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General outlook on Polish economy

michal copy.jpgThe institutional and legal frameworks for the capitalist model of economy were introduced in Poland during the first couple of years of her political end economic transformation in 1990s


The most important reforms were:
– a restoration of private property, free entrepreneurship and starting the process of privatization of public companies
– a withdrawal of state from regulating prices, productions and the monopolizing of the monetary policy in favor of market forces, such as demand and supply, both in exchange of commodities and value of Polish currency
– starting the process of integration with the international capitalist framework. In this light, Poland joined OECD in 1991, cooperated with IMF and WB in regard of liberalizing of the economy. Furthermore, Poland was a co-founding member of WTO in 1995, participated in a few Free Trade Areas of regional scope. Finally, Poland associated with the European Community and fully acquired membership in the European Union in 2004.
For many years since the economic transformation, Poland struggled with high inflation and unemployment up to 21% in 1999/2000. Also, redefining the role of the state in the economy and narrowing its social policies led to growing sense of poverty and financial instability for a large part of the population. Hence, in mid 1990s, country was torn by social unrest and political crises that pushed many people to leave the country.
Currently, Polish economy is one of the fastest growing in the EU with GDP up to 6 %, relatively low inflation about 3%, raising wages and declining unemployment which presently is about 10%. Additionally, Poland notices growing tendency in absorbing foreign capital in form of foreign direct investments, as well as in form of investments in stock exchange market that records the largest capitalization in region.
However, the flowering of the Polish economy, like everything, has its own price. In this case, it means a huge lost of qualified labor and well educated people who after joining the EU decided to migrate to foreign countries, like Great Britain, Germany or Ireland. This process concerns especially young people who either look for better economic conditions to start their professional carriers or those who have to migrate temporarily in order to, for example, be able to purchase enormously expensive mortgages back in Poland, after a couple of years working in western countries.
In terms of economic institutional and legal settings, today’s Poland is certainly a capitalist country. However, the social transformation is still going on. As a Polish man, I feel that we are still learning how to fully realize all the potentials and take advantage of democracy and economic freedoms. The expectancy attitude, inherited after the fall of the former regime, still dominates over the bottom initiatives.

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