Poland’s Economic System

Gabriel Morris

 

Poland’s economy is a mixed economy that includes private freedoms and also central planning and government regulation. Poland was once communist, but after the 1989 free elections Poland has moved towards a more free-market economy. Being a mixed economy means that Poland uses aspects of both capitalism and socialism. In a capitalist economy there is little to no government regulation on business. The factors of production are controlled by owners of the businesses and their end goal is to make a profit. Under socialism there is heavy centralized government planning. The factors of production are controlled by the state and their end goal is to try to take care of as many peoples’ needs as possible. The aim of the Polish economy is to allow people to make profit in private industry but also provide for people in need. Since Poland is a mixed economy, it pulls aspects from both capitalism and socialism. While most businesses in Poland are private, there are state owned enterprises that compete in the economy. This means that while the factors of production are mostly controlled by private entities, some factors are controlled by the state. Because Poland is a market economy but with social programs, the type of capitalism with the most influence on Poland is welfare capitalism. Government also invests in economic infrastructure and certain crops are subsidized by the EU. Poland’s economy has strong ties with Germany’s economy, so Poland will often mimic German Policies. Poland has also become more ingrained in the EU economy as a result of their economy policies and close economic relationship with Germany. Poland was also the only EU country to avoid the recession in 2008. Polish economy has performed well in recent years, growth slowed in 2013 and then picked back up in 2014. Poland’s right of center Law and Justice government plans to create economic policies to help with long-term growth, but social programs are expected to increased deficit spending. Poland also faces several challenges, such as weak road and rail infrastructure, strict labor code, government red tape, and heavy taxes, especially for entrepreneurs and businesses. If Poland can confront these Problems, they could very well become a major European economic power.

 

17281558-polish-money-coins-and-banknotes-background

Works Cited

Alessi, Christopher. “Poland’s Economic Model.” Council on Foreign Relations, Council on Foreign         Relations, http://www.cfr.org/poland/polands-economic-model/p29506. Accessed 18 Mar. 2017.

“Poland.” Global Edge, U.S. Commercial Service, globaledge.msu.edu/countries/poland/memo.                               Accessed 18 Mar. 2017.

“The World Factbook: POLAND.” Central Intelligence Agency, Central Intelligence Agency, 12 Jan. 2017,               http://www.cia.gov/library/publications/the-world-factbook/geos/pl.html. Accessed 19 Mar. 2017.

 

https://us.123rf.com/450wm/udra/udra1301/udra130100079/17281558-polish-money-coins-and-banknotes-background.jpg?ver=6

 

Advertisements

Ukrainian Economic System

Ukrainian Economic System

By: Natalie Smith

The Ukrainian economy is currently a mixed system. The economy pulls the strongest parts of both capitalism and socialism in order to articulate an economy that works most efficiently for the Ukraine. The mixed economic system of the Ukraine was once a communist economic system. Once the Ukraine gained independence from the Soviet Union, the Ukraine’s economy changed from a communist economic system to a mixed system. A mixed system incorporates both socialist and capitalist concepts. Capitalism is a type of economic system where the government plays little to no role at all. The factors of production are owned by businessmen and investors in a capitalist economy. Socialism is a type of economic system where the government does play a significant role in the economy. In a mixed system the factors of production are owned by individuals, but the government does have some level of involvement. The mixed system economy in the Ukraine consist of a market economy with regulations and social programs. The market economy in the Ukraine allows individuals to own and develop private businesses without the government limiting them. The government however does place healthy regulations on businesses in order to protect consumers. The Ukraine also has many social programs such as social and survivor pension. These programs use the economy to benefit the citizens of the Ukraine and socially aide them. This is a socialistic idea, but it is mixed with the ideas of a capitalist economy. A major ramification of the mixed economic system within the Ukraine is trade. Trade is 108% of the Ukrainian GDP, and it is largely important to the country collectively. Prior to the independence of the Ukraine, the government in the Ukraine owned factories within the country. The communist idea of the government owning factors of production led to the failure of many factories causing the economic system to transform. The goal of the Ukrainian economy today appears to be to allow businesses and the economy to flourish while still protecting individuals socially within the country. The Ukrainian economy has had moments of weakness, but it has so much potential for growth. The landscape of the Ukraine is filled with natural resources and power resources that have the potential to drive the economy forward. The Ukraine has also been taking steps to receive more foreign investors. Foreign investors could potentially benefit the economy as well. The mixed economic system in the Ukraine appears to be a strong balance between capitalism and socialism. The Ukraine has built an economy around its strengths, and the Ukrainian economy in my opinion will continue to grow under a mixed system.

ukraine_money_265

Works Cited

“Economy of Ukraine.” Ukraine Cities and Oblasts Guide Main Page. N.p., n.d. Web. 16 Mar. 2017.

“Ukraine.” Ukraine Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. N.p., n.d. Web. 16 Mar. 2017.

“Social Security Administration.” Ukraine. N.p., n.d. Web. 16 Mar. 2017.

http://www.ukrainetravel.co/images/TRAVEL/CURRENCY_UKRAINE/ukraine_money_265.jpg