Eastern Galicia in the Polish Economic System Between the Two World Wars

Abstract

The article reviews the economic development of Eastern Galicia between the two World Wars. The organization and main branches of the economy are analyzed. The study method was based on the principles of historical science, logic, scientific objectivity in the evaluation of the past and a critical approach towards the available sources and historiography.
 As a result of the warfare in 1914–1921, Eastern Galicia suffered great destruction. After the war, it had to rebuild its economy and adapt to the needs of the new state. The region’s entrepreneurs almost lost contact with companies from other parts of the former Austria-Hungary: trade with the East decreased. The policy of the central government limited the economic opportunities of Eastern Galicia.
 The region’s economy was dominated by agriculture. For the majority of Ukrainian farmers who lacked land, a land reform was the most important issue. However, the unwillingness of the Polish authorities to solve the agrarian problems of Ukrainians led to conflicts. The only possible way for Galician farmers to use economic opportunities was through cooperation, which was successfully developing.
 However, Eastern Galicia was not only an agrarian region of the inter-war Poland. It was a hub for important branches of the country’s industry. Significant war damage and the instability of Polish finances until the mid-1920s hindered its development, though. Only in 1928 did the industry reach its prewar levels. A year later, the global economic crisis leveled the previous achievements.
 Before the war, the most important industries were dominated by entrepreneurs from Austria and Germany. After the revival of Poland, it was impossible to leave this state of affairs as it was. For example, in the oil industry, French capital replaced German and Austrian capital. The development of industry in eastern Galicia was also hampered by the lack of a clear state policy and the lack of a real organization of individual industries.