POLAND Getting the balance right
ONE OF THE MOST ROBUST ECONOMIES IN EASTERN EUROPE, A MAJOR PRIVATIZATION DRIVE IN POLAND CREATED A VIBRANT PRIVATE SECTOR, BUT FURTHER PROGRESS DEPENDS ON PRIVATIZATION OF THE REMAINING STATE SECTOR. THE GOVERNMENT HAS INTRODUCED THE BELKA PLAN TO ACHIEVE THIS AND OTHER ECONOMIC GOALS, LEADING POLAND TO THE ULTIMATE AIM OF EU INTEGRATION

Solidarity was the driving force that gave Poland the historical distinction of being the first of the Eastern European countries to escape from beneath the oppressive Soviet shadow and push through radical reforms that transformed the country's economy into one of the most robust in the region.
And although the spirit of pride and patriotism that formed the foundation of the movement is alive and well in modern-day Poland, the independent union-turned-political-force "Solidarity" is no more than just a relic of the anti-Soviet struggle, having failed to win even one seat in the nation's parliament in last year's elections.

Following a series of economic blunders by the previous right-wing government, the coalition led by Prime Minister Leszek Miller's Democratic Left Alliance swept to victory on a pledge to put the Polish economy back on track and immediately began moves to get Poland into the European Union by the 2004 target date.
President Aleksander Kwasniewski, like Mr. Miller, has a strong commitment to EU membership, as do some 56% of Polish voters, according to the most recent polls.
Already a member of key alliances such as the Organization for Security and Cooperation in Europe, the North Atlantic Treaty Organization, the Central European Free Trade Agreement, the Council of Europe and the Organization for Economic Cooperation and Development, Poland and its 40 million citizens now have their sights set on being included in the next wave of EU members.

MAREK BELKA Deputy Prime Minister and Minister of Finance in Poland

To reach that goal, the government in late January approved the Belka Plan, named after the country’s popular finance minister, Marek Belka, who is also deputy prime minister. The four-year plan aims to fight unemployment, reduce the public deficit, develop infrastructure and get the Polish economy on track for rapid growth. The idea is to create a strong feeling of optimism among Polish citizens when they head to the polls in 2003 to vote in a referendum on EU integration.
"The Polish economy should be growing at 5% a year without any problem, which is what happened between 1993-98," notes Mr. Belka. "Even during the 1998 Russian crisis and Asian crisis the economy was growing fast. And then it stopped growing. A growth rate of 1% in 2001 for a catching-up economy like Poland’s means stagnation. And so it is an obvious obligation for a government to do something to stimulate the economy."
The EU has already acknowledged many of Poland’s efforts to meet membership criteria, including the government’s success to expand the private sector to provide more than two-thirds of the country’s economic activity.

According to Economy Minister Jacek Piechota, Poland is on course for economic growth in the second half of this year, with 3% growth predicted for next year and 5% the year after. "We also assume that joining the EU, and therefore having access to EU funds, will additionally boost growth. There is no turning back from the process of integration and globalization. Already about 70% of Polish trade is with EU countries. Last year, for the first time, we had a positive trade account with Germany, and right now the biggest foreign investor in Poland is France."

In order to raise the competitiveness of the Polish economy, the government’s economic program also includes the restructuring of key sectors of the economy. Mr. Piechota notes that the move to restructure is a clear intention of the government’s forward direction.
"The government wants Poland to be an active participant of international trade, to open the Polish market where Polish companies will compete with foreign competition. The government is not looking for instruments that would close the Polish market to foreign competitors," Mr. Piechota concludes.