PEST Analalysis on Poland - Essay Example

The transition has continued over the past decade till 1997 when the new constitution was formed. The state now has more transparency regarding the function of the state and the division of the power between the citizens and the state bodies (European Parliament, 2000). The September 1997 elections changed the government but did not have any adverse affects on the foreign policy towards NATO and the EU. The government worked with the aim of flanking the economic development and modernizing the State structure.

The coalition government released a series of ambitious reforms such as educational, pension and health systems and decentralization. The local government started reforming in 1999 which resulted in decentralization and reorganization of both the public authorities and finances. Each of the 16 regions is now responsible for their won development and implementation of policies. Each region therefore has an elected council which is responsible for specialized hospitals, economic development, colleges and universities and development of roads.

The health care system is run by insurance schemes and 7.5% income tax is devoted for the development of this sector. Eleven pension funds have also been created for the old-age pension system (European Parliament, 2000). However, during the period of Leszek Balcerowicz, the country was able to transform itself to a market economy. The country also became a full member of the EU in May 2004 and also joined NATO in 1999. The country gives full rights of protection to the citizens of the country and warmly welcomes MNCs to operate in their territories (European Parliament, 2000).

Between 1994 and 1997, the GDP rate grew by 6.3% but it slowed to 4.1% in 1999. Despite the economic issues in the country, the consumer confidence has appeared to be strikingly stable. The GDP per capita was still half of what it is in Portugal and Greece in 1999.