Poland, Czech Republic, Slovakia, and Hungary

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Poland, Czech Republic, Slovakia, and Hungary
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Background

• Created by Treaty of Versailles at end of WWI
• Czechoslovakia carved out of what had been the
  Austro-Hungarian Empire
  
• Czechoslovakia created by sticking together land
  of two ethnic groups
  
• Czechs and Slovaks
• Split into Czech Republic and Slovakia January 1,
  1993

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• Poland created from land lost by Russia during
  WWI
  
• along with Estonia, Latvia, Lithuania, and
  Finland
  
• Poland had been ruled by various countries for
  hundreds of years

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Treaty of Versailles
Finland
Estonia
Latvia
Lithuania
Poland
Czechoslovakia
Hungary
Kingdom of Serbs, Croats and Slovenes
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Before Socialism

• Essentially capitalist before WWII
• Hungary had a brief spell during which Communist
  Party ruled
  
• Czechoslovakia an advanced and industrialized
  economy comparable to Austria

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• Poland more agricultural
• poorest of the three
• Organized along Soviet lines after WWII
• Fell way behind during socialist period

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The Legacy of Socialism (1990)
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Different From Soviet Union

• Socialism imposed from outside rather than the
  result of an internal movement
  
• Experienced socialism for a shorter time
• memory of market forces much stronger
• Much more developed when socialism began
• Small, resource poor
• could not be self-sufficient
• thus trade aversion not as strong

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• Much more homogeneous
• ethnically, culturally, religiously
• Poland and Hungary never implemented the
  centrally planned economy as completely as did
  the Soviet Union
  
• especially during the 1980s
• Czechoslovakia one of the most rigid Stalinist
  countries, on the other hand

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Transition Performance

• All suffered immediate and dramatic collapse
• Poland had quickest recovery and sustained
  growth
  
• per capita GDP now 40 above 1990 level

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• Czech recovery initially strong but falters in
  sixth year
  
• Czech Republic only about 10 above 1990 level in
  2002
  
• Slovakias collapse much more severe but recovery
  more sustained
  
• about 10 above 1990 level
• Hungarys recovery slow until 1997
• up almost 20 from 1990 level

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