Polish Economists Lag Behind Changes in the Economy

The time and costs involved in establishing a capitalist democracy in former communist economies have not been adequately addressed by economists, resulting in a sense of frustration for people living in such economies who have been told by the experts that the transition should be painless. Polish people were under the impression in 1990 that, once fiscal policy allowed for it, the Polish economy would boom under new leadership. No one addressed the fact that socialist policies implemented in the 1970s and 1980s had allowed industries to run at a loss, and many of the industries could not make money under any circumstances. Other reasons for Poland's economic crisis, and possible solutions, are discussed.