Transcript The Road to freedom - Thomas R. Brown Foundations

THE ROAD TO FREEDOM: THE REAL
STORY OF SURVIVING COMMUNISM
Sylwia MartynowiczCavalcant
ECONOMIC CONCEPTS
 ECONOMIC GROWTH
 SCARCITY
 OPPORTUNITY COST
 STANDARD OF LIVING (THEN AND NOW)
 GDP
 SHOCK THERAPHY
 UNEMPLOYMENT
 INTERVENTIONISM
 CENTRAL PLANNING MARKET VS. FREE MARKET
MY FAMILY'S STORY
Over 10,000 people were removed from Poland, and
about the same died while fighting for freedom
THE MARKET DURING COMMUNISM IN POLAND
FREE MARKET VS. CENTRAL PLANNING
BLACK MARKET
SHORTAGE OF FOOD
MAIN PROBLEMS IN THE COMMUNISTIC SYSTEM
IN POLAND
• Shortage of food
• Prices are created by Government not buyers and seller
• Lack of incentives/ very low productiveness (people got paid
the same amount, whether or not they were working or not “sitting or laying down”)
• People can’t talk about democracy (academia, work places
because of KGB)
• People couldn't’t travel outside of Poland (no comparison)
SITUATION IN POLAND – CENTAL PLANNING
• High Inflation
• Deficit ($24 millions)
• Unemployment rate: 10.8%, very low wages
• Lack of truthful information in media/ media controlled by the
government
• Gray buildings /no property rights/ lack incentives to take care of
your property
• “Police Hours”
MAIN PROBLEMS IN THE COMMUNISTIC SYSTEM
IN POLAND
• Much corruption in Presidential Elections (in other words, the result was already
known)
• Obligatory Holidays (great show) Teachers Day, Minor Day, Women Day to show you
how your government is great and to promote the communistic system
SOLIDARITY INDEPENDENT SELF-GOVERNING
TRADE UNION "SOLIDARITY" 1980
1982
ELECTRICIAN
Lech Walesa “Without her visit
there wouldn’t be the victory”
Margaret Thatcher meets
Walesa in 1988
FIRST STRIKES IN COAL MINES - SEPTEMBER
1980
By the end of December 1980 there were
about 700 000 people protesting,
 Solidarity was almost in every city
STRIKES AND ACTION OF THE POLICE
• First Strikes- coal miners
• Later: colleges, universities
• People on strike in their workplaces
• Police can’t control the situation –they made them political prisoners
WHAT DO THEY ASK FOR?
Access to media,
Freedom of speech,
Stop arresting
Saturdays as a day off from work
1989 “ROUND TABLE CONFERENCE”
ROUND TABLE POSTULATES
 Able to have SOLIDARITY in each work place
 Register Solidarity as a legal Union
 Free media,
 Saturdays off
 Less control in daily life
LECH WALESA –PRESIDENT
•
December 22 nd, 1990
JEFFREY SACHS –TRANSITION TO
THE FREE MARKET 1990
Harvard professor Jeffrey Sachs, 35
•
Shock Therapy :
• Privatization
• Allowing buyers and sellers to control the prices in the market
• Allowing foreign companies and private people to invest
in Poland and export Polish products aboard
• Limit government spending
• Control over corruption
RESULTS (1990 TO 1995)
•
Inflation: 1993 - 21.6%, 2010- 3,1%
•
Unemployment: 6.0%
•
GDP:
•
1991 -7,0%
•
1992 2,6%
•
1993 3,8%
•
1994 5,2%
•
1995 7,1%
•
Manageable Deficit
•
Property Rights
•
More investors, investment in human capital,
•
Technological knowledge ,Capital
POLAND TODAY