Hungary:
Hungary was part of the polyglot Austro-Hungarian Empire,
which collapsed during World War I. The country fell under communist
rule following World War II. In 1956, a revolt and announced
withdrawal from the Warsaw Pact were met with a massive military
intervention by Moscow. In the more open GORBACHEV years, Hungary
led the movement to dissolve the Warsaw Pact and steadily shifted
toward multiparty democracy and a market-oriented economy. Following
the collapse of the USSR in 1991, Hungary developed close political
and economic ties to Western Europe. It joined NATO in 1999 and is a
frontrunner in a future expansion of the EU.

Iceland:
Settled by Norwegian and Celtic (Scottish and Irish)
immigrants during the late 9th and 10th centuries A.D., Iceland
boasts the world's oldest functioning legislative assembly, the
Althing, established in 930. Independent for over 300 years, Iceland
was subsequently ruled by Norway and Denmark. Fallout from the Askja
volcano of 1875 devastated the Icelandic economy and caused
widespread famine. Over the next quarter century, 20% of the
island's population emigrated, mostly to Canada and the US. Limited
home rule from Denmark was granted in 1874 and complete independence
attained in 1944. Literacy, longevity, income, and social cohesion
are first-rate by world standards.

India:
The Indus Valley civilization, one of the oldest in the
world, goes back at least 5,000 years. Aryan tribes from the
northwest invaded about 1500 B.C.; their merger with the earlier
inhabitants created classical Indian culture. Arab incursions
starting in the 8th century and Turkish in 12th were followed by
European traders beginning in the late 15th century. By the 19th
century, Britain had assumed political control of virtually all
Indian lands. Nonviolent resistance to British colonialism under
Mohandas GANDHI and Jawaharlal NEHRU led to independence in 1947.
The subcontinent was divided into the secular state of India and the
smaller Muslim state of Pakistan. A third war between the two
countries in 1971 resulted in East Pakistan becoming the separate
nation of Bangladesh. Fundamental concerns in India include the
ongoing dispute with Pakistan over Kashmir, massive overpopulation,
environmental degradation, extensive poverty, and ethnic strife, all
this despite impressive gains in economic investment and output.

Indian Ocean:
The Indian Ocean is the third-largest of the world's
five oceans (after the Pacific Ocean and Atlantic Ocean, but larger
than the Southern Ocean and Arctic Ocean). Four critically important
access waterways are the Suez Canal (Egypt), Bab el Mandeb
(Djibouti-Yemen), Strait of Hormuz (Iran-Oman), and Strait of
Malacca (Indonesia-Malaysia). The decision by the International
Hydrographic Organization in the spring of 2000 to delimit a fifth
ocean, the Southern Ocean, removed the portion of the Indian Ocean
south of 60 degrees south.

Indonesia:
The world's largest archipelago, Indonesia achieved
independence from the Netherlands in 1949. Current issues include:
implementing IMF-mandated reforms of the banking sector, effecting a
transition to a popularly elected government after four decades of
authoritarianism, addressing charges of cronyism and corruption,
holding the military accountable for human rights violations, and
resolving growing separatist pressures in Aceh and Irian Jaya. On 30
August 1999 a provincial referendum for independence was
overwhelmingly approved by the people of Timor Timur. Concurrence
followed by Indonesia's national legislature, and the name East
Timor was provisionally adopted. The independent status of East
Timor - now under UN administration - has yet to be formally
established.

Iran:
Known as Persia until 1935, Iran became an Islamic republic in
1979 after the ruling shah was forced into exile. Conservative
clerical forces subsequently crushed westernizing liberal elements.
Militant Iranian students seized the US Embassy in Tehran on 4
November 1979 and held it until 20 January 1981. During 1980-88,
Iran fought a bloody, indecisive war with Iraq over disputed
territory. The key current issue is how rapidly the country should
open up to the modernizing influences of the outside world.

Iraq:
Formerly part of the Ottoman Empire, Iraq became an
independent kingdom in 1932. A "republic" was proclaimed in 1958,
but in actuality a series of military strongmen have ruled the
country since then, the latest being SADDAM Husayn. Territorial
disputes with Iran led to an inconclusive and costly eight-year war
(1980-1988). In August 1990 Iraq seized Kuwait, but was expelled by
US-led, UN coalition forces during January-February 1991. The
victors did not occupy Iraq, however, thus allowing the regime to
stay in control. Following Kuwait's liberation, the UN Security
Council (UNSC) required Iraq to scrap all weapons of mass
destruction and long-range missiles and to allow UN verification
inspections. UN trade sanctions remain in effect due to incomplete
Iraqi compliance with relevant UNSC resolutions.

Ireland:
A failed 1916 Easter Monday Rebellion touched off several
years of guerrilla warfare that in 1921 resulted in independence
from the UK for the 26 southern counties; the six northern counties
(Ulster) remained part of Great Britain. In 1948 Ireland withdrew
from the British Commonwealth; it joined the European Community in
1973. Irish governments have sought the peaceful unification of
Ireland and have cooperated with Britain against terrorist groups. A
peace settlement for Northern Ireland, approved in 1998, was
implemented the following year.

Israel:
Following World War II, the British withdrew from their
mandate of Palestine, and the UN partitioned the area into Arab and
Jewish states, an arrangement rejected by the Arabs. Subsequently,
the Israelis defeated the Arabs in a series of wars without ending
the deep tensions between the two sides. The territories occupied by
Israel since the 1967 war are not included in the Israel country
profile, unless otherwise noted. In keeping with the framework
established at the Madrid Conference in October 1991, bilateral
negotiations are being conducted between Israel and Palestinian
representatives (from the Israeli-occupied West Bank and Gaza Strip)
and Israel and Syria, to achieve a permanent settlement. On 25 April
1982, Israel withdrew from the Sinai pursuant to the 1979
Israel-Egypt Peace Treaty. Outstanding territorial and other
disputes with Jordan were resolved in the 26 October 1994
Israel-Jordan Treaty of Peace. On 25 May 2000, Israel withdrew
unilaterally from southern Lebanon, which it had occupied since 1982.

Italy:
Italy became a nation-state belatedly - in 1861 when the
city-states of the peninsula, along with Sardinia and Sicily, were
united under King Victor EMMANUEL. An era of parliamentary
government came to a close in the early 1920s when Benito MUSSOLINI
established a Fascist dictatorship. His disastrous alliance with
Nazi Germany led to Italy's defeat in World War II. A democratic
republic replaced the monarchy in 1946 and economic revival
followed. Italy was a charter member of NATO and the European
Economic Community (EEC). It has been at the forefront of European
economic and political unification, joining the European Monetary
Union in 1999. Persistent problems include illegal immigration, the
ravages of organized crime, corruption, high unemployment, and the
low incomes and technical standards of southern Italy compared with
the more prosperous north.