Analysis: Czech Republic

The Czech Republic is an often overlooked nation that shares a border with Germany to the west, Poland to the northeast, Slovakia to the east, and Austria to the south. The history of the Czech Republic has been marred by repression and internal strife since the formation of the nation. What is now known as the Czech Republic was once known as the communist Czechoslovakia. When the communist regime fell out of power in 1989, the socioeconomic reforms that occurred thereafter caused a disproportionate amount of subsidized industry between the two regions of the nation. Consequently, the Czechoslovakian nation separated into the two nations of the Czech Republic and Slovakia. Shortly thereafter, the Czech Republic drafted a new constitution for the nation that was effective January 1st of 1993. The new government allowed provisions to quickly privatize nationalized businesses and create a national stock market, which was a major step forward for the country in terms of freedom and business opportunities. (Colombia University, P., 2009, 1-2) Following the institution of the Czech Republic’s constitution in 1993, the nation became a parliamentary democracy. The parliament system of democracy found in the Czech Republic is similar to the system found in that of Great Britain. The new constitution created an executive, legislative, and judiciary branch. In the executive branch, there are three sections of power; the president, the prime minister, and the cabinet. The president is considered to be the Head of State but the prime minister holds most of the executive power. The legislative branch is comprised of a bicameral parliament that is similar to the United States’ legislative setup. The two houses are called the Chamber of Deputies and the Senate. The houses have two-hundred and eighty-one members respectively. Once again similar to the United States and other democratic nations, the legislative branch has a certain number of members for each of the thirteen districts of the nation and the capital city of Prague. (Martin, P., 2009, 1) In accordance with the executive and legislative branch, the nation also developed a sturdy judicial branch. The system is comprised of mainly constitutional courts and a Supreme Court which interpret the laws and constitution of the Czech Republic. (U.S. Department of State, 2009) Throughout the nation’s communist era, freedoms were scare and opportunities for business and growth were limited and controlled. Though the Czech Republic has been through years of repression throughout history, internal and external, the nation has emerged with a working representative democracy and a thriving economy. With the new freedoms and economic growth made possible by the nation’s political change, the market is very attractive for business and investments. The strong legislative branch allows for laws to be passed that protect all parties from abuse. Furthermore, the new government of the Czech Republic allows for a system of checks and balances on laws that affect the business community as well as other laws. In compliance with the laws and mandates passed and approved by the legislative and executive branch, the nation’s judicial branch is very strong and can solve disputes between corporations, consumers, and investors with ease. Though, according to Loužek (2008), the judiciary system has disproportionate power to and is setting the judiciary branch up to be autonomous with no checks or balances. If the transformation does take hold, then the courts will give rise to corporatism and impinge on the protections granted to consumers and certain businesses. (Loužek, M., 2008) However, the level at which the author speaks of has not yet been reached in its entirety and the nation is currently stable. The Czech Republic has proven a worthy international business market since the birth of the nation’s democracy. According to the U. S. Department of State (2009), the Czech Republic trades with Germany, Slovakia, Poland, France, Austria, Italy, the Netherlands, Russia, U.K., China, and United States. The nation exports 145.9 billion dollars worth of goods; mostly motor vehicles, machinery, iron, steel, chemicals, raw materials, and consumer goods. Despite the conspiracy theories about the judiciary system, valid or invalid, the nation has continued to thrive and expand. (U.S. Department of State, 2009) The exports made by the Czech Republic seem to be mainly capital goods; goods that are used to make other goods. Perhaps investing into the Czech market of industrially made capital goods would prove profitable. Regardless of what part of the Czech market one plans to invest into, the Czech Republic has conclusively proved to be a reliable and growing market.

References
Columbia University, P. (2009). Czech Republic. Columbia Electronic Encyclopedia, 6th Edition, 1-2. Retrieved from History Reference Center database.
Loužek, M. (2008). Are the Courts Taking Over Czech Democracy?. New Presence: The Prague Journal of Central European Affairs, 11(3), 5. Retrieved from Academic Search Complete database.
Martin, P. (2009). Czech Republic. Our World: Czech Republic, 1-6. Retrieved from History Reference Center database.
U.S. Department of State. (2009, July). Background Note: Czech Republic. Retrieved January 25, 2010, from U.S. Department of State.

References: Columbia University, P. (2009). Czech Republic. Columbia Electronic Encyclopedia, 6th Edition, 1-2. Retrieved from History Reference Center database. Loužek, M. (2008). Are the Courts Taking Over Czech Democracy?. New Presence: The Prague Journal of Central European Affairs, 11(3), 5. Retrieved from Academic Search Complete database. Martin, P. (2009). Czech Republic. Our World: Czech Republic, 1-6. Retrieved from History Reference Center database. U.S. Department of State. (2009, July). Background Note: Czech Republic. Retrieved January 25, 2010, from U.S. Department of State.