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A critical analysis of the transformation of the Krakow regional economy in the context of both Poland's transitional national economy and the emerging global division of labour. This work focuses on foreign direct investment, privatization, the development of small firms and the importance of the role of organized labour. It is based on original research in Krakow, involving interviews with union members, management, officials of the Regional Labour Office, regional government, the Ministry of Privatization and national Solidarity officials. Case studies of steel works, food processing organizations, and small and medium-sized businesses, are provided.