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ABSTRACT
This article presents the main factors behind the developement of the Polish economy since the introduction of a market economy twenty years ago. First there is a decription of how the privatisation process actually took place. Then is followed by some information about the development of a financial market, i.e. the banking sector. At the end there is a summary of some of the main factors behind the huge inflow of foreign investments to Poland during this period.
Keywords: market economy, economic developement, transition economics, economic history
1. INTRODUCTION
Poland was one of the first post-socialist countries that changed from a central planning economy to a market economy. The new economic system was introduced on January 1, 1990.
The Polish economy like the economy for many other post-socialist countries was characterised by disequilibrium in almost every market. Most people had to use a great part of their time queuing up to buy what was necessary for their daily life.
The transformation of the Polish economy to a market economy led to a deeper recession than expected during the two first years of the transformation process. The GDP decreased by 18,3 per cent from an already low level. In the same period the level of unemployment reached more than 2 000 000 people (11,8 per cent), and the consumer prices increased by almost 1 070 per cent.
During the period 1990 - 2008 the average annual growth rate in the GDP has been 2,9 per cent. If we look at the period 1992 -2008, after the big recession due to the adoption of the new economic system, the GDP shows an average annual growth rate of 4,5 per cent.
As a whole the introduction of a market economy has made Poland to become one of the countries in Europe with the strongest economic growth over a period of almost two decades.
In this article I will give a description of the main factors behind the successful development of the Polish economy:
1. The privatisation process.
2. The development of the banking system.
3. Foreign direct investments.
2. THE PRIVATISATION PROCESS
A significant part of the introduction of a market economy was the privatisation of state owned enterprises.
Its core aim was to restructure...