


Background: Poland is an ancient nation that was conceived near the middle of the 10th century. Its golden age occurred in the 16th century. During the following century, the strengthening of the gentry and internal disorders weakened the nation. In a series of agreements between 1772 and 1795, Russia, Prussia, and Austria partitioned Poland amongst themselves. Poland regained its independence in 1918 only to be overrun by Germany and the Soviet Union in World War II. It became a Soviet satellite state following the war, but its government was comparatively tolerant and progressive. Labor turmoil in 1980 led to the formation of the independent trade union "Solidarity" that over time became a political force and by 1990 had swept parliamentary elections and the presidency. A "shock therapy" program during the early 1990s enabled the country to transform its economy into one of the most robust in Central Europe, but Poland still faces the lingering challenges of high unemployment, underdeveloped and dilapidated infrastructure, and a poor rural underclass. Solidarity suffered a major defeat in the 2001 parliamentary elections when it failed to elect a single deputy to the lower house of Parliament, and the new leaders of the Solidarity Trade Union subsequently pledged to reduce the Trade Union's political role. Poland joined NATO in 1999 and the European Union in 2004. With its transformation to a democratic, market-oriented country largely completed, Poland is an increasingly active member of Euro-Atlantic organizations.
Location: Central Europe, east of Germany
Geographic coordinates: 52 00 N, 20 00 E
Area: total: 312,685 sq km
land: 304,465 sq km
water: 8,220 sq km
Climate: temperate with cold, cloudy, moderately severe winters with frequent precipitation; mild summers with frequent showers and thundershowers
Natural resources: coal, sulfur, copper, natural gas, silver, lead, salt, amber, arable land
Population: 38,518,241 (July 2007 est.)
Ethnic groups: Polish 96.7%, German 0.4%, Belarusian 0.1%, Ukrainian 0.1%, other and unspecified 2.7% (2002 census)
Religions: Roman Catholic 89.8% (about 75% practicing), Eastern Orthodox 1.3%, Protestant 0.3%, other 0.3%, unspecified 8.3% (2002)
Languages: Polish 97.8%, other and unspecified 2.2% (2002 census)
Capital name: Warsaw
geographic coordinates: 52 15 N, 21 00 E
time difference: UTC+1 (6 hours ahead of Washington, DC during Standard Time)
daylight saving time: +1hr, begins last Sunday in March; ends last Sunday in October
Administrative divisions: 16 provinces (wojewodztwa, singular - wojewodztwo); Dolnoslaskie wojewodztwo, Kujawsko-Pomorskie wojewodztwo, Lodzkie wojewodztwo, Lubelskie wojewodztwo, Lubuskie wojewodztwo, Malopolskie wojewodztwo, Mazowieckie wojewodztwo, Opolskie wojewodztwo, Podkarpackie wojewodztwo, Podlaskie wojewodztwo, Pomorskie wojewodztwo, Slaskie wojewodztwo, Swietokrzyskie wojewodztwo, Warminsko-Mazurskie wojewodztwo, Wielkopolskie wojewodztwo, Zachodniopomorskie wojewodztwo
National holiday: Constitution Day, 3 May (1791)
Flag description: two equal horizontal bands of white (top) and red; similar to the flags of Indonesia and Monaco which are red (top) and white
Political parties and leaders: Catholic-National Movement or RKN [Antoni MACIEREWICZ]; Civic Platform or PO [Donald TUSK]; Conservative Peasants Party or SKL [Artur BALASZ]; Democratic Left Alliance or SLD [Wojciech OLEJNICZAK]; Democratic Party or PD [Janusz ONYSZKIEWICZ]; Dom Ojczysty (Fatherland Home); German Minority of Lower Silesia or MNSO [Henryk KROLL]; Law and Justice or PiS [Jaroslaw KACZYNSKI]; League of Polish Families or LPR [Roman GIERTYCH]; Peasant-Democratic Party or PLD [Roman JAGIELINSKI]; Polish Accord or PP [Jan LOPUSZANSKI]; Polish Peasant Party or PSL [Waldemar PAWLAK]; Ruch Patriotyczny or RP [Jan OLSZEWSKI]; Samoobrona or SO [Andrzej LEPPER]; Social Democratic Party of Poland or SDPL [Marek BOROWSKI]; Social Movement or RS [Krzysztof PIESIEWICZ]; Union of Labor or UP [Andrzej SPYCHALSKI]
Economy - overview: Poland has steadfastly pursued a policy of economic liberalization since 1990 and today stands out as a success story among transition economies. In 2006, GDP grew 5.3%, based on rising private consumption, a 16.7% jump in investment, and burgeoning exports. Poland today has a thriving private sector which created more than 300,000 new jobs during 2006 alone. GDP per capita roughly equals that of the three Baltic states. Consumer price inflation - at 1.3% in 2006 - remains among the lowest in the EU. Since 2004, EU membership and access to EU structural funds has provided a major boost to the economy. Inflows of direct foreign investment exceeded $10 billion in 2006 alone - and more than $100 billion since 1990 - with major investments being announced by foreign firms in computer, consumer electronics, and automobile component production. In early 2006, Poland reached agreement with its EU partners that will permit it to benefit from EU funds totaling nearly $80 billion during 2007-13. Since 2002, even though the zloty appreciated 30%, Poland's exports more than doubled. Despite Poland's successes, more remains to be done. Unemployment, which stood at 15% in December 2006, is still the highest in the EU. An inefficient commercial court system, a rigid labor code, bureaucratic red tape, and persistent corruption keep the private sector from performing to its potential. Agriculture is handicapped by inefficient small farms and inadequate investment. Restructuring and privatization of the remaining state-owned industries, especially "sensitive sectors" such as coal, oil refining, railroads, and energy transmission and generation, have stalled due to concerns about loss of control over critical national assets and lay-offs. Reforms in health care, education, the pension system, and state administration have failed so far to reduce the government budget deficit, which was roughly 2.7 percent of GDP in 2006. Further progress in public finance depends mainly on reducing losses in Polish state enterprises, restraining entitlements, and overhauling the tax code. The previous Socialist-led government introduced a package of social and administrative spending cuts to reduce public spending by about $17 billion through 2007, but full implementation of the plan was trumped by election-year politics in 2005. The right-wing Law and Justice party won parliamentary elections in September 2005, and Lech KACZYNSKI won the presidential election in October, running on a state-interventionist fiscal and monetary platform. The new government has proceeded cautiously on economic matters, however, retaining, for example, the corporate income tax cuts initiated by the previous administration and indicating its intention to reduce the top personal income tax rate.