The economy

Czechia is considered one of the richest countries of the Central Europe most industrially developed and with the least share of an agriculture in the total internal product. Among a post of the communistic states Czechias now takes the second place on a standard of living after Slovenia.

For stabilization of development of economy the management of Czechia has accepted a number of the measures directed on a raising of industrial production, to increase in inflow of investments and increase in export. So, in April, 1999 the government accepts the industrial plan on stabilization of a situation approximately at ten vital enterprises of the country. In the list of the companies having an opportunity to take part in the program, have been included: Aliachem, CKD Praha, Spolana, Skoda Plzen, Tatra, Vitkovice, Zetor and ZPS Zlin.

The mode of the maximal preference for increase in investments into economy of Czechia is created. The investors directing to development of the industry more than 10 million USD, are released from taxes for the term of 10 years, receive grants at a rate of 100 USD for each created workplace, have the right of duty-free import of the equipment. Special privileges are stipulated for the companies, gathering to make long-term investments. As a result in territory of republic work 47 thousand foreign companies.

In the general investments into economy of Czechia the share of the countries of the organization of economic cooperation and development (ОEСD) makes 97%, the countries — members of EU — 68% and the countries of group " big seven « — 57%. Most of all investments it has been directed to branches of transport and communication (24%), manufactures of the transport equipment (16%), consumer goods (13%), construction (9%). During retos the parameter of total financial accumulation to GNP in Czechia has reached 24% while in the EU countries this size makes 20%.

The industry is the most developed and important sector in economy of Czechia, on its share 40% of the national income are necessary. The mechanical engineering, metal working, the electrotechnical industry, the chemical industry, and also textile and clothing industry are the most developed industries of Czechia.

Stably working enterprises are: of the food-processing industry (partners Danone and Nestle), electrotechnical (firm ETA, partners Bosh and Moulinex), paint and varnish (partners Union carbide and BASF), household chemical goods and washing-up liquids (partners Henkel and Procter and Gamble), aviation (partners McDonnall Douglas), automobile (manufacture of buses — firm Karosa, partner Renault), Skoda (it is bought by «Volkswagen»).

The Czech industry is equipped by the modern equipment and the qualified labour. The bank system of Czechia is based on the principles accepted in economically developed countries of the world. The Czech national bank (CNB) does not depend on instructions of the government that has affected increase of efficiency of all monetary policy in the country.

The share of an agriculture is equal GNP of Czechia 4,5%, 5,5% of the population are borrowed. The agriculture of Czechia is the developed branch with a high level of automation and mechanization, completely providing basic needs of the country in production of agriculture and animal industries and export of products to the EU countries (37%), Slovakia (23%) and the CIS (14%).

In an agriculture value of public sector which continues to exist as cooperative societies of ground proprietors is kept.

Actions on liberalizations of foreign trade and attraction of serious foreign investments have essentially improved equation of the foreign trade turnover and structure of export. Its greater part is taken by the countries entering into the European union (63%, from them of 43% — to Germany). Improvement of structure of export was expressed, first of all, in increase in a share of machine-technical production.

There was essentially new clause — export of licenses and construction abroad industrial targets on their basis, for example: in Russia — manufacture of cars under the license of «Skoda», in Kazakhstan — manufacture of explosives for industrial and mine works, in Georgia — pharmaceutical preparations, in Ukraine — trams and trolley buses, in China — turbines for thermal power stations.