Poland, as well as it's fellow post-communist countries, face an arduous
task in re-inventing their economies to match the dominant Western style
currently dominating the world. The difficulties lie in the areas of ideology,
structural needs (massive changes required), world recession(current) and debt
Why did the economics of the communist bloc fail so miserably? Why has
every single socialist, fascist, communist and other non-democratic country had
to implement economic change in order to survive? This is due to some inherent
problems in the command economy idea.
Monopolies (in a command economy) tend to produce inefficiency, low
quality goods, lack of innovation and technological improvement.
Command economies tend to focus on growth rather than strength leading
to larger production and an evan. worse use of available resources.
The 1980's marked a change in world markets meant that the communist
economies were faced with four challenges that would, if met, have meant the
continuation of the USSR.
Resource saving miniaturization requiring high technology and skill were
demanded (command economies have neither), Flexible production to meet a variety
of needs (command economies have large factories to keep production high - they,
thus, did not have the funds or ability to affect the necessary changes to their
means of production), the "information age" meant that the communist bloc had to
deny the new prevalent types of technology, which would spread Western ideas,
and thus they fell behind), and "software" became essential to the growth of
industry (the "hardware" focus of the East could not absorb this new approach.
As well, the changes are being attempted in a deep period of economic
crisis that make an already difficult process even more difficult.
Changing the Economy
Systematic transformation requires institutional innovations, the
internal liberalization of the economy, the external liberalization and the
adjustment of the real economy as well as the monetary system.
Not only does there need to be a different institutional framework for a
market economy but one has to remove most of the inherited structures and to
change the typical behavioral patterns in industr...
... middle of paper ...
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