Class 5 Gerloch 1996

The Break-up of Czechoslovakia: An In-depth Economic Analysis

Founding of Czechoslovakia

• Historical Context: Established post-World War I from the Austro-Hungarian Empire's disintegration.

• Borders: Finalized in 1919 at the Versailles Treaty Conference, including Subcarpathian Ruthenia.

• Territory Composition: Total area of 140,394 km², with:

  • Bohemia: 52,064 km²

  • Moravia: 22,315 km²

  • Silesia: 4,423 km²

  • Slovakia: 48,936 km²

  • Subcarpathian Ruthenia: 12,656 km²

• Population: 13.6 million (1921); demographics include:

  • 65.5% Czech or Slovak

  • 23.4% German

  • 5.7% Hungarian

  • Others

• Political Structure: Dominated by Czech nationals; Slovaks aimed to maintain cultural identity.

Economic Conditions

• Economic Disparities: Czech Lands were more developed (70-75% of pre-war industrial potential) compared to Slovakia (<20%).

• Slovak Industry Challenges: Smaller market, outdated production units, and high transportation tariffs impeded growth.

Industrial Development

• Czechoslovak Economy: Driven by Czech Lands producing 92% of output; Slovakia faced significant industrial challenges.

Economic Cycles

• International Trade Participation: Heavy reliance on exports; global economic fluctuations impacted stability.

• 1921-23 Crisis: Slovakia's industries (steel & mining) were particularly hit, contrasting with stable growth in Czech Lands.

• Recovery and Recession: Recovery from 1924-25 stalled by a recession in 1926; slow growth continued until 1929 for Slovakia.

Continued Economic Struggles

• 1930s Economic Crisis: Major downturn from 1929-37 affected Czechoslovakia, with Slovakia facing prolonged challenges.

• Industry Resilience: Post-1933 recovery saw Slovak heavy industry recover more dynamically than in Czech Lands due to new infrastructure.

Pre-WWII Changes

• Munich Agreement (1938): Loss of 30% territory and industrial capacity; led to social issues including a refugee crisis.

• Population Changes: Annexation caused the loss of over 1/3 of population, significantly impacting industrial and agricultural outputs.