Economy of Poland

Time has past, 45 years later after the communist ruling, the polish economy changed. It completely unsuited into an integration into a capitalist world market. The inflation rate of the Poland economy was constantly rising, the wages were low and the economy led to shops to have the most basic food. The communist government in the elections were a failure on June 4th 1989. It made it clear that the previous authority wasn't reasonable anymore. In September 1989 a commission of experts was formed under president Leszek Balcerowicz. The commission effected the president to create a plan of extensive reforms that could help change and help improve Poland's economy from 0 to an ineffective central planning to capitalism. The program was presented on public television on October 6th. The acts that were done are the ones that were listed below:

• Act on Financial Economy Within State-owned Companies. It allowed for state-owned businesses to declare bankruptcy.
• Act on Banking Law. Forbid financing the state budget deficit by the national central bank and forbade the issue of new currency.
• Act on Credits. It abolished the preferential laws on credits for state-owned companies and tied interest rates to inflation.
• Act on Taxation of Excessive Wage Rise. Introduced the so-called popiwek tax limiting the wage increase in state-owned companies in order to limit hyperinflation.
• Act on New Rules of Taxation. Introduced common taxation for all companies and abolishing special taxes that could previously have been applied to private companies through means of administrative decision.
• Act on Economic Activity of Foreign Investors. Allows foreign companies and private people to invest in Poland and export their profits abroad.
• Act on Foreign Currencies. Introduced internal exchangeability of the złoty and abolishing the state monopoly in international trade.
• Act on Customs Law. Created a uniform customs rate for all companies.
• Act on Employment. Regulated the duties of unemployment agencies.
• Act on Special Circumstances Under Which a Worker Could be Laid Off. Protected the workers of state firms from being fired in large numbers and guaranteeing unemployment grants and severance pay.