György Matolcsy: Eurasian duos

The economic integration of Eurasia began during this century; this included the establishment of strategic economic alliances between Germany, the V4 countries and East Asia.

Visitors leave a building that leads to the cable car of the YTN Seoul Tower (not pictured), commonly known as the Namsan Tower, in Seoul on October 12, 2021. (Photo by Anthony WALLACE / AFP) Fotó: Anthony WALLACE / AFP

The Hungarian national colors also symbolize strength and courage (red), purity (white) and harmony with nature (green). The colors of the two flags complement each other well because strategic, economic cooperation is based on willpower and competition, reliability, and harmony. 

Political strategy

Both countries are seeking geopolitical balance for national development and economic success. South Korea is balanced among four of the most difficult counterparts of this day and age: USA, China, Japan, and the South Koreans.

Hungary is in the same position at the intersection of the USA, Germany (EU), Russia, Turkey, and China. Our political strategy is similar because we are not aiming for success in the wider field of politics, but rather in national development, especially the economy. The aim of our political strategy is to ensure that the geopolitical field of power does not block our national path towards development. Today, that means avoiding avoid the new US-China cold war battles for both Hungary and South Korea. For Hungary, it also includes avoiding a few more sources of conflict: US versus Russia, sinkholes left by the EU, and the reemerging Balkan tensions.

Basic aim of national strategy is independence

Both countries have been all too familiar with imperial and colonial historical injustices, thus at the heart of both nations is the effort to preserve freedom, independence, and self-determination. Both countries recognized that political and military resources are not enough to this end – economic colonization was a constant threat in both sizable geographical/geopolitical spaces. South Korea realized that only the best can be truly independent in the world economy. Hungary is beginning to realize that it is cruising in a region and time where it is only possible to retain talent, expand knowledge, acquire technology, and accumulate capital with equal or higher competitiveness as its European counterparts.

Renaissance of the nation-state

Just as a new 500-year-era began in Europe with the great geographic discovery of 1492, similarly the next even hundreds of years are marked by the technological breakthrough of the internet in 1996. The first decades of this were particularly fruitful with creative, intellectual, and technological innovations. Both countries in our analysis want to take advantage of this new renaissance with the strengthened role of the nation-state (to quote Norbert Csizmadia).

The two countries have founded their strategy for the future on the nation-state. South Korea has been more successful than Hungary regarding the following: economic development, quality of life, life expectancy, general health, the health care system, primary and higher education, and transportation infrastructure. The joint future performance of all Eurasian duos is determined by the improvement of the weaker counterpart. There are many good examples of this in South Korea, as well as in Singapore, China, and Japan.

Equilibrium growth

Many of the South Korean keys to success can be used to open doors in Hungary, however there are some areas where other alternatives need to be employed. South Korea’s dizzying development is based on a tension between opposites as its yin-yang symbol along with the struggle between sky-earth and fire-water, suggests. In South Korea, the regional and geographical layout is relatively balanced (in contrast to Hungary’s wide differences) but serious tensions have emerged in society. Their levels of social inequality are higher than Hungary’s: between young and older people, active and retired, full-time and part-time employed, world-class large companies and local small businesses, those attending elite universities and the rest, wealthy and poor families, those with little or a lot of indebtedness.

For both of us, sustainable development requires consistency between growth and equilibrium in all elements of the “equilibrium growth” formula. They have heavy imbalances among social, demographic spheres and families; we have imbalances in our finances, public services and between our regions. The two countries complement each other well, so it would be a worthwhile effort to expand cooperation in these territories.

P. S.

“The only true wisdom is in knowing you know nothing.” ― Socrates

Photo: illustration (Fotó: Anthony Wallace/AFP)