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1. Background

Hungary experienced considerable economic growth during the period 1966–1975. Average real income per capita increased rapidly. During the five year period 1971–1975 the average increase was reported to have been 5.7%. During the following years the increase had slowed down and was reported to be only 0.2% 1.

1 Éleszinvonal 1960–1980 KSH Budapest 1981

Agriculture - and export of agricultural produce - played a leading role in the economic growth. Productivity grew as total production increased and the number of persons employed in primary production declined (from 35% to 20% of persons employed). For example, during the period 1960–1977 the reported production of wheat and maize per worker employed increased five-fold; beef production per worker increased three-fold. For most crops production per unit of land also increased; (e.g. wheat production per ha was reported to be 2 130 kg. in 1970 and 3 260 in 1979; maize to 3 380 kg. per ha in 1970 and 5 440 in 1979).

Data available on fish culture is not comprehensive enough to allow identification of productivity trends during the last decade. It is, however, clear that both annual production and total pond surface area have remained relatively unchanged from 1960 to 1980 at about 12 000 to 16 000 tonnes of market fish and 21 000 hectares respectively. However, during the last decade considerable technical development has taken place, and probably production per man-year has increased as a result.

Hungary, being affected by the slow-down of economic activities in the industrialized world, foresees little economic growth in the years ahead. Government is therefore keen that available resources are used as efficiently as possible. Aware that in the past economists have participated relatively little in the development of fish culture, the concerned Government organizations have felt the need to involve economists more fully in the planning for this industry's future.

It is in this context that FCRI1, within the framework of the FAO/UNDP project Intensive Freshwater Fish Culture, decided to examine whether or not a more detailed and systematic application of economic theories in decision making possibly could help in improving the efficiency of resource use in aquaculture research and production. It was decided to recruit an economist for a period of two months to help undertake this study.

1 The Fish Culture Research Institute at Szarvas, Hungary.


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