Hungarian Grand Entrepreneurs in the System of National Cooperation

A non-conventional change of government occurred in Hungary in 2010. The winner of the election, party-alliance FIDESZ-KDNP, which controlled more than two-thirds of the seats in the Hungarian Parliament, transformed the Hungarian constitutional system radically and with unprecedented rapidity. The so-called invisible constitution of 1989 was replaced by a new Basic Law. The new holders of power changed the structure and management of state administration. There were also fundamental shifts in the system of public education and in the financing of the health care system. We witnessed the introduction of new and until-now never-applied approaches and tools for regulating the economy and the taxation system. Moreover, the new government introduced systemic changes in terms of how the poor and the unemployed were supported and modified the legal and financial status of local governments. Since 2010, the share of the state sector has increased in the Hungarian economy. How did the grand entrepreneurs behave, and what strategies did they use in this radically modified socio-economic environment

Restructuring and re-regulation of the Hungarian tobacco market

This case study deals with the conditions and impacts of the implementation of Law CXXIV (2012) which has radically changed the regulation that applies to the Hungarian market for tobacco products. The new regulation promised to provide significant political benefits for the ruling coalition because the majority of the population support the proposition that smoking by the young generation should be prevented. This is the reason why the Hungarian government and the national assembly played a significant role in the remarkable modification of the regulation of this market. Another important factor in this development was that one of the decisive market players – by mobilizing its political influence and connections – was involved in the legislative process from its very beginning. The efforts of candidates close to power (who wanted to enter this market) were not coordinated, but these players expected to receive good support from decision makers. But the new regulation was subject to a number of flaws and demonstrations. As a result of the new legislation there remained 1500 settlements without a shop for tobacco sales. This unexpected development and the high and growing number of loss-making tobacco shops forced the government (and the state company responsible for the tobacco market) to modify permanently the regulation after only a short period of time. The main reason for the disturbances in the market was the administrative restructuring of the market for tobacco products