Tag Archives: József Péter Martin

Hungary has been steadily becoming more corrupt

Here we go again. Transparency International’s (TI) 2016 report has been published and, as usual, the message to the Hungarian government was not complimentary. Hungary’s rating dropped under the psychological level of 50, coming in at 48 points. Of the 28 member states of the European Union, Hungary is one of the five most corrupt. Hungary is tied with Romania. But while the Romanians’ efforts to curb corruption have propelled the country to increasingly better scores since 2013, Hungary’s numbers have been declining since 2012, when its score was 55. Admittedly, corruption in Italy, Greece, and Bulgaria are even greater than in Hungary, but surely that is no reason to rejoice, especially since outside of Europe Hungary is in the company of countries like Jordan, Cuba, Saudi Arabia, Montenegro, and Oman. The most detailed analysis of the part of the report that concerns Hungary was published in napi.hu.

In the introduction to the report, the editors emphasized that “this year’s results highlight the connection between corruption and inequality, which feed off each other to create a vicious circle between corruption, unequal distribution of power in society, and unequal distribution of wealth.” They further stressed that “the interplay of corruption and inequality also feeds populism. When traditional politicians fail to tackle corruption, people grow cynical. Increasingly, people are turning to populist leaders who promise to break the cycle of corruption and privilege. Yet this is likely to exacerbate—rather than resolve—the tensions that fed the populist surge in the first place.” In the wake of Donald Trump’s victory, Transparency International published a detailed analysis of “Corruption and Inequality: How Populists Mislead People.”

The reason that I called attention to TI’s emphasis on populists who after acquiring power become themselves beneficiaries of corruption is because it seems that the Orbán government has taken TI’s severe criticism of populist duplicity as proof of its disapproval of their own system. At least this is what I sense from reading Magyar Idők’s touchy reaction to TI’s references to populism and corruption. Clearly, the government was mighty upset over the direct references to Hungary and Turkey, where after the introduction of populist-led governments corruption grew substantially.

Magyar Idők tries to make light of the changes in Argentina where, according to the article, “after the fall of the populist government, miracle of miracles, thanks to the blissful activities of the new liberal leadership the corruption situation has improved.” I assume that no one who is familiar with the Hungarian government’s truthfulness will be surprised to learn that this is not at all what TI’s report said about the Argentine situation. TI reported: “Recently elected President Pauricio Macri said in his inauguration speech that he ‘will be implacable with corruption.’ He has made the fight against corruption a top priority for his administration. In order to fulfill this promise the new government must urgently implement laws and reforms to improve transparency, accountability, and oversight of public institutions.” A far cry from Magyar Idők’s version.

And while we are on the topic of the Orbán government’s fabrications, we might as well point out another falsehood in the very same article. According to Magyar Idők‘s headline, Transparency International is “Soros’s organization.” It is true that in the body of the article this claim becomes less categorical. There the paper describes TI as an organization that is “also supported by George Soros.” So, I became curious about the financial backers of TI. I can assure you that the list is very long. It begins with a large number of government agencies, like the Department of Foreign Affairs and Trade of Australia, the German Foreign Office, Foreign and Commonwealth Office (UK), and the US Department of State. (I wonder how long Trump’s State Department will contribute to TI. I have the feeling not for long.) There are also several multilateral institutions that support TI, like the European Commission and several offices of the United Nations. Ten foundations support TI, among them–yes–Soros’s Open Society Institute Foundation and the Open Society Initiative for West Africa. In addition, five corporations, including Siemens, Shell, Ernst & Young, and PriceWaterhouseCoopers, are contributors. So much for TI being Soros’s organization.

The Orbán government pretends that it doesn’t take TI’s report seriously. How can TI dare to pass judgment on Hungary year after year when they themselves, “as we learned from Szilárd Németh,” are afraid of transparency? How can anyone believe TI’s reports when “left-liberal leaders of the financial elite praise” the World Bank’s efforts at curbing corruption? “Is it possible that these people take part in discussions where Christine Lagarde, who narrowly escaped her scandalous corruption case, is also present?” Moreover, the article gleefully says, Zoltán Kovács, the government spokesman, was on target when he pointed out that Transparency International never bothered to unearth the rampant corruption that existed during the socialist-liberal governments prior to 2010.

Of course, Zoltán Kovács, as is his wont, didn’t tell the truth. Already in 2008 TI was talking about the growth of “institutionalized corruption in Hungary,” although at that point it considered “bribery more as a byproduct of democracy rather than its fundamental characteristic.” In fact, both Mihály Varga, minister of national economy today, and Viktor Orbán, then leader of the opposition, quoted the report of Transparency International as proof of the existence of rampant corruption in Hungary. Orbán learned from the report that “Hungary loses 200 billion forints every year due to the corruption that exists in public procurement cases.”

József Péter Martin, executive director of Transparency International Magyarország (TIM), called attention to the harmful effect of corruption on the national economy. He noted the significant overlap between the most competitive countries and the least corrupt countries. Similarly, corruption and reduced competitiveness are often correlated. Even as Hungarian corruption has increased, the country’s competitiveness has been sliding in the past few years. In 2001, Hungary was twenty-first on the list of the World Economic Forum. Today it occupies the sixty-ninth place.

But never mind, the Hungarian government has no incentive to clamp down on corruption, since its politicians and friends are the main culprits. The mafia state is doing well.

January 26, 2017