Leszek Balcerowicz

The architect behind the transition from communist centralised planning to a market economy

Born in 1947. For some, an economic saviour, for others, liberal evil incarnate.

Minister of Finance and Deputy Prime Minister 1989-1991 (perhaps the government’s most important minister during this period) and again from 1997 to 2000, when the Minister of Finance was still important, but perhaps slightly less so than in 1989-1991. Governor of the National Bank 2001-2007 at the request of President Kwasniewski and grudgingly accepted by Leszek Miller, who would have liked to see a candidate who lowered interest rates a little more.

Thatcher and Reagan

In 1989, Balcerowicz was a relatively young economy researcher who had previously worked on market reform of the socialist economy. He was certainly not the first choice as finance minister, perhaps the most important post in Poland, which was in economic collapse. But other honourable economists politely declined. Balcerowicz had previously developed ideas about free market economics, which were quickly adapted to the International Monetary Fund (IMF) guidelines. The liberal economic theories of Reagan and Thatcher were dominant internationally at the time, and Balcerowicz became their representative in Poland.

Initially, trade was set free and smaller state companies were privatised. However, manufacturing companies were characterised by outdated production methods, outdated management and a significant debt burden, which became unbearable during the high interest rates around 1990. Parts were sold off, but large parts of the mining and heavy industry were seen as strategic businesses in which the Polish state retained a controlling stake – and so it remains to this day, with Poland still controlling the largest Polish banks and insurance companies. So while market reforms were initiated, they never went as far as Balcerowicz would have liked.

The man who came to symbolise the economic transformation

Nevertheless, Balcerowicz became the symbol of liberal reforms in Poland, including the object of disillusionment for large group of low-paid, unemployed and farmers with postage stamp sized farms. This large group felt like losers in the new Poland, and the slogan “Balcerowicz must resign” was frequently repeated by opponents of liberal reforms.

After leaving the National bank, Balcerowicz has become a sought-after speaker and advisor all over the world.

Balcerowicz on his role in the post-communist economic transition:

Lecture in English on globalisation:

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