Since its transformation 20 years ago, the Polish economy has become increasingly connected with the international economy. The implementation of market-economy principles and the increasing participation in globalization have fostered convergence towards higher living standards and have led to a significant shift in sectoral specialization. Yet according to most globalization indicators, Poland lags behind other OECD countries in the region. Challenges are widespread to improve Poland’s position in global markets, as reflected by its performance in terms of inflows of foreign direct investment (FDI), benefits reaped from FDI and both volume and technological content of exports. These challenges cover the following areas: the privatization process; development of transport and telecommunication infrastructures; the business environment; the role of the foreign investment agency (PAIiIZ); the future of Special Economic Zones; human capital; R&D; the role of SMEs; export promotion; and a better allocation of resources via downsized agriculture, enhanced labor mobility, increased competition and financial deepening.