Background: After World War II Czechoslovakia fell within the Soviet sphere of influence. In 1968 an invasion by Warsaw Pact troops ended the efforts of the country's leaders to liberalize party rule and create 'socialism with a human face.' Anti-Soviet demonstrations the following year ushered in a period of harsh repression. With the collapse of Soviet authority in 1989 Czechoslovakia regained its freedom through a peaceful 'Velvet Revolution.' On 1 January 1993 the country underwent a 'velvet divorce' into its two national components the Czech Republic and Slovakia. Now a member of NATO the Czech Republic has moved toward integration in world markets a development that poses both opportunities and risks.
Terrain: Bohemia in the west consists of rolling plains hills and plateaus surrounded by low mountains; Moravia in the east consists of very hilly country
Geography Note: landlocked; strategically located astride some of oldest and most significant land routes in Europe; Moravian Gate is a traditional military corridor between the North European Plain and the Danube in central Europe
Environment Current issues: air and water pollution in areas of northwest Bohemia and in northern Moravia around Ostrava present health risks; acid rain damaging forests
Independence: 1 January 1993 (Czechoslovakia split into the Czech and Slovak Republics)
National holiday: National Liberation Day 8 May; Founding of the Republic 28 October
Constitution: ratified 16 December 1992; effective 1 January 1993
Legal system: civil law system based on Austro-Hungarian codes; has not accepted compulsory ICJ jurisdiction; legal code modified to bring it in line with Organization on Security and Cooperation in Europe (OSCE) obligations and to expunge Marxist-Leninist legal theory
Legislative branch: bicameral Parliament or Parlament consists of the Senate or Senat (81 seats; members are elected by popular vote to serve staggered two- four- and six-year terms) and the Chamber of Deputies or Poslanecka Snemovna (200 seats; members are elected by popular vote to serve four-year terms)
Judicial branch: Supreme Court chairman and deputy chairmen are appointed by the president for life; Constitutional Court chairman and deputy chairmen are appointed by the president for life
Political parties and leaders: Assembly for the Republic or SPR-RSC [Miroslav SLADEK chairman]; Christian Democratic Union-Czechoslovak People's Party or KDU-CSL [Jan KASAL chairman]; Civic Democratic Alliance or ODA [Daniel KROUPA chairman]; Civic Democratic Party or ODS [Vaclav KLAUS chairman]; Communist Party of Bohemia and Moravia or KSCM [Miroslav GREBENICEK chairman]; Czech Social Democrats or CSSD [Milos ZEMAN chairman]; Democratic Union or DEU [Ratibor MAJZLIK chairman]; Freedom Union or US [Karel KUEHUL acting chairman]; Quad Coalition [Richard FALBR chairman] (includes KDU-CSL US ODA DEU)
International organization participation: Australia Group BIS CCC CE CEI CERN EAPC EBRD ECE EU (applicant) FAO IAEA IBRD ICAO ICFTU ICRM IDA IEA (observer) IFC IFRCS ILO IMF IMO Inmarsat Intelsat Interpol IOC IOM ISO ITU NATO NEA NSG OAS (observer) OECD OPCW OSCE PCA PFP UN UNCTAD UNESCO UNIDO UNMIK UNMOP UNMOT UNOMIG UPU WEU (associate) WFTU WHO WIPO WMO WToO WTrO ZC
Flag description: two equal horizontal bands of white (top) and red with a blue isosceles triangle based on the hoist side (almost identical to the flag of the former Czechoslovakia)
Economy overview: Political and financial crises in 1997 shattered the Czech Republic's image as one of the most stable and prosperous of post-Communist states. Delays in enterprise restructuring and failure to develop a well-functioning capital market played major roles in Czech economic troubles which culminated in a currency crisis in May. The currency was forced out of its fluctuation band as investors worried that the current account deficit which reached nearly 8% of GDP in 1996 would become unsustainable. After expending $3 billion in vain to support the currency the central bank let it float. The growing current account imbalance reflected a surge in domestic demand and poor export performance as wage increases outpaced productivity. The government was forced to introduce two austerity packages later in the spring which cut government spending by 2.5% of GDP. Growth dropped to 0.3% in 1997 -2.3% in 1998 and -0.5% in 1999. The basic transition problem continues to be too much direct and indirect government influence on the privatized economy. The government established a restructuring agency in 1999 and launched a revitalization program - to spur the sale of firms to foreign companies. Key priorities include accelerating legislative convergence with EU norms restructuring enterprises and privatizing banks and utilities. The economy fueled by increased export growth and investment is expected to recover in 2000.
Exports: $26.9 billion (f.o.b. 1999) Commodities: machinery and transport equipment 41% other manufactured goods 40% chemicals 8% raw materials and fuel 7% (1998) Partners: Germany 42% Slovakia 8% Austria 6% Poland 6% France 4% (1999)
Imports: $29 billion (f.o.b. 1999) Commodities: machinery and transport equipment 39% other manufactured goods 21% chemicals 12% raw materials and fuels 10% food 5% (1998) Partners: Germany 34% Slovakia 6% Russia 6% Austria 6% France 5% (1999)
Disputes international: Liechtenstein claims restitution for 1600 km² of land in the Czech Republic confiscated from its royal family in 1918; the Czech Republic insists that restitution does not go back before February 1948 when the communists seized power; individual Sudeten German claims for restitution of property confiscated in connection with their expulsion after World War II; agreement with Slovakia signed 24 November 1998 resolves issues of redistribution of former Czechoslovak federal land - approval by both parliaments is expected in 2000
Illicit drugs: major transshipment point for Southwest Asian heroin and minor transit point for Latin American cocaine to Western Europe; domestic consumption - especially of locally produced synthetic drugs - on the rise