20 December, 2025
populism-challenges-neoliberalism-in-hungary-and-israel

The rise of populism is reshaping political landscapes in Hungary and Israel, according to a recent analysis published in the journal Polity. Authors Asaf Yakir and Doron Navot contend that populism represents a significant departure from the neoliberal framework that has dominated global politics since the late 20th century. Their argument highlights the broader implications of this shift, particularly in the context of the 2008 financial crisis and the subsequent rise of far-right governments.

Neoliberalism was established as “the only legitimate form of doing politics” by the end of the 20th century. It emphasized free-market principles, deregulation, and limited government intervention in the economy. However, the financial turmoil of 2008 exposed vulnerabilities in this ideology, leading to widespread discontent. As dissatisfaction grew, populist movements emerged, challenging the established political order in many nations.

Yakir and Navot assert that while some interpretations of populism view it as a mere extension of neoliberalism, their analysis points to a fundamental rupture. This shift can be observed in the policies and rhetoric of populist leaders in both Hungary and Israel, where traditional neoliberal tenets are increasingly questioned.

In Hungary, the government led by Prime Minister Viktor Orbán has embraced a form of populism that directly opposes neoliberal policies. Orbán’s administration has implemented measures that prioritize national interests over market-driven approaches, advocating for state intervention in the economy. This has included the nationalization of key industries and the implementation of protectionist trade policies.

Similarly, in Israel, the political landscape has been transformed under the influence of populist leaders who challenge the status quo. The government has adopted nationalist policies that prioritize the interests of specific demographic groups, deviating from the neoliberal emphasis on globalization and free markets. The shift has resulted in significant changes to social policies and economic strategies, reflecting the populist agenda.

The authors emphasize that the rise of populism is not merely a reaction to neoliberalism, but rather a profound ideological shift. They argue that populism’s focus on identity, nationalism, and direct appeals to the populace signifies a departure from the principles that have defined neoliberal governance.

The implications of this transformation extend beyond Hungary and Israel, as populist movements gain traction globally. These changes could reshape political alliances and economic policies in various regions. As Yakir and Navot suggest, the ongoing struggle between populism and neoliberalism will continue to influence the political landscape for years to come.

Understanding this dynamic is crucial for policymakers and citizens alike, as it may dictate the future direction of governance and economic strategy in both countries and beyond. The challenge for democratic institutions will be to navigate this complex terrain while addressing the underlying concerns that have fueled populist sentiments.

In conclusion, the analysis by Yakir and Navot provides critical insights into the evolving political landscape in Hungary and Israel. Their work underscores the need for a reevaluation of neoliberal principles in light of the rising populism, which is redefining the boundaries of political discourse and policy-making in the 21st century.