Poland's transition to a market economy: Struggle for a competitive advantage

• Main Author: Lewandowski, Dariusz
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2174
• Institution: De La Salle University

This study on Economic Development has been conducted for ex-socialist nation, Poland. Polands Transition to a Market Economy Struggle for a Competitive Advantage, shows the course of evolution of Polish economy, from a socialist system into a market oriented economy of neoclassical theory. It presents a process of analysis using the Michael Poters DIAMOND, to arrive with the focal points for the purpose of making improvements in the Polis economy and transforming the former socialist into a competitive nation. Poland is country of almost 40 million people situated in the heart of Central Europe. The country rejected communism in 1989. With the collapse of economic system of central planning and control, Poland started making first steps toward a market economy. Stabilization and liberalization took place at fast pace. Polands economic reform which started in 1990, has been a radical, shock-style restructuring, a comprehensive process designed to replace the command economy with a market economy. After 7 years of transformation process, a macroeconomic improvements have been a achieved. However, the process of constructing a market economic does not rely solely on the macroeconomic changes. A success in building a market economy depends on the national productivity which leads to a competitive advantage and can only take place in the context of industries and business within the nation. Polish competitive advantage is in the phase of infancy. The country has not yet established its most competitive industries and is preoccupied with the structural changes. This paper is thus focusing on factors that contribute to the overall competitiveness of Poland as a nation. The first deals with the characteristics of the socialist economy in Poland, an environment that disregards business competition the second part examines the status of the Polish economy before democratic changes, particularly analysis of a limited market-oriented reforms performed by the socialist government the third part shows the process of radical economic reforms up to 1997 employed by new government the forth part deals with the analysis of competitive advantage of Poland using Porters framework and the last part concentrates on focal points and recommendations for Poland to become a competitive nation. It is pointed out, that Poland had made remarkable macroeconomic changes, however the primary concerns about making the nation competitive remains. In creating a strategy for the nations competitiveness, the environment for investment and trade is essential. Thus, the following factors should be considered in order to improve the competitive advantage of Poland.