ABSTRACT
In 1979 Poland slid into an economic disaster unparalleled by any other socialist country. Poland's capability and willingness to service all her financial obligations abroad fully and in good time are newly subject to country risk assessment. The deficit on new account was "financed" by forced credits, that is, by an increase of arrears. Since 1984 the capital balance in convertible currencies shows new medium- and long-term credits obtained of only US-$ 200-300 mn yearly. The outcome is high specific material and energy consumption, high propensity to import and weak competitiveness of exports, ecological problems and structural distortions leading to internal and external imbalances. The gap between nominal incomes and nominal outlays is increasing. The increase of the population's nominal incomes and, thus, of money supply in 1988/89 was mainly due to enterprise payments to private households by way of wages and to enterprises' investments.
