Employment and Wage Policies since 1976

Abstract

In the period discussed the economy took a turn for the worse. In the first half of the 70s all three countries expanded their trade with the West in a desire to put their economy on a higher technological level and make it more efficient. High increases in oil prices, above all in 1979, resulted in worsening terms of trade. The slump in the West accompanied by protectionist tendencies made the competition for Eastern products on Western markets more difficult. All this contributed to balance of payment deficits and to indebtedness vis-à-vis the West, particularly in Poland. All three countries tried to grapple with this problem by slowing down economic growth.