Country Profile Hungry Term Paper

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Hungary is located in Central Europe, northwest of Romania (CIA 2012, BEEA 2012). It measures 93,000 square kilometers. It is bordered by Romania, Croatia, Austria, Serbia, Slovakia, Slovenia and Ukraine. Its capital is Budapest (CIA, BEEA).


Hungary has a Republican form of government (FCO 2012). Its Constitution was adopted on April 18 last year and took effect in January this year. Its four branches of government are the executive, legislative, judicial and a Constitutional court. The President is the head of state. The Prime Minister is the head of government. A cabinet is also part of the executive branch. The legislative branch consists of a National Assembly of 386 members with a four-year term. The judicial branch is a Curia or a Supreme Court. The President since August 6, 2010 is Pal Schmitt and the Prime Minister since May 29, 2010 is Viktor Orban. Hungary has 19 counties in addition to Budapest, the capital region. It has 7 principal political parties (FCO).

Recent History

Hungary suffered from the two World Wars (FCO 2012). The 1920 Treaty of Tianon took 2/3 of its territory. About 1.5 million ethnic Hungarians were left in Romania; 500,000 in Slovakia; 350,000 in Serbia and Montenegro; and 150,000 in Ukraine. By 1948, the Communists took over completely although there was slight support for Communism in the country at the time. The death of Stalin and Krushchev's denunciation of him led to a crisis and an uprising in 1956. Soviet troops eventually crushed the uprising. Oppression prevailed from 1961 until the national reconciliation platform was instituted by Kadar, the new Communist leader. New radical economic reforms followed in 1968, which led to the gradual improvement in the country's living standards. The domestic situation was relaxed and relations with the West improved. There was, however, no proportionate relaxation or improvement on political with the Communists in control (FCO).

Scientific Development

In response to the knowledge demands of the 21st century, Hungary established a National Innovation System and its operations, a science and technology policy, and a probable international cooperation in science and technology (Peredyz 2004). Reforms were projected to have been completed in 2004 in line with the necessity for a competitive policy. Hungary's membership with the EU and the establishment of its research and technology development appear to intentional (Peredyz).

The National Innovation System consists of governmental organizations, the Hungarian Academy of Sciences, and the research and technology institutions (Peredyz 2004). Institutional policy reforms include the establishment of the Science and Technology Policy College and its advisory body in April 2003; the planning and implementation of the Hungarian science and technology policy in promoting international science and technology cooperation; and the setting up of the Agency for Research Fund Management and Research Exploitation for projects, partnerships and services (Peredyz).


The key concepts and values in the Hungarian culture are individualism, respect, and relationship (Windmeyer 2010). Individualism was adopted by Hungarians at the end of Communist rule. They now relish independence, freedom and self-reliance. They teach their young to be responsible and infuse into them the rewards and respect that go into individual achievement. They still value community and family cohesiveness but have come to adopt Western values and practices. They have been awakened to the desirability of personal achievement and success. Respect is a key value at home and in business. Hungarians do not use first name until they know the person well enough. They do not directly refuse, negate or deny. They believe that to do so is to be disrespectful and discourteous. They express their refusal only indirectly. And they place premium value on relationships. They conduct businesses face-to-face as much as possible. They endeavor to know a partner on the personal level in order to conduct business. They need to trust the partner before negotiation is even possible. Keeping a personal network of contacts is basic to Hungarian business (Windmeyer).

A lot of socializing is done out of the workplace for those doing business with Hungarians (Windmeyer 2010). The negotiation process always includes large lunches, receptions and dinners where partners can get to know each other. Ironically, Hungarians do not discuss or mention business in these social events. They separate business from their personal lives. It takes time to develop friendship with Hungarians. They are aloof, formal and reserved at first. But when a workable business relationship is developed, it is usually real and lasting (Windmeyer).


Hungary's GDP, according to 2011 estimates, is $195.3 billion and 56th in world ranking (CIA 2012). Its GDP for the same year is $133.1 billion with a1.4% real growth rate. It has an unemployment rate of 10.9% and 13.9% of its population is below the poverty line. Its gross fixed investment is 18.4% of GDP. Its revenues reached $64.46 billion as against expenditures at $68.37 billion. Public debt is 82.6% of GDP. Inflation rate is 3.9%. Exports, as of 2011, cost $103 billion. These export commodities are machinery and equipment at 55.3%; other manufacturing products at 30.6%; food products at 7.4%; raw materials at 3.2%; and fuels and electricity at 3.3%. Export partners are Germany at 25.5%, Romania at 5.6%, Austria at 5.5%, Slovakia at 5.3%, Italy at 5%, France at 4.8% and the UK at 4.6%. Imports, on the other hand, cost $93.9 billion as of 2011. Import commodities are 44% machinery and equipment, other manufacturing products at 41.3%, fuels and electricity at 5.1%, and food products and raw materials at 6.7%. Hungary's import partners are Germany at 25.2%, Russia at 8.6%, China at 6%, Austria at 6%, Poland at 4.9%, Italy at 4.4%, and the Netherlands at 4.3% (CIA).


Hungary's major ecological issue is the upgrade of waste management standards, energy efficiency and pollution in the air, soil and water as required by the European Union (EOE 2012). This will definitely incur large investments on Hungary's part. Its territory is covered by Pannonian mixed forests, an eco-region surrounded by the Carpathian Mountains, the Alps and the Dinaric Mountains. It has 50 important bird areas in the eco-region. Lake Neusiedel, which holds Seewinkel National Park, and other significant wetlands are known for their bird life. Thus, Hungary has a high level of avifauna diversity. Its mammals are spread through Europe. These include the European rabbit, wolf, and the now-endangered European mink. Other endangered species in the region are Orsini's viper and the Balkan wall lizard. Hungary confronts important threats in the form of unsustainable exploitation, development and fragmented aspects of recreation and tourism; agricultural abandonment; and wildlife disturbance. There may be many natural parks in the region but agriculture has destroyed much of their natural habitat. Hungary is a party to several international environmental agreements, including the Climatic Change- Kyoto Protocol (EOE).


Per the July 2011 official statistics, Hungary's population was approximately 10 million (BEEA 2012). The majority ethnic group is 89.9% Magyar (BEEA 2012). The minority ethnic groups are Romany, approximately 4%; German, 2.6%; Slovak, 0.8%; and Romanian, 0.7%. Hungarians are 51.9% Roman Catholic, according to 2001 census. Other religions are Calvinist, 15.9%; Greek Catholic, 2.6%; Jewish, 1%; and Baptist-Adventist, Pentecostal, Unitarian, collectively 3%. The Magyar language is spoken by 98.2% of the Hungarians. Other languages and vernaculars account for 1.8%. Education is compulsory for Hungarians up to age 16. Statistics say 96% of this age group attends school. The country has a 99.4% literacy level. Infant mortality is 8.21 per 1000 inhabitants. Life expectancy for men is 69.2 years and 77.3 years for women. As of 2006 estimates, there were 4.21 million people in the workforce. Of this number, 64% are in the service industry, 31% in industry and commerce and 5% in agriculture (BEEA).


Against the Communists

As mentioned earlier, Hungary lost 2/3 of its territory and a third of its population to Communist at the end of World War I (BEEA 2012). It was subjected to a short-lived but bloody Communist dictatorship and a counter-revolution in 1919. Hungary was a German ally during World War II. But when it attempted to change loyalties, the attempt was foiled and Hungary was placed under a German military occupation on March 19, 1944.The Nazis executed or deported thousands of Hungarian minority citizens and confiscated their property. These citizens were mostly Jewish. A provisional government was set up on January 20, 1945 in alliance with the Soviet Union. Soviet, American and British representatives held absolute dominion over the country. Its chairman was a member of Stalin's inner circle of commander-followers (BEEA).

The Hungarian Communist Party or MKP replaced the provisional government in November 1945 (BEEA 2012). It established a radical land reform and nationalized major institutions. It suppressed the coalition regime through intrigues against opposing parties and through terror, blackmail and pretense trials. The leftist group took over the government after winning the 1947 election through fraud. All opposition parties were compelled to merge with the MKP by February 1949 and form the Hungarian Workers' Party. In the same year, the Communists conducted a single-list election and then designed…

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