Small Country Research Articles

Malaysia and the Balkan conflict, 1992-1995

ABSTRACT This paper discusses Malaysia’s foreign policy towards Bosnia-Herzegovina from 1992–95, following the implementation of Milosevic’s Greater Serbia policy. Milosevic’s policy led to an ethnic cleansing onslaught that targeted the Bosniaks and Croats, involving displacement, torture, killings and widespread rape by Serbian forces. The indecisiveness and inaction of the West and the UN towards the events in the Balkans was perceived by Dr Mahathir as a clear manifestation of a double standard stance by the West. Realizing that the Bosnian needed assistance, Malaysia responded to their plight. Levering on its membership in several international organizations such as the UN, OIC, NAM and the Commonwealth, Malaysian diplomats actively lobbied for support for the Bosnians. This paper argues that Islam was the primary factor that drove Malaysia towards assisting Bosnia from the period of 1992–95. Through interviews with diplomats and Ambassadors, and an analysis of available literatures, the authors conclude that Malaysia, despite being a small Muslim-majority country, played a significant role in supporting the Bosnians. It thus demonstrates, in this case, Malaysia’s commitment towards playing a major role in the international system.

The Effect of Geographical Factors on the Foreign Policy of Qatar during 2014-2016

Objectives:Qatar is a small country that showed an important role in the local, regional, and international levels. Several geographical factors such as location, area, shape, and regional water have affected Qatar’s foreign affairs policy. Therefore, this study aims at illustrating the role of geographical factors in the country’s foreign affairs policy. What makes the study significant is that it is the first study which focuses on this topic in Qatar. Methods: The study has used to analysis the Foreign polices decisions two methods (i.e. Dwisha, 1977) (Dawisha) framework throughout the study. Results: The study revealed that some geographical factors had recently benefited Qatar during the forced siege by some GCC countries. Also, the political crises made Qatar depends mainly in its foreign affairs policy on the given energy resources alongside with a wide range of foreign relationships network with the effective countries in the international policy. This, enabled Qatar to overcome on the lack of space and population in order to enhance its economy to be out of the dominance of some GCC countries. Conclusions: Finally, the study approved that Qatar had inter-relation foreign network that positioned Qatar politically among countries, organizations, institutions comparing with large states. Keywords: Qatar’s geopolitics, Foreign policy, geographical factors, Qatar Siege, Gulf Cooperation Council (GCC).

Morphology of mergers and their impact on performance and accounting metrics in HEIs: evidence from a small European country

ABSTRACT The purpose of this study is to analyze the structural elements from mergers in higher education institutions (HEIs) of a small European country, Greece, and evaluate how merger morphology is related to performance criteria and ratios imposed by the Greek state. More specifically, this study provides a depiction of ten mergers of HEIs in Greece that were introduced by the state in order to absorb the previously existent thirteen technological educational institutes (TEIs) from Greek universities. The morphology of mergers is provided by examining several factors, such as: type of merger (merger by absorption or consolidation); type and number of entity involvement (two-partner or multi-partner); geographical area of newly formed HEIs (single-campus or multi-campus), with provision of number of campuses in different cities, etc. These merger characteristics are associated with the HEI performance in the post-merger era, and their performance is evaluated with public accounting metrics and funding on specific ratios imposed by the Greek state. The results provide evidence that public HEIs in Greece throughout the process of joining entities have demonstrated different levels of synergies after mergers, in terms of state funding, with better results for the case where there are campuses in three different cities. Also, this study supports that a state initiative for legislative intervention in HEI mergers could lead to different levels of synergies. Last, this study tries to provide new knowledge for the gap of economic impact of mergers’ characteristics of HEIs and offers an open framework for further research on a fruitful area.

An Empirical Analysis of Africa Continental Free Trade Area Economic Growth Prospects in the SADC Region: Evidence Using Autoregressive Distributed Lag-PMG Estimation Techniques

Inter-SADC trade relations of indebted small countries and their potential of ushering economic growth from AfCFTA are unclear in both the short and long run. The study aims to empirically examine if there are AfCFTA economic growth prospects for SADC nations in the short and long term through an examination of the trade openness-economic growth nexus, and how the external debt impacts economic growth. A panel of eight SADC countries is used from a period spanning 1996-2022. The study employs Autoregressive Distributed Lag (ARDL) and the Pooled Mean Group (PMG) estimation techniques. The findings suggest that trade openness impacts economic growth positively at the 1% level in the long run, whereas external debt impacts economic growth negatively at the 1% level in both the long and short run. The study also finds that causality runs from economic growth to trade openness and is unidirectional. SADC nations are urged to minimise the overreliance on external debt in the funding of domestic consumption needs as it has negative consequences on economic growth in the long term.

Integrated care in the Baltic states over a 5-year period: progress, challenges and future directions

Abstract Person-centered, multidisciplinary care is key to addressing evolving complex health needs. In Estonia, Latvia, and Lithuania, this pursuit of integrated care has gained momentum as an innovative approach to allocate resources more efficiently and improve patient outcomes. This study investigates the progress of integrating care in the Baltic countries from 2019 to 2024. It details key learnings, particularly for small European countries with limited resources. The Health Systems and Policy Monitor Network of the European Observatory on Health Systems and Policies undertook a cross-country study to better understand the progress in care integration in the Baltics. The Network’s Baltic country experts completed a 21-item questionnaire on the adoption of integrated care reforms. Responses were analyzed to capture reform characteristics and commonalities, countries’ political environments and their conduciveness to the uptake of integrated care. Country-specific experiences with the implementation of integrated care were further explored via case studies of pilot programs over the five years. The pace of implementing integrating care reforms varied in each country. Existing regulatory barriers, workforce challenges and payment schemes have impeded integration efforts across health and social care. Despite these obstacles, the political commitment to new and innovative service delivery and collaboration for chronic care management underscores an important prerequisite toward achieving more integrated and person-centered healthcare. The three case studies illustrate the hurdles that come with shifting care settings and expanding roles for some workers. Findings stress the role for integrated care to address organisational challenges in the Baltics. This study highlights innovative approaches and long-running efforts to provide multidisciplinary care for complex-needs patients and the implications of their results for broader health system adoption. Key messages • Small countries like the Baltics face structural challenges in integrating care to improve outcomes and efficiency. • Investment and innovative care approaches are key to further advancements.

What environmental and social factors are most relevant to the efficiency and performance of companies? The case of a small bank-oriented country

PurposeThis work aims to analyze the factors that influence the performance and efficiency of Portuguese companies, namely the influence of social and environmental features.Design/methodology/approachTo achieve our aim, we have used the Portuguese benchmark index, the Portuguese stock index – PSI, during the period from 2016 to 2020. To test the hypothesis panel data methodology was used, specifically, the GMM system originally proposed by Arellano and Bond (1991) and the Value-Based DEA developed by Gouveia et al. (2008).FindingsThe results of the GMM model show that social performance has a negative relationship with the company’s performance, from the perspective of different stakeholders, reinforcing that the cost-benefit trade-off of social spending is not yet understood as advantageous for the company’s performance. On the other hand, environmental performance, for external stakeholders, positively influences the company’s performance, perhaps due to pressure from society and the tradition of disclosing environmental matters. The value-based DEA results reinforce that from the perspective of the external stakeholder, non-efficient companies must increase their environmental performance to become efficient, highlighting the role of environmental performance in explaining efficiency. It is unanimous that social performance is still not seen as a lever of efficiency.Originality/valueThis is the first work to use a hybrid methodology to understand the performance determinants of a small banking-oriented country, emphasizing environmental and social aspects.

Cross-national characteristics and differences in type 2 diabetes: Malta versus Luxembourg

Abstract Introduction Type 2 diabetes mellitus (T2DM) is a significant global health concern, requiring a thorough understanding of its population-level features and impact. This study aims to compare the characteristics of T2DM in Malta and Luxembourg, two European nations with distinctive healthcare systems and societal attributes. Methods Data from national health surveys conducted in Malta and Luxembourg, encompassing various factors such as socio-demographics, medical history, biochemical metrics, and anthropometric measurements, were analysed to investigate the features of T2DM. Comparative analyses were conducted utilizing chi-square tests, independent t-tests, and multivariable binary regression. Results Malta (8.23%) and Luxembourg (7.82%) shared similar T2DM prevalence, with a predominance of men having T2DM. Malta exhibited a higher prevalence of obesity among the individuals having T2DM. Multivariable analysis showed no significant association between living in Malta or Luxembourg and diabetes. However, being male (OR: 1.49, CI 95%: 1.07–2.08, p = 0.02), an occasional smoker (OR: 2.49, CI 95%: 1.54–4.03, p < 0.01), increasing age (OR: 1.05, CI 95%: 1.03–1.67), and larger waist circumference (OR: 1.02, CI 95%: 1.01–1.04, p = 0.01) were positively associated with diabetes. Conclusions Understanding similarities and differences in T2DM between Malta and Luxembourg is crucial for identifying common challenges to formulate effective prevention and management strategies. Despite similar T2DM prevalence rates, notable differences in obesity rates and socioeconomic factors may contribute to disparities in disease burden. The complex interplay of numerous population characteristics underscores the importance of tailored public health interventions. This study accentuates the need for interventions and evidence-based policies to address modifiable risk factors, and advocate for cross-national cooperation to reduce the T2DM epidemic, especially in the context of post-COVID public health planning and resource allocation. Key messages • Malta and Luxembourg share similar T2DM prevalence despite differences in other factors, hypothesised to be attributed to differences in risk factor profiles and health care infrastructure. • This study underscores the necessity for tailored interventions and cross-national cooperation to address common challenges in T2DM management in the two small countries.

Addressing Regional Health Disparities: Estonia’s Approach to Burden of Disease Studies

Abstract Background Estonia, a small country defined by NUTS2 regions, faces challenges in assessing health disparities across its different counties when using global health data such as the Global Burden of Disease (GBD). Recognizing this limitation, Estonia initiated independent burden of disease studies in Estonia since 2013, with the findings being biennially published through the health statistics database of the National Institute for Health Development. The objective of this research is to assess the strengths and limitations inherent in various methods when calculating the years of life lost due to premature mortality (YLLs). Methods The approach to assess the burden of disease in Estonia differs somewhat from the Global Burden of Disease (GBD) methodology. One key distinction lies in our utilization of a national life expectancy table and our presentation of results at the LAU1 regional level. These burden of disease studies utilize region-specific life tables supplied by Statistics Estonia, categorized by county and gender, to compute Years of Life Lost (YLLs), offering an opportunity to pinpoint and tackle regional health issues. Results Since the calculation of YLL (Years of Life Lost) in these past studies has relied upon Estonia’s regionalized life tables, categorized by county and gender, the results exhibit substantial disparities when juxtaposed with the Global Burden of Disease study conducted by the Institute for Health Metrics and Evaluation (IHME). Conclusions This research aims to delve deeper into these variations, examining the challenges related to methodology, the availability, and the quality of data, and most importantly, knowledge translation. Our own burden of disease studies empowers us to formulate informed policy recommendations precisely tailored to the distinctive needs of each county, thereby facilitating targeted interventions, and driving improvements in overall public health outcomes.

Perceptions of Mental Health and Mental Health Care in Luxembourg: A High-Income Country

AbstractMental health care in high-income countries can have various rates of usage due to differences in accessibility, modality of psychotherapy, and potential stigma surrounding mental health (Alonso et al., 2004). This study aimed to explore perceptions of mental health and mental health care, stigma for mental illness, and perceived change in mental health due to COVID − 19 pandemic in a high-income country with relatively easy access to basic mental health care. An anonymous survey was sent to individuals who are 18 years and older and resident of Luxembourg, a small country in Europe (N = 56). Participants were asked a series of open-ended and forced choice questions. Descriptive statistics were calculated for forced-choice questions and inductive content analysis was used to analyze the open-ended responses. Participants defined mental health in a variety of different ways, and a majority reported receiving mental health services. There was no significant difference in participants’ ratings of mental health before and during the COVID-19 pandemic. Mental health professionals were relatively easy to find and were considered somewhat helpful, though participants also reported some stigma towards mental illness. Benefits and challenges of in-person and virtual therapy showed points of crossover and potential for further research. The current findings inform the broader literature on mental healthcare with implications for improving care in high-income countries.

Foreign direct investment in Singapore: the case of Pharmaceutical & Biological Products sector

Motivation: The motivation for the study was the fact that despite of being a small country Singapore is one of the largest recipients of foreign direct investment (FDI) in the world. It is also the location of the largest multinational enterprises (MNEs) in the Pharmaceutical & Biological Products sector.Aim: The objective of this article is to identify and assess the FDI scale and structure in Singapore in the years 1990–2022, with a focus on the Pharmaceuticals & Biological Products sector, and to show Singapore as an FDI location against the background of Asia and the world.Materials and methods: The article uses secondary data from the World Investment Report published annually by the United Nations Conference on Trade and Development (UNCTAD) and statistics published by the Department of Statistics Singapore (DOS). The study uses statistical and economic analysis, comparison, analogies, synthesis, and the method of measuring and aggregating data.Results: Singapore is one of the largest recipients of FDI not only in Asia, but also in the world. In 2022, Singapore’s share of FDI inflows to Asia was 21.3%, and its share of global FDI inflows was 10.9%. From 1998 to 2007, FDI stock in the Pharmaceuticals & Biological Products sector accounted for a significant share of total FDI stock in Singapore and the manufacturing industry, reaching over 40% in 2007. Since then, the share of the analyzed sector has been seeing a downfall. At the end of 2022, the share of FDI in analyzed sector was 4.9% of the FDI in the manufacturing industry and 0.6% of the total FDI.

Single nucleotide polymorphism (SNP) analysis reveals ancestry and genetic diversity of cultivated and wild grapevines in Croatia

BackgroundCroatia is a geographically small country with a remarkable diversity of cultivated and spontaneous grapevines. Local germplasm has been characterised by microsatellite markers, but a detailed analysis based on single nucleotide polymorphisms (SNPs) is still lacking. Here we characterize the genetic diversity of 149 accessions from three germplasm repositories and four natural sites using 516,101 SNPs to identify complete parent-offspring trios and their relations with spontaneous populations, offering a proof-of-concept for the use of reduced-representation genome sequencing in population genetics and genome-wide association studies (GWAS).ResultsPrincipal component analysis revealed a clear discontinuity between cultivated (V. vinifera subsp. sativa) and spontaneous grapevines, supporting the notion that the latter represent local populations of the wild progenitor (V. vinifera subsp. sylvestris). ADMIXTURE identified three ancestry components. Two sativa components are alternatively predominant in cultivars grown either in northern Adriatic Croatia and Continental Croatia or in Dalmatia (i.e. central and southern Adriatic Croatia). A sylvestris component, which is predominant in accessions from spontaneous populations, is a minor ancestry component in cultivated accessions. TREEMIX provided evidence of unidirectional migration from the vineyards to natural sites, suggesting that gene flow has gone preferentially from the introduced domesticated germplasm into local wild populations rather than vice versa. Identity-by-descent analysis indicated an extensive kinship network, including 14 complete parent-offspring trios, involving only cultivated accessions, six full-sibling relationships and invalidated a presumed pedigree of one of the most important varieties in Croatia, ‘Plavac Mali’. Despite this strong population structure, significant association was found between 143 SNPs and berry skin colour and between 2 SNPs and leaf hairiness, across two previously known genomic regions.ConclusionsThe clear genetic separation between Croatian cultivars and sylvestris ruled out the hypothesis that those cultivars originated from local domestication events. On the other hand, the evidence of a crop-to-wild gene flow signals the need for an urgent adoption of conservation strategies that preserve the residual genetic integrity of wild relatives. The use of this reduced-representation genome sequencing protocol in grapevine enables an accurate pedigree reconstruction and can be recommended for GWAS experiments.

Determinants of bank deposit in a small economy’s banking sector: a study of Fiji

Purpose Deposits, a liability component of banks’ balance sheet, are an important source of funding for commercial and retail banks. In this study, the authors consider deposits as dependent variable and examine factors (bank-specific, macrofinance and structural) that could plausibly explain deposits. Subsequently, the findings are expected to support analysts, bank managers and regulators, especially in small economies such as Fiji, for asset–liability management. Design/methodology/approach This study uses a balanced panel of six commercial banks and two credit institutions over the period 2000–2022. To control for bank heterogeneity, a fixed-effect regression method is used. Findings Bank-specific variables such as bank size, profitability, loan-to-deposit ratio and bank stability are positively associated with bank deposits, whereas the capital adequacy ratio is negatively associated with bank deposits. Macroeconomic variables such as remittances and gross domestic product per capita are positively associated with bank deposits. Moreover, institutional variables such as control of corruption, political stability and regulatory quality are positively associated with bank deposits. However, tail events such as the global financial crisis of 2007–09 and the COVID-19 pandemic negatively influence bank deposits. Structural breaks for 2007 and 2011 of two banks (Bank of the Baroda and Bank of the South Pacific, respectively) are positively associated with bank deposits. Originality/value Previous studies have considered profitability, competition, nonperforming loans and stability of banks in Fiji. To the best of the authors’ knowledge, this study is the first to consider the determinants of bank deposits, an important source of funds for banks in many small countries including Fiji. In addition, this study examines the impact of structural breaks, tail events such as the recent pandemic (COVID-19) and institutional variables.

Building noise maps in Uruguay: a practical methodology

Uruguay is a small country in Latin America, with around 3400000 inhabitants. Its environmental legislation is still incomplete; for example, there is no national regulation on noise but only departmental Ordinances in each of its 19 Departments. Although it is well-known that they are very good management tools, noise maps are not mandatory in Uruguay. The Research Group on Environmental Noise at Universidad de la República has developed a research project that seeks the best practical methodology to build noise maps through manual measurements. The field work included the determination of the stabilization time of noise measurements, the comparison between long- and short-time measurements, the comparison between measurements taken at 1,20 m and 3,50 m, and the obtention of a national curve of highly annoyed people (%HA) with basis in the field measurements and simultaneous survey carried out on site. In this paper we present the results of these works and the proposed methodology for building noise maps throughout the country.

Bridging Culture and Leadership: Unveiling Values and Styles in North Macedonia

Culture and leadership display various patterns of interrelationship across countries and regions. However, research is sparse for Slavic countries and especially for small countries like the Republic of North Macedonia. Therefore, this paper tries to explore the linkages between culture dimensions and preferred leader behavior in the country focusing on differences between the capital city of Skopje and the rest of the country. The study utilizes Values Survey Module and Leader Behavior Description Questionnaire XII on a sample of 259 employees. The results show statistically significant differences for one cultural dimension and most of the preferred leader behavior dimensions. There is a complex matrix of positive and negative correlations between the culture dimensions and preferred leader behavior with regional variations in the correlation matrix. Having in mind the small and convenient sample, more studies are needed to further explore such linkages.

Technological hedging and differentiated responses of Southeast Asian countries to U.S.–China technological competition: a case study on artificial intelligence (AI)

The rise of artificial intelligence (AI), represented by ChatGPT, has triggered a new wave of technological competition between nations. Major powers like China and the United States, backed by abundant resources, dominate the discourse and hold a significant advantage in the AI field. However, as the technological rivalry between these two countries intensifies, AI represents a classic ‘double-edged sword’ for many small and medium-sized countries. Therefore, the core argument of this paper is that the AI policies of small and medium-sized countries are not simply about bandwagoning or depending on major powers. At their core, these policies represent a complex form of technological hedging. External security concerns drive small and medium-sized countries to adopt hedging as a primary strategy, while internal interest preferences influence the varying intensities of this technological hedging. The findings of this paper indicate that small countries’ technological policies can be categorized into three models: strong hedging, medium hedging, and weak hedging. Different paths of technological hedging reflect the rational balance these nations make between security and economic interests in different contexts. The case of AI development in ASEAN also demonstrates the significant imbalance between member states. Singapore is classified as a technological frontrunner, while Malaysia, Indonesia, and Vietnam are categorized as followers. Laos, Cambodia, Myanmar, Thailand, Brunei, and the Philippines are considered latecomers in the field of AI. In terms of specific AI policies, Singapore and Vietnam adopt a strong technological hedging strategy, seeking more cooperation and interaction with the U.S. or other countries due to caution and concerns about China’s technological security. Malaysia, Indonesia, Thailand, and the Philippines follow a medium hedging strategy, while Cambodia, Laos, Myanmar, and Brunei adopt a weak hedging approach. The differences in hedging intensity are primarily due to varying internal legitimacy pathways and the strength of backup resources. ASEAN member states pursue different technological paths based on their own circumstances to promote AI development.

Sustainable Recovery in Health Tourism: Managerial Insights from a Mediterranean Destination during the COVID-19 Pandemic

Health tourism, a sector that has gained increasing global attention, particularly in the context of sustainable development, is poised for significant growth even in the face of the COVID-19 pandemic. This study investigates the challenges faced by the health tourism sector in a small Mediterranean country, focusing on sustainable recovery strategies. The current study aims to determine managerial implications post-COVID-19, emphasizing sustainability in operational practices and long-term demand growth. We conducted in-depth interviews with 32 health tourism managers and experts, and the qualitative content analysis with Leximancer identified key themes such as sustainable demand management, organizational adaptation, and crisis recovery. This study revealed eight critical themes related to managerial survival and the demand for sustainable practices in health tourism, namely “demand”, “hotel”, “tour operators”, “employees”, “crises”, “social media”, “word of mouth”, and “time”. These findings underscore the importance of integrating sustainability into tourism recovery strategies, ensuring long-term resilience for the industry. This study, which provides theoretical and practical insights into the sustainable growth of health tourism amidst global crises, serves as a valuable reference for stakeholders seeking sustainable development solutions, inspiring them to contribute to the sector’s growth.

Debiasing large language models: research opportunities*

ABSTRACT Large language models (LLMs) are powerful decision-making tools widely adopted in healthcare, finance, and transportation. Embracing the opportunities and innovations of LLMs is inevitable. However, LLMs inherit stereotypes, misrepresentations, discrimination, and societies' biases from various sources–including training data, algorithm design, and user interactions–resulting in concerns about equality, diversity, and fairness. The bias problem has triggered increased research towards defining, detecting and quantifying bias and developing debiasing techniques. The predominant focus in tackling the bias problem is skewed towards resource-rich regions such as the US and Europe, resulting in a scarcity of research in other societies. As a small country with a unique history, culture and social composition, there is an opportunity for Aotearoa New Zealand's (NZ) research community to address this inadequacy. This paper presents an experimental evaluation of existing bias metrics and debiasing techniques in the NZ context. Research gaps derived from the study and a literature review are outlined, current and ongoing research in this space are discussed, and the suggested scope of research opportunities for NZ are presented.

CURRENT CONDITIONS IN TOBACCO PRODUCTION IN MACEDONIA - SUSTAINABILITY ANALYSIS, DEVELOPMENT POSSIBILITIES AND FUTURE PERSPECTIVES

The Republic of North Macedonia, both regionally and globally, is known for producing high-quality aromatic Oriental tobacco. It is a country where quality types of Oriental tobacco are traditionally cultivated, alongside well-known regions in Turkey, such as Izmir and the Aegean region, where there are ecological conditions for producing high-quality Oriental tobacco. As a small continental country in the Balkans, Macedonia represents a "golden triangle" in the process of Oriental tobacco production and a long-term relatively stable traditional producer compared to surrounding countries that also produce this type of tobacco. Driven by the demands of the global market, scientific and technological advancements worldwide, and the available natural, production, and human potentials, it can be stated that today, and even more so in the future, there will be a significant need to elevate the quality of tobacco production to a much higher level, considering the demands of buyers and the need for efficient and effective production. Looking ahead, tobacco production, with certain oscillations, has a stable trend in movements, with gentle upward trends in global production, which our country must also follow and adapt to. The future of tobacco production will largely depend on good agricultural and export policies, as well as good state subsidy policies, all aimed at encouraging and directing the young, capable population towards tobacco production, where they will see not only an opportunity for existence but also space for development, expansion and certainly profit.

Neoclassical Realism and Armenia’s International Orientation: An Attempt to Determine Patterns or Mechanisms of their Application?

The article examines neoclassical realism and Armenia’s international orientation as one of the directions in the transformation of the theory of international relations of small states. In this article, neoclassical realism is analyzed from the point of view of subjective aspects of policy formation and the influence of domestic political features of a small state on its foreign policy. Taking into account that neoclassical realism is a completely independent development of neorealism with a complementary elemental level of analysis of international politics. In terms of content, neoclassical realism of Armenia clarifies such concepts as resilience, national security, balance of power, balancing policy and others. The neoclassical model of Armenia’s foreign policy as a small state allows us to study the conditions under which great powers and small states deviate from the policy of balancing. From this point of view, the article proposes to analyze international politics through the prism of a global rollback to state-centric politics. The article takes into account that globalization presents new challenges for small countries such as Armenia, which risks being marginalized as a result of the restructuring of both global and regional economic relations.

Smart Answers to GLoBE Challenges Faced by a Small Country

In this note, the authors highlight the challenges that Hungary, a small country with a low corporate income tax rate, faced in implementing Pillar Two. The intention was to comply with the global minimum tax rules while keeping as much of the country’s attractiveness to foreign investors as possible at the lowest cost to the state budget. This was achieved by a range of targeted measures which may serve as a best practice for other countries in a similar situation.