Monday, March 13, 2006

Considerations about Hungary and Communism:

Fact is that Hungary used to be a communist country until 16 years ago. While this country was supposedly the most Western of the former Warsaw Pact, with the most liberalitzed markets already in the 1980’s, I find that there are still a lot of signs of communism in this area of the world:

1. Employment and Efficiency: During communism there was almost full employment. The only unemployment was mainly structural and was always a very low percentage. After 1990, when Hungary became a Democracy, this was no longer guaranteed. Unemployment rates soared due to many reasons I will explain at a later point. Nowadays, however, I find that there is still, what we call in German ‘Künstliche Arbeitsbeschaffung’. This means that, for example, in a supermarket, you have 10 people employed, two cashes are served, 50 people are standing in line and 8 employees make sure that the flour is appropriately placed. This also means that railway workers are usually found in large groups where no one is doing any real work – unless having a cigarette and talking on a cell phone is considered work. This finally also means that your tickets are checked in each and every subway station on a daily basis. Of course, people are employed and earning money – but I believe that many Hungarian companies have never heard about efficiency.
2. Run-Down Buildings: I take the train quite a bit through the countryside, as I go to Austria from time to time. Especially along the shores of the Danube I notice that many old manufacturing plants are totally run-down, windows are knocked in and the places are completely abandoned. Because of the fast ‘revolution’ that occurred in Eastern Europe in the early nineties, formerly protected industries were now exposed to competition from very strong and successful European and American companies. They usually had no chance of survival and closed down within a few years. This is also, why unemployment was so high immediately after the turn.
3. Reconstruction: Budapest has been pretty much rebuilt and renovated. After all, it is now considered one of the most beautiful cities of Europe – and I totally agree with it. Yet when you leave the tourist areas you find many old, run-down places, graffiti everywhere, dirty facades, and a ton of homeless people. Quite frankly I sometimes think that the restructuring and renovation of this city was mostly done to attract tourists, but not to provide a better living for people.
4. Business: Here you can still use many unorthodox and unethical marketing practices. Misleading Marketing is very common and totally accepted. That’s something consumer protection and competition laws would never allow in any other Western country. Examples also include spamming with flyers – everywhere in the city you are almost being bombarded with flyers! Amazing! Do people here not understand that this isn’t even an effective marketing practice???

Well... these are some points I could spontaneously think of during my three-hour train ride to Vienna. I am certain that I will come up with many more as my semester in Hungary continues.

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