ABSTRACT
The Czech Republic has a turbulent history. After the First World War, it formed the country Czechoslovakia, together with the current Slovakia. After the Second World War, Czechoslovakia came within the Soviet sphere of influence. For decades, the country had a communist regime. Massive demonstrations in November 1989 were the starting point for dramatic political changes: the Soviet authority collapsed. As stated, much has changed in the Czech Republic’s economic situation since the fall of the Communist regime in 1989. One of the main economic changes is the large- scale privatization that took place. The Czech Republic is divided into 14 administrative regions, which are often made up of several municipalities. These administrative regions have the autonomy to change certain regional legislation. The municipal border of the city of Prague coincides with an administrative region, giving the City of Prague more legislative power than other Czech cities.
