slide1 l.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
LESSONS FROM TRANSFORMATION OF THE POLISH E CONOMY PowerPoint Presentation
Download Presentation
LESSONS FROM TRANSFORMATION OF THE POLISH E CONOMY

Loading in 2 Seconds...

play fullscreen
1 / 13
crevan

LESSONS FROM TRANSFORMATION OF THE POLISH E CONOMY - PowerPoint PPT Presentation

109 Views
Download Presentation
LESSONS FROM TRANSFORMATION OF THE POLISH E CONOMY
An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Ryszard Rapacki Head and Professor, Ph.D. Department of Economics, Warsaw School of Economics LESSONS FROM TRANSFORMATION OF THE POLISH ECONOMY Presentation prepared for the EDAMBA meeting, Warsaw, 7 September 2009

  2. Contents I Introduction II Key outcomes of systemic transformation – anempirical picture III Strengths and weaknesses of Polish transformation IV Lessons from the Polish transition

  3. Empirical picture

  4. Strengths and weaknesses

  5. Lessons from the Polish transition Key success factors • • Shock therapy + strong personality of the leader (Balcerowicz). • Social support including the 'Solidarity factor'. • • Shock therapy vs. gradualism. In Poland – deep macroeconomic imbalances called for a radical approach. In general terms, the choice of transformation strategy should take into account the initial conditions including the command economy legacy. • • Sequencing of the reforms – depends on initial conditions. However, complexity is required to create the ‘critical mass’ of the reforms and make them irreversible. If, like in Poland, deep macroeconomic disequilibrium is pervasive, the shock therapy is advisable while institutional reforms make take more evolutionary course (nevertheless, they should be implemented in full complexity to ensure positive synergy and necessary complementarities).

  6. • The role of the ‘EU factor’ or “external anchor” – crucial at later stages of transition to the market. • Relative openness of the country since 1956 – exposure to Western culture and ideas. • Gierek’s decision in 1970 to open the borders - primitive accumulation of capital (including human) - explosion of small private entrepreneurship since 1989. • Relevance of historical traditions (Octavio Paz and his “Laberinto de la soledad”). Hence, the design of transformation strategy and accompanying economic policies should be compatible with national ‘identity’. • Consistent economic policy after 1989 despite changing governments. • Selected pre-war institutions (e.g. Commercial Code) on place. • Exchange rate regime: ‘fixers’ vs. ‘floaters’.