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Enlarged Europe, Shrinking Relations? the Impacts of Hungary's Eu Membership on the Development of Bilateral Relations Between New Zealand and Hungary

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Enlarged Europe, Shrinking Relations? the Impacts of Hungary's Eu Membership on the Development of Bilateral Relations Between New Zealand and Hungary ENLARGED EUROPE, SHRINKING RELATIONS? THE IMPACTS OF HUNGARY'S EU MEMBERSHIP ON THE DEVELOPMENT OF BILATERAL RELATIONS BETWEEN NEW ZEALAND AND HUNGARY ________________________________________________ A thesis submitted in partial fulfilment of the requirements for the Degree of Doctor of Philosophy in European Studies in the University of Canterbury by Adrienna Ember University of Canterbury 2008 CONTENT Page Acknowledgements 1 Abstract 2 Abbreviations 3 List of Figures 5 List of Tables 6 Chapter 1 INTRODUCTION 1.1 Introduction 8 1.2 Problem setting 15 1.3 Empirical literature 16 1.4 Objectives and research questions 19 1.5 Theoretical Framework 23 1.6 Methodology and Limitations 26 1.7 Chapters Overview 29 1.8 Summary 31 Chapter 2 LITERATURE REVIEW AND THEORY 2.1 Introduction 32 2.2 Review of Empirical Literature 33 2.2.1. Introduction 33 2.2.2 Literature on Relations between New Zealand and the EU 34 2.2.3 Literature on Relations between Hungary and the EU 40 2.2.4 Literature on New Zealand and Hungary within the Context of the EU 52 2.2.5 Summary of Empirical Literature 55 2.3 Theoretical Framework 56 2.3.1 Introduction 56 2.3.2 Small State Theory 57 2.3.2.1 Relevance and Development of ‘Small States’ Studies in Europe 57 2.3.2.2 Can Smallness be Defined? 60 2.3.2.3 Milestones in the Small State Literature 63 2.3.2.4 Critiques of Small State Theory 68 ii Page 2.3.2.5 The Applicability of Small State Theory for New Zealand 74 and Hungary 2.3.3 Theory on the Role of Ethnic Networks in International Trade 78 2.3.3.1 Development of Theory 79 2.3.3.2 Critiques of the Theory on Role of Ethnic Networks in 83 International Trade 2.3.3.3 Relevance for New Zealand and Hungary 87 2.3.4 Summary of Theoretical Framework 90 Chapter 3 RESEARCH METHODOLOGY 3.1 Introduction 93 3.2 Qualitative Research Design 93 3.3 Explanations to the Questionnaires and Case Studies 97 3.3.1 Method of Data Sourcing and the Use of Data 97 3.3.2 Sampling for the Questionnaires 97 3.3.3 Sampling for the Case Studies 100 3.3.4 Time Frame and Method of Data Evaluation 101 3.3.5 Role of Researcher 101 3.3.6 Ethical Considerations 102 3.3.7 Validity and Reliability 103 3.3.8 Presentation of Results and Limitations 104 3.4 Summary of Research Methodology 104 Chapter 4 DEVELOPMENT OF RELATIONSHIPS BETWEEN NEW ZEALAND AND THE EUROPEAN UNION 4.1 Introduction 105 4.2 Political and Economic Ties between New Zealand and the European Union 106 4.2.1 Colonial Ties until the 1970s – Perceptions and Reality 106 4.2.2 ‘Butter battles’ between the 1970s and 1990s 111 4.2.3 Development of Political and Economic Relations in the New Century 117 4.2.4 The European Union and New Zealand – New Perspectives 124 4.3 High Level EU Relations – Low Level Publicity? 125 4.4 Summary 131 iii Page Chapter 5 HUNGARY IN EUROPE – OUTSIDE THE EU 5.1 Introduction 133 5.2 Hungary between East and West until the 1960s 134 5.3 ‘Goulash’ Communism and a ‘Backstage’ Transition until 1990 141 5.4 Relations between Hungary and the EU in the 1980s 155 5.5 Transition, Consolidation, and Preparation for EU Accession (1990s) 158 5.6 Accession Negotiations between the EU and Hungary 1998-2002 163 5.7 Summary 166 Chapter 6 HUNGARY IN THE EUROPEAN UNION 6.1 Introduction 168 6.2 Institutional linkages between Hungary and the EU 169 6.3 Hungarian Delegates in Different EU Institutions 172 6.4 Hungary’s Europe Policy 174 6.5 Hungary and the CAP 187 6.6 Hungary’s Foreign Policy 191 6.7 Hungary’s Foreign Trade between 2004 and 2006 199 6.8 Hungary’s ‘Non-euro Readiness’ 202 6.9 Summary 208 Chapter 7 MILESTONES IN THE DEVELOPMENT OF RELATIONSHIPS BETWEEN NEW ZEALAND AND HUNGARY (1850 – 2003) 7.1 Introduction 210 7.2 The First Connections: 1850 to 1979 212 7.3 New Zealand Projects in Hungary in the 1980s 216 7.4 Development of Bilateral Relations in the 1990s 224 7.4.1 Diplomacy 224 7.4.2 Trade 225 7.4.3 Research and Educational Projects 229 7.4.4 Bilateral Publicity in the 1990s 232 7.5 Development of Bilateral Relations 2000-2003 235 7.5.1 Diplomacy 235 7.5.2 Trade 237 iv Page 7.5.3 Research and Educational Projects 239 7.5.4 Bilateral Publicity 2000-2003 240 7.6 Summary 241 Chapter 8 RELATIONSHIPS BETWEEN NEW ZEALAND AND HUNGARY BETWEEN 2004 AND 2007 – MACRO DATA ANALYSIS 8.1 Introduction 244 8.2 Diplomacy 245 8.3 Trade 255 8.4 Migration and Tourism 260 8.5 Research and Educational Projects 263 8.6 Summary 265 Chapter 9 RELATIONSHIPS BETWEEN NEW ZEALAND AND HUNGARY – SURVEY ANALYSIS 2005 9.1 Introduction 266 9.2 Survey Results - New Zealand (May-July 2005) 267 9.2.1 Background of Participants (Section A) 267 9.2.2 Nature of Relations between New Zealand and Hungary (Section B) 268 9.2.3 Perceptions of New Zealand–Hungary Relations since 2004 (Section C) 273 9.2.4 Summary of Survey Results 282 9.3 Survey Results - Hungary (August- October 2005) 283 9.3.1 Background of Participants (Section A) 283 9.3.2 Nature of Relations between New Zealand and Hungary (Section B) 284 9.3.3 Perceptions of New Zealand–Hungary Relations since 2004 (Section C) 288 9.3.4 Summary of Survey Results 296 9.4 Summary: Comparison of Significant Survey Results 297 Chapter 10 FOLLOW-UP SURVEY 2007 10.1 Introduction 305 10.2 Follow-up Survey Results – New Zealand (May-July 2007) 305 10.2.1 Perceptions on New Zealand–Hungary Relations since 2005 (Section C) 306 10.2.2 Summary of New Zealand Survey Results 314 v Page 10.3 Survey Results - Hungary (June-July 2007) 315 10.3.1 Perceptions of New Zealand and Hungary Relations since 2005 315 10.3.2 Summary of Survey Results 326 10.4 Comparison of Significant Survey Results 326 10.5 Summary: Comparison and Evaluation of Macro and Micro-level Results 331 10.5.1 Diplomacy 331 10.5.2 Trade 335 10.5.3 Tourism, Research, and Education 336 10.5.4 New Zealand’s Visibility in Hungary 337 Chapter 11 CASE STUDIES 11.1 Introduction 339 11.2 HUNZAG Kft 341 11.2.1 Background 341 11.2.2 Situation Analysis (2005) 343 11.2.3 Follow-up Survey (July 2007) 345 11.2.4 Summary of Case Study 346 11.3 Bentley Hungary Kft 348 11.3.1 Background 348 11.3.2 Situation Analysis (2005) 349 11.3.3 Follow-up Survey (July 2007) 352 11.3.4 Summary of the Case Study 354 11.4 Aspiring Language Institute Ltd. 356 11.4.1 Background 356 11.4.2 Situation Analysis (2005) 357 11.4.3 Follow-up Survey (September 2007) 359 11.4.4 Summary of Case Study 360 11.5 Study Tours Ltd. 362 11.5.1 Background 362 11.5.2 Situation Analysis (2005) 362 11.5.3 Follow-up Survey (September 2007) 364 11.5.4 Summary of Case Study 365 vi Page 11.6 Summary: Evaluation of Case Studies 366 Chapter 12 CONCLUSION 12.1 Introduction 370 12.2 Summary of Problem Setting 371 12.3 Theoretical Reflections 372 12.4 Relationship to literature 377 12.5 Practical Relevance of Findings (Implications) 380 12.6 Recommendations 392 12.7 Overall Conclusion 399 Bibliography 401 Appendix I: List of Research Contributors 2005-2007 423 Appendix II: Cover Letter to Potential Research Participants 425 Appendix III: Participants List (Template) 426 Appendix IV: Questionnaire Type “A” (Individual), 2005 427 Appendix V: Questionnaire Type “B” (Business), 2005 431 Appendix VI: Questionnaire Type “C” (Non-profit, Public or Governmental 436 Organisations) Appendix VII: Cover Letter for Follow-up Survey 2007 441 Appendix VIII: Follow-up Questionnaire 2007 442 1 ACKNOWLEDGEMENTS Firstly, special thanks must go to my supervisor Professor Martin Holland for putting his trust into this challenging project. Professor Holland was not just inspirational, but has also been flexible, open minded, and encouraging throughout the whole research process, beyond all expectations. In addition to providing research guidance, his vision, generosity towards students and colleagues, and unique people skills have provided me with an invaluable personal experience. Second, I would like to thank my co-supervisors Dr. Natalia Chaban (NCRE), Dr. Milenko Petrovic (NCRE) and Professor Tibor Palánkai (University of Corvinus, Hungary) who supported me in the special areas of their expertise. Special thanks also to Dr. Jessica Bain (NCRE) for reviewing the thesis despite being under great time pressure, for asking questions and providing invaluable advice. This research could not have been realised without the support of the more than 60 people in New Zealand and Hungary listed in Appendix I of the thesis, who were eager to share their valuable time and insights with me. I would like to specifically acknowledge the individual contributions of Judy Kollár (Aspiring Language School, Honorary Consul of Hungary), Marianne Kovalszky (HUNZAG Kft), Robin McCone (PriveWaterhouseCoopers Budapest), Rezső Sárdi (Honorary Consul of New Zealand), Klara Szentirmay (Honorary Consul of Hungary), Gavin Thompson (Bentley Hungary Kft), Gerard Thompson (Meat and Wool New Zealand), Scott Alexander Young (Film Director and Producer), and Don Walker (ex-New Zealand Ambassador to Hungary). In writing this thesis, I have not been alone in facing the inevitable challenges: my husband Stefan Doll has provided continuous support with reviews and discussions, has helped our children Viola, Flavián, and from the mid-research period onwards, baby Mandolin to cope with my absence and time pressures.
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