As West Fears the Rise of Autocrats, Hungary Shows What’s Possible

Several men urged caution. But Viktor Orban, the prime minister-elect, disagreed. The voting result, Mr. Orban continued, had given him the right to carry out a radical overhaul of the country’s Constitution.

.. Nearly eight years later, Mr. Orban has remade Hungary’s political system into what one critic calls “a new thing under the sun.” Once praised by watchdog groups as a leading democracy of post-Soviet Eastern Europe, Hungary is now considered a democracy in sharp, worrisome decline.

.. Through legislative fiat and force of will, Mr. Orban has transformed the country into a political greenhouse for an odd kind of soft autocracy, combining crony capitalism and far-right rhetoric with a single-party political culture.

.. At home, he is pushing new legislation, this time to place financial penalties on civil society groups that help migrants.

..  He is arguing that Europe’s postwar liberal consensus “is now at an end” — and his vision is being emulated in Poland

.. Mr. Orban is emblematic of a strongman age. He has courted President Vladimir V. Putin of Russia and praised President Recep Tayyip Erdogan of Turkey. In 2016, he became the first Western leader to endorse the Republican presidential nominee, Donald J. Trump.

.. “Orban has pioneered a new model of single-party rule that has spread through Eastern Europe

.. defended Mr. Orban’s actions as a determined effort “to get rid of the remnants of communism that are still with us, not only in terms of institutions but in terms of mentality.”

.. Mr. Orban is undeniably popular with many Hungarians

.. he also has positioned himself as a buffer against what he portrays as modern-day threats: such as European Union bureaucrats; or George Soros, the liberal Hungarian-American philanthropist; or, above all, migrants who seek to settle in the country.

.. Migration fits into a wider agenda about the protection of the Hungarian people,” said Andras Biro-Nagy, a politics lecturer at Corvinus University of Budapest. “He’s protecting us from everything.”

.. Weeks later, Mr. Orban and his lieutenants began a legislative assault on the Hungarian Constitution, curbing civil society and, to less fanfare, diverting billions of euros in European Union and federal money toward loyal allies.

.. First, he moved simultaneously to curb the Hungarian media and the judiciary. Next came the erosion of the country’s checks and balances, which has helped Mr. Orban share the spoils of power with close friends and important businessmen.

.. And then, came the electoral process. The restructuring of Hungary’s election system, including a redrawing the electoral map

.. During the next five years, Fidesz used its two-thirds majority in Parliament to pass more than 1,000 laws, many of them enacted after a few hours of debate — and often presented by low-ranking lawmakers who had neither written nor read them.

.. The laws allowed Mr. Orban to appoint his own candidates to lead the country’s two main media regulators, while simultaneously giving those regulators more power to fine and punish independent news outlets. (Most of those outlets have subsequently been bought by allies of Mr. Orban.)

.. Mr. Orban put ex-Fidesz politicians in charge at several institutions, including the State Audit Office, which monitors government expenditures, and the State Prosecution Service, which oversees criminal prosecutions. His supporters also now control the board overseeing the National Fiscal Council, an independent body scrutinizing economic policy.

.. Yet it is Hungary’s judiciary that has perhaps been most affected.

.. Judges had to be nominated by a committee staffed by representatives of all the parties in Parliament — ensuring that all judges were chosen by consensus.

.. But Fidesz voted to give itself complete power in choosing the candidates. Eight years later, the court is made up entirely of judges appointed during Fidesz’s tenure.

.. Homelessness is once again a crime in Hungary.

.. “It’s not a totalitarian system,” Judge Szepeshazi said. “But it’s very autocratic.”

.. Mr. Orban has been able to accrue so much power in Budapest partly because he met little effective opposition from Brussels

.. The main problem was that the founders of the European Union never considered the possibility that a member state would backslide, and did not create procedures to deal conclusively with such an event, Ms. Reding said.

.. Mr. Orban has subsequently claimed to have tricked European officials into believing that he had made substantive changes, even though they were largely cosmetic, a tactic he has publicly described as the “dance of the peacock.”

.. Voting districts that had historically leaned to the left were reshaped to include around 5,000 more voters than districts that traditionally leaned right, according to an analysis by polling specialists at Political Capital, a Hungarian think tank. This meant that leftist parties needed more votes to win a seat than Fidesz did.

.. “All the characteristics and features on the surface are of democracy,” he added. “But behind it there is only one party and only one truth.”

The World Bank Is Remaking Itself as a Creature of Wall Street

Jim Yong Kim, the World Bank’s president, is
trying to revitalize a hidebound institution.
But his embrace of Wall Street is controversial.

.. provides cash to companies in exchange for equity stakes, the World Bank currently drums up more than $7 billion a year from the private sector to invest in ventures in the developing world. Mr. Kim wants that figure to increase eventually to $30 billion.
.. The World Bank promised to protect investors against some losses.
.. those benefiting from the World Bank’s lending practices were “the people who fly in on a first-class ticket to give advice to governments.”
.. The argument was that growing investment flows into developing countries rendered World Bank lending mostly superfluous.

.. Last year, the World Bank dispensed $61 billion in loans and investments. By contrast, investors now inject more than $1 trillion a year into emerging markets

.. In effect, he was pitching the bank’s services as a middleman, ready to back projects with guarantees and other incentives. No longer could the World Bank be the sole provider of loans, which, he said, are “crowding out” the private sector.

.. the World Bank economists whose pay is tied to how many loans they churn out

.. “One of the most difficult things to do in a large bureaucracy is to change incentives,

.. “And if you have a large bureaucracy full of economists it is especially hard, because it turns out that economists really hate it when you change the incentives.”

.. On Wednesday, the bank’s top economist, Paul Romer, abruptly resigned.

.. His end came after he claimed, in an interview with The Wall Street Journal, that the World Bank’s closely-watched report on business conditions in different countries had been altered for political reasons.

.. the bank tends to see private sector solutions — those involving the profit motive — as morally questionable.

.. World Bank staffers are used to talking to governments, and now they have to leverage the private sector? It is a different skill set, and flexibility is not the hallmark of development institutions.”

.. “He had to work against his own incentives,” Mr. Kim said, referring to the bank’s practice of rewarding staff for loans. “And that is part of the institutional problem here.”

.. “He has pursued a strategy of making himself popular in Davos by attacking the organization and its staff,” said Lant Pritchett, a retired World Bank executive. “It is this idea that his hand has been hampered by bureaucratic machinations. That may be accepted in Davos — but it’s completely false.”

.. His biggest coup was working with Ivanka Trump

.. They eventually settled in Muscatine, Iowa, where Mr. Kim was a high school quarterback before going on to Brown and securing advanced medical and anthropology degrees from Harvard.