The Road to freedom: The real story of surviving communism
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Transcript of The Road to freedom: The real story of surviving communism
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Sylwia Martynowicz-
Cavalcant
THE ROAD TO FREEDOM: THE REAL STORY OF SURVIVING COMMUNISM
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ECONOMIC CONCEPTS
ECONOMIC GROWTH SCARCITY OPPORTUNITY COST STANDARD OF LIVING (THEN AND NOW) GDP SHOCK THERAPHY UNEMPLOYMENT INTERVENTIONISM CENTRAL PLANNING MARKET VS. FREE MARKET
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MY FAMILY'S STORY
Over 10,000 people were removed from Poland, and about the same died while fighting for freedom
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THE MARKET DURING COMMUNISM IN POLAND
SHORTAGE OF FOOD
BLACK MARKET
FREE MARKET VS. CENTRAL PLANNING
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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)
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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”
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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
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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
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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
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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
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WHAT DO THEY ASK FOR?
Access to media,Freedom of speech,Stop arresting Saturdays as a day off from work
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1989 “ROUND TABLE CONFERENCE”
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ROUND TABLE POSTULATESAble to have SOLIDARITY in each work placeRegister Solidarity as a legal UnionFree media,Saturdays offLess control in daily life
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LECH WALESA –PRESIDENT • December 22nd, 1990
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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
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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
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POLAND TODAY
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THANK YOU