The Transformation of Post-Socialist Capitalism – From Developmental State to Clan State?

Greenwich Paper in Political Economy No. GPERC57

30 Pages Posted: 24 Jan 2018  

Dorottya Sallai (Egerszegi)

University of Greenwich

Gerhard Schnyder

Institute for International Management LUL; Centre for Business Research; King's College London

Date Written: January 12, 2018

Abstract

Various characterisations exist of the model of post-social capitalism. While most typologies underscore the prominent role of the state in post-socialist capitalism compared to Western economies, the literature is less clear about what exactly this role consists of. For the case of East Central Europe, some authors underscore the weakness of the state and its ‘capture’ by business interests, while others attribute to the state a benign role in successful industrial restructuring. We show that both views are of limited use to understand the phase of ‘backsliding’ that these economies are currently experiencing. We draw on anthropological models of post-socialist states that focus on elite dynamics within the state and show that this focus allows us to interpret backsliding in Hungary as a reversal of the developmental state into a clan-state.

Keywords: State Capitalism, Political Ties, Clan-State, Post-Socialism, Autocracy, Developmental State

JEL Classification: P16, P26, H13

Suggested Citation

Sallai (Egerszegi), Dorottya and Schnyder, Gerhard, The Transformation of Post-Socialist Capitalism – From Developmental State to Clan State? (January 12, 2018). Greenwich Paper in Political Economy No. GPERC57. Available at SSRN: https://ssrn.com/abstract=3100775 or http://dx.doi.org/10.2139/ssrn.3100775

Dorottya Sallai

University of Greenwich ( email )

Old Royal Naval College
30 Park Row
London, SE10 9LS
United Kingdom

HOME PAGE: http://www.linkedin.com/in/dorottyasallai

Gerhard Schnyder (Contact Author)

Institute for International Management LUL ( email )

Lesney Avenue
Here East
London, E15 2GZ
Great Britain
+44 (0)20 3805 1360 (Phone)

Centre for Business Research ( email )

University of Cambridge
Judge Business School Building
Cambridge, CB2 1AG
United Kingdom
++44 (0)1223 765325 (Phone)

HOME PAGE: http://www.cbr.cam.ac.uk/people/Schnyder.htm

King's College London ( email )

150 Stamford Street
London, SE1 9NN
United Kingdom
++44 (0)20 7848 4633 (Phone)

HOME PAGE: http://www.kcl.ac.uk/schools/sspp/mgmt/people/academic/schnyder/

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