Abstract
The relationship between land reform and economic development in the people's democracies of Central and Eastern Europe after World War II has been discussed mainly in the context of comparative legal and historical analyses of particular countries. The broader question of the role of land reform in the process of structural change of the economy – analyzed both for individual countries and for the whole region – requires more thorough investigation.
This article examines the basic relationships between land reform and economic development in the people's democracies of Europe after World War II, analyzing the connection between the parcelling out of large estates, the reduction of agrarian overpopulation, the shift of manpower from agriculture to industry, and the transformation of the structure of national income and employment.
The analysis draws on official statistical yearbooks of the people's democracies (Bulgaria, Czechoslovakia, Yugoslavia, GDR, Poland, Romania, Hungary), UN reports on land reform and economic progress, and the comparative demographic and economic literature (Kuznets, Nelson's low-level equilibrium trap theory).
The analysis shows that the land reforms of the late 1940s solved the problem of land hunger by apportioning land to four million farmers, but could not by themselves radically change conditions in the countryside. Their lasting economic significance lay in releasing agrarian overpopulation for employment in industry, thereby enabling extensive industrialization. In Poland the share of agriculture in national income fell from 68% in 1929 to 24% in 1948; similar trends appear for Hungary. By avoiding the low-level equilibrium trap – in which limited land, population growth, and lack of foreign capital prevent income growth – the people's democracies achieved rapid structural transformation. The Prussian way of agrarian capitalism was superseded by socialist industrialization, which could not have proceeded without prior resolution of the agrarian question.
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