that the party was given by a number of
the private sector generated 80 percent of
wealthy Slovak businessmen, such as Juraj
GDP in the Czech Republic, Slovakia, and
Hungary and 75 percent in Poland.51 Yet
Siroky and Vladimir Poor, who felt that they
were kept from getting their "fair" share of
Central European governments continue to
public contracts. As the Slovak Spectator
spend 44 percent of the region's GDP.
reported:
Businessmen in the region have reacted to
the continuously high government spending
While the Smer party has consistently
in a rational and predictable way. They start-
denied any connection to either man,
ed to finance political parties in order to
both the names on Smer's candidates
secure the future flow of public contracts.
list for the June 17 elections, as well as
Major financial groups, like ING in the Czech
among the party's nominees for ministe-
Republic and the Penta group in Slovakia,
rial posts, contain people with business
bankroll the political establishment, which
ties to Poor and Siroky. For starters, the
includes all mainstream political parties on
new Telecom and Transport Minister,
both center-right and center-left. Private sec-
Lubomir Vazny, served as a board mem-
tor donations to political parties are not
ber and supervisory board chairman of
unique to Central Europe, of course. In the
the Biotika Slovenska Lupca pharma
United States, for example, both major par-
firm from 1997 to 2003, where Vladimir
ties receive financial donations from people
Poor also had a board role. Vazny also
associated with companies as well as trade
served on the board of Nafta with Juraj
unions. Yet the influence of business on polit-
Siroky. The Telecom and Transport
ical decisionmaking has a more corrupting
Ministry is a key player in the economy,
effect on the democratic process in Central
such as in regulating the telecom market
Europe. That is because government trans-
and deciding how highway infrastruc-
parency, parliamentary oversight, judicial
ture funding gets divided up. Economy
independence and the strength of civil soci-
Minister Lubomir Jahnatek, meanwhile,
ety--all of which provide a useful (though
was the director of plastics maker
imperfect) check on the power of special
Plastika Nitra for over a decade and on
interests in the United States--are still rela-
its board of directors from 1992 to 2005.
tively underdeveloped.
The firm is currently controlled by
Private sector funding of mainstream
Siroky, who has been on its board since
political parties provides for a degree of pre-
1996. . . . The Economy Ministry also
dictability and stability. Both the business
wields enormous economic clout, gov-
and the political actors know the "rules of the
erning the issue of business permits and
game." They have an implicit, and sometimes
licenses for everything from shoe
explicit, understanding that funding of polit-
imports to arms exports, and adminis-
ical parties will be rewarded by government
tering the state's energy assets.
contracts and vice versa. The trouble comes
when a particular group of businessmen feels
The Slovak Spectator also found extensive
left out. Some of the past political crises in the
As long as the
previous business connections between Poor
region have resulted from decisions by groups
state remains
and Miroslav Jurena, the minister of agricul-
of disgruntled businessmen to throw their
ture.52
large in size and
financial support behind political "upstarts."
In such cases, the clash between established
In Hungary, the socialist-liberal coalition
scope, there will
special interests and usurpers contributed to
government under the leadership of Gyula
be plenty of
political destabilization and the rise of pop-
Horn (199498) got enmeshed in a party-
ulist parties. The rise of Smer, the party of the
funding scandal as well. In 1996, the state
opportunities for
Slovak prime minister Robert Fico, can be in
privatization and holding company APV
corruption.
part attributed to massive financial support
hired a lawyer named Marta Tocsik to nego-
11