Above and beyond the “goulash” clichés and its reputation as a popular tourist destination, Hungary has played a pioneering political role in Eastern Europe since even before the fall of communism. That's why it has always had an economic edge on its former East Bloc neighbors. Even before the political turnaround, this small country was comparatively liberal. Its socialist dictatorship was regarded as an easygoing “goulash communism.” Hungary was the first communist country to open its borders to the West in 1989, setting into motion events that would eventually tear down the Iron Curtain. It was very open economically as well, taking its first steps toward a market economy as far back as 1982, when it joined the World Bank and the International Monetary Fund. Hungary also became the first Eastern European country to apply for membership in the EU in 1994. Its commitment to the European ideal paid off, as Hungary became a magnet for foreign capital, and officially joined the EU in 2004. A new monetary system designed to facilitate a transition to the euro has also been introduced in the country.