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The Post‐Socialist Growth Machine: The Case of Hungary

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  • LASZLO J KULCSAR
  • TAMAS DOMOKOS

Abstract

When the concept of growth machine was created more than twenty years ago, it seemed unlikely that it would ever reach Eastern Europe. Now, about fifteen years after the beginning of the post‐socialist transformation, the growth machine is also part of urban politics in the former socialist countries. This article will try to fill a gap in growth machine research, examining this concept in a post‐socialist environment through the case of Hungary. The concept of growth machine is based on a powerful argument about a coalition promoting economic growth, and shows considerable flexibility around the Western world. Although in post‐socialist Eastern Europe the interlocked political and economic power accumulation is the same, there are significant differences both in terms of the composition and operation of the growth machine. The Hungarian example shows that the post‐socialist growth machine is strongly shaped by the socialist legacy of the region. Its operation is also influenced by the elite transformation after the collapse of socialism and the presence of powerful external actors, like the nation state or transnational investors. Moreover, the contemporary social context is very supportive, since the political and economic interests are closely connected and the counter‐movements are relatively weak. We develop a theoretical framework, supported by examples of urban development in two Hungarian cities that offer interesting differences in their political and economic environment. Lorsque le concept de machine de croissance a été créé il y a plus de vingt ans, on pouvait douter qu’il touche un jour l’Europe de l’Est. Aujourd’hui, environ quinze ans après le début de la transformation post‐socialiste, la machine de croissance y fait aussi partie de la politique urbaine. L’article tente de combler les lacunes dans la recherche sur la machine de croissance en étudiant ce concept dans l’environnement post‐socialiste au travers du cas de la Hongrie. Basé sur un argument décisif relatif à une coalition encourageant la croissance économique, le concept présente une souplesse considérable au sein du monde occidental. Même si, dans l’Europe de l’Est post‐socialiste, l’accumulation imbriquée de pouvoir politique et économique est semblable, d’importantes différences existent à la fois en termes de composition et de fonctionnement de la machine de croissance. L’exemple hongrois montre que la conformation de la machine de croissance post‐socialiste doit énormément à l’héritage socialiste de la région, De plus, son fonctionnement est influencé par la mutation des élites après l’effondrement du socialisme et par la présence de puissants acteurs extérieurs tels l’État‐nation et les investisseurs transnationaux. En outre, le contexte social contemporain est très favorable, puisque les intérêts politiques et économiques sont étroitement liés et les mouvements d’opposition relativement faibles. L’article élabore un cadre théorique, étayé par des cas d’aménagement urbain dans deux grandes villes hongroises présentant d’intéressantes différences dans leur environnement politique et économique.

Suggested Citation

  • Laszlo J Kulcsar & Tamas Domokos, 2005. "The Post‐Socialist Growth Machine: The Case of Hungary," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 29(3), pages 550-563, September.
    • Handle: RePEc:bla:ijurrs:v:29:y:2005:i:3:p:550-563
    DOI: 10.1111/j.1468-2427.2005.00605.x
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    References listed on IDEAS

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    1. Kornai, Janos, 1992. "The Socialist System: The Political Economy of Communism," OUP Catalogue, Oxford University Press, number 9780198287766.
    2. European Commission, 1998. "Structures of the taxation systems in the European Union 1970-1996," Taxation trends 1998, Directorate General Taxation and Customs Union, European Commission.
    3. European Commission, 2000. "Structures of the taxation systems in the European Union : 2000 edition," Taxation trends 2000, Directorate General Taxation and Customs Union, European Commission.
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    Cited by:

    1. David L. Ellison, 2007. "Subnational regionalism in a supranational context: the case of Hungary," IWE Working Papers 177, Institute for World Economics - Centre for Economic and Regional Studies.
    2. Jonathan REISHER, 2022. "The effect of disinformation on democracy: the impact of Hungary’s democratic decline," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 14(1), pages 42-68, May.
    3. Bruno Grancelli, 2011. "Local development in the rural regions of Eastern Europe: Post-socialist paradoxes of economic and social entrepreneurship," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 16(1), pages 31-53.
    4. Youliang Guo & Chengguo Zhang & Ya Ping Wang & Xun Li, 2018. "(De-)Activating the growth machine for redevelopment: The case of Liede urban village in Guangzhou," Urban Studies, Urban Studies Journal Limited, vol. 55(7), pages 1420-1438, May.

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