The efficiency of the private sector in Poland is higher than that of publicly-owned enterprises. During the years covered by the study (1995-2004), the gap grew steadily and in 2004 the productivity in the private sector was nearly twice higher. Almost 80% of the national gross production is the result of the activity of only about 65% of the employed population.The private sector and the whole Polish economy with it, will develop through a combination of two ways: improvement of the economic efficiency and an absolute increase in financial outlays - mainly investment - on the existing enterprises and on setting up new ones. It is therefore an intensive path of development which should predominate over the earlier, extensive model. The privatisation process should be continued and should include most businesses which operate according to market principles and whose main activities include material production or intangible services. Special attention should be paid to so-called 'difficult' branches, such as coal mining and railways.