Market reform and state paternalism in Hungary: a path-dependent approach

Hungary is one of the worst-hit countries of the current financial crisis in Central and Eastern Europe. The deteriorating economic performance of the country is, however, not a recent phenomenon. A relatively high ratio of redistribution, a high and persistent public deficit and accelerated indebtedness characterised the country not just in the last couple of years but also well before the transformation, which also continued in the postsocialist years. The gradualist success of the country – which dates back to at least 1968 – in the field of liberalisation, marketisation and privatisation was accompanied by a constant overspending in the general government. The paper attempts to explore the reasons behind policymakers’ impotence to reform public finances. By providing a path-dependent explanation, it argues that both communist and postcommunist governments used the general budget as a buffer to compensate losers of economic reforms, especially microeconomic restructuring. The ever-widening circle of net benefiters of welfare provisions paid from the general budget, however, has made it simply unrealistic to implement sizeable fiscal adjustment, putting the country onto a deteriorating path of economic development.

Egyéni és kormányzati felelősség a vállalkozói kultúrában – Európában és Magyarországon = Individual and state responsibility in entrepreneurial culture – In Europe and Hungary

Tanulmányunkban a European Values Study adatai alapján megvizsgáljuk, miben tér el Európában a vállalkozók értékrendje más társadalmi csoportokétól, különös tekintettel az egyéni és a kormányzati felelősségvállalás megítélésére. Kísérletet teszünk a vállalkozói értékrend különböző szintjei – személyes, társadalmi és kormányzattal kapcsolatos értékrend – közötti összefüggések feltárására. Összehasonlítjuk, mennyire jellemzi a vállalkozói értékrend az egyes európai országok lakosságát, kiemelt figyelmet fordítva Magyarországra. Egy hazai vállalkozói adatbázis alapján megvizsgáljuk, hogy a magyar vállalkozók értékrendje eltér-e az európai átlagtól, továbbá milyen törésvonalak húzódnak a vállalkozói populáción belül az értékrend szempontjából. _____ Data from the European Values Study are used to examine what sets apart the normative views of entrepreneurs from those of other social groups in Europe about individual and state responsibility. Different levels of an individual’s value system are distinguished: personal, social and state-related values are differentiated. The interrelationships among these levels are explored. Using multivariate statistical analysis, we examine the prevalence of ‘entrepreneurial’ views in European countries, especially in Hungary. Relying on data from a survey of 300 Hungarian small entrepreneurs, we explore if their value system differs from the average value system of European entrepreneurs. Finally, we examine the factors social and economic factors that influence entrepreneurs’ views on personal and state responsibility.

State���society relations in a dynamic framework: The case of the Far East and Sub-Saharan Africa.

According to the textbook approach, the developmental states of the Far East have been considered as strong and autonomous entities. Although their bureaucratic elites have remained isolated from direct pressures stemming from society, the state capacity has also been utilised in order to allocate resources in the interest of the whole society. Yet, society – by and large –has remained weak and subordinated to the state elite. On the other hand, the general perception of Sub-Saharan Africa (SSA) has been just the opposite. The violent and permanent conflict amongst rent-seeking groups for influence and authority over resources has culminated in a situation where states have become extremely weak and fragmented, while society – depending on the capacity of competing groups for mobilising resources to organise themselves mostly on a regional or local level (resulting in local petty kingdoms) – has never had the chance to evolve as a strong player. State failure in the literature, therefore, – in the context of SSA – refers not just to a weak and captured state but also to a non-functioning, and sometimes even non-existent society, too. Recently, however, the driving forces of globalisation might have triggered serious changes in the above described status quo. Accordingly, our hypothesis is the following: globalisation, especially the dynamic changes of technology, capital and communication have made the simplistic “strong state���weak society” (in Asia) and “weak state���weak society” (in Africa) categorisation somewhat obsolete. While our comparative study has a strong emphasis on the empirical scrutiny of trying to uncover the dynamics of changes in state���society relations in the two chosen regions both qualitatively and quantitatively, it also aims at complementing the meaning and essence of the concepts and methodology of stateness, state capacity and state-society relations, the well-known building blocks of the seminal works of Evans (1995), Leftwich (1995), Migdal (1988) or Myrdal (1968).