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Private Enterprise in Poland Under Gomulka

Published online by Cambridge University Press:  25 March 2019

Jan Przybyla*
Affiliation:
The President of the Collège de l'Europe Libre, Strasbourg, France

Extract

The year 1956 may be regarded as the third milestone in the postwar history of private initiative in Poland.

Until 1949, the official attitude towards private initiative was one of relative toleration. The basic concept was that in a period of reconstruction of the economy, the private or "third" sector could coexist with the State and cooperative sectors without infringing the canons of socialist economics. However, even in that period, a number of legal, administrative, and economic measures were taken, the effect of which was to restrict the scope of activity and stunt the growth of private initiative.

Type
Research Article
Copyright
Copyright © Association for Slavic, East European, and Eurasian Studies 1958

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References

1 For an interesting basis for comparison with present-day Gomulka policies, see Gomulka, W., Ku Nowej Polsce, Speech to the First Congress of Polish Workers’ Party, Dec. 8, 1945 (Katowice, December, 1945)Google Scholar.

2 See Marczewski, Jean, Planification et Croissance économique des Democraties populaires (Vol. I, Part II, Ch. 1, 2; Vol. II, Part III, Ch. 1 (Paris: Presses Universitaires de France, 1956).Google Scholar

3 J . Cyrankiewicz, speech to the Sejm, April 23, 1956, Radio Warsaw, April 23, 1956.

4 First Resolution adopted at the seventh Plenum of the CC of the PZPR (July 18-28, 1956), Radio Warsaw, July 31, 1956.

5 Cf. Decree of the Minister for Internal Trade of Sept. 26, 1956, on authorizing trading units to place orders for deliveries and work in the sphere of industrial commodities, with cottagers, persons pursuing home industries, and craftsmen, Monitor Polski (Official Gazette) No. 86, Oct. 19, 1956, Item 1,000.

6 W. Gomulka, Speech to the Eighth Plenum of the CC of the PZPR, Warsaw, Oct. 20, 1956, Trybuna Ludu, No. 294, Warsaw, Oct. 21, 1956, pp. 3-5.

7 Ibid., p. 4.

8 Przybylski, E. and Homan, J., “Problemy aktywizacji miasteczek w wojewodztwie poznanskim,” Gospodarka Planowa, No. 4 (Warsaw, July, 1957), pp. 6465 Google Scholar; See also Zielinski, J., “’ Korespondencja,” Mysl Gospodarcza, No. 2 (Krakow, April, 1957), p. 164 Google Scholar; Krupski, J., “Prywatna wytworczosc a eksport,” Zycie Gospodarcze, No. 36 (Warsaw, Sept. 8, 1957)Google Scholar; Kalinowski, E., “Dawno niemodne,” Tygodnik Demokratyczny, No. 19 (Warsaw April 24-May 1, 1957), p. 5 Google Scholar; Kaczmarczyk, E., “Bylo zle i jest zle,” Tygodnik Demokratyczny, No. 28, (Warsaw, June 26-July 2, 1957), p. 4 Google Scholar; R. T.,“Za dolary,” Tygodnik Demokratyczny, ibid., p. 5.

9 Apprentices in private craftsmen's workshops in 1955: Building, 97; Electrical installations, 328; watch repairs, 181; ladies’ tailoring, 488; painting, 339; glass, 107; shoes, 764; Machinery repairs, 2,101. Source: Rocznik Statystyczny 1956, Warsaw, 1957.

10 “ … more important is the anxiety lest the course now begun be not sufficiently lasting. Whether, for example, after five years, there will not be another return to the principles of negation and to the doctrine of total nationalization.” F. Mylnarski, “Funkcja trzeciego sektora w gospodarstwie socjalistycznym” (The function of the third sector in socialist economy,) Mysl Gospodarcza, No. 3 (Krakow, May 1957), pp. 65-66.

11 E.g., Kleer, J., “Spor o wlasciwe pojmowanie socjalizmu” (Controversy about the correct interpretation of socialism, Zycie Gospodarcza, No. 33 (Warsaw, Aug. 18, 1957), p. 7 Google Scholar; Kowalik, T., “O socjalizmie bez mistyki,” Zycie Gospodarcze, No. 31 (Warsaw, Aug. 4, 1957), p. 3 Google Scholar; F. Mylnarski, op. cit.

12 “The objective here is to prove that the supplementary third sector is permanently necessary as an instrument helping in the smooth development of socialist economy. Its permanent coexistence may be admitted without prejudice to the socialist profile of the country.” Prof. F. Mylnarski, op. cit., p. 77.

“The placing of orders for supplies and work … can be effected in cases in which there is a need to complete supplies or to widen the variety of goods which fall within the scope of the trading activity of the enterprises defined in this regulation” (i.e., enterprises under the supervision of the Minister for Internal Trade engaged in retail trade or foodstuffs.) Decree of the Minister for Internal Trade of Dec. 27, 1956, on authorizing trading units to place orders for deliveries and work in the sphere of foodstuffs with craftsmen and private industrial enterprises, Monitor Polski (Official Gazette), No. 1, Jan. 14, 1957, Item 7, para. 2.

“Minister Minor said that in issuing licenses to new private shops, the National Councils often overlooked the basic principle that private trade should supplement the activity of socialized trade. A particular increase in the number of private shops had been noted in the Central Provinces and in Silesia, where socialized trade was well developed, whereas in the Western and in certain Eastern Provinces, where the network of State and cooperative trade enterprises was inadequate, private trade was showing hardly any tendency to develop.” Radio Warsaw, commenting on a statement by the Minister for Internal Trade, March 22, 1957; Polish Press Agency (P.A.P.) March 29, 1957.

13 “The staffs in the financial departments of the Praesidia of People's Councils have indeed heard about the new trends, but they cannot find on their desks the corresponding documents telling them not about the climate, but about instructions to be enforced.” Trybuna Ludu, No. 263, Sept. 20, 1956.

14 Resolution of the Council of Ministers of Jan. 22, 1957, on rendering more efficient the utilization of raw materials and on increasing their utilization in small industry, work cooperatives and the crafts, Monitor Polski, No. 13, Feb. 19, 1957, Item 96.

15 Ibid., Preamble.

16 tylnierz Wolnosci, No. 107, Warsaw, May 7, 1957. “The problem of raw materials was the focal point of the discussion. Speakers pointed out that raw materials were available, but because of faulty distribution craftsmen could usually buy them only from profiteers. Equal supplies for craftsmen and work cooperatives were demanded, as well as the allocation to highly skilled craftsmen of part of the raw materials inefficiently used by State enterprises.” Radio Warsaw, May 6, 1957; Polish Press Agency (P.A.P.), May 6, 1957.

17 Monitor Polski, No. 35, May 8, 1957, Item 231, Chapter IV, para. 19.

18 Monitor Polski, No. 40.

19 Ibid.

20 H. Jastrzebski, “Nadzieje i Rzeczywistosc,” Tygodnik Demokralyczny, No. 19 (Warsaw, April 24-May 1, 1957), p. 5. Supplies of raw materials to the crafts from the Central Supply Pool were scheduled to amount in 1957 to 700,000,000 zlotys (as compared with 270,000,000 zlotys in 1956), Statement by the Minister of Small Industries and the Crafts, Z. Moskwa to the National Congress of Crafts, Warsaw, May 5, 1957, Polish Press Agency (P.A.P.), May 6, 1957, August 24, 1957.

21 G. Pisarski, “Nie tylko tedy droga,” Zycie Gospodarcze, No. 19, May 12, 1957, p. 3. Estimate based on statements by experts from the Craft Associations.

22 Interview with the Minister for Small Industries and the Crafts, Z. Moskwa, Tygodnik Demokratyczny, No. 13, March 13-19, 1957, p. 3.

23 “Individual handicrafts are included for the first time in 1957 in planned allocations of raw materials and technical equipment.” Polish Press Agency, (P.A.P.) March 12, 1957.

On June 5, 1957, the Polish Press Agency (P.A.P.) reported that in 1957 private builders would receive considerably increased supplies of building materials from State production, i.e., an increase above the preceding year of 40 percent for all supplies (including 647,000,000 bricks and over 1,000,000 tons of cement).

24 Express Wieczorny of Aug. 8, 1957, reported that private butchers were being driven out of business as a result of discriminatory practices. In August the price of meat deliveries to private butchers was raised by 10 percent and in some cases by 60 percent. Simultaneously it was announced that these prices would be retroactive to Jan. 1, 1957. The price of lime was fixed near the price of cement. The price of gypsum was fixed above that of cement. Lime and gypsum are relatively plentiful in Poland. Juliusz Gorynski (Head of the State Building Trust), “Aktualne zagadnienia budownictwa mieszkaniowego w Polsce,” Nowe Drogi, No. 7, July, 1957, pp. 75-76.

25 Resolution of the Ministry of Small Industry and the Crafts on the directions of the development of private industry, Trybuna Ludu, No. 243, Warsaw, Sept. 3, 1957.

26 Ibid.

27 Polish Press Agency (P.A.P.), Aug. 23, 1957.

28 Polish Press Agency (P.A.P.) reported on March 12 that the Minister for Small Industry and the Crafts stated that “the development of handicrafts in the Western Territories should contribute to the solution of the problem of employment for persons now being released from administrative posts.“

29 P.A.P., Ibid.

30 Radio Warsaw (Home Service) Dec. 21, 1956, quoting the Workers’ Agency (A.R.).

31 Dziennik Ustaw (Journal of Laws), No. 33, June 22, 1957, Item 145.

32 “In almost all basic State regulations regulating handicrafts, the Western Territories are given extra preference. For example, newly established artisan workshops in localities up to 10,000 inhabitants have been exempted for a period of two years from the turnover and income taxes. Rural artisans will be exempt from taxes accruing from the possession of a plot of land for a period of five years, in addition to two years’ exemption from taxes on revenue from the workshop.” P.A.P. quoting Minister Moskwa, March 12, 1957.

33 Vide: H. Jastrzebski, Tygodnik Demokratyczny, op. cit.

34 Express Wieczorny, Oct. 26, 1957, reported that the National Councils were not cooperating with the artisans in need of premises. Many of the workshops were, according to this report, located in buildings earmarked for demolition in the near future. Where temporary “pavillions” were erected to house artisans, the rent for such premises was set at exorbitant levels.

“The absence of precision on the relevant ministry's policy towards private trade resulted … in widely differing and contradictory tendencies of the local administrative and other authorities in this matter.” Zycie Gospodarcze, No. 18, Warsaw, May 5, 1957, p. 3.

35 E.g., Circular of the Minister for Internal Trade of August, 1956, and the Decree of that Minister (No. 448) of November, 1956, concerning the issuance of licenses for the carrying on of private trade.

36 Decree of the Minister for Finance of Jan. 31, 1957, regarding the basis of extending bank credits to employees released from the administration for the purpose of acquiring tools in connection with the setting up of a workshop, Monitor Polski, No. 10, Feb. 7, 1957, Item 72.

37 Decree of the Minister for Finance of April 15, 1957, concerning the basis of granting bank credits to officers released from the services, for the purpose of acquiring tools in connection with the setting up of a workshop, Monitor Polski, No. 34, May 6, 1957, Item 228.

38 Decree of the Minister for Finance of May 22, 1957, concerning State credits granted for the purpose of fostering the development of agricultural production and rural crafts, Monitor Polski, No. 48, June 19, 1957, Item 298.

39 Decree of the Minister for Finance of March 15, 1957, concerning the methods of refunding the costs involved in the crafts training of employees released as a result of the reorganization of the administration, Monitor Polski, No. 22, March 25, 1957, Item 158.

40 Express Wieczorny, No. 21, Warsaw, Jan. 25, 1957.

Decree of the Minister for Finance of June 3, 1957 regarding the manner of granting, assuring and refunding credits accorded to citizen's cooperatives for the purpose of producing building materials from local raw materials with the view to individual housing construction in towns and rural settlements, Monitor Polski, No. 49, June 21, 1957, Item 306.

41 Polish Press Agency (P.A.P.) quoting Sejm Deputy S. Stefanski, Aug. 24, 1957, and reporting on the speech by the Minister for Small Industries and the Crafts, Z. Moskwa, at the National Congress of Crafts, May 6, 1957.

42 Polish Press Agency (P.A.P.), Jan. 23, 1957.

43 “At the present time things are bad and it is just as well to acknowledge it.” H. Jastrzebski, Tygodnik Demokratyczny, op. cit.

44 Decree of the Minister of Education of May 17, 1957, concerning apprenticeship examinations in basic trade schools, Dziennik Ustaw, No. 28, May 25, 1957, Item 126.

45 Gomulka, op.cit., footnote 6. “With the help of supplementary assessments it is always possible to ruin every workshop.“

46 Decree of the Minister for Finance of Dec. 7, 1956, concerning exemption from taxation of newly established small craft workshops, cottage, folklore and home industries, Dziennik Ustaw, No. 60, Dec. 29, 1956, Item 289.

47 Decree of the Minister for Finance of Dec. 8, 1956, concerning the levy of turnover and income taxes in lump sums from persons directing craft workshops, Dziennik Ustaw, No. 60, Dec. 29, 1956, Item 290.

48 The representation of the craftsmen, however imperfect, on the tax commission was an innovation. Since 1946, (Monitor Polski, No. 22, Item 145) no representative of private enterprise was allowed to sit on the commissions.

49 Decree of the Minister for Finance, of Dec. 8, 1956, concerning tax cards for craftsmen, Dziennik Ustaw, No. 60, Dec. 29, 1956, Item 291.

50 Ibid.

51 Trybuna Ludu, No. 312, Nov. 8, 1956.

52 Dziennik Ustaw, No. 60, 1956, Item 291, Appendix Item 3.

53 Zycie Warszawy, Oct. 7, 1957.

54 Polish Press Agency, Bulletin No. 265, Nov. 11, 1957.

55 Decree of the Minister of Internal Trade of Dec. 27, 1956, concerning the authorizir r. of trading units to place orders with craftsmen and private industrial enterprises f deliveries and work in the sphere of food products, Monitor Polski, No. 1, Jan. 14, 19 Item 7.

56 Decree of the Minister for Internal Trade of Sept. 26, 1956, on authorizing trading units to place orders for deliveries and work with cottagers, persons pursuing home industries and craftsmen, in the sphere of industrial commodities, Monitor Polski, No. 86, Oct. 19, 1956, Item 1,000.

57 Biuletyn Statystyczny (G.U.S.), op. cit.

58 Radio Warsaw, Aug. 25, 1957.

59 Eugeniusz Grajter,” Potargowe Zlosliwostki,” Tygodnik Demokratyczny, No. 28, Warsaw, June 26-July 2, 1957, p. 5; also see this article, footnote 8.

60 Polish Press Agency (P.A.P.), statement by Mr. Julian Sadlowski, Chairman of the Union of Handicrafts Chambers, Jan. 21, 1957.

61 Polish Press Agency (P.A.P.), statement by Minister Moskwa, May 6, 1957.

62 Polish Press Agency (P.A.P.), Aug. 24, 1957.

63 Polish Press Agency (P.A.P.), statement by J. Sadlowski, op.cit.

64 i- Hodoly and E. Wiszniewski, “Handel Prywatny,” £ycie Gospodarcze No. 18, Warsaw>tay 5, 1957, p. 3.

65 G. harski, op. cit.

66 Resolution of the Council of Ministers No. 186 of May 23, 1957, on Commissions for the fight against speculation and illegal dealings, Monitor Polski, No. 45, June 7, 1957.

67 Act of July 13, 1957, on the fight against speculation and the protection of the interests of rural buyers and producers in the turnover of goods, Dziennik Ustaw, No. 39, July 26, 1957.

68 Polityka, Warsaw, May 29, 1957, claimed that 60 percent of the offenses were.connected with the private enterprise sector. Sztandar Mlodych, Aug. 8, 1957; Rati) Warsaw, Sept. 12, 1957; Radio Warsaw, March 22, 1957; Trybuna Ludu, July 3, 1957; Zycie Gospodarcze, June 2, 1957; Zycie Gospodarcze, May 5, 1957.

69 G. Pisarski, Zycie Gospodarcze, op. cit

70 “ In the perspective of continued accumulation of speculative capital, the opening of wider possibilities for investment by private persons is identical with the acquiescence the existence in our country of a new bourgeoisie, recruited from much less valuable elements—economically, ethically and culturally—than the traditional urban middle Mass.” Andrzej Brzeski, Jtycie Gospodarcze, No. 27, Warsaw, July 7, 1957, p. 2.

71 The so-called Bochnia district experiment in which the local district council granted the villages increased fiscal autonomy and the freedom to apply local solutions to local roblems, Radio Warsaw, Sept. 25, 1957.