ABSTRACT

In the first elections of 1990, all serious political parties, even the communists, announced themselves in favor of a market economy. By 1994, Czech economics minister Karel Dyba was inclined to protest the listing of the Czech Republic among the so-called "emerging markets". "Forget it", he said, "We have already emerged". The most serious shocks of economic transition, however, could still lie ahead. Freed from the direct influence of the Klaus program, the ruling Slovak MDS promised a more measured economic transformation and the abandonment of the radical agenda promoted by Czech politicians. Economic indicators began to improve about the time of the ouster of Meciar's second government in the spring of 1994, but Czech and Slovak economic prospects still diverge, as they have in fact since 1918. The idea of buyouts by foreign investors caused political qualms; a massive infusion of foreign investment could very easily give foreigners disproportionate political and economic influence and compromise Czech and Slovak independence.