SERIES: THE HISTORY OF ECONOMIC THOUGHT IN TRANSITIONAL COUNTRIES〈 2〉 Polish Economics and the Polish Economy: A Study for the Twentieth Anniversary of Transition in Poland Marek Ratajczak Abstract: The anniversary of the launch of transition in Poland is a good opportunity for sum- marizing the changes that have occurred in Polish economics and the Polish economy over the last twenty years. The author believes that certain processes cannot be un- derstood without providing a broader historical background to them. Therefore, the aim of this paper is to present what the author believes to be the most important trends in the development of the Polish economy and Polish economics not only in the postwar period, but also before World War II. Polish economics and the Polish economy have undergone transformation over two decades of transition. In this peri- od, Polish economists began to adapt their research to major trends of modern eco- nomics. A majority of them agreed to the concepts of mainstream economics. The main weakness of Polish economics continues to be the limited number of publica- tions in prestigious English-language periodicals. In effect, Polish economics contin- ues to be little known in the world. JEL classification numbers: B 24, N 14, P 30. present author believes that certain processes I Introduction cannot be understood without providing a The year 2009 will witness the twentieth an- broader historical background to them. niversary of Poland’s transition from what Therefore, the aim of this paper is to present was previously referred to as socialism and what the author believes to be the most im- today is known as Communism,1） to a demo- portant trends in the development of the cratic system with a market economy. The Polish economy and Polish economics not transition anniversary is a good opportunity only in the postwar period, but also before for summarizing the changes that have taken World War II. place in Polish economics and the Polish Interestingly, it is Poland-with its Soli- economy over the last twenty years. The darity movement, Round Table talks between The History of Economic Thought, Vol. 51, No. 2, 2009. Ⓒ The Japanese Society for the History of Eco- nomic Thought. 2 経済学史研究 51 巻 2 号 the authorities and democratic opposition in held the first congress of lawyers and econo- 1989, and partially-free elections held in the mists in Cracow-Poland’s capital until the same year-that was at the forefront of tran- 17th century and the main city of the area sition. under Austrian rule. The year 1900 witnessed the publication of the first issue of Ekono- II Polish Economics and the Polish mista, which continues to be a flagship Economy before World War II Polish economic journal even today. Since social and economic transformation is One of the implications of World War I a long-term process, understanding current was a radical change in the political map of phenomena without historical analysis is of- Europe. In 1918, Poland regained independ- ten impossible. In an attempt to understand ence. The legacy of the period of partitions the Polish transition, distant historical events included fundamental problems（ e.g., three that restricted the development of Poland’s different legal systems, lack of an independ- economy and Polish economics must occa- ent currency, or a uniform banking system） sionally be focused upon. In particular, it is as well as practical difficulties（ e.g., the lack worth recalling that at the end of the eigh- of a direct rail link between Warsaw, Po- teenth century, as a result of numerous parti- land’s capital, and Poznan´ , the main city of tions, Poland ceased to exist as an independ- the Great Duchy of Poznan´ , which encom- ent and integrated political, economic, and passed the territory of Prussian Poland）. A social state. In the nineteenth century-a cru- rather serious threat to the re-emerging state cial period for the development of econom- came from the fact that its borders were nei- ics as a science and the market economy in ther clearly established nor accepted by Europe-owing to Poland’s loss of sover- neighboring countries. Of particular danger eignty and division among Austria, Prussia, were the Russian revolution and the resultant and Russia, the Polish society did not partici- Polish-Soviet war. Another serious problem pate as an independent body in political and was the economic consequences of World economic life in Poland. In addition, Austria, War I. Prussia, and Russia treated Poland’s territory However, despite all the above-mentioned as a peripheral and buffer area. problems and threats as well as politically Such lack of sovereignty also resulted in and economically destructive phenomena rather limited opportunities for academic ac- such as hyperinflation, Poland managed to tivity. University education in the Polish lan- survive the most difficult initial years of in- guage existed only in Austrian Poland（ Gu- dependence and gradually began to develop. zicki and Żurawicki 1969, 198）. Scientific A symbol of the new economic era was the societies were a substitute for Polish-lan- currency reform of 1924, which replaced the guage academic institutions; some of these Polish mark with the zloty that was pegged societies are surviving to this day. In 1887, to gold. In 1929, Poznan´ hosted the General despite difficult conditions caused by the National Exhibition that presented the eco- lack of political independence, representa- nomic achievements of the first decade of tives of all three parts of partitioned Poland independent Poland. RATAJCZAK: POLISH ECONOMICS AND THE POLISH ECONOMY 3 The Great Depression had a significant Austrian school traditions（ Spychalski 1999, impact on the Polish economy. It is an estab- 305）.3） A follower of the Cracow school was lished fact that Poland’s economic crisis be- Edward Taylor （1884-1965）, who moved gan to subside only in 1935; it was a time from Cracow to Poznan´ and who personifies when the country, faced with an increasing the Poznan´ school of economics. Another threat from Germany and the Soviet Union, economist connected to Cracow was Oskar launched its industrialization and economic Lange（ 1904-1965）, who was known for his modernization programs. The outbreak of famous dispute with Ludwig von Mises over World War II on September 1, 1939 marked the rationality of an economy based on the the end of what is now referred to as the Sec- concept of central planning. From Warsaw it ond Republic （the First Republic was the is important to mention Aleksy Wakar pre-partition “Noble Republic”）. （1898-1966）, Jan Drewnowski（ 1908-2000） The two decades of the interwar period and Edward Lipin´ ski （1888-1986） （No- witnessed the development of economic wicki 1991）. Another economist connected studies in Poland’s main academic centers, to Warsaw was Michał Kalecki （1899- particularly Warsaw, Cracow, and Poznan´ , as 1970）, the best-known Polish economist in well as Lvov and Vilnius, which belonged to the world associated above all with Keyne- Poland in the interwar period. These five cit- sianism.4） After World War II, all these econ- ies had state universities, the oldest of which omists worked in a country whose official was Cracow’s Jagiellonian University estab- name was the People’s Republic of Poland. lished in 1364 and the newest was Poznan´ University founded in 1919. In addition to III The Polish Economy and ’ the five universities, there were also higher Economics in the People s schools of commerce, which initially pos- Republic of Poland sessed no academic rights.2） One of the consequences of World War II In the interwar period, the research areas was a political, economic, and military reor- of Polish economists reflected the main ganization of Europe. Poland, together with trends in world economics, and were related such countries as Bulgaria, Czechoslovakia, to the development of the neoclassical- Romania, Hungary, and the German Demo- Austrian-and mathematical schools of cratic Republic（ created in the Soviet occu- thought. In this period, the research of Polish pation zone）, became part of the area of So- economists was also influenced by histori- viet influence. The so-called Yalta order, cism or Marxism. However, in general, apart confirmed at the Potsdam Conference, led to from a few scholars, the achievements of that a division of Europe into Western and East- generation of Polish economists could hardly ern parts that would last over forty years（ ir- be described as original. However, there respective of the actual geographical location were certain notable exceptions, including of a given country）. Initially, immediately Adam Krzyżanowski （1873-1963）, who after the war, it was falsely believed that So- was considered to be the main representative viet leaders would settle for a guarantee of of the liberal “Cracow school,” influenced by friendly neutrality on the part of the above- 4 経済学史研究 51 巻 2 号 mentioned countries, including Poland, rather of Warsaw’s prewar population. Accounting than impose on them a political and econom- for approximately 10%（ 3.5 million） of Po- ic system based on the Soviet model.5） In the land’s total population, Jews constituted the discussion on the transformation that oc- country’s second largest ethnic minority after curred in Poland after World War II, the sig- Ukrainians. nificant territorial and demographic changes War and postwar migrations considera- that occurred at the time must be taken into bly changed the ethnic structure of Poland’s consideration. Geographically, Poland’s bor- population. In prewar Poland, ethnic minori- ders were extended considerably toward the ties accounted for a third of the country’s cit- west. On the one hand, the country acquired izens; however, currently the figure is only certain territories that had belonged to the approximately 4%.