ABSTRACT GLOBALIZATION: The Structural Changes of the Hungarian Sport life after the Communist Regime BY Győző Molnár The purpose of this work is to gain an understanding of the process of globalization and to address the possible consequences of globalization in Hungary and how the Hungarian society is reacting to these changes. Another purpose of the present work is to interpret the influence of globalization on post-communist Hungary concerning the changes in its sport life. This paper provides general information about the most discussed ideas regarding globalization. For a better understanding of the recent political, economic and cultural situation of Hungary, the history of the country’s last century is outlined. In addition, certain aspects of Hungary’s sport life is introduced regarding the political eras, economic circumstances, and societal structures in the transition period between the communist and the post-communist periods, and Hungary’s accommodation to the process of Europeanization. GLOBALIZATION: THE STRUCTURAL CHANGES OF THE HUNGARIAN SPORT LIFE AFTER THE COMMUNIST REGIME A Thesis Submitted to the Faculty of Miami University in partial fulfillment of the requirements for the degree of Masters of Science Department of Physical Education, Health and Sport Studies By Győző Molnár Miami University Oxford, Ohio 2002 ADVISOR ______________ Dr. Alan Ingham READER _______________ Dr. Robin Vealey READER _______________ Mr. Peter Lindsay TABLE OF CONTENTS Introduction………………………………………………………………………...1 - Question of Hungary………………………………………...………..2 - Structure of this work…….…………………..………………………4 Chapter 1 -Overview of the globalization literature………………...………………….5 - Positive side of globalization……….…..……………….…………....6 - Negative side of globalization – critical globalization theory……......8 Possible outcomes of globalization………………………………………….13 - Homogenization – monoculturalism…………………………….…..13 - Heterogenization – multiculturalism………………………………..14 - Transculturalism…………………………………………………….16 Responses to globalization…………………………………………………..18 - Glocalization………………………………………………………...18 - Regionalization……………………………………………………...21 - Hybridization………………………………………………………..24 - Nationalization………………………………………………………28 Chapter 2 Hungary-historical background - National identity………………………………………….…………32 - Austro-Hungarian Monarchy ……………………………………….37 - Soviet annexation…………………………………………………....42 - Europeanization……………………………………………………..47 Chapter 3 Hungary in the communist epoch………………………………………….52 - The influence of communism on soccer………………………….....53 - Centralized doping…………………………………………………..61 - A positive sport related feature of centralization…………………....66 ii Chapter 4 Post-communist Hungarian sport and globalization...................................70 - Soccer and globalization…………………………………………….72 - Westernized doping regulations………………………………….....77 - Sport and Physical Education in the transition period………………80 Chapter 5 Conclusion…………………..………………………………………………..85 - Limitations and shortcomings of this study…………………………87 - Recommendations for future research………………………………89 Notes……….……………………………………………………..…………………90 References……..………………………………………………………..……….....99 Appendix…………..……………………………………………………………...105 Table 1……………………………..…………………………………….106 Table 2……………………………..…………………………………….108 Table 3……………………………..…………………………………….110 Graph 1……………………………..……………………………………110 iii I dedicate this work to my parents who encouraged my studies and supported me emotionally, despite the fact, that they missed my presence so much. iv ACKNOWLEDGEMENT I would like to thank my family for their support and my academic advisor Dr. Alan Ingham for his patience, outstanding personal and academic support, and for the knowledge he was willing to share with me. I also want to thank the committee members Dr. Robin Vealey and Mr. Peter Lindsay for their valuable comments and timely advice. In addition, I would like to thank the PHS staff for creating a friendly working environment and Christena for being my friend. v INTRODUCTION Scaling the highest mountains, traversing the most difficult terrain, exploring the depths of the sea and skimming across the oceans, soaring through the skies and descending into deep valley gorges, tunnelling far into the interior of the earth and shaping its exterior with both natural and artificial surfaces and structures, sportsmen and sportswomen straddle the globe, and the sportization of the planet seemingly knows no bounds. Maguire, Global Sport, 1999 (Italics added) In the last few decades of human history, we could be the eyewitnesses to the emergence of an accelerated technical development concerning almost all-industrial products. This technical development greatly influences our everyday life and the structures of our societies. Nowadays, we have faster and more reliable cars and airplanes than ever before. Moreover, mainly because of the improved computer and telecommunication technology, we can get to know information about the happenings on the other side of the world within a few seconds. That is, communication has become faster, a milestone of improvement, and a significant part of our life. As Martin-Barbero (1999) writes, “Without communication there is no development” (p. 352). The globalization process is speeded up by technical development (Herman, 2000). In addition, the term ‘globalization’ has become global itself (Maguire, 1999) and global studies, especially globalization studies have become something of a bandwagon today (Friedman, 1994). The popularity of this topic shows the importance and currency of this phenomenon. The influence of globalization or Americanization or Westernization (more on this later) can easily be seen in the case of post-communist countries. Communist regimes left Eastern European countries with bloated and inefficient industries that suffered from decades of neglect, outdated technology, heavy debt, and environmental problems (Energy Information Administration). As the communist political system vanished and the borders of the post-Soviet countries became open, foreign firms 1 immediately wanted to insert their presence in their markets. Eastern and Middle Europe under central planning was virtually closed to foreign investors. Although direct foreign investment has increased in these areas, inflows remain modest. Direct foreign investment has been slow to materialize due to continuing macroeconomic instability and insufficient institutional reforms. To date, most foreign investment has been through joint ventures. Each country has a unique socioeconomic context, causing variation in the transition process across all countries in the region. Different ownership structures are emerging under different privatization schemes. Reform has continued, even in the face of economic decline and decreasing production, since the fall of communism and the beginning of efforts to move to market economies. Only now are these countries beginning to recover economically, spurred by exports and increasing domestic demand. Some of these countries tried to attract foreign businesses by creating temporary tax discounts. For instance, in Hungary, the foreign franchises were exempted from tax in the first five years of the operation and afterwards they had to pay only 60 percent of the total tax for the next five years (this policy was the creation of the first freely elected government right after the communist epoch). But there was a contradiction in terms of temporary tax discounts: On the one hand, it was worth building a factory for a foreign company, but on the other hand, this policy did not become popular because it helped the exploitation of Hungary and Hungarians1. Therefore, as the outcome of this disposition, the party which created it was not re- elected. Anyway, it was an important step for Hungary to be placed into the mainstream of globalization and the European economy again, although it was not popular at all. Question of Hungary In the case of Hungary, it is difficult to define the proper approach in terms of analyzing data from a globalization perspective because the society is complex and contradictory per se. It means that at this stage of the research I cannot state for sure which way(s) the globalization process is taking shape in Hungary. In addition, it cannot be asserted which type(s) of local responses to globalization is being formed in 2 Hungary at the present time. Therefore, the main purpose of this paper is to address the possible consequences of globalization in Hungary and how the Hungarian society is reacting to these changes. Moreover, another important purpose of the present work is to interpret the influence of globalization on post-communist Hungary concerning the changes in sport life. How has the sport of post-communist Hungary changed and how have the different factors (e. g.: economy and politics) influenced it since the new democratic political system replaced the old communist one. Those changes would be depicted the best if the situation of sport during the communist period was compared to the present condition of sport in Hungary. In order to reach my goal in terms of introducing and explaining the different conditions and circumstances of sport life in Hungary during and after the communist epoch, I am going to analyze the past and present conditions focusing on the financial metamorphosis of sport organizations in Hungary. According to my perspective, these changes have been directing Hungary and the Hungarian sport life toward the capitalist way of organizing their