In 1981, the winner of the Best Foreign Language Film Oscar was the Hungarian drama, Mephisto.
The five nominees were:
Mephisto, Hungary (winner)
Man of Iron, Poland
The Boat Is Full, Switzerland
Muddy River, Japan
Three Brothers, Italy
The N.Y. Film Critics Circle voted Pixote as the Best Foreign Language Film.
There were many good foreign language films that were disregarded by the Academy, among them:
Diva, France, by Beinex
Lili Marlen, Federal Republic of Germany, by Fassbinder