Poland, which, between 1772 and 1795, was partitioned by Russia, Prussia, and Austria amongst themselves, regained its independence only in 1918. During World War II, it was overrun by Germany and the Soviet Union. It became a Soviet satellite state following the war, but its government was comparatively tolerant and progressive.
Labor turmoil in 1980 led to the formation of the independent trade union "Solidarity" which, over time, became a political force, and by 1990, swept parliamentary elections and the presidency.
A "shock therapy" program during the early 1990s enabled the country to transform its economy into one of the most robust in Central Europe. However, Poland currently suffers low GDP growth and high unemployment.
Solidarity suffered a major defeat in the 2001 parliamentary elections when it failed to elect a single deputy to the lower house of Parliament. The new leaders of the Solidarity Trade Union subsequently pledged to reduce the Trade Union's political role.
Poland joined NATO in 1999 and the European Union in 2004.
GDP per capita roughly equals that of the Baltic states. Poland pursued a policy of economic liberalization throughout the 1990s and today stands out as a success story among transition economies. GDP per capita roughly equals that of the three Baltic States.
Even so, much remains to be done, especially in bringing down unemployment. Restructuring and privatization of "sensitive sectors" (e.g., coal, steel, railroads, and energy), while recently initiated, have stalled. The privatization of small and medium-sized state-owned companies and a liberal law on establishing new firms has encouraged the development of the private business sector. However, legal and bureaucratic obstacles, as well as persistent corruption, are hampering its further development.
Poland's agricultural sector remains handicapped by surplus labor, inefficient small farms, and lack of investment. 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 reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code to incorporate the growing gray economy and farmers, most of whom pay no tax. The Government has introduced a package of social and administrative spending cuts to reduce public spending by about $17 billion through 2007. Additional reductions are under discussion in the legislature but could be trumped by election-year politics in 2005. Poland joined the EU in May 2004, and surging exports to the EU contributed to Poland's strong growth in 2004, though its competitiveness could be threatened by the zloty's appreciation. Poland stands to benefit from nearly $13.5 billion in EU funds, available through 2006. Farmers have already begun to reap the rewards of membership via higher food prices and EU agricultural subsidies.
Facts and Figures
National Name
:
Republic of Poland / Poland /Polska
Size
:
312,685 sq km
Population
:
38, 635,144
Capital
:
Warsaw
Largest Cities
:
Gdansk, Poznan, Lodz, Krakaw
Main Religion
:
Roman Catholic
Monetary Unit
:
Zloty
Climate
:
Temperate
Industries
Machine building, iron and steel, coal mining, chemicals, shipbuilding, food processing, glass, beverages, textiles.
Telecommunications Infrastructure
Poland's underdeveloped and outmoded system is in the process of being overhauled. Partial privatization of the state-owned telephone monopoly is underway. The long waiting list for main line telephone service has resulted in a boom in mobile cellular telephone use.