WEH Kanton

WEH Kanton © 2008
Sat, 22 Nov 2008 19:53:34 +0800
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Economy

The Solidarity emblem

The first non-communist prime minister - Tadeusz Mazowiecki - 1989

Since the turning point of 1989 Poland has undergone great political, social and economic changes. The introduction of democratic structures, the move from the command economy to the free market, and wide-ranging systemic reforms are all achievements of which Poles can be proud.

The most important achievement of the start of the 1990s was the implementation of the so-called ‘Balcerowicz Plan’, its author being the then Finance Minister. The outcome of introducing this reform programme was liberalisation of domestic prices, rising imports,a tightening of enterprises’ pay structures and financial policy,the introduction of interest rates above the rate of inflation, the stabilisation of the zloty against the dollar and the introduction of zloty exchangeability. As a consequence the Polish economy stabilised and opened up to the world. The banking system and credit policy were also reformed. Of the systemic reforms the start of the process of ownership change, making enterprises independent and building domestic competition were of enormous significance. A capital and labour market were also created in Poland. Consistently conducted economic policy led Poland in a relatively short period of time into the group of the most dynamically developing economies in Europe.

The fundamental priority of successive governments remains strong economic growth. This is not only a condition for making Poles’ lives better, but equally fundamental for realising strategic goals such as EU membership. The reforms in the period of transformation and subsequent hard and consistent monetary policy have given the Polish economy solid foundations: a strong currency and continuously falling inflation, currently at about 4%. Systemic reforms and the responsible policies of the Leszek Miller government, plus improved competitiveness in the global economy, mean that by the second half of 2002 Poland is expected to return to the path of rapid economic growth.

	• Custom Duties and Taxes, Norms and Certificates (2976)
	Since the start of the 1990s the defective tax system that had been in place until then was replaced by a new system that was closer to those operating in EU countries. In accordance with the 1997 Constitution of the Republic of Poland changes in tax regulations and other levies of public money can be made only by changes in legislation. Poland’s current tax system is made up of 11 taxes, amongst which the following are worth mentioning: income tax on physical persons, income tax on legal persons, inheritance tax and tax on donations, tax on civil-legal activities, on goods and services (VAT) and excise tax.
	• Economic Policy (2748)
	The key to the country’s economic development in the plan is improving infrastructure. Investment in the communications system and road, rail and air networks are designed to ensure an improvement in the conditions in which enterprises function and for the creation of new jobs.
	• Foreign Investment (2526)
	Before 1989 few foreign companies operated in Poland. Today 91% of capital incoming to the country comes from OECD countries (more than $41 billion). According to the State Agency for Foreign Investment (PAIZ), 855 companies from 35 different countries had started economic activity in Poland by the end of 2000.
	• International Trade (2565)
	The Treaty of Association between the Republic of Poland and the EU (European Treaty) created the formal foundations for developing economic, political, scientific and cultural ties between Poland and European Community as well as its member states. In 2001, after 8 years of part of the European Treaty’s trade section being in place, the 15 EU member states make up almost two thirds of Poland’s foreign trade. Together with the rise in the EU’s share in Poland’s imports, Polish exports to the EU grew equally significantly.
	• Market (2907)
	Poland’s IT market is developing very rapidly. The largest global computer companies have their own representatives in Poland – from IBM through Oracle to Microsoft. All play an active role in the development of the Polish IT market, organising, amongst other things, conferences on the direction of the development of the Polish Internet and B2B (business-to-business).
	• Scientific and Research Cooperation (2523)
	In 2000 4.8 billion zlotys (more than 1.31 billion euro), or almost 2% of the state budget, was spent on research and development in Poland. 63.4% of this came from budgetary sources, the rest from the private sector, branches of the Polish Academy of Science (PAN) and international organisations. This indicator is higher than in EU countries, where an average of 1.5% of total budget expenditures are earmarked for research and development.