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Poland

 
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Poland

Extractive and Manufacturing Industries

The range of products manufactured in Polish plants increased greatly in the postwar years, mostly through construction of new facilities in the period of accelerated industrialization. By the 1980s, heavy industry produced processed metals (mainly iron, steel, zinc, lead, and copper) and derivative products; chemicals; a wide variety of transportation equipment, including ships and motor vehicles; electrical and nonelectrical machines and equipment; and electronic and computer equipment. The most important light industry was textiles.

Under the central planning system, statistics on production by individual industries and on their relative shares in total industrial production through the communist period were distorted by administrative price fixing and unequal distribution of industrial subsidies (see table 17, Appendix). In general, however, between 1960 and 1989 the relative importance of food processing declined steadily while that of the engineering and chemical industries grew steadily. The share of light industry declined early in the period but then increased under the stimulus of expanded Soviet export markets. The relative importance of the metallurgical, mineral, and wood and paper industries remained basically unchanged. Within the engineering group, the machine building, transport equipment, and electrotechnical and electronic industries increased in relative importance between 1960 and 1989.

The engineering and chemical industries received a considerable injection of Western technology, including patents and licenses, under the technology import program of the 1970s (see Reliance on Technology in the 1970s , this ch.). In the late 1980s and early 1990s, however, economic crisis, recession, and postcommunist reform measures brought a drastic decline in output in those industries. For example, output of the artificial fertilizer industry dropped 32 percent between 1989 and 1990, mostly because rising fertilizer prices reduced domestic demand. A sharper drop was prevented by quadrupling fertilizer exports. In 1991 output of nitrogenous fertilizers remained stable, but output of phosphoric fertilizers again dropped sharply.

Some existing manufacturing facilities could support expansion of production, but others required modernization before they could be exploited efficiently to meet Poland's new economic priorities. Other facilities offered no possibility of expansion or modernization and were simply closed. In the Polish steel industry, which was second only to that of the Soviet Union in Comecon, only two plants had been built between 1945 and 1982. The Lenin Iron and Steel Plant at Nowa Huta, the largest in the country, was built near Kielce in 1954 with aid from the Soviet Union. Although some plants were modernized in the intervening years, most of the prewar Polish steel plants featured low productivity, low-quality metal, and poor working conditions, as well as very high pollution levels.

With the help of foreign experts, the Bielecki government undertook a number of sectoral studies. The objective was to draw attention to the existing obstacles to growth and to increase international competitiveness of industrial enterprises in various sectors. Four major restructuring programs were prepared in cooperation with United Nations experts. They included improving the management and modernization of the agricultural machinery industry, restructuring the production of fertilizers, improving management and technology in the pharmaceutical industry, and increasing the degree of automation in various branches of industry.

Data as of October 1992

Poland - TABLE OF CONTENTS

  • The Economy

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    Information Courtesy: The Library of Congress - Country Studies


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