Hungary is a small, landlocked country in central Europe. Budapest is its capital and largest city and the center of its culture and industry. Most of eastern Hungary is nearly flat, but the western part has hills and low mountains. The country's chief natural resources include fertile soil and a favorable climate for farming. Great economic and social changes occurred in Hungary in the last half of the 1900's.

Before World War II (1939-1945), most of the country's income came from agriculture, and the majority of Hungarians lived in rural areas and worked on farms. But in the mid-1900's, Hungary's economy began to become industrialized. Today, manufacturing and other industries contribute more to the national income than does farming. More Hungarians work in industry than on farms. As Hungary became more industrialized, modern city ways of life became popular. Many of the country's old rural customs disappeared. But Hungarians still love the highly seasoned foods, excellent wines, and lively folk music for which they have long been famous.

Hungary was a large, independent, and powerful kingdom until the late 1400's. From the early 1500's to the late 1600's, the Ottoman Empire ruled much of the country. Hungary then became part of a huge empire ruled by the Austrian branch of the Habsburgs, a powerful European dynasty (line of rulers). The empire of the Habsburgs collapsed after World War I ended in 1918. Hungary then lost about two-thirds of its land but regained its independence. In the late 1940's, Hungarian Communists gained control of the country's government. They began to restrict the freedom of the people and to control the entire economy. In 1956, the Hungarian people revolted against their Communist government and Soviet domination. Soviet troops quickly crushed the revolution. But opposition to Communist control continued.

In the late 1980's, the Soviet Union made reforms toward giving its people more freedom. The reform movement in Hungary then gained strength. The power and authority of the Communist Party in Hungary began to erode. Public pressure forced the party to allow other political parties to form. In 1989, the Communist Party ended its monopoly on Hungary's government, and it allowed more freedom. Non-Communist parties were officially legalized. In 1990, Hungary held its first multiparty elections since 1949.