In 1968, after the intervention of Warsaw Pact forces in responses to calls for reform, Czechoslovakia became the Federal Czech and Slovak Republics. In 1989, the so-called 'velvet revolution' led to the fall of the communist regime and a move to market-oriented economic principles. The constitution of the Slovak Republic was adopted in 1992 and the Czech Republic and Slovakia became separate countries in January 1993. Slovakia is now an independent, multi-party democracy. The country is divided into 8 regions and 79 districts. Following initial problems in 1991, the Slovak economy has made good progress. In 1997 GDP reached US$7,910 per person, an 89% increase since 1989. Inflation decreased from 25.6% in 1993 to 11.6% in 1997; but after 1998 the economic situation worsened and unemployment rose, international debt increased and the state deficit expanded.
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