Author(s):
1. Konrad Popławski, Warsaw School of Economics, Warszawa,

Abstract:
In this article the author would like to conduct a comparative analysis of the processes that were observed throughout the last 20 years of transition of Poland and Eastern part of Germany. The author defines the process of transition as an economic, judicial and institutional change from the artificial socialistic economy to free market economy. However, the author in this article focuses on the economic aspects of this process. The joint characteristics, which are similar for both countries, are parallel preconditions for reforms due to socialistic circumstances, which had been affecting those economies over 40 years. Both regions had suffered from Soviet way of economic management and had many similar problems and inequalities after the years of socialism. However, both countries have been affected by different instruments during the process of transition. Whereas German Democratic Republic was absorbed by the Federal Republic of Germany and at once it started to be westernized to introduce the basic structures of west Germany. Eastern Lander ha at once access to great capita resources enabling to introduce rapidly the process of building infrastructure. However, Poland went different way and with help of different international organizations tried to approach economic patterns of western Europe its own way. The quite radical program of reforms named from one of the author Balcerowicz plan led first to great slump and soon afterwards to fast revival of Polish economy, although Poland had rather small access to capital funds and even had a burden of debts from socialistic times to pay back. The author’s intention is to try different method of assessment of success or failure of transition in both regions. The GDR development level is very often compared to the level of development of west Germany and Poland is often set together with other Central Europe countries. Though, also comparison of situation and development of basic economic indicators can give interesting observations and conclusions.

Key words:
transition, GDR, Poland, costs, growth

Opening paper:
Yes

Date of abstract submission:
26.09.2011.

Number of visits:
603

Conference:
REDETE 2011

Applied paper from author