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Nils Oellerich (EUI-SPS) gives a talk on The Hungarian Banking Sector in Flux: Ownership Changes Between Development, Economic Nationalism and Political Lending , in the Political Economy Working Group

Dates:
  • Thu 13 Feb 2020 16.00 - 18.00
  Add to Calendar 2020-02-13 16:00 2020-02-13 18:00 Europe/Paris Nils Oellerich (EUI-SPS) gives a talk on The Hungarian Banking Sector in Flux: Ownership Changes Between Development, Economic Nationalism and Political Lending , in the Political Economy Working Group

POLITICAL ECONOMY WORKING GROUP

Abstract: Ownership developments in the Hungarian banking sector in the past decade have been shaped by stoked-up sentiments directed against foreign owners and multiple nationalisations, in part followed by privatisations to domestic actors, of a number of previously foreign-owned banks. This paper applies an analytical framework to these changes that takes into account both the decidedly nationalist politicisation of bank ownership, and the material interests of the ruling oligarchy. These two aspects of bank ownership changes are separated analytically in order to provide a comprehensive but analytically nuanced examination of the phenomenon at handpolitical rhetoric and the presumably underlying ideology thereby point to the discursive and ideational context whereas distributive consequences reveal the elemental material interests. Based on an extensive analysis of political speeches, I show multiple dimensions of nationalist rhetoric in the context of banking by the Hungarian Prime Minister Viktor Orb¡n. Moreover, an analysis of a number of expert interviews and relevant financial data suggests that, in distributive terms, the ownership changes have favoured a select group of economic actors deemed to have close ties to the government, and fall short of any tangible developmental ambition. The analysis highlights the shortcoming of the common observation of pronounced economic dependence on foreign capital in the region. While existing research shows that current political developments do not constitute a principle reversal of the region's and single countries' dependence on foreign capital, the government's leverage to implement discretionary measures in certain sectors is considerable. The analysis put forward in this paper, thus, illustrates that the observation of continued dependence should be complemented by more attentive analyses of the role of the state and political leverage in the organisation of those sectors, and its political and distributive implications.

Seminar Room 2 - Badia Fiesolana DD/MM/YYYY
  Seminar Room 2 - Badia Fiesolana

POLITICAL ECONOMY WORKING GROUP

Abstract: Ownership developments in the Hungarian banking sector in the past decade have been shaped by stoked-up sentiments directed against foreign owners and multiple nationalisations, in part followed by privatisations to domestic actors, of a number of previously foreign-owned banks. This paper applies an analytical framework to these changes that takes into account both the decidedly nationalist politicisation of bank ownership, and the material interests of the ruling oligarchy. These two aspects of bank ownership changes are separated analytically in order to provide a comprehensive but analytically nuanced examination of the phenomenon at handpolitical rhetoric and the presumably underlying ideology thereby point to the discursive and ideational context whereas distributive consequences reveal the elemental material interests. Based on an extensive analysis of political speeches, I show multiple dimensions of nationalist rhetoric in the context of banking by the Hungarian Prime Minister Viktor Orb¡n. Moreover, an analysis of a number of expert interviews and relevant financial data suggests that, in distributive terms, the ownership changes have favoured a select group of economic actors deemed to have close ties to the government, and fall short of any tangible developmental ambition. The analysis highlights the shortcoming of the common observation of pronounced economic dependence on foreign capital in the region. While existing research shows that current political developments do not constitute a principle reversal of the region's and single countries' dependence on foreign capital, the government's leverage to implement discretionary measures in certain sectors is considerable. The analysis put forward in this paper, thus, illustrates that the observation of continued dependence should be complemented by more attentive analyses of the role of the state and political leverage in the organisation of those sectors, and its political and distributive implications.


Location:
Seminar Room 2 - Badia Fiesolana

Affiliation:
Department of Political and Social Sciences

Type:
Working group

Contact:
Jennifer Rose Dari (EUI - Department of Political and Social Sciences) - Send a mail

Organiser:
Jasper Paul Simons (EUI - Department of Political and Social Sciences)
Timo Seidl (EUI - Department of Political and Social Sciences)
Prof. Dorothee Bohle (EUI - Department of Political and Social Sciences)

Speaker:
Nils Oellerich (EUI - Department of Political and Social Sciences)

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