Balcerowicz Plan

This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) The neutrality of this article is disputed. Relevant discussion may be found on the talk page. Please do not remove this message until conditions to do so are met. (August 2018) (Learn how and when to remove this message) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Balcerowicz Plan" – news · newspapers · books · scholar · JSTOR (August 2018) (Learn how and when to remove this message) (Learn how and when to remove this message)

Part of a series on
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
Principles Constitutionalism Democracy Egalitarianism Freedom Private ownership
Intellectuals Balcerowicz Heydel Niemojowski (Bonawentura) Niemojowski (Wincenty)
Politicians Balcerowicz Komorowski Mazowiecki Niemojowski (Bonawentura) Niemojowski (Wincenty) Palikot Tusk
Parties Active Civic Platform Your Movement Defunct Citizens' Movement for Democratic Action Democratic Party Democratic Union Familia Freedom Union Kaliszanie Liberal Democratic Congress Patriotic Party
Organisations Leviathan organization [pl] Leviathan Confederation [pl]
Media Gazeta Wyborcza Newsweek Polska Polityka Wprost
Related topics Liberalism in Poland
Liberalism portal Poland portal
v t e

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 and Wojciech Misiąg, 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 temporary drop in output, but growth was eventually achieved by 1992. 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.