Poland - Growth with equity policies for the 1990s
Jaffee, Steven | DEC
Poland's positive economic performance in 1993 continues in 1994. Nearly written off as the new sick man of Europe, the country is now in its third year of industrial recovery. Projected gross domestic product growth of 4.5 percent for 1994 looks realistic and could even be better. Policies to sustain recovery and allow Poland to complete transition to a modern, market oriented, democratic society must capitalize on the strengths of recent performance, and remedy emerging weaknesses. The report calls for a revamping of the public sector, concentrating specificallsy on tax administration reform. The report identifies that an increase in tax rates is not as necessary as an increase in actual collection, citing the tax avoidance of the private sector as the primary culprit. The report also examines the social security system and the strong maintenance of health care and social safety net systems as large components of sustainable growth.
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