Chapter VI: TRANSFORMATIONS AND DEVELOPMENT
IN POLITICS AND ECONOMY SINCE THE FALL
OF COMMUNISM IN POLAND')">
Chapter VI
TRANSFORMATIONS
AND DEVELOPMENT
IN POLITICS AND ECONOMY
SINCE THE FALL
OF COMMUNISM IN POLAND

On December 29th 1989 Parliament decreed constitutional transformations, which finished PRL's existence. Rzeczpospolita Polska was to be a democratic country, in which the nation would have its rights to decide about important affairs through senate, seym and local governments. All restrictions in political sphere were abolished . On February 9th 1990 Parliament decided to come back to the historical name of Polish country - Rzeczpospolita Polska and in a new Polish national emblem there was an eagle with a crown. SB and MO services were dissolved. Bureau of Country Protection (Urzad Ochrony Panstwa) and State Police (Policja Panstwowa) took their place.
 
Tadeusz Mazowiecki (left) and Lech Walesa (right) - both from Solidarity.
One of the most important tasks of the new government was a program of rescuing Polish economy. The main problems were hyperinflation, post communist monopoly, not regulated property relations. At the beginning of 1990 the first anti communist government of Tadeusz Mazowiecki introduced a plan by Leszek Balcerowicz, whose purposes were: restrain the inflation and increase value of money. Also International Monetary Fund and World Bank accepted this plan. Western countries reduced Polish debts, which were increasing since Edward Gierek's rule. They also announced that they would give new credits - 2,2 milliard dollars. In the shops the shelves were soon filled with food and all kinds of goods. Furthermore, there were founded lots of private firms. However the fight with inflation caused a decrease in the standard of life. At the end of 1990 there were a great number of the unemployed.

In January 1990 PZPR was dissolved. Instead of it, there were a few independent parties. The most active were: Social-Democratic Party of Polish Republic (Socjaldemokracja Rzeczypospolitej Polskiej) and Polish Social-Democratic Union (Polska Unia Socjaldemokratyczna) with Tadeusz Fiszbach in charge of it. In ZSL and opposition there were also changes. On May 5th 1990 PSL was founded with Roman Bartoszcze in charge of it. Besides there were PPS (Jan Jozef Lipski) and KPN (Leszek Moczulski). Catholic right wing created Zjednoczenie Chrzescijansko-Narodowe, whose leader was Wieslaw Chrzanowski. In Gdansk there was founded Kongres Liberalno-Demokratyczny.

In spite of difficulties and political disputes, the stage of building new democratic Poland was almost finished. In autumn 1990 Lech Walesa was chosen for a president of Poland in the first fully democratic election. The presidential authority was passed over to Walesa by the last president of Polish government abroad Ryszard Kaczorowski. It was in December 1990 in Warsaw.

To sum up, the general transformations were: dissolution of the Warsaw Treaty Organization, introduction of civil rights, privatization, introduction of the democratic presidential elections, taking the authority over by the groups of politicians connected with Solidarity, announcement of Poland as a free and independent country, introduction of the second House of Parliament - senate, come back to the historical name of Poland - Rzeczpospolita Polska.