István Bibó

András Schweitzer: Factors that made Hungary a borderline democracy (and are likely to stay)

András Schweitzer is a journalist who has been working for HVG since 1999. Currently he is on leave of absence. Since June 2013 he and his family have been living in Brussels.

In addition to being a journalist he is also scholar with a Ph.D. in political science who is currently working on completing a second Ph.D. in history. For a number of years he has been involved with a historical research project for the 1956-Institute.

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According to the official rhetoric, the profound constitutional and political restructuring by the second Fidesz government (2010-2014) aimed to put an end to two decades of post-communist meandering and to finish off the remaining legacy of state-socialism. However the actual legal and economic changes constitute more an illiberal turn back to the bad old days. Of all the countries that joined the West in the Annus mirabilis of 1989 Hungary returned to exist again in history in the Fukuyama sense.

It is logical but inadequate to blame the global financial crisis for this unfortunate chain of events. The corruption of the Hungarian democratic political and market-oriented economic system had already been going on years before it. The dramatic transformation should instead be attributed to the following factors.

1. As an unfortunate coincidence the Hungarian democratic opposition did not have a single outstanding politician comparable to Czechoslovak Václav Havel or Polish Lech Walesa when the Wall fell.  István Bibó, a brilliant scholar and deeply convicted democrat (the once spirited state minister of the Imre Nagy government in the heroic days of 1956) could have been such a character acceptable to all main dissident groups – but he died a decade too early. Of the sizeable pool of dissenters, Machiavellian and confrontational Viktor Orbán happened to be the most talented and ambitious, who managed to politically survive the last quarter of century by being both harsh with the opponents and attentive to popular expectations. He showed signs of wanting to concentrate political and economic power in his hands already after he had first become prime minister in 1998, but it was the two-third majority between 2010 and 2014 which made it achievable for him.

2. Skepticism is a widely prevalent attitude in Hungary and yet voters have always showed affinity for political illusions. Research shows that the correlation between the level of government spending and the election cycles in Hungary is significantly higher than in other East-Central European countries. Elections have increasingly become promise-contests where honest players (at the beginning Fidesz included) had no chance to win. Politicians had to learn this lesson or leave the scene. After winning with excessive election pledges in 2002 and 2006 the Socialists found themselves in a difficult position: first they tried to be true to their promises and accumulated a budget deficit reaching 10% of the GDP, then after the 2006 elections, when this was no longer feasible without an immediate financial crisis, Ferenc Gyurcsány admitted he had lied about the state of the economy and introduced tough austerity measures. This became an important reason for the increasing popularity of Fidesz.

3. Despite all the good intentions and creative solutions at its crafting, the complex election system of 1989 was unfit for Hungary. In a country where people tend to vote for candidates mostly according to their party affiliations and where there are no significant regional differences in voting patterns even the party list leg of the system and the additional compensation list could not guarantee proportionality. In a single party list system, which would be the proper alternative for Hungary, Fidesz would have won a simple majority of just over 50% in 2010, but the actual electoral system transformed this into a two-thirds win which is the legal limit to changing the constitution. The new rules made the 2014 election results even more unproportional: with more weight given to the first-past-the-post leg the system guaranteed about two-thirds of the seats to Fidesz with less than 50 percent of the votes. (It is typical of the relatively uniform Hungarian voting behavior that in a Westminster-style system Fidesz would have had a 98% majority in the 2010-2014 parliament as its candidates won in 173 out of 176 districts. The election result of last Sunday showed a similar pattern of homogeneity: with the exception of a few electoral districts in Budapest, Miskolc and Szeged the whole country turned orange again.)

4. Liberal democracy and free market economy did not produce a general sense that things are looking up as a result of economic reform (which would have been a necessary ingredient of the success of transformation according to the insightful prophesy of Ralf Dahrendorf), and there has been an illiberal downslide in public opinion. The failure of half-implemented liberal policies was used as an argument against liberal ideals. It was claimed that “neoliberal” openness and privatization resulted in foreign intrusion and the cheap selling out of the country’s wealth; tolerance increased crime; multiculturalism endangered the country’s cultural character; preference for market mechanisms brought unemployment and oligarchs; protection of civil rights brought inefficient government. Capitalizing on and enforcing this sentiment, left and right political groups sometimes joined forces in measures to undermine the third (liberal) power block, which practically disappeared by 2010.

"In the footsteps of our fathers" / Magyar Narancs

“In the footsteps of our fathers” / Magyar Narancs

5. Unlike the short 20th century Czech history, which could be schematized as the interwar democratic “good guys” being followed by the communist “bad guys” Hungarian heavy weight political leaders of the era – Miklós Horthy and János Kádár – are both controversial figures. Numerous Hungarians tend to forgive the interwar governor for being complicit in the extermination of hundreds of thousands of Jews by claiming that he resisted deportation until the German occupation, which, in turn, didn’t leave him much choice. Many exonerate Kádár for his crimes as a communist dictator by emphasizing that he managed to construct the “happiest barrack” in the Soviet camp. As opposed to the Polish, the Czech or the Slovak context, Hungarian history lacks the heritage of a wide scale popular anti-fascist movement, and the revolutionary fever of 1956 also faded with the subsequent decades of a relatively mild dictatorship. A democratic role model is generally missing from Hungarian political consciousness. Horthy gained legitimacy by being the admiral of the nation who held the steering wheel of the Hungarian mothership against a sea of powerful enemies (even if the nation suffered a devastating defeat at the end). Kádár was made popular by providing welfare to the widest possible masses (even if this led to a crippling debt burden by 1989). Already the first democratically elected government capitalized on the earlier dormant nostalgia for the Horthy era, which has steadily grown stronger ever since, while Socialists never dared to dissociate themselves from widely popular János Kádár.

6. The Inglehart–Welzel Cultural Map of the World based on findings of World Value Survey reveals a remarkable cultural pattern: of all the countries of “Catholic Europe” (other ex-communist states like Lithuania, Poland, Slovakia included) Hungary scores the highest on having  “survival” instead of “self-expression” values. This puts the country the furthest away from leading democracies of “Protestant Europe” and the “English-speaking” world and the closest to Serbia, Albania, and Macedonia. Survival values are indeed reflected in prevalent ideas of Hungarian political life: yearning for economic paternalism instead of a free market (stemming from the existential fear of individuals) and ethno-nationalist sentiments instead of tolerance (stemming from the collective existential fear of the nation). Kádár’s ways to gain legitimacy well fits the former whereas those of Horthy go hand in hand with the latter.

7. Sixteen years ago it was Hungary’s northern neighbor, Slovakia that was generally considered to be a laggard among the transition nations of East-Central Europe, with a populist unchecked majority rule in an unconsolidated democracy. At that time however the fear that Slovakia would be left out of NATO and EU enlargement served as a wakeup call to the people who in the 1998 elections ousted Vladimír Mečiar’s authoritarian-populist government. Unfortunately, lacking similar incentives, the equally strong signals from Western democracies to Hungary don’t seem to have a substantial effect. While numerous Hungarian individuals contributed greatly to world civilization (usually after emigrating from the country) the wider public has traditionally been quite inattentive to the outside world. Hungary is perceived by many to be an island in the German, Latin and Slavic seas, a feeling reinforced by the living grievances of the post-WWI events when Hungary lost two-thirds of its historic territory and more than 3 million ethnic Hungarians found themselves in foreign countries. The so-called Trianon-tragedy is usually blamed on disingenuous neighbors and conspiring great powers. The island feeling is also existent on the individual level: surveys have for decades shown an extremely high level of individualist sentiment and low-level of trust among Hungarians which hampers effective social cooperation.

Between 2010 and 2014 Orbán’s government created a peculiar system, which could be called a borderline democracy. It walks the rope of taking all possible undemocratic measures to ensure its power (from gerrymandering through concentrated denigration campaigns to limiting free press) while at the same time trying to maintain all the formal legal criteria of democracy. In order to produce laws that serve its political interests but don’t contradict EU legislation it collects and connects “worst practices” from other European countries (to use a term EU-expert Györgyi Kocsis used in early 2011 about the new media law). Having changed the electoral system to its liking, having filled political posts with friends and clients, having an overwhelmingly friendly media, it had a remarkably wide array of potential measures to ensure its decisive win at the 2014 elections. It must be noted however, that even if the democratic left had won in 2014, this would not have meant a quick return to democratic normalcy. Instead, the political fight and cold civil war that characterized the years 2006-2010 would have come back.

During the last 25 years politicians on the left and right have learned the lesson of being popular by being populist. As liberal parties were disappearing incumbents have managed to gain an ever greater pool of supporters. Orbán’s 2014 victory is the second time in a row (after the 2006 narrow win of Gyurcsány) when a party and a prime minister were given a second term. Orbán’s government successfully combined Kádár’s and the Horthy’s approaches to gain support – its actions and rhetoric were at times more socialist than those of the Socialists and more nationalist than those of the nationalists. It also managed to bleed out its opponents on the left and on the right by a thousand cuts (from discovering and publicizing awkward information about their politicians through starting legal procedures against them to strictly limiting their channels to address a wider audience or even to collect and use campaign money) but its voter base diminished since 2010 nevertheless. In the future more resources may be needed to successfully apply similar techniques, therefore further political and economic centralization and an increase in the confrontational rhetoric is likely to come in the run up to 2018.

Written on October 27, 2013, updated on April 7-8, 2014

The sources of Viktor Orbán’s ideas on the world economy

Practically everything that has aroused my interest in the last couple of days is connected in one way or the other to Tusnádfürdő/Baile Tusnad or, as the organizers call it, the “free university” Tusványos. It is a made-up word. Originally, these gatherings were held in Bálványos/Cetăţile Păgânilor, but the festivities over the years have grown so much that they had to move to Tusnádfürdő. Hence the name.

I wrote a couple of times about a commentator who calls himself Elek Tokfalvi, a mirror translation of Alexis de Toqueville. He is an erudite fellow and a sharp-eyed observer of political developments. This time Tokfalvi found a sentence in Viktor Orbán’s speech at Tusványos that prompted him to do a little research. The sentence followed Orbán’s running commentary about the great powers and their exploitation of the smaller ones on the periphery. The sentence reads: “Jenő Szűcs, an author who was very much in vogue about twenty or twenty-five years ago, wrote about this very clearly when he put together a popular treatise on the centers of the world economy and their peripheries.”

I myself didn’t catch this particular sentence when I listened to Orbán’s speech but I sure got a shock when I saw it in print. First, Jenő Szűcs was a historian of Hungarian medieval history who didn’t “put together” popular works. In fact, I clearly remember when I bought one of his works in Hungary and showed it to my father. His first reaction was that Szűcs’s style was so “scientific” that it took mental effort even for a well read and intelligent man like my father to comprehend what the slim volume was all about. I think the title itself is telling: A nemzet historikuma és a történetszemlélet nemzeti látószöge (hozzászólás egy vitához) (History of the nation and the national vision of the view of history, remarks to a debate). His works were appreciated by his colleagues but “in vogue” he was not.

Then there is the problem of dates. Jenő Szűcs died in November 1988, so he couldn’t have written anything twenty or twenty-five years ago. Orbán might conceivably have referenced an article Szűcs wrote in 1980 in the samizdat volume published in honor of István Bibó. The title of the article was “Vázlat Európa három történeti régiójáról.” A year later it also appeared in Történelmi Szemle. But the “Sketch of the three historical regions of Europe” had nothing to do with great centers of the world economy or their peripheries. It was an attempt to portray the region lying between Eastern and Western Europe as a distinct entity that has been different for at least the last thousand years. I for one don’t think that this was a revolutionary discovery, but Hungarian historical circles were impressed.

So, if Jenő Szűcs wasn’t Orbán’s source, who was? Tokfalvi suggests Immanuel Wallerstein, an American Marxist “sociologist, historical social scientist and world-systems analyst.” Apparently in the 1970s Wallerstein was not only translated into Hungarian but very much appreciated by the party leadership. He called the satellite countries “half peripheral” because he saw their centralized planned economic policies as vehicles of true convergence. Thus Wallerstein gave his stamp of approval to the totally mistaken economic policies of the socialist countries. Tokfalvi thinks that Wallerstein is the most likely candidate for Viktor Orbán’s Jenő Szűcs “in vogue.”

Over his career Wallerstein adopted some basic Marxist doctrines: the dichotomy between capital and labor and the view that world economic development is a dialectical process that goes through such stages as feudalism and capitalism. He believes in something called “dependency theory,” which leads straight to the notion that resources flow from a periphery of poor and underdeveloped countries to a “core” of wealthy states, enriching them at the expense of the poor countries. He is one of the leading figures of the anti-globalist movement.

Source: wikipedia.org

Source: wikipedia.org

It is becoming increasingly obvious that Viktor Orbán and his college friends are truly the children of the late Kádár period, together with all its ideological baggage. Orbán, when he espoused Wallerstein’s theories at Tusványos, must have noticed that he was flirting with Marxist clichés and felt compelled to preface this particular passage about “the core and the periphery” with the claim that he is not a “vulgar Marxist.” Even his stress on the value of labor that produces only tangible products is suspect. It might be a less than a perfect understanding of Marx’s labor theory. I wouldn’t be at all surprised if that were the case because I know from personal experience as well as from the stories of others that Hungarian college students didn’t take their compulsory course on “political economy” very seriously.

This discussion will be a good introduction to a book review I have been planning to write on a new book by János Kornai called “Gondolatok a kapitalizmusról” (Thoughts on Capitalism). Included in this volume is an essay entitled “Marx egy kelet-európai értelmiségi szemével” (Marx through the eyes of an Eastern European intellectual.” The very last sub-chapter’s title is “Ami tovább él Marx tanaiból” (What still lives from the teachings of Marx).  Certainly not what Viktor Orbán is talking about.