Poverty in Poland
Poland has been a NATO member since 1999. It was not until five years later in 2004 that Poland became a member of the European Union (E.U.) after signing the Accession Treaty. In addition, Poland has been a member of the Schengen area since 2007. Poland’s cooperation and membership in these intergovernmental organizations continue to benefit its economic condition. E.U. membership, in particular, stimulated Poland’s economy towards sustainable development and helped in the fall of poverty in Poland.

Economic Situation of Poland (After and Before Accession to the European Union)

After Poland’s accession, E.U. regional policy programs guided the country through many beneficial investments over the years. Through these investments, Poland was able to develop and maintain its infrastructure, economy, tourism, education, healthcare and governance. In order to eliminate disparities between its regions, the E.U. fund seeks to build a stronger economy, stable territorial lines and cohesion in the union. During the 2014-2020 programming period, Poland managed to enforce hundreds of projects.

According to data from 2003 until 2018, the economy of Poland is continuously improving. In 2003, a year before E.U. membership, the total value of Gross Domestic Product (GDP) in Poland was $477.94 billion. After five years of being a member of the E.U., Poland’s economic growth for 2009 was $760.35 billion. In this case, membership in the E.U. benefited the economy of the region. According to the European Commission’s 2012 Aging Report projects during 2010-2060, Poland will be the second-fastest-growing economy in the E.U., following Bulgaria.

The strong economic performance over the years led to the rapid rising of GDP per capita in Poland. Its GDP per capita has risen from $5,693 in 2003 to $15,565 in 2019. In 2004, the annual growth rate of GDP per capita was 17.35% in comparison to 2003. It is also important to mention that, in 2009, the annual growth rate of GDP per capita declined by -17.67% compared to the previous year. The economy of Poland was under tension in 2009 and another sizeable fall in numbers occurred in 2015. In 2014, GDP per capita was $14,348 and in 2015, it decreased to $12,572. However, from 2017 to 2019, the numbers increased. In fact, in 2019, the GDP per capita in Poland reached the highest point ever in the country’s history at $15,565.

Unemployment in Poland

Various indicators estimate a trend of decreasing poverty in Poland. The unemployment rate demonstrates this well. After Poland regained its independence, unemployment was one of the most pressing social and economic issues. E.U. membership contributed to the decline in the unemployment rate. Foreign investments and the funds from the E.U. financing programs decreased the percentage of unemployment and created new jobs. At the same time, the opening of the European labor market created job opportunities outside of Poland for the unemployed, subsequently aiding the fall of poverty in Poland.

From the beginning of 2003 to 2009, the unemployment rate decreased significantly in Poland. The unemployment rate decreased from 19.07% in 2004 to 3.47% in 2019. According to some economists, if Poland never joined as an E.U. member, they would be at the same level as Ukraine, which had a slightly higher GDP than Poland in 1990.

Conclusion

Poland underwent a successful transition from a communist-state background to a stable and competitive European country. One of the main reasons for their success is that Poland joined. In 2007-2013 and 2014-2020, Poland was the largest beneficiary of the E.U. funds. Investments helped Poland improve its transport infrastructure, health, education, environment efficiency, network infrastructure, social cohesion, research and development.

– Tofig Ismayilzada
Photo: Flickr