chapter  6
24 Pages

PRIVATIZATION IN CZECHOSLOVAKIA

WithOlivier Bouin

The Czechoslovak transition towards an open market economy represents one of the most dramatic changes brought about by the ‘Velvet Revolution’ of November 1989. Debates over the scope, speed and sequencing of economic reforms were carried inside Civic Forum, the leading political force that gained nearly 60 per cent of seats in the Federal Assembly after the June 1990 elections. These debates rapidly led to the victory of the most radical reforming approach supported by Federal Minister of Finance, Vaclav Klaus, and consequently to the disintegration of Civic Forum in February 1991. Since then, the Czech Civic Democratic Party (the influential conservative party created and presided over by V.Klaus) has been deciding upon and implementing radical reforms.