Privatization in Czechoslovalia and Its Role in Economic Reform
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Authors
Zmuda, Heidi
Issue Date
1991
Type
Thesis
Language
en_US
Keywords
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Abstract
For the past two years the Czech and Slovak Federal Republic
has been a country faced with great challenges and changes. The
objective is to erase all marks of communism within their
society. In the political arena, changes have come rather
quickly, establishing a democratic government for the people. In
the economic arena however, the challenges have been much more
complex. For Czechoslovakia, economic reform has meant a two
fold challenge; establishing framework for a free market economy,
while at the same time having to deal with the existing economic
disrepair left by the command economy.
To get a better understanding of present day economic
conditions, this paper briefly expands upon the events which have
lead up to and caused such conditions. Once one of the most
industrialized nations in Europe, Czechoslovakia's weak political
structure gave way to communist domination and eventually Soviet
occupation. Under this communist state, Czechoslovak enterprise
and financial structure became obsolete and inefficient. Years
of disintegrating economic conditions and growing dissent
resulted in a successful revolution, establishing the present day
state.
The newly established government has shown its commitment to
reform through legislation, guidelines and the creation of task
ministries to oversee reforms. As presented in this paper,
reform has been divided into four major tenants: 1) Price
liberalization 2) trade liberalization J)Financial sector and 4)
privatization. While all points are crucial to reform,
privatization is a central means of bringing about a successful
market economy.
Privatization in Czechoslovakia means distributing nearly
all enterprises to the private sector in order to give the
economy back to the people. Plans for privatizing enterprises
have been created, but the difficulty now lies in the limitations
of the economy and the uncertainty which lies ahead.
While this paper presents the importance of privatization,
it also discusses how other factors in reform come into play.
Taking all of this into consideration, this paper gives a broad
view of the challenges facing the implementation of reform and
how these changes are affecting the society.
Description
iii, 71 p.
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