Located in the heart of Europe, Poland's low-lying plains extend from the Baltic shore in the north to the Tatra Mountains on its southern border with Slovakia. Since the collapse of communism, Poland has undergone massive social, economic, and political change. Opting for a radical form of economic "shock therapy" in the early 1990s to kick-start the switch to a market economy, it has experienced rapid growth, is one of the front runners in negotiations to join the EU, and has already been accepted as a member of NATO.

Poland has a strongly Roman Catholic population, and there is little ethnic diversity. The Church believes that stronger links with the West, especially through joining the EU, will weaken its influence. Abortion is still a major issue, and attempts to liberalize the law in 1996 were overturned by the Constitutional Tribunal.

Some small ethnic groups have opened schools and cultural and religious centers. Others, particularly the Germans in Silesia, are becoming more assertive. Jews are still resentful of past discrimination, and there is some evidence of residual antisemitism at a high level. Disputes over the special significance of the site of the Auschwitz concentration camp, near Kraków, has caused conflict between Jews and Catholics.

Wealth disparities are small, although the growing wealth of the entrepreneurial class is causing tension. The major political parties on left and right agree on continuing economic reform.

Strengths

Restructuring of loss-making coal industry began in 1998. Successful privatizations accelerated again in late 1990s. High rates of foreign investment reflect status as largest market in central Europe. Modernization of electricity supply and oil refining. Booming construction industry.

Weaknesses

Agriculture suffers from overmanning, tiny farms, and lack of investment. Compensation for communist-era property expropriations unresolved. Heavy industries not competitive.

Profile

After a decade of economic crisis, the postcommunist government in 1990 drove through the most determined plan in the whole region to make the transition to a market economy. Most prices were freed, trade was opened and the zloty was made convertible. Economic growth and foreign investment soared, especially after Western creditors agreed to cancel half of the country's foreign debt in 1994. Poland now attracts the most foreign capital in central and eastern Europe.

There are still large-scale heavy industrial plants left over from the communist era, but some have been converted or reorganized successfully. Many state farms have been liquidated, but agricultural efficiency is improving only slowly. 26% of the workforce is employed in farming.

Economic growth slowed at the end of the 1990s, but was back to 4% in 2000. Inflation has remained high and unemployment hit a postcommunist record level in 2002.

Since 1989, Poland has been a multiparty parliamentary democracy.

Profile

From 1993 until 1997, successive governments were formed by the reformed communists of the SLD and the PSL, which pursued a policy of market reforms. Aleksander Kwasniewski, leader of the SLD, was elected president in 1995, and reelected in 2000. More right-wing groups held sway for the 1997– 2001 parliamentary term, with Jerzy Buzek, a member of Solidarity since its formation in 1980, as prime minister. His Solidarity Electoral Action (AWS) alliance, a right-wing grouping with vocal Catholic and nationalist elements, formed a coalition with the liberal Freedom Union (UW). A threatened split in early 1999 over controversial health service reforms was averted, but further contentious issues led to the withdrawal of the UW in May 2000. The AWS remained in office thereafter as a minority government. Buzek, who resisted pressure for early elections, came under attack from within the AWS itself.

In May 2001 the Solidarity trade union wing voted to withdraw from politics, and AWS lost all its seats in the legislative elections that September. A new left-of-center coalition was brought together under former communist Leszek Miller.

Main Political Issues

Coalition rule

Poland's emerging party system has been hindered by a superfluity of political factions, and sustaining coalitions has proved difficult. Parties are required to have at least 5% of the vote in order to gain a seat and 8% to be eligible to join a coalition government.

Church–state relations

The Catholic Church has been outspoken in its views on social and political policy. Debates over abortion, worship in schools, and values in the media have fueled a heated dialogue over the proper role of the Church. Abortion laws were eased in 1996 until the Constitutional Tribunal ruled that this move was unconstitutional.

Poland has good relations with the Baltic states and other countries of central Europe. It was admitted to NATO in 1999, and is among the region's "first wave" of applicants to join the EU, hoping for accession in 2004. A treaty has been signed with Germany recognizing the postwar border. The EU wants tighter controls along the eastern border with Belarus and Ukraine.

Poland joined NATO in March 1999. Its standing army is among the largest in Europe, and there are also large paramilitary units, including border guards. A 15-year program to modernize the armed forces was introduced by the government in 1997. A civilian alternative to military service was first offered in 1998, and military service was reduced from 18 months to a year from 1999.

Poland has significant quantities of coal, sulfur, copper, natural gas, silver, lead, and salt. It aims to achieve self-sufficiency and eventually to export fuels; plans are in place to privatize the fuel and energy industries. Coal supplies two-thirds of electricity generation. The amounts of copper ores mined is too small to affect world markets.

Pollution problems are serious, but improving. Upper Silesia and the Kraków area are still badly affected, but industry there only emits a third of the pollutants it emitted in 1990. Now that much heavy industry has been cleaned up or closed down, there is more concern about small factories, domestic coal fires, and the increased use of private cars.

Water pollution is a major problem, mainly from untreated sewage and industrial discharges. Rivers flowing into the Baltic are badly affected by nitrates and phosphates used in farming. Polish standards, themselves widely disregarded, need to be raised to meet EU minimum requirements.

The national airline LOT has increased its charter business as more middle-class Poles vacation abroad. Russian aircraft have all been replaced with Western models. A 15-year roads expansion program was begun in 1997. "Fast tram" systems for cities and long-distance high-speed rail links need major investment.

Telecommunications have been affected by the advent of mobile phones, and the privatization of Telekomunikacja Polska and the end of its monopoly on long-distance calls. The government plans to slim down the rail workforce and to commercialize and part-privatize Polish State Railways (PKP) by 2003.

Fundamental reforms introduced in 1999 created a "market" health system, giving patients the right to choose where to go for treatment. Intended to be decentralized and less bureaucratic, the new system was confusing for some patients, with hospitals and doctors competing for business. Medical care is free for most people, but there are now a number of private health clinics.

Education is free and compulsory for eight years from the age of seven. A standard curriculum is followed in all schools. Despite the high official literacy figures, a relatively large proportion of school-leavers still lack basic skills. At upper secondary level, exam-based selection separates the academic, technical, and vocational schools. Public spending on education fell in real terms in the 1990s. Since 1989 the Roman Catholic Church has been allowed to operate schools. Most of the almost 140 higher education institutions offer business-related courses.

Smuggling is the most significant problem, and Warsaw is a main center for this. Expensive cars are transferred eastward to Russia and drugs westward to Berlin. A National Remembrance Institute was set up in mid-2000 to investigate and prosecute the communist- and Nazi-era crimes of 1939–1989.

Market reforms have led to some structural unemployment, and the inevitable hardship that this represents. More restructuring of heavy industry is planned. Pensioners have enjoyed benefits amounting to a higher percentage of GDP than in most countries, but state cutbacks are making private pensions more necessary.

Despite environmental problems, Poland is renowned for its skiing and hiking, especially in the Tatra Mountains. Kraków's medieval core has been preserved, while Torun has restored its historic German Hanseatic buildings.

Warsaw's historic center has been reconstructed following the destruction of 80% of it by the German army in 1944. More hotels and restaurants are being opened.

Poznan has exploited its location between Warsaw and Berlin to create an international exhibition and business convention industry.

Airlines have increased their flights from the West to take advantage of the country's tourist potential.

Poland has Europe's second-oldest written constitution. In 1795, it was partitioned between Austria-Hungary, Prussia, and Russia.

• 1918 Polish state recreated.
• 1921 Democratic constitution.
• 1926–1935 Pilsudski heads military coup. Nine years of authoritarian rule.
• 1939 Germany invades and divides Poland with Russia.
• 1941 First concentration camps built on Polish soil.
• 1944 Warsaw Uprising.
• 1945 Potsdam and Yalta Conferences set present borders and determine political allegiance to Soviet Union.
• 1947 Communists manipulate elections to gain power.
• 1956 More than 50 killed in rioting in Poznan.
• 1970 Food price increases lead to strikes and riots in the Baltic port cities. Hundreds are killed.
• 1979 Cardinal Karol Wojtyla of Kraków is elected pope and takes the name of John Paul II.
• 1980 Strikes force the government to negotiate with the Solidarity union. Resulting Gdansk Accords grant the right to strike and to form free trade unions.
• 1981 Gen. Wojciech Jaruzelski becomes prime minister.
• 1981–1983 Martial law. Solidarity forced into underground existence. Many of its leaders, including Lech Walesa, are interned.
• 1983 Walesa awarded Nobel Peace Prize.
• 1986 Amnesty for political prisoners.
• 1987 Referendum rejects government austerity program.
• 1988 Renewed industrial unrest.
• 1989 Ruling party holds talks with Solidarity, which is relegalized. Partially free elections are held. First postwar noncommunist government formed.
• 1990 Launch of market reforms. Walesa elected president.
• 1991 Free elections lead to fragmented parliament.
• 1992 Last Russian troops leave.
• 1993 Elections. Reformed communists head coalition government.
• 1994 Launch of mass privatization.
• 1995 Leader of reformed communists Aleksander Kwasniewski is elected president.
• 1996 Historic Gdansk shipyard declared bankrupt and closed down.
• 1997 April, Parliament finally adopts new postcommunist constitution. September, legislative elections end former communist majority with big swing to AWS coalition. December, EU agrees to open membership negotiations.
• 1999 Joins NATO.
• 2001 Elections, AWS routed. Left-of-center coalition headed by Leszek Miller.