ABSTRACT
This chapter provides an analysis of developments in Polish capital market, with special emphasis on their roots in the privatization process. It focuses on the future course of privatization and capital market development prospects. Privatization in transition economies often has been conceived as a simple, "one-shot" transfer of ownership rather than a long-run, complex process of social, political, economic, psychological and cultural change. Privatization of state-owned enterprises and assets has become a new source of budget revenues since 1991. Privatization and the creation of a capital market were among the main objectives of the reform package. The capital market has expanded at a much faster pace than that of ownership changes. One of the most important dimensions of the former objective was seen in the creation and fast development of the stock exchange, in particular, and of the capital market, in general.
