Battle for trade
Encyclopedia
Battle for trade refers to the early period of communist takeover of Poland
(1946–49) when new laws and regulations succeeded in significantly decreasing the size of the private sector
in Polish trade, in order to facilitate the transformation of Polish economy from capitalism
to Soviet
communism
's planned economy
. The private shops were nationalized or closed, and government-owned chains (Państwowe Domy Handlowe) and cooperative
s were created to replace them; this was however inefficient as more shops were closed than opened and led to lasting difficulties for Polish people in obtaining consumer goods.
The 'battle' began when Polish communist Hilary Minc
proposed and succeeded in passing a series of reforms during the 1947 Polish Workers Party congress accompanying the Three-Year Plan
. On 13–14 April the 1947 congress of the Polish Workers Party accepted that direction.
On 2 June 1947 new laws were passed to help the government in the 'battle':
This new legislation allowed the government to accuse many shopkeepers of sabotage
, imprison them and nationalise their enterprises. The name itself, 'battle for trade', was introduced by Polish communist propaganda
, to denote the importance and urgency of the fight against 'capitalist speculators and saboteurs'.
The number of private retail shops fell from 150,000–185,000 in 1946 (numbers vary) through 131,000 in 1947 to 58,000–70,000 in 1949. Wholesale
stores fell from 3300 to 1100. By 1953 only 7% of shops in Poland remained in private hands (about 14,000 in 1955); 75% of craftsmen's workshops were closed or nationalized (to 80,000).
Since many fewer government-run shops were opened, it marked the beginning of the shortage economy
, as people found it increasingly difficult to find a shop with items of everyday use.
All Polish businesses that employed more than 50 staff were nationalized in 1948.
History of Poland (1945–1989)
The history of Poland from 1945 to 1989 spans the period of Soviet Communist dominance imposed after the end of World War II over the People's Republic of Poland...
(1946–49) when new laws and regulations succeeded in significantly decreasing the size of the private sector
Private sector
In economics, the private sector is that part of the economy, sometimes referred to as the citizen sector, which is run by private individuals or groups, usually as a means of enterprise for profit, and is not controlled by the state...
in Polish trade, in order to facilitate the transformation of Polish economy from capitalism
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
to Soviet
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
communism
Communism
Communism is a social, political and economic ideology that aims at the establishment of a classless, moneyless, revolutionary and stateless socialist society structured upon common ownership of the means of production...
's planned economy
Planned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
. The private shops were nationalized or closed, and government-owned chains (Państwowe Domy Handlowe) and cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
s were created to replace them; this was however inefficient as more shops were closed than opened and led to lasting difficulties for Polish people in obtaining consumer goods.
The 'battle' began when Polish communist Hilary Minc
Hilary Minc
Hilary Minc – born into a middle-class Jewish family of Oskar Minc and Stefania née Fajersztajn – was a communist politician in Stalinist Poland and pro-Soviet Marxist economist. Minc joined the Communist Party of Poland before World War II...
proposed and succeeded in passing a series of reforms during the 1947 Polish Workers Party congress accompanying the Three-Year Plan
Three-Year Plan
The Three-Year Plan of Reconstructing the Economy was a centralized plan created by the Polish communist government to rebuild Poland after the devastation of the Second World War. Carried out in the years 1947-1949, it is widely considered a success and the only efficient economic plan in the...
. On 13–14 April the 1947 congress of the Polish Workers Party accepted that direction.
On 2 June 1947 new laws were passed to help the government in the 'battle':
- on fighting high prices and excessive profit in trade (maximum prices were introduced by Biuro Cen, and owners of shops where prices were found higher than maximum were subject to a high fine and five years of imprisonment when found by a special commission (The Special Commission for Counteracting Frauds and Profiteering — Komisja Specjalna do Walki ze Spekulacją i Nadużyciami))
- new fines or taxes (domiary) were levied on the private sector, applicable when government officials found that the private business was generating higher revenues than declared
- on citizens tax commissions and social controllers (Społeczne Komitety Kontroli Cen)
- on concessionContractual rightsA contractual right is a claim, on other persons, that is acknowledged and perhaps reciprocated among the principals associated with that claim...
s to run trade and building enterprises - private shops were banned in centers of large cities
- private shops were banned from trading certain goods
- merchants' organizations were disbanded
This new legislation allowed the government to accuse many shopkeepers of sabotage
Sabotage
Sabotage is a deliberate action aimed at weakening another entity through subversion, obstruction, disruption, or destruction. In a workplace setting, sabotage is the conscious withdrawal of efficiency generally directed at causing some change in workplace conditions. One who engages in sabotage is...
, imprison them and nationalise their enterprises. The name itself, 'battle for trade', was introduced by Polish communist propaganda
Propaganda
Propaganda is a form of communication that is aimed at influencing the attitude of a community toward some cause or position so as to benefit oneself or one's group....
, to denote the importance and urgency of the fight against 'capitalist speculators and saboteurs'.
The number of private retail shops fell from 150,000–185,000 in 1946 (numbers vary) through 131,000 in 1947 to 58,000–70,000 in 1949. Wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
stores fell from 3300 to 1100. By 1953 only 7% of shops in Poland remained in private hands (about 14,000 in 1955); 75% of craftsmen's workshops were closed or nationalized (to 80,000).
Since many fewer government-run shops were opened, it marked the beginning of the shortage economy
Shortage economy
Shortage economy is a term coined by the Hungarian economist, János Kornai. He used this term to criticize the old centrally-planned economies of the communist states of the Eastern Bloc...
, as people found it increasingly difficult to find a shop with items of everyday use.
All Polish businesses that employed more than 50 staff were nationalized in 1948.
Further reading
- Padraic KenneyPadraic KenneyPadraic Jeremiah Kenney is a professor of history at Indiana University.He is the author of several books on East European history and politics; his area of specialization is social change and political change...
, Rebuilding Poland: Workers and Communists, 1945-1950, Cornell University Press, 1997, ISBN 0801432871