Zsuzsa Ferge Offers Troubling Insight Into Hungarian Society

  • 14 Mar 2014 8:00 AM
Zsuzsa Ferge Offers Troubling Insight Into Hungarian Society
Renowned Hungarian sociologist Zsuzsa Ferge does not deny that certain quality of life indicators have improved since 2010. She does, however, believe that such indicators have not affected the strong growth of social inequality in Hungary – it’s as if the government has all but forgotten about the bottom 3 million Hungarians. Social mobility is only awarded to those who have demonstrated their loyalty to the government. Ferge shared her thoughts in an interview with Hungarian news site ATV.hu on 11 March 2014. She also spoke about findings her organization will publish in May.

Ferge told ATV.hu that quality of life indicators are comprised of figures related to employment opportunities, distribution of income, income levels, consumer trends (specifically regarding food purchases) and housing conditions. However, society also needs to consider levels of income inequality, social disruption and how far the top 10 per cent of society is from the bottom 10 per cent.

Employment

Governing party Fidesz adamantly promised that it would create one million jobs. According to Ferge, those in the 15- to 64-year-old age group have indeed experienced some rise in the employment percentages. 110,000 more people are employed now than in 2010, although it is unclear how many received employment through the government’s public works scheme. What is clear though is that the job security has decreased. This is evidenced by the decrease in definite long-term employment, which has shrunk by 70,000 jobs. At the same time, the number of jobs for indefinite periods has grown by 130,000. Over the past three years 30,000 full-time jobs in the private sector have disappeared but have increased in the public sector by 20,000. Fidesz’s promise to create jobs was in private sector employment.

A minimal 2 per cent growth in real income can be seen from 2010 to 2013. At the same time, consumer trends in foodstuffs are concerning: people are eating less meat, eggs and foods providing real nutrition such as vegetables and fruits. Ferge says this has been a trend since 2007.

Consumer prices

Alcohol and tobacco products have become more expensive, which isn’t necessarily a concern. Consumer prices for fuel have increased significantly but inflation rates remain at record lows. Inflation rates were at 1.7 per cent last year, which can be attributed to the government’s forced price cuts on public utility providers. Ferge says that while the government is claiming these forced cuts benefitted everyone in society, it is worth noting they hardly helped those whose energy consumption is low. This group’s low energy consumption can be attributed to lack of access to utilities and low income. Those with higher income really enjoy the benefit of the government-imposed price cuts on utility providers.

The special tax treatment for families with children is similar in this regard. The number of low-income households qualifying for the special tax treatment has increased, which is good because lower-income families can apply the deductions toward offsetting their social security contributions. However, it remains true that higher-income families with many children are significantly better off with the special tax treatment.

Social support

Ferge believes the government’s work has produced concerning results. The welfare system’s database shows that poverty rates significantly spiked between 2011 and 2012: those living in poverty grew by 4 per cent (of the total population) and the number of children living in poverty grew by 20 per cent. Since 2010 the real value of Hungary’s second-stage maternity leave subsidies (GYES) has decreased. But Ferge believes that the increased access to GYES and the first-stage maternity leave subsidies (GYED) is somewhat positive because more families will have access to the benefits. However, the cuts in the 2013 and 2014 budgets have negatively affected welfare recipients and the unemployed. These cuts are expected to continue through the government’s next budget.

Income inequality

Income inequality has grown by all accounts, especially over the past two years. Statistics indicate that when compared to the rest of Europe, Hungary falls into the group of countries marked by strong income inequality. Hungary’s top 10 per cent have enjoyed a significant growth in incomes, while incomes in the bottom 10 per cent have declined – a 900 per cent difference in income separates the two groups.

Ferge also points out that conditions for accessing assistance are becoming increasingly difficult to meet. She highlights conditions for the burial for homeless people and the forbidding of food distribution in the streets. The climate of intolerance toward those in need of assistance continues to grow significantly.

Only those who have demonstrated that they are “loyal Hungarians”, i.e., those who are supporters of Fidesz, have opportunities for social mobility. Those who have proven their loyalty enjoy the government’s good favor and reap the benefits of the state’s income redistribution through controversial scandals as seen with the “tobacco tenders” (trafikmutyi) and being awarded lucrative public tenders. Furthermore, Ferge adds, the government’s actions to improve the quality of life have provided little – if any – benefit to the most impoverished and at-risk lower middle-class families whose number total more than 3 million people. Ferge believes the government is practicing a sort of “faith creed” in its approach to helping the bottom 3 million – they must be sacrificed for the greater good.

Founded in 2010, A Chance for Children’s primary goal is to improve access to life’s opportunities for children and reduce the number of children living in poverty. The organization’s founding members were part of the government-sponsored Hungarian Academy of Science’s Reducing Children Affected by Poverty Program (Magyar Tudomanyos Akademia Gyerekszegenyseg Elleni Programiroda). When funding was cut, the members formed A Chance for Children. Renowned Hungarian sociologist Zsuzsa Ferge serves as the Honorary Chairperson for the organization.

A Chance for Children actively works in issues concerning poverty by conducting research, providing training for social workers and sociologists, organizing conferences on poverty, directing financial and social support to communities in need, providing services for affected families, and developing long-term programs to assist those affected by poverty.

Source: budapestbeacon.com

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