Hungary's problems caused by bad governance not just crisis, Bajnai says

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The economic difficulties of Hungary are due to the global crisis only to a lesser extent, but for the most part caused by the bad governance - said former prime minister Gordon Bajnai in a Business Forum organized by the American Hungarian Chamber of Commerce on Tuesday.

“It is clear by now, that the recent crisis is not a crisis of capitalism, but one crisis in the history of capitalism. However, its consequences are not to underestimate, as it brought significant changes,” Bajnai said, who pointed out the changes in the relationship of the state, citizens and companies. This crisis was mainly the crisis of the state, who couldn’t adapt to the fast changing economic and social challenges, he added.  
Since [the Fidesz won the election in] 2010, the Hungarian economy policy demolish the competitiveness and growth potential of the country. The potential growth is drifting away from the European average. That would cause a generation of lagging behind, he added. 
Bajnai expressed his deepest fear, that Hungary more and more seriously lags behind its possibilities. “These years decide if Hungary shifts from center to periphery, from convergence to drifting away.
The economic difficulties of Hungary are due to the global crisis only to a lesser extent, but for the most part caused by the bad governance. He said, the bad governance is due to three main causes. First of all, the rules of keeping the power contradicts to the rules of economic rationality. On the second hand, the lack of professionalism. And last but not least, a small but powerful group of oligarchs influence the government so much, that it affects most significantly the operation of the Hungarian governance. 
Bajnai also outlined the four most important tasks, a new government has to accomplish after next year’s election: recovering trust in the society and the economy; supporting new investments, increasing the rate of employment and reorganize the Hungarian education.

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