Changes

Poland became a full member of the [[North Atlantic Treaty Organization]] (NATO) in March 1999 as part of the first wave of enlargement outlined at the July 1997 NATO Summit in [[Madrid]]. Poland's top national security goal is to further integrate with NATO and other west European defense, economic, and political institutions while modernizing and reorganizing its military. Polish military doctrine reflects the same defense posture as its Alliance partners.  

Poland became a full member of the [[North Atlantic Treaty Organization]] (NATO) in March 1999 as part of the first wave of enlargement outlined at the July 1997 NATO Summit in [[Madrid]]. Poland's top national security goal is to further integrate with NATO and other west European defense, economic, and political institutions while modernizing and reorganizing its military. Polish military doctrine reflects the same defense posture as its Alliance partners.  

Poland maintains a sizable armed force currently numbering about 140,572 troops divided among an army of 87,877, an air and defense force of 31,147, and a navy of 21,548. Poland relies on military conscription for the majority of its personnel strength. All males (with some exceptions) are subject to a 12-month term of military service. The Polish military continues to restructure and to modernize its equipment. The Polish Defense Ministry General Staff and the Land Forces staff have recently reorganized the latter into a NATO-compatible J/G-1 through J/G-6 structure. Although budget constraints remain a drag on modernization, Poland has been able to move forward with U.S. assistance on acquiring 48 [[F-16]] multi-role fighters, [[C-130 Hercules|C-130]] cargo planes, HMMWVs, and other items key to the military’s restructuring.  

Poland maintains a sizable armed force currently numbering about 140,572 troops divided among an army of 87,877, an air and defense force of 31,147, and a navy of 21,548. Poland relies on military conscription for the majority of its personnel strength. All males (with some exceptions) are subject to a 12-month term of military service. The Polish military continues to restructure and to modernize its equipment. The Polish Defense Ministry General Staff and the Land Forces staff have recently reorganized the latter into a NATO-compatible J/G-1 through J/G-6 structure. Although budget constraints remain a drag on modernization, Poland has been able to move forward with U.S. assistance on acquiring 48 [[F-16]] multi-role fighters, [[C-130 Hercules|C-130]] cargo planes, HMMWVs, and other items key to the military's restructuring.  

Poland continues to be a regional leader in support and participation in the NATO Partnership for Peace Program and has actively engaged most of its neighbors and other regional actors to build stable foundations for future European security arrangements. Poland continues its long record of strong support for UN peacekeeping operations by maintaining a unit in Southern Lebanon, a battalion in NATO's Kosovo Force (KFOR), and by providing and actually deploying the KFOR strategic reserve to Kosovo. Polish military forces have served in both [[Operation Enduring Freedom]] in [[Afghanistan]] and [[Operation Iraqi Freedom]].  

Poland continues to be a regional leader in support and participation in the NATO Partnership for Peace Program and has actively engaged most of its neighbors and other regional actors to build stable foundations for future European security arrangements. Poland continues its long record of strong support for UN peacekeeping operations by maintaining a unit in Southern Lebanon, a battalion in NATO's Kosovo Force (KFOR), and by providing and actually deploying the KFOR strategic reserve to Kosovo. Polish military forces have served in both [[Operation Enduring Freedom]] in [[Afghanistan]] and [[Operation Iraqi Freedom]].  

== Economy ==

== Economy ==

[[File:Pol-cia.jpg|thumb|320px]] Since its reunification with the rest of the West, the Polish economy grew rapidly in the mid-1990s, slowed considerably in 2001 and 2002, returned again to healthy growth rates in 2003, then faltered during the worldwide [[recession of 2008]]. Poland’s gross domestic product (GDP) grew at an annualized rate of 5.2% in the first quarter of 2006. Faster growth has begun to reduce persistently high unemployment, from nearly 20% in the middle of 2004 to 16.5% in May 2006. Tight monetary policy and dramatic productivity growth have helped to hold down inflation, which was 2.1% in 2005. Likewise, Poland's current account deficit, which grew rapidly in the late 1990s, has since moderated to 1.4% of GDP in 2005. The 2005 budget deficit was 27.5 billion zloty, or 2.8% of GDP in 2005, and the current government pledged to restrain the 2006 and 2007 budgets at 30 billion zloty.

[[File:Pol-cia.jpg|thumb|320px]] Since its reunification with the rest of the West, the Polish economy grew rapidly in the mid-1990s, slowed considerably in 2001 and 2002, returned again to healthy growth rates in 2003, then faltered during the worldwide [[recession of 2008]]. Poland's gross domestic product (GDP) grew at an annualized rate of 5.2% in the first quarter of 2006. Faster growth has begun to reduce persistently high unemployment, from nearly 20% in the middle of 2004 to 16.5% in May 2006. Tight monetary policy and dramatic productivity growth have helped to hold down inflation, which was 2.1% in 2005. Likewise, Poland's current account deficit, which grew rapidly in the late 1990s, has since moderated to 1.4% of GDP in 2005. The 2005 budget deficit was 27.5 billion zloty, or 2.8% of GDP in 2005, and the current government pledged to restrain the 2006 and 2007 budgets at 30 billion zloty.

Throughout the 1990s, the United States and other Western countries supported the growth of a free enterprise economy by reducing Poland's foreign debt burden, providing economic aid, and lowering trade barriers. Poland graduated from [[U.S Agency for International Development]] (USAID) assistance in 2000 and paid the balance of its U.S.-held Paris Club debt in 2005. Poland officially joined the European Union (EU) on May 1, 2004.  

Throughout the 1990s, the United States and other Western countries supported the growth of a free enterprise economy by reducing Poland's foreign debt burden, providing economic aid, and lowering trade barriers. Poland graduated from [[U.S Agency for International Development]] (USAID) assistance in 2000 and paid the balance of its U.S.-held Paris Club debt in 2005. Poland officially joined the European Union (EU) on May 1, 2004.  

Poland is a net exporter of confectionery, processed fruit and vegetables, meat, and dairy products. Processors often rely on imports to supplement domestic supplies of wheat, feed grains, vegetable oil, and protein meals, which are generally insufficient to meet domestic demand. However, Poland is the leading producer in Europe of potatoes and rye and is one of the world's largest producers of sugarbeets. Poland also is a significant producer of rapeseed, grains, hogs, and cattle. Attempts to increase domestic feed grain production are hampered by the short growing season, poor soil, and the small size of farms.  

Poland is a net exporter of confectionery, processed fruit and vegetables, meat, and dairy products. Processors often rely on imports to supplement domestic supplies of wheat, feed grains, vegetable oil, and protein meals, which are generally insufficient to meet domestic demand. However, Poland is the leading producer in Europe of potatoes and rye and is one of the world's largest producers of sugarbeets. Poland also is a significant producer of rapeseed, grains, hogs, and cattle. Attempts to increase domestic feed grain production are hampered by the short growing season, poor soil, and the small size of farms.  

Pressure to restructure the agriculture sector intensified as Poland prepared to accede to the European Union, which is unwilling to subsidize the vast number of subsistence farms that do not produce for the market. The changes in agriculture are likely to strain Poland's social fabric, tearing at the heart of the traditional, family-based small farm as the younger generation drifts toward the cities. Nonetheless, dramatically increasing agricultural exports to the EU-15 (38% growth in 2005) and payments to farmers from Brussels following accession have enriched Polish commercial farmers and dramatically increase support for EU membership in Poland’s rural areas.

Pressure to restructure the agriculture sector intensified as Poland prepared to accede to the European Union, which is unwilling to subsidize the vast number of subsistence farms that do not produce for the market. The changes in agriculture are likely to strain Poland's social fabric, tearing at the heart of the traditional, family-based small farm as the younger generation drifts toward the cities. Nonetheless, dramatically increasing agricultural exports to the EU-15 (38% growth in 2005) and payments to farmers from Brussels following accession have enriched Polish commercial farmers and dramatically increase support for EU membership in Poland's rural areas.

[[File:Panorama-Morskiego-Oka Poland.jpg|thumb|center|500px|Panoramic view of Morskie Oko ("Marine Eye").]]

[[File:Panorama-Morskiego-Oka Poland.jpg|thumb|center|500px|Panoramic view of Morskie Oko ("Marine Eye").]]

The economic reforms introduced in 1990 removed price controls, eliminated most subsidies to industry, opened markets to international competition, and imposed strict budgetary and monetary discipline. Poland was the first former centrally planned economy in central Europe to end its recession and return to growth in the early 1990s. The private sector now accounts for over two-thirds of GDP.  

The economic reforms introduced in 1990 removed price controls, eliminated most subsidies to industry, opened markets to international competition, and imposed strict budgetary and monetary discipline. Poland was the first former centrally planned economy in central Europe to end its recession and return to growth in the early 1990s. The private sector now accounts for over two-thirds of GDP.  

In early 2002, the government announced a new set of economic reforms known as the Hausner Plan, designed in many ways to complete the process launched in 1990. The package acknowledged the need to improve Poland's investment climate, particularly the conditions for small and medium-sized enterprises, and better prepare the economy to compete as a European Union (EU) member. The government also aimed to improve Poland's public finances to prepare for eventual adoption of the euro. Though the government was able to enact only portions of the Hausner Plan, those successes coupled with successful monetary efforts to strengthen the zloty, have put Poland within reach of the National Bank’s goal of Euro accession in 2008-2009.  

In early 2002, the government announced a new set of economic reforms known as the Hausner Plan, designed in many ways to complete the process launched in 1990. The package acknowledged the need to improve Poland's investment climate, particularly the conditions for small and medium-sized enterprises, and better prepare the economy to compete as a European Union (EU) member. The government also aimed to improve Poland's public finances to prepare for eventual adoption of the euro. Though the government was able to enact only portions of the Hausner Plan, those successes coupled with successful monetary efforts to strengthen the zloty, have put Poland within reach of the National Bank's goal of Euro accession in 2008-2009.  

As a result of Poland's growth and investment-friendly climate, the country has received over $85 billion in direct foreign investment (DFI) since 1990, with roughly $7 billion in 2004 alone. According to a recently publish report by Ernst and Young, Poland is tied with Germany as the most attractive destination for foreign investment in Europe. The availability of cheap land and a large, relatively skilled labor force are among Polish strengths. However, the government continues to play a strong role in the economy, as seen in excessive red tape and the high level of politicization in many business decisions. Investors complain that state regulation is not transparent or predictable, and the economy suffers from a lack of competition in many sectors, notably telecommunications.

As a result of Poland's growth and investment-friendly climate, the country has received over $85 billion in direct foreign investment (DFI) since 1990, with roughly $7 billion in 2004 alone. According to a recently publish report by Ernst and Young, Poland is tied with Germany as the most attractive destination for foreign investment in Europe. The availability of cheap land and a large, relatively skilled labor force are among Polish strengths. However, the government continues to play a strong role in the economy, as seen in excessive red tape and the high level of politicization in many business decisions. Investors complain that state regulation is not transparent or predictable, and the economy suffers from a lack of competition in many sectors, notably telecommunications.

=== Foreign Trade ===

=== Foreign Trade ===

With the collapse of the ruble-based COMECON trade bloc in 1990, Poland scrambled to reorient its trade. As early as 1996, 70% of its trade was with EU-15 members, and neighboring Germany today is Poland's dominant trading partner. Most of Poland's imports are capital goods needed for industrial retooling and for manufacturing inputs, rather than imports for consumption. Therefore, a deficit is expected and should even be regarded as positive at this point. Poland, a member of the World Trade Organization (WTO) and European Union, applies the EU’s common external tariff to goods from other countries—including the U.S.  

With the collapse of the ruble-based COMECON trade bloc in 1990, Poland scrambled to reorient its trade. As early as 1996, 70% of its trade was with EU-15 members, and neighboring Germany today is Poland's dominant trading partner. Most of Poland's imports are capital goods needed for industrial retooling and for manufacturing inputs, rather than imports for consumption. Therefore, a deficit is expected and should even be regarded as positive at this point. Poland, a member of the World Trade Organization (WTO) and European Union, applies the EU's common external tariff to goods from other countries—including the U.S.  

In the year after it joined the EU, Poland experienced an overall growth in exports of 30%. This growth was not confined to trade among EU partners: while exports to EU countries rose by 27%, exports to developing countries rose by 46%, and exports to Russia rose an unexpected 77%. Poland’s trade balance continued to improve, with export growth significantly outpacing import growth. Opportunities for trade and investment continue to exist across virtually all sectors. The American Chamber of Commerce in Poland, founded in 1991 with seven members, now has more than 300 members. Strong economic growth potential, a large domestic market, EU membership, and political stability are the top reasons U.S. and other foreign companies do business in Poland.

In the year after it joined the EU, Poland experienced an overall growth in exports of 30%. This growth was not confined to trade among EU partners: while exports to EU countries rose by 27%, exports to developing countries rose by 46%, and exports to Russia rose an unexpected 77%. Poland's trade balance continued to improve, with export growth significantly outpacing import growth. Opportunities for trade and investment continue to exist across virtually all sectors. The American Chamber of Commerce in Poland, founded in 1991 with seven members, now has more than 300 members. Strong economic growth potential, a large domestic market, EU membership, and political stability are the top reasons U.S. and other foreign companies do business in Poland.

== History ==

== History ==