development of shortage economy. The omnipresent and destructive underground economy was characterized by such phenomena as bribery, waiting lists, speculation, direct exchanges between enterprises and large percentages of personal incomes deriving from secondary activities. Societal degradation was accompanied by unprecedented deterioration of biological environment and physical and mental health; mortality rates kept increasing. In the late 1980s, the PZPR feared another social explosion because of high inflation, depressed living standards and deepening public anger and frustration. The authorities themselves, facing an increasingly disorderly and unmanageable system, felt perplexed and powerless. Last years of the People's Republic and the transition period Toward Round Table and semi-free elections In September 1986, the government declared a general amnesty and began work on a number of meaningful reforms. Given the liberalized political environment, Wałęsa was urged to reconvene the National Commission from the time of the First Solidarity, but he refused, preferring to deal with the circle of Solidarity's Expert Commission advisers. A National Executive Commission, led by Wałęsa, was openly established in October 1987. Other opposition structures such as the Fighting Solidarity, the Federation of Fighting Youth, the Freedom and Peace Movement (Ruch Wolność i Pokój) and the Orange Alternative "dwarf" movement founded by Major Waldemar Fydrych began organizing street protests in form of colorful happenings that assembled thousands of participants. The liberal periodical Res Publica negotiated with the authorities its officially published release. In the 1987 Polish political and economic reforms referendum, 67% of the eligible voters participated and most of them approved the government-proposed reforms, but a popular mandate was formally missed because of the unrealistically stringent passage requirements self-imposed by the regime. The referendum debacle dealt a blow to the process of market-oriented economic reforms, which had been sought by Polish governments since the early 1980s. The ruling communist/military establishment slowly and gradually came to realize that a deal of some sort with the opposition would eventually be necessary and would have to include the leading Solidarity figures. Solidarity as such, a labor union representing workers' interests, was unable to reassert itself after the martial law and later in the 1980s was practically destroyed, but preserved in the national consciousness as a myth that facilitated social acceptance of systemic changes previously deemed unthinkable. The Solidarity organization as a mass movement, and with it its dominant social democratic element (supporters of democratic socialism), had been defeated. Solidarity's name had continuously been