Sectoral structure of Slovak industry: A widening of the backwardness or a chance for the future

Abstract

A main goal of my paper is to give a perspective of a future position of the Slovak industry in the coming information-age society. Disadvantageous sectoral structure is a main problem but there is also a chance for a better future development in the human potential (knowledge as well as cheap labour), established infrastructure and other developmental possibilities. In the paper I deal some theoretical (global world-economy, long waves of the world economy, product life cycles) as well as experiential (new international division of labour, Slovak cultural preconditions, experiences of similar newly industrialized countries...) preconditions inevitable for the optimal (sectoral) structure of Slovakian economy in a coming information age.

Full text

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SECTORAL STRUCTURE OF SLOVAK INDUSTRY: A WIDENING OF THE
BACKWARDNESS OR A CHANCE FOR THE FUTURE
38th Congress of the European Regional Science Association
Europe Quo Vadis? - Regional Questions at the Turn of the Century
Karol Kasala
Department of Regional Geography, Landscape Protection and Landscape Planning, Faculty of
Natural Sciences, Comenius University, Bratislava, Slovakia
E-mail: kasala@fns.uniba.sk
A main goal of my paper is to give a perspective of a future position of the Slovak industry in the
coming information-age society. Disadvantageous sectoral structure is a main problem but there
is also a chance for the better future development in the human potential (knowledge as well as
cheap labour), established infrastructure and other developmental possibilities. In the paper I deal
some theoretical (global world-economy, long waves of the world economy, product life cycles)
as well as experiential (new international division of labour, Slovak cultural preconditions,
experiences of similar newly industrialized countries...) preconditions inevitable for the optimal
(sectoral) structure of Slovakian economy in a coming information age.
SECTORAL STRUCTURE OF SLOVAK INDUSTRY: A WIDENING OF THE
BACKWARDNESS OR A CHANCE FOR THE FUTURE

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Introduction
This article deals with possibilities of transformed regional geography to understand
perspectives of Slovak industry in contexts of both globalized world-economy and future
information society. Transformed (or new) regional geography is a rapidly changing discipline in
last two decades. Originally idiographic (describing) discipline is subject to challenge to exactize.
As a result transformed traditional regional geography as well as originated new (transformed,
reconstructed) regional geography. For the brief view on this topic see for example works
(Entrikin, Brunn 1989, Gilbert 1988, Hart 1982, Johnston, Hauer, Hoekveld 1990, Kasala 1996a
and others). Research problems and objects of study of regional geography borrowed other
disciplines - among others regional science. However, field of study, approach and methods both
of them are different.
Regional science is profiled as mostly technocratic discipline. Object of its study is society as
it is in the case of regional geography, too. Regional geography has but wider range of view.
Analytic character of regional science could be compared with more synthetic character of
regional geography. Our contemporary world is very sophisticated and growingly accelerated and
interrelated. Shifts from analytical methods towards syntheses, contextual methods and
qualitative methods are unquestionable. There is also an opportunity for regional science to
borrow experiences of social sciences (and regional geography) to be less technocratic, analytic,
quantitative and "pure rational" in the sense of contemporary rationalism embodied in prevailing
paradigm (Enlightment’s belief in our unlimited abilities to know, to understand and to change the
world.
Changing character of our dynamic and interrelated world is an opportunity also for myself as
regional geographer. An understanding of the world, its structure, relations and dynamism is an
inevitable precondition for an understading certain region. An understanding certain region is an
inevitable precondition for searching its problems, planning it and proposing its developmental
perspectives. Thus my goal in this article is not to give complete information about sectoral
structure of Slovak industry but to see the sectoral structure in contexts of some theoretical
conceptions, experiences of similar economies and perspectives in the future age of information
society.

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Theoretical backgrounds
Economy of Slovak Republic (and other postcommunist countries) is often called as
transitional economy. Transition from centrally planned economy towards market economy
brings many problems and has many specific features and expressions. Privatization,
restructuralization, banking and finance sector establishment, development of new-type
institutions, social structures and relations creation, development of small businesses,
technological development, removing of ecological consequences of heavy economy, new-type
qualifications and re-qualifications... Many problems are principially different from those in
established capitalist economies and many are specific for Slovak Republic. From points of view
of Slovak disadvantageous sectoral structure is inevitable to start with theories of both product
and world-economy development.
Long waves of the world-economy
Economy of the world (or recently interconnected world-economy) has fundamentally cyclical
character. Very known are Marxist interpretations (historical materialism), business cycles,
Schumpeter’s clusters of innovations as well as Kondratieff’s long waves of economic
development. The last theory is in geography and other social sciences very popular in last two
decades.
Cycles of the world-economy are conditioned predominantely by clusters of innovations
(Schumpeter’s contribution to the theory). The first industrial revolution began in England at the
end of 18. century and was accompanied by textiles, shipbuilding and coal and iron industries.
These sectors may be considered at the beginning of 19. century as "high-technology industries"
(HTI’s). Every time of the economic history had its leading industries (that is its own "HTI’s") and
its leading spaces - states or areas (see later discussed Wallerstein’s world-system analysis). Mass
production of certain products typical for certain time (or long wave of the world-economy)
results into price decline and overproduction. Penetration of the world market by these "old
products" (see theories of products’ life cycles) results into culmination of efforts to search new
products. Phases of world-economy declines and crises are thus replaced by searching new
technologies and innovations. Crises of the world-economy are thus substituted by cycles of
successfull finding of new fundamental innovations and their clusters. The development has a

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character of periodical cycles - long waves of the world-economy. Author of the long-waves
theory, Russian economist Kondratieff and his followers (Mandel 1980 and others) have
identified four long waves of the world-economy and Peter Hall has joined the fifth one (Hall
1985). P. Hall characterizes present fourth long wave (1948-2000) as follows:
Key innovations: transistor, computer, computer-based information technologies;
Key industries: electronics, computers, communications, space industry, production
services;
Organization of manufacturing: mixture of large "fordist" and small companies (on the
subcontract basis), transnational corporations;
Work: bipolar (that is: lack of middle class);
Geography: suburbanization, de-urbanization, new industrial regions;
International context: American hegemony, Japan challenge, growth of newly
industrialized countries, new international division of labour;
Historical context: cold war, space race, "global village", mass consumption;
Role of the state: welfare state, warfare state, organized research and development.
The fifth long wave of the world-economy arises by my opinion in the second half of the
1990’s and it can be identified with information society. Wider societal changes are expressed in
(or more probably are conditioned by) fundamental economic changes. Industrial economy is
dependent on abundance of capital, postindustrial economy depends on information. Crucial
sectors thus are those "information-based" which are aimed at production, processing and
distribution of information - computers (and their parts and applications including software
industry), telecommunications and telematics. The last-named industry is at the present times
(and for the information-type economy and society) the most important. Advances and structural
changes are thus conditioned above all by the improvements of information technologies,
primarily means of distribution and transfer of information - telecommunication satellites
(transmission of telephone talks and TV and radio broacasting), digital and mobile phones, global
computer nets (internet), digital comprimed television (and resulting both wider choice of
programmes and their specialization) and so on. There are many important social changes - see
works of John Naisbitt (Naisbitt 1982, Naisbitt, Aburdene 1992). Naisbitt’s megatrends (social,
cultural, economic shifts as well as changes of awareness, attitudes and the whole superparadigm
of our civilization), Toffler’s third wave (Toffler 1981), Bell’s postindustrial society (Bell 1973)

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and other theories analyse social and cultural changes. For us are important, but space shortage is
an imperative for me to concentrate to "pure economy". Multiple choice, free access to
information (and resulting less restricted chances for an individual) and other social changes are
immediately connected with economic changes.
"Global restructuralization" of the fourth- and fifth-wave world-economy resulted also into
spatial re-arrangements. Continuous decline of the American economy in 1960’s-1980’s was in
1990’s stopped and turned into one-decade ongoing growth. A reverse trend is typical for present
Japan and Europe has prevailing problems, too. The Asian newly industrialized countries (NIC’s)
seem to be winners. The case of NIC’s development is thus analyzed later.
Product (and profit) life cycles
Cyclical character of changes is typical also for products. Raymond Vernon (Vernon 1966) is
author of product life-cycle theory. Every product (and in a wide sense every sector of industry)
passes through stages in its life and changes its spatial arrangement, corporate concentration,
employment and skills, and so on. An American geographer Ann Markusen transforms the theory
into "profit cycles". Her Marxist conception gives five profit cycles (Markusen 1985); each of
them has its own geography:
1. Zero profit - concentration;
2. Superprofit - agglomeration;
3. Normal profit - dispersion;
4. Normal plus (or normal minus profit) - relocation;
5. Negative profit - abandonment.
The nature of Vernon’s theory may be included in its four original life cycles:
1. Innovation stage with important position of new product design and
commercionalization. There are many small and innovative firms producing small series
of products. Firms with qualified and well paid workers are localized in several original
nuclei which have an advantage of creative environment and market changes
information.
2. Penetration stage with market penetration of new products and mass production, at
most new jobs. Growing prices of both land and labour and environment degradation
are decisive forces to search new locations on the perifery of original centres.
3. Market saturation in the conditions of growing competition leading to cost reducing,

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profit oligopolizing, output restriction, employment lowering, market division
agreements. Spatial decentralization accelerate, not only at interregional, but also at
international level.
4. Rationalization with strong competitive pressures at product prices, rationalization,
employment lowering and bankruptcies. Ongoing corporate concentration creates large
transnational corporations with tendencies to spatial recentralization to several
(frequently foreign) locations.
The most problematic industries seems to be those connected with first industrial revolution.
In this sense is important to separate high technology and low technology (and perhaps middle
technology) industries. Low technology industries (LTI’s) are those of first industrial revolution -
textiles, coal, steel and shipbuilding. They are produced in large corporations, in several locations
which operate frequently in Third world. "(First) industrial revolution areas" as Ruhr, Lorraine,
southern parts of Appalachian region all have serious economic and social problems,
unemployment, lack of investment and so on. Problems of restructuring are emphasized also with
Checkland’s Upas tree effect. In a shadow of old industries is impossible to restructure (a case of
Glasgow as opposite to Birmingham). Contrasting to unsuccessful old industrial areas appear new
industrial spaces which are connected with high-tech industries. There are several new
(macro)regions which originate as a result of "spatial (economic) shifts", for example sunbelt in
the USA (as a result of snowbelt - sunbelt shift - shift of population and economic activity from
old manufacturing triangle to some southern parts of the USA as California, Florida, Texas and
southern parts of Mountain region), British sunbelt (or M4 Growth Corridor with an axis London
- Bristol), or not-so-strictly HTI’s spaces as Catalunya, Lombardia, Baden-Württemberg as well as
Asian NIC's.
Global world-economy
One of the most fundamental characteristic features of recent world economy is its "world-
economy" character. Internationalization of the economy and society a gradual process. Trade
relations were rare before technical revolution of 15th century and resulting "collapsing the world
space", conditioned by advances in navigation. Rapidly growing internationalization enables
Immanuel Wallerstein (Wallerstein 1974) to apply a new concept world-system. His at the
present times one of the most popular "discipline" called world-system analysis. Wallerstein's
world-economy is dated from "long sixteenth century" (1450-1640). Intensified inner relations

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conditioned growing interdependency, complexity and spatial extension of the world-economy. In
Wallerstein terms world-economy passed through its stages of development up to present
capitalist world-economy. Capitalist world-economy is characterized as follows:
1. There is single world market which logic enables economic decisions.
2. There is multiple state system; position of individual states is uneven (based on uneven
exchange) and global world unevenness may result sometimes into hegemony and
dominance of one state (USA in recent times).
3. There is three-layer structure of the system: core, periphery and semiperiphery. System
is very dynamic with semiperiphery as the most dynamic layer - from the periphery into
the core pass Asian NIC’s with open, dynamic and flexible economies.
Internationalized world economy exists few centuries. Present economy, however is globalized
world-economy, interconnected, interdependent and sophisticated in its nature. Some of these
theses will be specified in parts dedicated to Slovak economy and its sectoral structure.
Sectoral structure of Slovak industry
Basic character of Slovak industries was laid in the times of socialistic industrialization.
Slovakia was a part of former Austrian-Hungarian empire as a component of its eastern part -
Hungary. Hungary obtained an equal status in Austria, but it give not independence to other
Hungarian nations among them the Slovaks. Slovakia - as opposite to Czechia - remained
unindustrialized country following the exhaustion of its resources (precious metals). As a result
of World War I and uneven position and dependence status of Czechia and Slovakia was
established a new independent state - Czechoslovakia. Slovakian part of the state retained its
mostly agrarian character in contradiction to western Czechia with developing industries.
Slovakia continued its semi-colonial uneven status, not in the sense of sweat exploitation and
basically unequal conditions, but above all in the sense of continued disadvantageous structure of
Slovak economy. Agrarian status had (and up to the present day has) its expression also in
conservative and rural character of important part of the Slovak society. Thus less urbanized
country in the strictly economic sense forms up to now Upas tree effect for modern industries.
Politics of Czechia towards Slovakia at the time between world wars seems to be for a large
part of present Slovak society as an exploiting one. Czech employees compensate for lack of

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Slovakian professionals, teachers, physicians and other specialists, but there were in Slovakia also
many Czech gendarmes. Lack of domestic (Slovak) capital for investment was another problem.
Underdeveloped Slovakia attained real development of its industry after World War II. Many
specificities of socialist industrialization is up to the present day brake of the modern industrial
development on the basis of growth of high-tech industries. Socialist industrialization was aimed
to two basic goals: to secure key industries and to build diversified industrial structure. Import
substitution politics in the conditions of closed economy and society located here primarily raw-
and environment-demanding sectors plus military industries. Slovak industrial structure as a
result was dominated by large plants producing steel, chemicals, metals and foods; products were
(and are) low quality and low competitive. Flexibility of these plants and concerns was lowered
by centrally planned economy and their managements. Inefficiency as a result of a poor
motivation, low level of productivity, bad locations of the plants... There are many problems in
Slovak industries and some of them I deal in the last part of my article.
International experiences of newly industrialized countries
Conditions of present and future development of Slovak industry are comparable with those of
some other relatively problematic, transitional, or underdeveloped countries. Some of them have
similar problems as economy of Slovak Republic and for us are the most attractive those with
similar size, openness and structure as well as with similar cultural preconditions and conditions
of the world-economy. From this point of view are for economic development of Slovak Republic
valuable experiences of Asian NIC’s (which are well prepared for the information society), and
small countries from European cultural environment as Ireland and Israel equally developing their
information-economy type industries.
One of the first examples of new industrial spaces, characterized by high portion of high-tech
industries, is Silicon Valley. "Silicon Valley story" (see for example Saxenian 1984, 1985, or
special Silicon Valley issue of Business Week, August 25, 1997). Spin-offs and new businesses
in the valley - originally Santa Clara County and at present an area with its centre in San Jose -
created the most creative environment in the world. A crisis in the 1980’s (competition of other
regions, congestion and traffic jam, ecological accidents) was overcome. One third of the most
influential computer companies are based in Silicon Valley (PC Magazine, July 1997). Success of

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this story is conditioned by creative environment, cultural and ideational melting pot,
hardworking environment, and agglomeration effect attracting investment. Fortune firms are
those connected with information technologies sectors: telecommunications, internet and intranet
and digital comprimation and transmision of information, video and audio as well as traditional
high-tech sectors - computers, electronics, biotechnology, aircraft and space industries, precise
and optical engineering, new materials and sources of energy.
Asian newly industrialized countries (from rich sources see, for example, Auty 1995) started
their industrialization in the late 1950’s. The first Asian NIC’s followed pattern of Japan’s
development four tigers (or dragons): South Korea, Taiwan, Hongkong and Singapore. Steady
growth of their economies without interruption is one of the most important signs of the new
international division of labour and - in addition to China, an economic miracle of the present day
times - contribute to global economic shifts from North Atlantic area (symbolized by NATO as an
area of northwestern Europe and Manufacturing triangle of the USA) to Pacific (symbolized by
APEC as an area of Pacific coast of North America, Japan, Asian NIC’s and China and
perspectively also southeastern Asia and Australia). Cultural preconditions of this area are more
specific than other areas as well as conditions of the world-economy. 1960’s-1970’s - a time of
NIC’s boom - were years of investment activity, lesser international competition, lesser input
prices (costs of labour, raws and other sources) and so on. More important for Slovak transitional
economy are, however, stages of economic development. Original periods of import substitution
and establishment of the key industries were changed by assembly operations (electronics,
automobiles, computers) and at a present times by on own research and development-based high-
tech industries.
Europe - as a region with similar cultural preconditions as Slovakia - witnessed a new-type
industrialization after Oil shock in the late 1970’s. Industrialization affected European periphery
and Spain as one of the first countries (Naylon 1992). Long-term prosperity of the world-
economy conditioned in first period from the beginning of the 1960’s boom of investment and
resulting change from the rural-agrarian to urban-industrial country in the first 15 years. Second
period after the Oil and investment crisis (and Japan’s and NIC’s’ competition) of 1975-1985 were
overcome by sectoral restructuralization (growth of information technologies - microelectronics,
telematics, information processing) accompanied by spatial shifts - decline of old industrial

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spaces (Basque regions, Cantabria, Asturia) and increase of new industrial spaces (Catalunya,
Valencia, Aragon and tourism-based Canarias and Baleares).
In comparison to Slovakia is Spain a large country with large and diversified economy and
purchasing power. From this point of view is appropriate to give another example. Irland has a
small economy, similarly as in the case of Slovakia with an inevitability to be export-oriented.
Irish Republic was twenty years ago an idyllic country with an untouched nature, underdeveloped
economy and high emigration. Development of assembly operations (especially microchips; see
for example Sayer 1986) were in the first period met with mistrust among both Irish and experts.
However, similarly as in the case of Asian NIC’s, this investment started an period of further
rapid development: they laid the foundations of tradition, attracted investment and changed
psychology of Irish population. Irish Republic is at the present time a country with modern
industrial structure and Microsoft’s choice of localization of Paneuropean version of Windows (in
spite of diffusion of Irish pubs, however, at the time of rapidly growing interest about Celtic
culture, mysticism, music, and even search of European identity in Celtic past roots, increase
nostalgic cries for real Irish culture). Shift from assembly operations to installations of
microprocessors is typical for Taiwan, Irish Republic and others and is an inspiration for
postcommunist countries.
The last example is Israel which is part of European cultural tradition with unique symbiosis
of individualism and sense for community (kibuts as well as Jews in the world) which may be an
inspiration for Slovakia and its economy in information age. Israeli’s economy witnessed through
its history different stages. The most important export articles originally were tropical fruits as
oranges, growing foreign competition caused a reorientation towards diamond industries. A real
turning point leading to Israeli’s fast development was high-tech reorientation of its economy,
first of all software companies startups. Software from Israel belongs to the most successful,
some of the greatest companies locate their activities in the country. By the way, Slovakian (and
Czech) programmers belong to the best in the world (results of the international high school
competitions). Results of IT’s production and sales but are not favourable. Backwardness of
European information technologies in comparison with the USA is the same as the backwardness
of those of Slovakia in comparison with Europe.
Slovak industries in information society

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Slovak (and postcommunist countries) backwardness is deep, but not insurmountable. Some of
the positive preconditions were already mentioned. Firstly I would like to summarize them
(including the negative preconditions) and then I will give some proposals of (economic) policy
and some critique of present Slovakian economic praxis in the light both future information
society and outlined theoretical schemes.
1. Historical conditions - as I already mentioned Slovak economic structure is
disadvantageous as a result of relative backwardness in comparison to Czechia in a
prewar (before the World War II) period and as a result of import substitution politics
during the socialist industrialization. Socialist era was the most typical example of
industrial thinking and resulted in the gigantismic economy of mass production, belief in
abilities to forecast and to plan. Vestiges of this mode of thinking are very strong up to
present day (decision makers, managers, public opinion "influencers", teachers).
2. Cultural conditions - in the previous text I mentioned conservativism (that is less
adaptability and new ideas acceptance) and maybe also sense for the collective.
Collective and cooperative thinking is very important in the information-type economy.
Sophisticate and creative tasks will require not pure individualistic approaches but
voluntary cooperation. Mainly the first contact with an "incomer" (investor or manager)
is confronted with Slovak openness of inner self, hospitality, warmth, sensibility,
communicability, industriousness; less positive is, however, modesty, preffering of
stability and certainty, closeness towards aliens and xenophoby as an extreme. Very
positive conditions inevitable for the future society’s needs are preconditions for
creativity, i. e. sensibility, "positive irrationality" (intuitiveness, fantasy, imagination),
impulsiveness but also simplification, anxiety to rely on "external control and need to
motivate and activitate the employees because of less inner activity as a limiting factor.
Cultural (or socio-cultural problem) is also duality of the Slovak society, mainly urban-
rural gap.
3. Political and economic conditions and inevitable measures - I would like to give a
proposal for optimizing sectoral structure of Slovak industry in brief. In addition to
right macroeconomic policy, structural policy (transparency of privatization, bankruptcy
and monopoly laws), position of the state in the economy (including taxes lowering -

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the state uses up one half of created GDP; in Asian NIC’s it is 15-25%) and so on.
Result of disproportionate position of the state in the economy is lack of investment.
The situation is impeded by many inner (technological, marketing and management
backwardness, social and ecological demands, wrong economic policies) and outer
(growing international competitiveness and protectionism, careful investment strategies)
conditions hinder the Slovak economy to develop successfully. Possibilities of future
successful development in the information-age world-economy are besides other factors
conditioned by (Kasala 1996b, partially adapted):
A. Deliberating economic policy with clearly stated and practically secured priorities,
including preferentially developed sectors - high-tech industries and above all
information technologies. It is inevitable to search ways to attract HTI’s by the use
of different measures - tax reliefs and holidays, providing least costly equipments,
infrastructure (or plants/firms) and so on - these measures attracted foreign
investment are by the Slovak government already applied. Other measures may may
be used to support domestic businesses, above all small and middle entrepreneurs
(this support declares the government only formally). Slovak government realizes no
real policy aimed to IT’s priority. US and EU information superhighway
commissions, G7 Group in its Bandemann reports as well as American president
through his commission and advisors are permanently influencing position of their
countries. Former Czech prime minister V. Klaus was paradoxically known as an
enemy of internet, but after his fall arisen in Parliament IT commission. Attitude of
Slovakia is typical - refusing to pay VAT to Microsoft, Slovakia as a minimal
requirement for providing all the Microsoft products to Slovak schools.
B. Inevitable condition for optimal economic development is balanced and diversified
sectoral structure of Slovak industry. Present disadvantageous structure with high
proportion of heavy chemistry, steel, declining military industries is worsened by
lack of raw materials (raw-intensive is one half of industrial production of the
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Slovnaft one twentieth of Slovak export). There is a necessary task to modernize
industries, but in the same time also to diversify them, that is to strenghten positions
of some middle-technology industries including assembly operations. Very

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important may be improvement of position of car assembly (Volkswagen Bratislava
is one of the most successful plants of the VW Group and became the second largest
exporter; VW is in the same time one of the largest investor in Slovakia) and
electronics (Sony and some other foreign companies manifested their interests). Both
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C. Diversification of industries and support HTI’s and IT’s must go hand in hand with
lowering of old industrial sectors (as I mentioned above) and removing of old
industrial thinking. "Captains" of Slovak industry behave similarly as those in 19th
century. The main goal is for them to become wealthy, to eliminate competition, to
be number one not only in the industry, but in the whole society. Typical example in
this sense is East Slovakian Ironworks. Management of the corporation (in spite of
lack of investment) buys foreign steel plants (East Germany, Hungary, USA),
football teams, media and (sometimes illegally) banks, all with a substantial support
of the central government. Conservation of this disadvantageous sectoral structure,
however, is connected with world-economy and product life cycles. Steel as an old
industry is produced mainly in developing countries (South Korea, Brazil) and in
huge steel combines. The second of them are new, technologically advanced and
located on the coasts of the United Kingdom, Italy, Spain,... - where are low
transport costs. These European producers have itself serious problems with
declining metallurgy and thus they are protected by their own governments
(European Union protects them by import quotas). Probable extension of EU (Czech
Republic, Poland, Hungary) will mean for the Slovak exporter further lowering of
export possibilities.
D. Real status of the economy is a result of economic policy. In this sense I would
emphasize above all export-oriented policy and regional economic policy attracted
investment. Proexport policy is effective measure of the state which is carried out by
marketing, information services, propagation activities, etc. Slovak Information
Agency was established for the sake of positive information about Slovakia abroad.
Activity of the agency was closed with the misappropriation of 3 mil. USD. Society
for the export credits insurance is almost non-functioning and the whole export
policy has rather antiimport than proexport character. Experiences of another areas

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and countries are saying us more about acts to attract investment and other regional
political measures. Favourable environment and appropriate measures are able to
attract into region or place capital, Slovakia is but absolutely centralized state.
Regional policy raised Wales county Clwyd in the late 1980’s. An old industrial
space suffered at most after was closed the last steel plant down (1980). In the late
1980’s were established technological park, specialized high schools and into the area
were transfered technologies. In the middle of the 1990’s was Clwyd one of the most
dynamic British regions. Another example of successful development of an "Upas
tree area" is Pittsburgh. Steel city was after deep economic and social problems
transformed and in Fortune’s top cities most attractive for the businessmen reached
the fourth place.
E. Modernization and informatization of economy bring a new geography, new spatial
patterns and changing spatial relations. Fortunes and losses of individual regions
alternate, but "the most powerful" regions remain almost unchanging during
relatively long periods (at the present days the time but shorten to few decades).
There are also changing position of infrastructure and geographic situation.
Implosion of space conditioned by communication revolution enables interactive
exchange of information in the real time. This factor in addition to homeworking
enables decentralization of information-age economy. Changing task of infrastructure
maybe deliver us from an inevitability of highway building, however we have rests in
a quality of our analog telephone net, speed of our access to internet and in digital
television. Changing sense of geographical situation is saying us that we must forget
on our ideas of a bridge between East and West; our advantage thus is not
geographical and geopolitical situation, but a knowledge of language, culture, and
national mentality.
F. From the point of view of geography and geoeconomical pattern in Slovakia seems
to be optimal polarizational development, as in the sectoral sense (high-tech
industries and above all information technologies as poles of the growth) as in the
regional sense. Thus Bratislava is the most important growth pole, Košice and
perhaps another cities - regional centres - are second rank growth poles. Advantages
of Bratislava are obvious: educational and research and development potential,

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qualified labour forces, creative environment, relatively sufficient foreign investment,
proximity to Vienna and perhaps Budapest (to both Austria and Hungary
respectively). Perspectives of Bratislava in the future were evaluated by several
foreign studies, one of them placed Bratislava and its vicinity at the top of Europe.
G. Bratislava is (in spite of efforts of some of the political leaders) administrative capital
and intellectual centre of the state as well as centre of decision making. For the
fortunes in the future society is inevitable (perhaps more than whatever) to develop
proper educational system as well as research and development, intellectually,
institutionally and also by financing it. Universal character of general (basic and high-
school) in Slovakia is from the needs of information society appropriate model, there
is but a need to transform (and to support) universities - that is not to establish new
ones, but to improve a quality, to heighten use of information technologies and
courses of wider orientation, to motivate students towards their greater activity,etc.
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