The Balcerowicz Plan (Polish: Plan Balcerowicza), also termed "Shock Therapy", was a method for rapidly transitioning from a communist economy, based on state ownership and central planning, to a capitalist market economy. Named for its author, the Polish minister and economist Leszek Balcerowicz, the plan was adopted in Poland in 1989.
There was a temporary drop in output and growth was achieved by 1992. Similar reforms were made in a number of countries.
Read more about Balcerowicz Plan: Background, The Plan
Famous quotes containing the word plan:
“Solomon’s ... excess became an insult upon the privileges of mankind; for by the same plan of luxury, which made it necessary to have forty thousand stalls of horses,—he had unfortunately miscalculated his other wants, and so had seven hundred wives....
Wise—deluded man!”
—Laurence Sterne (1713–1768)