69th International Atlantic Economic Conference

March 24 - 27, 2010 | Prague, Czech Republic

The Phenomenon of Polish Transformation

Saturday, 27 March 2010: 15:30
Janusz Skodlarski, Professor , Department of History of Economic Thought and History of Economy, University of Lodz, Lodz, Poland
Andrzej Pieczewski, Ph.D. , Department of History of Economic Thought and History of Economy, University of Lodz, Lodz, Poland

 The Phenomenon of Polish Transformation
Much attention has been paid in the specialist literature to the question of system transformation in Poland (1990 – 1993). What has been pointed to most frequently is its radicalism, its rapid development and the great social support it enjoyed despite many negative economic effects it triggered in its initial stages. Authors of works on transformation in Poland which have been published so far have focused mainly on its ultimate principles, the course it has taken and its economic outcomes. Less attention, however, has been given to its genesis and the background in which the changes in Polish economy became possible in the early 90’s of the past century.
What has been intended in this paper is to outline the reasons for such a quick start of Polish transformation during 1990 - 1993. The research method the authors decided to apply has been an analysis of a wide spectrum of documents. The list of sources used for this paper includes Solidarity archive records, recent Communist government’s documents  and reports and analyses carried out by Polish economists.
The results of the analysis of relevant documentation have tempted the authors of this paper to adopt an assumption that there is quite a number of reasons for such a quick start of system transformation in Poland.
First, numerous economic programmes and materials created by the opposition in the ‘Solidarity era’ implied the necessity to replace the socialist economic system with free market and democracy.
Second, in the 80’s of the past century, theoretically and practically attempted reforms originated in the governmental circles of the time. This is particularly true for the second half of the decade, the time when the last Communist governments tried to implement certain elements of a market economy into the basically unchanging fundaments of a socialist one.
Third, a great inspiration for the ‘transformation movement’ was provided by academic circles. Experienced and qualified Polish economists contributed to an immense extent to the success of transformation in Poland. Their connections in the Western world just cannot be overestimated.
And fourth, there was a significant political support for the introduction of reforms in Poland that was given both on the domestic ground and from abroad by international institutions and Western economists.
All this combining with an incredible amount of public confidence in the transformation process enabled Leszek Balcerowicz to propose a radical economic programme called the ‘Balcerowicz Plan’. The transformation of Polish economy as we know it would not have been possible without its father and initiator Leszek Balcerowicz.
The paper concludes with a statement that there were several factors that contributed to the success of Polish economic transformation during 1990 – 1993. These factors can be said to fall into the following three main categories: intellectual and theoretical qualifications of Polish economists, the ‘Balcerowicz Plan’ itself and the way it was put into practice, and social support for radical reforms that were quite painful at that time.