Advising A.I.D. on Czechoslovakia

Advising AID on Czechoslovakia Written in November 1990 Miloslav Rechcigl, Jr. During 15 September to 1 October 1990, I traveled, as a member of the Commission for Cooperation with Czechoslovakia, on their fact-finding mission to Czechoslovakia. Although the Commission consisted primarily of US private citizens, I went along as an official representative of A.I.D. US Agency for International Development because my Agency I retired from the Agency in 1996 thought I would bring back first-hand information about the country’s status which could prove useful in the Agency’s own program in Eastern Europe. The invitation letter, which was addressed to A.I.D., was signed by Zdeněk J. Slouka, Cohen Professor of International Relations at Lehigh University, who, among other credentials, was also a member of President Havel’s Board of International Advisors. The latter impressed my superiors considerably. The purpose of the mission, as elaborated in the letter, apart from fairly intensive learning about a variety of aspects of Czechoslovak scientific and academic life, the commission hoped to accomplish two things: 1) to evaluate the capacity of individuals and institutions in Czechoslovakia to effectively absorb various forms of future assistance from abroad and 2) to set the stage for a small number of cooperative projects with Czech and Slovak intellectuals and institutions. My own expertise in research management was emphasized, as well as my intimate knowledge of the Czechoslovak scientific landscape, which was one of the areas of the commission’s emphasis during the trip. As always under such circumstances, I had to get the necessary clearances, up the line. After I received the green light from within the Agency and the State Department, Secretary of State Baker sent, on my behalf, the following cable to the US Embassy in Prague: E.O. 12356: N/A Subject: Request for Clearance 1. Dr. Miloslav Rechcigl, Jr., Research Review Director, Office of the Science Advisor, has been invited to participate with a group of professionals from the U.S. who plan to visit Czechoslovakia in the middle of September. Rechcigl invited by President Havel’s Advisor for Academic Affairs - Professor Z. J. Slouka of Lehigh University, Bethlehem Pennsylvania. The purpose of the visit is to assess research capacity of selected Czechoslovak institutions, to review relevant researchable problems, and specifically for Rechcigl to discuss matters of research management. 2. As stated in invitational letter, Dr. Rechcigl’s expertise in research management and his first-hand knowledge of Czechoslovak scientific landscape makes his participation desirable. Funded by A.I.D., Dr. Rechcigl is traveling in his capacity as a scientist to discuss matters of research management. 3. Group would make their own arrangements. Embassy support not requested. although Rechcigl could provide debriefing if requested. 4. Appreciate country clearance directly to AID/SCI, Dr. Rechcigl, ASAP, in view of the short deadline. 5. This cable has been cleared by State/D/EA. Baker. It did not take long for the response which read as follows: Embassy welcomes the visit of Dr. Rechcigl and would appreciate a debriefing at the conclusion of his visit. We have already set up an appointment for Dr. Rechcigl and Prof. Slouka with DCM In the diplomatic lingo, Deputy Chief of Mission - the title given the Ambassador‘s Deputy. Ted Russell at 2:00 PM on Monday, September 17, Russell The detailed description of this trip is given elsewhere. Here I will elaborate only on the aspects of the trip bearing on AID with the perspective of the Agency’s possible assistance to Czechoslovakia. The narrative, relating to my findings and recommendations, that follows comes from my official trip report to the Agency and the State Department at the completion of my trip. MY FINDINGS ABND RECOMMENDATIONS Background I went to Czechoslovakia (ČSFR) Czechoslovak Socialist Federal Republic. as a member of an invited group of professionals from the United States to meet with Czechoslovak academic, research and other related institutions to access their capabilities and needs with a view towards a variety of cooperative and supportive projects. The group was sponsored by the Commission for Cooperation with Czechoslovakia and was headed by Professor Z. J. Slouka, Cohen Professor of International Relations at Lehigh University, a member of President Havel’s Board of International Advisors for Academic Affairs. During this trip, we met with various government representatives, particularly from the Czechoslovak Ministry of Foreign Affairs (Minister Jiří Diensbier spent almost half an hour with our group), the Czech and Slovak Ministries of Education, Health and Agriculture, officials of the Czechoslovak Academy of Sciences and, finally, practically with all Rectors and Vice Rectors of Czechoslovak universities and other institutions of higher learning. Being all bilingual, we were able to gain an intimate insight about relationships and programs which are not usually apparent to other foreign visitors. On the whole, we found all Czechoslovak representatives most cooperative and eager to rejoin the democratic world from which they had been banned for the past forty years of the Communist rule. General Observations: Politically speaking, democracy has indeed returned to Czechoslovakia. People speak and write freely and openly and their outspokenness sometimes exceeds the latitude of freedom to which we are accustomed in the U.S. The highest echelons of the CSFR Government, academic and other institutions from the Communist era were replaced by the representatives of the Civic Forum (or its counterpart in Slovakia) and other followers of President Havel. The middle-level bureaucrats have essentially been left alone which reflects in part “the Velvet Revolution” “Sametová revoluce” in Czech. The term, which was apparently coined by Rita Klímová, refers to a bloodless revolution in Czechoslovakia that saw the overthrow of the communist government there. The term was apparently coined by Rita Klímová, the future Czechoslovak Ambassador to the US. philosophy of President Havel and in part is due to the lack of sufficiently trained non-Communist personnel. The plans are to systematically replace the members of the “stará struktura” (old structure) as soon as feasible and, in fact, during our visit some of these changes were beginning to take place in a subtle way. This is an area where the U.S. and other Western countries can provide important help through education and on-the-job training, by providing suitable experts and consultants, by furnishing needed information, etc. The Slovak question, as portrayed in the U.S. Press, is grossly exaggerated. Despite the external efforts of the Slovak separatists in Canada, Switzerland and, to some extent, in the U.S., most Slovaks support the idea of the united Czechoslovakia As it unfortunately turned out, I was wrong in my conclusion regarding this point, since in 1992, the Czechoslovak Parliament decided to peacefully partition the country into the Czech and Slovak parts and let each nation go its own way. I am convinced that had the individual citizens had the opportunity to vote on this question, there would still be Czechoslovakia today. . The Slovaks are, of course, sensitive to the notion of their independent status as a nation, on equal footing with the Czechs, and demand that they are treated as such. I would view the occasional Slovak-Czech squabbles as “sibling rivalry,” which bears no comparison with the ethnic violence in Yugoslavia or Rumania. The Hungarian minority in Slovakia may pose some problems and it will be up to the Slovak regional government to diffuse the issue. The feelings of the Czechs and the Slovaks towards the U.S. are exceptionally friendly and warm and most of them feel fondly about the American assistance in the establishment of the independent Czechoslovakia after World War I and the arrival of General Patton’s army in Pilsen towards the end of the World War II. The truly democratic status and the unusually high standard of living in the inter-world-war Czechoslovakia was responsible for calling the Czechs the “Yankees of Europe” Most of the population hopes for and believes in the return of their pre-war status and image. Considering their fiercely independent mind, and their stamina, the odds are on their side that they will make it. There is no need to “preach” to the Czechs or Slovaks about the virtues of democracy and the evils of Communism. They know it and they believe it. Communism in Czechoslovakia is, for practical purposes, dead. But freedom of expressions is not enough; the populus will also need to be assured and convinced that a democratic system can support a decent living and provide necessities in sickness and old age. Economically speaking, the country needs help. It was painful to see how Czechoslovakia could regress from its pre-war status of the “Yankees of Europe,” when its standard of living exceeded that of Germany and most of the other European countries, to a level of a developing country of the Third World. Visitors from abroad, as a rule, get to stay in the most expensive hotels ($150 or more per day), and are shown the beautiful architecture of the Old Town Square, the picturesque landscape with castles on the mountain tops, etc. They frequently fail to recognize the devastation brought about by the Communist regime. The beautiful facades of the Old Town Square buildings fail to show the rotted floors inside the buildings. While traveling through Czechoslovakia, we could see the dilapidated buildings, sometimes in ruin, the environment polluted from the indiscriminate use of lignite, and a lack of effective policies to limit industrial pollution. The presence of Soviet troops added to the environmental destruction, deforestation of the land, and according to several accounts, the contamination of the water table with heavy metals. Many of the young people presumably refuse to eat agricultural products for fear of toxicity from radiation effects. The rampant pollution and the environmental degradation is, no doubt, at least in part responsible for the shortened life span of the Czechs and the Slovaks. I was told that the current life-span is 65 years, as compared to the previous level of 73. The high death rate, resulting from the increased incidence of cardiovascular diseases and cancer, may be accounted for by the mentioned pollution, as well as by the high incidence of smoking, increased level of alcohol consumption, stress and poor diet. The dietary inadequacies stem primarily from the low intake of vegetables and fruits and the excessive consumption of fat and calories. The reason for the above is the lack of availability of vegetables and fruits, as well, as the fear that these agricultural products may be contaminated by undesirable contaminants and finally, from the lack of nutritional education. The working morale is not the highest, although it has improved somewhat since the Communists were defeated in November. As long as the land, industry and business remain in the hands of the State, there is little hope for improvement since there are no incentives for the employees to work optimally. Under the Communist system, everyone got paid the same regardless of level or quality of performance. The people are eager to switch to a free market economy, which should bring about the needed improvement in the working morale. The Czechoslovak Government has already approved the first phase of privatization laws, which will permit auctioning of state-owned shops and small businesses to individuals. During our stay, we witnessed a certain degree of apprehension among some of the current employees of various small businesses, who wanted to purchase these shops and who felt that they deserved certain breaks and privileges over other buyers. There was some concern that the businesses might be purchased by former Communist ‘Lords’ who may well have dishonestly accumulated monies during the former regime. The second phase of privatization which will involve larger businesses and industrial plants has been temporarily postponed; but according to some sources, it may be initiated in November 1990. This will not be an easy matter, by any means. Most industrial plants in CSFR are antiquated, and will require a major overhaul to bring them up to the Western standards. Some of the larger conglomerates will need to be broken up into manageable pieces and the unproductive plants will have to be shut down. The Soviet-imposed heavy industry orientation will need to be redirected to light industry, an area where the Czechs excelled prior to World War II. Such redirection would also have a tremendously beneficial effect on the landscape and the environment as a whole. This cannot, of course, be accomplished overnight but it needs to be started soon. It will clearly require a large capital investment and some human hardship. As President Havel stated on several occasions, Czechoslovakia does not want and will not accept any charity. It would welcome, however, foreign investors and joint business ventures with them. It is also open to technology transfer and is keenly interested in exploring various ways to change the centrally planned and centrally run businesses to free-market economy enterprises. This presents a great opportunity for the U.S. investors. An investment in Czechoslovakia would not be a one-way street, to be sure. Such an investment would be beneficial to both countries, Czechoslovakia and the U.S. Provided, the conditions are right, Czechoslovak skilled workers can be extremely productive and their performance can meet, if not exceed, any international standards. Privatization of the industrial sector would not occur without hardship. As the unproductive factories are closed down, there will be some unemployment, which will pose difficulties for the Government. However, this is inevitable and, in my opinion, a moderate unemployment may bring some benefits in eliciting motivation, a sense of competition and generally elevating the working morale. Work incentives must be used to persuade workers that economic measures are beneficial to Czechoslovakia and to them individually. Agriculture poses a special problem. Most, if not all, of the land is currently owned by the State. After the Communist takeover the larger farms were confiscated and the smaller farms were collectivized, first on a voluntary basis and then by force. The communist completely destroyed the family-owned farms and aggregated them into large cooperatives, owned by the Sate, either at the national or regional level. The cooperatives, on the whole, have been sufficiently productive and the people, who work there, are comparatively well off. Although some individuals would like to get their land back a large scale privatization of agriculture will not be an easy task. The present cooperative employees have become used to the eight-hour (or less) routine, without worries and with assured wages. To be sure, a family owned farm is hard work and a risky enterprise. Demonstration model farms are needed to convince prospective farmers that farming can be a successful business. The government is understandably reluctant to release land to former owners unless they are willing to keep the land in agricultural use. From the consumers’ standpoint, agricultural production is quite inadequate, and it is unlikely that the situation will change without some privatization. There are chronic shortages of fruits and vegetables which may account, at least in part, for poor nutrition and generally inferior state of health. During our stay the restaurants did not serve any potato dishes because of the unavailability of potatoes. Putting farms in private hands with special incentives on the production of vegetables and fruits may be all that is needed to ameliorate the problem. Organization of science and research in Czechoslovakia during the Communist era was based entirely on the Soviet system. Practically all basic research was carried out by scientists affiliated with the Czechoslovak Academy of Sciences (or the Slovak Academy of Sciences). Applied research, in turn, was the domain of specific ministries responsible for agriculture, health and industrial sectors. Universities were essentially left only with teaching responsibilities. The Presidium of the Academy was responsible for setting the science policy and budget allocation. Centralized planning was under direct control of the Communist party and, as a consequence, budgetary decisions were not always in conformity with the needs or the quality of research work. Furthermore, separation of basic research from teaching and extension isolated the Academy from the real world with the result that much of the supported research was largely academic, without relevance to national needs. Disassociation of research from production and from education during the Communist era has had dire consequences on the serious problems Czechoslovakia is facing today. On one hand, research is not providing the greatly improved emerging technologies to industry, while on the other hand, advanced university teaching does not benefit from the findings of the latest research findings. There is some pressure to make it comparable to the U.S. National Academy of Sciences, i.e., to change it solely to a membership institution. Under that arrangement, basic research would be transferred back to the universities. Such a system would resemble the U.S. model: Teaching- Research- Extension which has proved very successful. The Czechoslovak universities, in general, would welcome such a reform. The researchers affiliated with the Academy are naturally apprehensive about such a plan, however. Perhaps a middle ground could be found which would allow a dual appointment of researchers at both the Academy and also at the respective university. Actually, as currently constituted, the Czechoslovak universities are essentially undergraduate institutions. By linking up with the Academy the level of university education would clearly be upgraded, permitting them to offer graduate and post—doctoral training. Be that as it may, it is my understanding that central planning and budget allocation at the Academy level will be soon replaced with a grant system. An indiscriminate disassembly of the Academy research institutes would be a mistake, however. Some of these institutes have gained a world reputation for pioneering work in science. Most of them are well equipped and some of the laboratories exceed in sophistication in comparison to comparable laboratories in the U.S. It is the universities that have been poorly neglected under the old regime. Apart from reinstating research, and reequipping their laboratories, the universities need to fill gaps in their library holdings and update their teaching materials. The latter is, of course, not as acute in the technical fields as it is in social sciences and humanities. Some disciplines, such as history, philosophy, sociology, comparative law, government, political science, international relations, economics, marketing, management sciences, information science, systems engineering and operations research were completely neglected during the Communist era. By far the highest priority should be accorded to the updating, rejuvenation and replenishment of the human capital. During the last forty years, educators were essentially cut off from Western civilization and influences. There is a need to reestablish the ties with the West. The present educators need to be brought up-to-date or retrained, while the younger upcoming educators should be given every opportunity to be exposed to the current state-of-the-art thinking and. scholarship, and the latest advances in science and technology. Obviously, these educators will be molding the minds of the future national leaders. There is a need to develop models of research—producer linkages and to train a cadre of entrepreneurs and researchers that can work together to improve productivity. Similarly there is a need to reestablish the cross linkages through exchanges of personnel and training of university faculty. Language Capabilities - A foreigner in Czechoslovakia may find it a bit trying. With the exception of intellectuals who profess at least a limited knowledge of German (in the Czech Lands), Hungarian (in Slovakia) and Russian, and to some extent English, common folks, particularly in the countryside, speak exclusively Czech or Slovak. There is a great interest among all strata of the society to learn English. Whatever knowledge of the English language exists, it has been acquired mostly from books, without access to native speakers. The ability to speak American English is practically non-existent. The greatest knowledge of English can be found among scientists affiliated with the Czechoslovak Academy of Sciences (or the Slovak Academy of Sciences), which is not surprising, considering the privileged status of the Academy under the Communist regime and the fact that at least some scientists were permitted to travel abroad. University scientists were less lucky in this regard. Specific recommendations: In summing up our discussions with government officials, educators, scientists, and researchers, I have come to several tentative conclusions which are the basis of the following recommendations. The emphasis is on effective, manageable and relatively inexpensive measures and initiatives which could be readily implemented. 1. There is a great desire by the Czechoslovak people, young and old, to learn English. The Peace Corps has plans to send some twenty teachers there this year, and between forty and sixty next year. These numbers are grossly inadequate. Alternative approaches need to be sought, perhaps through private arrangements, to augment these numbers. 2. Wherever we went we were reminded of the urgent need to set up some sort of an information center which would provide information about business and education opportunities abroad, particularly in the U.S. Such a center should be stocked with directories and other reference tools, listing universities, foundations, research institutions, business establishments, fellowship sources, sources of experts and consultants, and other relevant information and points of contact. In addition to reference publications, the center should be equipped with computers linked to the key U.S. information centers, such as U.S. Library of Congress, U.S. Department of Agriculture (USDA) Library, the National Library of Medicine, etc. Such a center would not necessarily have to be an expensive venture inasmuch as several institutions in Czechoslovakia offered to provide physical facilities for this purpose free of charge. 3. Some practical way will have to be found to bring the Czechoslovak library holdings, particularly those at the institutions of higher learning, up to par with comparable libraries in the West. It is likely that individuals and various private organizations would be willing to donate their publications for this cause. The biggest remaining obstacle is the cost of shipping the material to Czechoslovakia. It would be fitting for A.I.D., with its long and extensive experience in shipping educational materials to LDCs Less Developed Countries, to assist with this matter. 4. The quickest remedy to bring the educators and other leaders in Czechoslovakia up to the level of the Western state-of-the-art, would be through short-term training, by organizing seminars, workshops and conferences in specific fields, such as environment, principles of free-market economy, management sciences, social science research, etc. 5. One common area, identified virtually by all scientists and educators as deserving special emphasis and support, is research management. Four decades of isolation from the West left vast gaps in the ability of East European scientists to manage their research. It is not a mere question of designing one’s own experiments, but to devise a research strategy cognizant of the country’s needs and then to compete internationally with other scientists in a highly competitive atmosphere. With centralized planning, fostered by the old regime, scientists were essentially told what to do and were provided with the basic support for the assigned tasks. The idea of self-initiated research efforts, competition for research support and translating the research results into practice is surprisingly foreign to them. The best way to remedy the situation is through organizing weekly workshops at specific locations. There was so much interest in the subject matter that before our departure we were given a list of potential participants. Several institutions, including Charles University, the Czechoslovak Academy of Sciences and Slovak Academy of Sciences offered their facilities where the workshops could be held and the participants housed. There is no question that the workshops on research management would greatly contribute to democratization of decision—making in Czechoslovakia. 6. Another major area which was selected by the university leaders for special consideration and emphasis is the subject of university administration and management. Again, they would welcome organizing a workshop or conference in which American university administrators would share their views and experiences with the Czechoslovak counterparts on various administration models and specific aspects of university administration and management. 7. Many of the problems Czechoslovakia is facing today could be tackled through scientific research and/or technology transfer. In terms of research priorities, the highest emphasis should be given to the studies relating to the problems of environmental degradation, agricultural sustainability (i.e., optimization of the yields based on ecological principles), application of biotechnology and biocontrol measures to replace expensive and environmentally detrimental chemical inputs, seeking alternative sources of fuels in place of the polluting brown coal, computers, communications, and finally problems relating to environmental and occupational health, preventive medicine and nutrition. 8. Most of the research problems listed above are in an area which is considered a “cutting-edge science and technology” and an area where the American scientists are clearly in the forefront. There is a great interest among the Czechoslovak scientists to work jointly with the U.S. experts on specific research projects that may lead a way to eventual solutions of some of these problems. A.I.D.’s Program in Science and Technology Cooperation (PSTC) seeks to stimulate new and innovative scientific research in LDC’s by means of unsolicited research grants program. It would be quite natural to extend the program to Czechoslovakia and other East European countries. From the U.S. point of view there may be some advantages in pairing up with the Czechoslovaks in joint research projects, as well. Because of the nature and severity of the environmental degradation, Czechoslovak landscape and environment can serve as a model for studying the causes and for exploring alternative measures to remedy the situation. The same reasoning applies to the problems of environmental health, including the questions of the high incidence of chronic diseases and the shortened life-span. From another perspective, it should be pointed out that Czechoslovakia has a number of advanced laboratories that have developed unique methodologies, for example, to assay trace levels of environmental pollution, such as heavy metals. 9. Apart from the methodological uniqueness, some of the Czechoslovak laboratories have superior capacity to carry out biological, microbial, biochemical and chemical work on a pilot or industrial scale. this may not be generally known and should be brought to the attention of the American biological, chemical and pharmaceutical firms which may find the setup very attractive, and quite profitable, for joint business ventures. 10. Talking to the younger scientists and researchers, it became clear that one of the greatest obstacles for the young scientists in establishing contacts with their Western colleagues is the lack of hard currency. They simply cannot afford to travel overseas. Their monthly income is less than $200.00. It would be a nice gesture for the U.S. indeed if a relatively small fund could be established to enable these young researchers to come to the U.S. for the purpose of facilitating collaboration between the two sides. Stipends at the level of $2,000 up to $5,000 would be adequate for this purpose. During the short visit they would benefit not only from personal contact but also from seeing the latest laboratory equipment and perhaps learning some new technique. 11. Reference was made to potential difficulties in transforming the state-owned agricultural cooperatives to family-owned farms. It is recommended that an experimental model farm be established in Czechoslovakia, based on ecological principles, which would demonstrate that such a farm can be environmentally sound as well as highly productive and successful from a business point of view. A great interest was expressed in having such a farm based at the Agricultural University in Prague where it could be incorporated into the regular school curriculum. Ideally, such a model farm should be developed with the assistance of one of the U.S. Land Grant Colleges/Universities. 12. Last, but not least, a word about technology transfer, which Czechoslovakia most assuredly needs. It is obvious that privatization alone, without a concomitant technology transfer, cannot bring about the needed changes in the Czechoslovak economy. The magnitude of problems is immense and there are no quick answers available without a careful analysis. What is certain is the fact that the U.S. has the edge over other countries in the needed expertise and knowhow to deal with these problems and should thus be the principal player in providing the technology transfer to Czechoslovakia. This is an area clearly belonging to A.I.D.’s domain and responsibility. One problem which seems to underlay all sectors is the need for personal computers and the FAX machines. In a short run, the donation of such equipment (with instructional training) to selected Czechoslovak institutions (including the government ministries) may be the best investment the U.S. could make. Epilogue: If I were asked by the President of the U.S., or his advisors, how could the U.S., most effectively, and dramatically help Czechoslovakia, I would say: Do something for its young people. After all it was the students and young people, generally, who swept President Havel and his Velvet Revolution to power, and to whom we must be forever indebted. And it is these young people in whose hands the future of Czechoslovakia rests.