The Great Depression in Poland (1929-1935) and its Consequences

Abstract

The article examines the Great Depression in Poland (1929-1935), focusing on three interconnected problems that remain controversial or insufficiently analysed in the existing literature: the chronological boundaries of the crisis across different branches of the economy, the specific features of industrial crisis in Poland compared to other countries, and the long-term consequences of the depression for the development of monopolist capitalism.
The author argues that the general economic crisis in Poland lasted from autumn 1929 to autumn 1935, which is longer than in most other countries. This extended duration reflects the decisive weight of agrarian crisis in the Polish economy, where agriculture accounted for two-thirds of national income and employed over 60 per cent of the active population. The agricultural crisis began earlier and ended later than the industrial crisis, and it was the collapse of purchasing power among the rural population that amplified and prolonged the industrial break-down.
The analysis of industrial production indices for 22 capitalist countries demonstrates that, despite Poland having a predominantly agricultural economic structure, Polish industry reacted to the depression in a manner similar to highly industrialized countries such as Germany, the United States, and Canada, suffering a fall of 41 index points. Among the causes of this anomaly the author identifies the withdrawal of foreign capital, the deflationary policies of the Polish government in 1930-1935, the degree of monopolization and cartelization of industry, and the structural separation between the capitalist industrial sector and the small-producer agricultural sector.
The article concludes that the Great Depression marked a qualitative turning point in the development of monopolist capitalism by permanently expanding the economic role of the state, promoting economic planning, increasing armaments as a tool of economic stimulus, and fostering the rise of the economic-military complex.