Class 5 Mervart 1996

The Break-up of Czechoslovakia: Economic Analysis

1. Division of Federal Property

1.1 Common Property Delineation

• Quick, peaceful dissolution required after agreement.

• Historical Context: Nationalization and collectivization under communism led to most private property becoming state-owned.

• Shift to federal structure in 1968 increased ownership rights for Czech and Slovak Republics.

• Privatization efforts improved transparency, though inter-republic organizational challenges arose.

1.2 Legal Framework for Property Division

• Constitutional acts defined the framework for property division as of 31 December 1992.

• Key Aspects: Division included tangible/intangible assets, financial assets, liabilities, and ownership claims using territorial location and 2:1 population ratio as principles.

1.3 Property Division Examples

• Military: Assets divided 2:1, CSK 400 billion valued; personnel relocated by citizenship choice.

• State Railways: Division agreement from December 1992 based on property categories.

• Air Traffic Control: Followed similar territorial and ratio principles.

2. Monetary Agreement

2.1 Context and Negotiations

• Both governments aimed to maintain monetary stability post-split.

• Delayed currency separation to avoid economic shocks and preserve credibility.

• October 1992's Monetary Agreement coordinated economic policies despite Slovakia's independent policy making tensions.