The Nature of Capitalism in Poland. Controversy over the Economy since the end of 2015: The Prospects of Business Elite and Employer Associations

Abstract

The article characterizes the main directions of changes in economic policy and the institutional transformation introduced by the Law and Justice party government in Poland since the end of 2015. This issue is analyzed in the perspective of the Varieties of Capitalism (VoC) approach applied to post-communist countries of Central and Eastern Europe (CEE), with particular regard to industrial relations (IR) and the controversy which the new government's policy is raising among the Polish business elite and leaders of the largest national employers' associations. The secondary role of such associations in post-communist transformation in CEE and efforts to systemic change the direction of reforms undertaken in Poland since the early 1990s has been presented. New relationships between government and business have been explored, as well as attempts to re-shape the system of economic representation, including employers' associations. The Polish example confirms the weakness of entrepreneurs and new middle classes in CEE societies. This weakness is one of the factors favoring neo-etatist, populist and authoritarian tendencies, not only in Hungary and Poland.