Systemic transformation in Poland and Eastern Germany: two versions of the Social Market Economy?

Abstract

Motivation: The process of systemic transformation in the countries of Central and Eastern Europe, including Poland and Eastern Germany, which began in the early 1990s, can be described as a unique event in the entire economic history of the world. Therefore, in a situation where it was necessary to decide on the model and pace of stabilization, it was difficult to refer to the experience of other countries. The 30 years that have passed since the beginning of the systemic transformation in Poland and East Germany have been a convenient time to assess the course of the transformation process, the changes that have taken place in these economies, and describe the economic models that have shaped them. The reason for this lies in the importance of this subject and the consequences which the countries of Central and Eastern Europe, including Poland and East Germany, continue to face. Parts of this paper were written as part of Statutory Research at the College of World Economy of the Warsaw School of Economics in 2020, 30 years after the system transformation: lessons and current challenges for the economy in Germany and Poland.
 Aim: The article aims to compare the course and consequences of the systemic transformation in Poland and East Germany, highlight subconsciousness and differences, and determine to what extent the shape of the economic system meets the assumptions of the Social Market Economy.
 Results: The primary added value of the article is a comparative analysis of the Polish and East German systemic transformation from the perspective of 30 years from its beginning, its successes and failures and a reference to the assumptions of the social market economy, as well as an attempt to answer the question about the contemporary characteristics of both economies.