Introduction:In 1989 the Velvet Revolution began the fall of Communism in Czechoslovakia. On November 28, the Communist Party left power and ended the single-party rule that governed Czechoslovakia. In 1993 the country split and the Czech Republic was formed, as was Slovakia. With this new freedom and the formation of a country composed of an ethnic Czech majority, the future seemed bright. However, even though the Czech Republic was free from communist oppression, it still faced major challenges, including forming a capitalist economy after years of dependence on the Soviet Union and attempting to solve the many environmental problems caused by industrialization during communism. In this article I argue that, despite initial economic success, the Czech Republic's transition to a capitalist economy was unsuccessful, but that the Czech Republic managed to reverse environmental impacts during the communist era. My argument proceeds as follows. First, I will describe the economic changes that the Czech Republic has undergone from its independence in 1989 to the present, documenting its initial success and then describing what led to the economic recession it has embarked on. Second, I describe the ecological damage caused by industrialization imposed by communism and what the Czech Republic has undergone to reverse this damage. Finally, I conclude by summarizing the failures of the Czech Republic's economy and the success of its environmental programs, and the effects that these failures and successes have had on the Czech Republic's transition to a liberal democracy. Historical context of the economy of Czechoslovakia: I believe that getting a complete picture of the reasons for the failure of the Czech Republic... middle of the paper... and since these new peoples did not have regional identification with the land, they allowed the party communist exploit its natural resources and industrialize rapidly without any concern for environmental effects. In addition to this lack of connection to the land, there was also an environmental problem related to the energy source that powered much of the country. Brown coal was mined extensively in Northern Bohemia and was used to fuel industry in Czechoslovakia. Communist officials noticed serious environmental problems in Bohemia as early as 1960, and they have only increased since then. One of the most notorious incidents occurred in 1982, when the smog was so bad that traffic had to be stopped. Smog was persistent in the area and caused breathing problems among children, and the region's life expectancy was 3 to 5 years shorter than in less polluted areas.