Editing Hungarian People's Republic (1949–1989) (section)

=== Foundation ===

Beginning in 1948, an industrialization policy based on the [[Union of Soviet Socialist Republics (1922–1991)|Soviet]]-style [[planned economy]] changed the economic character of the country. A centrally-planned economy was introduced, and millions of new jobs were created in industry (notably for women) and, later, in services. The country had a severe lack of natural resources, which forced them to depend almost entirely on Soviet imports.<ref>{{Citation|year=1990|title=Hungary: a country study|publisher=Federal Research Division|lg=http://libgen.rs/book/index.php?md5=0953F6A43B5017ACC0EEF63EA13C214A|author=|quote=The country's general lack of raw materials has necessitated foreign trade, a concern that has dominated the economic policies of Hungarian governments since 1918, when the country lost much of the territory it held prior to World War I [...] The Soviet Union was Hungary's principal supplier of raw materials.}}</ref>

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Although Soviet-type economic modernization generated rapid growth, it was based on an early 20th-century structural pattern. The heavy industries of iron, steel, and engineering were given the highest priority, while modern infrastructure services, and communication were neglected. New technologies and high-tech industries were underdeveloped and further hampered by Western restrictions on the export of modern technology to the Soviet bloc.

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