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Selling Market Socialism: Hungary in the 1960s

Published online by Cambridge University Press:  20 January 2017

Abstract

Beth Greene discusses the media portrayal of sales and marketing activities in the early phase of the Hungarian market reforms in the late 1960s. Using articles from the popular and specialist press and archive sources from Hungarian Radio and Television, the author argues that under the New Economic Mechanism (NEM), sellers were elevated as symbolic figures of market socialism and thus the modern socialist economy. The media portrayed sales activities as addressing endemic problems of the command economy, mediating production and consumption, and creating a buyer's market in which sellers would compete for customers. This article provides a unique approach in examining the role of sellers and selling under the market socialism, adding to the rich literature on state socialist consumption and challenging the traditional view that Soviet bloc governments sought to control production and consumption independently and irrespective of their connection to the market.

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Articles
Copyright
Copyright © Association for Slavic, East European, and Eurasian Studies. 2014 

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References

1. Bihari, Ferenc, “Mit kíván a kedves vevő?,” Népszabadság, 25 luly 1968.Google Scholar Here and for the remainder of this article, emphasis is in the original.

2. Hungarian economist János Kornai used the term shortage economy to describe these planned economies. Kornai, János, The Economics of Shortage (Amsterdam, 1980).Google Scholar

3. Reid, Susan E. and Crowley, David, eds., Style and Socialism: Modernity and Material Culture in Post-War Eastern Europe (Oxford, 2000), 9.Google Scholar The combination of technology and consumerism can be seen in the discourse around East German plastics. See Stokes, Raymond G., “Plastics and the New Society: The German Democratic Republic in the 1950s and 1960s,” in Reid and Crowley, eds., Style and Socialism, 6580.Google Scholar

4. See, for example, Crowley, David, “Warsaw's Shops, Stalinism and the Thaw,” in Reid and Crowley, eds., Style and Socialism, 4244;Google Scholar Patterson, Patrick Hyder, “Risky Business: What Was Really Being Sold in the Department Stores of Socialist Eastern Europe?,“ in Bren, Paulina and Neuburger, Mary, eds., Communism Unwrapped: Consumption in Cold War Eastern Europe (Oxford, 2012), 116-39.Google Scholar For this article, I use the term consumer to describe the government's interaction with the purchaser, and buyer or customer to refer to the purchaser engaged in the process of purchasing goods or services. In Hungarian texts, the three most common terms that are used to describe the Hungarian citizen in the act of consumption—fogyasztó, vevő, and vásárló—are used more or less interchangeably, with the exception of occasions where the difference is explained, as in the joke in Népszabadság quoted above.

5. Fehér, Ferenc, Heller, Ágnes, and Márkus, György, Dictatorship over Needs (Oxford, 1983)Google Scholar and Kornai, János, The Socialist System: The Political Economy over Communism (Princeton, 1992).Google Scholar A short but oft-cited passage on this topic is also in Verdery, Katherine, What Was Socialism and What Comes Next? (Princeton, 1996), 2629.CrossRefGoogle Scholar

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7. The literature on consumption in the Soviet bloc is too numerous to cite, although much of it focuses on the Soviet Union and East Germany, the latter often drawing on comparisons to West German consumption standards. However, there are several edited volumes that address consumption in other east European socialist countries. See, for example, Crowley, David and Reid, Susan E., eds., Pleasures in Socialism: Leisure and Luxury in the Eastern Bloc (Evanston, 2010)CrossRefGoogle Scholar and Bren and Neuburger, Communism Unwrapped.

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10. Reid and Crowley, Style and Socialism, 12; Bren and Neuburger, Communism Unwrapped, 9; Reid, “Cold War in the Kitchen,” 215-23.

11. Some recent exceptions include Neuburger, Mary, “The Taste of Smoke: Bulgartabak and the Manufacturing of Cigarettes and Satisfaction,” in Bren and Neburger, eds., Communism Unwrapped, 91-115;Google Scholar Patterson, “Risky Business“; and Patrick H. Patterson, “Making Markets Marxist? The East European Grocery Store from Rationing to Rationality and Rationalizations,” in Belasco, Warren and Horowitz, Roger, eds., Food Chains: From Farmyard to Shopping Cart (Philadelphia, 2008), 196216.Google Scholar Scholarship on sellers in the Soviet Union has fared relatively better, although often focusing on the pre-Khrushchev eras. See, for example, the comprehensive book by Hessler, Julie, A Social History of Soviet Trade: Trade Policy, Retail Practices, and Consumption, 1917-1953 (Princeton, 2004)CrossRefGoogle Scholar, and Gronow, Jukka, Caviar with Champagne: Common Luxury and the Ideals of the Good Life in Stalin's Russia (Oxford, 2003)CrossRefGoogle Scholar. I use the term seller or vendor here to indicate an individual or company that is engaged in marketing products or brands to individual customers. This is to distinguish the act of sales from the act of production: the latter had always been a key element of state socialist economic policy, while the former gained more prominence with market socialist reforms. Nonetheless, I recognize that sellers often had economic roles that extended to all aspects of commerce.

12. Fehérváry, “Goods and States,” 440.

13. “Russia: Paradise by 1956,” Time, 9 November 1953, at http://www.time.com/time/magazine/article/0,9171,819151,00.html#ixzz24TmW3Qd7 (last accessed 19 August 2013). In the early 1960s the Hungarian government released a number of propaganda films, often featuring famous actors, that encouraged sellers to be more attentive to customers. Without economic incentives, however, these videos were largely ineffectual. See Papp, Gábor Zsigmond and Tamási, Miklós, “A pesti üzlet,” Budapest Retro 2, directed by Gábor Zsigmond Papp (Budapest, 2003)Google Scholar, DVD.

14. Heller, Féher, and Márkus, , Dictatorship over Needs, 86–91, 96;Google Scholar evidence of this disconnect can be seen in Steiner, André, “Dissolution of the ‘Dictatorship over Needs'?,“ in Strasser, McGovern, and Judt, eds., Getting and Spending, 167-85.Google Scholar

15. Kornai, , The Socialist System, 245-52.Google Scholar

16. Ibid., 500-501.

17. See Paterson, Patrick, Bought and Sold: Living and Losing the Good Life in Socialist Yugoslavia (Ithaca, 2011)CrossRefGoogle Scholar, especially the chapter “Selling it: Legitimizing the Appeal of Market Culture,” 109-47. An interesting, if idealized, version of the Czechoslovak consumption experience can be seen in the television series Žena zapultem (The Woman behind the Counter, 1977-78), which features a woman who works behind the deli counter at the state-owned supermarket. See Paulina Bren, The Greengrocer and His TV: The Culture of Communism after the 1968 Prague Spring (Ithaca, 2010), 190-94; Fehérváry, “Goods and States,” 442.

18. Hanson, Philip, Advertising and Socialism: A Study of the Nature and Extent of Consumer Advertising in the Soviet Union, Poland, Hungary, and Yugoslavia (White Plains, 1974);CrossRefGoogle Scholar Kaminsky, Anne, “'True Advertising Means Promoting a Good Thing through a Good Form': Advertising in the German Democratic Republic,” in Swett, Pamela E., Jonathan Wiesen, S., and Zatlin, Jonathan R., eds., Selling Modernity: Advertising in Twentieth-Century Germany (Durham, 2007), 262-86;Google Scholar Patterson, Patrick, “Truth Half Told: Finding the Perfect Pitch for Advertising and Marketing in Socialist Yugoslavia, 1950-1991,” Enterprise & Society 4, no. 2 (March 2003): 179225.CrossRefGoogle Scholar

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20. Illés együttes, “Reklám úr,” on Illések és Pofonok, Hungaroton HCD 37705 CD1, 1993, compact disc. Originally released 1969.

21. I focus here on the years between 1965, when the initial reform resolution was announced, and 1972, when the brakes that had been built into NEM were liberally applied and dogmatic elements of the party gained ascendency. However, much of the reform rhetoric remained in place throughout the remainder of the state socialist period in Hungary, and NEM was never officially abandoned. See Róna-Tas, Ákos, The Great Surprise of the Small Transformation: The Demise of Communism and the Rise of the Private Sector in Hungary (Ann Arbor, 1997), 109.CrossRefGoogle Scholar

22. For example, the English terms marketing and public relations were often used in Hungarian texts.

23. Indeed, no set of rules within state socialism labeled these techniques as inherently “socialist” or “not socialist.” Neuburger, “The Taste of Smoke,” 106.

24. Vörös Miklós, “Életmód, ideológia, háztartás: A fogyasztáskutatás politikuma az államszocializmus korszakában,” Replika 26 (June 1997): 26. In one interesting example of this approach, István Bessenyei and Maria Heller conducted research in the 1980s that suggested state-owned companies used advertising in order to create demand for those products for which the companies needed to secure scarce resources from the state. István Bessenyei and Mária Heller, “Fogyasztás, reklám, ideológia,” Társadalmi Szemle 37, no. 11 (November 1982): 32-41. See also Hanson, Advertising & Socialism, 119.

25. Khrushchev, Nikita, Documents of the 22nd Congress of the CPSU, vol. 2, Report on the Program of the Communist Party of the Soviet Union (New York, 1961), 83.Google Scholar

26. Vörös, “Életmód, ideológia, háztartás,” 18. The party was renamed after the revolution to distance itself from the Hungarian Workers’ Party (MDP), which was associated with Mátyás Rakosi, the Stalinist Hungarian leader.

27. For an excellent introduction to the Kádár government's early cultural policies, see Kalmár, Melinda, Ennivaló es hozomdny: A kora kádárizmus ideológiája (Budapest, 1998).Google Scholar

28. “Az MSZMP VIII. Kongresszusának Határozata a Szocializmus Építésében Elért Eredményekről és a Párt Előtt Álió Feladatokról,” in Mrs. György Feles, ed., A Magyar Szocialista Munkáspárt határozatai és dokumentumai 1956-1962 (Budapest, 1964), 577

29. Gough, Roger, A Good Comrade: János Kádár, Communism, and Hungary (London, 2006), 150.CrossRefGoogle Scholar An interesting example of the government's focus on consumption can be seen in the evolution of Hungarian fashion. See Simonovics, Ildiko and Valuch, Tibor, eds., Öltöztessük fel az országot!: Divat es öltözködes a szocializmusban (Budapest, 2009).Google Scholar

30. For a summary of the debates, see Gomori, George, “'Consumerism’ in Hungary,“ Problems of Communism 12, no. 1 (January-February 1963): 6466;Google Scholar Pótó, János, “A kommunizmus 'igérete,'” História 8, no. 5-6 (1986): 2629;Google Scholar and Tamás Dombos and Lena Pellandini-Simanyi, “Kids, Cars, or Cashews? Debating and Remembering Consumption in Socialist Hungary,” in Bren and Neuburger, eds., Communism Unwrapped, 325-50.

31. “Párbeszéd a népszaporulatrol,” in Tibor Róna, Több nyelven beszèlünk (Budapest, 1966), 243. Indeed, the show's title, “Kicsi vagy kocsi” (Kid or Car), became the nickname for the actual “Debate on the Growth of the Birth Rate” in the Hungarian literary journal Élet és Irodalom; this is arguably indicative of how seriously the average Hungarian took these debates. Pótó, “A kommunizmus ‘igérete,'” 26.

32. “Kúltura és életforma: A szerkesztőség zárszava,” Új frás 2, no. 8 (1962): 904.

33. This idea is addressed satirically in a sketch from Róna's “Kid or Car.” In the course of a classroom discussion a teacher asks one of his students to describe the difference between socialist and bourgeois consumption. The student responds, “A socialist person buys a refrigerator because it will allow his wife to be a productive member of society. A bourgeois person just [buys one] to store his food.” “Családi iskola,” in Róna, Több nyelven beszélünk, 251.

34. Dr. Imre Bóc, “A fogyasztás művészete: Vásárolni tudni kell,” Figyelő, 6 August 1969.

35. Quoted in Tibor Valuch, “Everyday Life,” in Gyányi, Gábor, Köver, György, Valuch, Tibor, eds., Social History of Hungary from the Reform Era to the End of the Twentieth Century (New York, 2004), 627.Google Scholar Similar discussions existed in the Soviet Union. One Soviet official was quoted as saying, “Communism excludes those narrow-minded people for whom the highest goal is to acquire every possible luxurious object.” Quoted in Reid, “Cold War in the Kitchen,” 219.

36. Valuch, Tibor, Hétköznapi élet a Kádár János koraban (Budapest, 2006), 143.Google Scholar

37. In the 1966 version of the game, “complete furnishings” included modern consumer goods: a radio, washing machine, sewing machine, and vacuum cleaner.

38. Keresztes, Tibor, Gazdálkodj Okosan! Játékszabály (Budapest, 1966).Google Scholar

39. Heller was a coauthor of the influential but controversial Dictatorship over Needs.

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41. Batt, Judy, Economic Reform and Political Change in Eastern Europe: A Comparison of the Czechoslovak and Hungarian Experiences (New York, 1988), 95.CrossRefGoogle Scholar For details on the Hungarian economy's shortcomings, see Berend, Ivan T., The Hungarian Economic Reforms 1953-1988 (Cambridge, Eng., 1990), 113-28.Google Scholar

42. János Rainer argues that Khrushchev's removal actually benefitted the Hungarian reforms, since the Hungarians were able to abandon his overly ambitious plan to “catch up and surpass” American consumption levels in favor of more realistic goals. Rainer, János M., ed., “Hatvanas évek“Magyarországon: Tanulmányok (Budapest, 2004), 20.Google Scholar

43. “Az MSZMP Központi Bizottságának kiinduló irányelvei a gazdaságirányitási rendszer reformjára,” in Vass, Henrik, ed., A Magyar Szocialista Munkáspárt határozatai és dokumentumai, 1963-1966 (Budapest, 1978).Google Scholar

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46. “Irányelvei a gazdasági mechanizmus reformjára,” 318.

47. Ibid., 401.

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75. Ibid., 25.

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79. Pál, “A vevőlélektani kutatások tapasztalatainak alkalmazása,” 29.

80. Kovács, “Módszerek és szabályok,” 35.

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82. János Buzási, “Kereskedni: Hivatás,” Népszabadság, 19 June 1970.

83. Buzási, “Milyen ember a kereskedő?“

84. Buzási, “Kereskedni: Hivatás.“

85. Fekete, “Miért nem vesz a vevő?“

86. Komor, “Pszichológusok a boltban.“

87. Kovács, “Módszerek és szabályok,” 35.

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95. Tibor Forgács, “Marketing a tervgazdaságban.“

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99. Indeed, “Shoes from the Shoe Store” remains an oft-cited example of advertising in state socialist Hungary. If advertising's goal is to be memorable, this slogan is one of the more successful.

100. Hoffmann, and Buzási, , A reklám birodalmából, 45.Google Scholar

101. Dr.Wilcsek, Jenő, “Marketing a szocialista gazdaságban,” Figyelő, 11 December 1968.Google Scholar

102. Patterson, , “Truth Half Told,” 218; Hanson, Advertising & Socialism, 29.Google Scholar

103. Kertész, Lásló, “A korszerű reklám szervezéséről,” Kereskedelmi Szemle 8, no. 3 (1967).Google Scholar

104. MOL XXIX-A-8-a. 63. d. Előterjesztés a Magyar Rádió és Televízió Elnöksége részére: Kereskedelmi reklám és propaganda a Rádióban és a Televizióban. MRT also set limits on the amount of advertisements that could appear: sixty minutes per week for television and eighty minutes per week for radio.

105. Ribner, György, “Reklámtevékenységünk etikai normái,” Kereskedelmi Szemle 13, no. 2 (1972): 51.Google Scholar

106. Fekésházy, Géza, “Reklám és tisztességtelen verseny,” Figyelő, 30 October 1968.Google Scholar

107. Hanson, Advertising & Socialism, 121.

108. Fekésházy, “Reklám és tisztességtelen verseny.“

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113. Horváth, “A reklám—ma és holnap.“

114. Hoffmann, and Buzási, , A reklám birodalmából, 52,55.Google Scholar

115. Mihály Horváth, “A reklám—ma és holnap.“

116. Békés, Attila, “Minőséget, korszerűséget garantál a marketing intézet,” Esti Hirlap, 23 March 1968.Google Scholar

117. Szabó, “A marketing alapjai,” 20.

118. Kertész, “A korszerű reklám szervezéséről,” 32.

119. Szabó, “A marketing alapjai,” 20-21.

120. “A mechanizmus nyitánya a VIDEOTON-ban: Nyilatkozik: Papp István, vezérigazgató,“ Fejér Megyei Hirlap, 3 January 1968.

121. “Az idei divat,” Ifjúsági Magazin, no. 5 (May 1968): 49.

122. “Látjuk is, halljuk is, VT is—ezért VIDEOTON,” Esti Hirlap, 20 January 1968.

123. Szabó, “A marketing alapjai,” 21.

124. Dolecskó, “Videoton és társai,” Esti Hirlap, 12 March 1968.

125. Hoffmann and Buzási, A reklám birodalmából, 55.

126. Kertész, “A korszerű reklám szervezéséről,” 162.

127. “A mechanizmus nyitánya a viDEOTON-ban.“

128. Dr.Gazda, Tamás, “Marketing a kereskedelemben,” Kereskedelmi Szemle 8, no. 4 (1967): 23.Google Scholar

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131. MOL XXVI-A-8-a. 68. d. Utasítás a rádió- és televízióreklámok szerkesztésének és politikai ellenőzésének továbbfejlesztésére.

132. MOL XXVI-A-8-a. 68. d. Előterjesztés a Magyar Rádió Vezetői Értekezlete részére. Tárgy: Rádióreklám.

133. MOL XXIX-A-8-a. 25. d. Tervezet: MRT. Kereskedelmi és Hirdető szervezésére.

134. Hoffmann and Buzási, A reklám birodalmából, 64.

135. Forgács, Pál, “Képzettebb reklámszakembereket a kereskedelemnek,” Kereskedelmi Szemle 12, no. 3 (1971): 43.Google Scholar

136. Sándor, II. Reklámkonferencia: Budapest, 239.

137. Fényszöv was a Hungarian photography company.

138. “Reklámmosoly—tanfolyam,” Nők Lapja, 11 March 1967,11.

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