Balcerowicz Plan

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Liberalism in Poland
Ideologies Anti-clericalism Christian democracy Democracy Elitism Free market economics Balcerowicz Plan Kraków School Trickle-down economics Globalism LGBT rights Liberalism Pro-Europeanism Reformism
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Intellectuals Balcerowicz Heydel Niemojowski (Bonawentura) Niemojowski (Wincenty)
Politicians Balcerowicz Komorowski Mazowiecki Niemojowski (Bonawentura) Niemojowski (Wincenty) Palikot Tusk
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The Balcerowicz Plan (Polish: plan Balcerowicza), also termed "Shock Therapy", was a method for rapidly transitioning from an economy based on state ownership and central planning, to a capitalist market economy. A group of experts, which they formed together with Balcerowicz, including Stanisław Gomułka, Stefan Kawalec [pl] and Wojciech Misiąg [pl], in September 1989 created a reform plan based on an earlier idea of Jeffrey Sachs, and on October 6, an outline of this plan was presented to the public by Balcerowicz at a press conference broadcast by TVP.^[1]

Named after the Polish minister and economist Leszek Balcerowicz, the free-market economic reforms were adopted in Poland in 1989. There was a 3 year drop in output. Similar reforms were made in a number of countries. The plan has resulted in reduced inflation and budget deficit, while simultaneously increasing unemployment and worsening the financial situation of the poorest members of society.