Communist Hungary
With the occupation of Hungary by Russia after the Second World War, the comunism started to grow up in the state. In 1949, the Soviet Union redacted a treaty of "mutual assistance"with the government of Hungary that granted Russia the right to have military presence in the state, making sure that they could maintain the control of Hungary.In 1945, the new government of the "Small Owners Party" got the 57% of the votes in front of the comunist party, that got just the 17%. The comunists, supported by the Soviet Union, started to sabotage the new government by the "Salami Tactics" (fragmenting their forces by threats and alliances), and in the first of february of the year 1946, the president of Hungary, Zoltán Tildy, resigned. After that, the Soviet Union forced the gobernment to give the Home Office to the comunist party. With the comunists in the Ministry, the new minister started to apply policies to finish with the opposition (they used intimidation, tortures, false accusations...). In this moment, the democracy finished and the new comunist party its candidates with no options in other parties. The 15th of may of 1949, they proclamed the Popular Republic of Hungary. This new system was specially associated with the government of the Soviet Union, and they began to launch policies in order to modify the hungarian state to be the spitting image of its own system.
During this period, the Soviet Union instituted several actions to reach this transformation by the elimination of the individual rights and the freedom of expression. They also commited numerous crimes against human rights like the arbitrary imprisonment, tortures or sending hungarian citizens to concentration camps.
In economic terms, Hungary accepted to pay to the URSS, Czechoslovakia and Yugoslavia some war reparations that implied the the 20% of its anual income (300 million dollars). Furthermore, they had to join in the COMECON (international economic cooperation organization formed around the URSS), fact that supposed the completely dependence of the hungarian state (they weren´t able to receive occidental aids anymore). This situation caused a severe depreciation of the hungarian coin, the "Pengo", and in addition to that, the worst case of hyperinflation in history. Finally, the Soviet Union, used the earnigns of the agriculture to finance the evolution of the hungarian heavy industry.
The 1956 Revolution
Due to this condition, in 1956, there was a series of manifestations in the capital that led to riot in many parts of the city. When the URSS replied with the positioning of troops around the capital, the Central Committee of the Hungarian Workers Party, appointing a new Prime Minister, Imre Nagy. In october the 28th, Nagy and some of his supporters took the control of the Hungarian Workers Party, and local and revolutionary committees were formed all around the state disregarding the comunist authority implanted by the URSS. The 30th, Nagy broke free some political prisioners and declared that his government wanted to finish the one-party state. Finally, the URSS decided to send the "Red Army" and after many battles around the territory, Hungary was defeated. Nagy was substituted by János Kádár and executed in 1958. This new government of Kádár started with the punishment of the revolutionary forces, but after a while, his government changed in a more liberal one because of the decline of the comunism. With this new government, he was able to apply some agricultural and economic reforms that led to a significant increase in the production of the state until 1988.
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