ABSTRACT
This chapter explains fundamental principles behind the reform of the management and planning system for the whole Polish economy. Poland is probably the only example of the durable coexistence of an individual agricultural economy producing the bulk of farm output and central planning system covering the whole of the economy. Under the continued influence of those causes, and particularly during 1975-1979, the Polish economy was thus kept in an uneasy and constantly perturbed balance. The economic links between the individual peasant sector and state industry will have to be modified according to the principle of the reform since industry will presently be composed of autonomous, self-managed and self-financed firms. The fatal economic policy of the seventies brought disintegration of the industrial production apparatus and a fall in national income. The efficiency of state policy concerning farm prices was improved by issuance of directives regarding wages and their readjustment, within the framework of central plan, to conform with farm price policy.
