Hungary and state capitalism – Thesis concerning the interpretation of the economic paradoxes of our history after 1949

The author joins those approaches which do not regard the system left behind as socialism from the point of view of formation theory but determine it as state capitalism. He depicts the analogies of this „state capitalism" in various third world economies and analyses the operation of these systems as their inner structural-power relations. He arrives at the conclusion that the present changes leave the state capitalist structures untouched and this way, it is impossible to break out from the mistaken circles of the „third world". The author sees the solution in a mixed economy kept in balance with antimonopoly measures which is characterised by private property of small enterprises as well as workers' ownership of large companies.