OECD report scorns lack of government prevention of economic slowdown

According to OECD experts, who in an official report have criticized Polish authorities for failing to develop a plan to prevent an economic slump, achieving the envisaged 4.5% GDP growth this year will be very difficult, and the more likely figure is 3.9%, and 3.8% in 2002. Moreover, if the cooling trend continues, changes in monetary policy may be necessary. This, say specialists, is a signal from the OECD to cut interest rates even further. At the same time, they warn the central bank should be careful to maintain its inflation goals, so far one of Poland's greatest successes. OECD experts say public money in Poland is not spent frugally, and expect state accounts to be balanced before Poland enters the EU. According to the report, one of the most serious problems Poland has to tackle is accelerating unemployment resulting from overly restrictive labor regulations, tax burdens and a high minimum wage. It also urges a speed-up of privatization. (Rzeczpospolita, p.B2; Gazeta Wyborcza, p.22) J.K.