The aim of this article is to answer the question of what fundamental modernization and developmental challenges Poland currently faces. The author argues that the developmental model that has been in place in Poland for the last 25 years — and generally worked quite well, which is evidenced by many major achievements and several economic and social indices — is just exhausting its potential. Simultaneously, we are observing intensification and aggravation of several problems — either as yet unresolved or new ones — which jointly constitute something we may call a social deficit. The main message of the paper can be summarized in a nutshell as a thesis that under current situation and circumstances, it becomes necessary to proceed to new generation of competitiveness, launch different developmental leverages, which — speaking in most general terms — are to be found mainly in the social realm. The article consists of three parts. The first one is dedicated to the characteristics of strengths and weaknesses of Polish modernization after 1989 against the background of the situation in other CEE countries. The second one defines five key developmental challenges currently faced by Poland. The third part predominantly features the fundamental difference between the previous, post-transformational developmental policy and the new, proinnovative modernization strategy, which places social policy in the very centre of its focus.