Poland and the World Bank

The World Bank was an extremely important source of financing because foreign capital was skeptical of Poland’s political and economic stability and its transition to a capitalist economy necessarily entailed the scaling back of state-directed investment.

[2] During the transition, the World Bank designed programs consistent with the International Monetary Fund’s contemporary macroeconomic principles.

SAL along with a series of loans that targeted narrower focuses like infrastructure and agriculture, supported the Polish government as it instituted “shock therapy.”[3]  Drawing heavily from the Washington Consensus, the ETP lifted price controls, liberalized imports, devalued the zloty, and employed restrictive credit policies.

In the WBG’s Performance Audit result, it found that SAL succeeded in restoring Poland’s credit worthiness, establishing the foundation of a market economy, and controlling inflation.

Despite reporting these successes, the WBG raised concerns regarding Poland’s falling output, high unemployment, and growing inequality.

[7] In response, the World Bank has supported numerous clean energy, pollution management, and environmental projects in Poland.

The IBRD has primarily worked with Poland in pollution management and environmental health, infrastructure services for private sector development, and the restructuring of state-owned enterprises.

In 2010, MIGA issued guarantees which totaled 3.7 million USD to Dutch firm Linx Telecommunications and its Polish subsidiary Warsaw DC.