Eastern bloc is leery of capitalism
Hungary has been feeling bitter about free market capitalism based on the way the West is handling the economic downturn. And other Eastern European countries share the sentiment. Stephen Beard reports.
Hungary's national flag waves over Budapest (Attila Kisbenedek/AFP/Getty Images)
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TEXT OF STORY
Scott Jagow: Let's say you've been appointed finance minister of a brand new country. You get to choose your economic model. With everything that's happened in the past few months, it'd be pretty hard to pick free market capitalism, wouldn't it? With that in mind, consider the plight of the former Eastern bloc countries of Europe. Stephen Beard has our story.
Stephen Beard: In his home overlooking the Hungarian capital, Budapest, opposition politician Jozsef Torgyan claims his country is in a bitter mood:
Jozsef Torgyan (voice of interpreter): Hungarians feel today so bad, they feel so unhappy. That have never felt so bad during their whole history, I would say.
Bailed out by the IMF, and sliding into recession Hungary has been brought to its knees by debt, says Torgyan. Having overthrown communism 20 years ago, Hungary has swapped one tyranny for another.
Torgyan (voice of interpreter): Russian tanks left, but foreign banks came. That banks even robbed us more than those Russians who stayed here.
That claim sounds bizarre in a country where living standards have soared. But analyst Kristian Szabados says there is a growing distrust among Hungarians of free market economics.
Kristian Szabados: They are absolutely afraid of the market. They are absolutely afraid of competition. Even the young generations think that, if I personally have a problem, I must turn to the state to solve it.
He says that sentiment is spreading throughout eastern europe. Even in Slovakia, a big free market success. Journalist Anca Dragu says Slovaks have been turned off by the inequality of American capitalism.
Anca Dragu: They just see, oh, that guy got millions, has a luxurious villa. And poor people were laid off now and they have hard time finding a job. This the part of capitalism that they don't like.
With free market reforms reducing the role of the state, much of Eastern Europe was catching up with the West. But that could come to a halt, says Tomas Valasek of the Center for European Reform in London.
Tomas Valasek: The population is turning away from the free market, liberal capitalist systems. It was doing that before, but the crisis is going to accelerate the trend.
Valasek says that's not surprising After all, he says, just look at the West. After preaching the virtues of balanced budgets and privatization, we're now running up record deficits and greatly expanding the role of the state.
This is Stephen Beard for Marketplace.
Comments
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From Houston, TX, 12/19/2008
Mr. Beard says that standard of living in Hungary have soared (since the overturn of the Socialist system)and 'no one' would ever want to return to the Socialism of fore.
What a statement.
While everyone that I could think of, would return to the previous Socialist System in a minute -- after the fraud and false promises of Capitalism; even I would never make such a sweeping, arrogant statement as Mr. Beard does in his perfect Queen's English--about conditions and attitudes of the public in Hungary.
As to where he gets the gall to make such a sweeping false statement,? ...well
we all know that the information that we get in the West is 'free'. After all we have been told that from the moment we are born.
Mr. Beard; I am sure that the Queen sitting in her Palace will be pleased with your report.
But, not the millions of forgotten, suffering ordinery people who are sacrificed daily on the altar of Capitalism's misery.
From Budapest , Hungary, 12/18/2008
I agree with Zoltan Molnar and Akos Beres but ont the other hand there is my question : is it "free market" what we got in Hungary ? How can anybody expect to defend himself a rabbit against a lion , saying “ now you are free “ ?
About Kristian Szabados: “[ the hungarians ] are absolutely afraid of the [ free ( ?????) ] market …….. “.
Mr Szabados :Have you ever been fighting with a lion , just to feel the “ freedom “ ?
How can anybody expect to defend himself a ( rabbit ) Hungarian small entrepreneur against a huge multinational company ?
And here I agree with the 1st commenter Fritz Groszkruger
From Nashville, TN, 12/17/2008
Completely agree with the 1st commenter: Akos Beres. Mr.Torgyan cannot possibly be called an "opossition politician". He's got no party at all, nor is an MP anymore.
From Minneapolis, MN, 12/16/2008
I would like to point out that Mr Torgyan is a very contraversial political figure in Hungary due to his extreme views. Even though things are not rosy in Hungary, please take his comments with caution and listen to some other comments as well.
From Dumont, IA, 12/16/2008
We have not had "free market capitalism" in the United States,at least, since the creation of The Fed in 1913. To explain that statement: free market capitalism would entail each person controlling their own property. The Fed, in altering monetary policy, takes that right away and gives it to whoever is recieving the below market funds. The ills suffered by former communist countries come from continued government controlled economies descibed erroniously as "free market." To not make this clear presents a false view and does not contribute to the goal of a prosperous world.
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