Poland - DEVELOPMENT OF THE CENTRALLY PLANNED ECONOMY

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A family harvesting potatoes on a private farm.
Courtesy Polish Information Agency, Warsaw

This development strategy brought about a specific pattern of economic growth in Poland. As in the other centralÍÍÍÍly planned economies, rates of growth depended on increases in the quantity of inputs rather than on improvements in productivity. Material production remained high as long as greater quantities of inputs were available. This pattern of growth priorities and the emerging industrial structure left no possibility of raising wages significantly. Wages had been reduced during the first industrialization drive of the early 1950s. For this reason, the Polish standard of living lagged behind that of Western Europe as the continent recovered from World War II. Already in the first postwar decade, awareness of this disparity began to cause social unrest, a situation that became a tradition during the next thirty-five years.

Data as of October 1992


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