Economic Transition and Elections in Poland

Poland’s economic and political transition, one of the most successful transitions, has depended very heavily on the job creation in new firms to replace the jobs lost in the formerly state-owned enterprises. This uses evidence from both survey and aggregate data to analyze four Polish elections during the transition. These analyses indicate that these de novo firms, the individuals they employ, and the residents in the local areas where they exist become an important constituency supporting pro-reform political parties and constraining the actions of parties less sympathetic to the reforms. The creation of this political constituency helps explain how countries can successfully pursue both economic and political reforms.