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Challenges to Sustain Poland's Growth Model

Listed author(s):
  • Balázs Égert


  • Rafal Kierzenkowski


Notwithstanding a very strong economic performance over the past decade or so, Poland’s per capita income is substantially lower in comparison with the United States and per capita income growth will be sharply slowing down over the coming decades under the scenario of gradual policy changes mostly because of population ageing. Bold structural reforms are needed to boost labour productivity and labour resource utilisation. This paper argues that in order to increase labour resource utilisation, policy action should focus on raising the effective retirement age, encourage childbearing and lower high unemployment rates for young people and the unskilled via increased and more efficient active labour market policies. Labour productivity could be boosted via rendering the tax system more growth friendly, reducing product market regulation (including heavy government involvement in the economy, high administrative costs of running and starting businesses and increasing competition in uncompetitive segments of the economy). Investing in human capital and encouraging innovation are also essential for long-term productivity growth. Les défis pour soutenir le modèle de croissance économique en Pologne En dépit d’une performance économique remarquable au cours de la dernière décennie, le PIB par habitant de la Pologne est nettement plus faible en comparaison avec les États-Unis et la croissance du PIB par tête va fortement ralentir au cours des prochaines décennies, selon un scénario de changements progressifs de politiques économiques essentiellement en raison du vieillissement de la population. Des réformes structurelles audacieuses sont nécessaires pour accroître la productivité du travail et l'utilisation des ressources du travail. Cet article soutient que pour augmenter l'utilisation des ressources du travail, l'action de politique économique devrait se concentrer sur l'augmentation de l'âge effectif du départ à la retraite, d'encourager la maternité et de diminuer les taux de chômage élevés pour les jeunes et les travailleurs peu qualifiés via des politiques actives du marché du travail plus étendues et plus efficaces. La productivité du travail pourrait être stimulée par un système fiscal plus favorable à la croissance, par la réduction de la réglementation des marchés de produits (y compris la forte implication du gouvernement dans l'économie, les coûts administratifs élevés de fonctionnement et de création d'entreprises, et en augmentant la concurrence dans les segments non compétitifs de l'économie). Investir dans le capital humain et encourager l'innovation sont également essentiels pour la croissance de la productivité à long terme.

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 1054.

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Date of creation: 05 Jun 2013
Handle: RePEc:oec:ecoaaa:1054-en
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  1. Åsa Johansson & Yvan Guillemette & Fabrice Murtin & David Turner & Giuseppe Nicoletti & Christine de la Maisonneuve & Guillaume Bousquet & Francesca Spinelli, 2012. "Looking to 2060: Long-Term Global Growth Prospects: A Going for Growth Report," OECD Economic Policy Papers 3, OECD Publishing.
  2. Angela Luci & Olivier Thevenon, 2011. "The impact of family policy packages on fertility trends in developed countries," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00657603, HAL.
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