Adam Jasser: A key feature of the Polish transformation is the absence of oligarchization
22.02.2024
Adam Jasser
What is the secret of the stability of the Polish economy for several decades, a Newssky correspondent asked Adam Yasser, deputy editor-in-chief of VisegrádInsight, which is a leading analytical platform in Central Europe.
The drivers of Poland’s economic success after 1989 were cultural, institutional, and policy-related. An often-underestimated reason was the widespread entrepreneurial drive of Polish society, which, liberated from the communist management of the economy, produced a lot of business activity. On the policy side, liberalization of trade, privatization, and foreign investment boosted economic growth.
— As we know, economic growth has continued in Poland since the beginning of the 90s. Is it true?
The crucial factor was the establishment of credible institutions that are essential in a well-functioning market economy — the independent central bank, anti-monopoly authority, financial supervision, and the stock market. While the initial 20 years were often turbulent politically and accompanied by high unemployment and income disparities, Poland experienced uninterrupted growth since 1990, even during periods of global slowdown or recession.
— What changes occurred after Poland became a member of the European Union?
A major boost in the confidence and credibility of the Polish economy was the determined drive to join the EU and consequently adopt EU rules and regulations. Foreign investment accelerated spectacularly in the 2000s, especially after membership in 2004. A key feature of the Polish transformation was the absence of oligarchization, understood as state capture by powerful business interests and enforcement of a level playing field by the independent competition authority and other regulators. A flexible, well-educated labor force also became a huge asset as foreign investment poured in. Finally, free, and independent media as well as vibrant civil society organizations provided scrutiny and accountability of the government.
Maryna Kovalchuk, Newssky’s correspondent (Slovakia, Czech Republic, Hungary, Poland), head of the V5 Media project, and deputy editor-in-chief, contributed.
