POLISH TRADE OFFICIAL CALLS FOR FREER MARKET
Deputy Foreign Trade Minister Janusz
Kaczurba told Reuters that Poland would have to diverge from
traditional Communist bloc centrally-planned economic policies
if it wanted to bring about economic renewal and compete in
world markets.
    Stressing his commitment to a series of reforms recently
introduced to streamline the economy and boost export-oriented
industry, he also called for an expansion in the role of the
private sector.
    Asked whether the policies the government was advocating
did not represent a departure from the strictly controlled
economic model within the Soviet bloc, he said in an interview
with Reuters "I don't see any alternative but to try to proceed
along the lines of economic reasoning."
    He referred specifically to bankruptcies, which he said
would be "the logical outcome of a more stringent economic
policy," once the state stopped propping up enterprises to
guarantee jobs, regardless of how inefficient they were.
    He added, "We should follow the policy of creating a system
whereby managers will be really responsible for the overall
economic effect of enterprises. This can be done in one way
only, through the reduction of subsidies."
    But he also noted the need to curtail bureaucracy of branch
ministries, allow domestic prices to reflect the world market,
make foreign exchange rates more realistic, provide incentives
to export-oriented industry and encourage private business.
    Kaczurba was talking to Reuters about the effect on the
economy of U.S. Sanctions imposed in 1982 in response to the
suppression of the Solidarity trade union under martial law.
    He acknowledged that Poland's economic decline would add to
its problems in trying to regain markets and support from
Western creditors even after Washington lifted remaining
restrictions and restored Most Favoured Nation trading status
last month.
     Western officials say Polish goods have to be more
competitive and of better quality in the face of trade wars and
protectionism amongst U.S., Japanese and European competitors.
    Reaffirming the government's view that the key to solving
some of those problems and meeting payments on a 33.5 billion
dlr foreign debt lay in increasing hard currency exports,
Kaczura said private enterprise could play a greater role.
    "I think we could have some 20,000 small private enterprises
active in export-oriented business if such operators are
successfully convinced that the policy towards the (private)
sector is stabilised," he said.
    Poland already has a more developed private sector than
most other East European countries.
    Among economic reforms already under way, Kaczurba listed
easier access to hard currency profits, tax incentives, access
to investment credits and two devaluations of the zloty to
increase competitivity of prices.
    He said such policies had been welcomed by the World Bank
and International Monetary Fund, through which Poland is hoping
to gain new credits, but Poles were caught in a "vicious circle."
    Creditors wanted proof that the policies were directed
towards improving exports, but in order to fulfil their
expectations Poland first needed fresh inputs, he said.
 REUTER
