ABSTRACT
Privatization is the most important element of the structural transition from a command-and-control economy to a market economy. This chapter sketches the direction and strength of influence of privatization processes on the principles of sustainable development. While privatization may bring certain ecological benefits, it will not, by itself, improve the quality of the natural environment in Poland. At the present stage of economic transformation in Poland, the vast majority of enterprises, regardless of their ownership status, do not obey the rules described in standard microeconomic textbooks. The potentially positive effects of the economy's energy- and raw material-intensity reduction are particularly important given Poland's extremely damaging past patterns of energy and resource use. The inability to improve productive efficiency in Poland was primarily responsible for the country's high levels of pollution and resource overuse. Hardened budget constraints should render firms more sensitive to price signals, including the fees and fines of Poland's market-based environmental policies.
