Europe’s unlikely star

Yet one big country defies the general gloom: Poland, the subject of our special report this week. Once considered the problem child of central Europe, Poland has seen its economy grow since the collapse of communism by more than any other in the EU. It was the only EU member to avoid a recession during the financial crisis. And it has managed to have more cordial relations than ever before with its two big neighbours (and former occupiers), Germany and Russia—or it did at least until Russia annexed Crimea earlier this year. It is hard to think of any country in Europe, rich or poor, that can’t learn something from Poland.

How did Poland do so much better than central Europe’s stars—the Czech Republic, for instance, with its deep industrial roots? Unlike most of its ex-communist neighbours, which opted for a softer transition to capitalism, Poland embarked on “shock therapy” in 1990, masterminded by Leszek Balcerowicz, then finance minister. Almost overnight price controls went, markets were fully opened to foreign trade, the zloty was made convertible, subsidies to state-owned industries were slashed and privatisation began. This was painful for nearly everyone, but after a short, sharp slump in which GDP shrank by almost 15%, growth resumed in 1992—and it has not stopped since.

www.economist.com/news/leaders/21605910-poland-just-had-best-25-years-half-millennium-its-transformation-remains