Czech foreign trade in the economic transition

Abstract

This article describes the almost ten-years long history of Czech foreign trade in the broader context of economic transition. Dividing the history into two different parts (1991 - 1996 and since 1997 beyond) the paper tries to evaluate not only the results in the period mentioned, but also to assess the roots and causes, both external and internal. Besides shortcommings there were a number of positive achievments, expecially in the first period (rapid reorientation, stable terms of trade etc.) which, however, turned sour especially due to neglecting huge and rising trade balance deficits. The situation exploded by the spring time of 1997 and the measures taken (austrety "packages") have appeared only partially succesful so far. The world economy with its regional and financial turbulences and shakes of 1997/1999 made the situation even worse. Despite all negative factors the Czech trade balance improved partially in the period 1997 - 1999.