform movement gathering strength Communist Party membership declined dramatically. Kádár major political rivals cooperated move country gradually Western-style democracy. Soviet Union reduced involvement signing agreement April 1989 withdraw Soviet forces June 1991. While Grósz favored refining system democracy package went well beyond model change advocated change system framework Communism. However by time Grósz rapidly eclipsed faction radical reformers including Pozsgay Miklós Németh succeeded Grósz prime minister later 1988 Foreign Minister Gyula Horn Rezső Nyers original architect New Economic Mechanism. This faction now favored system change jettisoning Communism altogether favor market economy. By summer 1989 clear MSZMP no longer Marxist-Leninist party. June four-man executive presidency replaced Politburo three members Nemeth Pozsgay Nyers came radical reform factions Nyers becoming party president. Grósz retained title general secretary but Nyers now outranked effectively making leader Hungary. National unity culminated June 1989 country reburied Imre Nagy associates symbolically all other victims 1956 revolution. National round table comprising representatives new parties some recreated old parties Smallholders Social Democrats different social groups met late summer 1989 discuss major changes Hungarian constitution preparation free elections transition fully free democratic political system. October 1989 MSZMP convened last congress party voted disband re-establish itself Hungarian Socialist Party Western European-style social democratic party Nyers first president. Unable slow down momentum toward full system change Grósz eventually led faction Communists out MSZP form revived Hungarian Socialist Workers Party now Hungarian Workers Party. Biggest changes far came October 16-20 1989 historic session Parliament adopted package nearly hundred constitutional amendments almost completely rewrote 1949 constitution. Package first comprehensive constitutional reform Soviet bloc changed Hungary official name Republic Hungary transformed country one-party Marxist-Leninist state multiparty democracy. Revised constitution guaranteed human civil rights created institutional structure ensuring separation powers judicial executive legislative branches government. Revised constitution championed values bourgeois democracy democratic socialism gave equal status public private property. Although now-dissolved MSZMP already given monopoly power February these changes marked final legal step ending Communist rule. On 33rd anniversary 1956 Revolution October 23 Presidential Council dissolved. According constitution parliament Speaker Mátyás Szűrös named provisional president pending elections following year. One Szűrös first acts officially proclaim Republic of Hungary. Hungary decentralized economy strengthened ties western Europe May 2004 became member European Union.

Common questions

When was the Hungarian People's Republic officially established?

The country was officially renamed the Hungarian People's Republic on the 20th of August 1949. This change occurred when the newly elected National Assembly passed a constitution nearly identical to the Soviet model.

Who led Hungary after the 1956 revolution and what happened to Imre Nagy?

János Kádár replaced Imre Nagy as head of the newly formed Hungarian Socialist Workers' Party following the Soviet intervention in November 1956. Imre Nagy remained imprisoned until being executed in 1958 alongside other ministers such as Pál Maléter and Géza Losonczy.

What economic reforms did János Kádár implement during his rule?

In 1966, the Central Committee approved the New Economic Mechanism moving away from strictly planned economy toward decentralized Yugoslav-style system. The government also decriminalized homosexuality in 1961 and achieved lasting economic reforms by the early 1980s while pursuing foreign policies encouraging trade with the West.

How many people died during the Hungarian Revolution of 1956?

An estimated 20,000 people died during the uprising, nearly all during Soviet intervention on the 4th of November 1956. Fighting occurred throughout the country but Hungarian forces were quickly defeated by Red Army tanks that captured airfields and highway junctions within hours.

When did Hungary transition back to a democracy after communist rule ended?

The Communist Party abandoned power just over a year after János Kádár's retirement in 1988 paving way for free elections in 1990. A four-man executive presidency replaced the Politburo in June 1989 and Parliament adopted constitutional amendments between October 16 and 20 1989 to transform the state into a multiparty democracy.