Centimanes v. Titans: right-wing populist governments' treatment of foreign multinationals in East Central Europe

Abstract

The treatment of foreign multinational enterprises (MNEs) by populist right-wing governments presents a puzzle: At times, these governments support, at times they take aggressive action against foreign MNEs. Allegorically speaking, rather than using their one hundred hands to slay the Titans like the Centimanes of Greek mythology, right-wing populist governments seem to use fifty hands of the state to support and fifty others to handicap foreign MNEs. How can we explain the ambiguity of populist international business policy adopted by governments that adhere to economically nationalist rhetoric, ideologies, and goals? Our article contributes to these debates by theorising the factors that determine right-wing populist governments’ multi-handed approach to MNEs. We empirically discuss these factors based on a mixed methods design by comparing host country cases (Hungary, Poland), home country cases (China/Russia vs. Western countries), and industry cases (finance, manufacturing). We demonstrate that the common denominator of the multi-handed approach by right-wing populist governments is their desire to decrease the presence of foreign multinationals in politically valuable sectors, but that this desire is tempered by political and economic restrictions, notably including their electoral fragility, the need for technology transfer, and limited alternative sources of foreign direct investment (FDI).