Hungary: Toward Liberalization

In Eastern Europe, politics and economics have come to mingle like goulash and galuska (dumplings). The economic liberalization that is sweeping the area is difficult—and even dangerous—for Communist rulers to resist. Last week Hungary made a major move toward liberalization by appointing Jenö Fock, 51, a noted economist, to serve as the country's new Premier. Fock, who replaces Gyula Kállai, 57, is the author of Hungary's "New Economic Mechanism," which goes into effect next year. He is expected to steer a middle course between the conservatives, who want to keep the economy in the firm grip of the party planners,...