This thesis analyses the socio-economic and political transformation processes of Slovakia since its separation from Czechoslovakia. The main question to be answered is how successful Prime Minister Vladimír Mečiar’s policies were in attracting FDI into Slovakia.
After the Velvet Revolution in 1989, Czechoslovakia started to initiate fundamental democratic measures concerning the public administration in the country. Two interconnected reforms took place in 1990: decentralization and the civil service reform. In 1992 a new government was voted into office under the leadership of Prime Minister Vladimír Mečiar from the HZDS party.
On 1 January 1993 Slovakia became independent by non-violent means from the Czech Republic, with Bratislava as its capital. For a country, which did not have economic wealth as high as the Czech Republic and an increasing unemployment rate, the total change of their whole economy meant that much time was spent on the question of how to finance the state.
In terms of economic changes, the Prime Minister wanted to create a strong entrepreneurial Slovakian class that would be able to control the economy. But his privatization policies led to financial difficulties for the Slovakian state, its economy and its people. Although there was co-operation with Russia, the unemployment rate in Slovakia remained at 16.2% percent at the end of 1998. Constant discriminations in Slovakia and the fact that Mečiar excluded the opposition parties completely from parliamentary control organs, the Slovakian Secret Service (SIS), the media and the process of privatization, caused international protests against Mečiar and his regime. This caused the EU to warn Slovakia that it would no longer receive assistance, if the government continued to misuse its power.
Table of Contents
- Abstract
- 1. Preface
- 2. Slovakia Under Prime Minister Vladimír Mečiar from 1992 – 1998
- 2.1. Historical Overview of Slovakia
- 2.2. The Economic Situation and the Social Consequences for Slovakia After its Separation from Czechoslovakia in 1993
- 2.3. Aims
- 2.4. Results of Mečiar's Policies and Reforms
- 2.5. Consequences for Slovakia
- 2.5.1. Economic situation
- 2.5.2. Intercultural problems
- 2.5.3. International Relations
- 2.6. European Union (EU) – Reservations
- 2.7. The Fall of Mečiar and Preliminary EU-Slovakia Accession Talks
- 3. Foreign Direct Investments (FDI) in Eastern Europe
- 3.1. General Facts on Foreign Investments
- 3.2. Reasons for Investments
- 3.3. Motives for Austrian Enterprises to Make FDI in the CEE
- 3.4. FDI by Economic Sector
- 3.5. Countries Attracting Major Foreign Investments
- 3.5.1. Foreign direct investments in Hungary
- 3.5.2. Foreign direct investments in Slovenia
- 3.5.3. Foreign direct investments in the Czech Republic
- 3.5.4. Foreign direct investments in Slovakia
- 4. FDI in Slovakia from 1993 Up to the Start of the Post Mečiar Era
- 4.1. Macroeconomic Data
- 4.1.1. GDP Growth
- 4.1.2. Annual inflation rate
- 4.1.3. Unemployment rate
- 4.1.4. Foreign exchange reserves
- 4.1.4.1. Foreign exchange reserves of the National Bank
- 4.1.4.2. Total foreign exchange reserves
- 4.1.5. National budget balance
- 4.1.6. Foreign trade balance
- 4.1.6.1. Foreign trade partners
- 4.1.7. Foreign direct investment
- 4.1.8. Summary of macroeconomic data
- 4.2. Volume of Foreign Investment
- 4.3. Distribution of FDI by Countries
- 4.3.1. FDI distribution in 1996
- 4.3.2. FDI distribution in 1997
- 4.3.3. FDI distribution in 1998
- 4.3.4. FDI distribution in 1999
- 4.3.5. FDI distribution in 2000
- 4.3.6. FDI by countries from 1996 - 2000 in SKK million
- 4.3.7. Summary of Distribution of FDI by country from 1996 to 2000
- 4.4. Distribution of FDI by Sectors
- 4.4.1. FDI distributed by sector in 1998
- 4.4.2. FDI distributed by sector in 1999
- 4.4.3. FDI distributed by sector in 2000
- 4.4.4. Summary distribution of FDI by sector
- 4.5. Distribution of FDI by Regions
- 4.5.1. FDI distributed by region in 1999
- 4.5.2. FDI distributed by region in 2000
- 4.5.3. FDI distributed by regions from 1999 - 2000 in SKK million
- 4.5.4. FDI distributed by regions in percent to the total from 1999 - 2000
- 4.5.5. Summary of FDI by regions
- 4.6. Problems Faced by Foreign Investors
- 4.7. Summary
- 4.1. Macroeconomic Data
Objectives and Key Themes
This thesis aims to analyze the socio-economic transformation of Slovakia after its independence from Czechoslovakia, focusing specifically on the success of Vladimír Mečiar's policies in attracting foreign direct investment (FDI).
- Socio-economic transformation of Slovakia post-independence.
- Analysis of Vladimír Mečiar's economic policies.
- Impact of Mečiar's policies on FDI attraction.
- Macroeconomic indicators of Slovakia during the Mečiar era.
- Comparison of Slovakia's FDI with other Central and Eastern European countries.
Chapter Summaries
2. Slovakia Under Prime Minister Vladimír Mečiar from 1992 – 1998: This chapter provides a historical overview of Slovakia, examining its economic situation and social consequences following its separation from Czechoslovakia in 1993. It delves into Mečiar's economic policies, including privatization efforts, and assesses their impact on the Slovakian economy and its people. The chapter also analyzes the resulting economic conditions, intercultural challenges, and international relations during Mečiar's tenure, culminating in the EU's concerns and warnings regarding his regime's actions. The chapter ultimately sets the stage for analyzing the success (or lack thereof) of Mečiar's policies in attracting FDI.
3. Foreign Direct Investments (FDI) in Eastern Europe: This chapter offers a general overview of foreign direct investment in Eastern Europe, exploring the reasons behind the surge in FDI after the fall of communism. It highlights the role of decreasing political risks, the EU accession process, and the comparatively lower labor costs in the region as key drivers of investment. The chapter focuses on the significant role Austria played in this FDI influx, particularly in the CEE. Specific attention is given to FDI trends in several CEE countries, including Hungary, Slovenia, the Czech Republic, and Slovakia, providing a comparative context for understanding the investment landscape in the region and setting the stage for a detailed analysis of FDI in Slovakia.
4. FDI in Slovakia from 1993 Up to the Start of the Post Mečiar Era: This chapter presents a comprehensive analysis of FDI in Slovakia from 1993 until the end of Mečiar's premiership. It meticulously examines macroeconomic data, including GDP growth, inflation, unemployment, foreign exchange reserves, budget balance, and foreign trade, providing a detailed economic picture of the country during this period. The chapter further breaks down the volume and distribution of FDI by country and sector, analyzing trends and patterns in investment flows. Finally, it discusses challenges encountered by foreign investors operating in Slovakia during this era, offering insights into the complex interplay between political climate, macroeconomic conditions, and investment decisions. It provides a thorough assessment of the impact of Mečiar's policies on the country's ability to attract and retain foreign investment.
Keywords
Slovakia, socio-economic transformation, Vladimír Mečiar, foreign direct investment (FDI), privatization, macroeconomic indicators, Central and Eastern Europe (CEE), EU accession, post-communist transition, economic policy.
Frequently Asked Questions about "Slovakia Under Prime Minister Vladimír Mečiar and Foreign Direct Investment"
What is the main topic of this document?
This document is a comprehensive language preview of a thesis analyzing the socio-economic transformation of Slovakia after its independence from Czechoslovakia, focusing specifically on the impact of Vladimír Mečiar's policies on attracting foreign direct investment (FDI).
What are the key themes explored in the thesis?
Key themes include Slovakia's socio-economic transformation post-independence, an analysis of Vladimír Mečiar's economic policies, the impact of these policies on FDI attraction, Slovakia's macroeconomic indicators during the Mečiar era, and a comparison of Slovakia's FDI with other Central and Eastern European countries.
What time period does the thesis cover?
The thesis primarily covers the period of Vladimír Mečiar's premiership in Slovakia (1992-1998) and the subsequent years up to the start of the post-Mečiar era, focusing on the impact of this period on FDI.
What aspects of Vladimír Mečiar's policies are examined?
The thesis examines Mečiar's economic policies, including privatization efforts, and assesses their impact on the Slovakian economy, its people, and its ability to attract foreign investment. The analysis includes the consequences of his policies on the economic situation, intercultural problems, and international relations.
How does the thesis compare Slovakia's FDI to other countries?
The thesis compares Slovakia's FDI with other Central and Eastern European countries (CEE) such as Hungary, Slovenia, and the Czech Republic to provide a comparative context for understanding investment trends in the region.
What macroeconomic data is analyzed in the thesis?
The thesis analyzes various macroeconomic indicators for Slovakia, including GDP growth, inflation rates, unemployment rates, foreign exchange reserves, national budget balance, and foreign trade balance. This data is used to paint a comprehensive picture of Slovakia's economic performance during the Mečiar era.
How is FDI in Slovakia broken down in the thesis?
The FDI in Slovakia is broken down by country of origin, investing sector, and region within Slovakia, providing a detailed view of investment distribution patterns during the studied period.
What challenges faced by foreign investors are discussed?
The thesis discusses problems encountered by foreign investors in Slovakia during the Mečiar era, providing insights into the relationship between the political climate, macroeconomic conditions, and investment decisions.
What is the overall goal of this research?
The overall goal is to analyze the success (or lack thereof) of Vladimír Mečiar's policies in attracting foreign direct investment (FDI) to Slovakia, within the broader context of the country's socio-economic transformation after independence.
What are some key words associated with this thesis?
Key words include: Slovakia, socio-economic transformation, Vladimír Mečiar, foreign direct investment (FDI), privatization, macroeconomic indicators, Central and Eastern Europe (CEE), EU accession, post-communist transition, economic policy.
- Arbeit zitieren
- Thomas Kovacs (Autor:in), 2006, Socio-Economic Transformation of Slovakia since its Independence, München, GRIN Verlag, https://www.grin.com/document/115909
