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In the late 1960's, Gomulka recognized the need to place ceilings on employment in an attempt to increase efficiency. Upon assuming power after the workers' riots of December 1970, Gierek reversed Gomulka's decision and opted for full employment. The regime saw the need to create some 1.7 million to 1.8 million new jobs during 1971-75 and announced its intention to keep investments high and greatly increase imports of capital equipment as a means of reaching that goal.

D. Foreign trade

Poland's foreign economic relations are oriented strongly towards the other Communist countries. Nearly two-thirds of its foreign trade is with Communist partners and about one-third is with the USSR alone (Figure 21). Poland is a full member of the Council for Economic Mutual Assistance (CEMA) and participates in CEMA programs of cooperation, including coordination of national economic planning, exchange of scientific and technical information, joint development of economic resources, and specialization in certain lines of industrial production. Poland is a member of the CEMA Investment Bank, which was set up in July 1970 by agreement of all CEMA members except Romania, which joined in January 1971. (U/OU)

Poland's economic relations with non-Communist countries are also important. Trade with non-Communist countries has regularly accounted for somewhat more than one-third of the total annual trade since 1956 (Figure 22); among CEMA countries, only Romania has a higher proportion of trade with non-Communist countries. Poland became an associate member of the General Agreement on Tariffs and Trade (GATT) in 1961, and a full member in October 1967. (U/OU)

1. Size and structure (U/OU)

Because of its larger size and more diversified economy, Poland is less dependent on foreign trade than most other East European Communist countries. Its total trade in 1972 was US$9.4 billion, or only 17% of GNP. Nevertheless, foreign trade is very important to Poland, and it has grown at almost double the average annual rate of GNP. It increased at an average annual rate of 9.8% in 1961-70, 11% in 1971, and 19% in 1972.

Poland imports a variety of industrial raw materials - petroleum and petroleum products, iron ore, manganese, ferroalloys, potash, phosphate, and cotton - as well as specialized modern machinery and equipment. As shown in Figure 23, nearly one-half of Poland's imports have consisted of fuels, raw materials, semi-manufactures, and light industry products. Machinery and equipment imports accounted for 35% of total imports during the rapid industrialization drive of the early 1950's, but dropped to 27% during 1956-60, when more attention was given to raising personal consumption. Since 1960, the

'''FIGURE 21. Geographic distribution of foreign trade, 1971 (U/OU)''' (chart/picture)

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