The Road to freedom: The real story of surviving communism

1. The Road to freedom: The real story of surviving communism Sylwia Martynowicz- Cavalcant

2. Economic Concepts • ECONOMIC GROWTH • SCARCITY • OPPORTUNITY COST • STANDARD OF LIVING (THEN AND NOW) • GDP • SHOCK THERAPHY • UNEMPLOYMENT • INTERVENTIONISM • CENTRAL PLANNING MARKET VS. FREE MARKET

3. My Family's Story Over 10,000 people were removed from Poland, and about the same died while fighting for freedom

4. The Market during communism in Poland FREE MARKET VS. CENTRAL PLANNING BLACK MARKET SHORTAGE OF FOOD

5. Main problems in the communistic system in Poland • Shortage of food • Prices are created by Government not buyers and seller • Lack of incentives/ very low productiveness (people got paid the same amount, whether or not they were working or not - “sitting or laying down”) • People can’t talk about democracy (academia, work places because of KGB) • People couldn't’t travel outside of Poland (no comparison)

6. SITUATION IN POLAND – CENTAL PLANNING • High Inflation • Deficit ($24 millions) • Unemployment rate: 10.8%, very low wages • Lack of truthful information in media/ media controlled by the government • Gray buildings /no property rights/ lack incentives to take care of your property • “Police Hours”

7. Main problems in the communistic system in Poland • Much corruption in Presidential Elections (in other words, the result was already known) • Obligatory Holidays (great show) Teachers Day, Minor Day, Women Day to show you how your government is great and to promote the communistic system

8. SOLIDARITY Independent Self-governing Trade Union "Solidarity"1980 1982 ELECTRICIAN Lech Walesa “Without her visit there wouldn’t be the victory” Margaret Thatcher meets Walesa in 1988

9. First Strikes in coal mines - September 1980 • By the end of December 1980 there were about 700 000 people protesting, • Solidarity was almost in every city

10. Strikes and action of the police • First Strikes- coal miners • Later: colleges, universities • People on strike in their workplaces • Police can’t control the situation –they made them political prisoners

11. What do they ask for? • Access to media, • Freedom of speech, • Stop arresting • Saturdays as a day off from work

12. 1989 “ROUND TABLE CONFERENCE”

13. Round Table postulates • Able to have SOLIDARITY in each work place • Register Solidarity as a legal Union • Free media, • Saturdays off • Less control in daily life

14. LECH WALESA –PRESIDENT • December 22nd, 1990

15. JEFFREY SACHS –TRANSITION TO THE FREE Market 1990 Harvard professor Jeffrey Sachs, 35 • Shock Therapy : • Privatization • Allowing buyers and sellers to control the prices in the market • Allowing foreign companies and private people to invest in Poland and export Polish products aboard • Limit government spending • Control over corruption

16. RESULTS (1990 to 1995) • Inflation: 1993 - 21.6%, 2010- 3,1% • Unemployment:6.0% • GDP: • 1991 -7,0% • 1992 2,6% • 1993 3,8% • 1994 5,2% • 1995 7,1% • Manageable Deficit • Property Rights • More investors, investment in human capital, • Technological knowledge ,Capital

17. POLAND TODAY

19. THANK YOU