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Hungary's U-turn in Kornai's system paradigm perspective: a case for national authoritarian capitalism

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  • Pierre-Yves Hénin

    (Université Paris 1 Panthéon-Sorbonne)

  • Ahmet Insel

    (Galatasaray Universitesi)

Abstract

In an article published in 2016, János Kornai proposes to add a third form of governance between democracy and dictatorship to his binary model of system paradigm. It is an autocratic capitalist system, marked by the dilution of the principle of the separation of powers in favor of a strongman and an institutionalized clientelism. This paper proposes to analyze Kornai’s third modality of economic and political organization in the context of national authoritarian capitalism (NACa), a variety of capitalism with more or less severe forms of authoritarian social control and mobilization of a nationalist culture. The main characteristics of NACa, of which Victor Orban's Hungary is a significant example, are outlined and the question of the stability of that form of government is raised.

Suggested Citation

  • Pierre-Yves Hénin & Ahmet Insel, 2021. "Hungary's U-turn in Kornai's system paradigm perspective: a case for national authoritarian capitalism," Public Choice, Springer, vol. 187(1), pages 235-245, April.
    • Handle: RePEc:kap:pubcho:v:187:y:2021:i:1:d:10.1007_s11127-021-00882-1
    DOI: 10.1007/s11127-021-00882-1
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    References listed on IDEAS

    as
    1. Jànos Kornai, 2000. "What the Change of System from Socialism to Capitalism Does and Does Not Mean," Journal of Economic Perspectives, American Economic Association, vol. 14(1), pages 27-42, Winter.
    2. Mehrdad Vahabi, 2018. "János Kornai and General Equilibrium Theory," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 68(supplemen), pages 27-52, January.
    3. János Kornai, 2016. "The System Paradigm Revisited. Clarification and Additions in the Light of Experiences in the Post-Socialist Region," Acta Oeconomica, Akadémiai Kiadó, Hungary, vol. 66(4), pages 547-596, December.
    4. Mehrdad Vahabi & Philippe Batifoulier & Nicolas Silva, 2020. "A theory of predatory welfare state and citizen welfare: the French case," Public Choice, Springer, vol. 182(3), pages 243-271, March.
    5. N/A, 2001. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 176(1), pages 35-60, April.
    6. Peter Bloom, 2016. "Authoritarian Capitalism in the Age of Globalization," Books, Edward Elgar Publishing, number 16254, December.
    7. N/A, 2001. "The World Economy," National Institute Economic Review, National Institute of Economic and Social Research, vol. 175(1), pages 29-58, January.
    8. J. Kornai, 2000. "Ten Years After "The Road to a Free Economy": The Author's Self-evaluation," Voprosy Ekonomiki, NP Voprosy Ekonomiki, vol. 12.
    9. Homi Kharas & Harinder Kohli, 2011. "What Is the Middle Income Trap, Why do Countries Fall into It, and How Can It Be Avoided?," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 3(3), pages 281-289, September.
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    Cited by:

    1. Mehrdad Vahabi, 2022. "In Janos Kornai’s memory," Public Choice, Springer, vol. 190(3), pages 265-271, March.

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    More about this item

    Keywords

    Authoritarianism; Democracy; Capitalist system; Nationalism; Comparative politics; Janos Kornai;
    All these keywords.

    JEL classification:

    • P17 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Performance and Prospects
    • P5 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems
    • Z1 - Other Special Topics - - Cultural Economics
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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