22 ND CONFERENCE OF NBP STRUCTURAL REFORMS AND MONETARY POLICY FALENTY 2002 TRANSITIONAL TENDENCIES IN PUBLIC ENTERPRISES – SIGNALS FOR MONETARY POLICY IN POLAND Wojciech Rogowski 1 „It is simple enough to produce a fish soup of fish, our transformation is about producing fish of a fish soup”. Cezary Jzefiak., 1994 Abstract The purpose of this paper is to present structural changes that took place in the main sectors of the Polish industry 2 in the nineties. I would like to focus in particular on the changes to corporate governance and the way of financing at different stages of the development of the industrial sector. I have taken into account public funds investments related to the restructuring of some industries and their low effectiveness in order to draw a structural policy model allowing for making reference to the public expenditure incurred and their balancing platform. The framework that I propose requires, however, the redefining of some statistical data for the purpose of determination of a development stage of an industry, the level of technology innovation, the separation of submarkets, etc. If the state - for political reasons - invests public fund in the restructuring of industries which are in their declining phase, and if these costs are not balanced against the revenue made on industries which are in their emerging phase, this will generate additional lasting public finance deficit, which in turn may affect the rate of inflation in the context of faster money creation caused by the issuing of bonds for the purpose of financing it. 1 National Bank of Poland, Department for Macrooceconomic and Structural Analyses, Wojciech.Rogowski@mail.nbp.pl I wish to thank my colleagues from DAMS, DSF i DS for consultations and assure them that this paper presents solely my own views which sholuld not be treated as an official position of National Bank of Poland. 2 I.e those where production accounts for generating of ca. 80% of industry value (12 divisions) according to GUS (Main Statistical Offcie) data.