Balcerowicz Plan

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Part of a series on
Liberalism in Poland
Ideologies Anti-clericalism Christian democracy Democracy Elitism Free market economics Balcerowicz Plan Kraków School Trickle-down economics Globalism LGBT rights Liberalism Pro-Europeanism Reformism
Principles Constitutionalism Democracy Egalitarianism Freedom Private ownership
Intellectuals Balcerowicz Heydel Niemojowski (Bonawentura) Niemojowski (Wincenty)
Politicians Balcerowicz Komorowski Mazowiecki Niemojowski (Bonawentura) Niemojowski (Wincenty) Palikot Tusk
Parties Active Civic Platform Modern Defunct Citizens' Movement for Democratic Action Conservative People's Party Democratic Party Democratic Union Familia Freedom Union Kaliszanie Liberal Democratic Congress Patriotic Party Spring Your Movement
Organisations Leviathan organization [pl] Leviathan Confederation [pl]
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The Balcerowicz Plan (Polish: plan Balcerowicza), also termed "Shock Therapy", was a method for rapidly transitioning from an economy based on state ownership and central planning, to a capitalist market economy. A group of experts, which they formed together with Balcerowicz, including Stanisław Gomułka, Stefan Kawalec and Wojciech Misiąg, in September 1989 created a reform plan based on an earlier idea of Jeffrey Sachs, and on October 6, an outline of this plan was presented to the public by Balcerowicz at a press conference broadcast by TVP.^[1]

Named after the Polish minister and economist Leszek Balcerowicz, the free-market economic reforms were adopted in Poland in 1989. There was a 3 year drop in output. Similar reforms were made in a number of countries. The plan has resulted in reduced inflation and budget deficit, while simultaneously increasing unemployment and worsening the financial situation of the poorest members of society.