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- <text id=89TT2097>
- <title>
- Aug. 14, 1989: Poland:To The Brink--And Back Again
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1989
- Aug. 14, 1989 The Hostage Agony
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- WORLD, Page 38
- POLAND
- To the Brink -- and Back Again
- </hdr><body>
- <p>The Sejm barely agrees on a new Prime Minister as price hikes
- threaten trouble
- </p>
- <p> If politicians had their own Academy Awards, the statuette
- for cliff-hanger scenarios would certainly go to Poland. Last
- week the Sejm, the governing lower house of Parliament, tackled
- the task of electing a Prime Minister to head the new
- government. President Wojciech Jaruzelski chose Interior
- Minister Czeslaw Kiszczak for the post. But Kiszczak ran into
- such fierce resistance from both the Solidarity opposition and
- some legislators allied with the Communists that frantic
- politicking continued right down to the wire. Communist leaders
- pressured their rebellious allies within the United Peasant
- Alliance, offering important positions and threatening to
- retract privileges. The tactics paid off. When the vote was
- counted Wednesday, Kiszczak emerged on top: 237 to 173, with ten
- abstentions.
- </p>
- <p> Thus Poland once again strode to the brink of a political
- abyss, then pulled back. Legislators opted to make the best of
- the bargain struck at the round-table talks three months ago,
- when Communist Party and Solidarity leaders agreed on the broad
- outlines of a program for achieving political pluralism and a
- more open economy. That meant, among other things, a
- continuation of Communist Party rule. Acceptance of the scheme
- has been grudging at best, and its future course is anything but
- certain. The delicate political balance is threatened by
- radicals within Solidarity who are itching to leave the
- opposition benches and lay claim to the popular mandate the
- trade union won in the June 4 legislative elections, when it
- captured all 161 seats open to it in the Sejm and 99 out of the
- 100 Senate seats. The economic experiment also faces challenges.
- Last week, as a monthlong wage-and-price freeze was lifted,
- prices doubled and even trebled.
- </p>
- <p> Given the inherent frictions between the Communists and the
- opposition, it is questionable whether any Communist candidate
- for Prime Minister would have coasted to victory. Even so, some
- Solidarity legislators found Kiszczak, 63, particularly tough
- to take. During his eight-year tenure as Interior Minister,
- Kiszczak controlled the police and paramilitary forces and was
- responsible for hunting down and jailing Solidarity activists
- during the martial-law crackdown that began in 1981. Many of
- those activists are now seated in the Sejm.
- </p>
- <p> But Kiszczak's experience at quelling unrest may be a
- primary reason why Jaruzelski pushed his candidacy. The
- seriousness of Poland's economic crisis cannot be overstated:
- labor unrest is growing, industrial production falling and
- annual inflation galloping along at 150%. Perhaps most serious
- of all, basic food staples are in short supply, a fact
- underscored last week by President Bush's announcement that the
- U.S. will provide Poland with a special $59 million food-aid
- package. The urgency is not lost in Warsaw. "If the future
- government does not find effective means to change this
- situation," Kiszczak warned in his acceptance speech, "the
- country will be threatened by a catastrophe, a catastrophe that
- might lead to more than just a change of government."
- </p>
- <p> Tough policies more than tough talk will be needed to
- overhaul the economy. A World Bank report shows that state
- subsidies in Poland have grown alarmingly in recent years, and
- now amount to 30% of budget expenditures. To continue the
- supports is to risk bankruptcy. Yet removing them could create
- just the sort of hardship that provoked violent unrest in the
- past, leading to the downfall of governments in 1956, 1970 and
- again in 1980, the year Solidarity was born.
- </p>
- <p> Last week's decision by the outgoing government to abandon
- rationing and other controls immediately and permit market
- forces to control prices had lightning impact: the cost of bread
- soared 100%, milk nearly 300% and some cuts of meat more than
- 400%. But the move brought no quick improvement in food supplies
- because prices and incomes had been frozen throughout July, and
- Poles, aware that sharp increases loomed, had cleared store
- shelves of most commodities.
- </p>
- <p> So far, grumbling has been kept to a minimum. The blow has
- been softened by a rise of more than 100% in wages in the past
- twelve months; with too much money chasing too few goods, large
- amounts of cash are waiting to be soaked up. Moreover, workers
- and pensioners will be cushioned from the impact of diminishing
- subsidies by cost of living adjustments. Still, consumer
- stoicism is likely to evaporate quickly if the new market policy
- fails to improve supplies of foodstuffs and prices continue to
- rise.
- </p>
- <p> And worse may be yet to come. To restructure the country's
- antiquated industry, Poland must abandon many of the concepts
- that have governed the economy for 40 years. Inefficient mines,
- mills and factories will have to be closed. Unemployment will
- have to be tolerated. So will growing differentials in wages and
- living standards. Hardest of all for party members will be the
- loss of cradle-to-grave security.
- </p>
- <p> To realize such sweeping changes, the Communist Party must
- secure the cooperation not only of Solidarity but of its own
- allies as well. However, as last week's threatened defection by
- the Peasants demonstrated, there is growing impatience with the
- compromise implicit in the round-table agreement. Observed the
- Solidarity daily Gazeta Wyborcza in an editorial: "Society does
- not understand why the new Cabinet, which would like to call
- itself a government of national salvation, should be headed by
- a representative of a party responsible for creating the
- situation from which society must be saved."
- </p>
- <p> Events may yet force Solidarity off the back benches. Given
- the vast voter disillusionment exposed by the June elections,
- Kiszczak's government may be nothing more than an interim
- administration. Though elections are four years off, it is
- quite possible that barring a coup or some other
- unconstitutional act, Poland could bury Communism within a year.
- Then -- ready or not -- Solidarity may find itself at the helm,
- hunting for a way out of Poland's economic morass.
- </p>
-
- </body></article>
- </text>
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