Sylwia Martynowicz-

Cavalcant

THE ROAD TO FREEDOM: THE REAL STORY OF SURVIVING COMMUNISM

ECONOMIC CONCEPTS

ECONOMIC GROWTH SCARCITY OPPORTUNITY COST STANDARD OF LIVING (THEN AND NOW) GDP SHOCK THERAPHY UNEMPLOYMENT INTERVENTIONISM CENTRAL PLANNING MARKET VS. FREE MARKET

MY FAMILY'S STORY

Over 10,000 people were removed from Poland, and about the same died while fighting for freedom

THE MARKET DURING COMMUNISM IN POLAND

SHORTAGE OF FOOD

BLACK MARKET

FREE MARKET VS. CENTRAL PLANNING

MAIN PROBLEMS IN THE COMMUNISTIC SYSTEM IN POLAND

• Shortage of food

• Prices are created by Government not buyers and seller

• Lack of incentives/ very low productiveness (people got paid the same amount, whether or not they were working or not - “sitting or laying down”)

• People can’t talk about democracy (academia, work places because of KGB)

• People couldn't’t travel outside of Poland (no comparison)

SITUATION IN POLAND – CENTAL PLANNING

• High Inflation

• Deficit ($24 millions)

• Unemployment rate: 10.8%, very low wages

• Lack of truthful information in media/ media controlled by the government

• Gray buildings /no property rights/ lack incentives to take care of your property

• “Police Hours”

MAIN PROBLEMS IN THE COMMUNISTIC SYSTEM IN POLAND

• Much corruption in Presidential Elections (in other words, the result was already known)

• Obligatory Holidays (great show) Teachers Day, Minor Day, Women Day to show you how your government is great and to promote the communistic system

SOLIDARITY INDEPENDENT SELF-GOVERNING TRADE UNION "SOLIDARITY" 1980

Lech Walesa “Without her visit there wouldn’t be the victory”

Margaret Thatcher meets Walesa in 1988

1982

ELECTRICIAN

FIRST STRIKES IN COAL MINES - SEPTEMBER 1980

By the end of December 1980 there were about 700 000 people protesting, Solidarity was almost in every city

STRIKES AND ACTION OF THE POLICE• First Strikes- coal miners

• Later: colleges, universities

• People on strike in their workplaces

• Police can’t control the situation –they made them political prisoners

WHAT DO THEY ASK FOR?

Access to media,Freedom of speech,Stop arresting Saturdays as a day off from work

1989 “ROUND TABLE CONFERENCE”

ROUND TABLE POSTULATESAble to have SOLIDARITY in each work placeRegister Solidarity as a legal UnionFree media,Saturdays offLess control in daily life

LECH WALESA –PRESIDENT • December 22nd, 1990

JEFFREY SACHS –TRANSITION TO THE FREE MARKET 1990Harvard professor Jeffrey Sachs, 35

• Shock Therapy :

• Privatization

• Allowing buyers and sellers to control the prices in the market

• Allowing foreign companies and private people to invest in Poland and export Polish products aboard

• Limit government spending

• Control over corruption

RESULTS (1990 TO 1995)• Inflation: 1993 - 21.6%, 2010- 3,1%

• Unemployment: 6.0%

• GDP:

• 1991 -7,0%

• 1992 2,6%

• 1993 3,8%

• 1994 5,2%

• 1995 7,1%

• Manageable Deficit

• Property Rights

• More investors, investment in human capital,

• Technological knowledge ,Capital

POLAND TODAY

THANK YOU