This article shows how the development of pension funds in Poland can be linked to privatization. It also proposes a mechanism, modeled on solutions adopted in Scandinavia, to strengthen corporate governance in state owned enterprises. It argues that such a link would make it easier to overcome the political obstacles to privatization that stem from its negative public perception. First, the link would result in a sustainable diffusion of business ownership and would effectively separate politics from business management. Second, it would increase pension savings without straining public finances. The literature review indicates that both effects would be conducive to Poland's long-term economic growth.