“New structural economy” – a new Polish development policy paradigm?

Abstract

The aim of the article is to answer the question whether a development policy in accordance with the theoretical postulates of the so-called new structural economics, developed by the Chinese economist J. Y. Lin, would be a break with the Polish development policy from the transition period (1989–2015) in both practical and doctrinal dimensions. Such claims concerning the economic policy in Poland after 2015, especially the role of the state in economic development, are quite often discussed in both scientific literature and public discourse. However, contrary to popular opinions and declarations included in the Strategy for Responsible Development (SOR), it is difficult to consider a policy consistent with NSE as a radical break with the previous period of development policy. Both development policy doctrines are deeply rooted in the neoclassical economics paradigm. They share similar assumptions and use similar tools and methods of an analysis. They differ mainly in the assessment of the importance of different categories of market failure and state failure. The transition period was characterized by a particularly strong faith in the market efficiency. NSE can be treated rather as a pragmatic redefinition of the implementations of so-called Washington Consensus policies, than a break with its assumptions. The presumption of radical differences results from the erroneous and simple identification of the whole neoclassical economy with the neo-liberal ideology and laissez-faire economic policy. Meanwhile, the neoclassical economy allows a much more active role of the state than one would usually admit. Therefore NSE is difficult to be recognised as a potentially new paradigm of the Polish development policy. It is rather a shift within the former paradigm.