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7/1/1993 - One Year Later: A stronger Slovakia? by Chandler R. Rosenberger

NOT FOR PUBLICATION CRR WITHOUTWRITER SCONSENT INSTITUTEOFCURRENTWORLDAFFAIRS One Year Later AStronger Slovakia Chandler Rosenberger Peter Bird Martin ICWA J Wsst Wheelock Hanover N H 03755 USA JamOrholova opened first private coffee houses Bratislavaafter revolution Srentedastate owned buildingintlOld Town quickly established breed restaurant Drinks placed promptly fresh tablecloths polite staff The stone patio hosed night Ashtrays emptied If snack cheese toast wasonthemenu itwasalsointhekitchen Jam opportunity secure business restitution first communist govornmont Czechoslovakia passed allowing families reclaim property seized Communist Party The building Jam rented turned belond family Slovak Jews resettled Eland Thinkin could business bureaucrats family therrelves property money spinner Jam contacted family encourad reclaim building A artist grandson building original owners Jam restaurant Jam turned charm showed Englishman works husband artist lance photographer Praooue She about second recently opened museums But avail The Englishman shaken another unscheduled rneetir Astrangerhadapproachedhimonthestreetandstruckup conversation about property Yes stranr Mrs Orholova CHANDLER ROSENBERGERis John O Crane Memorial Fellow Institute writing aboutthecountriesoftheformerHabsburgEmpire especiallySlovakiaandtheCzechLands Since Institute Current World Affairs Crane Rogers Foundation rovided fellowships enable outstanding young adults outside United States write about international areas issues Endowed bythelateCharlesR Crane theInstituteisalsosupportedbycontributionsfromlike mindedindividualsand foundations remarkable things buildir But conmcons necessary property state hands IftEnglish family reallyrantedt tthepropertyhack thesitar asmallsum millionSlov crowns wouldsmoottheway TI Englishman apologized Jam He business vhere stranrs intimate details affairs demanded bribes gtthindone Hedidn tthinkhisfamilyasinterestedin propertyafter Since Jam cannot claim ovnership property herself faces eviction officials The restitution administered Slovaia first communist government given chance But hands regime turned catalyst corruption Meciaronthe2une 1992electionspromisinga stronger 1ovia But Slovaia eaker federation On July government finally International Monetary Fund devalued country currency Slovak percent Privatization groun decline Slovak productionh bottomed Ironically Meciar schemes Slovakia strenir overnmenthas eakened country SlovakPMVladimirMeciar That everyone country Black Mercedes tinted windows cruise slowly Venturska Street center sometimesstoppintoallowburlymensittin thesidewalkcstoclimbin Slovakshavewokenupayear aftervotirforastrorrSlovakiatodiscover bureaucracy affiliated mafias stror Czected The weakness Meciar 1ovakiahenmost clearly nesotiations people promised Czechs Cz politicians Meciar attempted blackmail threat dissolvir federation ouWittd every A Meciar rishtwir rival Czech Premier Vaclav Klaus called Slovak bluff aweed smaller poorerrepublicoitownway Sincethen tCzechshavehammeredthrough division former Czechoslovakia dizzyir speed ferocity thattheyhave leftMeciarhinirinthein Meciar still complains today Czechs violated terms split takir overt Czechoslovak dumpir common currency weeks rather months after republics separated Jan The Czechs ruthlesshandlirofMeciarhas himholdina ofrievances suchasthat Slovak republic should compensat villas transferred Poland after World War Two while Prague rescued rapid reform protein While Klaushasworriedabouthowto createnewwealth Meciarhworriedabout divide wealth WhenMetier attempted strike stumbled A veiled threat offCzech oilsuppliesfromUkraine pipedtouh 1ovakiawas dismissedwith contempt The Czechs completed pipeline Bavaria decade little reason worry about Slovakia threats meantime Meciar announced June government would raise import dutiesby20percenttoprotectSlovproducers butthemove isunlikelytohurt Czechs anymore division already Trade between countries hasfallenby0percentsinceJanuy Slovakia simportt iffsmayhurtCzech farmers briefly ultimately serve Pra urnir twards Western standards market On question borders Meciar temporarily succeeded trippir Czechs their On July Germany introduced stricter asylum would border ttmselves whether EEuropean political economic refue Unlike under German border guards return latte country through which passed without official emrnination their circumstances The Czech Republic therefore pressed similar areernent Slovaks The Czechs would their borders Bavaria Saxony relatively politicians convince Germany economic refugees stopped attCzech Slovak border Czech president Vaclav Havel Slovak president Michal Kovac agreed My press their parliaments border agreement July The agreement while allowing Czechs Slovaks cross border without difficulty would subject citizens ofrdcountries rigors standard border The danger Slovakia clear perhaps unavoidable Refugees likely across republic borders droves Ukrainians fleeing hyperinflation across their homeland narrov common border SlovaiaandBosnians crossingHungaryontirwaytoughSloviaandt Czech Lan6s ermany Th Ukrainian reluctant tighten their borler morstablSlo hihtlyssatransitroutfortheirgoods I hmiar displeased Meeiar rhetorical asaults Magy unlikely compliant arranng vould Yugoslavrfuges their Caught Meciar struck stron words In radio broadcast July again accused Czechs breaking split agreement guaranteeing strong border would appear between republics He accused republics presidents colluding behind If presidents countries continue negotiate putting pressure government realize government collectivebodyand Ipersonallyamnotgoirtoivesmysupport But again clear Meciar position words actions Czech Interior Minister Jan Rural confirmed shortly before Germany effect ministry would train soldiers defend Czech Slovak border The Czechs their agreement Germany lIdfortmoment cannovpointtoSlovak notCzech intransi nceasthe rasonfor their unilateralstrengtningofthnvborder TNrmar aerrnt influential Bratisla Prag already begun press Meciar A parliament patronage If opponents abroad outsmarted events domestic scene swept The politician promised revive Slovia industry concede factories cannot support itself While Meciar tcandidate promised secure unemployment benefits Meciar prime minster under pressure International Monetary Fund hagreed slash social spending exchan merely million Privatization arped beyondrecognitionbyMeciar sambitionto shapethenemarketeconomy The disintegration economic political order Slovakia roots theveryrtoricMeciaru sedtov inthe1992lctions Mciarpromisdinhi campaign strengthen 1ovak producers federal government His words struck chord among Slovaks always insisted Prague haanobligationtoallowtlstattomantliNutrializationof 1ovaia In Slovakia sreformedCommunists Meciaramorthem insisted thatPrague buildmorefactoriesinthlar lyruralrepublic Ratlrthanpush srdormd Communists Prague merely democratic socialism Slovaks campaigned share socialist spendirtg Much their eventual reset Hardline Communists reasserted their control country after Soviet invasion purgir reformers buyin Slovaks The Communist regime Slovakia statusasarepublicithinafederalconstitution Itbuiltmassivearmsfactoriesin Martin Central 1ovakia spent billions crowns public projects futuristie bri6g slashed through Bratifla pituresqu ButmidnightcamequicklyforSlovakia sFaustianbargain Thefederation sfirst Communist govermnent sought break Comecon Soviet trading signir agreements instead Suddenly Slovakia Stalinist factories shoed theiraand inefficiency The sharp decline odution aross federation after reforms introduced 19911 continued badly eleetion Wtle maraturing eetor inlNing agriculture txtil machinery other industries produced million Slovak crowns worth goods total productionhafallento278 37millionin1992 adropof 6percent On campaign trail Meciar offered updated version Slow grievances Justasthenationhaddemandedmorestateindustrializationin1968 itoughtnow state soften restructuring factories asked built The federal privatization schemes annihilating Slovak in6ustry Meciargued Heinsisted eeriered young dimdnts rprsnting Slovia Pray Theelectoralpay offfortrtoricofvictimizationwas predictably stunning Meciar movement June elections control Slovak parliament seats He quickly formed informal alliare withe formerCommunists Partyofthe Democratic Left hohadon2 seats Slovak National Party whose complaints earned seats Had federation survived Meciar forces could easily teamed leanin parties Czech Lands reform UnfortunatelyforSlovakia theriht winpartiesintheCzechRepublicsa onlytooclearly WhenMeciarpresentedhislistofdemands forexample federation coupon privatization scheme modified leave experiencedment incontrolofitsfactories theCzechssimplycutthe Slovaks As federation dissolved before their Slovakia victorious parties found themselves obligated their public privat promises Bratislava scant resources Meciar informal coalition aeement 1ovak National Party votes exchange president Sloak National Party LNovit Cernak Ministry Economy But allied though deman6ing Pragu strongr Slovakia Wo parties quickly descended squalid fight patrona hdominated 1ovakia firstsixrnonofindependence The independent state first Privatization Minister Lubomir Dolgos quickly scrapped coupon privatization scheme Under Czechs 1ovaks hadbeenable purchasevouchers instate industrywhichtheyerethenallomed either mutual convert shares industry their choice The three advantas First allowed rapid privatization factory which could directly investor could converted joint stock company Second privatiation process relatiwly transpa since investor could easily ahold shares iustry bribing public officials Finally control factories exrird mararrnt suddenly answerable investment compauies would demand evidence usefulness their experience preferably profits The coupon scheme alloed Slovak minister privatization government Ivan Miklos unload companies ithout corruption At conference Investment Independent Slovakia February Dolgos explained scrapped Sellin8 factories directly forei domestic investors allov speedy entrance market coupon scheme required complicated administration But Dolos II insrsredtI directses reqred approof entre sitgornt Gint gornt beenenorbypes Io eerient directswere diffict compe inres In first eight Dolgos dsell 58compes Those foreiinsrs ofnfoelsapped inawebofcocobetweennt gornt TforeiprsinsinoofSloia joint foirrestiscsdfromvin comply byrswigoodcoco MimsyofEconomy comply wNchreinss Battles patronage fradnented Slovak overmnem quickly differeence policy could The Slovak National Party withdrew Meciar governnnt March arguir Meciar givenitsleadersenoughsayinthecoalition Reducedto7votssinparliamsnt Meciar tried firstto8overninthe minority makirdealsithpartiesonan basis legislation through By Jur hower Meciar Slol National Party return gornrnt TI perilous economy offer unattractive Meciar personal popularity fallen percent party wanted dance Meciar coupled offer series public threats corruption that1been going highest Cernak entually agreed return gornnnt admittir reluctant forced The parties pushed stronger Slovakia alliance again uneasy balance threats patrona likely weaken country A parlizment protectionism Both parties remain committed common protection Slovak producers But pride faith micro manamsnt economy forced adopt combination measures promise doirusiness inSlovakiamore bureaucratic Since first meetings Meciar government February Intarnational Monetary Fund insistad independent Slovakia mither currency reserves inherent industrial strer Slovak crownatthesamslevelofehar roughlyB0crownstothedollar thatthe federation rnainn The IMF would Slovakia money privately government devalued currency preferably percent Slovak Minister Finan Julius Toth rfused TI IMF 1ovak iustrialstewerefaultyfederalnumbers Isaid whichdidnotrevealthe country stretch lehard currency reserws admittedly three delay transfers currency abroad would Slovak crown At Slovak government committed protectin Slovak producers What could better protecting Slovak producers critics asked devaluation In addition ensurin IMF devaluation would autontatically foreign goods domestic market expensive Slovak At would Slovak exports cheaper Whenpresented criticisms Slovak National Bank governor Marian Tkac would wallet bills Ukraine increasingly worthless currency coupon The Slovak government obligation would Slovaks useless crown Instead gornmnt announced Jur imported consurr goods would ubjetd toa20prentriinimport tariffs By theeof June however government agreed which goods would affected tariffs And July announced 1ovak crown would indeed devalued percent Suddenly S1ovak visitir Prague everythin I0 percent expensive Czech goods available expensive thanks combination import effect devaluation But which goods affected tariffs which devaluation alone That parliarnent Don expect clear definitive answer Bullying backfires Bamboozled Czechs faced erodin coalition Meciar resorted bullyin tarots press Slovakia first Communist university But actions attracted hostile reaction abroad bullyin backfired divided coalition party Two months after appointment Me minister education Matus Kucera announced government would closir Trnava University The university established government Catholic altrmtiv humanities departments Slovakia other major universities motofwhichwredominatedbyMarxistNemics Kurahimselfhataught Mrxithitory atBratila Commnius unimty Three after Slovakia became independent Meciar overnment forced editors state owned highly critical newspaper resign The attracted attention international jourmlists cover independence celebrations Bratislava Although fladant dismissal eeditors merely series attempts muzzl independent voices By Meciar already cancelled licence independent television station replaced board state television fundin cultural journals staffed former dissidents Both attack Trnava Universit tarnished Slovakia abroad republic first foreign minister Milan Knazko quickly realized As parliamentarian Knazko voted against closure Trnava Anred other signs Knazko independence Meciar removed forei minister atthturnofthyar But Knazko reven At second annual confess Meciar political party Movement Democratic Slovakia Kmzko challend Meciar leadership party Whenhe failed unseat Meciar Knazko delivered stinin speech which accused Meciar inflictir political supression severity Slovakia since Stalinist 1950s I would speak about liquidation Krazko If someone wanted design series steps would insure Slovakia asruined abroad could better Mr Meciarhdora Meciar authoritarianism Knazko party mittraforce stabilityinSlo F urope In Meciar strongman tactics little strewn weaken Kmzko resied takin seven Meciar deputies parliamenttoanewpartyandleavirMeciarithonly66of150 deputies And theISlovak press tohomMeciaroedreatthanksfor theirsupportdurirthe elections turnedonhiminafury Waiting wings former Commnnists With Meciar coalition shaky party disintegrating former Communist Party 1ovakia Party Democratic Left playin patientaitinrne The Communists power natural allies With 1ovak parliament deputies sirle block besides Meciar movement Butnon 1ovakia other three parliamentary parties Slovaks Nationalists Christiu Democrats party Hungian minority Eguyteles willorkwiththem Could Communists Mociar himself7 Some members Meciar party former Communists But Communists careful neither confrontational therefore charge destructive opposition When Meciarhas offeredthemmembershipofacoalition theformer Communistshave consciously price Office Control The office files which state industries diverted funds political campai Meciar always genuinely eager avoid charge corruption cannot afford election deals exposed Instead former Communists waitin economic implosion thatwhichgrippedLithuaniaintheaftermathofindependence tomakethemlook compared towthfollowed democratic revolutions This probably tactic since percent 1ovaks blame their current economic troubles policies government rather preceding forty years ofCommunist In meantime former Communists trying resent themselves world modern socialist party They desperate Socialist International At party conference March party president threatened resign party endorse Slovakia admission NATO There unfortunately little modern about former Communist party Members still adress another suruc 1ovak comrade II The party economic program endorses market economy insists large example establishing Yugoslav style workers collectives municipally owned industries The problem accepting these concessions events since During coffee break party conference delegate running another party programinhan Thissathatvestarforcapitalism hecried Wecan Meciar stand Slovaks voted strong 1ovakia republic level ovrnmen would demand concsssions Prague Instsad itself independent state former factory rranagers ideas fewer scruples While social services health crisis after crisis there example insulin Slovakia shortly after independence deputies iovak National Party Meciar Movemsnt Democratic drove efficient privatization program through rinder special interests The battles patrona within overnmen little moment ended Cernak Slowk National Party agreed serve again Meciar government exhar premier economy And Meciar removed Dolgos Ministry Privatization party reportedly urger pressure olderMeciar loFalistsinindustrywhowereanredbyDolgos onambitionsto buildapoerbase intheeconomyartheparty Meciarchosehismost loyal Ivan Lena replace Dolos ensuring privatization suits interests broughthim But there reason believe aeement Like centralized economy meant replace Meciar coalition clumsy alliance special interests privilege Just government could calculate provide every service population demanded overnment secrets economic interests privileged supporters balance Meciar style gornmntdepends Slovakpoliticiansattemptto reinin thepremierin orderto allow PresidentMichalKovactoshoehim Kovac means smith enforciropen rulesbyhichcompaniescompete ratheronrnanaravas array allianes information threats Even Meciar ndary memory these cards straight forever But Slovakia veakness meant Slovaks The offered services former ovner Jana Orholova thousands tohave benefittedfromaneco nomyinhichparty stateandeconomy cloth Take example Peter Kajsky Accordir files formerCzechoslovaksecretservice KajskyusedcontactsintheKBtopurchase mercury thought ingredient construction nuclear weapons former Soviet Union Kajsky allegedly planned earniw purchase contacts Meciar party monopoly production women clothir When federal authorities caught Kajsky deals Anna Nagyova Meciar personal secretary allegedly warned disguise transactions When talkir business associates Kajsky referred hirelf advisor Prime Minister pomosnik premijera Russian expression means premier Meciar report Kajsky business associate rather friend But Kajsky nonetheless imprtant Meciar business Another source former federal gover nment Kajsky helped Meciar Movement Democratic Slovakia In state where rulir party contacts arran business deals knovn smugglers Jana Orholova vorld stand chance Their someday swain negotiatin division fever fever privileges industrialists brought Meciar tlrnsels apart pursuit Erystp ireperent Slovakia takes toward deeper economic decline little nearer Chandler Rosenberer Received Hanover August