“Hungary was once wealthier than Poland—it had a per capita GDP of $21,400 in 1990, when it also emerged from under the thumb of the Soviet Union—but it now lags considerably and seems to be falling farther behind. A share of the blame goes to Hungarian President Viktor Orbán, who embarked on an economic and ideological project during the 2010s that caught the attention of conservatives and nationalists across the globe, particularly in the United States. Along with a crackdown on immigration, Orbán is a ferocious economic interventionist. In 2021, for example, he responded with aggressive price controls on food, fuel, and other essentials to combat inflation.
That shift toward statism brought predictable shortages and, as Balcerowicz warned, stagnation. Hungary’s economy sank into a recession after posting negative growth in the last two quarters of 2024.
Hungary’s brash strongman is skilled at drawing attention to himself. But Poland’s stability and growth ought to show the way forward—not just for central Europe, but for any place that throws off the shackles of authoritarian ideology and the central planning that comes with it.”