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POLAND

POLAND. The Third Republic. SOLIDARITY . THE ROUND TABLE TALKS AND THE DEMISE OF THE COMMUNIST GOVERNMENT. PRESIDENT . 1 ST non communist government formed by Tadeusz Mazowiecki Lech Walesa – president 1990-1995 Aleksander Kwasniewski – President 1995-present.

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POLAND

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  1. POLAND The Third Republic

  2. SOLIDARITY THE ROUND TABLE TALKS AND THE DEMISE OF THE COMMUNIST GOVERNMENT

  3. PRESIDENT • 1ST non communist government formed by Tadeusz Mazowiecki • Lech Walesa – president 1990-1995 • Aleksander Kwasniewski – President 1995-present

  4. 100 Senators elected in the provinces by secret ballot for the term of the Sejm, in free, general, direct elections.

  5. The Republic of Poland: Marketization and Stabilization

  6. Geopolitical Perspectives • The “Heart of Europe” • 39 million people • 121,000 sq miles of territory {Land area (sq. kms)313,000} • Bridge between East & West

  7. Transition Choices • Slow Transition – mitigate pain in the short run – take longer to establish new order of living • Fast Transition “Shock Therapy” – bring about new order quicker – great risk to elected governments

  8. Stages of Transition • First Stage – “Handel” = buying low abroad selling high at home. • Modest investment • Achievement motive • Need to reform the safety net

  9. Second Stage of Transition – “Takeoff” • Political stability • Admitting Poland into NATO(1999) & EU • Legal environment • Sound monetary & fiscal policies • Budget deficit • Improve education • Mechanisms of enforcement

  10. Key Points • Privatization • Restructuring Debt • Reforming the Banking system • Creating Capital Markets • Direct foreign investment • Unemployment • The Farm economy

  11. Third Stage – “Competitive Parity” “When communism fell, you had companies with 100 employees, 80 of whom did nothing”

  12. Foreign Investors • General Motors • Ford • South Korea / Daewoo Corporation • ABB Asea Brown Boveri Ltd

  13. State owned enterprise • KGHM Polska Miedz – state owned mine which holds one-fourth of the worlds copper market • Lot – Polish national airline carrier

  14. Imports / Exports Trade Balances With All Trading Partners (US $ billion) 199319941995 1996 Imports -$17.087 -$18.930 -$26.687 -$37.000 Exports 13.58217.12123.46324.000 Trade Balance -$ 3.505 -$ 1.809 -$3.224 -$13.000 (Source: The Europa World Yearbook, 1997; Business Opportunities in Poland, 1997)

  15. Trade Balances with the U.S.(US $ million) 1991 19921993199419951996 %Increase (1991=100) Imports $456 $630 $913 $622 $776 $968 212.3 Exports 357 374 455651 664 624174.8 Trade Balance -$99 -$256 -$458 +$29 -$112 -$344 * (Source: Business Opportunities in Poland, 1977, p. 24)

  16. World Bank Involvement 44 Lending Projects & Operations supported by the World Bank in Poland from 1990 to the Present

  17. International Monetary Fund Involvement “Shock Therapy was approved and given financial support by the IMF in 1989. From that point on the IMF along with the World Bank, has been involved with Poland’s development.

  18. CONCLUSION EUROPEAN UNION? … And other burning questions….

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