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The Taste of Czech Bread.

The most successful and prospering country of the former so-called camp of socialism is, to my mind, Czech Republic. J got interested in Czech experience in the development of transition period economic reforms for two reasons. First, a rapid improvement of economic situation took place there, and conseguently, the life standard impetously rose, too, secondly, there appeared a possibility to try given experience on our economy. You know, the same geographical, social-economical conditions as in Czech Rep. are characteristic of Belarus. Our republics have to import raw materials and fuel. And the biggest thing perhaps is that the Czech and Belarussians are the owners of the same Slav mentality.

And That Is Only the Beginning.

...Mildly and relatively guietty has the main stage of privatization in Czech R. completed. People could clearly feel the positive influence of the deep economic changes.

The overage salary in the republic today is about 350 dollars. The unemployment problem has been completely solved. A friend of mine, Czech businessman, once complained,"I pay my shop assistants five hundred dollars but they still are a little lazy to work. I have to put up with it; otherwise where can I find any?"Food and other goods are in plenty in the shops. By the way, most of the goods are Czech. Chicken legs from overseas as well as the American dollar is not in great respect there. The Crech choose their own crown and keep savings in their own currency. No wonder, 3 years ago 1 dollar was egual to 32 Crech crowns. Today dollar has noticeably depreciated; they give only 26 Czech crowns for it.

Wares from Czechia are especially respected in the international trade market: Bohemian glass, knitwear for children, well-known Becherovka and Pilsener, garnet jewelry, milk and meat prodncts.

Over the last years the number of tourists visiting Czechia has increased. Germans and French, Italians and Russians walk the streets of Prague open- mouthed. Prague is considered to be one of the most beautiful cities in the world. Everything there breathes grandeur and peace fulness. In fact, the Czech themselves are full with jou and feeling of self- espect. They are proud of their successes and of wise president Havel. They talk with respect about the father of privatization V.Clauss.

It is an unsolvable problem for a CIS scientist to publish his booklet, while Czechia successfully solves global scientific problems. For instance, last year that country launched a new satellite 'Marion' from Russian spacedrome in Plesetsk. And the sponsors were-who do you think?-private company CSA(Czech Airlines) and oil company 'Aral'. How could small Czechia break loose out of 'the greatcoat of socialism' within that short term? What is the phenomenon of this successful present-day country? Let's try and figure it out.

Let There Be Foreign Investors!

The ice started: foreign capital has safely stepped into Czechia. such things as political and economical stability in the country, good results of privatization, balanced budget, low levelled inflation, shilled and gualified specialists have been conducive to that.

Within five years (1990-1995) the capacity of foreign investments made 154 billion crowns, i.e. s.end USD. The main Czech partners are Netherlands, Switzerland, Germany, France, USA and Austria.

The most gladly invested are such good-prospected fields as food industry, chemical industry, mechanical engineering, trade and servise, transport and communication, automobile industry and construction. Czechia has granted its foreign investors the so-called status of the greatest conduciveness. For example, there is a separate sector controlling safety ot all stock deals...

With the help of conpons a great number of enterprises with little property were privatized, their stock being in deed unfit for trade in the open market. At that time there were about six million shareholders, at least 30 percent of which would want to sell their shares right after the privatization had finished. That would come to be one of the reasons for one more securities market to arise in Czech Republic, the so-called PM-System. The apecific teature of the given off-stock market is that securities are paid within a feu seconds when dealing with them. Experts call such operations 'continual trade'. PM-System serves peopl,e as the means of safe share dealing. Jt is subordinated to the Securities Centre and works for Czech Statistics Administration.

Jn order to secure safety for clients when trading in PM-System the deal is preceded by checking whether the buyer has really transmitted the money on to the special account. However, in principle dealing within the System is simple, cheap and available to those who have, let's say, only one share.

Privatization in Czechia was conducted directly by the government which subordinated such means as Securities Centre and off-stock market of PM-System.

Lately there are more and more appeals for weakening centralization in capital market. The latter is blamed for being not transparent enough, that is for invisible transmitting securittes, their prices being unknown. Disregarding difficulties, however, Czech capital market is improving.

Last year an authoritative metropolitan magazine 'In the Heart of Europe' ascertained comforting facts: fall in share prices rising. Bank, power engineering, extracting and chemical industries, pharmacy and telecommunication investments are not of serious risk even to cautious capital investors.

P.S. Do you remember Boulgakov's character grinning with ignorance, "Fancy Newton's Ginomial!" We also could ignore the nearest neighbour's experience and talk endlessly about the distinctive way of development of our country. But can't it be worth borrowing something from the life of Sveik the jaunty soldier's fellow-countrymen? After all we all are Slav fellow-souls.And even our bread tastes the same.

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