POLAND
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66
Poland
Unitary Semi-Presidential Representative Democratic Republic
The Pol ish state steadfastly pursued
a policy of economic liberalization
throughout the 1990’s with
positive results for economic
growth but negative results for
some sectors of the population.The
privatization of small and medium
state-owned companies and a liberal
law on establishing new firms
has encouraged the development of
the private business sector, which
has been the main drive for Poland's
economic growth.
The agricultural sector remains handicapped
by structural problems, surplus
labor, inefficient small farms, and a lack
of investment.
Restructuring and privatization of
"sensitive sectors" (e.g. coal), has also
been slow, but recent foreign investments
in energy and steel have begun to turn
the tide. Recent reforms in health care,
education, the pension system, and state
administration have resulted in larger
than expected fiscal pressures. Improving
this account deficit and tightening monetary
policy, with focus on inflation, are
priorities for the Polish government. Further
progress in public finance depends
mainly on the reduction of public sector
employment, and an overhaul of the tax
code to incorporate farmers, who currently
pay significantly lower taxes than
other people with similar income levels.