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Negocios II
elements of the transition process
Liberalization: a mechanism that Poland used to perform the transition process was to allow themajority of prices are determined by market supply and demand in the words of Adam Smith "invisible hand" free trade, likewise reduce trade barriers. Only a reform of such magnitude could remedy thesituation of the Polish economy, whose development had been frustrated by the lack of competition, the omnipotence of the state bureaucracy and isolation.
Legal reforms: they are necessary to make thenew functions of the state in the economy, and introduce appropriate competition policies.

Reestructuración and privatization: We have created viable and financial sectors have been reformed firmsin these economies so they can produce commercial goods in free markets and transfer their ownership to private hands.
Key points of transition

Income inequality: GDP decline and increasedpoverty, Gini coefficient, Gini coefficient ranges from zero, in a context of complete equality of income, and one, in a situation where most income is in the hands of few individuals

Increasingreturns to education, wage inequality

Poland is the only economy in transition has grown considerably

At the beginning of the transition, there was an excess of liquidity (an excessive accumulationof savings) and a considerable fiscal deficit. However, Poland soon established a strong program of stabilization and market-oriented reforms including privatization and enterprise reform,liberalization of prices and foreign trade and establishing the rule of law, property rights and an efficient financial market

Marked increase in the level of state cash transfers to individuals, because ofthe costs of retirement pensions (early retirement of workers). In the first four years, spending on transfers increased from 10% to 20% of GDP This increase mitigated the increase in global income...
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