Analysis of the economic transformation of the Polish economy and of the 1993 elections for Parliament suggest that it is possible to proceed with pro-market and democratic reforms simultaneously. As demonstrated by the Polish case, the key to this process is the rate at which new enterprises are created. These enterprises, not the privatization of existing ones, are responsible for the creation of a private economy. This evolving new economy based on firm creation and growth creates a pro-reform constituency in the regions where it is occurring. This constituency provides strong support for pro-reform parties. The Polish case also illustrates how electoral rules and their interaction with the evolution of pro-reform constituencies affect the representation of pro-reform interests. The Polish case offers important lessons about the reform process and about the way scholars conceptualize political-economic processes.http://deepblue.lib.umich.edu/bitstream/2027.42/39626/3/wp240.pd
