The Economy

Until after World War II Poland was primarily an agricultural country. Manufacturing was little developed except in Silesia and Warsaw. After the war, which left the country ravaged, Poland's government modeled the economy after that of the Soviet Union. The development of heavy industries, such as steelmaking and chemical manufacturing, was emphasized at the expense of the production of consumer goods. Ownership of most industries was taken over by the government and the economy became centrally planned, with little concern for market forces. Collectivization of agriculture was begun in the late 1940's but was abandoned in the 1950's.

Major industrial gains were made during 1945–75 and the economy grew steadily. However, a major economic decline occurred during the 1980's, causing widespread social unrest.

In 1989, after the fall of Poland's Communist government, economic reforms were introduced to transform Poland's centrally planned economy into one based on private enterprise and market forces. By the mid-1990's, many of Poland's state-owned industries had been returned to private ownership and the economy once again began to grow.

Manufacturing is Poland's leading economic activity, accounting for roughly a third of the nation's total output of goods and services and engaging about 25 per cent of the labor force. Many goods formerly imported are now produced in Poland, and some of them are exported.

The manufacture of machinery, transportation equipment, metals, and chemicals are the leading heavy industries. Since the introduction of economic reforms, the production of consumer goods has increased

Silesia, particularly the Katowice area, is Poland's main manufacturing region. Metallurgy is the primary endeavor there. Much manufacturing is also done elsewhere, especially in the cities of Warsaw, Lódz, Kraków, and Poznań.

Agriculture remains a significant, though declining, part of the Polish economy. In the early 1990's it provided about 7 per cent of the nation's total output of goods and services and engaged roughly 20 per cent of the labor force. About half of Poland's total area is farmland.

About 80 per cent of the nation's farmland is privately held; state and cooperative farms account for the rest. Many of the state farms are former German estates that were taken over after World War II.

Most of the private farms are small, averaging about 13 acres ≮5.2 hectares), and produce both crops and livestock. Potatoes, sugar beets, cabbages, rye, wheat, barley, and oats are the chief crops. Excluding poultry, hogs are the most numerous livestock. Ham and bacon are important exports. Cattle and sheep are also raised.

Coal, mined primarily in Upper Silesia, is the leading mineral resource of Poland. It provides about 80 per cent of the nation's electric power and is exported in large amounts. Copper, lead, zinc, silver, sulfur, salt, petroleum, and natural gas are among other minerals produced.

Roughly one-fourth of Poland is covered by forests. Most of the trees are pines, spruces, and other conifers; a few broad leaved species grow in the south. Much of the annual cut is used for pulp to make paper and paper products.

Commercial fishing is done mainly in the Baltic and North seas and in the open North Atlantic waters. The catch is mainly herring and cod.

Since the early 1970's Poland's highway system has been greatly expanded and the use of motor vehicles has greatly increased. About 65 per cent of the road network is paved. Railways link the larger cities and most of the country's freight is moved by rail.

The Polish airline, LOT, provides both domestic and international service. Warsaw's airport is the nation's busiest air terminal. The chief ports are at Gdańsk, Gdynia, Swinovjscie, and Szczecin. The Vistula and the Oder are the only navigable rivers.

Poland's principal trading partners are other eastern European countries. Also important is trade with countries of the European Union, especially Germany, Great Britain, and Italy. Poland's basic currency unit is the zloty.