Poland in Europe in the 20 th Century

Transcription

1 Jakub Basista, PhD, D.Litt Institute of History, Jagiellonian University Poland in Europe in the 20 th Century Meeting 21 - The 'Velvet' Revolution of 1989/1990 Part I April nuclear plant explosion in Chernobyl 12 June Poland accepted into IMF 25 June Ryszard Kulkiński sentenced to death by Military Court 29 June-3 July Party Congress; Jaruzelski remains 1st secretary 31 June Poland s debt passes 31 billion dollars 17 July partial amnesty 11 September Kiszczak announces that all political prisoners will be released; soon later all political prisoners leave prisons and Poland becomes the first socialist state without political prisoners: some 225 persons were to be freed 17 September all political prisoners freed from prisons, making Poland first Communist country without political prisoners 29 September underground Solidarity reveals its first open structure October Gorbatchev Reagan meeting in Reykjavik 19 December Sacharov released from Gorki returns to work in Moscow January Jaruzelski visits Italy and meets with John Paul II 27 January at a plenary meeting of Central Committee of the CPSU Gorbatchev calls for reform (pierestroika) and openness of public life (glasnost) 10 February amnesty for political prisoners in USSR 19 February US restrictions on Poland s trade end 28 March prices go up (food, energy, fuel) 8 May Jaruzelski proposes the reduction of arms in 9 Central East European states, referred to as Jaruzelski Plan it is a visible sign of Gorbatchev s influence 8-14 June pope s third pilgrimage September vicepresident George Bush visits Poland; reestablishing of full diplomatic relations and exchange of ambassadors 29 November referendum about economic reform and democratisation in Poland fails 8-10 December Gorbatchev Reagan meeting in Washington; a treaty concerning the liquidation of short and medium range missiles signed 17 December Gustav Husak resigns as secretary general of the CPCz.; he is replaced by M.Jakeš; Husak remains president January Poland stops to jam Radio Free Europe 1 February prices go up 22 May Janos Kadar resigns in Hungary; he is replaced by K.Grósz May/August strikes in various parts of Poland July M. Gorbatchev visits Poland 15 August September strikes

2 27 August Kiszczak announces readiness to start talks 31 August Kiszczak meets with Wałęsa September talks preparing the Round Table 19 September government of p.m. Zbigniew Messner resigns; M.Rakowski becomes P.M. 4 November Margaret Thatcher visits Poland and meets with Wałęsa 8 November George Bush elected US president November final talks about the future Round Table 30 November TV debate Miodowicz-Wałęsa 1989 January - initial talks concerning some kind of agreement; all sides present various options 14/15 January - in the proposed drafts of new laws the word Solidarity appears for the first time 16/17 January - X Plenum (Plenary Meeting) of the Central Committee of PZPR (Polska Zjednoczona Partia Robotnicza Polish United Workers Party) decides on the calling of Round Table 22 January - Solidarity National Executive Committee agrees on Round Table as good starting point for further talks 27 January - meeting between Czesław Kiszczak and Lech Wałęsa decide on the Round Table structure 56 participants: 20 members of the opposition, 6 from state labour union, 14 from ruling coalition (PZPR, ZSL, SD), 14 independent authorities and 2 representatives of the Church 6 February - Round Table meets in Pałac Namiestnikowski in Warsaw Round Table breaks up to discuss in three groups: Economy and social policy Political reform Union pluralism Additional sub-groups are arranged in the following fields: agriculture, mining, legal issues, associations, local authorities, youth, mass media, science, education, health and ecology. A total of 452 negotiators were involved on both sides. 24 February - a law Concerning certain aspects of consolidation of economy is passed enabling private persons to take over state enterprises 15 March - new currency laws are passed legalizing hard currency transactions 5 April - after long and very difficult negotiations, part of which were held outside the Round Table, and which were very close to being broken on several occasions, the Round Table concludes its work 5 April - Round Table ends 7 April - Polish parliament changes the constitution and passes a new, liberal law on associations 7 April - Polish parliament changes electoral law 8 April - first sitting of the Citizens Committee 13 April - Council of Ministers decides that elections will take place on June 4th and 18th 17 April - Re-registration of Solidarity 17 April - Jaruzelski visits Moscow and gets Gorbatchev s promise that Moscow will not interfere in Poland s domestic affairs 20 April - Farmers Solidarity registered 29 April - Walesa makes photos with candidates to parliament

3 8 May - first edition of Gazeta Wyborcza ( copies) 9 May - first radio electoral programme of Solidarity --- Elections were viewed and commented in many ways. For the US embassy briefing on these events please refer to: where interesting information about the events and the atmosphere can be found. According to the Round Table contract seats in the lower chamber (Parliament) were predivided among parties: PZPR was guaranteed 38% ZSL was guaranteed 15% SD was guaranteed 7% Social/catholic organisations were guaranteed 5% Free election was to give only 35% deputies 4-18 June - problems with the central electoral list 11 June - Jerzy Urban announces that the opposition agreed at the Round Table, that Jaruzelski should be the future president 13 June - Janusz Onyszkiewicz states that no agreement concerning Jaruzelski was reached 18 June - second round of elections; only 25.5 % participate 23 June - forming of the Citizens Parliamentary Club (260 deputies) June/July - demonstrations against Jaruzelski, who is named as theonly possible candidate for presidency 3 July - Adam Michnik publishes an article in Gazeta Wyborcza Your President, our Prime Minister 4 July - first meeting of the Parliament and the Senate 7-8 July - Bukarest Gorbatchev rejects the Breschnev doctrine 9-11 July - George Bush visits Poland 18 July - Jaruzelski announces readiness to run in the election 19 July - Jaruzelski elected president by the National Assembly: one candidate, 544 deputies present; 270 for, 233 against, 34 abstain, 7 spoil their votes 2 August - Czesław Kiszczak nominated Prime Minister by the Parliament (237 against 173 votes) 12 August - USSR acknowledges Ribbentrop-Molotov Pact as void 14 August - Kiszczak resigns not being able to form the government 17 August - Wałęsa sets up a coalition between Solidarity, ZSL and SD 19 August - Jaruzelski asks Tadeusz Mazowiecki, a candidate put forth by Wałęsa to form the government 19 August - Ceausescu proposes to help his Polish comrades 22 August - Gorbatchev calls Rakowski convincing him to accept Mazowiecki as PM 24 August - Mazowiecki approved by the Parliament (378 against 4, with 41 abstaining) 12 September - Mazowiecki s Cabinet approved by the Parliament. 11 ministries fall to Solidarity; 4 to PZPR; 3 to ZSL; 2 to SD; ministry of foreign affairs is taken by an independent professor Krzysztof Skubiszewski

4 The Polish Big Bang Reform According to Jeffery Sachs: Poland s goal is to be like the states of the European Community. Although there are many sub models within Western Europe, with distinct versions of the modern welfare state, the Western European economies share a common core of capitalist institutions. It is that common core that should be the aim of the Eastern European reforms. (J.S., Poland s Jump to the Market Economy, MIT Press, p. 5). Situation in 1989: impoverished economy, profound financial crisis; hyperinflation resulting from structural crisis and collapse of the old regime. Six structural features of Poland s economy 1989 (Sachs, 12-13) high industrialisation large peasant agricultural sector state owned enterprises lack of small & middle sized factories Poland s trade directed at the East egalitarian distribution of income and wealth 1989 last communist government introduces partial reforms. They lack the aim of producing real market, are too cautious, too hostile to real privatisation. There is no attempt to decentralise, to limit excessive wage raise, to fight inflation. Summer 1989: food prices liberation leads to increase in wages (0.8 indexation) and in effect to consumer price inflation. In August it reaches 34% ( annually) and in October passes 50% (54, i.e annually) becoming a hyperinflation. According to Sachs it was the 14th hyperinflation in history. Minimal control of prices, without adding any additional measures led to a very difficult crisis. Inflation in 1989 (2nd half) reached 251% and was rising. Most state-owned monopolies and holdings were ineffective and completely obsolete in terms of technology. Wages were low, and the shortage economy led to lack of even the most basic foodstuffs in the shops. October 6 the economic reform was presented on TV. On December 29, the parliament passed 10 laws, which were to be the pillars of the Balcerowicz program. Jaruzelski signed these laws on December 31, Act on Financial Economy Within State-owned Companies, which allowed for stateowned companies to declare bankruptcy and ended the situation in which a company was to exist even if it was ineffective and non accountable. 2. Act on Banking Law, which forbade financing the state budget deficit by the national central bank and forbade the issue of new currency. 3. Act on Credits, which abolished the preferential laws on credits for state-owned companies and tied the interest rates to the inflation. 4. Act on Taxation of Excessive Wage Rise, introducing the so-called popiwek tax limiting the wage increase in state-owned companies in order to limit the hyperinflation. 5. Act on New Rules of Taxation, introducing common taxation for all companies and abolishing special taxes that could previously be applied onto private companies through means of administrative decision. 6. Act on Economical Activity of Foreign Investors, allowing foreign companies and private people to invest in Poland and export their profit abroad. AT the same time

5 they were obliged to sell currency to the national bank of Poland. These companies did not have to pay popiwek. 7. Act on Foreign Currencies, introducing domestic exchangeability of złoty and abolishing the state monopoly in international trade. 8. Act on Customs Law, uniformizing the customs rates for all companies. 9. Act on Employment, regulating the duties of unemployment agencies. 10. Act on Special Circumstances Under Which a Worker Could be Laid Off, protecting the workers of state firms from being fired in large numbers and guaranteeing unemployment grants and severance pay. The Balcerowicz Plan thus meant: Decisive break with the Communist system Jump to market economy Private ownership, free market Integration with the world markets Stabilisation programme to end hyperinflation Pillars of the programme: macroeconomic stabilisation liberalisation privatisation construction of social safety net (unemployment compensation plan) mobilisation of international financial assistance for support On 1 January 1990: sharp cut in consumer and producer subsidies; end to almost all price control; no central planning; no black market currency exchange; opening of foreign trade; convertibility of currency; introduction of popiwek ; demonopolisation. The IMF accepted the plan and support was given to Poland, which had a national debt of $38.5 billion. Also an international stabilisation fund of $1 billion was created. Others followed either borrowing money, or writing off some debts. The reforms limited state control over economy. Liberalisation of prices was accompanied by control of wages. Social costs of the reform were very high. Unemployment went up to 6% at the end of GDP dropped by about 15%. Peoples real income dropped by about ¼.