Entrance of the Czech Republic and Slovakia into the EU
Czechoslavakia and the Changing European Political Landscape
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Get Help Now!The world is an ever-changing mosaic of national boundaries. The 1993 dissolution of former Czechoslovakia into the Czech Republic and Slovakia dissolved the former Communist Party of Czechoslavakia. The new government is a non-communist, capitalist entity. The European Union is currently undergoing a long process of integration. This research will examine advantages and disadvantages of the Czech Republic and Slovakia joining the integrated European Union.
At first sight, the issue of the newly formed separate republics merging would appear to be a step backward in terms of political sovereignty. However, to understand the implications of unification fully, one must examine what the transformation means in terms of the new republics that are formed. One of the key factors is that the old regime represented a communist society. This form of government is not compatible with the new European Union. Communism is rigid and depends on equal distribution of goods between the people. One of the goals of the EU is to allow each of the individual countries to continue functioning with their own form of economy.
The logistics of integrating a capitalist economy with a socialist economy would be difficult, if not impossible. Integration of the fledgling capitalist economies into the EU would help them to come into compliance with newly emerging global standards. This would be a boost to their ability to grow their new economy. The new republics would immediately gain the benefits of an established marketplace to sell their goods. They would have an abundance of shared technology, which could help them to build their markets more quickly than if they remained independent. They would have access to excellent successful examples from which to learn.
Initially, the dissolution of Czechoslavakia had a devastating effect on the economies of both countries. One of the key negative effects was the severing of ties with former International trading partners. Old trading partners severed ties out of fear that they would inadvertently cause favoritism between the two. Rather than risk a politically touchy situation, most trading partners chose to sever ties altogether. This left the new economies with no established market for their goods. They had to start building partnerships again from the beginning.
The abilities of the two countries to survive after the dissolution was not equal. It was initially hoped that both countries would be able to survive on their own. However, this did not happen as anticipated and the Czech Republic had to prop up the economy of Slovakia until 1991. The level of GDP growth for Slovakia has been lower than that of the Czech Republic, but its growth rate has been higher. Membership in the EU meant many changes for both of these countries. For instance, workers must be allowed to cross any border that they wish in order to obtain or perform work. Therefore, citizens may cross into either country without restriction.
The change from communism to capitalism requires the people of the country to adopt a more independent mindset than a communist society requires. They have to learn a new way of doing business. They have to learn to produce a product and take it to market in the face of competition. These are new concepts for those who grew up in communist societies, where the government assured consistent sales, as long as minimal production standards are met. If individual businesses within the country are not ready for the transition into the global marketplace, they may have difficulty competing. This could have a negative impact on the ability of the new economy to survive.
There are advantages and disadvantages to joining the EU, depending on how ready the country is to make the leap into a competitive market. Differences forced former Czechoslavakia to separate. Now, each of the fledgling republics must be evaluated on their own merits. The Velvet Revolution of 1989 destroyed the socialist republic. By the 1990s, the Czech Republic’s GDP per capita was 20% higher than Slovakia’s. This may indicate better readiness to move into the European Union and the capital market system. Prior to 1991, transfers were made from the Czech budget to help finance Slovakian interests. This indicates a greater state of readiness for the Czechs than for Slovakia.
Feelings in the country are mixed as to whether the two countries should be completely independent or whether they should continue with shared interests. The current situation in the countries was decided by politicians, without regard to the wishes of the populace. The division was peaceful and now each of the new countries are free to decide their own separate destinies. Both countries were formally admitted into the European Union in 2004. Both countries adopted their own currencies.
Entrance into the EU has had different effects on the economies of the Czech Republic and on Slovakia. Of the two, the Czech Republic was initially able to withstand the changes better than Slovakia. However, with time Slovakia is adjusting to the changes and continues to experience a healthy level of growth. Entrance into the EU has allowed both countries access to resourced that they did not have in the past. These opportunities are beginning to have a positive impact on the Czech Republic and on Slovakia. Entrance into the EU presents many opportunities for both countries that were not present in the past.
References
Central Intelligence Agency. Global Factbook. Slovakia. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html. Accessed December 21.
Fidrmuc, J. & Fidrmuc, J. 2000. ”
Macroeconomic Developments in the Czech Republic and the EU Accession Process,”
Working Papers ir00008, International Institute for Applied Systems Analysis.
Frias, I. & Iglesias, a., 2004. ”
Economic Challenges and Cosequences of the EU Enlargement for Trade and Development of Candidate States,”
Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(1), pages 55-72.
US Department of State. Background Note: Czech Republic. Retrieved at http://www.state.gov/r/pa/ei/bgn/3237.htm. Accessed December 21, 2007.
Vaknin, S. 2005. “KLA – the Army of Liberation.” March 29, 2005. Retrieved at http://www.globalpolitician.com/articledes.asp?ID=500&cid=3&sid=10. Accessed December 21, 2007.
A rias, I. & Iglesias, a., 2004. ”
Economic Challenges and Cosequences of the EU Enlargement for Trade and Development of Candidate States,”
Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(1), pages 55-72..
US Department of State. Background Note: Czech Republic. Retrieved at http://www.state.gov/r/pa/ei/bgn/3237.htm. Accessed December 21, 2007
Central Intelligence Agency. Global Factbook. Slovakia. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html. Accessed December 21.
Frias, I. & Iglesias, a., Ibid.
Central Intelligence Agency. Global Factbook. Slovakia. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/lo.html. Accessed December 21.
J. Fidrmuc & J. Fidrmuc, 2000. ”
Macroeconomic Developments in the Czech Republic and the EU Accession Process,”
Working Papers ir00008, International Institute for Applied Systems Analysis. [Downloadable!]
US Department of State. Background Note: Czech Republic. Retrieved at http://www.state.gov/r/pa/ei/bgn/3237.htm. Accessed December 21, 2007
Vaknin, Ibid.
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