|
The following OECD assessment and recommendations summarise Chapter 1 of the Economic Survey of Poland 2006 published on 28 June 2006.
Contents
Has economic reform gone far enough?
Entering the European Union in May 2004 gave an important boost to the Polish economy. GDP per head is currently under 45% of the EU average, but the long process of convergence has resumed. Although growth waned somewhat during 2005 when real GDP rose by only 3.2%, current prospects are for annual growth of 4½ per cent during 2006-07. EU funds will make an important contribution to improving public infrastructure and support policy in several other areas, provided they are used effectively.
However, numerous underlying economic problems remain. Employment rates are very low: the level of recorded unemployment is high, and there are substantial numbers of economically inactive people (although many of these may be active in the informal economy) even before population ageing really takes hold. In fact, labour market performance in Poland is arguably the worst in the OECD. Despite the need for faster capital accumulation if economic convergence is to continue, let alone accelerate, the share of investment in GDP has remained stubbornly low. Budgetary policy has been rather erratic, with something of a blow-out in 2004, followed by an unexpectedly large improvement in 2005 and uncertain prospects for 2006. These problems require the attention of policymakers, beginning with the maintenance of a strong and stable macroeconomic framework, for both fiscal and monetary policy.
Employment and participation rates in OECD countries
2004 or latest year available(1)
1. 2003 for the Netherlands.
Source: OECD, Analytical database.
Sound fiscal and monetary frameworks will be needed to ensure that income per head can continue to grow more rapidly than in most OECD countries. This convergence will require many structural changes in the economy, if labour and capital resources are to move to areas where they are best used. For this process to accelerate, and for it to occur without too many people emigrating in the meantime, steps are needed to:
-
improve labour market functioning, increasing internal mobility and raising Poland’s very low employment rate, and
-
encourage Polish entrepreneurs to develop and expand their businesses so that innovation and investment flourish.
Pursuing these aims concerns many policies, and human capital development is vital to underpin them.
How to obtain this publication
The Policy Brief (pdf format) can be downloaded. It contains the OECD assessment and recommendations, but not all of the charts included on the above pages.
The complete edition of the Economic Survey of the Poland 2006 is available from:
-
SourceOECD for subscribing institutions and many libraries
-
-
OLISnet, under "Publication Locator", for government officials with accounts (suscribe)
-
Additional information
For further information please contact the Poland Desk at the OECD Economics Department at webmaster@oecd.org. The OECD Secretariat's report was prepared by Paul O'Brien and Stéphanie Jamet under the supervision of Peter Jarrett.
|
