Three-Year Plan
Encyclopedia
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 history of the People's Republic of Poland
. It succeeded in its primary aim: largely rebuilding Poland from the devastation of the war, as well as in increasing output of Polish industry and agriculture.
. In addition to significant population losses, it suffered catastrophic damage to its infrastructure
during the war; the losses in national resources and infrastructure
amounted to over 30% percent of pre-war potential. Rebuilding of the economy was also made more difficult by the major territorial changes of Poland after World War II
.
The Three-Year Plan was developed and monitored by the Central Planning Office (Centralny Urząd Planowania), a body of the government tasked with creation of economic policy
, and in the early years dominated by a more liberal Polish Socialist Party
(PPS) faction. Among the economists involved in its development was the then CUP director, Czesław Bobrowski. CUP centralized planning for the entire Polish economy was previously broken into separate bodies working on planning for separate branches.
The plan, significantly influenced by the PPS, was designed to create a balance between the private sector
, the public sector
and the cooperatives. Instead of ideology
, commonly stressed by later communist plans, it concentrated on the realistic problems and ways to address them.
On 21 September 1946 the State National Council
(KRN), a Polish communist-dominated unelected Polish parliament
accepted the plan for the Polish economy up to 1949. On 2 July 1947 the newly elected
Sejm
declared that: "The primary goal of the national economy in the years 1947-1949 is to raise the living conditions of working classes
to above the pre-war levels."
The plan as described by the above bodies was designed to develop industry and service sectors, foreign trade and ensure the supply of basic consumer items. The plan specified the size of industrial and agricultural production to be achieved in the following years. In 1949 both the industrial and agricultural productions were to be above the pre-war levels. The industrial output was also to be higher than agricultural output. The plan did not involve creation of new industrial centers, only the rebuilding of the old ones (unless they were over 50% destroyed).
of that time created a new "hero of the working class", Wincenty Pstrowski), where workers were encouraged to work above their quota, the expected increase in industrial output was reached ahead of schedule. However, the agricultural output did not increase as much as predicted, partially due to bad weather in 1947, partially due to inefficiencies involved in collectivization of farming and finally, partially due to side-effects of the battle for trade
, which damaged traditional supply chain
s. In 1948 industrial production was 30% higher compared to 1939, but agricultural production was 30% lower (compared to the 1934-38 period).
The battle for trade, pushed for by Stalinist hardliners like Hilary Minc
, suggested that both the cooperative and private sectors should be eliminated and the public sector should be dominant, assumptions contrary to the foundations of the three-year plan which stated that all three sectors are equal. The battle for trade also resulted in a decrease of the craftmanship sector.
Already in 1949 the stress was moved from consumer goods to producer goods, and light industry
development was slowed. The next plan in the Polish communist economy was the Six-Year Plan
(1950–1956), much more critically assessed by modern historians and economists, as by 1950 the CUP and Polish government were dominated by Stalinist hardliners, and PPS economists responsible for creation of the Three-Year Plan were no longer influencing government policy. The Six-Year Plan, designed to bring the economy of Poland
in line with the Soviet economy, concentrated on heavy industrialization
, with projects such as Nowa Huta
.
Rebuilding of the Polish economy was also slowed in 1947, as Soviet influence caused the Polish government to reject the American-sponsored Marshall Plan
, designed to aid European economies in post-war rebuilding.
With the simultaneous rebuilding of the cities, substantial migration from rural areas to urban centers occurred, increasing urbanization
. Warsaw
and other ruined cities were cleared of rubble and rebuilt with great speed during those years. In 1939, 60% of Poles worked in agriculture and 13% in industry; in 1949, the figures were 47% and 21%, respectively.
The three-year plan is widely considered a success and the only efficient economic plan in the history of People's Republic of Poland
. It succeeded in its primary aim: mostly rebuilding Poland from the devastation of the war, as well as in increasing output of Polish industry and agriculture.
People's Republic of Poland
The People's Republic of Poland was the official name of Poland from 1952 to 1990. Although the Soviet Union took control of the country immediately after the liberation from Nazi Germany in 1944, the name of the state was not changed until eight years later...
. It succeeded in its primary aim: largely rebuilding Poland from the devastation of the war, as well as in increasing output of Polish industry and agriculture.
Development and goals
Poland suffered heavy losses during World War IIWorld War II casualties
World War II was the deadliest military conflict in history. Over 60 million people were killed, which was over 2.5% of the world population. The tables below give a detailed country-by-country count of human losses.-Total dead:...
. In addition to significant population losses, it suffered catastrophic damage to its infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
during the war; the losses in national resources and infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
amounted to over 30% percent of pre-war potential. Rebuilding of the economy was also made more difficult by the major territorial changes of Poland after World War II
Territorial changes of Poland after World War II
The territorial changes of Poland after World War II were very extensive. In 1945, following the Second World War, Poland's borders were redrawn following the decisions made at the Potsdam Conference of 1945 at the insistence of the Soviet Union...
.
The Three-Year Plan was developed and monitored by the Central Planning Office (Centralny Urząd Planowania), a body of the government tasked with creation of economic policy
Economic policy
Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting interest rates and government budget as well as the labor market, national ownership, and many other areas of government interventions into the economy.Such policies are often...
, and in the early years dominated by a more liberal Polish Socialist Party
Polish Socialist Party
The Polish Socialist Party was one of the most important Polish left-wing political parties from its inception in 1892 until 1948...
(PPS) faction. Among the economists involved in its development was the then CUP director, Czesław Bobrowski. CUP centralized planning for the entire Polish economy was previously broken into separate bodies working on planning for separate branches.
The plan, significantly influenced by the PPS, was designed to create a balance between 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...
, the public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
and the cooperatives. Instead of ideology
Ideology
An ideology is a set of ideas that constitutes one's goals, expectations, and actions. An ideology can be thought of as a comprehensive vision, as a way of looking at things , as in common sense and several philosophical tendencies , or a set of ideas proposed by the dominant class of a society to...
, commonly stressed by later communist plans, it concentrated on the realistic problems and ways to address them.
On 21 September 1946 the State National Council
State National Council
Krajowa Rada Narodowa in Polish was a parliament-like political body formed in the late stages of the Second World War in the Soviet Union, as part of the formation of a new Communist Polish government...
(KRN), a Polish communist-dominated unelected Polish parliament
Parliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
accepted the plan for the Polish economy up to 1949. On 2 July 1947 the newly elected
Polish legislative election, 1947
The Polish legislative election of 1947 was held on January 19, 1947 in the People's Republic of Poland. The anti-communist opposition candidates and activists were persecuted and the eventual results were falsified...
Sejm
Sejm
The Sejm is the lower house of the Polish parliament. The Sejm is made up of 460 deputies, or Poseł in Polish . It is elected by universal ballot and is presided over by a speaker called the Marshal of the Sejm ....
declared that: "The primary goal of the national economy in the years 1947-1949 is to raise the living conditions of working classes
Social class
Social classes are economic or cultural arrangements of groups in society. Class is an essential object of analysis for sociologists, political scientists, economists, anthropologists and social historians. In the social sciences, social class is often discussed in terms of 'social stratification'...
to above the pre-war levels."
The plan as described by the above bodies was designed to develop industry and service sectors, foreign trade and ensure the supply of basic consumer items. The plan specified the size of industrial and agricultural production to be achieved in the following years. In 1949 both the industrial and agricultural productions were to be above the pre-war levels. The industrial output was also to be higher than agricultural output. The plan did not involve creation of new industrial centers, only the rebuilding of the old ones (unless they were over 50% destroyed).
Results and assessment
Due to the dedication of substantial resources to industrial rebuilding, and the successful adoption of the Stakhanovite movement (the communist propagandaCommunist propaganda
Communist propaganda is propaganda aimed to advance the ideology of communism, communist worldview and interests of the communist movement.A Bolshevik theoretician, Nikolai Bukharin, in his The ABC of Communism wrote:...
of that time created a new "hero of the working class", Wincenty Pstrowski), where workers were encouraged to work above their quota, the expected increase in industrial output was reached ahead of schedule. However, the agricultural output did not increase as much as predicted, partially due to bad weather in 1947, partially due to inefficiencies involved in collectivization of farming and finally, partially due to side-effects of the battle for trade
Battle for trade
Battle for trade refers to the early period of communist takeover of Poland 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...
, which damaged traditional supply chain
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
s. In 1948 industrial production was 30% higher compared to 1939, but agricultural production was 30% lower (compared to the 1934-38 period).
The battle for trade, pushed for by Stalinist hardliners like 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...
, suggested that both the cooperative and private sectors should be eliminated and the public sector should be dominant, assumptions contrary to the foundations of the three-year plan which stated that all three sectors are equal. The battle for trade also resulted in a decrease of the craftmanship sector.
Already in 1949 the stress was moved from consumer goods to producer goods, and light industry
Light industry
Light industry is usually less capital intensive than heavy industry, and is more consumer-oriented than business-oriented...
development was slowed. The next plan in the Polish communist economy was the Six-Year Plan
Six-Year Plan
Six-Year Plan was the second - after the Three-Year Plan - centralized plan of the People's Republic of Poland. It concentrated on increasing the heavy industry sector. Interestingly, this six year plan has the distinction of covering only 5 years...
(1950–1956), much more critically assessed by modern historians and economists, as by 1950 the CUP and Polish government were dominated by Stalinist hardliners, and PPS economists responsible for creation of the Three-Year Plan were no longer influencing government policy. The Six-Year Plan, designed to bring the economy of Poland
Economy of Poland
The Economy of Poland is a high income economy and is the sixth largest in the EU and one of the fastest growing economies in Europe, with a yearly growth rate of over 3.0% before the late-2000s recession. It is the only member country of the European Union to have avoided a decline in GDP, meaning...
in line with the Soviet economy, concentrated on heavy industrialization
Heavy industry
Heavy industry does not have a single fixed meaning as compared to light industry. It can mean production of products which are either heavy in weight or in the processes leading to their production. In general, it is a popular term used within the name of many Japanese and Korean firms, meaning...
, with projects such as Nowa Huta
Nowa Huta
Nowa Huta - is the easternmost district of Kraków, Poland, . With more than 200,000 inhabitants it is one of the most populous areas of the city.- History :...
.
Rebuilding of the Polish economy was also slowed in 1947, as Soviet influence caused the Polish government to reject the American-sponsored Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...
, designed to aid European economies in post-war rebuilding.
With the simultaneous rebuilding of the cities, substantial migration from rural areas to urban centers occurred, increasing urbanization
Urbanization
Urbanization, urbanisation or urban drift is the physical growth of urban areas as a result of global change. The United Nations projected that half of the world's population would live in urban areas at the end of 2008....
. Warsaw
Warsaw
Warsaw is the capital and largest city of Poland. It is located on the Vistula River, roughly from the Baltic Sea and from the Carpathian Mountains. Its population in 2010 was estimated at 1,716,855 residents with a greater metropolitan area of 2,631,902 residents, making Warsaw the 10th most...
and other ruined cities were cleared of rubble and rebuilt with great speed during those years. In 1939, 60% of Poles worked in agriculture and 13% in industry; in 1949, the figures were 47% and 21%, respectively.
The three-year plan is widely considered a success and the only efficient economic plan in the history of People's Republic of Poland
People's Republic of Poland
The People's Republic of Poland was the official name of Poland from 1952 to 1990. Although the Soviet Union took control of the country immediately after the liberation from Nazi Germany in 1944, the name of the state was not changed until eight years later...
. It succeeded in its primary aim: mostly rebuilding Poland from the devastation of the war, as well as in increasing output of Polish industry and agriculture.
See also
- The Fourth and Fifth Plans of USSR which were aimed at rebuilding USSR after World War II
- Eastern Bloc economiesEastern Bloc economiesAfter the Soviet Union's occupation of much of the Eastern Bloc during World War II, Soviet leader Joseph Stalin implemented socioeconomic transformations of each of the Eastern Bloc economies that comported with the Soviet Communist economic model...
Further reading
- Stanley J. Zyzniewski, The Soviet Economic Impact on Poland, American Slavic and East European Review, Vol. 18, No. 2 (Apr., 1959), pp. 205–225, JSTOR
- Werner Stark, The Political Element in the Development of Economic Theory:, Routledge, 1998, ISBN 0-415-17535-6, Google Print, p.60-