Poland Table of Contents
These rapidly introduced short-term policies quickly and fundamentally changed the workings of the Polish economy. Establishment of a full market system has other requirements, however, that take more time and are more problematic. The new Polish economy required a reorganized legal and institutional framework. Financial institutions, capital and labor markets, the taxation system, and contract laws required revision. Establishing systems for protection of consumers and of the environment was another priority. For these institutional changes, legislation had to be prepared, considered, and enacted by the government; then key personnel had to be trained to gradually bring the system to full efficiency. Because many flaws in new legislation or regulations were only detectable after implementation, policy making took on an unstable, trial-and- error quality. Reform and stabilization measures did not meet expectations, and the country's economic situation deteriorated in 1990-91.
Data as of October 1992