![]() ![]() Generally, per capita of Poland is significantly higher than the world average. For year 2013 GDP per capita of the United States is only 4 times higher than Polish, and GDP per capita of Great Britain only 3 times higher than Polish one. It can be seen in doubling of the GDP indicators and GDP per capita in Poland in the period between year 1989 and year 2014. However, it is a fact that after the transition to the free market principles the Polish economy entered a pathway of high growth after a few years. In Poland this policy has not been assessed unequivocally so far, first of all, because of high social costs. Wide opening of the economy outside and the quick transition to the principles of the free market in the economy were characterized as a shock therapy. ![]() Generally GDP per capita of Poland was 2.5 times lower than the world average. ![]() For an example according to the data of the World Bank in year 1990 GDP per capita of the United States was 14 times higher than Polish one, and GDP per capita of Great Britain almost 11 times higher. Poland like other countries of the region started from a very low economic development level comparing to the developed economies of Western Europe. The process was not devoid of mistakes and entailed high social costs. The 1990s were a period of building the free market economy. A characteristic feature for Poland which distinguishes it from other countries of that region is a strong development of the capital market - the Warsaw Stock Exchange. The Polish state undertook activities simultaneously to form structures and free market institutions. The first years of the transformation were exceptionally difficult what was reflected by the real decrease in the GDP per capita in the first years of the transformations. Economic problem effects also included an inflation phenomenon, piling up social tensions, or structural budget imbalance which limited possibilities of the government. Those changes resulted in unemployment which was a phenomenon unknown previously in the centrally planned communist economy. In Poland, the beginning of 90-ies was time of economic problems, bankruptcy of lots of unprofitable state enterprises and privatization of profitable ones. For a great number of the state enterprises, opening of the economy meant lots of problems with selling their products and a necessity of their restructuring, due to lack of competitiveness. In majority of CEE countries (CEE countries - Central-Eastern Europe countries) the state was an owner of lots of medium and big enterprises before year 1989, only small businesses were left in the private hands. Opening was not easy for domestic enterprises based on the centrally planned economy system. For majority of the countries of that region those changes also meant that their economies opened to foreign contacts, trade increase and a greater competition from the part of foreign enterprises. In the political scope, the countries of that region commenced to build democratic structures, whereas in the economic scope - to create the free market system. Those changes facilitated unification of Germany and began a process of enlargement of the European Union (EU). For lots of countries of that region it meant they became independent of the Soviet influences and beginning of political and economic transformations, in majority of cases achieved by peaceful means. Year 1989 was an important year in the history of Europe. ![]() Although after the World War II it was formally an independent state, it remained in the zone of Soviet influences, as other countries of that region. Poland is one of the biggest post-communist countries in Central Europe. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |