ak Economy). This took place because the economy that rose out of the communist era in Slovakia was based on industrial production, particularly on weapons and military equipment (Slovakia.Org, Slovak Economy). There was a great difference of opinions between the Slovaks and Czechs about the nature and pace of economic reform in Czechoslovakia (Slovakia.Org, 20th Century). The disagreements delayed the reform process and also the acceptance of a new constitution (Slovakia.Org, 20th Century). It became obvious that the current form of government could meet the demands of both republics. As a result, Slovakia declared its sovereignty in July 1992, in other words, its laws took higher priority than those of the federal government (Slovakia.Org, 20th Century). During November the federal parliament chose to officially break up the country, and on January 1 1993, the Slovak and Czech Republic replaced the Czechoslovakia as two independent countries (Abizadeh, p. 171). Recent Growth levels of the Slovak EconomyThe economic problems that began in the early 1990s still plagued Slovakia after it claimed independence in 1993 (Abizadeh, p. 172). After its first year of independence Slovakias economy was in poor shape with a negative GDP growth of 3.7%, and inflation rate of 25.1%, and an increasing unemployment rate of 14.4% (National Bank of Slovakia). Overall, gross domestic product in Slovak Republic decreased a substantial 23.7% during the years 1990 to 1993. Through a slow reform process, however, positive macro-economic results have been accomplished over the recent years (Slovakia.Org, Slovak Economy). GDP growth has been positive since 1993 and recorded an annual growth of 4.4% in 1998 (The World Bank). Slovakias 1998 GDP per capita of 3,832 USD was very competitive with other central European countries (Embassy of the Slovak Republic). The budget deficit has been brought under control, and at the beginning of 1999, the infla...
