ABSTRACT
Poland lies in a vulnerable geographical position on the north European plain and has a history of dismemberment. Poland was a key player in import-led growth during the 1970s. Significant economic reforms were implemented as early as 1956-57; enterprise decision-making powers were increased, and workers’ councils formed spontaneously and were legalized. Tax reliefs and subsidies have, in reality, been granted on a discretionary basis, showing the influence of relative bargaining strengths. The Polish Roman Catholic Church's 1982 plan to aid private agriculture with Western funds has had a chequered history. Since 1985 Poland has allowed joint equity ventures with Western companies, originally on the following conditions: a normal maximum 49 per cent foreign ownership; the head to be a Polish citizen; repatriated hard currency profits to be earned by exports; a proportion of foreign exchange earnings must be sold to the state; and the profit tax is to be reduced as the proportion of output exported rises.
