KKDAS GUPTA The Nature of Post-Reform Economic Management in Eastern Europe: The Hungarian Case THE year 1965 marks a dividing line between an extensive pattern of economic development in the Soviet Union and other East European socialist countries and the introduction of a new system of management and planning. The year in question is not simply a line of demarcation between the two epochs for convenience alone. There were forces and factors, now known to all concerned with the study of European socialist economies, that prompted them to designate it as the point of departure for the post-reform period or rather the age of the new economic system of management and planning. The purpose of this paper is to lay bare the important issues relating to the "macro" and "micro53 management linkages within the framework of the new system, and then to examine the implications of framework of the new system in the working of the Hungarian economy. In this regard, the nature of the main instrument of economic control in Hungary, that is, the '"regulatory mechanism", intended to create conditions of efficiency in the working of micro economic organs like enterprises in a condition of sufficient degree of autonomy has been pointed out. Finally, some observations on the dialectical inter-relations between control and devolution in economic management in Hungary have been made.