The political economy of post-transition transportation policy in Hungary

This paper reviews transportation system trends in Hungary since the transition in 1989. It documents the continuation of rapid increases in private motor vehicle ownership and use despite a major economic downturn. Sharp increases in new highway investments are contrasted with a growing backlog of unmet maintenance and rehabilitation needs in the road, rail and public transit sectors. It then reviews recent political struggles over these policies, and the effectiveness of these policies in promoting employment, regional development, and a sustainable environment. It suggests that the dynamics of the post-industrial economy may have reduced the importance of highway sector investments relative to investments into human capital.