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Hungary is landlocked and mainly forms a low-lying plain; it is crossed by the rivers [[Danube]] (''Duna'') and Tisza. The west of the country includes the large [[Lake Balaton]], on the shores of which a number of resort towns are situated.

Hungary is landlocked and mainly forms a low-lying plain; it is crossed by the rivers [[Danube]] (''Duna'') and Tisza. The west of the country includes the large [[Lake Balaton]], on the shores of which a number of resort towns are situated.

*Area: 93,030 sq. km. (35,910 sq. mi.); about the size of Indiana.

*Area: 93,030 sq. km. (35,910 sq. mi.); about the size of Indiana.

*Cities: Capital--Budapest (est. pop. 2 million). Other cities--Debrecen (220,000); Miskolc (208,000); Szeged (189,000); Pécs (183,000).

*Cities: Capital—Budapest (est. pop. 2 million). Other cities—Debrecen (220,000); Miskolc (208,000); Szeged (189,000); Pécs (183,000).

*Terrain: Mostly flat, with low mountains in the north and northeast and north of Lake Balaton.

*Terrain: Mostly flat, with low mountains in the north and northeast and north of Lake Balaton.

*Climate: Temperate.

*Climate: Temperate.

 

 

 

==People==  

==People==  

*Religions (2001 census): Roman Catholic 51.9%, Calvinist 15.9%, Lutheran 3%, Greek Catholic 2.6%, Jewish 1%, others, including *Baptist Adventist, Pentecostal, Unitarian 3%.

*Religions (2001 census): Roman Catholic 51.9%, Calvinist 15.9%, Lutheran 3%, Greek Catholic 2.6%, Jewish 1%, others, including *Baptist Adventist, Pentecostal, Unitarian 3%.

*Languages: Magyar 98.2%, other 1.8%.

*Languages: Magyar 98.2%, other 1.8%.

*Education: Compulsory to age 16. Attendance--96%. Literacy--99.4%.

*Education: Compulsory to age 16. Attendance—96%. Literacy—99.4%.

*Health (2007 est.): Infant mortality rate--8.21/1,000. Life expectancy--men 68.73 yrs., women 77.38 yrs.

*Health (2007 est.): Infant mortality rate—8.21/1,000. Life expectancy—men 68.73 yrs., women 77.38 yrs.

*Work force (2006 est., 4.21 million): Agriculture--5.5%; industry and commerce--33.3%; services--61.2%.

*Work force (2006 est., 4.21 million): Agriculture—5.5%; industry and commerce—33.3%; services—61.2%.

In Hungary, the official [[orthography]] is the [[Hungarian#Orthography|Latin-based Hungarian alphabet]], albeit, the earlier [[Szekely-Hungarian Rovas]] and the [[Carpathian Basin Rovas]] are also used sporadically.

In Hungary, the official [[orthography]] is the [[Hungarian#Orthography|Latin-based Hungarian alphabet]], albeit, the earlier [[Szekely-Hungarian Rovas]] and the [[Carpathian Basin Rovas]] are also used sporadically.

Except for the short-lived neutrality declared by Imre Nagy in November 1956, Hungary's foreign policy generally followed the Soviet lead from 1947 to 1989. During the communist period, Hungary maintained treaties of friendship, cooperation, and mutual assistance with the Soviet Union, Poland, Czechoslovakia, the German Democratic Republic, Romania, and Bulgaria. It was one of the founding members of the Soviet-led [[Warsaw Pact]] and Comecon, and it was the first central European country to withdraw from those now defunct organizations.

Except for the short-lived neutrality declared by Imre Nagy in November 1956, Hungary's foreign policy generally followed the Soviet lead from 1947 to 1989. During the communist period, Hungary maintained treaties of friendship, cooperation, and mutual assistance with the Soviet Union, Poland, Czechoslovakia, the German Democratic Republic, Romania, and Bulgaria. It was one of the founding members of the Soviet-led [[Warsaw Pact]] and Comecon, and it was the first central European country to withdraw from those now defunct organizations.

As with any country, Hungarian security attitudes are shaped largely by history and geography. For Hungary, this is a history of more than 400 years of domination by great powers--the Ottomans, the Habsburgs, the Germans during World War II, and the Soviets during the Cold War--and a geography of regional instability and separation from [[Hungarian]] minorities living in neighboring countries. Hungary's foreign policy priorities, largely consistent since 1990, represent a direct response to these factors. Since 1990, Hungary's top foreign policy goal has been achieving integration into Western economic and security organizations. To this end, Hungary joined NATO in 1999 and the European Union in May of 2004. Hungary also has improved its often-chilled neighborly relations by signing basic treaties with Romania, Slovakia, and Ukraine. These renounce all outstanding territorial claims and lay the foundation for constructive relations. However, the issue of ethnic Hungarian minority rights in Slovakia and Romania periodically causes bilateral tensions to flare. Hungary was a signatory to the Helsinki Final Act in 1975, has signed all of the Conference on Security and Cooperation in Europe (CSCE)/ Organization for Security and Cooperation in Europe (OSCE) follow-on documents since 1989, and served as the OSCE's Chairman-in-Office in 1997. Hungary's record of implementing CSCE Helsinki Final Act provisions, including those on reunification of divided families, remains among the best in eastern Europe. Hungary has been a member of the United Nations since December 1955.

As with any country, Hungarian security attitudes are shaped largely by history and geography. For Hungary, this is a history of more than 400 years of domination by great powers—the Ottomans, the Habsburgs, the Germans during World War II, and the Soviets during the Cold War—and a geography of regional instability and separation from [[Hungarian]] minorities living in neighboring countries. Hungary's foreign policy priorities, largely consistent since 1990, represent a direct response to these factors. Since 1990, Hungary's top foreign policy goal has been achieving integration into Western economic and security organizations. To this end, Hungary joined NATO in 1999 and the European Union in May 2004. Hungary also has improved its often-chilled neighborly relations by signing basic treaties with Romania, Slovakia, and Ukraine. These renounce all outstanding territorial claims and lay the foundation for constructive relations. However, the issue of ethnic Hungarian minority rights in Slovakia and Romania periodically causes bilateral tensions to flare. Hungary was a signatory to the Helsinki Final Act in 1975, has signed all of the Conference on Security and Cooperation in Europe (CSCE)/ Organization for Security and Cooperation in Europe (OSCE) follow-on documents since 1989, and served as the OSCE's Chairman-in-Office in 1997. Hungary's record of implementing CSCE Helsinki Final Act provisions, including those on reunification of divided families, remains among the best in eastern Europe. Hungary has been a member of the United Nations since December 1955.

==Defense==

==Defense==

Prior to World War II, the Hungarian economy was primarily oriented toward agriculture and small-scale manufacturing. Hungary's strategic position in Europe and its relative lack of natural resources dictated a traditional reliance on foreign trade. In the early 1950s, the communist government forced rapid industrialization following the standard Stalinist pattern in an effort to encourage a more self-sufficient economy. Most economic activity was conducted by state farms and state-owned enterprises or cooperatives. In 1968, Stalinist self-sufficiency was replaced by the "New Economic Mechanism," which gave limited freedom to the workings of the market, reopened Hungary to foreign trade, and allowed a limited number of small businesses to operate in the services sector.

Prior to World War II, the Hungarian economy was primarily oriented toward agriculture and small-scale manufacturing. Hungary's strategic position in Europe and its relative lack of natural resources dictated a traditional reliance on foreign trade. In the early 1950s, the communist government forced rapid industrialization following the standard Stalinist pattern in an effort to encourage a more self-sufficient economy. Most economic activity was conducted by state farms and state-owned enterprises or cooperatives. In 1968, Stalinist self-sufficiency was replaced by the "New Economic Mechanism," which gave limited freedom to the workings of the market, reopened Hungary to foreign trade, and allowed a limited number of small businesses to operate in the services sector.

[[File:Floodgate in Bekes Hungary.jpg|thumb|330px|Floodgate in Békés.]]

[[File:Floodgate in Bekes Hungary.jpg|thumb|330px|Floodgate in Békés.]]

Although Hungary enjoyed one of the most liberal and economically advanced economies of the former Eastern Bloc, both agriculture and industry began to suffer from a lack of investment in the 1970s. Belated reaction to the economic crisis of the early 1970s and deteriorating terms of trade resulted in increasing indebtedness. In response, the Hungarian Government launched a restrictive economic policy in the late 1970s and early 1980s, followed by the “Dynamization Program of 1985,” which increased consumer subsidies and investments--mainly in unprofitable state enterprises--eventually leading to a doubling of foreign debt levels. By 1993, Hungary's net foreign debt rose significantly--from $1 billion in 1973 to $15 billion. Liberalization of the economy continued, however, and in 1988-89 Hungary passed a joint venture law, adopted tax legislation, and joined the International Monetary Fund (IMF) and the World Bank. By 1988, Hungary developed a two-tier banking system and enacted significant corporate legislation which paved the way for the ambitious market-oriented reforms of the post-communist years.  

Although Hungary enjoyed one of the most liberal and economically advanced economies of the former Eastern Bloc, both agriculture and industry began to suffer from a lack of investment in the 1970s. Belated reaction to the economic crisis of the early 1970s and deteriorating terms of trade resulted in increasing indebtedness. In response, the Hungarian Government launched a restrictive economic policy in the late 1970s and early 1980s, followed by the “Dynamization Program of 1985,” which increased consumer subsidies and investments—mainly in unprofitable state enterprises—eventually leading to a doubling of foreign debt levels. By 1993, Hungary's net foreign debt rose significantly—from $1 billion in 1973 to $15 billion. Liberalization of the economy continued, however, and in 1988-89 Hungary passed a joint venture law, adopted tax legislation, and joined the International Monetary Fund (IMF) and the World Bank. By 1988, Hungary developed a two-tier banking system and enacted significant corporate legislation which paved the way for the ambitious market-oriented reforms of the post-communist years.  

*GDP: HUF 27,220 billion (approx. $163.9 billion) ($1=HUF 172 - average exchange rate Jan.-Dec. 2008).

*GDP: HUF 27,220 billion (approx. $163.9 billion) ($1=HUF 172 - average exchange rate Jan.-Dec. 2008).

*Annual growth rate (2008 est.): 1.8%.

*Annual growth rate (2008 est.): 1.8%.

*Per capita GDP (2008 est.): $16,400.

*Per capita GDP (2008 est.): $16,400.

*Natural resources: bauxite, coal, natural gas, fertile soils, arable land.

*Natural resources: bauxite, coal, natural gas, fertile soils, arable land.

*Agriculture/forestry (2008 est., 3.4% of GDP): Products--meat, corn, wheat, sunflower seeds, potatoes, sugar beets, dairy products.  

*Agriculture/forestry (2008 est., 3.4% of GDP): Products—meat, corn, wheat, sunflower seeds, potatoes, sugar beets, dairy products.  

*Industry and construction (2008 est., 45.4% of GDP): Types--machinery, vehicles, chemicals, precision and measuring equipment, computer products, medical instruments, pharmaceuticals, textiles.

*Industry and construction (2008 est., 45.4% of GDP): Types—machinery, vehicles, chemicals, precision and measuring equipment, computer products, medical instruments, pharmaceuticals, textiles.

*Trade (2008): Exports ($95.0 billion)--machinery, vehicles, food, beverages, tobacco, crude materials, manufactured goods, fuels and electric energy. Imports ($94.9 billion)--machinery, vehicles, manufactured goods, fuels and electric energy, food, beverages, and tobacco. Major markets--EU (Germany, Austria, Italy, France, U.K., Romania, Poland). Major suppliers--EU (Germany, Austria, Italy, France, Netherlands, Poland), Russia, China.

*Trade (2008): Exports ($95.0 billion)--machinery, vehicles, food, beverages, tobacco, crude materials, manufactured goods, fuels and electric energy. Imports ($94.9 billion)--machinery, vehicles, manufactured goods, fuels and electric energy, food, beverages, and tobacco. Major markets—EU (Germany, Austria, Italy, France, U.K., Romania, Poland). Major suppliers—EU (Germany, Austria, Italy, France, Netherlands, Poland), Russia, China.

[[File:Church of St. Anne in Budapest WC PD.jpg|thumb|left|240px|Church of St. Anne in Budapest.]]

[[File:Church of St. Anne in Budapest WC PD.jpg|thumb|left|240px|Church of St. Anne in Budapest.]]

The Antall government of 1990-94 began market reforms with price and trade liberation measures, a revamped tax system, and a nascent market-based banking system. As a result of the collapse of Eastern markets and the inability of state-owned companies to compete with foreign competitors, industrial production fell by 50% between 1989 and 1994, and the country faced high unemployment and inflation rates, as well as a deteriorating trade balance. By 1994, the costs of government overspending and hesitant privatization had become clearly visible. In 1996, austerity measures referred to as the “Bokros package” (for then-Finance Minister Lajos Bokros) improved both the fiscal and external balance situation, and increased investor confidence. Simplified and accelerated privatization led to significant inflow of foreign capital in industry, energy, and telecommunications sectors, and a number of greenfield investments were launched. Hungary's early openness to foreign direct investment (FDI) led to a sustained period of high growth and made Hungary a magnet for FDI in the late 1990s and early parts of this century.

The Antall government of 1990-94 began market reforms with price and trade liberation measures, a revamped tax system, and a nascent market-based banking system. As a result of the collapse of Eastern markets and the inability of state-owned companies to compete with foreign competitors, industrial production fell by 50% between 1989 and 1994, and the country faced high unemployment and inflation rates, as well as a deteriorating trade balance. By 1994, the costs of government overspending and hesitant privatization had become clearly visible. In 1996, austerity measures referred to as the “Bokros package” (for then-Finance Minister Lajos Bokros) improved both the fiscal and external balance situation, and increased investor confidence. Simplified and accelerated privatization led to significant inflow of foreign capital in industry, energy, and telecommunications sectors, and a number of greenfield investments were launched. Hungary's early openness to foreign direct investment (FDI) led to a sustained period of high growth and made Hungary a magnet for FDI in the late 1990s and early parts of this century.

In 1995, Hungary's currency--the forint (HUF)--became convertible for all current account transactions, and subsequent to Organization for Economic Cooperation and Development (OECD) membership in 1996, for almost all capital account transactions as well. In 2001, the Orban government lifted remaining currency controls and broadened the band around the exchange rate, allowing the forint to appreciate by more than 12% in a year. Trade with European Union (EU) and OECD countries now comprises over 75% and 85% of Hungary's total trade, respectively. Germany is Hungary's most important trading partner, followed by Italy and France. The United States has become Hungary's sixth-largest export market, while Hungary is ranked as the 72nd-largest export market for the United States. Bilateral trade between the two countries has increased to more than $1 billion per year.  

In 1995, Hungary's currency—the forint (HUF)--became convertible for all current account transactions, and subsequent to Organization for Economic Cooperation and Development (OECD) membership in 1996, for almost all capital account transactions as well. In 2001, the Orban government lifted remaining currency controls and broadened the band around the exchange rate, allowing the forint to appreciate by more than 12% in a year. Trade with European Union (EU) and OECD countries now comprises over 75% and 85% of Hungary's total trade, respectively. Germany is Hungary's most important trading partner, followed by Italy and France. The United States has become Hungary's sixth-largest export market, while Hungary is ranked as the 72nd-largest export market for the United States. Bilateral trade between the two countries has increased to more than $1 billion per year.  

With more than $60 billion in FDI since 1989, Hungary has been a leading destination for FDI in central and eastern Europe, although this level is beginning to decline. The largest U.S. investors include GE, Alcoa, General Motors, Coca-Cola, Ford, IBM, and PepsiCo. As a result of extensive and continuing liberalization, the private sector produces about 80% of Hungary’s output.

With more than $60 billion in FDI since 1989, Hungary has been a leading destination for FDI in central and eastern Europe, although this level is beginning to decline. The largest U.S. investors include GE, Alcoa, General Motors, Coca-Cola, Ford, IBM, and PepsiCo. As a result of extensive and continuing liberalization, the private sector produces about 80% of Hungary’s output.

In 1988, Kadar was replaced as General Secretary of the MKP, and that same year, the Parliament adopted a "democracy package," which included trade union pluralism; freedom of association, assembly, and the press; a new electoral law; and a radical revision of the constitution, among others. The Soviet Union reduced its involvement by signing an agreement in April 1989 to withdraw Soviet forces by June 1991.

In 1988, Kadar was replaced as General Secretary of the MKP, and that same year, the Parliament adopted a "democracy package," which included trade union pluralism; freedom of association, assembly, and the press; a new electoral law; and a radical revision of the constitution, among others. The Soviet Union reduced its involvement by signing an agreement in April 1989 to withdraw Soviet forces by June 1991.

National unity culminated in June 1989 as the country reburied Imre Nagy, his associates, and, symbolically, all other victims of the 1956 revolution. A national roundtable, comprising representatives of the new parties and some recreated old parties--such as the Smallholders and Social Democrats--the communist party, and different social groups, met in the late summer of 1989 to discuss major changes to the Hungarian constitution in preparation for free elections and the transition to a fully free and democratic political system.

National unity culminated in June 1989 as the country reburied Imre Nagy, his associates, and, symbolically, all other victims of the 1956 revolution. A national roundtable, comprising representatives of the new parties and some recreated old parties—such as the Smallholders and Social Democrats—the communist party, and different social groups, met in the late summer of 1989 to discuss major changes to the Hungarian constitution in preparation for free elections and the transition to a fully free and democratic political system.

====Free Elections and a Democratic Hungary====  

====Free Elections and a Democratic Hungary====