The Communist regime in Poland has succeeded in industrializing the economy and in transforming social structure, but it has done so in pursuit of values which were in conflict with those of As a result, the Party has been unable to institutionalize the self-sustained, innovative growth characteristic of a mature industrial economy. The conflict has necessitated an increasing accommodation by the Party to the demands of civil society, and greater legitimacy has been sought through the development of a welfare state. Internal contradictions in the structure of Polish society (and in particular, the weak basis of the upper class) make it difficult for reforms to succeed in producing the economic growth necessary for increasing levels of welfare. The increasing tendency towards technocratization of the Party and state apparatus may be seen as a functional alternative to decentralization and a marketoriented economy, this being a way of meeting consumer demand without altering the power structure of Polish society. The Socio-Historic Background As is well known, the Eastern European societies which underwent a socialist transformation did not correspond to the kind of society for which theory predicted a socialist revolution, and Poland was no exception. Interwar Polish society was predominantly rural and traditional, the leading social force of the country being the landed aristocracy, who controlled large parts of the tillable land. The countryside was underdeveloped, poor, and suffered from substantial overpopulation. To a large degree, existing industry was in the hands of foreign interests; for example, it is estimated that in 1937 over 40 percent of the capital in joint stock companies was foreign owned (Petit Annuaire Statistique de la Pologne). Urban unemployment was also quite substantial; thus, in 1937, 24 percent of the workers and 13 percent of the white collar employees were unemployed (Kalecki). Consequently, the small industrial sector could not employ the urban population and could even less serve as an outlet for superfluous manpower from the countryside. One reason for this situation was that the landed aristocracy showed