In 1989 the Velvet Revolution started the fall of Communism in Czechoslovakia. In the 28th of November the Communist party gave up power and ended it the single party government that ruled over Czechoslovakia. In 1993 the country split and the Czech Republic formed, as did Slovakia. With this new freedom and formation of a country made up of a majority of ethnic Czech people the future seemed bright. However, even thought the Czech Republic was free from communist oppression, it still faced important challenges, including forming a capitalist economy after years of dependency on the Soviet Union and trying to fix the numerous environmental problems that were caused by ...view middle of the document...
The more western portions of Czechoslovakia had an economy that was similar to Western Europe with its amounts of industrial output, but they still were not at the same level of industrialization as France or Britain. After the end of WWII most of the eastern European countries were left in shambles because of the fighting within their borders, and Czechoslovakia was no exception. Czechoslovakia suffered both from loss of population and destruction of infrastructure (Economies in Transition, n.p.). During the Second World War Germany broke up Czechoslovakia and gave it to surrounding nations that were allied with Germany. During the time of the war there was underground opposition to the Germans among the Czechoslovakian people. The Slovakian part of the country united with the Germany army and fought with them while the Czechoslovakian Army fought for as long as they could against the superior German forces. When Germany and its allies were defeated the Soviet armies were the ones that liberated the majority of Czechoslovakia. This lead the country to be more supported of falling under Soviet control and also prospered a long lasting dislike for the German people (Weltkrieg, n.p.).
Prior to communism Czechoslovakia had a very strong and balanced economy, which was one of the best in the regions. With the take over of communism the government placed emphasis on heavy industrialization and neglected agriculture and the manufacturing of consumer goods. Czechoslovakia had a skilled and efficient labor force but under communism the incentives for work were not high enough which caused low productivity and poor quality of the goods that were produced. Combined with the inefficiencies that went along with central planning the economy was in major trouble. With Alexander Dubcek’s rise to power Czechoslovakia had high hopes for economic reforms that could help them turn their economy around. Despite his reforms the economy continued to struggle and the struggle continued until 1989 where communism ended and Czechoslovakia had the chance to adapt a capitalist economy (Czech Republic, n.p.).
The Czech Republic’s formation of a capitalist economy:
After the end of communism Czechoslovakia had the ability to start its own government and go back to the successful economy that it had before World War II. When communism ended Czechoslovakia no longer had a market for the goods that they were producing. Most of their exports went to the Soviet Union and other countries in its sphere of influence. Western Europe did not want the lower quality goods that were being produced in Czechoslovakia, which lead to a massive decrease in demand for the goods that were being produced. In 1992, when the Czech Republic formed it began to privative its industries (Jenerálová, n.p.). Even before the communist reforms to economy, Czechoslovakia had centralized a majority of its industries because of this privatization was a major challenge (Flanagan, n.p.).
The Czech Republic...