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POLAND. The Third Republic. SOLIDARITY . THE ROUND TABLE TALKS AND THE DEMISE OF THE COMMUNIST GOVERNMENT. PRESIDENT . 1 ST non communist government formed by Tadeusz Mazowiecki Lech Walesa – president 1990-1995 Aleksander Kwasniewski – President 1995-present.

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slide1

POLAND

The Third Republic

solidarity

SOLIDARITY

THE ROUND TABLE TALKS AND THE DEMISE OF THE COMMUNIST GOVERNMENT

president
PRESIDENT
  • 1ST non communist government formed by Tadeusz Mazowiecki
  • Lech Walesa – president 1990-1995
  • Aleksander Kwasniewski – President 1995-present
slide6

100 Senators elected in the provinces by secret ballot for the term of the Sejm, in free, general, direct elections.

slide7

The Republic of Poland:

Marketization and Stabilization

geopolitical perspectives
Geopolitical Perspectives
  • The “Heart of Europe”
  • 39 million people
  • 121,000 sq miles of territory

{Land area (sq. kms)313,000}

  • Bridge between East & West
transition choices
Transition Choices
  • Slow Transition – mitigate pain in the short run – take longer to establish new order of living
  • Fast Transition “Shock Therapy” – bring about new order quicker – great risk to elected governments
stages of transition
Stages of Transition
  • First Stage – “Handel” = buying low abroad selling high at home.
  • Modest investment
  • Achievement motive
  • Need to reform the safety net
second stage of transition takeoff
Second Stage of Transition – “Takeoff”
  • Political stability
  • Admitting Poland into NATO(1999) & EU
  • Legal environment
  • Sound monetary & fiscal policies
  • Budget deficit
  • Improve education
  • Mechanisms of enforcement
key points
Key Points
  • Privatization
  • Restructuring Debt
  • Reforming the Banking system
  • Creating Capital Markets
  • Direct foreign investment
  • Unemployment
  • The Farm economy
third stage competitive parity
Third Stage – “Competitive Parity”

“When communism fell, you had companies with 100 employees, 80 of whom did nothing”

foreign investors
Foreign Investors
  • General Motors
  • Ford
  • South Korea / Daewoo Corporation
  • ABB Asea Brown Boveri Ltd
state owned enterprise
State owned enterprise
  • KGHM Polska Miedz – state owned mine which holds one-fourth of the worlds copper market
  • Lot – Polish national airline carrier
imports exports

Imports / Exports

Trade Balances With All Trading Partners

(US $ billion)

199319941995 1996

Imports -$17.087 -$18.930 -$26.687 -$37.000

Exports 13.58217.12123.46324.000

Trade Balance -$ 3.505 -$ 1.809 -$3.224 -$13.000

(Source: The Europa World Yearbook, 1997; Business Opportunities in Poland, 1997)

trade balances with the u s us million

Trade Balances with the U.S.(US $ million)

1991 19921993199419951996 %Increase

(1991=100)

Imports $456 $630 $913 $622 $776 $968 212.3

Exports 357 374 455651 664 624174.8

Trade Balance -$99 -$256 -$458 +$29 -$112 -$344 *

(Source: Business Opportunities in Poland, 1977, p. 24)

world bank involvement

World Bank Involvement

44 Lending Projects & Operations supported by the World Bank in Poland from 1990 to the Present

international monetary fund involvement
International Monetary Fund Involvement

“Shock Therapy was approved and given financial support by the IMF in 1989. From that point on the IMF along with the World Bank, has been involved with Poland’s development.

conclusion
CONCLUSION

EUROPEAN UNION? … And other burning questions….