Case 2

• Bedrijfseconomie
• WO
• Studiejaar 3

Case 2

Poland: Eastern Europe's Economic Miracle 

Summary of the Case

Joined the EU in 2004

Impressive economic growth during 2008-2009:

1. Market-based economic policies

2. Fiscally conservative

3. Contractionary monetary policy

Market-based economic policies

Poland shifted away from the centrally planned Soviet model

Implemented market-based economic policies -> Shock Therapy

• Opened it's market to international trade
  
• Liberalization of rices
• Elimination of subsidies
• Introduction of a new currency (the Zloty)

Fiscally conservative

Poland kept public debt in check -> investor confidence

When debt is kept in check:

• Positive signal to investors
• Poland manages it finances responsibly
• Keep inflation under control

No large outflow of funds in 2008-2009

Contractionary monetary policy

• Decrease the money supply
  
• Raise interest rates
• Reduce inflation

Poland was able to prevent the formation of an asset bubble

Challenges for Poland

1. Aging workforce

2. Changes in social transfer policies

3. Poland maintains a mixed economy

Aging workforce

As a result:

• Shortage of labour
• A decline in economic growth

Therefore Poland needs immigrants

Changes in social transfer policies

• Lowering the retirement age
•  Rasing social security payments
•  Younger workers will bear the burden

This can even exacerbate the existing labor shortage

Poland maintains a mixed economy

Privatization: transferring ownership of state-owned -> private sector

• Still significant state-owned businesses

       - Major banks, mining, energy etc. 

Private ownerships:

• More efficient management 
• Better financial performance
• Increased competition

Questions

1. Thinking about what we learned about national differences in the class, please briefly

explain how Poland is similar to or different from the Netherlands?

2. What are the potential losses for Poland to join the European Union? In your opinion, has

the Polish government efficiently managed such costs since its EU membership in 2004?

Why or why not? Please briefly explain how your conclusion can be justified.

3. In a more anti-globalization era nowadays, what economic headwinds might Poland face

going forward and what additional economic policies can the government pursue to keep

the economic growth sustainable? Please be practical but not overly general about the

potential economic policies.

Physical Issues

Anxiety

Elevated Blood Pressure

Headaches

Acne & Skin Issues

Debate argument

Which of the following is an issue associated with technology in EDU?

1. Too much technology
2. Expanding definition of literature
3. Not enough technology
4. Children do not like technology