Forming of new elites: the Hungarian case

Abstract

"Among the Central-East European transition countries the Hungarian economic trajectory seems to deviate from the others. The high state redistribution resulted in a malfunctioning welfare state. The existing level of state involvement is a consequence of the elite settlements of the early transition period. Privatization involved overwhelmingly foreign capital and avoided 'shock therapy'. Both policies have contingent effects on the existing elite configuration. An exploration of the economic elite identifies different segments with specific interests in state redistribution. The political and the economic elite have both evolved to coexist with a high disparity of incomes and a strong presence of foreign capital accordingly." (author's abstract)