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Because Czechoslovakia inherited the greater part of the industries of the Austro-Hungarian Monarchy, it was economically the most favored of the Hapsburg successor states. Benefiting from a liberal, democratic constitution (1920) and led by able statesmen, the new republic appeared to have a bright future. Redistribution of some of the estates of the former nobility and the church generally improved the living conditions of the peasantry. In foreign policy Czechoslovakia relied on its friendship with France and on its Little Entente with Yugoslavia and Romania.
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