Effects of IMF privatisation in Hungary

anniemcl

I watched a documentary by Press TV where Hungarian citizens and politicians are interviewed about the effects of IMF policies implemented over the last 2 decades.

Despite following all the advice of IMF and EU, Hungarians realise now these policies were in the words of one man "a disaster"

Since we're facing our own financial problems, do you believe selling off the country to foreign investors will really be a good thing? Will this really get us out of the mess we're in? Or will the debt hole just get worse?

Based on the Hungarian experience, I would prefer that at least some state companies remain under the control of the country for the benefit of Irish people, not some foreign banker.

The film is 25 minutes long and really worth watching if you care about the future of Ireland.

https://www.youtube.com/watch?v=sO8CoEWUGuw

Sponge Bob

Hungary, as do many Eastern European countries, gets a dose of right wing American values from the IMF rather than social democratic Western European values.

Unfortunately the current government would make some US republicans seem reasonable so the combination of indigenous ultra right and of economic ultra right is quite lethal.

Manach

If disaster is being bandied about for 20years of Capitalist free market economics, then it might be a stretch to find words to describe the prior regime.

Sponge Bob

Slovenia next door also converted to the free market and made a much better fist of it. Countries like Slovakia and the Czech republic also had post communist episodes of nationalist friedmanery where they revisited their old totalitarian pasts.

Icepick

They have governed their country badly, but hey, let's just blame the rich and foreigners.

andrew

The IMF don't come into a country whenever they feel like it. The IMF come in when your country has gone into massive debt it can't repay, and lends you money so that your country doesn't go to ****. The IMF are not the bad guys. And while I havn't looked at the documentary, the data don't seem to indicate a country that's doing spectacularly badly; it's getting consistently better, even if it's still at quite a low level.

Hungary was for decades operated under an economic system which decimated it's economy. If you think it's going to take just 20 years to recover completely from that kind of economic, social, and political mismanagement, then you're much too optimistic; the IMF and EU have but a limited capacity to improve countries, and if the country does poorly following those efforts, it's probably in spite of them and not because of them.

n97 mini

anniemcl wrote: »

Since we're facing our own financial problems, do you believe selling off the country to foreign investors will really be a good thing? Will this really get us out of the mess we're in?

Privatisation is about relieving the state of the cost of paying for some service.

The service might not improve, but it will cease to be a financial burden to the state.

It used to be said that we should hold on to the (then very inefficient) Aer Lingus as it's the national flag carrier. But as Mary Harney said it is not the business of a government to be involved in things such as the buying and selling of aircraft.

djpbarry

anniemcl wrote: »

Based on the Hungarian experience, I would prefer that at least some state companies remain under the control of the country...

Why are you assuming that a fire sale of Irish state assets is on the horizon?

View

djpbarry wrote: »

Why are you assuming that a fire sale of Irish state assets is on the horizon?

Fire Sale?

I'd make that any sale, since the state usually does around 1 privatization per decade at most.

Certainly, if there is any list of pending privatizations, it is well hidden.

djpbarry

View wrote: »

Fire Sale?

I'd make that any sale, since the state usually does around 1 privatization per decade at most.

Certainly, if there is any list of pending privatizations, it is well hidden.

Well I say fire sale because the OP seems to be under the impression that all state-owned entities will shortly be available for purchase.

Debtocracy

The IMF comes to a country:

1) To ensure creditors get paid off
2) To create opportunities for multinationals
3) To collect interest payments from the country to fund the organisation

djpbarry

Debtocracy wrote: »

The IMF comes to a country:

1) To ensure creditors get paid off
2) To create opportunities for multinationals
3) To collect interest payments from the country to fund the organisation

Without dwelling on the accuracy (or otherwise) of those three points, would the country in question not benefit from the above?

TimotiSt

Hungary messed up its privatizations big time, and completely lost its way in the last 20 years. Nothing wrong with the IMF, the current economic status of the country is the result of our attitude, faulty and never revised laws and us lying to ourselves for decades.
I do believe that it can be turned around, but it'll take another 20 years...

Pottler

TimotiSt wrote: »

Hungary messed up its privatizations big time, and completely lost its way in the last 20 years. Nothing wrong with the IMF, the current economic status of the country is the result of our attitude, faulty and never revised laws and us lying to ourselves for decades.
I do believe that it can be turned around, but it'll take another 20 years...

Indeed. Hee Hee. Read much do you?

TimotiSt

Just the healthy amount. Right wing newspapers make me sick real quick...

anniemcl

andrew wrote: »

The IMF don't come into a country whenever they feel like it. The IMF come in when your country has gone into massive debt it can't repay, and lends you money so that your country doesn't go to ****. The IMF are not the bad guys. And while I havn't looked at the documentary, the data don't seem to indicate a country that's doing spectacularly badly; it's getting consistently better, even if it's still at quite a low level.

Hungary was for decades operated under an economic system which decimated it's economy. If you think it's going to take just 20 years to recover completely from that kind of economic, social, and political mismanagement, then you're much too optimistic; the IMF and EU have but a limited capacity to improve countries, and if the country does poorly following those efforts, it's probably in spite of them and not because of them.

Thanks for watching the video.
I think you're right though, 20 years isn't enough time to fix an economy.

Best Regards,
Annie