Hungary  

Hungarian workers enjoy access to a high level of physical capital per worker, ranking the country in the top 30, worldwide. However, an unemployment rate of 7% and an inflation rate of 8% place Hungary below global averages on these variables. The domestic savings rate and household expenditure are each equivalent to a quarter of Hungary’s GDP. The share of non-performing loans is comparatively low at just over 2%, but the high interest margin of over six percentage points indicates inefficiency in the banking sector. With a raw materials concentration rate of 1%, and the third highest terms of trade worldwide, Hungary has a strong position with respect to its trading partners. Hungary also has the highest proportion of foreign direct investment in the world, at 27% of GDP, indicating the attractiveness of its markets to foreign investors.

Hungary requires only six formal procedures to register a new business, and 23,000 new businesses were created in 2007. Value added by the service industry is equivalent to two-thirds of GDP, emphasising Hungary’s post-industrial development stage. Despite strong internet infrastructure as measured by internet bandwidth and secure internet servers per capita, Hungary can improve computer accessibility, which is at an average of 32 personal computers per 100 people. In terms of ICT and high-tech exports, however, the country performs very well, ranking in the top 12 on both variables. Hungary spends 1% of its GDP on R&D, which is above the global average but behind many other European nations. However, the country’s royalty receipts place Hungary in the top 20 in this variable.

Hungarian citizens enjoy unconstrained freedom to participate in political processes, express their beliefs, and associate with political and civic organisations. Hungary is among the most democratic countries in the world, with high levels of political competition. However, there are relatively few constraints on executive power, ranking the country below the global average on this variable. Nonetheless, there is a high level of competition among rival parties in elections for the executive branch of the government. Legislative elections are also free and fair and the judiciary is independent of other branches of government. However, stability in the political system is relatively weak in Hungary, as the last significant regime change occurred within the last 20 years.

At 88%, the percentage of children enrolled in primary education is surprisingly low, ranking the country in the bottom quartile, on this variable. However, Hungary fares better internationally in terms of secondary and tertiary enrolment rates, with 96% and 69% enrolled at each level, respectively. This places Hungary 31st at secondary level and within the top 15 countries in regards to tertiary education. The student to teacher ratio is also very low, with 10 pupils for every teacher, ranking Hungary in the top five on this variable. There are 99 girls for every 100 boys in Hungarian schools, ranking Hungary around the global average on this variable. The Hungarian labour force enjoys high levels of secondary and tertiary education, ranking the country in the top 20 in the former, and in the top 30 in the latter variable. Educational expenditure per student also ranks in the top 30 worldwide.

The high number of doctors in Hungary places the country in the top 20 worldwide and the number of hospital beds ranks the country even higher at seventh. Health-adjusted life expectancy is high at 65 years, only 3% of Hungarians are undernourished, and infant mortality rates are among the 30 lowest, worldwide. In Hungary, all citizens have access to improved sanitation facilities, and 77% are satisfied with the quality of their local water, ranking the country above the global average.* Nonetheless, only 68% consider their overall health to be satisfactory, a very low number, and over a quarter of all Hungarians consider themselves to have health problems, ranking the country in the bottom quartile worldwide on this variable.* In addition, 29% of Hungarians polled were in physical pain the previous day, a high proportion internationally, while a very low 55% considered themselves well rested, the fourth lowest figure, globally.*

Hungary has some security concerns related to refugees, targeted violence towards certain communities with a history of discrimination, human flight, and state-sponsored violence. However, Hungary ranks amongst the top 40 on all four of these variables. Additionally, no Hungarians were killed in civil wars in 2007. While homicide rates are low, ranking the country 31st worldwide, general crime statistics are all around the global median: 14% of citizens reported theft in 2008, while 5% were allegedly assaulted.* Furthermore, less than two-thirds of citizens feel safe walking the streets at night, placing Hungary 51st according to this variable.*

In Hungary, the rule of law is applied equally and bureaucracy is moderately efficient. Furthermore, the quality of regulation of commercial and economic activity is also very high. Hungary ranks in the top third with respect to these variables. Despite fair and free political participation, less than half of all Hungarians have confidence in the honesty of the electoral process, an average proportion, worldwide.* Approximately nine in 10 individuals believe local businesses and government to be corrupt.* Just over half have confidence in the judicial process and the armed forces, average numbers worldwide.*

Hungarians enjoy completely unrestricted freedoms of religion, speech, and movement. Despite this, only 57% of people are satisfied with their freedom of choice in their daily lives, ranking the country in the bottom 15 on this variable.* Hungarians are moderately tolerant of others, with three-quarters of respondents believing their area to be a suitable place for both immigrants and ethnic minorities.*

While most people do not consider friends to be highly important in their lives, a very high 92% of citizens feel they can rely on their family and friends in times of need.* However, less than a quarter of Hungarians feel they can trust others, a very low proportion by global standards. Membership of religious, arts, environmental, and sports organisations are all very low, ranking Hungary in the bottom third of all countries on all four variables. Only 20% donated to charity in the recent month and less than 10% volunteered, placing the country in the bottom 10 worldwide on this variable. Furthermore, only few Hungarians helped a stranger in the last month, ranking the country in the bottom quartile on this variable.*

* Data taken from the Gallup World Poll

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