Privatisation of the polish economy

Problems of transition

Bibliographic Data

ID11601698
AuthorsKazimierz Z Poznański (University of Washington, corresponding author)
Year1992
Volume44
Issue4
Pages641-664
Publication date1992-01-01
Open AccessNo
TypeARTICLE
VenueSoviet Studies (JOURNAL)
Journal identifiersISSN: 0038-5859
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/09668139208412036
OpenAlexW1975025752
LanguageEN
Citations received2
References cited26

BECAUSE POLAND HAS BEEN IN THE FOREFRONT of the major privatisation1 efforts undertaken thus far in Eastern Europe and the former Soviet Union (see Roucek, 1988; Schroeder, 1988), its experience is of particular value for studying the region's transition to a capitalist economy. The following analysis of Poland's privatisation efforts reveals that although the ownership reform seems very much a historical breakthrough, the past still weighs heavily on the present. Importantly, despite vigorous efforts by the post-communist government to privatise the economy, an overwhelming majority of capital assets remains state-owned, though under drastically curtailed central control. While aimed at creating efficient capital markets, the privatisation process also leads to broad reallocation of wealth and power. There are many interest groups which have been clashing over the final type of privatisation to be implemented. These inter-group conflicts have not yet been resolved, though there are some early indications that many of the privatised enterprises could be acquired through leveraged buyouts, i.e. by the employees. Another early emerging trend has been the formation of private spin-off companies by individuals who enjoy political influence within the state system. Post-communist privatisation has contributed to the further dissolution of property rights. For instance, there are serious doubts as to whether leveraged buyouts will offer a solution to the 'weak' ownership structure inherited from the communist past, for they appear to represent just another form of collectivism. For the bulk of enterprises which continue to be owned by the state, the privatisation programme has resulted, however, in even greater uncertainty over who is in control of assets. Indeed, it is very likely that this 'property vacuum' has undermined incentives for the effective use of capital, thus contributing to the post-1990 collapse of Poland's industrial output (Poznanski, 1991)

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