ABSTRACT
This chapter discusses that both privatization and stabilization policies must consider the effects one will have on the other, and the inherent conflicts between immediate needs and long-term goals of legal certainty and economic stability. The uncertainty surrounding the privatization process in Poland has contributed to the passivity with which enterprises have responded to the new economic conditions, which in turn fuels the recession. Many essential problems are yet to be addressed, and given Poland's lack of previous experience of market economy, a high degree of uncertainty logically accompanies the transformation process. There has been a clear deterioration of performance at both the macro- and microeconomic levels, threatening not only to reverse progress made by the country's economic stabilization plan. The sequencing of economic reform has only recently emerged as a topic of theoretical discussion. The relationship between stabilization goals and the methods of privatization can be something of a vicious cycle.
