vatization of the most lucrative state enterprises.
Sometimes, the politicians in the region try
Former members of the communist secret
to hide their previous political associations.
police played an important role in this asset grab
When that happens, crises ensue. In 2002, for
by using phone tapping, surveillance, and--
example, a Hungarian newspaper called
occasionally--assassination, to undermine or to
Magyar Nemzet revealed that Prime Minister
eliminate potential competitors.
Peter Medgyessy worked at the Ministry of
Take Vladimir Lexa, one of Slovakia's rich
the Interior prior to the end of communism
movers and shakers. He and his son, Ivan Lexa,
in 1989. Medgyessy argued that he worked
do business together. Fabulously wealthy, they
there to protect Hungary from interference
were among Slovakia's first billionaires. In a
by the Soviet KGB, but few believed him.
recent interview Vladimir Lexa said, "If you
Throughout Central Europe, ministries of
combine common sense with hard work,
the interior were crucial to communist con-
detachment, understanding and seriousness,
trol over the populace. Consequently, their
you have to succeed." A cursory look at their
employees tended to be loyal communists,
background suggests that much more than
many of whom were directly approved by
Moscow. Medgyessy resigned.57
"hard work" and "detachment" were behind
their amassed fortune. Ivan Lexa, for example,
In 1996, Gromoslaw Czempinski, the
The lack of the
used to head the Slovak Intelligence Service.
Polish minister of internal affairs, shocked the
rule of law is now
He was one of the men pardoned by Meciar in
nation by revealing the identity of a KGB
1998. His father, Vladimir, was the undersecre-
agent with the code name "Olin." Czempinski
recognized as a
tary of the Slovak Communist Party prior to
alleged that Olin was none other than the
major barrier to
1989. In the early 1990s, Vladimir Lexa "priva-
socialist prime minister Jozef Oleksy. Oleksy
resigned.58 Similarly, Janusz Tomaszewski, the
a speedy and
tized" a government-owned mill. Though the
mill was valued at about $34 million, Lexa pur-
Polish deputy prime minister, was dismissed
successful
chased it for $1 million. He then made a for-
from Jerzy Buzek's center-right government
economic
tune by processing grain that he bought from
(19972001) after being accused of collaborat-
ing with the communist secret police.59
the state for $120 per ton though the market
transition.
price at the time was over $166 per ton.60
Former communists continue to have a large
presence in Central Europe's economic life. A
vast majority of the bureaucrats who ran the
Corruption Undermines
centrally planned economies in the region
Democracy and Capitalism
before 1989, including managers of state enter-
prises, directors of banks, and import-export
specialists, were members of the communist
Corruption in Central Europe involves
parties or agents of the secret police. Many knew
more than just national politicians. After the
each other and were friends. They were often
collapse of the Berlin Wall, communist cen-
indebted to one another through past
tralization was gradually replaced with devo-
favoritism, which enabled the former commu-
lution, partly as a result of pressure from
nists to get around the inconveniences of daily
Brussels. The EU is increasingly organized
life under communism, such as, for example,
along subnational lines, because of the pre-
material scarcity. By the time communism fell,
vailing opinion that the centralized nation-
the "Red Mafia" was well prepared to take
state was responsible for the horrors of
advantage of the changing times ahead.
World War II. But devolution was also driven
Consequently, the people with access to perti-
by the desire of national politicians to bring
nent financial information that included the rel-
decisionmaking closer to the people and give
ative profitability of various state enterprises
citizens more control over the quality of pub-
were the ex-communist managers. The man-
lic services they receive. Regrettably, the
agers then turned to the ex-communist bankers,
strength of family and business ties, and the
who provided discounted loans needed for pri-
virtual nonexistence of local civil society
13