Cadre capitalism in Hungary and Poland: Property accumulation among communist-era elites

East European Politics and Societies

Volumn 14, Issue 1, 2000, Pages 143-174

  Hanley, Eric ^a  

^a UNIVERSITY OF KANSAS   (United States)

Author keywords

[No Author keywords available]

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EID: 0034397148     PISSN: 08883254     EISSN: None     Source Type: Journal    
DOI: 10.1177/0888325400014001007     Document Type: Article

References (80)

1. Roman Frydman, Kenneth Murphy, and Andrzej Rapaczynski, "Capitalism with a Comrade's Face," Transition 2:2 (1996): 5.
2. David Lipton and Jeffrey Sachs, "Privatization in Eastern Europe: The Case of Poland," Brookings Paper on Economic Activity 2 (1990): 298-99; Olivier Jean Blanchard, Kenneth A. Froot, and Jeffrey D. Sachs, "Introduction," in Olivier Jean Blanchard, Kenneth A. Froot, and Jeffrey D. Sachs, eds., The Transition in Eastern Europe, vol. 1, Country Studies (Chicago, Ill.: University of Chicago Press, 1994), 12-14.
3. David Lipton and Jeffrey Sachs, "Privatization in Eastern Europe: The Case of Poland," Brookings Paper on Economic Activity 2 (1990): 298-99; Olivier Jean Blanchard, Kenneth A. Froot, and Jeffrey D. Sachs, "Introduction," in Olivier Jean Blanchard, Kenneth A. Froot, and Jeffrey D. Sachs, eds., The Transition in Eastern Europe, vol. 1, Country Studies (Chicago, Ill.: University of Chicago Press, 1994), 12-14.
4. Iván Major, Privatization in Eastern Europe: A Critical Approach (Brookfield, Vt.: Edward Elgar, 1993), 52-3; Evá Voszka, "Spontaneous Privatization in Hungary," in John S. Earle, Roman Frydman, and Andrzej Rapaczynski, eds., Privatization in the Transition to a Market Economy: Studies of Preconditions and Policies in Eastern Europe (New York: St. Martin's Press, 1993), 89.
5. Iván Major, Privatization in Eastern Europe: A Critical Approach (Brookfield, Vt.: Edward Elgar, 1993), 52-3; Evá Voszka, "Spontaneous Privatization in Hungary," in John S. Earle, Roman Frydman, and Andrzej Rapaczynski, eds., Privatization in the Transition to a Market Economy: Studies of Preconditions and Policies in Eastern Europe (New York: St. Martin's Press, 1993), 89.
6. Frydman et al. "Capitalism," 5-6.
7. Following a number of researchers, I define cadres as individuals who occupied positions of administrative authority during the state-socialist period. See Petr Matějů and Nelson Lim, "Who Has Gotten Ahead After the Fall of Communism? The Case of the Czech Republic," Czech Sociological Review 3 (1995): 133.
8. Jadwiga Staniszkis, The Dynamics of Breakthrough in Eastern Europe (Berkeley: University of California Press, 1991), 45-46; Jadwiga Staniszkis, "Political Capitalism in Poland," East European Politics and Society (1991): 136 ; see also Stanislaw Gomułka and Piotr Jasiński, "Privatization in Poland 1989-1993: Policies, Methods, and Results," in Saul Estrin, ed., Privatization in Central and Eastern Europe (London: Longman, 1994), 221.
9. Jadwiga Staniszkis, The Dynamics of Breakthrough in Eastern Europe (Berkeley: University of California Press, 1991), 45-46; Jadwiga Staniszkis, "Political Capitalism in Poland," East European Politics and Society (1991): 136 ; see also Stanislaw Gomułka and Piotr Jasiński, "Privatization in Poland 1989-1993: Policies, Methods, and Results," in Saul Estrin, ed., Privatization in Central and Eastern Europe (London: Longman, 1994), 221.
10. Jadwiga Staniszkis, The Dynamics of Breakthrough in Eastern Europe (Berkeley: University of California Press, 1991), 45-46; Jadwiga Staniszkis, "Political Capitalism in Poland," East European Politics and Society (1991): 136 ; see also Stanislaw Gomułka and Piotr Jasiński, "Privatization in Poland 1989-1993: Policies, Methods, and Results," in Saul Estrin, ed., Privatization in Central and Eastern Europe (London: Longman, 1994), 221.
11. David Stark, "Privatization in Hungary: From Plan to Market or from Plan to Clan?" East European Politics and Societies (1990): 365-70; Roman Frydman, Andrzej Rapaczynski, and John S. Earle, The Privatization Process in Central Europe (Budapest: Central European University Press, 1993), 135-42; Paul Marer, "Transformation of a Centrally Directed Economy: Ownership and Privatization in Hungary during 1990," in Bruno Dallago, Gianmaria Ajani, and Bruno Grancelli, eds., Privatization and Entreprenenrship in Post-socialist Countries: Economy, Law and Society (New York: St. Martin's Press, 1992), 181.
12. David Stark, "Privatization in Hungary: From Plan to Market or from Plan to Clan?" East European Politics and Societies (1990): 365-70; Roman Frydman, Andrzej Rapaczynski, and John S. Earle, The Privatization Process in Central Europe (Budapest: Central European University Press, 1993), 135-42; Paul Marer, "Transformation of a Centrally Directed Economy: Ownership and Privatization in Hungary during 1990," in Bruno Dallago, Gianmaria Ajani, and Bruno Grancelli, eds., Privatization and Entreprenenrship in Post-socialist Countries: Economy, Law and Society (New York: St. Martin's Press, 1992), 181.
13. David Stark, "Privatization in Hungary: From Plan to Market or from Plan to Clan?" East European Politics and Societies (1990): 365-70; Roman Frydman, Andrzej Rapaczynski, and John S. Earle, The Privatization Process in Central Europe (Budapest: Central European University Press, 1993), 135-42; Paul Marer, "Transformation of a Centrally Directed Economy: Ownership and Privatization in Hungary during 1990," in Bruno Dallago, Gianmaria Ajani, and Bruno Grancelli, eds., Privatization and Entreprenenrship in Post-socialist Countries: Economy, Law and Society (New York: St. Martin's Press, 1992), 181.
14. Stark, "Privatization," 365; Frydman et al., Privatization Process, 132-35.
15. Stark, "Privatization," 365; Frydman et al., Privatization Process, 132-35.
16. Kazimeirz Z. Poznanski, "Privatisation of the Polish Economy: Problems of Transition," Soviet Studies 44 (1992), 643-49.
17. See Mark Granovetter, "Economic Action and Social Structure: The Problem of Embeddedness," American Journal of Sociology 91 (1985): 481-510; Karl Polanyi, The Great Transformation (New York: Farrar and Rinehart, 1944), 48-51.
18. See Mark Granovetter, "Economic Action and Social Structure: The Problem of Embeddedness," American Journal of Sociology 91 (1985): 481-510; Karl Polanyi, The Great Transformation (New York: Farrar and Rinehart, 1944), 48-51.
19. Staniszkis, "Political Capitalism," 137-38; Ákos Róna-Tas, "The First Shall Be Last? Entrepreneurship and Communist Cadres in the Transition to Socialism," American Journal of Sociology 100 (1994): 45-46; József Böröcz and Ákos Róna-Tas, "Small Leap Forward: The Emergence of New Economic Elites." Theory and Society 24 (1995): 754-55.
20. Staniszkis, "Political Capitalism," 137-38; Ákos Róna-Tas, "The First Shall Be Last? Entrepreneurship and Communist Cadres in the Transition to Socialism," American Journal of Sociology 100 (1994): 45-46; József Böröcz and Ákos Róna-Tas, "Small Leap Forward: The Emergence of New Economic Elites." Theory and Society 24 (1995): 754-55.
21. Staniszkis, "Political Capitalism," 137-38; Ákos Róna-Tas, "The First Shall Be Last? Entrepreneurship and Communist Cadres in the Transition to Socialism," American Journal of Sociology 100 (1994): 45-46; József Böröcz and Ákos Róna-Tas, "Small Leap Forward: The Emergence of New Economic Elites." Theory and Society 24 (1995): 754-55.
22. Staniszkis, Dynamics, 40-41; Staniszkis, "Political Capitalism," 130-31; Róna-Tas, "The First Shall Be Last," 51.
23. Staniszkis, Dynamics, 40-41; Staniszkis, "Political Capitalism," 130-31; Róna-Tas, "The First Shall Be Last," 51.
24. Staniszkis, Dynamics, 40-41; Staniszkis, "Political Capitalism," 130-31; Róna-Tas, "The First Shall Be Last," 51.
25. The advantages that nomenklatura members have over the average citizen cannot be restricted to their positional power and their membership in elite social networks alone. One must also factor in their human capital resources. According to the 1993 survey, 87.2 percent of nomenklatura members in Poland and 94.2 percent in Hungary had tertiary degrees, compared to 12.9 and 15.0 percent of the economically active population in each country respectively. Given these educational advantages, one would expect them to fare relatively well in the postcommunist period, assuming governments did not implement policies that actively discriminated against them. As will be made clear below, however, educational advantages alone cannot account for the capacity of nomenklatura members to accumulate economic assets after the fall of communism, particularly in Hungary.
26. For a discussion of how the course of privatization in a number of Eastern European countries reflected the balance of power between workers, managers, and state actors, see David Stark, "Path Dependence and Privatization Strategies in East Central Europe," East European Politics and Societies 6:1 (1992): 48-49.
27. Laszlo Szakadat, "Property Rights in a Socialist Economy: The Case of Hungary," in Earle et al., eds., Privatization in the Transition to a Market Economy, 41.
28. Stark, "Privatization," 364; Frydman et al. Privatization Process, 130.
29. Stark, "Privatization," 364; Frydman et al. Privatization Process, 130.
30. Szakadat, "Property Rights," 40; Frydman et al., The Privatization Process, 142; Anna Canning and Paul Hare, "The Privatization Process-Economic and Political Aspects of the Hungarian Approach," in Saul Estrin, ed., Privatization in Central and Eastern Europe (London: Longman, 1994), 182-84.
31. Szakadat, "Property Rights," 40; Frydman et al., The Privatization Process, 142; Anna Canning and Paul Hare, "The Privatization Process-Economic and Political Aspects of the Hungarian Approach," in Saul Estrin, ed., Privatization in Central and Eastern Europe (London: Longman, 1994), 182-84.
32. Szakadat, "Property Rights," 40; Frydman et al., The Privatization Process, 142; Anna Canning and Paul Hare, "The Privatization Process-Economic and Political Aspects of the Hungarian Approach," in Saul Estrin, ed., Privatization in Central and Eastern Europe (London: Longman, 1994), 182-84.
33. Major, Privatization in Eastern Europe, 17; Marer, "Transformation," 178; Voszka, "Spontaneous Privatization," 95.
34. Major, Privatization in Eastern Europe, 17; Marer, "Transformation," 178; Voszka, "Spontaneous Privatization," 95.
35. Major, Privatization in Eastern Europe, 17; Marer, "Transformation," 178; Voszka, "Spontaneous Privatization," 95.
36. István Kemény, "The Second Economy in Hungary," in Maria Los, ed., The Second Economy in Marxist States (New York: St. Martin's Press, 1990), 63-66; Teréz Laky, "The Reality and Potential of Autonomous Entrepreneurship," in Dallage et al., eds., Privatization and Entrepreneurship, 158.
37. István Kemény, "The Second Economy in Hungary," in Maria Los, ed., The Second Economy in Marxist States (New York: St. Martin's Press, 1990), 63-66; Teréz Laky, "The Reality and Potential of Autonomous Entrepreneurship," in Dallage et al., eds., Privatization and Entrepreneurship, 158.
38. Ákos Róna-Tas, The Great Surprise of the Small Transformation: The Demise of Communism and the Rise of the Private Sector in Hungary (Ann Arbor: The University of Michigan Press, 1997), 144.
39. See Róna-Tas, Great Surprise, 177-78; Ivan Szelényi and Balazs Szelényi, "Why Socialism Failed: Toward a Theory of System Breakdown - Causes of Disintegration of East European State Socialism," Theory and Society 23 (1994): 228-29. Szelényi and Szelényi argue that the Solidarity movement in Poland and participation in the second economy in Hungary were "functional equivalents" in the sense that both "prepared the ground for system breakdown." The difference, of course, was that the former involved collective action and the latter individual action.
40. See Róna-Tas, Great Surprise, 177-78; Ivan Szelényi and Balazs Szelényi, "Why Socialism Failed: Toward a Theory of System Breakdown - Causes of Disintegration of East European State Socialism," Theory and Society 23 (1994): 228-29. Szelényi and Szelényi argue that the Solidarity movement in Poland and participation in the second economy in Hungary were "functional equivalents" in the sense that both "prepared the ground for system breakdown." The difference, of course, was that the former involved collective action and the latter individual action.
41. Canning and Hare, "Privatization Process," 189-91.
42. Frydman et al., Privatization Process, 123-24.
43. Stark, "Privatization," 365.
44. Canning and Hare, "The Privatization Process," 208.
45. Frydman and Rapaczynski, Privatization in Eastern Europe, 159-61; Jan Szomburg, "The Decision-Making Structure of Polish Privatization," in John S. Earle et al., eds., Privatization in the Transition to a Market Economy, 76-77.
46. Frydman and Rapaczynski, Privatization in Eastern Europe, 159-61; Jan Szomburg, "The Decision-Making Structure of Polish Privatization," in John S. Earle et al., eds., Privatization in the Transition to a Market Economy, 76-77.
47. Frydman and Rapaczynski, Privatization in Eastern Europe, 160.
48. Kazimierz Z. Poznanski, Poland's Protracted Transition: Institutional Change and Economic Growth, 1970-1994 (Cambridge: Cambridge University Press, 1996), 213; Mark Kramer, "Polish Workers and the Post-communist Transition, 1989-1993," Communist and Post-Communist Studies 28:1 (1995), 72.
49. Kazimierz Z. Poznanski, Poland's Protracted Transition: Institutional Change and Economic Growth, 1970-1994 (Cambridge: Cambridge University Press, 1996), 213; Mark Kramer, "Polish Workers and the Post-communist Transition, 1989-1993," Communist and Post-Communist Studies 28:1 (1995), 72.
50. Kramer, "Polish Workers," 91-92; Ben Slay, "The Polish Economy under the Post-Communists," RFE/RL Research Report (33, 26 August 1994), 74-75.
51. Kramer, "Polish Workers," 91-92; Ben Slay, "The Polish Economy under the Post-Communists," RFE/RL Research Report (33, 26 August 1994), 74-75.
52. Kramer, "Polish Workers," 92.
53. Brian Pinto, Marek Belka, and Stefan Krajewski, "Transforming State Enterprises in Poland: Evidence on Adjustment by Manufacturing Firms," Brookings Paper on Economic Activity 1 (1993): 215-16.
54. Poznanski, Poland's Protracted Transition, 176; Kramer, "Polish Workers," 89-90.
55. Poznanski, Poland's Protracted Transition, 176; Kramer, "Polish Workers," 89-90.
56. Pinto et al., "Transforming State Enterprises in Poland," 216.
57. Kramer, "Polish Workers," 89; Pinto et al., ibid., 216, 261.
58. Kramer, "Polish Workers," 89; Pinto et al., ibid., 216, 261.
59. Frydman et al., Privatization Process. 206-7.
60. Kazimierz Z. Poznanski, "Privatization of the Polish Economy: Problems of Transition," Soviet Studies 44 (1992): 646; see also Frydman and Rapaczynski, Privatization in Eastern Europe, 193; Vie Duke and Keith Grime, "Privatization in East-Central Europe: Similarities and Contrasts in its Application," in Christopher G. A. Bryant and Edmund Mokrzycki, eds., The New Great Transformation? Change and Continuity in East-Central Europe (London: Routledge, 1994), 160.
61. Kazimierz Z. Poznanski, "Privatization of the Polish Economy: Problems of Transition," Soviet Studies 44 (1992): 646; see also Frydman and Rapaczynski, Privatization in Eastern Europe, 193; Vie Duke and Keith Grime, "Privatization in East-Central Europe: Similarities and Contrasts in its Application," in Christopher G. A. Bryant and Edmund Mokrzycki, eds., The New Great Transformation? Change and Continuity in East-Central Europe (London: Routledge, 1994), 160.
62. Kazimierz Z. Poznanski, "Privatization of the Polish Economy: Problems of Transition," Soviet Studies 44 (1992): 646; see also Frydman and Rapaczynski, Privatization in Eastern Europe, 193; Vie Duke and Keith Grime, "Privatization in East-Central Europe: Similarities and Contrasts in its Application," in Christopher G. A. Bryant and Edmund Mokrzycki, eds., The New Great Transformation? Change and Continuity in East-Central Europe (London: Routledge, 1994), 160.
63. Frydman et al., "Privatization Process," 192; Tadeusz Kowalik, "The Great Transformation and Privatization: Three Years of Polish Experience," in Bryant and Mokrzycki, eds., The New Great Transformation? 183.
64. Frydman et al., "Privatization Process," 192; Tadeusz Kowalik, "The Great Transformation and Privatization: Three Years of Polish Experience," in Bryant and Mokrzycki, eds., The New Great Transformation? 183.
65. Poznanski, "Privatization of the Polish Economy," 650-51.
66. Frydman et al., "Privatization Process," 192-93; Poznanski, "Privatization of the Polish Economy," 646.
67. Frydman et al., "Privatization Process," 192-93; Poznanski, "Privatization of the Polish Economy," 646.
68. David Lipton and Jeffrey Sachs, "Creating a Market Economy in Eastern Europe: The Case of Poland," Brookings Papers on Economic Activity 1 (1990), 81 ; Lipton and Sachs, "Privatization in Eastern Europe," 297-98.
69. David Lipton and Jeffrey Sachs, "Creating a Market Economy in Eastern Europe: The Case of Poland," Brookings Papers on Economic Activity 1 (1990), 81 ; Lipton and Sachs, "Privatization in Eastern Europe," 297-98.
70. Pinto et al., "Transforming State Enterprises in Poland," 238; Kramer, "Polish Workers and the Post-communist Transition," 97-98.
71. Pinto et al., "Transforming State Enterprises in Poland," 238; Kramer, "Polish Workers and the Post-communist Transition," 97-98.
72. Pinto et al., "Transforming State Enterprises in Poland," 219; Kramer, "Polish Workers and the Post-communist Transition," 98.
73. Pinto et al., "Transforming State Enterprises in Poland," 219; Kramer, "Polish Workers and the Post-communist Transition," 98.
74. Pinto et al., "Transforming State Enterprises in Poland," 236.
75. Women made up 7.0 percent of the nomenklatura sample in Poland and 12.7 percent in Hungary.
76. Stark, "Privatization," 364; Staniszkis, Dynamics, 42-46, Staniszkis, "Political Capitalism," 133-36.
77. Stark, "Privatization," 364; Staniszkis, Dynamics, 42-46, Staniszkis, "Political Capitalism," 133-36.
78. Stark, "Privatization," 364; Staniszkis, Dynamics, 42-46, Staniszkis, "Political Capitalism," 133-36.
79. See Erik Olin Wright, Classes (Verso: London, 1985), 150.
80. For a discussion of the division of the nomenklatura into old bureaucrats and young technocrats in Hungary, see Erszébet Szalai, "The Power Structure in Hungary after the Political Transition," in Bryant and Mokrzycki, eds., The New Great Transformation? 120-43.