Transformation, integration and inequality: the case of the czech republic

The paper concentrates on the criticism of the Czech neo-liberal transformation strategy resulting from its implementation. It brings about an analysis of major factors leading to adverse effects on the restructuring of former big state-owned enterprises, on the structure of Czech exports (due to its stress on the "traditional" industrial comparative advantages and especially cheap labor), and on the development of earnings distribution from the point of view of a "meritocratic ideal". This analysis of earnings distribution and its development during the 1990s shows an important role plaid by factors that have lead to creating suitable conditions for predatory and speculative patterns of behavior. This analysis serves as a basis for supporting an alternative modernization strategy of transformation of former Soviet-type economies and societies.