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Subject: The Hungary Report 1.40 Part II
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    ===========
    FEATURE STORY

    Learning to Discriminate
    by John Horvath
    Copyright (c) 1996

    It has been frequently said that experience is the worst kind of
    teacher because it gives the test first and the lesson afterward. For
    the majority of foreigners working in Hungary as guest teachers, this
    saying has more than just a ring of truth to it.

    The Hungarian higher education system is rife with corruption,
    especially in the area of foreign language teaching. Money that has
    been set aside to pay for guest teachers is repeatedly and
    unashamedly squandered by institutions -- frequently going into the
    pockets of department heads, vice-principals, and principals. What
    makes the situation different from most corruption cases is that it
    is tacitly accepted at all levels of the educational system -- right
    up to the Ministry of Education. Furthermore, it sends a message that
    if you are a foreigner who is not aware of your own rights then you
    deserve to have you rights trampled on and be discriminated against.
    Hence, the "guest" aspect of foreign teachers working in Hungary is
    ironic in more ways than one.

    For several years now the Ministry of Education has been running what
    has been termed the "guest teacher program". A guest teacher is a
    teacher from a foreign country working in Hungary on a contractual
    basis and supported in one way or another by the Ministry of
    Education. Higher educational establishments have an option to hire
    guest teachers through the Ministry of Education for a teaching
    assignment based on the Ministry's program.

    The main objective of the program is to assist in the training of
    language teachers at universities, upper primary teacher training
    colleges, lower primary teacher training colleges, and kindergarten
    teacher training colleges. According to the Ministry, "there is a
    great demand for improving language teaching in colleges specializing
    in technology, economics and the arts." As far as the Ministry is
    concerned, foreign teachers should be mainly involved in the teaching
    of methodology, rhetoric, linguistics, language development, and
    special subjects such as civilization courses. In addition to this,
    the Ministry also considers it among the duties of guest teachers to
    be involved in the organization of language development courses,
    control of (and assistance in) teaching practice, as well as help in
    materials development and the compilation of tests.

    In short, guest teachers can be considered as gifts to colleges and
    universities. The Ministry of Education even has a special budget set
    aside for the program. Thus, at the beginning of each academic year
    (as far as the Ministry sees it, a guest teacher is employed from the
    beginning of September to the end of August) HUF 1 million for each
    guest teacher employed is forwarded to the host institution. From
    this money, the expenses of a guest teacher is fully covered: wages
    for an entire year (12 months); a Christmas bonus (known as the 13th
    month salary); and living expenses, also known as "flat money".

    Though the Ministry of Education has all the rules and regulations
    concerning the employment of guest teachers freely available upon
    request, almost none of the guest teachers presently employed are
    aware of the existence of these rules and regulations, or even what
    they're about. Subsequently, host institutions have been taking
    advantage of this situation and have thus been milking the program
    for all it's worth. There are many ways in which institutions have
    been short-changing foreigners teaching in Hungary. The most common
    has been through shortened work contracts, usually for a period of
    only 9-10 months instead of the full year. Not realizing that money
    has been provided to pay for their summer holidays, the vast majority
    of guest teachers have unhesitatingly signed such contracts.

    Most of the time teachers work without a clear contract. At Veszprem
    University for example guest teachers signed two contracts, one with
    the university and the other with the department, of which one
    frequently conflicted or contradicted the other. In addition to this,
    it is not uncommon for foreign teachers to find out that they end up
    getting less than what was actually promised. For instance, at
    Miskolc University, teachers were promised HUF 1,500 per hour to
    teach post-graduate courses only to find out that in the end they
    were getting only HUF 1,200 per hour.

    Throughout Hungary guest teachers are not informed about working
    regulations or their rights. In some cases, teachers have been
    employed and not informed about their work visas, only to find out
    afterward that they couldn't get paid for work already done and were
    subsequently fired -- this despite the fact that the Ministry makes
    it very clear in its program guidelines that "the work permit has to
    be arranged by the host institute." Likewise, it is the
    responsibility of colleges and universities to arrange other
    documents necessary for a foreign teacher's stay in Hungary, such as
    residence permits and the National Health Service cards -- not only
    for guest teachers but their families as well.

    Not only are foreign teachers working in Hungary not aware of their
    rights, but they are uninformed about how much money schools receive
    in support of their position. Many do not know, for instance, about
    the flat money. Although the money can't be paid directly to a guest
    teacher, a flat allowance of HUF 40,000 for teachers in Budapest (HUF
    30,000 for those elsewhere) is nevertheless available to pay for
    their housing costs. Since salaries are ridiculously low (HUF 25,000
    per month, gross), this disproportionate allowance helps to make up
    for the low pay.

    Since this sum of money from the flat allowance is quite substantial
    -- almost half a million forints per year for each guest teacher --
    abuse is, not surprisingly, widespread. Many teachers are put up in a
    teachers hostel, pay for their own lodgings (without little or no
    financial support), or are even housed at the college or university
    itself. In a lot of places, employees at the host institution make a
    business of this practice by providing accommodation to guest
    teachers, who in turn take this as a token of generosity. The flat
    money, meanwhile, disappears in the bowels of the school's
    administration, some of it usually winding up in the pockets of some
    of the administrators.

    Yet it's not only foreigners who are frequently fooled, but the
    Ministry of Education itself. In some higher education institutions,
    money for guest teachers are procured from the program even when no
    guest teachers exist for the post. In the same way, guest teachers
    are hired even when there are no classes to teach. Since money from
    the program is transferred in one block sum at the beginning of the
    academic year, the interest earned on the amount (approximately 30%
    p.a.) still makes it a worthwhile venture.

    WAYS AND MEANS
    --------------

    There are many creative ways in which schools pursue and justify
    their fraudulent activities. First and foremost, there is simply no
    information. When information is forthcoming, it is often very
    confusing and unreliable. Still, for those with an inkling to what is
    going on, they are subsequently sent on a bureaucratic merry-go-round
    that grinds down their resistance to the point where they just simply
    give up trying.

    If teachers somehow do get to the point of finding out some reliable
    information concerning their work conditions and pay, department
    heads then resort to plain lying, usually preceded with the phrase
    that "you just don't understand the situation" or "this is how things
    works here in Hungary." Through a mesh of confusing statistics,
    teachers who question their superiors are quickly humbled;
    exaggerated amounts paid in taxes and overhead costs are frequently
    cited. For example, at a department meeting at the Budapest Teacher
    Training College, when teachers complained about low wages for the
    extra hours of teaching they do, the head of department pointed to
    the fact that for every HUF 500 paid in wages the college is actually
    paying HUF 1,500 because of taxes.

    Since extra hours usually do not have employment taxes attached to
    them (and even if it did it would be only 46.7%), this was a thinly
    veiled attempt at creative bookkeeping. In the words of Mark Twain:
    "Lies, damn lies, and statistics." While it would be tempting and
    easy to point the finger at a few dishonest individuals, what is
    shocking is this system of corruption seems to be institutionalized.
    Furthermore, the motivation for such behavior can't be put down to
    just simple greed. Rather, it seems to be a Hungarian method of
    dealing with shrinking budgets and downsizing.

    Last year, Hungarian higher education institutions were rocked to
    their foundations by massive government cuts, which resulted in job
    losses of approximately 20%. Ironically, many of those who lost their
    jobs were either non-conformists, young members of staff (who
    incidentally, provided hope in terms of new teaching ideas, methods,
    and enthusiasm), and foreigners. Considering that the guest teacher
    program has a separate budget of its own which was not affected by
    the government cuts, the loss foreign teaching staff that resulted
    from the wave of cuts last year is incomprehensible.

    During last year's teacher cuts, many foreigners were needlessly
    sacrificed. Unfortunately, it appears that if further government cuts
    will be slated for the future, it is more than likely that history
    will repeat itself. As a department head succinctly put it, "if the
    government cuts the number of teachers, it's the native speakers that
    will be on the front lines and who will have to go first."

    Native speaking language teachers lost their jobs despite the fact
    that the cuts in question did not affect the guest teacher program.
    While everyone was in the dark and tried to forecast what kind of
    reductions there would be, no college or university was willing to
    make any commitments concerning native speakers. This, despite the
    fact that the Ministry had made it clear that the jobs that were to
    be cut were full-time staff positions (i.e. Hungarian jobs).

    Nevertheless, most native speakers found themselves on the chopping
    block. Meanwhile, Hungarian staff were busy jockeying into position
    and made efforts to please department heads and the administration in
    order to secure their jobs (better known as brown-nosing). In the
    end, some Hungarian positions were preserved and financed using money
    from the guest teacher program.

    Aside from the myriad of financial scandals, a lot of guest teachers
    are disappointed and disillusioned simply because they find that they
    are not being used to their full potential. Instead, they are
    relegated to doing menial tasks, many of which are contrary to the
    nature of the Ministry's objectives for the guest-teacher program.

    At this point, the question naturally arises about what the Ministry
    of Education has been doing while the guest teacher program is being
    abused and its objectives are not being met. It seems that the
    Ministry is fully aware of the problem but feels that there is
    nothing it can do. As far as the Ministry is concerned, at the
    beginning of each semester it determines how many guest teachers are
    employed and then merely transfers the money. There is no follow-up
    to how the money is spent nor is there any form of quality control.

    A reason most cited by the Ministry for its inaction is that there is
    actually nothing they can do. As the program is set up, it is not
    their responsibility to enforce adherence to the program guidelines.
    Another reason for the Ministry's laissez-faire attitude is that they
    are unable to do anything even if they wished to because there are no
    resources available to properly administer the program.

    These excuses are a bit unusual when considering the amount of money
    that is spent on the program. Anonymous sources have pointed out that
    what the Ministry is actually doing is indirectly supplying an
    alternative mode of funding. As the theory goes, the Ministry has
    never been fully supportive of the cuts it was forced to make. Thus,
    by turning a blind eye to such mismanagement of funds, universities
    and colleges are able to cushion the effects of the government's
    austerity measures.

    If this is the case, it still does not justify the activities
    undertaken by Hungary's higher education institutions. Moreover, it
    tarnishes the image of administrative bodies and sends a message to
    foreign governments and businesses that Hungarian (and Eastern
    European) management is synonymous with corruption and inefficiency.
    Ironically, the corruption that exists in higher education seems to
    mirror a much larger trend. White collar crime in Hungary trebled
    last year, with losses to the state resulting from such crime at  HUF
    11.7 billion (US$ 80 million), a 131% increase from the previous
    year.

    Unfortunately, the administrative practices of colleges and
    universities have already extended themselves beyond the Ministry's
    guest teacher program. The TEMPUS initiative, launched by the
    European Commission under the auspices of the PHARE program for the
    purpose of financing joint European projects between members of the
    European Union and Eastern Europe, has undergone similar problems
    when dealing with higher education institutions.

    With the socio-political changes implemented at the beginning of the
    decade, schools unexpectedly found themselves thrust into the
    capitalist market. In order to help them adjust to this new scenario,
    western assistance in the field of education has been mostly in the
    area of income-generation. Principals have been made to view their
    positions as managers of financial enterprises, thus relegating
    pedagogic concerns to the background.

    TEMPUS is an example of such western assistance in the field of
    education. While their initial objectives deserve merit, the way in
    which programs like TEMPUS are run is far from ideal. Western
    universities and colleges tend to benefit most from projects in terms
    of staff mobility and the activities planned. In addition to this,
    most of the grant money goes to pay for the services provided by
    western partners, on the one hand, and office equipment
    (photocopiers, computers, etc.) provided by western industry, on the
    other.

    It is without doubt that money is on the minds of college and
    university administrators worldwide. Thus, income-generation is an
    activity undertaken by the vast majority of higher education
    institutions around the globe. In Hungary, however, there is a slight
    difference. Income-generating activities are pursued for the purpose
    of creating a slush fund and a capital base from where to supplement
    executive salaries that are low in comparison to the private sector
    as well as a to finance holidays and "shopping trips", all of which
    are regarded as fringe benefits to be enjoyed by management. Since
    administrators working for multinational firms earn up to five times
    more than their university counterparts, income-generation is seen as
    an attempt to redress this balance.

    While college and university administration use the income imbalance
    between the private and public sectors as an excuse to justify
    diverting money to their own pockets, teaching staff are left to fend
    for themselves with the pittance they receive as a normal salary.
    Subsequently, the rift between the haves and have-nots is widened
    among those educators who are fortunate enough to participate in
    income-generating activities and those who are not. Western financial
    assistance in the field of education is used, therefore, not to
    improve the quality of education, i.e., through the purchase of
    educational materials or related activities. Instead, it is being
    used by most institutions as start-up capital for income-generating
    activities that in many instances have little to do with education.

    Mismanagement of funds, endemic to most colleges and universities, is
    no secret to those working in higher education institutions. Yet the
    teachers themselves seem to adopt an apathetic reaction to the
    corruption that exists. One explanation for this apathy among
    Hungarian teachers is because of a general psychological condition
    inherited from the past. Laszlo Petrovic-Offner calls this a state of
    "learned helplessness", in where people under the previous regime
    were conditioned to being unable to take responsibility, not only for
    their own actions, but for broader issues as well. Others dismiss
    this prognosis and argue that people are simply afraid of change,
    brought about their unwillingness to take responsibility for their
    actions. In conjunction with this, there is a lack of initiative; it
    is easier to pretend not to see or hear anything.

    Whatever the reason, foreign teachers working in Hungary are just as
    apathetic toward the whole situation. For some, the knowledge that
    there exists no legal recourse is discouraging enough. Others have
    become defeatist, realizing that to change the education system is
    paramount to changing all of society. Still, others don't care; since
    many guest teachers are here for the short-term (only one or two
    years), they feel the effort is not worth the hassle since they will
    be leaving soon anyway. Thus, foreign teachers in Hungary who are
    slightly aware of what is going on are in a quandary about what to
    do. They are a fragmented group and there exists no solidarity among
    them since their purpose for being in Hungary are diverse. Some, such
    as those working with the British Council, are unable to become
    actively involved because of their separate contract with a sending
    organization.

    In the end, what is far too often overlooked is the end receiver of
    the educational process -- the students. While teachers are
    short-changed and others bemoan the managerial skills of
    administrators, students are being robbed of their education. There
    has been a clear decline in the quality of education despite the
    increase in the number of foreign professionals working in Hungary.
    Because of a systematic lack of information, teachers are unprepared
    and, in many cases, unqualified to teach certain subjects.
    Conversely, some of Hungary's best teachers (foreign and native
    alike) have become disillusioned and have left the field of
    education, usually for more money and peace of mind. Many foreigners
    have prematurely left Hungary, harboring bitter memories which have
    translated into a negative outlook of Hungary and Hungarians. Others,
    meanwhile, have simply lost faith and any hope in Eastern Europe's
    transition toward democracy. As a teacher in Miskolc was fond of
    saying: "the more things change around here, the more they actually
    stay the same."

    John Horvath (h8801joh@ella.hu) is a writer and educator based in
    Budapest.

    ===============
    Parliament Watch

    By Tibor Vidos
    Copyright (c) 1996

    Advice for Medgyessy: Watch for the ticking bomb

    Hungary has a new Finance Minister. Peter Medgyessy has been sworn in
    and has taken over for Lajos Bokros. Domestic and international
    business circles have reacted with relief, as expressed in the rise
    in the stock exchange price index.

    The prime minister managed to find someone willing to take the
    probably least popular job in the country and got the blessings of
    both governing parties at the same time. Though not a rabbit the size
    of Mr. Bokros and no a surprise at all, Horn pulled a formidable
    minister out of his hat.

    The personnel l issue thus resolved, attention will now hopefully
    shift to substantive issues. These are going to be far more difficult
    and take much longer to cure than a mere resigned minster of finance.
    Reform of social security and pension systems is the essential item
    on the agenda. And it's exactly the issues Bokros stumbled over.
    Medgyessy will no doubt be a more graceful elephant in the political
    china ship; but whether he can be more effective in cutting the
    privileges of a four-decade-old social security bureaucracy remains
    to be seen.

    Yet Medgyessy has achieved one goal already. The powers of the
    economic cabinet - a subgroup of ministers headed by the Finance
    Minister - have been increased significantly. In the future the
    government will not decide on economic concepts, loan guarantees, the
    allocation of budget reserves and other major economic issues without
    the cabinet's consent. This move is clearly aimed at strengthening
    the finance minister's position in the economic decision-making
    process. The risk of this newly concentrated power, however, is that
    it contradicts Horn's own recent efforts to centralize more and more
    decision-making power in his office. It is up to Medgyessy to keep an
    eye on the ticking bomb under his seat.

    Another MP who should tread carefully is Imre Duna, minister of
    industry and trade. According to press reports, Horn has rejected
    Dunai's study of conflict of interest investigations in the
    allocation of Russian debt quotas. Not a good omen for Dunai's
    survival. In the meantime, the government faces a parliamentary
    inquiry into Socialist politicians' alleged conflicts of interst over
    Russian debt. The head of the Socialist Party's entrepreneurial
    division Otto Hujber, has been already relieved from the committee
    evaluating the allocation of Russian debt. It became evident that he
    was present on both sides of the table.

    Conflict of interest regulation and sleazy practice have reached
    unbelievable low levels in Hungary. One can only hope that the
    ongoing investigation will help this issue become one the main items
    on the 1998 election agenda. Not that the morality of the different
    political parties will change much, but some legislation on the issue
    may take effect at that.

                                * * *
    Tibor Vidos is a lobbyist and political consultant in charge of the
    Budapest office of GJW Government Relations. <vidos@ind.eunet.hu> or
    <CompuServe: 76702,2227> A version of this article appeared in the
    Budapest Business Journal.

    ===========
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    =================
    END TRANSMISSION






