Serving the Poor or Serving the State? - The Ambiguities of Co-Optation in Poverty Governance in Authoritarian Hungary

In recent decades, nonprofit organizations have increasingly become involved in welfare service delivery for marginalized populations across Europe. This trend aligns with the spread of neoliberal governance in transformed welfare states, where neoliberal economic policies have undermined democratic principles. Authoritarian neoliberalism, which combines political authoritarianism with economic marketization, has shifted civic space toward nonprofit organizations in service delivery while restricting their public discourse. These organizations often become co-opted by authoritarian states, supporting conservative agendas and legitimizing neoliberal policies rather than advocating for structural change.

Since 2010, Hungary has exemplified de-democratization, marking it as the first undemocratic member state of the EU. The Hungarian state has employed sector-specific strategies against civil society organizations, depending on their political alignment with the neoconservative discourse. This has led to the “religionization of the welfare state” (Lendvai-Bainton and Szelewa 2021), where churches and faith-based organizations (FBOs) have become the state’s preferred partners in delivering social services to the poor.

A notable example is the Hungarian Charity Service of the Order of Malta (Málta), which has taken on the role of providing complex services in rural, marginalized communities abandoned by the state. Over time, Málta has gained significant power, shaping policies, advancing a large-scale social integration programme, directing its resource distribution, and determining the list of implementing organisations and the methodology for service delivery. Málta's operations have been marked by a tension between co-optation and progressive experimentation with institutional changes aimed at tackling poverty. This presentation will explore whether Málta, embedded in the governing elite, can introduce alternative approaches to addressing inequalities and marginalization within Hungary's authoritarian political system. We will examine this on three levels: welfare policy discourse, the institutional system of social integration, and local-level practices.