Foreign Privatization in Poland

Introduction

The long-term development of the former socialist countries of Central and Eastern Europe (CEE) largely depends on their success in attracting foreign direct investment (FDI) to revive their economies. FDI is the most common vehicle used by foreign investors when entering new markets with their own products and technologies.

The perception of the FDI phenomenon in CEE countries is frequently based on emotional prejudices and short run political considerations, not rational economic considerations. Two divergent perceptions of the FDI phenomenon exist: at one extreme is the illusion that FDI can solve a country’s major economic problems; at the other, the fear that the country will be "sold out". Neither of these two perceptions is realistic, and each is detrimental to both the host countries and foreign investors.