Running head: ECONOMY SITUATION IN POLAND BEFORE AND AFTER EU FUNDING Economy situation in Poland before and after EU funding Insert Name Insert Grade Course Insert 31 March 2011 Outline Introduction Literature review Research methods Conclusion Works cited Economy situation in Poland before and after EU funding Introduction Poland’s history is filled with transformations as well as many changes…
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It is from these debates that Poland has reinvented itself, thus attaining the title of a modern European state that possesses a liberal political system that is democratic and sustainable market Economy (Cox and Myant 1). According to Bache, Poland has a record of the largest entrant to the European Union in the year 2004. In 1989 after the era of communist had ended, Poland undertook a territorial restructuring period. The membership position held by Poland in the European Union has helped the Poles to restructure as well as uphold their economy (Bache 73). One of the greatest success story attributed to the post-communist transformation in Poland is the high rate at which the small as well as the private companies are emerging over the last 20 years. 69% of employment as well as 60% of turnover are among the benefits of the small and medium sized enterprise to the Polish economy. The entry and the exit levels of enterprises, whose large percentage is the small ones, are higher in Poland than the average EU (Organisation for Economic Co-operation and Development 11). Literature Review Poland’s economy before the EU funding Europa publications Limited indicate that before its incorporation into the European Union, Poland had at the time had a population of about 40 million people. In addition to this, Poland was relatively poor especially in terms of aggregate, as their income per head was a third of the EU’s average. Poland provided incentives to non European members e.g. the special tax concession provided to Korean car manufacturers (Europa publications Limited 3). The Polish government had established an agency prior to joining the EU in the year 2000. The aim of this agency, which was known as the Polish Agency for Enterprise Development (PARP), was to offer active support to entrepreneurs in Poland thus improving the country’s economy. The main function of the PARP was to manage the funds of entrepreneurship that were granted by the state. This agency upon incorporation to the European Union also mandated was with the task of managing funds granted by the EU for entrepreneurship (Organisation for Economic Co-operation and Development 131). In the year 1997, Poland had already experienced continuous economic growth that lasted for five years. This was attributed to the reduction of industrial output during the transition period. Crucial steps had been undertaken to ensure that inflationary pressures experienced in 1990s were eliminated. In addition to this efforts had been made in redirecting Poland’s exports away from old communist bloc and towards the EU markets (Europa publications Limited 62). In the late 1970s, Poland had suffered an economic crisis. Its external finances indicated vast deficits of payment as its domestic economy fell in disarray. Poland had to find a way of arresting the situation before it could get out of hand as the interests were accumulating. The Authorities then decided on the modernization and investment strategy as the way forward (Marer et al 3). Dramatic changes in Poland have always caught the attention of the world. In 1989 the government in power transformed the existing centrally planned economy into a free market. In 1990 the price controls in majority of the products were scraped off. These were some of the
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