馃搱馃彮 POLAND... THE NEW POWER? 馃彮馃搱

馃搱馃彮 POLAND... THE NEW POWER? 馃彮馃搱

Poland has been experiencing big rates of growth, development and optimism. It is not surprising that all happened after abandoning Communism/Socialism. In this system, industry was public and highly subsidized, with low purchasing power. Because overproduction was prioritized by state order rather than by market reasons, deficits and inflation were a constant. In addition, his arduous regime of expropriations drove out investment and more educated people.

In 1989, everything changed. the dispossessed class, the most educated, took control after the fall of Communism. They carried out the greatest economic shock therapy: eliminating subsidies, controlling inflation through monetary policy and initiating regimes of privatization of companies. In fact, Poland, like many other countries in the world, joined the wave of globalization of the moment. In fact, Argentina has put the same idea into practice.

It does not seem new or different from any other Western country. Nevertheless, today many micro and macroeconomic aspects have improved. What is Poland doing to have reached this point?
1. Focus on high value-added exports (similar to South Korea)
2. Taking advantage of the depreciation of your currency
3. Creation of Exclusive Economic Zones: less taxes, less bureaucracy, decentralized and with high infrastructure (similar to Shenzhen, China)
4. Unified governmental vision: less public expenditure
5. Increased birth rate: public encouragement to those who already had children to have a new one (mainly), among others

Another important factor is their geopolitical position. In the theory of international relations, it is important to have a developed country as a buffer state (in this case, Germany and Russia). Thus, if Poland wants to be the "new superpower", it should not buy any NATO war propaganda against Russia. Finally, Poland is one of the best countries in the PISA test... Many Latin American countries must learn from it.

The best analysis is yours!

J. Joel Padilla



Copyright: Joel Padilla 2024



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