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About: Balcerowicz Plan     Goto   Sponge   NotDistinct   Permalink

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The Balcerowicz Plan (Polish: plan Balcerowicza), also termed "Shock Therapy", was a method for rapidly transitioning from an economy based on state ownership and central planning, to a capitalist market economy. A group of experts, which they formed together with Balcerowicz, including Dr. Stanisław Gomułka, Dr. Stefan Kawalec and Dr. Wojciech Misiąg, in September 1989 created a reform plan based on an earlier idea of prof. Jeffrey Sachs, and on October 6, an outline of this plan was presented to the public by Balcerowicz at a press conference broadcast by TVP.