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Russia and the newly independent states have suffered profound and continuous declines in gross domestic product as the centrally planned system disintegrated, government tax revenues plummeted, and weak social safety nets were instituted. In contrast, the Central and East European economies experienced only a brief period of economic decline, followed by growth within a newly introduced market system. Moreover, some governments, including the Czech and Slovak Republics, established relatively strong social safety nets.1
Data from the Family Budget Surveys2 of the Czech and Slovak Republics show that inequality, based on adult equivalent household income,3 did not change appreciably in the Slovak Republic from 1989, when the two republics operated as one country (before the "Velvet Revolution") to 1993, the first year the country separated into two Republics (the year of the "Velvet Divorce"), 4 years into the transition to a market economy...
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