The rise and fall of Czech capitalism. Economic development in the Czech Republic since 1989

Book abstract:

Czechoslovakia was the best placed of all the former communist countries of east-central Europe as the old regimes collapsed in 1989. Perhaps emboldened by that strength the nation's political and economic leaders strode forth on the path to create a specifically 'Czech' capitalism. The new found freedom, unfettered by the trappings of Soviet bloc disciplines, encouraged a 'freethinking' approach to economic systems and the establishment of financial institutions as the essential building blocks of a capitalist economy. It was assumed that, like mushrooms, left alone in the dark they would grow naturally. Much else happened in the dark - less open government gave rise to corruption and dubious links between business and politics.
The work explores the key areas for the development of 'Czech' capitalism - the strategy for privatisation, the development and role of the banking sector and developments in the big manufacturing enterprises. The impact of inward investment is examined with particular emphasis on the automobile sector. The author draws upon his many years of research on the Czech economy and experience of working with the Economist Intelligence Unit on Czechoslovakia and the Czech Republic. He is to be congratulated upon his detailed analysis of the economic transformations of this single country which might have relevance to the economic progress of the less well developed countries of the former communist bloc.
The work will interest academics, students and researchers engaged in the fields of economic transition, European integration, international finance and political science.
Martin Myant is a Professor at Paisley Business School, University of Paisley, UK.