Introduction - Economic History of the Czech Republic in Brief.
09.01.2007 / 03:25
This chapter will show the following information: Bilateral Economic Relations, Investment Climate, Business Information, Credibility of the Czech Republic Services of the Commercial and Economic Section, Czech Republic in the European Union, Statistical Information that provides you the fundamental introduction of the Czech economy.
The Czech Republic has been known for its high standard of technology since long and has always been a major trading partner to many European countries.
In 19th century, the industry in Bohemia developed remarkably along with the industrial revolution, and then the region became one of the most prominent industrial districts in central Europe. After the establishment of an independent state in 1918, Czechoslovakia,then ranked among the top developed states in the world. At the outset of the 20th century, the territory of the Czech Republic was one of the most economically developed regions in Europe, and was without doubt the most industrial district of Austria-Hungary.
In November 1989, the communist regime collapsed. Then the country had to go through the crucial and painful economic reforms as well as the major political reforms.The new government was settled in 1989 and began radical economic reforms right after. They were aiming to reconstruct the economic system in the country toward a standard market economy, emphasizing private ownership and maximum reduction of state expenditures. Gradually foreign trade restrictions were cancelled, and the remnants of price regulation were entirely abolished on January 1, 1991.
There were dramatic changes at the level where people could feel more directly. In fact, there was an argument in the government, nevertheless, there were extensive restitutions of property that had been nationalized since 1948. And then, the process of privatizing national property began, the process of total industrial transformation alsobegan. According to the loss of the markets, some industries had to experiencepainful readjustment s and shift to more lucrative businesses, or they had to wind up. The process of economic transformation sometimes slowed down or some major corporations 'privatizationtook years to be finalized. Despite all the difficulty, people in the Czech Republic accepted the economic transformation affirmatively and supported it. The main direction proved to be appropriate, and the Czech Republic took the first step to rejoin the standard European market-oriented economy.
Coming through periods of alternating booms and recessions in centuries, twoworld wars, the 40-year socialism eraand the peaceful separation from Slovakia, the Czech Republic todaystands as a modern, developed and independent country. The process of system transformations in the entire country was completed significantly when the Czech Republic affiliated with the European Union May 1, 2004.