Drivers of Poland’s Successful Transition

Abstract In this chapter I explain the proximate drivers of Poland’s economic success since 1989. I divide the transition into the initial period of ‘shock therapy’ during 1989 1991 and then the second period of economic recovery after 1992. I discuss the ongoing debate on the pros and cons of ‘shock therapy’ versus a ‘gradual’ approach to post-communist transition. I use the example of Poland’s ‘shock therapy’ to analyze both approaches. I conclude that that the differences in actual policies were smaller than implied by the rhetoric of both sides of the debate. I then explain why Poland was more successful than other transition economies, and discuss whether Poland could have grown even faster. I argue that on the whole the Polish transition was almost ‘as good as it gets’. I draw the lessons learned and policy insights from Poland’s transition for other countries.