section_path: Socio-economic effects/Poland
section_name: Poland
paragraph_text: Poland
  
  Poland was affected by the Great Depression longer and stronger than other countries due to inadequate economic response of the government and the pre-existing economic circumstances of the country. At that time, Poland was under the authoritarian rule of Sanacja, whose leader, Józef Piłsudski, was opposed to leaving the gold standard until his death in 1935. As a result, Poland was unable to perform a more active monetary and budget policy. Additionally, Poland was a relatively young country that emerged merely 10 years earlier after being partitioned between German, Russian and the Austro-Hungarian Empires for over a century. Prior to independence, the Russian part exported 91% of its exports to Russia proper, while the German part exported 68% to Germany proper. After independence, these markets were largely lost, as Russia transformed into USSR that was mostly a closed economy, and Germany was in a tariff war with Poland throughout the 1920s.
  
  Industrial production fell significantly: in 1932 hard coal production was down 27% compared to 1928, steel production was down 61%, and iron ore production noted an 89% decrease. On the other hand, electrotechnical, leather, and paper industries noted marginal increases in production output. Overall, industrial production decreased by 41%. A distinct feature of the Great Depression in Poland was the de-concentration of industry, as larger conglomerates were less flexible and paid their workers more than smaller ones.
  
  Unemployment rate rose significantly (up to 43%) while nominal wages fell by 51% in 1933 and 56% in 1934, relative to 1928. However, real wages fell less due to the government's policy of decreasing cost of living, particularly food expenditures (food prices were down by 65% in 1935 compared to 1928 price levels). Material conditions deprivation led to strikes, some of them violent or violently pacified – like in Sanok (March of the Hungry in Sanok 6 March 1930), Lesko county (Lesko uprising 21 June – 9 July 1932) and Zawiercie (Bloody Friday (1930) 18 April 1930).
  
  To adapt to the crisis, Polish government employed deflation methods such as high interest rates, credit limits and budget austerity to keep a fixed exchange rate with currencies tied to the gold standard. Only in late 1932 did the government effect a plan to fight the economic crisis. Part of the plan was mass public works scheme, employing up to 100,000 people in 1935. After Piłsudski's death, in 1936 the gold standard regime was relaxed, and launching the development of the Central Industrial Region kicked off the economy, to over 10% annual growth rate in the 1936–1938 period.