It's a pleasure and the special honor to present. Today's speaker. Leszek Elsa robe h. Former deputy prime minister and finance minister of Poland Professor bounce aerobics is recognized as a Pioneer in the transformation of the Central and Eastern European economies leszek balcerowicz graduated with distinction from the Central School of planning and statistics in Warsaw institution now widely known in the west as the Warsaw School of economics. In 1974 and an MBA from St. John's University in New York in 1974. He went back in 1975 and got his PhD at the Warsaw School. In 1978. He founded an informal group of young Economist who under his guidance devised a comprehensive program of economic reform for Poland. This is a very long time ago a very forward-looking plan. When the Soviet Union was still intact and solidarity was a very long way from doing anything in Poland. In 1981, he became economic adviser to the solidarity movement following years of Economic and political turmoil in late 1989. He became Deputy Prime Minister and Minister of Finance in the first solidarity LED government. He was also president of the economic Committee of the Council of ministers. He's best known worldwide as the principal architect of the radical stabilization and transformation of the Polish economy known throughout the world as the bounce aerobic plan. the plans Big Bang change the entire polish economic system. Hyperinflation Was Defeated prices were deregulated. food shortages ceased the economy was open up to foreign markets Swahili Polish currency became convertible major financial institutions were thoroughly reformed and most of the state small and medium-sized Enterprises were privatized. Professor bounce aerobics also let his government negotiations with the international monetary fund and the World Bank and he achieved a vast reduction in Poland's external debt run up by the previous governments in his negotiations with the Paris Club of creditor Nations. You retained his ministerial post until late December of 1991. He subsequently resume disposition is professor at the Warsaw school from which post he has been involved in a broad range of activities concerning economic reform throughout Central and Eastern Europe. In retrospect the boldness and determination of Professor bounce aerobics and his colleagues seem perhaps even more important than they did at the time their foresight and courage assured that Poland would move irreversibly toward an effective market economy with realistic prospects to join an economic Union with the rest of Europe within the foreseeable future quite an achievement. I know Professor about sirovich. Thank you very much for such a kind introduction. I am happy to be here too. Shy with you and with a ready audience of the Midwest some observations of a Honda dramatic are unprecedented transformation taking place. Not only in Poland, but generally speaking in Central and Eastern Europe in my mind the distinguishing features of this transition. I think there are at least three. First it is the scope of changes. That is an exceptional scope of changes radical reforms. A happening not only in the economy. But also in the political sphere so you don't have just one transition transition from a centralized economy to a market econ by the same time you go to transition from an Italian political regime. To democracy and you've got to transition from closed Society to sit open Society lots of changes in short span of time, which means a lot of chances are those vicious Basinger the decision-makers. And this would be the first because we should be quite clear when when a comparison essay police reform or tractors for I'm trying to start a career Forum with the reforms which took place in Spain in the late 7th is the only one transition from a totalitarian political regime to democracy the economy being already basically market. And this was the first feature the second one is that even though we can speak of a revolution in a size of a dramatic and comprehensive change an Institution sending Society. Thanks Golf. And there are 10. Which is largely peaceful and bloodless Revolution dramatic Wireless in the former Yugoslavia on some parts of the former Soviet Union basically do you to ask extensions and not to transformation in the institution of Frameworks of the society's institutional Revolution against something which distinguishes this transformation from all kinds of previous revolutions Baker French Revolution or in October Revolution in Russia. The search feature us feature. I would refer to the sequence of changes. I've said that changes radical reforms affected or affecting both they call them and society and the political sphere by the sequence in which the effects of these changes are happening is unique in history. From the experience of Western societies United Century, it would remember that the sequence was capitalism the first mass more than the office later. This was the case of most Western European countries. United States was an exception because that's when you knew Society. But if you look in a $0.20 in 20 Century Taiwan or South Korea, you see that this classical sequence capitalist democracy later. He's being repeated. Alpha some historical reasons the sequence in certain Eastern Europe has been reversed since it is easier to organize parties political parties and elections. Democracy in that piece formal science of contested elections free elections and many many parking sometimes sometimes too many happened before it was possible to privatize the bark of the stated on United economy recession result. You've got a new sequence from the historical point of view democracy first. And the transition to a competitive capitalistic market economy has to be completed and a democracy. I'm stating the fact I'm not criticizing this fact. This is given by history and sat in the solution is not to return to order Karen regimes because they all have different types. You may have South Korean pro-capitalist account. But you may also have North Korean anti capitalist economic point with you to strengthen Democratic institutions in a sense of making them more efficient and more capable of decision-making care in the name of general interest in doctor sectional interests, which Aveeno is very difficult. It's enough to look at natural Democratic institutions to know how difficult it is. But its necessary and what is required here. Is the reduction of the number for Schnucks Kiwanis previously, but let's get to 3234 n. 6th it this in time calls for a Betta electrical those other that's what they also required to strengthen democracy is a good Constitution which would include to Norm's Banning attempts to you say to pursue action. Speech May gain second political actors a short lift popularity, but at the expense of the economy for exam something to eat with my difficult or impossible to get the large deficit of the batch of Finance by the monetary expansion. This would be the one of the necessary know what's coming up. You got an exceptional transformation happening in Center in Eastern Europe. A good part of this transformation is economic transition where I would like now to say if you works. If you analyze and economic change. You need to go to analytical framework which names the factors which are most responsible for the pace and direction of this economic change and I think the crucial factors of the following graphs first initial situation. Identify the initial situation is like to diagnose diagnostic patients to make a diagnosis. Then you have to work out at therapy. Design of economic transition and design you can stay at the Emmys perciful. That's why I should have a clear vision of the future system where to go from the initial situation to the Future better system. I'm depending on this vision and on the initial situation you are going to make a good transition or better answers and also depending on the lot of persistent on the way from the vet initial situation for this targeted future better situation. I was far as the initial situation in the center in Eastern Europe was concerned whenever it was very difficult. It was much more difficult that in any case. I know all the radical transition to a market economy. Tell me basically two problems at the beginning of the process. Both of them double Legacy of the previous economic system and political system to the problem of low and declining efficiency of the economy, which in turn was responsible for low standard of living as compared to other countries, which happen to have a market economy. At the bottom of this phenomenon was a faulty economic system. Dominated by the state known market-type Center planning instead of the market mechanism close to the outside world basically import substitution strategy was distorted prices, etcetera Etc. This system have many features which resemble the features of Latin Latin American systems on 20 years ago, but it was worse because it has was even more dominated by the spell totally dominated by the state representation Etc situation. If this was the problem that response has to be a reasonable response a radical change in the system and attempt to introduce A competitive market type stable and out with looking economy. This was the vision of the system we had in Portland at the beginning of the process in the middle of night in night. Not are there was a second problem which was microeconomic expressed in the level of inflation and shortages Q's now this problem vent. It was very dramatic in Poland at the start of the process. I remember when I accepted the job of the Minister of Finance and the Deputy Prime Minister responsible for the economy. The prices in the previous miles increase by 40% wages by 90% The free market rate of exchange of the de police lawsuit against the dollar was 8 times as high as the official one and putting results were at the dramatically lower level of this was us macroeconomic situation at the beginning of some kind of other countries like Czechoslovakia Hungary had much better situation in this respect. But we see now that sucks counter says Russia and Ukraine and most of the former Republics all the former Soviet Union have a situation which resembles the police situation from 4 years ago. Why Poland move to head towards much more stable and competitive economy. a basic research to problems response want to have to compare options from the point of view of the risk social cost probability of success of getting to this better targeted final system. Tell me the situation as I described. Basically that was a choice between erotica strategy. And some other strategies which were helpless or almost hopeless. So I guess you'll see the choice was very easy because you should always prefer a risky strategy to help us. Risk strategy strategy consisted in Longshanks Peter launch a comprehensive and path program of study ization liberalization, meaning the removal of unnecessary restrictions today conomic activity and transformation of Economic Institutions or setting of a stock exchange Commercial Banking January local government, etc. Etc. In the fact that so many changes have to be introduced at about the same time and also in the fact that started isolation and Rehabilitation in the account on my work faster. You can stop it ice and you call them in six months like it was important but you cannot transform it meaning privatization 6 months, even if you move very fast it'll take you a couple of years at least. So this implies that comprehensive medical program consists of basic in stabilizing control. Become a capitalist economy. This was something new in history in economic history that was certain risk and certainty about the response of the still not capitalistic economy to the necessity letter and throw the coast of Relaxation Station message about life options and other attributes and other options resetting the national dangerous option of the lane change in the face of inherit at extremely high inflation would be back into the lake putting down fire. It's not very reasonable option if you happen to have a fire on her house on fire to delay putting out fire and I'm afraid some countries have adopted the options did I ain't necessarily radical change? Their animatronics low stabilisation a Mite stabilisation. But again, if you inherit people hyperinflation just like a pro touring a very serious problem by steps that is angels and a reasonable analysis rational analysis of various options in the face of inherited situation brought us the conclusion that the best option is rather go blind. As compared to other available options United 9 then I think until Slovakia some other countries which adopted to radical approach and dystonia in the former Soviet Union group of countries, which adopted a radical approach and you can come compare the outcome. radical approach by shooting these countries with a result of other processes of other countries, like Ukraine Russia and most most countries of the former Soviet Union and if you control for the influence of other factors. Conclusion radical approach even though it is very difficult and father and popular brings about Betty, Cruise Austin other trucks evident if you look at the college experience How do you describe already the initial situation now? What is the situation of the three years of introducing a radical approach hyperinflation is largely go used to have an inflation rate annualized inflation rate of 2000 % tonight. 9:35 % last year still too high. You see the difference and they go on as a matter of fact in the first month. I was just something which certainly appreciate most modern man because he thought women who make most of their shopping. So this is a difference which matters to those who do the shopping to range of goods and the quality of goods available in the Polish market has increased beyond recognition. I think people who visit Poland once a year I can see the difference in a better situation than posting service I think in this respect. Daniel go to tremendously rapid growth of the private sector across the whole economy service is straight from the factory Inc construction. And now it is by far the most private I seek on Dino's private economy about 60% at least of the labor force employed in the private sector and about the half at least of GDP is produced in the sector also under the impact of globalization of the economy. Mine's mistaken to try to start it to adjust to improve their performance and as a result of the rapid growth of the private sector and adjustment of a large group of State Enterprises happened to be the first countries among all the eastern central European countries with start to grow again, and this started to happen already in the late 91 last year with the rate of growth between the phone 5% among the fastest growing countries in Europe is like Improvement in environment panchatantra sized ever stronger between radical market-oriented reform and the Improvement in environment. I am very glad to do it in the presence of a friend of mine's been dealing with this intersection of problems at 1 control by the Polish example. That the radical market-oriented reforms blue brings about Improvement in the environment because and the prices are starting to look at a cost that stating the economizing on the inputs including those input switch. I though so you'll go to changes in the structure of the economy and those parts of the economy which pollute the most are shrinking and they're supposed to be beneficial from the point of view of the quality of life. And I think this list of beneficial effects would be would be much longer. But let me stop here that you mention that I also costs to the strange but this cost has to be compared at the social cost of Nana Jasmine and the social cost of no name Jasmine mean that you are not getting these beneficial effects for this opportunity cost of a just thinking about the correct principal comprise emergence of open unemployment by a lot of these guys on employment at what some people call unemployment on a joke. Now there's a transition to unemployment at home. Some people richest setting a very unpleasant from psychological point of you for that person affected but I can see any transition pass from my social security number to the market economy without unfortunately salmon employment, which may be very very bad economic structure a lot of Industry switch cannot exist, which could exist on other social security and cannot exist. And then you really competitive and marshmallow open market economy in Poland open unemployment stands at about 15% battery know that the good part of those former employer to work somewhere in the second Economist. A matter of fact, you got a new phenomenon at this guy's employment and unemployment. For you what happened to Rafael longer time in a capitalistic economy in Disguise employment in this country? What about this sudden? Is it cost the social cost? And what is the response? What is the best response to this problem for the problem of unemployment the generally speaking. I think the best response is strengthened a competitive market economy. This is the only kind of man you discoverable over generating a growing number of more and more productive example display occupied as I am with the problem of unemployment should put a lot of emphasis on the radical market-oriented reform why of course trying to strengthen the network Associates Beachwood deal with transitional unemployed how to finish my introduction. Let me mention. If you let me say a few words about social and political consequences of radical reforms. Let me start with the second reason. You can start on the very difficult situation. You cannot make situation. There is no way you can avoid some pretty widespread discontent. If you'll have this situation if you delay change because they are going to stop him from behind High inflation. And this I think is the case of Ukraine at if you persist on this process now, no Prospect because the economic situation can only get worse. If you adopt a radical approach by heading this beneficial effect, which I mentioned you are getting going to get that pretty large group of people who are going to be satisfied with this change not necessarily admitting it but satisfied the depends on National character to some extent the propensity to complain on the void Dublin to Dingle by off a group of people bring some dissatisfaction full set of reasons first because he drinks a lot of changes in relative positions. Some people are going up like new intrapreneurs. Businessman accountants managers, Saint Louis, MO. Etc etc. But some other people are going down after terms including for example miners which used to be pretty hard in the head of the previous system because the previous system update the special demand for labor every system creates a special demand for labor. So if you change an economic system, you change the statue of demand for labor as a result. You've got the radical shifts at the position and those who lose in their attempts going to be happy about the whole change second. I mentioned in the transition from disguised unemployment reopen unemployment affected by open unemployment again cannot be very happy about the whole transition. Unfortunate this is a unavoidable cost the same degree of an unemployment form means that you enlarge the scope of a general economic freedom. You remove restrictions on economic freedom, but not everybody can make it wrecked use of this and large economic freedom. Some people can because of the education the price the list. That's it. That's a some other people can't make a used directly as a result of got something to say and extend two groups of people in the process of radical transformation the worm while making the direct use of economy Freedom the other one could cook who could profit in directly because of changes produced by the first group, but that is some people who belongs to the second category make you happy that I'm happy by looking at the new economic minutes. Add a byproduct of this is a very human feeling and it is a byproduct of a successful transition to a market economy. It's not to undermine that you cannot make a political case for economic transition back to make it to May to to make all the aspects visible by the conclusion would be that even though you face the prospect of some discontent at the beginning of your transformation. Did the better choice for me, make a thousand social and political point of view? Is it to adopt a radical approach because I started transmission you create a lot of improvements in the economy. And you also create some sort of side fat complete each go to work in the direction of self-preservation of radical Reform Act example independent Central Bank compatibility of money allowed private sector which working the direction of presenting data from even if there's a political change so political argument against a radical economic approach. Thank you very much. Thank you. You are listening to less Iqbal circle with former deputy prime minister and finance minister of Poland Professor Bowl Sarah with his currently with the Warsaw School of Economics. We have a first question from Tony McCloskey with the American Refugee committee. Thank you. I'd like to ask a question not in your role as Economist, but in political commentator and it has to do with the Central and Eastern Europe and the current situation with regard to former Yugoslavia in your opinion. I like your view on whether the situation there currently poses a major threat to Central and Europeans to buy stability. Secondly what? Role, do you think Russia plays currently in promoting the instability in Central in Europe in former? Yugoslavia. Slavia thirdly, how do you view and how did the people in your country view the inability or the unwillingness of the United States and Western Europe to act in that situation and finally from your perspective by a comprehensive questions yesterday. How do you what what would be the solution from your point of view and from the point of view of your your colleagues and compatriots? Thank you. What's happening in Yugoslavia is really dramatic and tragic. It's probably cuz website of the human tragedy in the face of what is largely passivity about the countries. This is so tragic in itself sufficient to ask the question about the attitude of the West. even if this did not pose a direct threat to other countries the question is what are the links between these the these tragic events and are they cancerous? I don't think that direct links in a sense that it is very likely that this conflict May spread to other parts of Europe, but they sound dangerous in the directrix stration affect. What happens in Yugoslavia? It's showing to the west to the world that aggression face. Aggression Pace it's not being in the fridge is empty. So two things happened aggression place and threats by the West are empty stink about it much larger countries. And what kind of conclusions codes the possible addresses in other countries grow from what happened to Yugoslavia direct link? I think it's dangerous at the Solage with you. But the fact inability or unwillingness on the part of the Western countries, but I realized the dangerous but again, you have to compare the dangerous. I'm afraid that this rational principle of comparison was not applied one option was already only analyze what are the dangers of doing a prank and more activist policy weather. The former Yugoslavia, the danger of not doing this in times of indirect effects. I'm afraid we're not captured and analyzed. If you adopt my brother approached as much longer time perspective, then you may have to the conclusion that the dangers of adopting a much more energetic and activism Humane policy or less than signs of knowing. Not doing that and I think I've to some extent responded to the 9th class with your questions. I think what one can see is not a direct intervention of Russia, but the second show of sympathy at least recently with regard to the south side of the conflict in Yugoslavia. The last question was what is the view in Santa in Eastern Europe? Seconds how many views because Diamond if people aren't they open Society this but I would say the prevailing view is based on the lessons of History recent history set the photos. Adolescent of History seems to be the following one. If you have had a threat, you're basically facing two options appeasement and being eat on being to try to use the feather thread by more energetic action. And I think the lesson of history is that appeasement barely works. Thank you for Professor belts are wet. So we're going to go now to Bob White who's a columnist for the Minneapolis Star Tribune. You said that one of the features of the East Central European transformation was the scope of both the political and economic? Change and I think from what you said the other thing that the political came a little bit first. I'd like to use that as a to depress you about a contrast between Russia and China Mother Russia is the Big Bang or a small sweater or what it is. Certainly very different from what is happening in China. I wonder if if you think that what is taking place in China's compressor to Russia is 8mp canopic success story under a still pretty totalitarian central government you a letter to Spain's doing that. 1976 when the political transformation came and the question to that beyond the theory is what would your advice be to president by June if China has indeed not improved its human rights record. By this comparison of Russia and China pretty frequently in the discussions. And I know some people who say the China proves that General superiority over that's what they call gradualistic approach to economic reform and they point out to the case of Russia by saying you might be quite strongly the trash at demonstrates the failure of what they call short it up. We know that in fact, there was neither short call set up in Russia ization was started by a very rapidly 92 of a cup of years and have expansion of Mana image. Afterwards and as a result, Russia is back on the pace of very high inflation of coming back to China Wok. Is the main or very important factor in Chinese success? It's not so much gradualist. About the fact that at the start of Chinese economic reforms in the late 70s, they had economic structure much different from the Russia's economic starch in the China between 70 and 80% of the population in the late 70s work in the lift in The Villages. And sweat lodge in agriculture and then grouped in the huge smallest Cummins. What happened in China than that was de facto privatization the solar think I'll just call me on this was not call to India socialist new speaker privatisation. This was called to the introduction of the responsibility system. This was privatization. Well, if you privatize a sector which employs a back of your population it's a revolution. An economic peaceful Revolution and it was so easy to privatize Chinese ugly couches was not technologically very complex. But if you do such a dramatic and compared to a comprehensive change, you can set in motion powerful forces of self providing economic reform. That was how do you say she was the cultural activities so difficult to Frederick of privatization and opening to the outside work in China shipping from import substitution to export-oriented girls, and on top of that you've got to break a message in flow of capital most of Chinese origin from various countries of Asia into China. So you'll find at the Chinese behind Chinese sucks as they say. The factors you Trilogy special china and could not be repeated on such a scare in Russia because the Shelf agriculture is much less. It's much more difficult to privatize in contrast the structure of a heavy Industries match login Russia banned in China that look many Russians. I brought with lots of capital could moving to Russia, etc, etc. Two different situations. And this is why I should not easily jump to the conclusion that China proof generally speaking. The Chinese approach of allegedly gradualistic reform is generally better than other approaches to problems in China should be also being considered one big problem is estate sector in China. Even though the role of the state sector has been reduced by Roddy mccorley increasing role of a share of the private sector the states that remains to be a problem. It makes you closest beach at finest by the rapid increase in sightings of the population. Thanks to the success of the private sector. If the proportion of the states that there was a larger like and Russia the Chinese type of a strategy would not have been successful and China has sooner or later to do something about the state sector which me some painful adjustment so far. It has been a remarkable economic success. Alternate route to your second part of your question. I wouldn't preamp the difficult decision of President Clinton. He set his face like a choice between principal and realpolitik and I am very curious about the outcome. Thank you for festival chair with we have a question now from Stephanie Kearney from Blue Cross Blue Shield. My question is going to seem lightweight after though. So I hope you won't be disappointed. But it's it's a social question. I never thought I have the opportunity to talk to someone of your stature and tell you how much I've admired the Polish people in studying the last 50 or 60 years of their experiences and their courage. I don't think there's anyone in this room who would say that they polish are not without some tremendous back on and some kind of strength that doesn't exist in all the rest of Europe, but I noticed during your speech that you had a sense of humor. So I'm going to risk this one. I don't like sexist jokes, but I'll take a sexist joke over a Polish joke any day of the year. Is there some joke in Poland that you could tell us that would make us look as ridiculous as some of our polish jokes attempt to make you look wrongly. Did you get that? I hope you know, this is Mike. I want to give you the chance to have Vengeance on all of the ridiculously stupid people that tell those drugs, okay? But I understand that there's probably a misunderstanding and it shows how different the couch and you misunderstood not a joke that the statement about me that said it's okay. If a situation I understand you are referred to what I said secret seriously that you put a situation than most of the shopping is done by women and I'm stating this one who is profiting mostly by removal of shortages those who do the shopping because they gave me free time. So if you are referring to this, let me say this was not a joke. Wiped out too many because I've started here between 722 and 74. Have you ever been to Eastern Europe for 6 years ago about when or before 9 thank you for Professor balcerowicz. We have a question. Now from Ron Lewis is with an environmental systems company in town. Russia apparently has stalled on its on its economic reform. You can argue whether it started out on a on a radical transformation. My question is what what do you expect now in Russia in and what what comes after a hopelessness? What is the economic situation now in Russia pose? Let me start with some. You got a huge budget deficit? You've got that lots of credits by the Central Bank. Could you go to the Enterprise's which in fact a few monetary creation as a result of inflation rate of about 20% in math? Are the Gaines this background that some people who show who say you should stop at Monett heuristic policy. They mean that the monotheistic policy is to in the face of inflation rate of 20% loss. And unfortunately, this includes a large part of the present Russian government not assume that this is the day of you The depraved the policies of hours to time that we are the greater than economies even more money. activate assist and do they implement this policy and all these outcome would have to be I meant anus of an increase in the inflation rate of inflation rate increases above even this extremely high level. I don't think any of this would be conomic Improvement is possible to say the least and such a high inflation rate is dangerous. So it's not going down on its own. It's rather more likely to go up and remember that high inflation. It's extremely dangerous for the people. Because we know from McConnell economics and notion of inflation tax by printing money. The government imposes a hidden tax, since it is hidden most of the people do not realize it but it isn't and this tax was Festival on the poor people richer people somehow they know how to preserve the event so I can escape from that affect ovulation to some extent poopy bootcamp. Then the question isn't I can or cannot reply or answer to this question? I don't think anybody can on reasonable grounds only by taking gases want to respond to this. What would be the next consequence of this kind of economic situation where I can imagine two options the first option. At the same time my more people come to the conclusion and and should be put to this situation. They would do nonprofit policies. And this would be sort of a repetition of the experience of Los Angeles in American countries inflation. It seemed completely hopeless already had some examples of Latin American countries, which panelist seem to manage to put an end to verify information like Mexico like even more Argentina. So this would be the better option. This would mean that the reformers who abandoned the government would be called back. But one cannot exclude an option of damn web spider. Bad bad economy situation with QA Vermont and Slauson if people do not understand what is the source of the spectacle on the situation that would demand that damaging my message to themselves even more money. If they even more money that could only be a worsening and that just don't know what cause of action taken at what kind of events are going to take place, but that would be either of these two Dynamics. Thank you Professor Bowl sirovich. We have a number of students here today from Eagan High School from University of st. Thomas from the Humphrey Institute. All who are guests of our corporate sponsor is in this case Blue Cross Blue Shield and 3M have a question here from Todd Herzog and you're working on your PhD in economics at the University of Minnesota and Jeffrey Sachs on which the shock therapy transition strategies pull into the Sid least partially based on proximity to and trade with Europe as a crucial element in reversing the downward economic economic trend of Poland in the 1980s. So my question is to what degree is pulling relying on future trade with Europe and potential a membership in the European Union for an economic turnaround. Thank you. I'm surprised that you collect resources of the Polish economy program adopt a Canadian 99th and 32nd completely distinct question is the importance of commercial Banks of Poland with Especially the rest of Europe with regards to the first question that I can say at a various sources intellectual sources of what has been put into practice not to any significant source with its own contribution of the Polish Economist. You should be home for a long time for 15 years on economic reforms and why my basic spot which came after waking for such a long time. This one eBay canonical form has to be successful. It has to be radical because if it is a gradualistic it cannot break the lottery winner shall defeat assistant and this has been translated even before launching of the actual program tomorrow concrete program duration of the economy introduction of compatibility of Polish zloty the derivation of foreign trade privatization of introducing reforms. So this would be the response to your Priceless. I'm second question. Let me say that Ronald a very important changes in the car policy, But those in the economy of China Slovakia Hungary, what's a switch from import substitution strategy, which largely failed to export-oriented the altar looking grubs? And even so far largely successful you have increased our exports to the west, but you have also increased imports from the west and without increasing our exports. We wouldn't be possible past think he's already Imports. Now in order to continue on this path of the mutual benefits, we need opening of the West markets. Some opening of Western markets happened in 1990 including the United States including the AC but then in 92 a kind of Apache real politics seem to take place in the West. And more and more protections measures were introduced with regard to the Polish products of check and getting product. And this was better than to mental for three reasons for economic economic damage second. It's a very bad example to this country's remember that you do for me is a constant debate between reformers and anti reformers and under protection Mystic. So if I'm in a situation and I can easily point out the bad example of the West the game. They canceled West impractical policy influence of internal political debates in control center needs to be open Thursday. It was damaging because it could be used to point out that without the Restless and reliable partner to finish if I had to send out the most important kind of support. We just look on life support by Mutual advantage of open markets. This is the main message which I would address to the West open your market for Mutual benefit. Thanks very much Professor. Basora. What's we have a question now from crispr cause an attorney with Oppenheimer wolf and Donnelly. If you could tell me how Poland is changed its regulation of foreign investment as a result of the radical economic changes. Go to be taking produce a comprehensive new law in the middle of 91, which reminds him price. This was done using the expertise of Western specialist, including Galaxy and the World Bank and this is a liberal law with regard to foreign investment. Few administrative regulations of Entry. Does a full transfer of profits and of capital? Angelo for itself for cease a little other restrictions sometimes of calls in practice you have to do with bureaucracy, which is not always smoothly working but generally speaking the Regal fry make in Poland from the point of view of foreign investment is a Libra and a good one and I think because of this but also and first of all because of the Improvement in the state of the Poland economy, you go to Dynamic Duos for investment in Poland 1999 because beef roast in economic catastrophe in 1990 because we had introduced a radical and difficult and risky conomic program and some and most of the investors have displayed an attitude of wait and see Unite the wind equals small United was a very Dynamic increase at 9th Stree the Americans much much more for investment coming into Portland, then in 92. So this conference and obvious conclusion for an investment policy economics exercise. And this sucks that should not be overlooked. Thank you Professor about the rubbish for an excellent presentation and very thoughtful responses to the questions.