Download PDF by John E. Jackson, Jacek Klich, Krystyna Poznanska: Political Economy of Poland's Transition

By John E. Jackson, Jacek Klich, Krystyna Poznanska

ISBN-10: 0521838959

ISBN-13: 9780521838955

This publication examines how new, locally owned organisations contributed to Poland's transition among 1990-1997.

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Sample text

Most of the models of the speed of transition contain an implicit political sector whose policies affect the success or failure of the transition. The government’s policies, in turn, are functions of the size and behavior of different worker groups. In the Aghion and Blanchard model (1994) the unemployment level stimulates demands for increased unemployment benefits. These benefits must be financed by taxes levied on the private 37 The Political Economy of Poland’s Transition sector, which reduces its growth, thus limiting the speed and possible success of the transition.

7 The government also reduced the budget subsidies and tax exemptions for state firms. These changes were part of the effort to reduce the government deficit as well as to force fiscal discipline on the enterprises. The immediate consequence of these policies was a substantial decline in measured economic activity. 2 shows four basic measures of macroeconomic performance for the period 1990–97, including the data on GDP shown in Fig. 1. GDP dropped about 14 percent between 1989 and 1991 but increased each year after that.

2 for 1993 and 1997, so from these three sources we can make some comparisons about entrepreneurial behavior. We also show the proportions for 1988 in East Germany and Poland to offer a picture of how things changed in these two countries. 4. The GDR lags the Czech Republic and Poland in developing entrepreneurs and self-employed individuals. In 1995 in the GDR only 6 percent of the nonfarm respondents reported being so employed. 1 percent for the Czech Republic and Poland respectively. By 1998 the Czech and Polish proportions are 13 and 19 percent.

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Political Economy of Poland's Transition by John E. Jackson, Jacek Klich, Krystyna Poznanska


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