58128 The Making of a Market Economy VOL 101 N06 In this Issue: JUNE 1991 Po and · n Transition Articles 2 Poland in Transition. Poland was among the first Central European by John Maxwell Hamilton countries to launch economic reforms, but the road to a market economy is fraught with difficulties. can't make an aquarium out of fish 4 Getting Started. Orientation isn't what specter is haunting Europe­ it used to be. the specter of communism." So stew. 7 Mission to Mongolia. The 'last wrote Karl Marx and Friedrich Communism, as the Michnik's apho­ frontier' is in a hurry and has Engles at the beginning of The Commu­ rism suggests, killed off critical compo­ ambitious plans to privatize. nist Manifesto in 1848. And so might nents of capitalism, although the miss­ 9 Hands Across 19th Street. The Bank people agree today. ing pieces are not always immediately and Fund reap benefits and savings by The specter of communism, Marx obvious. To a first-time visitor, Prague combining mainframe computing and Engles thought, haunted the minds seems like other lovely European cities, workloads. says Peter Whitford, Principal Environ­ of capitalists too frightened of revolu­ 13 The Rainforest Guests. It wasn't your ment Specialist, EMENA Region, but everyday meeting when members of tionary change to see that communism was the wave of the future. Czechoslovakia as well as Poland, the "Alliance of Forest People of Brazil" came to the Bank. Today world-shakers are not commu­ Hungary, Bulgaria, Yugoslavia and Ro­ 16 An Onomastic Odyssey. What's in a nists. They are throwing out commu­ mania-all countries in which Bank name? nists and trying to create free-market staff now work-lack modern banking, economies. Revolutionaries from the accounting, and court systems. Departments Poland was among the first countries Baltic to the Mediterranean have even 11 On the Record. Edward V.K. Jaycox jettisoned the old name "Eastern Eu­ to start the reform process. Its nascent on a long-term vision of African rope," which smacked too much of private sector is booming, Harvard development. Moscow domination, and describe economist Jeffrey D. Sachs said at the 18 Staff Association. Something Like a themselves as Central Europeans. But World Bank's annual conference on De­ Union? velopment Economics in late April. But 19 Around the Bank communism still haunts them. For as these new nation builders are learning, Mr. Sachs, who has advised the Poles 21 Staff Changes 24 Answerline it is not easy to exorcise the elaborate on free market reforms, admits no one communist system, which so thor­ knows just how much it is booming. Cover oughly shaped attitudes and institu­ The Poles don't yet have the capability Ayoung Indian from the Brazilian tions. to measure free-market activity. rainforest holds a hollow reed allowing "The heritage of the past few de­ him to breathe underwater. cades has proven worse than we could New laws Photo by FatherJoao Saffirio possibly have anticipated in the joyous Central Europeans are in various atmosphere of those first few weeks of stages of creating free market infra­ freedom," Vaclav Havel reported in a structure. They are writing new laws, New Year message to his Czech and lifting subsidies, moving government­ Slovak countrymen and women. "Each owned enterprises off state books and day brings new problems, and each into private hands, and learning to day we realize how interrelated they manage their economies through subtle are, how long they will take to solve, monetary policy rather than govern­ and how difficult it is to establish the ment dictate. Each step along the way proper order in which to deal with is difficult. them." Legislators can quickly pass laws on banking and investment, says Alan The Bank's World is published monthly in Fish stew Gelb, Chief of the Bank's Socialist Econ­ Washington, D.C., by the Information and Public Affairs Division of the World Bank for all Adam Michnik, once a dissident es­ omies Reform Unit. But it takes years employees and retirees of the World Bank Group, 1818 H St., N.w., Room T-8049, Washington, sayist and now a member of the Polish to train competent bank supervisors. D.C. 20433. Sejm