The Czech Republic is the western part of the former Czech and Slovak Federal Republic. The ancestors of the Czechs settled in today's Bohemia and Moravia region, while those of the Slovaks settled the present Slovakia as early as the 5^th century. But the Czechs lost their independence in 17^th century, and were ruled by the Austrian monarchy for the next three centuries. Following the collapse of the Austrian monarchy after the First World War, an independent country - Czechoslovakia was formed, under爓hich Czechs and Slovaks remained united in one nation-state. It was a rapidly developing industrial society with a stable democratic system, until the occupation by Nazi Germany in March 1939. After the Second World War, Czechoslovakia fell under the sphere of the former Soviet Union, with the Communist Party taking control of the state in 1948.

There were several political conflicts during the 1950s and 1960s, especially the one in 1968, i.e. the "Prague Spring", which sparked the Soviet invasion. Along with the fall of the former Soviet Union in 1989, the so-called "Velvet Revolution" took place in November that year, which led to the end of communist rule. Nonetheless, the Czech and Slovak Federal Republic separated into two independent states, namely the Czech Republic and the Slovak Republic in January 1993. But both countries continued their previous trade policies, international agreements and obligations of the former Republic. A customs union was also created between the two states to ensure free trade.

Since then, the Czech economy has undergone restructuring, and regained momentum. Growth has accelerated upon entering the 21^st century, with steady economic expansion in the last few years. The country's highly skilled labour force and well-developed industrial base have lured foreign direct investment, and in turn have helped facilitate economic development.

On 1 May 2004, the Czech Republic, together with nine other East European and Mediterranean countries¹, joined the European Union (EU) as an EU member. This has aided the country in further integrating with Western European and world economies.

The Czech Republic also became a member of the Organisation for Economic Co-operation and Development (OECD) in 1995, and was admitted to the North Atlantic Treaty Organisation (NATO) in 1999.

B. Geography and Resources

The Czech Republic is a landlocked country, which lies in the central part of Europe. It has an area of 78,866 km², bordering with Poland, Germany, Austria and Slovakia. The country mainly consists of two major geographic regions, namely Bohemia in the west which contains hills and plateaus surrounded by low mountains, and Moravia in the east which is relatively hilly.

1. Time Zone

2. Climatic Information

The country lies in a climate zone with pleasantly mild summers and winters with only moderate amounts of precipitation. The average annual temperature ranges from 5°C to 10°C. Average temperature in the summer varies between 23°C and 29°C, and average temperature in the winter is between -11°C and 0°C.

• The coldest month is January, with a mean temperature of 0.9°C. While the temperature could rise to as high as 15°C during the day, it can fall to as low as -20°C at night.
  
  
• The hottest month is August. The temperature can rise to as high as 30°C or above, although the mean temperature is around 18.5°C for the month.
  
  
• The driest months include December and February, when average monthly rainfall is below 20mm.
  
  
• The wettest period is June-August, with an average monthly rainfall of some 60mm.

Current weather conditions in the Czech Republic can be obtained from:

http://www.worldweather.org/172/m172.htm

3. Natural Resources

Around 33% of the total area in the Czech Republic is covered by forests, which are mostly coniferous. As for mineral deposits, although a variety of minerals can be found in the country, they are far from sufficient to meet domestic demand. But deposits of certain minerals like coal, building materials, glass and ceramic materials are relatively abundant.

The Czech Republic lacks energy resources like oil and natural gas, which have to be imported. Although the country has small deposits of iron ores and non-ferrous metal ores, they are not large enough to mine in an efficient manner.

C. Population, Language and Major Cities

The Czech Republic has over 10 million inhabitants, with some 95% being ethnically, Czech/Bohemian people (Czech 81.1%, Moravian 13.2%, Silesian 0.4%). Minorities include ethnic groups from Slovakia (3.1%) Romany (1.3%), Poland (0.6%), and Germany (0.5%)³.

The country is divided into 14 regions, including the capital Prague (Praha), and larger regions Středočeský kraj, Jihomoravský kraj and Moravskoslezský kraj, which have populations exceeding one million people. Other regions with populations of less than one million include Jihočeský kraj, Plzeňský kraj, Karlovarský kraj, Ústecký kraj, Liberecký kraj, Královéhradecký kraj, Pardubický kraj, Vysočina, Olomoucký kraj and Zlínský kraj.

Major Czech cities, in addition to the capital Prague, include Brno, Ostrava, Plzeň, Olomouc, Liberec, Hradec Králové, České Bud坣jovice, Ústí nad Labem and Pardubice.

• Prague, the country's capital, is the major business hub of the Czech Republic, with robust service sectors like financial services, retail, telecommunications and utilities. While more than 10% of the country's population resides there, the city's economy accounts for some 20% of the Czech GDP.
  
  
• Brno is the second largest city of the Czech Republic. Apart from light industry in relation to engineering and processing, the city boasts the first high-tech park in the country (the Czech Technology Park), which has attracted a number of foreign investors.
  
  
• Ostrava is the business and cultural centre for the northeastern Czech Republic, and is one of the most industrialised parts of the country with the highest population density. Major sectors include coal mining, metallurgy and steel processing, engineering, energy generation, oil processing and chemical industry.
  
  
• Plzeň is a heavily industrialised region with manufacturing being the major sector there. Major manufacturing industries include metalworking, metallurgy, automotive, electronics, glass and ceramics, and food processing. It also accommodates the country's first municipal industrial zone (set up in early 1990s), which has lured foreign firms to invest in manufacturing and warehouses in the region and nearby.
  
  
• Olomouc has a tradition in processing industries, and has been very successful in attracting foreign investment. Major industries there include mechanical engineering, as well as food processing, textile, automotive components and electrical engineering.
  
  
• Liberec is a highly industrialised region, with nearly 45% of the active population mainly working in industries, such as automotive parts, machinery production, electrical engineering, metals and plastics.

D. Political System and Government Administration

The Czech Republic is a state with a political system of parliamentary democracy, as well as separate legislative, executive and judicial powers. The parliament has two chambers (Chamber of Deputies and the Senate). The President is elected by the Parliament for a five-year term, and the Prime Minister is appointed by the President on the basis of parliamentary election results. While the President is also responsible for the appointment of individual ministers, it is noteworthy that the bulk of political power lies with the Prime Minter.

The Chamber of Deputies has 200 members elected for a four-year term through a proportional representation election system. The Senate is the Upper Chamber of the Parliament and comprises 81 senators, each elected for a six-year term. The election system provides for one-third of the senators to be re-elected every two years.

During general parliamentary elections, Czech citizens elect their representatives, who are usually associated with specific political parties. The major political parties in the Czech Republic include:

• Christian and Democratic Union (KDU-CSL)
• Civic Democratic Party (ODS)
• Communist Party of Bohemia and Moravia (KSCM)
• Czech Social Democratic Party (CSSD)
• Freedom Union-Democratic Union (US-DEU)