Abstract
The previous chapters highlighted two crucial social dynamics behind the retreat of liberal democracy: the countermovement of the working class and the national bourgeoisie. Fidesz used this opportunity to rearrange the dominant power bloc by incorporating national capitalists. This chapter empirically analyses how the post-2010 accumulative state props up capital accumulation and how these new instruments affect various factions of the business class. The accumulative state fell short of a developmental state and so far failed to enact long-term industrial upgrading and reverse economic disintegration. The new accumulation strategy boosted precarious employment and reduced financial vulnerability at the price of increased inequality and weakened social, education and health policies. The chapter concludes that the two-pronged authoritarian strategy of the new regime combining institutional authoritarianism and authoritarian populism is in part a response to the social conflicts generated by the new accumulation strategy.
This chapter is a substantially revised, longer version of an article published in Geoforum (Scheiring 2019a).
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- 1.
‘Savings and Credit Cooperatives’ by their full name, elsewhere also called credit unions, savings and loan associations, building societies or mutual savings banks. Until the early 2010s, 260 Savings and Credit Cooperatives existed and worked in Hungary, the number of its members was about two million (Moizs and Szabó 2016).
- 2.
Fifty billion forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2018.
- 3.
From July 2017, the advertisement tax was raised from 5.3% to 7.5% for taxpayers with sales revenues from advertising exceeding $364,000 (100 million forints, converted to dollars using the World Bank’s official exchange rate [LCU per US$, period average] for 2018).
- 4.
There are other forms of subsidies, such as tax exemptions; these figures cover only the subsidies that are part of the Special Government Decisions (‘Egyedi Kormányzati Döntések’, EKD).
- 5.
The dollar values reported in the Geoforum article (Scheiring 2019a) were calculated using the exchange rate on 5 December 2018 (1US$ = 285 forints), while the dollar values reported here are calculated using the annual average exchange rate at the end of the two periods (2010 and 2018 subsequently).
- 6.
An amount of 130.2 billion forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2010.
- 7.
An amount of 346.8 billion forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2018.
- 8.
An amount of 127.3 billion forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2010.
- 9.
An amount of 2.9 billion forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2010.
- 10.
An amount of 263.2 forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2018.
- 11.
An amount of 83.6 billion forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2018.
- 12.
An amount of 1700 billion forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2017.
- 13.
- 14.
An amount of 22,800 forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2018.
- 15.
Ten million forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2018.
- 16.
Ten million forints, converted to dollars using the World Bank’s official exchange rate (LCU per US$, period average) for 2018.
- 17.
The amount refers to individuals with average income without children, perceived by the OECD as a reference category.
- 18.
However, the two should at least be approximately equal. There was a strong correlation between the two before 2010, but after 2010 they began to diverge (portfolio.hu 2018).
- 19.
The number of people below 40% of the median income has grown even more rapidly in Luxembourg.
- 20.
The jump in 2012 in every country is a result of the eurozone crisis, when Hungary’s economy shrank by 1.6%.
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Scheiring, G. (2020). The Accumulative State. In: The Retreat of Liberal Democracy. Challenges to Democracy in the 21st Century. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-48752-2_7
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