Czechoslovakia

Czechoslovakia (Czech: ?eskoslovensko, Slovak: ?esko-Slovensko/before 1990 ?eskoslovensko, German: Tschechoslowakei) was a country in Central Europe that existed from 1918 until 1992 (except for the World War II period). On January 1, 1993, it peacefully split into the Czech Republic and Slovakia, in what was known as the Velvet Divorce, by analogy with the Velvet Revolution.

Economy, foreign trade and financial system

Main articles: Economy of Communist Czechoslovakia and Economic History of Communist Czechoslovakia

Related Topics:
Economy of Communist Czechoslovakia - Economic History of Communist Czechoslovakia

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After WWII, economy centrally planned with command links controlled by communist party, similar to Soviet Union. Large metallurgical industry but dependent on imports for iron and nonferrous ores.

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• Industry: Extractive and manufacturing industries dominated sector. Major branches included machinery, chemicals, food processing, metallurgy, and textiles. Industry wasteful of energy, materials, and labor and slow to upgrade technology, but country source of high-quality machinery and arms for other communist countries.
• Agriculture: Minor sector but supplied bulk of food needs. Dependent on large imports of grains (mainly for livestock feed) in years of adverse weather. Meat production constrained by shortage of feed, but high per capita consumption of meat.
• Foreign Trade: Exports estimated at US$17.8 billion in 1985, of which 55 percent machinery, 14 percent fuels and materials, 16 percent manufactured consumer goods. Imports at estimated US$17.9 billion in 1985, of which 41 percent fuels and materials, 33 percent machinery, 12 percent agricultural and forestry products other. In 1986, about 80 percent of foreign trade with communist countries.
• Exchange Rate: Official, or commercial, rate Kcs 5.4 per US$1 in 1987; tourist, or noncommercial, rate Kcs 10.5 per US$1. Neither rate reflected purchasing power. The exchange rate on the black market was around Kcs 30 per US$1, and this rate became the official one once the currency became convertible in the early 1990s.
• Fiscal Year: Calendar year.
• Fiscal Policy: State almost exclusive owner of means of production. Revenues from state enterprises primary source of revenues followed by turnover tax. Large budget expenditures on social programs, subsidies, and investments. Budget usually balanced or small surplus.