The goal of this paper is to contribute to the discussion about the way to transform the Polish economy from a centrally planned to a decentralized market system. This is worthnote that no formal theory of such a transition exists. The following paper should be viewed only as an illustration of problems and opportunities on the way of transformation. In other words, this article analyzes the specyfic distortions in Polish economy which involve the process of transition, presents the problems which is faced by Poland and main opportunities.Hitherto existing experiences show that reforms are going to take a very long time and their social and economic costs appear to be greater than original anticipated. This article claims that one of the most important barrier for reforms and growth is inadequately developed services in general and knowledge–intensive ones in particular and a low level of enterprises' efficiency. Also specific policy proposals stem from the analysis.