The Significance of Poland for Ukraine: Role Model, Bordering State, Integrator?

Abstract

During the past ten years, Poland has been one of the fastest growing transition economies. The Polish transition from a rigid centrally planned economy (CPE) to a market economy (ME) is considered a success by most observers. Economists and politicians have often used this success as proof that it is possible to make the transition smooth and without excessive welfare costs. The question is can the Polish transition to the market be imitated? Are there common factors, which Ukraine could use? There are no simple answers. Each transition economy has its own particular starting conditions and capabilities. There are many factors which influence a successful transition, and Poland was lucky to have the right ones.