Economic transition in Poland: the relevance of the Latin-American experience
Shock therapy was used in Poland causing many problems. It is true that four
years later the economy started to grow again, but the transition to the market economy
took place with high unemployment rates and increasing social inequalities. Poland’s liberalization
and economic stabilization program has a lot to do with similar programs experienced
in Latin America and could be useful to Poland. In the short term, costs are similar
to those of the Latin American experience. Even though stabilization was partially achieved,
the social costs that took off were large, making the continuation of economic reform politically
indigestible in the democratic context.
JEL Classification: P21; P52.
Keywords: Transitional economies liberalization stabilization