Transition in Poland: Economic Success and Social Failure?

Purpose - The paper seeks to focus on the results of Poland's transition from central planning to market economy and from communist regime to democracy. It attempts to answer the question of fulfilling the transition's aims and expectations, identifying main successes and failures observed in Poland today. Design/methodology/approach - The paper is based on the literature review of the socialistic state's and transition process's main characteristics and a set of data and research provided by institutions and centres illustrating the current stage of economic and social development in Poland. The analysis uses statistical data comparing the pre-transition period with the economic and social indices for 2006. Findings - The evidence collected during 18 years of transition process and data on the current situation provide a unique opportunity to test whether the formulated goals were achieved. The analysis reveals substantial improvement in all economic indicators referring to macroeconomic stability, inflation and growth rates and private sector activity, while the social conditions related to unemployment and recent emigration to Western Europe, income distribution, homelessness and poverty ratios remain disappointing. Research limitations/implications - The paper presents the current stage of Polish society and economy, not discussing the problems of other CEEC countries that underwent a transition process in 1989 (Czech Republic, Slovakia, Hungary). Moreover, the economic and social development remains highly dynamic, particularly due to substantial EU funds currently invested in Poland. Since the analysis is based on data 1989-2006 one may expect changes in Poland's society and economy in the very near future. Practical implications - The paper points up the difficulty of formulating the agenda of the transition process which would assure balancing of the economic as well as social goals. Moreover, it suggests that institutions and systems building seems to be easier, while transition sets significant challenges for society and its ability to adjust to new conditions. Originality/value - The analysis sheds light on the discussion of the state's orientation towards social responsibility on a macro scale, since the impact and strategies of state formulate patterns and a regulatory framework for the corporate legal environment (e.g. working conditions), rules of behaviour and business practice.