The privatization carried out by Hungary’’s first democratic government, which regarded itself as the custodian of the 19th century ideals of freedom, immediately paved the way for the latest modernization of Hungary, following two previously interrupted attempts. The government knew what it wanted, yet it failed to take into consideration the legacy of dictatorship, including the shadow economy and illegal employment. Within this framework a secret, pro forma privatisation had already taken place, although it could not be de iure recognized under Kádár’’s legislation. What it basically amounted to was that local fiefdoms, based on profitable enterprises functioning in the […]