Dynastic State Capture

In this chapter, I explore the concept of dynastic state capture —a form of grand corruption in which a single family comes to dominate state institutions, converting political power into private wealth. Drawing on the case of Hungary under Prime Minister Viktor Orbán, I examine how familial networks mobilize formal authority, manipulate legal systems, and rely on both official channels and informal ties to divert public resources for their own benefit. Unlike more conventional forms of state capture driven by corporate or political elites, dynastic state capture intertwines personal loyalty, patrimonial practices, and long-term wealth accumulation across generations. It blends the appearance of rational-legal bureaucracy with the underlying logic of neopatrimonial governance. Ultimately, this phenomenon distorts the state’s redistributive function, undermines democratic institutions, and entrenches enduring family empires that operate simultaneously within public and private realms.