The Czech Republic

Transitional Success:

USSR to EU

Public finance policy issues during the political economic transition from centrally planned socialist economics to free market democratic capitalism.

V550 Dr. Mikesell

November 20, 1996

Rick Ferguson rfergus@indiana.edu

Eric Martin emartin@indiana.edu

Dmitri Maslitchenko dmitri@mailroom.com

Table of Contents

I. Introduction

II. Political Summary: Restructuring for Transition

III. Transition to Market Economy: 1990 - 1991

IV. Problems of Transitional Monetary Policy and the Financial Sector: An
Overview

V. Macro Economic Stability: 1993 - present

VI. Monetary Policy: 1993

VII. Intergovernmental Financial Relations

VIII. Budgetary Overview: 1993 - present

IX. Tax Reform

X. Current Political Economic Considerations: 1996

XI. The EU and NATO

XII. Conclusions

XIII. References

Introduction

In 1989, after nearly 40 years of Soviet control, Czechoslovakia once again became an independent nation, the Czech and Slovak Federalist Republic.
This transition from Soviet socialism to democracy culminated throughout
Central and Eastern Europe with the literal collapse of the Berlin Wall in
East Germany, the heroic Gdansk Shipyard Strikes in Poland. The student and worker protests in Prague and Budapest were no less important.

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