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One thing that doesn’t get much attention about #Hungary is that it not only ceased being a democracy.
But it also ceased being a market economy.
One thing that doesn’t get much attention about #Hungary is that it not only ceased being a democracy.
But it also ceased being a market economy.
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This applies not only to sectors like media, where the state is by far the largest buyer of commercials.
By the power of state capture, i.e. total political control of all state agencies except courts, fidesz can (and does) shape any sector‘s or firm‘s fate at its will.
This applies not only to sectors like media, where the state is by far the largest buyer of commercials.
By the power of state capture, i.e. total political control of all state agencies except courts, fidesz can (and does) shape any sector‘s or firm‘s fate at its will.
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Eg. it is a commonplace in Hungarian SME world that one shouldn‘t grow above a certain (moderate) size, otherwise, odds are that some „enterpreneur“ from the fidesz-orbit throws an eye on your business, and pays you a visit with a friendly offer to sell it at a very low price
Eg. it is a commonplace in Hungarian SME world that one shouldn‘t grow above a certain (moderate) size, otherwise, odds are that some „enterpreneur“ from the fidesz-orbit throws an eye on your business, and pays you a visit with a friendly offer to sell it at a very low price
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Those who refuse can expect to enjoy enhanced attention from various authorities, writing crippling fines and forbidding the firm‘s activities for various reasons, ultimately ending the firm unless the owner reconsiders.
If you‘re really big, they might even change the law.
Those who refuse can expect to enjoy enhanced attention from various authorities, writing crippling fines and forbidding the firm‘s activities for various reasons, ultimately ending the firm unless the owner reconsiders.
If you‘re really big, they might even change the law.
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Take ESMA, the leading provider of public advertisement on streets (lamp posts etc), with originally Spanish owners.
Fidesz in the early 2010s suddenly realized these advertisements are a dangerous distraction to car drivers and had them banned altogether by parliament.
Take ESMA, the leading provider of public advertisement on streets (lamp posts etc), with originally Spanish owners.
Fidesz in the early 2010s suddenly realized these advertisements are a dangerous distraction to car drivers and had them banned altogether by parliament.
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Thus the - overnight worthless - company came into the possession of István Garancsi, a prominent Orban-crony billionaire.
And hey presto, parliament made a U-turn, and the business was perfectly legal again.
This is just one example from an excessive list.
Thus the - overnight worthless - company came into the possession of István Garancsi, a prominent Orban-crony billionaire.
And hey presto, parliament made a U-turn, and the business was perfectly legal again.
This is just one example from an excessive list.
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The point is, the economy of Hungary does not have anymore a market mechanism at its core; the proximity to the ruler‘s court has become by far the most important factor of economic success - indeed not rarely the pre-requisite for survival as such.
The point is, the economy of Hungary does not have anymore a market mechanism at its core; the proximity to the ruler‘s court has become by far the most important factor of economic success - indeed not rarely the pre-requisite for survival as such.
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Even where bilateral relations between major players and the state resemble from afar that of consolidated democracies, the real reason is informal deals between senior management and the ruler, and not a functioning legal framework forcing the executive’s hand.
Even where bilateral relations between major players and the state resemble from afar that of consolidated democracies, the real reason is informal deals between senior management and the ruler, and not a functioning legal framework forcing the executive’s hand.
