Unified market - common tariff system, currency, measurements
protective customs
free flow of capital and labour force
for 10 years
Infrastructure
Currency reform - Wekerle Sándor
gold cover for the crown 1892
banks opened - foreign and later Hungarian capital invested
banks became shareholders
credit is necessary for investment
Regulation of rivers
longest dam system in Europe
Tisza flood - Szeged 1879
navigable rivers, new territories for agriculture - swamps are drained
Transportation
Railway is basis of development
started in reform age 1846 Pest-Vác
needed to join world trade
private capital needed - state assured income for investor - interest insurance
later state bought lines - MÁV 1868
this meant cheap prices for transportation
Baross Gábor - iron minister
modern railway network like in Europe
railway developed other fields of industry - mining, machinery, textile
hidden places connected
cheap raw materials
Navigation on rivers and at sea
rivers made navigable
Baross Gábor
Fiume - international port
British support
success in Hungarian export
Navigation on rivers and at sea
rivers ma...
Economic policy
industry became strategic field
though most politicians landowners...
legislative support - laws on industry
compromise - protective customs
main goal is closing up!
Industrial development
Industry can develop now
no more guilds
factories founded - Ganz, Weiss...
cheap labour force
foreign and home capital invested
best is food/processing industry and heavy industry - industrial centres
agriculture surplus invested in industry
milling industry - Budapest
1st and 2nd industrial revolution together!!!
Industry can develop n...
Hungarian inventions
Kandó Kálmán - electric traction
Galamb József - Ford's engeneer
Déry Miksa, Bláthy Ottó - transformer
Bánki Donát, Csonka János - carburator
Puskás Tivadar - telephone exchange
etc..............
The larder of the monarchy
always primary field of economy
export gradually increased
our market is the monarchy
our wheat protected by tariffs - cheap American crops
growing productivity - more territories, some machines (only latifundia!), huge amount of cheap labour force (agrarian proletariat), fertilisers, crop rotation