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1 Ekonomista

1 2007

1 Wilczynski W.

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Dilemmae of National Policies after 18 Years of Transformation

100%

Wilczynski W.

Ekonomista

2007

nr 6

757-770

The breakthrough of 1989 has opened the way to democracy and to market economy. However the controversies concerning the shape of the future economic system last till today. The principles of economic liberalism crashed with ideas. The hopes for quick improvement of living conditions after 40 years of poverty did not help to choose the most promising economic system. After a short but very efficient therapy (1990) the tendency to adopt a 'third way' solution and to build up a sort of 'welfare state' prevailed over liberal economic projects. In consequence the public debt increased during the last 15 years by over 300 billion PLN. The structure of fiscal expenditures prefers social allowances and does not help the economy to grow faster. The high share of fiscal expenditure in GDP reduces the rate of investment and does not favor the growth of employment. The Polish economy needs a more consistent constitutional policy in favor of liberal solutions stimulating economic activity. The privileges of highly inefficient state owned enterprises should be repealed. Their privatization should be consistently continued. To ensure a long time success of the Polish economy the centralization of decisions should be removed and democratic solutions in governing the country introduced.