party's obstinacy) and use them to pressure the regime for an expedited transfer of power. The new prime minister, General Kiszczak, who was appointed on 2 August 1989, failed to gain enough support in the Sejm to form a government and resigned on 19 August. He was the last communist head of government in Poland. Although Jaruzelski tried to persuade Solidarity to join the PZPR in a "grand coalition", Wałęsa refused. The two formerly subservient parties allied with the PZPR, prompted by the current strike pressure, were moving toward adopting independent courses and their added votes would give the opposition control of parliament. Under the circumstances, Jaruzelski had to come to terms with the prospect of the new government being formed by political opposition. Solidarity elected representative Tadeusz Mazowiecki was appointed prime minister and confirmed by the assembly on 24 August 1989. The new government led by a non-communist, the first of its kind in the Soviet Bloc, was sworn into office on 13 September. The PZPR did not immediately relinquish all power, remaining in the coalition and retaining control of the ministries of foreign trade, defense, interior and transport. Mazowiecki's government, forced to deal quickly with galloping hyperinflation, soon adopted radical economic policies, proposed by Leszek Balcerowicz, which transformed Poland into a functioning market economy under an accelerated schedule. Many Polish state-owned enterprises, undergoing privatization, turned out to be woefully unprepared for capitalist competition and the pace of their accommodation (or attrition) was rapid. The economic reform, a shock therapy accompanied by comprehensive neoliberal restructuring, was, in reality, an extension of the previous incremental "communist" policies of the 1970s and 1980s, which were now followed by a leap to greatly expanded integration with the global economy with little protection. Among the reform's negative immediate effects were the economic recession and near-paralysis of foreign trade. On longer-term bases, the country experienced quickly rising unemployment and social inequities, as enterprises were liquidated and income was redistributed away from workers and farmers, in favor of the establishment and the entrepreneurial class. A collapse of Polish industry was among the detrimental consequences of fundamental and lasting importance. Labor unions underwent further marginalization; Solidarity activity as a labor union, prioritized in the past, was now suppressed. On the positive side, the market price-income reform balanced the economy and brought inflation under control, the currency stabilized, shortages were eliminated and significant foreign investment began. The