Hungary

Compared to western European countries, a more relationship-sensitive culture has developed in the central European country of Hungary. During the socialist era, members of society knew that connections mattered in many aspects of everyday life. While people living in less sensitive cultures are more likely to choose institutionalized legal or market solutions for their problems, people living in relationship-sensitive cultures usually turn to their personal acquaintances first. The emergence of this culture allowed Hungarians to adapt to the shortage economy of the previous system with kaláka, a kind of division of labor based on mutual favors. However, the permanent existence of this culture does not always fit into the market conditions of the current system.

One of the most important fundamentals of the political and economic transition should have been the dissociation of the political and economic systems, which were embedded into each other during the socialist regime. Nevertheless, the connections between the two subsystems have not ended; members of the former political elite have remained in the top positions of economic organizations. This interconnection between politics and economy is rational on the level of individual actors; however, it implies unintended consequences at the macro level. Large companies have become groups that support political parties, and they take politics into consideration when making business decisions. The different political attachments of companies impede rational cross-company relationships as well as restrain economic performance.

After the transition, personal networks became more homophilous with respect to education and occupation. Moreover, the importance of wealth increased [Page 392]as a determinant of the size of an individual's social network. As far as an individual's personal relationships, political and public bonds, religious ties, and the integrating power of trust are concerned, Hungary is a less-integrated society compared to the northern European welfare states but similar to other eastern European countries. In Hungary, relations within the nuclear family are very strong. Compared to U.S. data, kinship contacts are far more important sources of social capital. On the other hand, the number of friends and acquaintances is relatively low; 25 percent of Hungarians report having no friends, in contrast with the United States and Australia, where this rate is under 10 percent. The rate of willingness to cooperate with strangers is also low in international comparison.

In Hungary, the Roma population represents a large ethnic minority who are less integrated in the majority of society. The members of the Roma minority are more likely to live in marriage, have close and strong relations, and possess more weak ties than the rest of society.

After 1989, the number of civic organizations in Hungary doubled within one year, and by 2003, there were nearly six times as many. However, participation in voluntary associations was still low compared to western European and U.S. levels (one-third of the U.S. number), but comparable to southern European countries, such as Spain or Italy. The transition also contributed to the weakness of civic society by absorbing the previously active underground intellectuals to formal political positions. Contrary to the previous approach of social movements, it was demonstrated that civic actors do not face the choice between transnational reach and local involvement. Many of them were able to engage in transnational cooperation by maintaining integration with their local membership base and other civic organizations.

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