Slovakia's transition history long paralleled that of the Czech Republic, but the former adopted bold new reforms early in tis decade. This paper is a comparative treatment of fiscal decentralization since 1993 and more recent reforms of public administration, the two efforts representing the foundation of the New System. Czech experience is invoked simply to provide an appropriate benchmark for the evaluation of Slovakia's New System introduced in 2004, including the 19% "flat tax" and other striking measures in local public finance. The second focus of the paper is on the macro-economic impact of the New System. It is too early to perceive what its long-term effects will be, so this treatment will be more tentative. But because one would like to know whether Slovakia's return to an economic growth path is actually a result of the New System and whether this recent growth will persist, those issues are given some consideration.
(c) 2006 Centre for Research into Post-Communist Economies This is a preprint of an article submitted for consideration in the Post-Communist Economies (c) 2006 Centre for the Research into Post-Communist Economies; Post-Communist Economies is available online at: www.tandfonline.com