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Hungary and the Perspective on Sustainability

Kristina Onodi Krisztina Ónodi

Systems Consulting Ltd,
Budapest, Hungary

Member of the Hungarian Association of the Club of Rome


I would like to start with two quotations.

"Growing disparity in the distribution of wealth in society seems to be a blinding feature of the new economy. The rich become richer and the poor, poorer. It is reported that [. . . ] the best-off 50% of the population own 93% of the national income, in contrast to 7% earned by the other half. This is surely intolerable!"[1]

. . . and the second quote:

"In Hungary 30% of all declared income is in the hands of a few hundred people.’2 ‘This has become a country of 3 million beggars, people who do not have any chance at all, for whom life is only a question of survival."[2]

The first quote comes from Alexander King, one of the founders and presidents of the Club of Rome, and it refers to Great Britain. The second one is a brief description of current poverty in Hungary by sociologist Zsuzsa Hegedüs.

The EU did play a major role in the Energy Charter Initiative, started in the early 1990s, and it has signed the protocol. But Russia has not signed. So the Charter provides a useful arena within which to observe evolving energy policies.

Using the example of Hungary, I would like to illustrate how poverty, the condition of society in general and democracy are related to the perspectives for sustainable development.

What is the relationship between society and sustainable development?

"Besides ecological and economic sustainability, the idea of social sustainability can be formulated. If the dimensions of the three sustainabilities are connected, then the deterioration of one will affect the other two as well. We are talking about the framework defining the stability of the 3 systems. The unequal distribution or polarization of incomes, the decrease in the ‘real’ income of certain layers, the lasting and high rate of unemployment and the inequality of knowledge and education spoil the possibilities for the development of social sustainability. Poverty and social inequality are important inhibiting factors."[3]

In order to examine sustainable societies it is essential to examine the state of democracy as well

A sustainable society needs a strong democracy. In this kind of political system, the various social expectations and the processes necessary to attain them are accompanied by public debates involving the greatest number of people, for the longest possible time. In the various representative democracies these expectations are not met today.

In examining sustainable development in present-day Hungary, I would like to talk about democracy, the significant social gap, a few typical attitudes to life and the situation of civil society.

An evaluation of democracy in Hungary

Post-socialist democracy in Hungary fulfilled the obligatory tasks of transition, developed a modern market economy and carried out a seriously restrictive programme. But, in fifteen years, it has not been able to tackle the qualitative tasks of establishing a democratic policy and society, mostly due to the lack of a properly developed model or consensus. The next few decades will decide whether or not this twofold lack proves to be crucial. In any event, the accession to the EU has brought the period of transition to a close.[4]

What is the nature of Hungarian society today?

If we examine Hungary from the viewpoint of cohesion and convergence as defined by the EU, we may see that the country has split into two regarding the following aspects:

1.Social: the masses which have almost no hope for escaping poverty and catching up with others. Of these, 800,000 are starving and living under intolerable conditions, in so-called ‘deep poverty’, with the middle layer increasingly falling behind, in contrast with the elite enjoying high incomes and economic power. This is generally called a Latin American type of society;

2.Economical: on the one hand, there are strong, usually multi-national groups of companies, and, on the other, small and medium sized companies with hardly any opportunity to develop, stagnating almost to the point of bankruptcy;

3.Regional: backwardness is typical of most parts of the country.

Within the borders of the EU, the average rate of development is 75%. 70 regions do not attain this level, out of which six are located in Hungary.

The split in society

Up to 1988 social mobility functioned, albeit slowly. In consequence of the transformation, skilled workers lost their jobs. A large majority of the middle layer, relatively strong in the past, has been sliding downwards, or at least becoming marginal. These are small and medium sized businesses which are struggling to survive. They are not part of the modern world, which the small group at the top (approximately 15% of the society), have gained admittance to.

From 1990s onwards, income of the population gradually decreased. In 1995, the difference in the way of life between the rich and the poor was greater than in average Western European countries, approaching the extent of polarization found in Latin America.[5]

Taxes are a particular burden. According to an OECD report, an international comparison shows that Hungary had the highest taxes (69.5% per capital) in 2006. This is significantly higher than in Scandinavian countries which are much more developed and where, unlike in Hungary, a significant proportion of tax deductions are spent on social welfare. (Taxes in Austria are by 25% lower than in Hungary).[6]

Most difficult to win over for sustainable development are the so-called marginal groups, i.e. groups of population which are discriminated on the basis of certain criteria. They have very slim chances for having their needs and requirements satisfied by the society. They have hardly any chance to make social decisions. Their common characteristics are:
  • low or irregular income;
  • low level of communal solidarity;
  • deficiencies in socialization;
  • deficiencies in education.

The most significant marginal group is that of the poor, who are unable to satisfy their needs, cannot live their lives with dignity, are always struggling to survive, have a strong, subjective sense of poverty, and a pessimistic outlook on the future.[7]

A few characteristic attitudes to life in the Hungarian society

1. Crisis of trust and values

The latest end-of-the-century Forsense research into public opinion on social trust demonstrated that the average person has the least trust in politicians.

In addition ". . . in consequence of totalitarian and authoritarian political factors in the past decades, an increasing and serious alienation and anomie (mass violation of norms) have developed: increasing numbers of people felt helpless against external hostile forces shaping their lives; they were increasingly unwilling to observe the norms of social coexistence, among them rules of morality, for the values which upheld them had been shaken."[8]

2. Lack of solidarity

According to the latest assessment, even the unwritten rules of socially sensitive way of thinking have not yet developed in Hungary. The role of the state, developed during the communist period, is still prevalent and this ‘exempts’, so to speak, the private individual from any act of social solidarity. Within the middle layer, social solidarity is demonstrated as behaviour in accordance with norms and primarily takes the form of occasional donations. About 6% of the population regularly give support to those in need.[9]

3. Apathy

The Eurobarometer survey completed in November-December 2006 showed that amongst EU citizens aged 15+ Hungarians are particularly pessimistic about their present situation and their future. Hungary comes last in responses to this question: ‘Taking everything into account, can you say that you are happy?’ We are also the most pessimistic nation when we consider our perspectives for the next five years and our possible future impoverishment.[10]

The civil society in Hungary

"The bi-annual assessment of the Lisbon strategy pointed out that there is a lack of cooperation between civil society and the local authorities, as well as between the EU institutions, in developing regional and/or national future perspectives and in establishing development programmes; this has considerably contributed to the fact that these objectives have been achieved only partly or not at all . . . "[11]

The Lisbon strategy, resumed in 2005, involved a programme of ‘new partnership’ on all levels. In the interest of increasing civil activity, the focal points of the programme were: publicity, transparency and the reinforcement of participatory democracy ensuring local involvement as the primary initiator of development.

The formation of civil movements is, therefore, among the most important conditions for sustainability. Most of the first civil organizations and movements for environmental protection in Central and Eastern Europe were formed in late 1980s. They gained strength together with the political opposition of the time. The number of such organizations working in the region was approximately 2,500: around 900 in Hungary, 750 in the Czech Republic, 450 in Poland and 200 in Romania. They have an important role in asserting interests, especially in dealing with environmental conflicts.[12]

At present the role of civil society in Hungary concerning questions of sustainable development and environmental protection is largely determined by the main characteristics of our political culture: the predominance of centralization and the bureaucratic governance. At local levels of the institutional network, the local society could directly influence decisions concerning its own environment. In democratic countries, these are free of civil supervision to an immense extent and are not defenceless in the face of the central apparatus of government.

Our present institutions do not encourage the re-establishment of political activity in society as much as they should. The restoration of conditions for constitutional democracy has not reduced the distance between political institutions and society to the extent that was hoped for.[13]

The effect of the present situation in Hungary on democracy as a basis for sustainable development

A well-established democracy has a significant role in the success of sustainable development and in the extent to which the various layers of society are capable of identifying with the objectives of sustainable development.

Sociologists had already formulated the following conclusions regarding the period of 1989-1996: "Political and sociological investigations have led to the conclusion that we cannot be absolutely certain of the stability of the democratic system because there is much dissatisfaction not only with the market economy but also with democracy. An alienated and anomic society is clearly not capable of creating a modern market economy or running a democratic system in the right way."[14]

And, finally, a quote from a contributor to the conference entitled ‘The structure and relations of spheres of interest in Hungarian society today’, organized by the Hungarian Institute of Political History in 2007: "The changes that have taken place since the change in the political system have caused profound distortions in the structure of society; they have generated growing inequalities which are opposed to modernization. However, politics does not want to concern itself with social processes which endanger democratic change."

According to philosopher Dénes Kis: ". . . at this moment we need not fear for democracy because of the covertly or overtly authoritarian behaviour of the masses but because of the indifference and frustration which come up in the framework of a democracy developing in inadequate and random ways. Again, the consequences of this will, of course, be incalculable."[15]

Summary

Thus, what are the difficulties and dangers that arise from the present situation in Hungary and which also affect sustainable development?
  • The democratic deficit;
  • Extensive poverty arising from a Latin American type of polarization;
  • The underdevelopment of civil society;
  • A strong domination of negative attitudes to life.

On the level of national politics, the outlook for the future does not seem any brighter, either. According to an assessment by the Institute of Political History in 2006, there are no strategically formulated answers to the questions we could call ‘traditional’ concerning Hungarian society, or to questions arising since 1990, because any responsible search for answers has been swept under the carpet by interests created by the process of economic, political and social change in structures.

Despite this, what are some hopeful signs?

1. As a result of the present restrictive politics, organizations working to protect the interests of members of various professions have already got underway.

2. In September 2006 there was a call to form a National Civil Forum. According to the founding manifesto, the NCF would fulfil the role of an arbitrator and mediator to serve the collaboration of local communities, professional organizations and civil groups.

3. The National Sustainable Development Strategy was established in the summer of 2007.

4. From several viewpoints, perhaps the most hopeful sign is the headway made by Local Agenda 21 in Hungary. Irrespective of the nationwide inadequacies of participatory democracy, democracy and civil society can thrive in towns and communities. A system of requirements and accountability, which can be followed precisely, and the experience of the international network, could bring fast and spectacular results in the future on the level of local government.

Finally, some recommendations for research which can contribute to the renewal of CoR and to the development of a new strategy.

1. General questions:
  • Sustainable development and democracy;
  • Sustainable development and the state of society with special regard to poverty.
  • Sustainable development and civil movements;
  • How can the various groups in society with their differing interests be influenced to move in the direction of sustainable development?

2. In relation to Central and Eastern Europe, it is worth investigating what new questions and answers can be formulated in connection with sustainable development, arising from the more backward economic and social conditions there. How can they be used outside the countries of the region?

Rerences

[1] Alexander King, The scheme of things (curiously planned). . . Get-together / Teledialouge on 11 May 2007, (p. 9.)

[2] Hegediüs Z., Bedöglött a társadalom, 2005.12.14. www.radio.hu

[3] Farkas Péter, Egymásba kapaszkodva. Település és közösségfejlesztés a globalizáció korában. L’Harmattan Kiadó 2006. pp. 188,(p. 52.)

[4] Kiss Endre, Az ígéret földje elöotti sivatag (A magyarországi átmenet föo perspektívái) pp. 49-61. In: Magyarország az új Európában. Friedrich Ebert Stiftung, 2004/3, (p. 49.)

[5] Farkas Péter, Egymásba kapaszkodva. Település és közösségfejlesztés a globalizáció korában. L’Harmattan Kiadó 2006. pp. 188, (p.48.)

[6] Magyar köztehercsúcs. Magyar Nemzet, 2007. 02. 26.

[7] Farkas Péter, Egymásba kapaszkodva. Település és közösségfejlesztés a globalizáció korában. L’Harmattan Kiadó 2006. pp. 188, (p. 165.)

[8] Magyarország a legújabb társadalomtudományi kutatások tükrében, 1996. 51. www.sulinet.hu

[9] Marketing Centrum felmérése. Magyar Nemzet, 2007. 06. 13.

[10] Rekordapátia, kilátástalanság és rossz elöoérzetek. Magyar Nemzet, 2007. 03. 02.

[11] Ugrin Emese, A részvételi demokrácia, mint az organikus államszervezés modellje. Polgáris szemle, 2006. 03. 2. évf. 2. 2005-2006, Polgári Szemle Alapítvány, Budapest, (p. 5.)

[12] Szirmai Viktória – Szépvölgyi Ákos, A fenntartható fejlödés lehetöoségei Kelet-Közép Európában. 2/13 2004. 04. 01. www.regi.ahet.ro

[13] Lányi András, A fenntartható társadalom. L’Harmattan Kiadó, 2007,(p. 24.)

[14] Magyarország a legújabb társadalomtudományi kutatások tükrében, 1996. 51. www.sulinet.hu

[15] Kiss Endre, Az ígéret földje elütti sivatag (A magyarországi átmenet föo perspektívái) pp. 49-61. In: Magyarország az új Európában. Friedrich Ebert Stiftung, 2004/3, (p. 59.)

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