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Czechoslovak Economy In 1980s

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Author Info
Alexej Bálek
Abstract

The Study analyzes the development of the Czechoslovak economy in the 1980s, which was the last decade of the existence of socialism. It shows that Czechoslovakia did not catch impulses which two oil shocks accelerated in Western countries, and which led both to the technical revolution in sphere of energy intensity of production and to computerization and automation. It documents that growth rate of the CS economy in the 1980s was decelerated and lower than in the Western Europe. The consequences of this trend were reflected in the fact that differences between CS economy and similar countries of the West were continuously deepened. The integration into international distribution of labour was low. As regards the West it was influenced particularly by the circumstances of the Cold War, as for the East by very low efficiency of integrating process of the socialist countries. It can be documented, for example, by the unfavourable progress in terms of trade. The structure of the CS economy was formed in accordance with "demands" of the socialist countries. There were both abnormal proportion of the fuel-energetic and metallurgic complex, and the low proportion of those economic sectors being vehicles of progress in economy and society. The living standard of inhabitants was based on model grounded on socialist principles. The complete economic mechanism was to this model adopted. And over time the logic of the system drew apart the needs of the state. Thenceforth the study gives attention to the problem of equation of Slovak and Czech economy after 1918 when Slovakia, as not too much developed country, and Czech lands were united in one state. In spite of considerable successes in this field this has not led to consolidation of Czechoslovakia. On the 1st January 2003 Czechoslovakia has split up and two new states originated - Czech Republic and Slovak Republic.

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Article provided by University of Economics, Prague in its journal Acta Oeconomica Pragensia.

Volume (Year): 2007 (2007)
Issue (Month): 7 ()
Pages: 45-54
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Handle: RePEc:prg:jnlaop:v:2007:y:2007:i:7:id:176:p:45-54

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Related research
Keywords: extensive economic system; backwardness of economic level; structure of economy; integration process in Comecon; stabilization of region economic level;

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