Hungary
Republic of Hungary
Local short form: Magyarorszag
Local long form: Magyar Koztarsasag
Cultural Note
For a relatively small country, Hungary has produced an astonishing number of top scientists. Many of the scientists who worked on the U.S. Manhattan Project (which produced the first nuclear bombs) were Hungarian expatriates. Some were Hungarian Jews who were fleeing fascism, some were Hungarian Christians, and others were born in the United States but had Hungarian ancestry.
● What’s Your Cultural IQ? |
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1. No one can prove whether or not today’s Hungarians are descended from the fifth-cen- |
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tury warriors of Attila the Hun. True or False? Despite this uncertainty, “Attila” remains a fairly common name in Hungary.
ANSWER: True. It has been used both as a first name and a surname. Interestingly, whatever the legendary “Scourge of God” called himself, it wasn’t Attila. The name “Attila” is a Gothic name derived from the Gothic word atta, meaning “father.” Attila was probably a term given him by the Gothic peoples he conquered.
The main alternative theory is that the ancestors of today’s Hungarians arrived in Europe from Asia much later, sometime in the ninth century. This theory—that the Hungarians arrived after the empire of the Huns fell apart—was promoted by the Austrians and the Soviets. Both groups had a vested interest in blurring the Hungarian national identity. Neither wanted the Hungarians to think of themselves as descended from the most feared invaders Europe has ever known.
2. Hungary also has a number of well-known composers. Which of the following musicians is better known today for his efforts in music education?
a. Béla Bartók b. Franz Lehár c. Zoltán Kodály
ANSWER: c. There is a Zoltán Kodály Pedagogical Institute of Music in Hungary, as well as other institutes using his techniques all over the world. Lehár was a composer of operettas; he is best remembered for the operetta The Merry Widow.
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3.Hungary’s southern border marks a dividing line between Catholic/Protestant Europe and Orthodox Europe. True or False? Since 2004, this border delineates another new and important divide.
ANSWER: True. Hungary was admitted to the European Union in 2004. The countries to the south—Romania, Bulgaria, and Turkey—applied but were not admitted (for now). Hungary’s southern border is the border of the European Union, and the Hungarians are charged with keeping illegal immigrants out of the EU.
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Tips on Doing Business in Hungary |
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Remember that Hungary is a landlocked nation, although a limited amount of shipping |
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is done via the Danube River, which passes through the capital, Budapest. Hungary’s |
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infrastructure of highways and railroads has been improved, however, many roads are |
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still in need of upgrades. |
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The Hungarian language is called Magyar and is difficult for outsiders to learn. Unlike |
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most European languages, Magyar is not a member of the Indo-European linguistic fam- |
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ily. It is a Finno-Ugric tongue, distantly related to Finnish and Estonian. Fortunately, |
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Hungarians have a tradition of learning other languages. You can present written materi- |
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als in English or German; many Hungarians read these languages. |
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When holding important business discussions through an interpreter, stop and reiter- |
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ate points on a regular basis. This avoids misunderstandings. Magyar has suffixes that |
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convey degrees of ambiguity and subtleties, which can easily be lost in translation. |
●3 Country Background
History
King Stephen (later canonized) is credited with uniting the Hungarian people and adopting Roman Catholicism as the national religion. The dates of his rule are usually given as a.d. 1000 to 1038. The Arpád dynasty he established ruled Hungary for some 300 years.
After the fall of Constantinople in 1453, the Hungarians became Europe’s front line of defense against the Ottoman Turks. The two groups fought off and on for some 300 years. Finally, the Turks managed to conquer the Hungarians.
At the Battle of Mohács in 1526, the Ottomans dealt the Magyars a crushing defeat and slew the Hungarian king. The Ottomans occupied the then-capital of Buda. All of southern Hungary became a vassal state of the Ottoman Empire. The Habsburg kings of Austria took control of the northernmost remnant of Hungary, and they slowly pushed back the Ottomans. By 1683, they had expelled the Turks from central Hungary, and they incorporated most of Hungary into their empire.
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Unhappy under Habsburg rule, the Hungarians revolted in 1848. The Austrians were unable to put down the revolt by themselves and accepted an offer of Russian aid. The Hungarian revolt was crushed in 1849.
Realizing that they could not permanently stifle Hungarian nationalism, the Habsburgs created the dual monarchy: Hungary became a separate state under the Habsburg Crown. The name of the empire was changed to the Austro-Hungarian Empire.
The Austro-Hungarian Empire entered the First World War in 1914. When the war ended in 1918, Hungary was dismembered along with the rest of the Austro-Hungarian Empire.
Hard hit by the Great Depression, Hungary developed its own fascist movement, the Arrow Cross. When the Second World War began, both Hungary and Romania allied themselves with Nazi Germany. Hungary suffered great destruction and emerged from the war both reduced in size and under the control of the USSR.
As in its neighboring countries, Hungary was forced to accept a Communist government. In 1956 the Hungarian government tried to withdraw from the Warsaw Pact. This resulted in a Soviet military crackdown, during which many Hungarians died, others fled to the West, and Prime Minister Imre Nagy was executed.
The liberalism that swept Eastern Europe in the late 1980s fostered changes in Hungary. Long-time Communist leader János Kádár was forced to resign in 1988. The Communists became just another political party and were roundly defeated in the elections of 1990.
Hungary joined NATO in 1991 and the European Union in 2004.
Hungary
Cultural Note
An amazingly fertile country, Hungary was intentionally kept agricultural while it was part of the Austro-Hungarian Empire. After the Second World War, the Communists instituted massive industrialization projects. Industry now provides almost half of the Hungarian GNP. Besides the soil’s fertility, Hungarian resources include coal, natural gas, and bauxite.
Type of Government
The Republic of Hungary is now a multiparty republic. There is a single legislative body, the National Assembly.
The prime minister is the head of the government. The state president of Hungary is commander in chief of the armed forces, in addition to being head of state; this gives the position more importance than in most European countries.
Formerly one of the most prosperous members of the Warsaw Pact, Hungary underwent a relatively smooth transition from a one-party Communist state to a democracy.
For current government data, check with the Embassy of Hungary at www.huembwas.org.
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Hungary
Language
The official language of Hungary is Hungarian, which the Hungarians call “Magyar.” Although Hungary has a significant minority population (primarily German, Slovak,
Romanian, and Gypsy), over 95 percent of the people speak Magyar (Hungarian). Ethnologue, at www.ethnologue.com, has identified twelve languages spoken in Hungary,
all of which are extant.
The Hungarian View
The majority of Hungarians are Roman Catholic; approximately 28 percent belong to Protestant denominations. Other religions are also present. By and large, Hungary marks the end of Catholic and Protestant Europe. Romania and Bulgaria are Orthodox countries. Some believe that Hungary’s economic success is due in part to the “Protestant Work Ethic”—something that is relatively absent in Romania and Bulgaria.
Hungarians have a reputation for melancholy. Rates of depression in Hungary are difficult to measure, but the suicide rate is relatively high.
On the bright side, Hungarians also rank among the top in number of Olympic medals per capita.
*Know Before You Go
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As in many former members of the Warsaw Pact, street crime is present. There are also various scams, from bars that charge foreigners outrageous prices for drinks, to elaborately plotted scams using criminals disguised as police officers.
Under the Communist regime, Hungary suffered massive environmental pollution. This is slowly being ameliorated. Hungary has substantial deposits of coal, but new regulations require many coal-fired plants to be shut. They are usually replaced with power plants using natural gas, which Hungary must import. Hungary also uses aging, Soviet-built nuclear power plants, the safety of which is cause for concern.
Although most Hungarians were anxious to join NATO, they still want to balance military and environmental concerns. In 2004, protesters halted the construction of a NATO radar station near Pecs in southern Hungary.
Hungary’s overriding international concern is the treatment of ethnic Hungarians living in Romania, Serbia, and the Slovak Republic. In addition to this, Hungary and the Slovak Republic have long-standing disagreements over a dam on the Danube River.
●3 Cultural Orientation
Cognitive Styles: How Hungarians Organize and Process Information
Hungary engaged in a degree of free-market enterprises before the collapse of Communism. Consequently, there is now an entire generation of businesspeople with experience in capitalism.
Under Communism, the educational system taught most Hungarians to process information associatively. Today, between a more diverse educational system and training abroad, there are a substantial number of Hungarians who think more abstractly. Hungarians have
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a tendency to see laws as something written by those in power for the benefit of those in power, not as something to protect the powerless. Personal relationships tend to be valued more than stringent adherence to regulations.
Negotiation Strategies: What Hungarians Accept as Evidence
The cataclysmic demise of the Communist Party as the ideological focus for all arguments has opened the door to other forms of reasoning. The more exposed to outside influences the participants are, the more they may use objective facts in their reasoning rather than subjective feelings or faith in the ideology of party or group. Intentions, feelings, and opinions are now openly expressed. Because it is considered better to be direct than devious, spontaneity of action is favored.
Surrounded by peoples (especially Slavs) who speak languages radically different from their own, Hungarians tend to feel isolated. Their typical worldview is that Hungarians are a misunderstood, put-upon people, oppressed by their neighbors. Information is often filtered through this worldview.
Value Systems: The Basis for Behavior
With the fall of Communism, Hungary is now open to explore the values of other systems and is subject to all the internal turmoil this brings. The following three sections identify the Value Systems in the predominant culture—their methods of dividing right from wrong, good from evil, and so forth.
Locus of Decision-Making
As the movement toward freedom and privatization advances, it is putting the responsibility for decision-making on the shoulders of the individual. In many instances the individual may transfer this responsibility to the group as a whole or to a consensus of privileged individuals. It is not clear yet whether the model to be followed will be that of capitalist or socialist democracy.
Sources of Anxiety Reduction
Formerly, the party structure, power, and full employment were the primary stabilizing forces in the lives of the people. Now there is a great deal of day-to-day anxiety over job and family security. The family unit is still recognized as a stabilizing force in society. Hungarian churches, which have always been influential in family life, are taking a more active role.
Except for a minority of successful entrepreneurs, Hungarians tend to have low expectations out of life. For example, when Hungary joined the European Union, most Hungarians surveyed said that they thought EU membership might bring a degree of prosperity to future generations, but not to their own.
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Issues of Equality/Inequality
The removal of Communist Party control has allowed perceived feelings of inequality to surface. Ethnic disputes have become visible, along with humanitarian needs for equality and the establishment of strong, hierarchically structured systems in government, business, and society.
While Hungarian women hold important positions in academia and various professions, business is still dominated by men. Although Hungarian tradition demands that men treat visiting women with great courtesy, this does not apply to the women they see on a daily basis. In mixed company, men tend to dominate the conversation.
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Cultural Note
While private ownership of property is permitted in Hungary, the concept of joint responsibility for property has not completely sunk in. Property not owned by an individual is often allowed to deteriorate. For example, the common areas in Hungarian buildings are sometimes dirty and shabby, because tenants often don’t see such upkeep as their responsibility.
●3 Business Practices
Punctuality, Appointments, and Local Time
●Punctuality is expected in all matters related to business: appointments, deliveries, payments, and so forth.
●Establish a relationship with a Hungarian representative prior to your visit. This individual can initiate contacts for you and accompany you to your appointments. Select this contact person carefully, because your new Hungarian clients will expect you to keep that representative ad infinitum.
●Request your appointment via e-mail or by regular letter as far in advance as possible. Always reconfirm the day before the meeting.
●Business letters may be written in English. While all businesses can translate letters from English, not all of them have staff members who can speak it. Consider hiring an interpreter.
●Avoid making business trips to Hungary during July and August, and from midDecember to mid-January. These are holiday and vacation periods.
●Hungary is one hour ahead of Greenwich Mean Time (G.M.T. +1) and six hours ahead of U.S. Eastern Standard Time, (E.S.T. +6). There is a daylight-saving system in the summer; the clocks are turned one hour ahead from April to September.
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Cultural Note
In addition to vacations, August is interrupted by two important feast days. The Feast of the Assumption of the Virgin Mary is on August 15: the Virgin Mary is very important to Catholic and Orthodox Hungarians. Before the Second World War, many Hungarians referred to the month of August as“the Month of the Virgin Mary.” August 20 is the Feast of King St. Stephen (Hungary’s patron saint). On his death in a.d. 1038, King Stephen entrusted the protection of Hungary itself to the Blessed Virgin.
Negotiating
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It is difficult to predict how long it will take to negotiate a deal. Under the Communists, |
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any type of contract would take months. However, some of Hungary’s entrepreneurs will |
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be anxious to move quickly. |
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Whether fast or slow, deals in Hungary cannot be finalized without a lot of eating, drink- |
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ing, and entertainment. |
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Except for businesspeople trained abroad, Hungarians do not tend to stick to a linear |
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agenda. Foreigners may perceive a Hungarian business meeting as loud and disorga- |
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nized. Despite this perception, Hungarians are effective at accomplishing their goals. |
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Have someone in your party take notes during meetings. |
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Bring plenty of business cards, and give them out to everyone you meet. |
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If you speak English, it is not necessary to have your business card translated into Hun- |
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garian. Indeed, Hungarian has many foreign loanwords, so your title in English may be |
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similar to what it would be in Hungarian. |
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Hungary’s relations with its neighbors (especially those it ruled during the days of the |
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Austro-Hungarian Empire) have not always been cordial. Do not bring up your back- |
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ground if you are of Romanian, Slovak, Polish, or Gypsy descent. |
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Business Entertaining
●Hungarian hospitality is legendary. You will have to fight with your Hungarian counterparts to pay a bill.
●Meals are primarily social occasions. Very little can be accomplished during a lunch, and nothing related to business should be brought up at dinner.
●Expect dinners to last a long time; restaurants usually have musicians or entertainers in the evening.
●If your schedule will not permit a full night’s entertainment, suggest a business lunch instead.
●Once you have signed or completed a contract, throw a cocktail party at a prestigious hotel.
●Hungarian food, wine, horses, and sightseeing are good topics to discuss. So are sports: football (soccer) is the most popular sport, and chess is a national preoccupation.
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Hungarians consider themselves a “nation of horsemen.” If you get outside the city, invitations to go horseback riding are not uncommon.
Cultural Note
Hungary produces a variety of fruit brandies, and an excellent selection of wines. The best-known Hungarian wineproducing region is Tokaj, which produces wines by that name (known as “Tokay” outside Hungary).
When offering a toast, Hungarians will toast to your success—not to their own. In response, you should toast to their success—even if you are all in business together. Hungarians believe that toasting one’s own success is pompous and arrogant.
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Protocol |
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Greetings |
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A handshake is customary not only when being introduced, but also when departing. |
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Men sometimes wait for women to extend their hands before shaking. |
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Only close friends will greet each other with an embrace. For men, the sequence goes as |
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follows: shake hands, embrace, and make cheek-to-cheek contact on the left cheek, then |
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on the right cheek. Close female friends do the same but omit the handshake. |
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Hungarians typically “talk with their hands,” using a lot of gestures. |
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Personal space is small in Hungary; people talk at a closer distance than is common in |
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Extended eye contact is expected. Failure to meet a Hungarian’s gaze will convey that you |
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are untrustworthy. |
Titles/Forms of Address
●Relatives and close adult friends address each other on a first-name basis; they will also call children by their first names. Young people typically use each other’s first names. However, it is prudent to address adults by their titles and surnames until you are invited to do otherwise.
●In Hungary, the surname is listed before the given (first) name. Thus, the Hungarian musicians Béla Bartók and Franz Liszt are known in their homeland as Bartók Béla and Liszt Franz (or, more precisely, Liszt Ferenc, since Ferenc is the Hungarian equivalent of Franz). Foreign names, however, are listed in the order that is customary in their country of origin.
●Always use professional titles (Doctor, Director, Minister, and so forth) when addressing someone. Either use a title and surname (Professor Szabo) or add “Mr.,” “Mrs.,” or “Miss” to the title (Mrs. Architect).
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Gifts
●When visiting a company, it is not always necessary to bring gifts. However, if you do, bring many small gifts and give them out freely.
●Because of a housing shortage, you may not be invited into a Hungarian home. This is especially true in Budapest, where some 20 percent of the total Hungarian population resides. If you are asked to visit, Western liquor (not wine, as Hungarians are proud of the wines they produce) and wrapped flowers (but not red roses or chrysanthemums) are appropriate.
Dress
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Dress tends to be conservative, especially among businesspeople. |
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Appropriate business dress for men is a dark suit, a white shirt, and a tie. Women should |
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wear suits or dresses. |
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Jeans are standard casualwear. Shorts are somewhat uncommon in the city and are best |
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reserved for the beach or the countryside. |
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Standard business wear is appropriate for formal social occasions, restaurants, and the |
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theater. |
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Hungarians enjoy dressing up for their many formal events. Dark suits, tuxedos, and |
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formal gowns are popular. |
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Cultural Note
Chess is one of the most popular pastimes among Hungarians. Hungary has produced world-class chess players, including two grandmasters: Judit and Zsuzsa (Susan) Polgár, and their sister, Zsófia (Sofia), an International Master. Judit is regarded as the strongest female player of all time, and has defeated almost every top player in the world, including Garry Kasparov. Susan was the top-ranked female chess player in the world by the age of fifteen.
Inviting your Hungarian prospects to play a game of chess might be an excellent opening move.