ABSTRACT
On 30 November 1997, Prime Minister Klaus handed in his government’s resignation in the wake of a political and economic crisis. The departure of Klaus and his government marked the dissolution of the Klausian project and a profound reorientation of state strategy in relation to foreign investors. The economic programme of the caretaker government of Josef Tosˇovsky´, who was sworn in on 2 January 1998, included the aim of attracting foreign direct investment. The Social Democratic government, which took power in June 1998, would make attracting foreign investors a focal point of its economic strategy. These developments in the Czech Republic opened the race for greenfield investors in the V4. The 1998 rolling out of the most generous investment scheme yet among the transition countries was followed by the introduction of investment schemes in Poland and Slovakia and the reinvention of the investment scheme in Hungary (Mallya, Kukulka, and Jensen, 2004; UNCTAD, 2002).
