The ‘Strong State’ Paradigm: Good Government and the State in Central and Eastern Europe – Why Do We Need a Stronger State?

Abstract

This chapter argues that society’s welfare and social needs have not been addressed in a balanced way in Hungary since its political transformation. A systemic reappraisal of the state’s functions, its provider roles, the organisation and regulation of the economy, has not yet been carried out; and there is no equilibrium between the pillars of the welfare state. In other words, there has been a lack of harmonious cooperation between the markets, the state and families during the last 18 years as well as the preceding period. In the author’s opinion, this lack of equilibrium has resulted in a series of social and fiscal crises. Today it is clear that both the diagnosis of market logic and the therapy it offered have failed. They have failed on the level of principles, because if market logic is made absolute, it is not capable of providing the conditions of welfare, solidarity, fairness and cooperation for everyone. And they have failed on the level of practice, because the global economic crisis has shown the flaws of neo-liberal principles on the basis of facts. The neo-liberal agenda’s failure on the levels of principle and practice has made it clear to everyone that there is a need for an active, intelligent and strong state that considers again and again where its duties are. In other words, the state must adjust the market’s mechanisms—in everyone’s interest, even the market’s own interest, too. But instead of an active, strong and intelligent state we are witnessing an impotent, over-stretched and corrupt state that makes its citizens distrustful. A weak state and poor government performance cannot be explained only by external reasons (e.g., ‘prosperity’, unfavourable world economic processes, the global economic crisis, etc.). Rather, a significant part of the problemlies in the quality of the governing itself, namely in governmental practice that is dysfunctional, that misunderstands the nature of problems and follows short-term individual or political party interests. In other words, the deterioration of the state is the necessary consequence of bad governing. The remedy follows from the identification of the problem: the reinforcement of the state is necessary for the creation of conditions for good governing.

The research presented in this chapter has been supported by OTKA F-68112.