At the same time, as compared to Ukraine, in Poland "the hard budget constraint on state enterprises, together with sufficient standards of corporate governance" were the main governmental instruments to avoid a "large-scale asset stripping before privatization"

. This was one of the key reasons for which the economic rebound started quite early for Poland, as compared to Ukraine. The privatization process did not take the chaotic characteristics it had in Ukraine, where the state assets were often simply divided between groups of interests and individuals close to the decision factors and power leverages. The rational privatization process in Poland meant that many of these assets, still functional, could be used to resume economic growth. Further along, the fact that there was a rational privatization of these assets meant that the direct foreign investment could gradually start during the early 1990s.

There was another explanation for the economic evolution in...
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