| Overview |
Poland
has steadfastly pursued a policy of economic liberalization
throughout the 1990s and today stands out as a success story
among transition economies. Even so, much remains to be done.
The privatization of small and medium state-owned companies
and a liberal law on establishing new firms has encouraged
the development of the private business sector, but legal
and bureaucratic obstacles alongside persistent corruption
are hampering its further development. Poland's agricultural
sector remains handicapped by structural problems, surplus
labor, inefficient small farms, and lack of investment. Restructuring
and privatization of "sensitive sectors" (e.g.,
coal, steel, railroads, and energy), while recently initiated,
have stalled due to a lack of political will on the part of
the government. Structural reforms in health care, education,
the pension system, and state administration have resulted
in larger than expected fiscal pressures. Further progress
in public finance depends mainly on privatization of Poland's
remaining state sector, the reduction of state employment,
and an overhaul of the tax code to incorporate the growing
gray economy and farmers most of whom pay no tax. The government's
determination to enter the EU has shaped most aspects of its
economic policy and new legislation; in June 2003, 77% of
the voters approved membership, now scheduled for May 2004.
Improving Poland's export competitiveness and containing the
internal budget deficit are top priorities. Due to political
uncertainty, the zloty has recently depreciated in relation
to the euro and the dollar while currencies of the other euro-zone
aspirants have been appreciating. GDP per capita equals that
of the 3 Baltic states. |
| Industries |
machine building,
iron and steel, coal mining, chemicals, shipbuilding, food
processing, glass, beverages, textiles |
