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Briefly describe why you think each was important in each nation? a) Economic factors 1. hungary The Hungarian economy prior to WWII was primarily oriented toward agriculture and small scale manufacturing.Hungary's strategic position in Europe and its relative lack of natural resources also have dictated a traditional reliance on foreign trade. In the early 1950s, the communist government forced rapid industrialization after the standard Stalinist pattern in an effort to encourage a more self-sufficient economy. Most economic activity was conducted by state-owned enterprises or cooperatives and state farms. In 1968, Stalinist self-sufficiency was replaced by the "New Economic Mechanism," which reopened Hungary to foreign trade, gave limited freedom to the workings of the market, and allowed a limited number of small businesses to operate in the services sector.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, and Hungary's net foreign debt rose significantly--from $1 billion in 1973 to $15 billion in 1993--due largely to consumer subsidies and unprofitable state enterprises.In the face of economic stagnation, Hungary opted to try further liberalization by passing a joint venture law, adopting an income tax, and joining the International Monetary Fund (IMF) and the World Bank. By 1988, Hungary had developed a two-tier banking system and had enacted significant corporate legislation which paved the way for the ambitious market-oriented reforms of the post-communist years.

2. Belarus This Country Economic Memorandum for Belarus takes stock of the growth trends in the country’s economy since 1996, reviews the evidence of the accumulated challenges and risks within the existing growth patterns, and provides recommendations aimed at strengthening growth sustainability. In sum, while economic growth in the last nine years has been impressive, the report argues that maintaining the current growth strategy would lead to a gradual erosion of economic competitiveness. The government should make significant policy adjustments by reorienting its policies toward ensuring a better business environment and a smaller size of government. Economic growth in Belarus has been broad-based and has been driven primarily by the improvements in labor productivity, increase in energy efficiency and capacity utilization. In contrast to some other CIS countries, where growth and exports remain concentrated in the extracting sectors with limited employment opportunities, the growth structure in Belarus has been much more beneficial for labor. Growth in labor-incentive sectors coupled with wage and income policies have helped to ensure that the benefits from recent growth were rather broadly shared by population.

b) Cultural factors 1. hungary The combined impact of World War II and the communist takeover in 1947 brought about great changes in the social structure. For more than a decade, the new communist government sought to create a classless society through various forms of social engineering. Even though there were major differences in the ideological motivations of the various postcommunist political parties and governments, they all agreed on the main goals to be achieved. These included the privatization of state-owned assets, the creation of a politically and culturally pluralistic society, and the attainment of membership in the Western community of nations by joining NATO and the EU. Reforms under the Antall regime left no sector of the economy untouched, as the reintroduction of the market economy demanded a whole new economic and institutional infrastructure. Despite fits and starts, the first postcommunist government liberalized trade, deregulated most prices, and introduced and executed a wide-ranging privatization policy.Within two years of attaining power, it relaunched the Budapest Stock Exchange and a largely independent Central Bank and initiated the most-liberal foreign investment policy among the states of the former Soviet bloc. Moreover, despite the massive dislocation this approach caused, the government also introduced a bankruptcy policy that wrung out many of the inefficient state enterprises from the economy.Hungarian privatization policy differed from its counterparts in other countries in east-central Europe.

2. Belarus Belarusian culture is the product of a millennium of development under the impact of a number of diverse factors. These include the physical environment; the ethnographic background of Belarusians (the merger of Slavic newcomers with Baltic natives); the paganism of the early settlers and their hosts; Byzantine Christianity as a link to the Orthodox religion and its literary tradition; the country's lack of natural borders; the flow of rivers toward both the Black Sea and the Baltic Sea; and the variety of religions in the region (Catholicism, Orthodoxy, Judaism, and Islam). An early Western influence on Belarusian culture was Magdeburg Law--charters that granted municipal self-rule and were based on the laws of German cities. These charters were granted in the fourteenth and fifteenth centuries by grand dukes and kings to a number of cities, including Brest, Hrodna, Slutsk, and Minsk. The tradition of self-government not only facilitated contacts with Western Europe but also nurtured self-reliance, entrepreneurship, and a sense of civic responsibility. In 1517-19 Frantsishak Skaryna (ca. 1490-1552) translated the Bible into the vernacular (Old Belorussian). Under the communist regime, Skaryna's work was

vastly undervalued, but in independent Belarus he became an inspiration for the emerging national consciousness as much for his advocacy of the Belorussian language as for his humanistic ideas. From the fourteenth to the seventeenth centuries, when the ideas of humanism, the Renaissance, and the Reformation were alive in Western Europe, these ideas were debated in Belorussia as well because of trade relations there and because of the enrollment of noblemen's and burghers' sons in Western universities. The Reformation and Counter-Reformation also contributed greatly to the flourishing of polemical writings as well as to the spread of printing houses and schools. During the seventeenth and eighteenth centuries, when Poland and Russia were making deep political and cultural inroads in Belorussia by assimilating the nobility into their respective cultures, the rulers succeeded in associating "Belorussian" culture primarily with peasant ways, folklore, ethnic dress, and ethnic customs, with an overlay of Christianity. This was the point of departure for some national activists who attempted to attain statehood for their nation in the late nineteenth and early twentieth centuries.