Social Transfers and Inequality During the Polish Transition

In general, most countries of the former Eastern bloc have experienced poor growth performance and large increases in income inequality during the transition process. The most obvious success story in the process of transition to date has been Poland, which has outstripped other transition economies in terms of growth performance, while at the same time experiencing only modest increases in inequality. Hence, a detailed analysis of the Polish experience, with a view toward asking what the country did right, is of considerable interest.