POLAND BALANCE-SHEET OF POLAND’S ECONOMY

It is something of a feat to discuss the Polish economy since 1950 without a mention of Stalin or Gomulka, but it is done in an article in the latest issue of Economic Bulletin for Europe} Here is a highly competent technical survey, without a ‘single propaganda phrase about ‘building socialism’ or ‘communist tyranny’, which underlines the current dilemmas of Polish economic policy.

After the three year reconstruction plan (1947-50) Poland was dragged along the path of forced-march industrialization by Stalinist methods. A tremendously high rate of investment was achieved in heavy industry, while consumption— by the ordinary people—fell, leaving ‘productive. capacity greatly increased, though in a seriously unbalanced pattern’.

By_1954.the strain had become so great that investment had to be restricted.

This phase was essentially the imposition on Poland of a pattern derived from Soviet experience, amounting to an attempt to build ‘socialism’ in one country with little coordination even with the other ‘people’s democracies’ .2 1This is "published by the Economic Commission for Europe, a United Nations agency and one of the few bodies in which East-West collaboration between experts has been uninterrupted. This article is anonymous, is based not only on published official statistics but also upon information ' obtained directly from the Polish government. It is about as impartial as can be expected. All quotations are from it.

The same issue contains an equally valuable and objective study of economic development in Soviet central Asia. 2Recognition of this is now. general in eastern Europe. Thus Vladimir Klaigl, Director of the Institute of Economics of the Academy of Sciences of Czechoslovakia, in a special article for the French Communist Party journal. Etudes Economiques, no 100-101, has much to say about the international: division of labour which might have. come from, say, Trotsky. He writes:

‘Before 1955, the division of labour between socialist countries was influenced mainly indirectly by long-term trade agreements and it was for this reason very inadequate.

‘It often happened that. different peoples’ democracies constructed simultaneously powerful productive enterprises of the same type, production programmes duplicated each other, very large sums were spent-to very little effect.

‘All this led to -insufficient: utilization .of funds available for production, toa lag in i the technical level and a slowing down in the growth in the productivity of social Jabour.’.

According: to, Klaigl this situation caused problems ' for Czechoslovakia in 1953-55, since.when it has been put right by the co-ordination of the economic plans of. the -different countries of. the ‘socialist camp’. was insufficient investment in others. Farm buildings and some of the transport system suffered some disinvestment through lack of materials for repair work.

Some sectors lagged behind and held up the rest of the plan, the most serious shortcomings being in electric power and building materials. Investment in the armaments industry exceeded that in all light industries producing consumers’ goods.

As an example of disproportionate growth, ‘many engineering plants have been running at a mere 30-50 per cent. of capacity—and there are. numerous large plants with an even worse record’, owing to lack of high quality steels.

Amid the ‘achievements’, entailing heavy overhead costs in falling morale and wasted effort, went. the growth of the bureaucratic apparatus with its privileges and luxury, and the oppression revealed at the famous Seventh Plenum in 1956.

In agriculture there was conspicuous failure. Output failed to expand as expected. Drives against the kulaks, some forced collectivizations and compulsory deliveries by the peasants to the State—on the best, Stalin model—impaired ouput and. antagonized the peasantry.

Postponed to Greek Calends Consequently ‘at the end. of 1956 four-fifths of all collective farms were spontaneously dissolved’. Indeed, collectivization has been so discredited that although it remains ‘the main goal’ it has been postponed to the Greek Calends.

The tendency at present seems to be to strengthen private property and private accumulation in the village. The slavish following of Stalinist policies in the agrarian sector has thus resulted in a great retreat.

Thousands of artisans, who could have provided the basis for an improved production of consumer goods, were driven out of business—and into black market and other doubtful activities. Throughout the economy absenteeism, pilfering and lack of interest were besetting problems.

This article speaks, for example, of an important means of increasing .output--being~ ‘the bringing into-the normal production process [of] the effort that at present goes into private work carried on during absenteeism from the worker’s usual job (sometimes using illegally acquired materials) . .

_ But there is no understanding of why -such an. attitude . arose. It is, of course, a sad commentary on bureaucratic methods and the failure to enlist the full participation and enthusiasm of the working class—even under Gomulka.

The present economic situation of Poland, as a result of past mistakes and the lack of this last, vital factor, is by no means rosy. The article-is written from a standpoint which cannot give offence to the -existing political leadership.

Emphasis is laid on the fact that the concession of large increases in. money. wages brings an inflationary danger and that further. increases cannot be- safely conceded.

Although food prices have not risen much owing to good harvests and better deliveries:from the peasantry other: prices have. been. going -up... However, ‘living standards remain ‘low for. -vast numbers -below the 6 per cent. or so of the privileged.

It is stated that ‘to ‘maintain a family adequately more

-than one wage ‘is usually’ necessary, and if ‘this is” “unobtainable by legal: mieans a family ‘is left with the ‘choice ‘between misery and seeking an illegal: income’.

Due ;

The working class seems to merge” indistinguishably ‘into -the underworld: The ‘background to Poznan and Lodz emerges clearly. :

A serious aspect of the situation is that the Polish economy _ is being helped along by foreign credits—150 million dollars from the USSR (with a further 75 million dollars for 195860), 95 million dollars for food from the USA, and Czechoslovak and east German assistance for re-equipping the coal mines.

Further investment is necessary and the revised plan for 1956-60 aims at a return to the level prevailing in 1955. Weak . sectors of industry have to be built up so that labour and capacity can be more fully employed and further advance be more uniform.

The article cautiously recognizes the importance of the political factor in its last sentence which is worth quoting in full:

- “Pressing as the claims of a higher rate of investment undoubtedly are, there is a real danger that any attempt.

once more to hold the average real income of industrial workers practically constant would be self- defeating through the adverse effects on workers’ morale and productivity.’

It is evident that the Polish working class has not yet said its last word. Meanwhile a study of the Polish experience has a great many lessons for socialists everywhere. Phe ’ Sheikh ‘ however, by éxcludihg independence ‘on the’ grou: ‘of non-viability, and calling for accession ‘to Pakistan,’

is helping to fan the very flames which he tried unsuccess~"" fully to: extinguish under the Indian régime.

London, N. W. 3 K. Singh