The reform experiment in the Czech Republic was characterized Pferadtha and quickly applied and reap the fruit, where shock method chosen then treat the negative effects of economic transformation, it has pursued a privatization program succeeded in titling companies to citizens coupons system.
The shift its economy to a market economy, it has been the fastest in Europe, the Czech experiment has succeeded "shift shock" with the effects of absorbing shocks socially.
It is understood that the Czech Republic one of the most important industrial regions in Europe, the beginning of the twentieth century, and between the two wars, the Czech Republic was one of the ten industrialized nations in the world, but that during the forty years under the centrally planned economy, the deterioration of the country's situation economically, and with the development of events in 1989, it opened up in front of Czechoslovakia way back to a market economy, and the division of Czechoslovakia accelerated the process of economic transformation in the Czech Republic.
The transition process has to 0 a market economy in the Czech Republic on the five foundations of economic reform are:
First: the liberalization of prices and foreign trade.
Second: the unification of the national currency exchange rate.
Third: privatization.
Fourth, monetary and fiscal consolidation.
Fifth: tax reform.
The reform process began in 1991, but the rapid transformation through shock, launched in 1993 (after the separation of the Czech Republic) and is nearing its end in 1997, was behind this crucial political decision.
And it came shift shocks positive results fast, where the growing GDP in 1997 by 95 percent compared to what it was in 1990.
The total industrial output growth rate of about 85 percent, as the deficit has declined in the state budget, and stabilized the national currency rate against other foreign currencies.
Czech privatization has been characterized Bmmahan experience presidents: Speed and participation of workers, and perhaps the trend was to ownership of workers for companies in order to speed up the privatization more than it was designed to Social Security.
It can be said: The experience of privatization in the Czech Republic was the fastest in Central and Eastern Europe, where privatization has three thousand companies, and did not remain only some of the companies in the energy and power sector.
The privatization took place in three ways:
The first is the sale of the entire company, or be divided into units and sell each unit separately as a way again, or the contribution of workers in companies by giving them coupons represent stakes in the company's capital, a third way.
However, the ownership system through coupons may be is responsible for the modest stakes in foreign companies that have been privatized. The foreign investors did not accept often Czech estimates of corporate assets.
Whatever the results of the Czech privatization experience, the process has for the most part, and it was decided the completion of the privatization programs in full during the year, as the government raised at the time the remaining companies in the energy and power sector privatization to foreign companies in order to reduce the dependence of states on Russia Import of oil and gas.
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