THE
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Katarina Halahijova, a Slovak citizen who currently [May 2004] lives in California, has completed a study of the home country government's economic policies as compared to the MIEPA list of policies as outlined above. The study on Slovakia is shown below. The ratings herein are based on the following rating scale:
RATING SCALE
5.0 Perfect Facilitation of Wealth Creation
4.0 Midway between Perfect and Neutral
3.0 Neutral Effect on Wealth Creation
2.0 Midway between Neutral and Obstructionist
1.0 Perfectly Obstructionist to Wealth Creation
[Rating scale copyright Mike P. McKeever, 1996. Used herein with permission]
To read a disclaimer about the analysis in this file, scroll to the bottom of the file.
EGYPT:
Comparison of Slovakia's economic policies to MIEPA criteria as prepared by native student of Slovakia, Katarina Halahijova, studying in the US in May of 2004.
RATING SUMMARY
POLICY NUMBER RAW SCORE ADJUSTED SCORE POSSIBLE PERCENTAGE
1 5.0 15.0 15.0 100%
2 5.0 15.0 15.0 100
3 2.0 6.0 15.0 40
4 5.0 15.0 15.0 100
5 4.0 12.0 15.0 80
6 4.0 12.0 15.0 80
7 4.0 12.0 15.0 80
8 4.5 13.5 15.0 90
9 4.5 13.5 15.0 90
10 4.5 13.5 15.0 90
11 4.5 13.5 15.0 90
12 4.0 8.0 10.0 80
13 5.0 10.0 10.0 100
14 4.5 9.0 10.0 90
15 4.0 8.0 10.0 80
16 4.5 9.0 10.0 90
17 2.0 4.0 10.0 40
18 4.0 8.0 10.0 80
19 4.5 9.0 10.0 90
20 4.0 8.0 10.0 80
21 4.5 9.0 10.0 90
22 5.0 10.0 10.0 100
23 4.0 8.0 10.0 80
24 3.5 7.0 10.0 70
25 3.5 7.0 10.0 70
26 2.0 4.0 10.0 40
27 4.0 8.0 10.0 80
28 4.0 8.0 10.0 80
29 3.0 3.0 5.0 60
30 3.5 3.5 5.0 70
31 2.0 2.0 5.0 40
32 2.0 2.0 5.0 40
33 4.0 4.0 5.0 80
34 2.0 2.0 5.0 40
TOTAL 130.5 284.3 375.0 75.8%
===== ====== ===== =====
INDIVIDUAL POLICIES
1. Freedom From Internal Control: 5.0
Slovak citizens are free from internal control. They
can do whatever they wish if they are not involved in
crime. Slovak people can move where they like, they
can leave country and come back, they can chose their
professions, change job. People can start business if
they fulfill by law established requirements. Slovak
government protect reputation of Slovakia as a free
country, especially after what was going on in the
past during the communism, that time Slovakia was far
from free country.
Source: personal information
2 .Freedom of speech: 5.0
Slovak constitution ensure freedom of speech for
everyone. This law pass in1989 after revolution and
change of regime from communism to capitalism and
democracy. In Slovakia you can say anything about
anybody, about president , government etc. It is a law
in Slovakia about not destroying somebody’s reputation
by saying something what is not true. But this law is
not clear and in real life not used at all. It is
practically not possible to sue somebody because of
destroyed reputation. There are certain rules about
freedom of speech in medias, for example in
advertisement you cannot use name of product of
competitors to compare. Like say Tide is better than
Ariel, in Slovakia they would say Tide is better that
a common detergent.
Source: personal information
3. Effective, fair police force: 2.0
As most of aspects of Slovak society, police force is
terrible corrupted as well. Corruption of police force
is a big problem in Slovakia. I believe that majority
of Slovak cops are dirty. Many of the are involved in
crimes, sell drugs and of course take bribes. One
example is to be pulled over while driving, in most
cases cops offer you to pay half fine, if you pay cash
right away and you don’t get your citation. In other
words, they just keep the money without issuing a
ticket. If you get arrested for minor crime and you
have enough money to pay, in lot of cases they let you
go. But not all Slovak policemen are dirty, there are
cops in Slovakia who do a good job and help keep
country safe.
Source: personal information
4. Private property: 5.0
Slovak citizens appreciate the right of private
property after period of communism in Slovakia, that
finished in 1989. In this and couple of next years
Slovak government gave families what they took from
them in 1948 and next years. Slovakia kept all the
record of private property ownership, so everybody get
back what was their if it was possible. In some cases
property didn’t exist anymore. It is not problem to
prove you own a property in Slovakia, because
institutions keeps all the records of ownership.
Source: personal information
5. Commercial banks: 4.0
Slovakia is still finishing process of privatization
of banking sector. Many foreign investors are coming
to country, helping establish stable banking system.
Three, four years ago, it was not unusual to see
Slovak bank bankrupting, leaving depositors with lost
money. Slovak government repaid these deposits only
partially. Situation improved a lot from that time.
Deposit are much safer in banks now. Banks provide
businesses and individuals with loans and have to keep
reserves in the National Banks of Slovakia.
Source: personal information
6. Communication system: 4.0
Telephones and still mainly home phones are the main
way of communication in Slovakia. There are 1,934,558
phone lines and 736,662 cellular phones in Slovakia.
However number of cellular phones is increasing every
day and I believe is currently above the figure.
Telephone system - general assessment: a modernization
and privatization program is increasing accessibility
to telephone service, reducing the waiting time for
new subscribers, and generally improving service
quality
- domestic: predominantly an analog system that is now
receiving digital equipment and is being enlarged with
fiber-optic cable, especially in the larger cities;
mobile cellular capability has been added
- international: three international exchanges (one in
Bratislava and two in Banska Bystrica) are available;
Slovakia is participating in several international
telecommunications projects that will increase the
availability of external services.
Slovakia has AM 15, FM 78, and 2 shortwave radio
stations.
Slovakia has 38 TV Stations, 6 internet service
providers and about 700,000 internet users, the number
is increasing.
Source: www.cia.gov
7. Transportation: 4.0
Slovakia is a small country only 48,845 sq km, what is
about twice of New Hampshire. On this area Slovakia
has 3668 km of railways, what is sufficient enough for
the country. Slovakia has 42,717 km of highways, 172
km of waterways - all on the Danube. The pipelines
length is: gas 6,769 km; oil 449 km, imported from
former Soviet Union. Slovakia has no sea and has only
two harbors on the Danube, in Bratislava and Komarno.
Slovakia has only two ships, one cargo ship and one
bulk ship. Slovakia has 37 airports and 1 heliport.
But airline transportation inside of Slovakia is not
very developed, mostly because people prefer train,
bus or car transportation, because is cheaper and
Slovakia is small, so distances are not too big.
Slovakia uses airlines mostly as a connection with
other countries. Slovakia has good transportation
system, only problems can be in winter if it falls too
much snow. Snow can make transportation harder to
small villages. However government always tries
improve the situation as soon possible.
Source: www.cia.gov, personal information
8. Education: 4.5
Slovakia has a great education system. There are only
very few private schools in Slovakia, and all colleges
and Universities are public. Public schools are in lot
of cases even better than private and they are free at
all levels for all Slovak citizens. Slovak children
get much better education at high schools compare to
US education system. Slovak Universities are
internationally recognized as a good quality schools
and cooperate with Universities abroad. Teachers are
highly qualified in all levels of education. Only
problem is that some schools don’t have good
equipment, because lack of financial resources.
Source: personal information
9. Social mobility: 4.5
Slovak constitution ensure equality between people. It
is illegal discriminate according to gender,
ethnicity, age, social status. Because education in
Slovakia is free, everybody has an equal chance to
receive an education, a degree or to get a special
training to get a job they desire. Slovakia gives a
chance even children from poor families to get an
education and make a good living. Companies mostly
hire employees according to education, good skills,
intelligence and knowledge of applicants. However to
have “connections” can be sometimes helpful.
Source: personal information
10. Freedom from outside control: 4.5
Slovak citizens are subject to rules of the Slovak
Constitutions. All Slovak citizens are judged
according to Slovak laws. If our citizens is arrested
in foreign country, Slovakia tries to bring them to
Slovakia to be prosecuted over there. However Slovakia
cooperates with international organizations like
INTERPOOL to look for international criminals. If a
foreign persons is arrested in Slovakia, the country
usually give them back to native countries to be
prosecuted.
Source: personal information
11. Currency: 4.5
Slovak Currency is Slovak Crown - Slovenska Koruna
(SVK). 1 USD = 33 SVK. National Bank of Slovak
Republic is a Central Bank of Slovakia and it is a
only bank that has a right to issue currency. It is
independent institutions that cooperates with
government to plan and implement fiscal and monetary
policies. Slovak Crown went through relatively high
inflation after change of regime from communism to
capitalism in 1989. However Slovak Crown has showed to
be a stable currency recently. Slovakia is preparing
for implementing EURO in Slovakia. Slovakia is
planning to change to EURO in 2008 - 2009, after
fullfiling Maastricht ‘s criteria.
Source: www.nbs.sk
12. Border control: 4.0
Slovakia just joined European Union in May 2004.
Borders between EU countries are not guarded too much,
but borders to enter EU are guarded very well.
Slovakia has boarders with Czech Republic, Austria,
Hungary, Poland and Ukraine. Borders with Ukraine
require special attention, because most of the
immigrants come from Ukraine. In most of cases our
officials catch them by the borders or they track them
down and catch them later. One of important issues is
that Slovakia as a gate to Western Europe is a
transshipment point for Southwest Asian heroin bound
for Western Europe. Our police force work hard to
track drug shipments, they cooperate with other
European countries, to track large drug shipments in
Europe to get more information about these crime
organizations.
Source: www.cia.gov. , personal information
13. Foreign currency transactions: 5.0
Only currency accepted in Slovakia by retail stores,
restaurants, hotels etc. is Slovak Crown - Slovenska
Koruna (SKK). 1 US Dollar = about 32 Slovak Crowns.
Banks and number of Currency Exchange facilities
provide exchanges between Slovak Crowns and foreign
currencies. You have to go to one of these places to
buy Slovak Crowns, they wont sell it to you in retail
stores, restaurants etc. Slovak Crown has become
relatively stable currency, it has get little stronger
recently. US Dollar dropped dramatically towards
Slovak Crown from 52 SKK for 1 USD in 2001 to 32 SKK
for 1 USD now. Slovakia is preparing for joining of
European Union this year. Eventually Slovakia will
accept EURO as the rest of EU.
Source: personal information
14. Cultural, language homogeneity: 4.5
Slovakia has a high homogeny in culture .The only
official language in Slovakia is Slovak. Slovak
belongs to the family of Slavic languages. All Slovak
citizens speak Slovak language. The largest majority
in Slovakia are Hungarians, therefore on south of the
country, where Hungarian minority is located,
Hungarian is spoken as well as an unofficial language.
Ethnic groups in Slovakia include: Slovak 85.7%,
Hungarian 10.6%, Roma 1.6% (the 1992 census figures
underreport the Gypsy/Romany community, which is about
500,000), Czech, Moravian, Silesian 1.1%, Ruthenian
and Ukrainian 0.6%, German 0.1%, Polish 0.1%, other
0.2% (1996). Religions in Slovakia include: Roman
Catholic 60.3%, atheist 9.7%, Protestant 8.4%,
Orthodox 4.1%, other 17.5%.
Source: www.cia.gov
15. Political effectiveness: 4.0
Current Slovak government of the Prime Minister
Mikulas Dzurinda is in power from May 1999. The
government did a lot of good work and work on
improvement of many areas of Slovak society. Slovakia
became a part of NATO - the North Atlantic Treaty
Organization and is preparing for entrance to EU -
European Union. Slovakia as former socialist country
has to go through lots of changes to built market
economy. It is hard process and need a lot of work,
however government made some mistakes, it is
relatively good and effective government. Slovakia is
located in geographic area with nearly no natural
disasters, only problems are floods. Therefore
government work on building sufficient and reliable
docks on rivers. This is highly efficient, what was
proved during last years huge floods in this
geographical area. Germany, Austria and Czech Republic
suffered huge damage. Slovakia had almost no damage
thanks to work of government to prepare country for
this situation.
Source: www.cia.gov, personal information
16. Institutional stability: 4.5
Slovakia has high institutional stability. President
is elected for 5 years period, government for 4 years.
The leader of the winning party become usually the
Prime Minister. Current government just started their
second term, which shows stability of Slovak
government. Justice, educational, health system,
police force are stable. Due to recent privatization
of financial institutions, banks and insurance
companies, there were changes in these sector. Also
business sector is not stable as it could be, but I
think situation is improving.
Source: www.cia.gov, personal information
17. Honest government: 2.0
As all levels of Slovak society, Slovak government is
corrupt as well. Although many representatives seek
own profit, a lot of them cares about development and
prosperity of the country. Today government is in
power from 1999 and it is the best government that
Slovakia have had since separation from the Czech
Republic in 1993. Former government of Slovakia made
terrible crimes. Many of these crimes are still
investigated, certain members of former government
were pledged guilty. A few ran away from the country.
INTERPOOL found the person behind many of crimes, Jan
Lexa, the former head of the Slovak information
service - information agency in Slovakia, in The
Republic of south Africa. Situation in honesty of
Slovak government is far from perfect, but has
improving tendency.
Source: personal information
18. Common law: 4.0
Slovak constitution guarantee equal law for all Slovak
citizens. However Slovakia has a serious problem with
corruption in all levels of society. Government
launched program called „National fight against
corruption“, but you cannot see much results. Legal
system and police force are terribly corrupted as
well. If you have money you can do in Slovakia
anything you want. Slovak court system doesn‘t have a
jury, judge solely decide about guilt or innocence. In
case of no corruption, judges are fair, they implement
equal law for everybody. But problem is that nearly
every judge is possible to corrupt. Let‘s say it, in
Slovakia you can kill a person and just pay to judge
and you are innocent.
Source: personal information
19. Central Bank: 4:5
National Bank of Slovakia is independent central bank
of Slovak Republic. This institution is independent
from Slovak government, President or Parliament.
National Bank cooperates with government in planning
and implementing monetary policies. It uses monetary
tools like reserve requests, discount rates and open
market operations. National Bank prints money
responsibly, increase of value has to occur in certain
sector of country, bank doesn’t print money on
nobody’s orders.
Source: www.nbs.sk
20. Domestic budget management: 4:0
Slovak government prepares federal budget annually.
Government always manage finances according to the
budget plan for the year. The federal income in 2003
was 235 400 000 000 Skk. The expenditures in 2003
was 291 437 250 000 Skk. The deficit in 2003 was 56
037 250 000 Skk. Budget plan for year 2004 plan income
231 957 485 000 Skk., including income from taxes (
195 238 000 000 Skk.), expenditures 310 452 485 000
Skk. That shows trhat government planned deficit
budget for 2004. Deficit will be 78 495 000 000 Skk.
Slovak federal budget is traditionally deficit.
Deficit is about 8%-10% in most years.
1 dollar is about 32 Slovak crowns (Skk).
Source: www.finance.gov.sk
21. Government debt: 4.5
Gross domestic product (GDP) in 2002 was $67.34
billion. Amount of debt of The Slovak Republic in year
of 2002 was $9.6 billion. That makes the debt of the
Slovak Republic approximately 14.26% of GDP. The
national debt of Slovakia is not too high to be a
problem for economy. Also Slovakia is currently and
during past few years receiving grants from European
Union for development of certain problematic areas of
the country as a part of preparation for joining the
EU.
Source: www.cia.gov
22. Economic statistics: 5.0
Slovak government and number of information a
statistic agencies prepare monthly and annual reports
about progress of all economic statistics, information
collected by government and private organizations are
equal. Economic statistics are regularly published in
press, radio and television. These information truly
reflect a real situation in Slovak economy.
Source: personal information
23. Protection of public health and safety: 4.0
All hospital in Slovakia are still public. Advantage
is, that everybody a free health care, as well as
dental and vision care. All employers must pay full
health insurance to all employees, in case you are
child, student , unemployed , disabled or generally
you don’t work government pays your insurance. Medical
and hospital employees, doctors, nurses are really
qualified people, with lots of knowledge and
experience. Problem is, that hospitals don’t have
certain technology and equipment to perform some
surgeries and procedures that US hospitals are able to
do. Slovakia has a system of obligatory vaccination,
to miss your appointment, without any notice is
illegal. I have never heard about a case of
tuberculosis in Slovakia, because of extensive
vaccination system, regular person goes through check
of TBC defense level in your blood and possible
revaccination 5-10 times a life. In Slovakia death
rate is 9.22 deaths/1,000 population , infant
mortality rate is 8.55 deaths/1,000 live births and
life expectancy is 74.43 years.
Source: www.cia.gov, personal information
24. High wages policies: 3.5
Situation in Slovakia is not perfect, but not worst.
Slovakia belong between countries with middle level of
income. Problem is however, that Slovakia is preparing
for entrance to European Union, both prices and
salaries are much lower, that European Union
standards. Therefore prices in Slovakia are going up
to become same as in EU, but salaries are rising in
much lower rate. In other words Slovak people are able
to buy less and less. Inflation in last year was 8,4%,
but inflation in sector of housing, rent, water and
energy prices was 17.6% and these are the basic,
necessary expenses of families. Situation is expected
to get better after Slovakia become a part of EU,
prices won’t rise so fast and salaries should increase
to level of European standards as well.
Source: makro.ekonomika.sk, personal information
25. Environmental protection: 3:5
Situation in monitoring, controlling and preventing of
negative actions of companies and individuals on
environment is getting much better in Slovakia.
Government has wide net of inspections, sanctions and
legislative in this matter. Slovakia cooperate with
many European countries among others Norway, Turkey,
Germany, Hungary, Czech Republic and with
organizations of European Union active in
environmental matters. Environment in Slovakia was
damage during socialism, so government has a lot of
work to repair damage to environment. Only problem I
see is corruption in Slovakia, there is still a
possibility to pay environmental inspectors and get
away with some damages to environment. However
government cleaned certain areas from pollution left
by former regime and they hasn’t finished yet.
Source: www.lifeenv.gov.sk, personal information
26. Strong army: 2.0
Slovakia doesn’t have model of paid army like the one
of the USA. Slovakia has a system of 9 months army
service. That means, that every healthy man at the age
of 18, or after he finish his studies, has to serve 9
months in army to attend training. In the case of war
all man are called to protect the country. There are
also professional soldiers in Slovakia, but not too
many. Anyway, Slovakia with the population of 5.5
mil., is not able to obtain strong army. There are
plans to reorganize army to paid model, but country
doesn’t have enough money for that, also army
equipment is insufficient. The best way for protection
are military contract Slovakia has with its neighbors,
as well as it is part of NATO - the North Atlantic
Treaty Organization.
Source: personal information
27. Foreign trade impact: 4.0
According to the following information, share of
international trade on GDP is about 40%.
GDP: purchasing power parity - $67.34 billion (2002
est.)
Exports: $12.9 billion f.o.b. (2002 est.)
Exports - commodities: machinery and transport
equipment 39.4%, intermediate manufactured goods
27.5%, miscellaneous manufactured goods 13%, chemicals
8% (1999)
Exports - partners: Germany 30.1%, Czech Republic
16.4%, Austria 10.7%, Italy 7.2%, Poland 5.7%, Hungary
4.6% (2002)
Imports: $15.4 billion f.o.b. (2001 est.)
Imports - commodities: machinery and transport
equipment 37.7%, intermediate manufactured goods 18%,
fuels 13%, chemicals 11%, miscellaneous manufactured
goods 9.5% (1999)
Imports - partners: Germany 24.8%, Czech Republic 16%,
Russia 13.5%, Austria 7%, Italy 6.4%, France 4% (2002)
Source: www.cia.gov
28. Protection of foreign currency earning
enterprises: 4:0
The Ministry of Economy of the Slovak Republic has a
program of help for Slovak exporters. They call it
“The state grant scheme of support of ability to
compete“. Slovak government prepared this project by
cooperation with European Union and European agreement
on coal and steel. Government support export of
certain products by giving grants to companies. Among
others government support companies exporting
electronic products, companies working on
constructions abroad, marketing companies etc.
Source: www.economy.gov.sk.
29. Management of Foreign Currency Budget: 3.0
Results for international business for year 2003
compare to year 2002:
2003 2002
change 03 vs 02
export 652,0 mil. Skk
803,0 mil. Skk + 23,2 %
import 748,0 mil. Skk
826,6 mil. Skk + 10,5 %
balance - 96,0 mil. Skk
- 23,6 mil. Skk + 72,4 mil. Skk
Slovak currency is Slovak crown (Skk) - 1 dollar is
about 32 Slovak crowns.
Traditional negative balance of international trade
(exception year 1994) reached in year 2003 value -
23.6 mil. Skk, that was the best balance of
international trade since 1995, the improvement from
last year was 72.4 mil. Skk. This result was
accomplished because of increase in international
business and increase in export. External debt of
Slovakia was $9.6 billion in 2002.
Source: www.economy.gov.sk, www.cia.org
30. Layers of collective action: 3.5
Slovakia has a system of parliamentary democracy. It
has 1 capital city Bratislava and 8 regions.
Government has been working on changing legislature
and layering collective actions. President was elected
by direct, popular vote for a five-year term; election
last held 29 May 1999 (next to be held NA May/June
2004), this was first direct election of president,
before elected by parliament. Slovakia has also the
National Council elections and the leader of the
majority party or the leader of a majority coalition
is usually appointed prime minister by the president .
Government put more competencies on local governments
and divided country to more regions and counties few
years ago. Situation in choosing people to directing
position in schools, government companies, hospitals
etc. is not clear. It is moving from government hands
to local organizations, but central government still
has a main word.
Source: www.cia.gov, personal information
31. Pro business climate: 2.0
To have a successful business in Slovakia is not easy.
Economic and political conditions are changing, for
example, the change of government after election can
cause your company bankrupt. When government of Prime
minister Vladimir Meciar came to power, many foreign
companies left Slovak market, what caused bankruptcy
of many Slovak companies, f. e. suppliers of foreign
companies. Banking system still mainly owned by state
is unstable, it is not uncommon to see a bank
bankrupt, citizens and businesses are losing all money
in bankrupting bank. Rate of unemployment in Slovakia
is high, about 15%-20%, but in some regions 60% people
are not employed. If people doesn’t have money, they
cannot effort to buy products or services, what is
making it hard to open a business. Although a pro
business climate is not very good, situation is
improving.
Source: personal information
32. Government enterprises: 2.0
Slovakia is still in the process of transformation
from central directed economy to market economy. Until
year 1989 everything in Slovakia was own by
government. In 1989 system in Slovakia changed and
Slovakia prepared a privatization process. During the
first wave of large-scale privatization over 670
state-owned enterprises worth US$ 5.3 billion were
privatized.
During the second wave, over 880 companies worth SKK
103.0 bn (GBP 1.8 bn) have been privatized through
direct sales, some tenders and NPF bonds. The private
sector now generates over 80% of GDP. Problem of this
process was that former government was very corrupt
and process of privatization is full of still
investigated crimes made by former government of the
prime minister Vladimir Meciar. Current government is
better in this matter , but corruption is still a big
problem in Slovakia.
In September 1999 an amendment to privatization law
was passed, abolishing the status of "strategic
companies" and allowing their future privatization The
Slovak cabinet will decide about the extent of
companies' privatization considered as natural
monopolies while the law will not set the state's
share in these companies.
However, there are exceptions: Slovak Electric (power
generation, SE), three energy distribution companies,
Slovak Gas (SPP), and Transpetrol (oil transit) in
which the state will keep a majority share 51 percent.
The Government will also sell up to 90% of the Slovak
Savings Bank, 85% of VUB bank, 92% of IRB bank and up
to 85% of Slovak Insurance company.
As you can see main banks and insurance companies are
still mainly owned by state. However many foreign
investors became majority shareholders of some Slovak
banks and insurance companies, this process is still
in progress.
Source: personal information, www.britishembassy.sk
33. International security agreements: 4.0
Slovakia is one of the countries invited to enter the
North Atlantic Treaty Organization
( NATO), which purpose is to safeguard the freedom and
security of all its members by political and military
means.
In 2003 the Slovak citizens decided in the
referendum to enter the NATO. So during last year and
this year the representatives of the Slovak government
and mainly of the Ministry of defence of the Slovak
Republic attended several meetings with
representatives of the NATO to prepare conditions for
entrance of Slovakia to the alliance. During the
accession process, the Slovak Republic and its armed
forces will make complex preparations for entry into
the political and military structures of the North
Atlantic Treaty Organization. The Slovak Republic will
realize its national program of Preparation for Entry
into the North Atlantic Treaty Organization (PRENAME)
in accordance with the Membership Action Plan (MAP),
which was approved at the Washington Summit of the
North Atlantic Treaty Organization
The Slovak army is not strong at all. Slovakia has
population of 5.5 million, it is too small country to
be able to obtain a strong army. NATO is working with
Slovakia to improve the condition of the Slovak army.
Slovakia also cooperates with other counties of middle
Europe region under the CENCOOP agreements.
Source: www.mod.gov.sk
34. Protection of domestic enterprises from government
mandated costs: 2.0
The Slovak government imposes a complicated system of
direct and indirect taxes on enterprises. The income
tax rate for enterprises is 25%. Businesses active in
agriculture by more than 50% of all activities pay
income tax rate 15%. All employers are required by
law to pay employees unemployment insurance, and full
health insurance coverage.
To make it easier to for small businesses, government
made a program called Support for small ad middle
sized enterprises. Part of it is possibility to buy or
rent a government property for a price lower than a
market price or enterprises can get grant of maximum
100 000 EUR. Slovakia is preparing for entrance to the
European Union, as a part of that the European Union
helped to establish The national program Phare. This
program provides grants for enterprises active in
tourism and industry. The official purpose of this
project is “To increase the competitiveness of the
Slovak tourism sector and strengthen the
administrative capacities of the central and regional
structures to manage and implement EU Structural Funds
type of projects” and “ To increase the value added
content of Slovak industry through enhanced product
offerings and process technologies through a grant
scheme procedure, which will also have the effect of
increasing the capacity of the central an regional
structures to manage future EU Structural and Cohesion
Funds.
Source: www.economy.gov.sk, www.sk-dane.sk,
DISCLAIMER
All the information and conclusions in each country analysis are solely the responsibility of the individual student and have not been verified, corrected, checked for copyright infringement or evaluated in any way by MIEPA or Mike P. McKeever. You are solely responsible for the results of any use you make of the information and conclusions in these studies. Use them at your own risk as interesting supplemental information only instead of seasoned judgements about the policy factors contained herein. Each student has granted permission for his or her work to be displayed here under his or her own name or wishes to remain anonymous and have either created a pen name or used no name at all; if you wish to contact them for any reason, forward your request to MIEPA and the student will be notified of your interest.To learn more about other countries, click to other files here:
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