Past wage inflation and RPP key causes of present economic woes

According to an "Entrepreneurship in Poland" report acquired by Gazeta Wyborcza, it turns out that the public is not investing enough, state owned companies are unprofitable, and only half of Poles of productive age work. The report has been prepared by the Economy Ministry and is to become one of the elements of the program of Economy and Labor Minister Jerzy Hausner. According to it, between 2001-2002, "There was a substantial fall in GDP growth to the level of 1%, in part caused by the restrictive monetary policy by the Monetary Policy Council (RPP) between 1998-2001, and a growing crisis of public finance resulting from mistaken budget policy between 2000-2001". According to experts, the average nominal cost of an employee jumped from zł. 879 in 1994 to zł. 2,653.21 in 2000, which gives a rise of 201.7%. However, this was not accompanied by an increase in efficiency, which amounted to around half of the EU average. (Gazeta Wyborcza, June 14-15, p. 29) M.M.