Balcerowicz Plan turns 20

18th December 2009

This month marks the 20th anniversary of Poland's adopting the Balcerowicz Plan, which provided the framework for transforming the country's centrally planned socialist economy to one based on capitalist free market principles.

Named after its architect, former finance minister and central bank head Leszek Balcerowicz, the plan has been credited with helping Poland in its first years of democracy to quickly stabilize its currency, end years of chronic shortages and rationing, and wean its economy from state subsidies.

When the plan was implemented, Poland was in the midst of hyperinflation, with prices rising 369% from September 1989 through January 1990. Following the transition, price ...