THIS IS CAPITALISM? WELL, NO
The villas are large and spacious. They're designed in the latest Italian styles and set in elegantly landscaped gardens. Situated on Rozsao Hill, on the west side of Budapest, they offer a panoramic view of the Danube and the rest of the city.
It's here that Hungary's new private entrepreneurs live. Or rather the lucky ones, who have been able to raise the capital needed for growth. Getting bank loans is almost impossible. A fund does exist to finance private ventures.
"But the demand is 100 times what it can provide," said one Hungarian official. "The private sector still hasn't been integrated into the state credit system. To expand, small private ventures have to rely on pooling private resources or waiting for an inheritance." The only alternative is to borrow money on the black market at exorbitant interest rates.
So much for the celebrated return of capitalism to Hungary, hailed by the country's leaders and the western press. If some reports are to be believed, the panoply of capitalism is in place: a central plan so emasculated as to resemble the economic models used by western treasury departments, competitive banks, enterprises free to retain earnings and decide what and how much they produce, and a currency soon to be convertible.