Policies to Speed Convergence

Poland has made substantial progress towards establishing a vibrant economy, where private entrepreneurs are able to pursue opportunities with growing support from legal institutions and in an environment where regulatory and administrative burdens are declining. The private-sector now produces some 75 per cent of GDP there are over 1.7 million active independent firms and the Polish stock market is the most active and largest in Central Europe. The transition to a market economy has been facilitated by major changes to laws governing capital and product markets, and efforts to improve the regulatory framework. However, despite substantial accomplishments over the past decade and a half, problems persist. Investment levels, though rising rapidly in recent years, are low relative to other emerging economies and have been declining, productivity levels are low and a large and ...