PHILADELPHIA: The European People’s Party (EPP), the conservative bloc in the European Parliament, has been said to be slow to censure Fidesz and Hungary’s autocratic prime minister, Viktor Orban, for its assault on democracy and rule of law.
Yet, Orban’s Western critics have been equally slow to understand the social and economic policies that underpin his popularity.
DELIVERING OUTCOMES THAT BENEFIT AVERAGE FOLKS
Consider the bold set of family policies that Orban announced in February.
So far, the verdict in the West on these policies, which are aimed at addressing the country’s low fertility rate and further reducing immigration, has been thunderously negative and all but blind to their effectiveness in entrenching Orban’s support among Hungarian voters.
Western analysts fail to recognise that nationalists such as Orban win support not only by attacking immigrants, but also by delivering economic policies that benefit average people.
Mainstream political parties in the West need to learn this economic lesson fast if they want to compete against their own populist challengers.
Orban is keen to connect his nationalist message to generous and popular social policies, while encouraging Hungarian women and families to have more children.
Hungary’s current fertility rate of 1.45 children per female is below replacement rate. And its population has been shrinking since 1989, mirroring declines in other former communist countries that used to provide extensive social support to families.
The plan’s centrepiece is a lifetime exemption from personal income tax for women who bear and raise four or more children (Orban and his wife have five). This and other policies in the new package will have a real impact on all families in Hungary.
Women under 40 who marry for the first time and have worked for at least three years will be eligible for a US$36,000 “childbearing” loan at a discounted rate, which will be forgiven as they have children.
Larger families can apply for an US$9,000 government grant toward the purchase of a seven-seat automobile. Grandparents taking care of children will be eligible for leave from work and benefits. And the government will create 21,000 new subsidised childcare places.
SUCCESS IN FAMILY-ORIENTED POLICIES
Leading Western media, analysts, and politicians have been almost universally critical of the plan, thereby falling right into Orban’s trap.
The Economist, a longtime advocate of the free-market economic policies that have impoverished many in Eastern Europe while producing great wealth for a few and higher living standards for a middle-class minority, predictably criticised Orban’s plan for being too expensive.
The new measures are “unlikely to give birth to a baby boom” and could “swell an economy that is close to overheating, and inflate house prices.”
Journalist Adam Taylor echoed these sentiments in The Washington Post, arguing that Orban’s policies will “barely move the needle on birthrate and may represent a poor return on investment.”
We have heard this same Western critique for decades: Helping people is too expensive and does not work, paying for houses will only make them pricier, and it’s better to rely on markets than on public policies.
But Orban’s critics ignore the examples of Poland and Russia, which also have implemented natalist policies in recent years. Russia’s fertility rate is up to 1.75 children per female, from a low of 1.17 in 1999, partly owing to a grant programme for new parents.
Poland, too, has achieved higher birth rates since 2015 after introducing the massive Family 500+ initiative, which enables parents to pay for school supplies, clothes, and vacations. Both schemes were criticised as being too expensive, but Poland’s public deficit has fallen, not risen.
Rather, these policies have stimulated economic growth while dramatically reducing child poverty and increasing school enrollment.
FAMILY LIFE BALANCE
Although free-market attacks on bold new social programmes are no surprise, some of the sharpest criticism of Orban’s policies has come from the left. Progressives strongly dislike the fact that many of his proposals target women in a way that seems to advance a conservative, pro-family agenda.
To The Guardian’s Afua Hirsch, for example, “the idea that assistance for those in poverty is conditional on obedient reproduction is verging on the dystopian”.
Similarly, Princeton professor Kim Lane Scheppele, interviewed on Public Radio International, warned that, “Women are going to bear the burden of Orban’s failed economic policies.” And Swedish Social Affairs Minister Annika Strandhall said that, “This kind of policy will harm the autonomy for which women have struggled for decades”.
These analysts are right that Orban’s policies are designed to encourage women to marry, buy houses, bear more children, and stay in Hungary. But their criticism misses the mark in important ways.
Overall, these proposals are not coercive. Nor do they seek to keep women barefoot and homebound. Instead, Orban’s plan is designed to help women manage their work-life balance. For that, it should be celebrated, not excoriated.
Consider the lifetime income-tax exemption for women with four or more children. The primary beneficiaries of this programme will be women who work, because those with no income will gain no advantage.
In two-parent families where both partners have similar or equal earning potential, it may make sense for the woman to work tax-free, or run the family business, while the man stays at home with the children.
Likewise, giving grandparents childrearing benefits helps women to enter the labour force. So does subsidised childcare. And although the new loan programmes do encourage women to have children, they also may enable them to buy a home. In short, these policies provide state support for women’s unpaid labour.
Like it or not, some of Europe’s boldest new social-policy initiatives are coming from governments like Orban’s. The negative reactions of mainstream opinion leaders in the West show how unprepared they are to do battle with Orban and others for voters’ hearts and minds.
The populist right is pressing the rhetoric and policies of social democracy into the service of right-wing nationalism. If the West cannot see or understand the appeal of this, it will be unable to fight back.
Mitchell A Orenstein is Professor of Russian and East European Studies and Political Science at the University of Pennsylvania and Senior Fellow of the Foreign Policy Research Institute.