What could bring Slovakia back down (Marketplace)



Radovan Ďurana z INESS rozprával dňa 17.11.
2008 pre Marketplace radio, ktoré patrí do siete American Public Media,
o reformách na Slovensku, možných dopadoch svetovej finančnej krízy na
Slovensko a o sektoroch, ktoré sú z pohľadu krízy
najzraniteľnejšie.



Slovakia is riding high with a fast-growing economy, a
reputation for manufacturing and its adoption of the Euro. But its job market
could be in danger if demand for car production drops. Stephen Beard has more.

Steve Chiotakis: The Velvet Revolution isn’t some rock band
out of Europe. It’s more like a band of citizens who, in 1989, overthrew their
government. That’s what Czechs and Slovakians are celebrating today. But as
Stephen Beard reports from Bratislava, the worries today are about the economy,
not about who’s in charge.

Stephen Beard: Slovakia has every reason to celebrate.
Living standards are rising fast. Last year, the economy grew at the quickest
rate of any developed country.

And within weeks, Slovakia takes a crucial step towards closer European
integration:

As this official song proclaims, Slovakia will adopt the Euro.

Reforms in the late 90’s revolutionized the economy. Lower taxes and more
flexible labor laws attracted foreign investors. Once it was weighed down with
heavy, inefficient industries.

Now, Slovakia is a manufacturing superstar. Volkswagen, Peugeot and KIA all
set up state of the art factories here. They build more than half million cars
a year. That makes Slovakia per capita the biggest car maker in the world. But
that clearly could make this country vulnerable in the current crisis.

Analyst Radovan Durana:

If there is a serious downturn,
demand for Slovak production will decrease and may lead to loss of jobs.

And there’s a another worry about the financial crisis — a fear that it
could sour public support for economic reform.

People in this open air-market blame American-style capitalism for the
crisis. This man says Americans are the guilty ones. Who else causes so much
trouble? While this man America’s wild capitalism shouldn’t be allowed.

Peter Kicina is head of the Slovakian Business Association. He says that
Slovakia’s current left-leaning government could exploit this sentiment to curb
the free market.

Peter Kicina: This could be serious threat for Slovakia in
the future. We have now a government that could decrease the level of free
market in Slovakia.

Already the government has tightened the labour code and made it tougher to
fire workers. In spite of its phenomenal transformation, Slovakia may have
peaked as a manufacturing paragon.

In Bratislava, this is Stephen Beard for Marketplace.

Marketplace,
American Public Media, November 17, 2008

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