The development of Hungarian labor has paralleled the country's gradual industrialization and may be divided into four major phases: (1) the epoch of "pioneering" industrialism, 1867-1919; (2) consolidation of industrial economy and stabilization of labor movements, both economic and political, 1920-44; (3) postwar reconstruction of democratic Hungary, 1945-47, with labor a decisive economic-political factor; and (4) regimentation and exploitation, subsequent to the Communist coup d'état of 1947.
The conditions of industrial production and the structure of the Hungarian economy were quite different in each epoch. The transition from one phase to another was not smooth. In fact, grave political crises that led to basic economic changes mark the end of each period. The pioneering epoch came to a close at the end of World War I, which resulted in the dismemberment of the Austro-Hungarian Monarchy, and a considerable loss of Hungary's natural resources. The second phase ended with the collapse of the Hungarian kingdom at the end of World War II. Gradually increasing Soviet domination of EastCentral Europe, leading to the Communist coup of June 1947, destroyed the democratic institutions as well as the economic balance of postwar Hungary. The new phase— Hungary's integration into the Soviet orbit—then began.
The industrial revolution occurred relatively late in Hungary. In fact, the Vienna government considered Hungary's place in the Austro- Hungarian Empire as an agricultural colony, the source of cheap food supplies and of raw materials for Austrian and Bohemian industry. The Compromise ( Ausgleich) of 1867, which established the Dual