The vast areas of the nations of Eastern Europe and the western part of Russia are populated by a great diversity of ethnic groups. This portion of Europe experienced slow economic development, and it remained in fact a peasant society until the 20th century. Even today there are numerous areas where old customs and traditions predominate. Historically this region was subject to a variety of influences from the outside: from Western Europe and the Latin, Catholic countries; from the brilliant civilization of the Byzantine Empire and its Eastern Orthodox church; from the Islamic Middle East; and from the Mongol invasions.

Some of the best-known folk products were the Russian icons and toys. Icons, painted images of the saints, were hung in churches and on the walls of homes. The toys were intricate wood constructions or earthenware miniatures. Some of the other arts included ceramic tiles, wooden and ceramic figurines, and bone carving.

For most of the 20th century these countries had Communist governments that promoted the revival of folk arts and the organization of artists into cooperatives. Such a policy tended to blur the distinction between genuine folk art and commercialized products.

Northern Europe. Norway, Sweden, Denmark, Finland, northern Germany, and portions of northern France and the Low Countries were mostly untouched by strong influences from the Roman Empire. The early background in the folk arts derived from the distinctive mythology of the region. When the Reformation spread through these areas, the use of Catholic imagery in art was discouraged.

In more densely populated France, Germany, and the Low Countries, folk arts throve in the early periods. But in the late Middle Ages the establishment of trade routes and the rise of urban manufacturing centers pushed folk arts into the periphery of life. The products that were once made in remote places became quickly commercialized as the demand for them grew. Such products found use in urban areas for celebrating festivals such as Mardi Gras.