3. 4 5WarsaW:
acitytoinvestin, acitytolivein
MIPIM 2015:
we look forward
to seeing you at our
stand no. R8. D1
Warsaw, as the capital of Poland, remains
the country’s main economic and business
hub and the leader among CEE countries.
Warsaw’s strong position and its promis-
ing prospects for further dynamic develop-
ment encourage investors to continue or
initiate operations in this region. The 2015
forecasts for the countries of Central and
Eastern Europe are promising. GDP in this
region will grow by 2.5%, i.e. twice as fast
as in the Euro zone, and for the fifth year
in a row Poland should remain the fastest
growing economy in the region[1]
. In the
report, "Emerging Trends in Real Estate
Europe 2015" Warsaw was ranked 14th in
Europe, making it the dominant location
of commercial real estate in Central and
Eastern Europe[2]
.
The city’s economic potential can be seen
in a number of key indicators that guide
investors in their decision making process.
Mention should be made of the region’s
large and receptive market, land and
property offers that are attractive both in
terms of price and location, a labour mar-
ket providing access to highly educated
employees, access to scientific research
centres, a concentration of business envi-
ronment institutions, and an appropriate
city management policy, including system-
atic efforts to strengthen the city’s met-
ropolitan functions. All this contributes
to the increased interest in the Warsaw
market shown by investors and develop-
ers. In 2014 alone, more than 276,000 sqm
of new office space came onto the market,
and the total area of modern office space
now exceeds 4.4 million square metres[3]
.
Warsaw occupies 6th place in the global
Investment Intensity Index, investment
intensity being the ratio of the volume of
investment transactions in commercial real
estate to the size and economic potential
of a given city. In this index, Warsaw was
only outranked by London, Oslo, Munich,
Stockholm and Copenhagen, ranking it
higher than such cities as Paris, New York
and Tokyo[4]
.
The city’s effective use of EU funds and
its commitment to integrated territorial
investments, whose aim is economic and
social development for the municipalities
of the metropolitan area, gives an addi-
tional boost to its investment potential.
Even through the hard times of the recent
economic crisis, the city’s authorities have
carried out strategic investments while
maintaining the investment budget at the
highest level. In the years 2007-2014, over
PLN 8 billion EUR were spent on invest-
ments, including 2.2 billion in EU Funds.
The city’s strength lies not only in its busi-
ness advantages but also the satisfaction
of those who work and live here. In terms
of quality of life, the city figures excep-
tionally well. Its well-developed roads,
sports and cultural infrastructure, green
spaces, research facilities and the interest
shown in the population and their needs,
ensure convenience and functionality
on a daily basis. A good example is the
Veturilo urban bike rental system, consid-
ered one of the best in the world - better
than the systems found in London, New
York or Washington. In turn, Warsaw’s
beaches on the Vistula River last year
proved to be one of the top 25 places in
the world most often visited by Facebook
users. According to the Lafarge "Happy
city" study, conducted in collaboration
with IPSOS, some 81% of those living
in the capital do so by choice and feel
good here!
The city’s
strength lies not
only in its business
advantages but also
the satisfaction of
those who work
and live here.
Our Partners
at MIPIM 2015:
BBI Development,
Ghelamco, Golub
GetHouse, HB Reavis,
Kulczyk Silverstein
Properties, Okam
Capital, Poczta Polska,
XCity Investment
MedIa Partner:
Poland Today
[1] The Erste Group’s "EmergingEurope" report
[2] Report by PwC and the Urban Land Institute (ULI): "Emerging Trends in Real Estate® Europe 2015"
[3] The WRF report: Warsaw Research Forum (WRF) consists of seven real estate service firms: CBRE,
Colliers International, Cushman & Wakefield, DTZ, JLL, Knight Frank and Savills. The representatives of
these companies aim to standardize indices published through collection and comparison of quarterly data.
[4] report by Jones Lang LaSalle conducted between the second quarter of 2011 and the first quarter of 2014.
7. 12 13Tableofcontentstableof
contents
editorial
14
in focus
16-25
Leader
26
Building
momentumOver the past 25 years Poland has
built up several advantages that will help
it continue its economic development
into the next quarter century
30
The learning curve
Poland’s universities will have to make
some difficult but essential changes for
the country’s economy to move forward
international
34
Kievcallson
BalcerowiczUkraine’s nascent government has asked
Poland’s most famous economic reformer
for advice and advocacy
CANADA IN FOCUS
37-48
Poland Today takes a look at
Polish-Canadian relations with
a review of economic cooperation,
an interview with the CEO of Orlen
about his firm’s investments in Canada
and an interview with Canadian
Ambassador to Poland
Alexandra Bugailiskis
BUSINESS
50
Business review
A round-up of the top business
and economic stories in Poland
54
Digginga holePoland’s miners are fighting to keep their
state-funded benefits in a sinking industry
56
A hub of entrepreneurship
Much is made of Poland being an economic
hub of the region. One non-profit now wants
to make it a regional centre for start-ups
58
Create optimal conditions
Poland Today speaks with Bartosz Krzemiński,
vice president of rail vehicle firm Newag,
about the challenges facing Poland’s
business environment
AUTOMOTIVE IN FOCUS
61-67
After a downturn caused Poland’s automotive
industry to shrink, the industry has now got
back on the road toward growth. But there are
potential potholes in the road ahead. Poland
Today takes a look at the state of the auto
industry and the challenges it faces
URBAN ISSUES
MIPIM 2015 EDITION
68-84
In this expanded edition of our property-
focused section Urban Issues for the MIPIM
real estate show in Cannes, France, Adam
Zdrodowski writes on the latest developments
in the investment market, Poland’s booming
logistics sector and rising interest in modern
office space from public entities
KATOWICE IN FOCUS
85-93
Katowice has long been known as the heart
of Poland’s industrial and mining heartland
– but the city is reinventing itself and
touting its attractiveness for business service
sector investments. We take a look at the
city’s economic profile and cultural offer, and
interview newly elected Mayor Marcin Krupa
HISTORY
94
It happened in ... April
April 7, 1995. The first line of the
Warsaw Metro opens
96
Eyewitness:
100 years
of historyAs real estate business giant
David Mitzner approaches his 100th
birthday, Poland Today looks back
at some of the events he has witnessed
Sport
101
Winning ways
Poland’s men’s national handball team took
third place in a thrilling performance at the
World Championship, Agnieszka Radwańska
and Jerzy Janowicz won tennis’ Hopman Cup,
while Kamil Stoch ski-jumped to victory
on home soil
event review
103-112
In this edition of Poland Today’s event
review, we look at conferences that focused
on the investment attractiveness of Wrocław,
Opole and Gliwice. We also look at Dąbrowa
Górnicza’s efforts to attract the automotive
industry and a Netherlands-Polish Chamber
of Commerce event that raised tens of
thousands of złoty for a very worthy charity
impressions
114
Bringing out the entrepreneur
Parry Sondhi, originally from India,
talks about his personal experience
as a foreigner living in Poland
13
When you read through the pages
of this issue of the magazine, you will
see that Poland Today is becoming
increasingly busy and well-established.
Starting with the hosting and organi-
sation of our ‘Primetime Poland’ lunch
& conference at the world’s leading real
estate fair in Cannes, MIPIM, and ending
with our new ‘Transforming the Future’
initiative, Poland Today is leading the
way in fostering ties between Polish and
international business, as well as in pro-
viding a platform for foreigners to do
business in Poland. And those are just
our plans for the first half of this year.
Our ‘Transforming the Future’ initia-
tive, which takes place in Warsaw on
June 11, will continue where we started
last year with our ‘Poland Transformed’
conference by bringing leading journal-
ists from major titles around the world
to Poland to see the country’s best side.
We’ll be looking at the future of busi-
ness in Poland in nine key sectors and
we’ll be bringing in the heads of the
companies on which this future will
be built – in other words, those com-
panies which have been the most suc-
cessful in their sector to date. We’ll also
be discussing how these companies
can best maximize their opportunities
in global markets.
Further emphasizing our creden-
tials as a company that ‘brings Poland
to the world and the world to Poland’,
the Polish Ministry of Foreign Affairs
asked us to renew the project we
conceived and produced for them
last year – Discover Polska – to be
used by all Polish embassies around
the world to promote the country.
We’re very proud of this project and
if you haven’t yet seen it, please check
it out at poland-today.pl
These are exciting times for Poland,
both in the ‘Chinese’ sense of the word
(witness the situation in Ukraine across
Poland’s border) and in the ‘Western’
sense. As is pointed out clearly in these
pages, Poland needs to seize the oppor-
tunities available in order for the coun-
try to reach its full potential. Businesses
can no longer copy in order to catch
up. They must create the change them-
selves. By covering new ground and
opening up new areas of discussion,
Poland Today will continue to punch
above its weight and do its part.
Richard Stephens
Publisher
Poland Today
Publisher’s
note
tableof
contents
SCIENCE & TECHNOLOGY
98
Pressingthe
rightbuttonsThough it began in the 1980s with bootlegs
and bargain games, Poland’s video game
industry is now producing world-class titles
BOOKS & ARTS
100
Climbingfor
freedomFor 20 glorious years Poles dominated
Himalayan mountain climbing, though
at a terrible cost
Katowice transforming
pages 85-93
Balcerowicz advises
Kiev on reforms page 34
The road ahead for
the auto sector pages 61-67
Poland’s game developers hit
a new high score: page 98Digging a hole page 54
Poland’s Oscar
page 24
9. 16 17AMERICAS
Washington Times
Russia, Poland battle over
conflicting World War II
Victory Day celebrations
Tensions are increasing between Poland and
Russia over a series of milestones commemo-
rating 70 years since the end of World War
II. Polish President Bronisław Komorowski
referenced the possibility of inviting European
leaders to celebrate the 70th anniversary of
the end of the war in Gdańsk this May, which
would compete with a similar event planned
by the Kremlin in Moscow. Komorowski also
me tioned that the end of the war “did not bring
freedom to all the peoples of Europe,” a refer-
ence to the Soviet Union’s post-war domination
of Eastern Europe. In January, Poland faced
criticism from Russia after President Vladimir
Putin was not invited to a ceremony marking
70 years since the liberation of the Auschwitz-
Birkenau concentration camps by the Soviet
army. At the time, Kremlin Chief of Staff Sergei
Ivanov called it an attempt to “rewrite history”.
Associated Press
Poland will not send lethal
weapons to Ukraine
Poland will not send lethal weapons to Ukraine
to aid its fight against Russian-backed separa-
tists, according to Defence Minister Tomasz
Siemoniak (pictured above). “I want it to be
clear,” Siemoniak said. “It is out of the question
to send heavy weaponry to Ukraine, including
missiles, tanks or similar weaponry. Poland
did not have and has no such plans.” Previously,
Siemoniak had left open the possibility, should
the United States change its position and begin
defensively arming the Ukrainian military,
as had recently been discussed by senior
US officials. Poland has already supplied
Ukraine with some PLN 17m worth of food,
clothing and blankets, and is preparing
to send further non-lethal aid.
Wall Street Journal
Poland receives its
highest ever Economic
Freedom Index score
In a yearly survey of economic freedom pub-
lished jointly by the Wall Street Journal and
the conservative US think thank The Heritage
Foundation, Poland received its highest-ever
score, ranking 42nd among 178 countries. Po-
land moved up eight places from last year in the
index, which the Heritage Foundation says is
based on rule of law, limited government, regu-
latory efficiency, and open markets. Poland also
placed 19th among the 43 European countries
ranked, and received a score above the
global average, which rose slightly
since last year’s survey.
Toronto Star
Roman Polański extradition
request sent to Polish court
Polish prosecutors have moved another step
towards extraditing Roman Polański (pictured
above) to the United States, where he is sought
in connection with a 1977 sex crime. The
81-year-old film director was preparing for
a new film in Poland, and was questioned
in Kraków in January by local prosecutors.
If a regional court recommends extradition
in response to prosecutors’ request, it will
move to the justice minister for further review.
ASIA & PACIFIC
Xinhua
Chinese Spring Festival’s gala
performance staged in Poland
Before an audience of two thousand, the Shang-
hai Cultural Troupe welcomed the Chinese
new year at Warsaw’s National Theatre. With
acrobatics and song and dance, the perfor-
mance continued a series of events aimed at
introducing Chinese culture to Poles, organ-
ised by the Chinese Ministry of Culture and
the Chinese Embassy of Poland. Chinese Am-
bassador to Poland Xu Jian was in attendance
to wish Poles a happy Chinese new year, and
was joined by Jacek Olbrycht, director general
of the Polish Ministry of Culture.
Times of India
Poland seeks new
partnerships in India
During a visit to the eastern Indian city of
Vadodara, Polish ambassador to India Tomasz
Lukaszuk announced intentions to increase
partnerships between Poland and India’s
industrial corridors and so-called ‘smart cities’.
Lukaszuk expressed Poland’s desire to grow bi-
lateral trade volume between the two countries
from $2bn to $20bn over the next few years.
Agriculture, mining, and the renewable energy
sector are a few possible targets for investment.
Globalnewsreview EUROPE
The Guardian
Polish nationalists launch
petition against Oscar-
winning film ‘Ida’
The Polish Anti-Defamation League has cre-
ated a petition against ‘Ida’, director Paweł
Pawlikowski’s film about a nun in 1960s Poland
who discovers her Jewish roots, for being
“anti-Polish” and misleading viewers about
the role of Poland during the Holocaust. The
Polish-Danish production, which recently won
the award for best ‘Film Not in the English
Language’ at the British Academy Film Awards,
also won the Best Foreign Language Film Oscar
at the Academy Awards in February.
EUObserver
Poland attacks ‘Russophile’
France in sanctions talks
Polish agriculture minister Marek Sawicki
blasted French counterparts over their coun-
try’s relations with Russia, claiming that France
is putting economic interests over European
solidarity during the ongoing Russian-Ukrani-
an conflict. France recently made an agreement
in principle to resume pork sales to Russia,
which last year instituted an EU-wide ban
on pork and other food imports. The EU
has been considering levying additional sanc-
tions on Russia for its backing of separatists
in eastern Ukraine.
Deutsche Welle
NATO due to more than
double ‘rapid response’ force
in reaction to Ukraine
NATO Secretary-General Jens Stoltenberg
announced, as expected, that the alliance will
expand its rapid response units to 30,000
troops, from 13,000. “This is something we
do as a response to the aggressive actions we
have seen from Russia, violating international
law and annexing Crimea,” he told reporters.
The growing threat of ISIS was also cited as
a cause for the increase. Six regional command
and control centres would be set up to facilitate
the forces, and an existing headquarters for the
alliance in Szczecin would be expanded.
MIDDLE EAST
Israel Hayom
Hitler Youth band drum
made out of Torah scrolls
found in Poland
An estate sale in Łódź turned up a drum from
a wartime Hitler Youth band made from a orah
scroll, a handwritten copy of the Pentateuch
used in Jewish services. A volunteer from the
association From the Depths, a Holocaust me-
morial and preservation group, heard about the
estate sale of a former member of the Nazi par-
ty. The group sent a representative to purchase
the drum, and plans to bring it on a lecture tour
through Poland, Europe, and the US.
INFOCUS
compiled by
Yoni Wilkenfeld
‘[Increasing the size of NATO
rapid reaction forces] is something
we do as a response to the aggressive
actions we have seen from Russia’
nazwadziału
10. 19
Aviation valley
Aviation Valley is an aerospace R&D
cluster located in south-eastern Poland
around the city of Rzeszów. The Aviation
Valley Association currently comprises
over 100 aerospace companies cooperating
with Polish universities of technology
and public institutions.
So far investors include: Sikorsky Aircraft,
AgustaWestland, Siemens, Goodrich, Pratt &
Whitney, Hispano Suiza, MTU Aero Engines,
Carl Zeiss.
23,000 is the current employment in
the cluster. The figure is forecast to increase
to 28,000 by the end of 2018.
$2bn worth of exports annually come
from the companies grouped in the cluster.
41% of Poles aged 25-34 have attained some
tertiary education, compared with an OECD
average of 39% (as of 2012).
53% of students in tertiary education
graduated, compared with an OECD average
of 39%. This is the second highest result within
the OECD (as of 2012).
Recent discoveries by scientists from
Warsaw may revolutionize the computer
market. Graphene, an ultra-thin allotrope
of carbon with extraordinary conducting
and mechanical properties, has so far been
too expensive in production to be applied
commercially. This barrier was recently
overcome by Polish scientists who hold the
patent for a production method cheap enough
to enable mass industrial application.
In 2013,
Poland’s total
expenditure on
R&D amounted
to 0.87% of GDP
By the end of 2013,
145,600 people
were employed
in the R&D sector
in Poland
Learning curve:
Businesspeople
often praise Poland’s
labour pool for being
full of well-educated
workers. And while
Polish primary and
secondary schools
score well when
compared to their
OECD counterparts,
Polish universities
are ranked far
lower. For Poland
to move forward
as a knowledge-
based economy,
universities will
have to make
some tough but
necessary reforms
(see page 30).
Global companies that have located
their R&D centers in Poland:
– ABB
– Bosch Siemens
– Capgemini
– Delphi
– GE Aircraft Engine
– GlaxoSmithKline
– Google
– IBM
– Intel
– Lockheed Martin
– Microsoft
– Oracle
– Samsung
– United Technologies
Corporation
– Volvo
There were
73 science and
technology parks
operating in Poland
as of the end of 2014.
Poland ranked
25th in Bloomberg’s
Global Innovation
Index 2015. (24th
in 2014, 30th in 2013
and 34th in 2012).
In 2011, public
expenditure
on education,
from primary to
tertiary, amounted
to $25.69bn ($6,420
per student) which
was equal to 4.9%
of GDP and 11.4%
of total public
expenditure.
research by
Bartosz Stefaniak
(public & private expenditure)
EducationandR&DinPoland
While Poland lags behind its European peers in research
and development, momentum is building
18infocus
photo:MichaelStaudt(Visum)
Polish students’ performance
in mathematics: 518 pts.
OECD average: 494 pts (2012 PISA study).
Polish students’ performance
in science: 526 pts.
OECD average: 501 pts (2012 PISA study).
nazwadziałunazwadziału
11. 20 21
Scores of Polish
families evacuated
from eastern Ukraine
After several weeks of delay, 178 Polish
citizens were evacuated from the
war-torn Donbas region of Ukraine
on January 13. In early December,
Polish Prime Minister Ewa Kopacz
had announced a plan to bring doz-
ens of Polish families from in and
around the city of Donetsk, a flashpoint
in the conflict between Ukraine and
Russian-backed separatists. While
Kopacz promised to bring the families
to Poland by Christmas, the plan fell
through over the holidays.
Ultimately, the Polish consulate in
Kharkiv drew up a list of those need-
ing evacuation, and Deputy Foreign
Minister Konrad Pawlik travelled
to eastern Ukraine to advise. The refu-
gees were transported from the Donbas
region to Kharkiv through various meet-
ing points, and finally flown to Poland’s
military airport in Malbork, about
50 km south of Gdańsk. They have been
offered temporary housing, assistance
in finding homes and employment,
and social security benefits.
According to a 2001 census, the
Polish minority in Ukraine numbers
some 150,000, of whom over 20,000
primarily speak Polish.
Leaders gather in Poland
for 70th anniversary of
Auschwitz liberation
Seventy years after the liberation of
the Auschwitz-Birkenau concentra-
tion camps by Soviet troops, thou-
sands gathered at the Auschwitz
memorial in Oświęcim in February
to commemorate the anniversary.
Leaders from the global Jewish com-
munity, Poland, and from dozens
of other countries honoured the victims
of the Holocaust and the several hun-
dred survivors among them.
Polish President Bronisław
Komorowski, one of several international
heads of state in attendance, opened
the commemoration. Komorowski
called the survivors “guardians of the
memories of Auschwitz,” and their
words and voices were indeed the focus
of the ceremony. Roman Kent, a Łódz
native who survived several camps,
spoke to the purpose of the event.
Interrupted by applause and nearly
overcome with emotion, he repeated
his central message: “We do not want
our past to be our children’s future.”
In between remarks by other survi-
vors and the director of the Auschwitz
Museum, the ceremony premiered
a 15-minute documentary on the his-
tory of Auschwitz produced by the
American director Steven Spielberg,
who was in attendance.
The ceremony took place amid grow-
ing concerns over a rise in European
anti-Semitism, and just weeks after four
Jews were killed during a hostage crisis
in a Paris Kosher supermarket.
Near the end of the ceremony, before
survivors and dignitaries laid candles to
commemorate the dead, Chief Rabbi
of Poland Michael Schudrich joined other
Jewish leaders for a moment of prayer.
They recited the mourner’s kaddish,
a pillar of Jewish liturgy typically recited
by grieving children and parents. Its
closing lines, words uttered daily by
Jews for a millennium, gave voice to a
hopeful future: “He who makes peace
in his heights, may he make peace upon
us, and on all of Israel.”
Swiss franc soars, along
with Polish mortgages
In a highly unexpected turn, the Swiss
National Bank (SNB) dropped a cap on
the franc against the euro in January,
dramatically dropping interest rates
and sending the Swiss currency soaring.
While the surprise move shook mar-
kets worldwide, worry was palpable
in Poland, where about 14.6% of loans
and 37% of household debt are denomi-
nated in Swiss francs. The złoty fell 22%
against the franc after the decision, and
the Polish stock exchange dropped
steeply. In the years before the global
economic crisis (and for some thereaf-
ter), it was common in Poland and other
Central European countries for banks to
lend in foreign currencies, which typi-
cally offered a lower interest rate. Over
half a million Polish families now face
higher payments on those loans.
The SNB first pegged the franc to
the euro in 2011, but the euro has depre-
ciated considerably since then, creating
some imbalances in the Swiss economy.
By press time, the Swiss franc had
cooled down from its highs imme-
diately after the SNB’s decision, but
still remained well above comfortable
levels for some mortgage payers,
at about 3.90 złoty per Swiss franc.
Some holders of franc-denominated
mortgages staged protests in cities
throughout Poland.
Poland’s banking association and
some members of the government have
proposed plans to aid those with mort-
gages in francs. However, economists
don’t expect a huge rise in defaults, and
say the stability of Poland’s banking
system is not threatened.
by Yoni Wilkenfeld
O Canada!
Polish-Canadian
cooperation has a
long history, but now
the countries want
to work together on
innovating for the
future. That looks
all the more likely,
seeing as a new
comprehensive trade
agreement between
Canada and theEuro-
pean Union was
signed last year. Read
more on the Polish-
Canadian partnership
in our Canada in
Focus section.
see pages 37-48
infocus
photos:KrystianMaj(Forum),ŁukaszDejnarowicz(Forum)
12. 22 23
David Sugalski,
‘The Polish Ambassador’
Fans of California-based electronic
musician and disc jockey David Sugalski
don’t just come together to hear his
music. They also gather to plant ‘pub-
lic food forests’, create community gar-
dens or clean up public space. On the
recent tour to promote his new album
‘Pushing through the Pavement’ (offi-
cially called a ‘Permaculture Action
Tour’), such activities were held in each
of the 33 US cities the musician visited,
engaging “tens of thousands” of people,
according to his website.
Sugalski is better known as ‘The
Polish Ambassador’, a stage name
under which he records and performs
startlingly rich electronic music. Active
since 2005, this unofficial diplomat
has released 12 albums as The Polish
Ambassador, and another as ‘Ample
Mammal’ – a nom de plume he uses
when creating a different style of music.
What are this ambassador’s politi-
cal goals? He has none, insists his
website. “The Ambassador is not a polit-
ical partisan. Rather, he is a diplomat
for a new paradigm rooted in crea-
tive joy, radical self-expression, and
ecological principles.”
Regardless, the fusion of high-qual-
ity music and social activism has proved
potent enough for the Ambassador to
gain a significant following of fans and
a well-regarded reputation in the elec-
tronic music community. No word yet
on when he is coming to Poland, but
as of press time, all of his music was
available for download free on his
website at: http://thepolishambassador.
com/free-music.
Józef Oleksy
Known for his gravelly voice, former
Prime Minister Józef Oleksy, a fixture
of Poland’s political left for decades,
died in January after a long battle with
cancer. He was 68.
Oleksy’s political activity dates
back to 1968, when he became a
member of the Polish United Workers’
Party – Poland’s communist party. He
rose up the ranks, taking part in the
1989 Round Table Talks that led to
Poland’s first partially democratic elec-
tions later that year.
Oleksy became a member of the
Democratic Left Alliance party, or SLD,
in 1990. He held the post of Speaker of
the Sejm, Poland’s lower house of par-
liament, from 1993 to 1995 and again
from 2004 to 2005. He served as prime
minister from 1995 to 1996, resigning
amidst a scandal over his connections
to a KGB agent. After a rift with the
party, he left SLD in 2007.
His funeral was attended by President
Bronisław Komorowski and Prime
Minister Ewa Kopacz, as well as his col-
leagues from the political left, former
Prime Minister Leszek Miller and former
President Aleksander Kwaśniewski.
Aleksander Doba
In October 2013, Aleksander Doba left
Lisbon, Portugal on a seven-metre
kayak to spend the next seven months
paddling through the Atlantic Ocean.
Doba completed his improbable jour-
ney last April at a sleepy marina in New
Smyrna Beach, Florida. The retired
engineer had paddled 7,716 miles in
open water, setting a world record and
becoming an overnight Polish celebrity.
National Geographic magazine
named Doba its 2015 People’s Choice
Adventurer of the Year. Speaking to
National Geographic, Doba recalled
riding through nine-metre waves, dis-
persing sharks with the butt of his pad-
dle, and after an equipment failure,
spending 47 days in uncharted waters
without radio contact.
Doba is not a professional kayaker,
nor did he prepare physically for the
trip. His outlook on his adventure – and
his life – is as simple as it is inspiring:
“I am not old, I am only 67 years young!”
he told National Geographic.
In February Doba was awarded the
Order of Polonia Restituta by Polish
President Bronisław Komorowski.
“I want to congratulate, but also to thank
you for a remarkable feat that brought
fame to Poland, in the name of our
country, around the world,” he said.
by Gabriel Rom, Piotr Narel and Andrew Kureth
Bronze boys
Considered an under-
dog, Poland’s national
men's handball team
held their own at the
24th IHF Men’s
Handball World
Championship in Qa-
tar, taking third place
and the bronze med-
al in a thrilling match
against Spain.
see page 101
infocus
photos:forumgwiazd(Forum),KelleyLCox(thepolishambassador.com),KrzysztofŻuczkowski(Forum),DarekGolik(Forum)
13. 24INFOCUS
Snapshot
Poland’s Oscar
Poland’s film community rejoiced in Febru-
ary when ‘Ida’, a black-and-white production
by director Paweł Pawlikowski, won in the
category of Best Foreign Language Film at
the 87th Academy Awards in Hollywood.
The win capped a spectacular run of nomi-
nations and awards for the film, which won
‘Best Film’ honours at festivals in Bydgoszcz,
Gdynia, Gijón, Kraków, London, Minsk,
Warsaw and Wiesbaden. It also won Best
Film Not in the English Language at the 68th
BAFTA awards. A. O. Scott of the New York
Times wrote, “Mr. Pawlikowski has made one
of the finest European films (and one of most
insightful films about Europe, past and present)
in recent memory.” The film centres around a
young novice nun about to take her vows who
learns of her Jewish background. Polish films
have been nominated 10 times for Oscars, but
‘Ida’ is the first to win – perhaps surprising
considering the historic list of acclaimed direc-
tors to come out of Poland, including Agnieszka
Holland, Andrzej Wajda, Krzysztof Kieślowski
and Roman Polański. Polański’s ‘Knife in the
Water’ was the first Polish film to be nomina
ted for an Oscar, back in 1963.
Cinematic masterpiece: Critics were
especially effusive in their praise of the
cinematography of ‘Ida’, with some saying
each frame is a work of art in itself. ‘Ida’ was
also nominated for an Oscar in the cinemato
graphy category, but lost out to ‘Birdman’,
which also won Best Picture.
In his acceptance
speech, director
Paweł Pawlikowski
thanked his film crew,
saying, “You are what
I love about Poland:
resilient, courageous,
brave and funny.”
photos:LucyNicholson(Reuters)
14. 26 27
Last year, Poland basked in the glow
of 25 years of successful economic
transformation, marking an unprece-
dented turnaround from a nearly bank-
rupt, centrally planned basket-case to
the twenty-third biggest economy in
the world with more than 20 years of
uninterrupted growth. But now Poland
must look to face the challenges of
the future, and there are many. There
is a war at Poland’s doorstep, in Ukraine,
while Europe, Poland’s largest trading
partner, is mired in slow growth. The
European Union, membership of which
has been such a boon to Poland’s
economy, seems to be pulling apart,
with doubts about Greece and the UK
remaining in the bloc. Energy prices
are falling, but no one knows for how
long. There is worry of a new currency
war, as countries in Europe trip over
each other to cut interest rates and
stave off deflation.
All this as the global competition for
investment has become fiercer than
ever. As globalisation rushes inexora-
bly forward, more countries are able to
compete on labour costs, where Poland
has traditionally had an advantage.
Living standards in Poland are now
higher than ever, but higher wages have
brought with them the need for Poland
to find other competitive advantages.
The country will have to compete
on the strength of its brainpower
– something it has already begun to do.
Witness the influx of outsourcing and
business service centres that have
mushroomed throughout the country.
The BPO/BSC industry now employs
more than 200,000 in Poland, making it
the second biggest sector in the coun-
try. Foreign firms are finding the right
mix of young, motivated, well-educated
workers in Poland, now considered
one of the best locations in the world
for such investments.
Innovation is on the lips of every
government minister, so at least the
authorities recognise what they have
to concentrate on. Over the next six
years, Poland will receive some €10bn
in EU funding to spur innovation, and
none too soon. Economists agree that
Poland has squeezed all it can out of
recycling Western business models
and adopting well-worn technologies.
Poland has to transform into a value-
add economy – one that can create
global brands and intellectual property,
and not just assemble cars and furni-
ture for international firms to sell on.
Doing that will put Poland on a good
footing toward meeting its goals
of reaching the living standards of its
Western European peers and creating a
supple economy able to withstand the
various shocks that are bound to come
with the volatility in global markets.
But if not labour costs, then what does
the country have to build on? Poland
Today spoke with dozens of business-
people to find the answer. To get a view
of the future, we went to firms that are
in high-tech or knowledge-based
industries. We also went to companies
with an international profile: either for-
eign companies who have set up shop
in Poland and have made a long-term
commitment to the country, or Polish
firms whose client base consists mainly
of foreign firms. We chose them for
their unique perspective – they are in
a position to compare Poland’s busi-
ness environment to those they come
from or do business in.
Industrious and numerous
No matter the industry, one thing that
stood out among the answers of those
interviewed for this article was strong
praise for the Polish work ethic. Poles,
they said, simply tend to work harder
and are more open to change and
BuildingMomentum
Over the past 25 years Poland has built up several advantages that will
help it continue its economic development into the next quarter century
leader
Andrew Kureth
is editor of Poland
Today. Originally
from the United
States, Andrew has
been living in Poland
since 2001 and has
covered the major
political, economic,
business and social
stories in the country
for over a decade.
He has written for
numerous global
media, including
the Financial Times.
Andrew graduated
from Kenyon College
in Ohio.
development opportunities than many
of their Western European counterparts.
“The people we employ, they still
remember communism,” said Rob Helle,
owner of Objectivity Bespoke Software
Specialists, a Wrocław-based IT solu-
tions firm. “Everyone works hard to
make their lives better.” Over and over
again, the businesspeople we spoke
with said that such attitudes were far
rarer in Western Europe – some even
went so far as to call Western Europeans
“lazy” in comparison to Poles.
“Polish people are easy to work with,”
said Anders Lönn, country manager
for Poland at Descom, a Finland-based
marketing and customer-experience
company. “Poles are international
– many have worked or lived outside
of Poland, so they have a high level
of knowledge about other countries,
and their English is very good.” He
added: “Poles see working abroad as
an opportunity, but people from other
countries are much more reluctant to
leave their home country. They don’t
have the eagerness to move forward
that the Poles have.”
Not only are Poles hard-working,
but there are a lot of them – about
38 million, making Poland the sixth-
largest EU member state. The huge
labour pool is a big advantage that
Poland can build on, especially when
it comes to the business services and
outsourcing sectors, said the busi-
nesspeople Poland Today spoke with.
“Poland’s strength is its depth of talent,”
said Scott Newman, managing direc-
tor and at the Poland branch of State
Street, a US-based financial services
firm that employs over 2,200 people
in the country. “It’s got a unique pool
of well-educated graduates.”
But despite the large well of talent,
the demand for people – especially IT
engineers, software developers and
LEADER
‘Poland has created
momentum in the
business services
industry. It will be
very hard for other
countries to catch
up with that’
programmers – has pushed wages too
high, too fast, especially in the area
around Kraków. The overheating IT
labour market was an issue that several
of the businesspeople we spoke with
pointed to as something Poland would
need to address in the coming years.
Nevertheless, Poland’s ‘European-
ness’ – its location in Europe, its cultural
similarities to the countries where many
of its investors are coming from and
membership in the EU – will continue
to keep Poland attractive as an invest-
ment location for firms in knowledge-
based industries.
Making headway
The headway Poland has made so
far, especially in the BPO sector, will
serve the country well, too. Though
there are other EU countries – such as
Romania – that have a well-educated,
low-cost workforce, investors say that
Poland has already built up the infra-
structure and know-how in the industry
to keep it in the country for the long
term. “Poland has created momen-
tum in the business services indus-
try,” said Objectivity’s Helle. “It will be
very hard for other countries to catch
up with that.” Companies may move
simpler operations abroad, but the
more complex tasks are already being
developed in Poland, where proxim-
ity, cultural fit, and expertise all work
in Poland’s favour.
But while the businesspeople we
spoke with were generally very posi-
tive about the outlook for Poland, there
were some clear areas of agreement on
the challenges it faces and the issues it
could address in the short term. Most
often mentioned were the notorious
Polish bureaucracy and as-yet under-
developed infrastructure. Both obsta-
cles have been ameliorated somewhat
in recent years, especially in infrastruc-
ture. But much more could be done.
Businesses still find it too difficult to
navigate Poland’s labyrinthine tax code.
And while hundreds of kilometres of
express roads have been built in the last
few years, it still takes too long to get
between many cities, such as Wrocław
and Warsaw, by train.
Especially when it comes to increas-
ing Poland’s potential as a knowl-
edge-based economy, the issue
businesspeople mention again and
again is the need for business and aca-
demia to work together more closely
in creating marketable innovations, but
also in developing curricula to produce
graduates with the skill sets needed for
the industries that are hiring.
Martin Ring, managing director at
the Polish office of BNY Mellon, pointed
to this area as one where the govern-
ment could provide useful support.
“There is a role for government in work-
ing with businesses and the academic
world,” he said. “It needs to help form
a strategy around education, to create
a framework to ensure that employees
are better tailored to those industries
that need the labour. The environment
is constantly changing. Businesses are
at the forefront of that change, and
they are in a good position to sup-
port such an initiative. But it needs
a systematic approach.”
That Poland has the tools to over-
come these challenges, however, was
never questioned by any of the busi-
nesspeople interviewed for this arti-
cle. Stig Waagbø, CEO of Schibsted
Tech Polska, a software developer with
programming centres in Kraków and
Gdańsk, summed it up nicely: “Poland
can remain relevant as long as the
education system can keep up. There
is no reason why Poland could not be
in a good position for years to come.”
by Andrew Kureth
Work ethic: Interviewees for this report re-
peatedly contrasted Poles’ work ethic with that
of their counterparts in Western Europe, saying
Polish workers were more willing to work hard
to advance or take on new challenges. Some
went as far as to call Western Europeans “lazy”.
Poles, however, are much more likely to give
their best effort, employers said.
Better training:
While businesspeople
praise Poland for its
well-educated work-
force, many of those
we interviewed said
there could be much
more cooperation be-
tween academia and
the business world,
especially when it
came to communicat-
ing and developing
curricula that would
provide students with
the skill sets they
need to land jobs in
Poland’s evolving
economy.
illustration:Erhui1979
15. 28 29
Rob Helle,
Owner,ObjectivityBespoke
SoftwareSpecialists
EU accession was the trigger for Objectivity to
come to Poland. As a small firm, it was encour-
aging to know that we would be protected by
the EU framework. Once that became reality,
a good amount of risk disappeared. We are
moving as many of our functions as possible
to Poland. If it can be done in Poland, it will
be. Poland is the cornerstone of our opera-
tions, and it will continue to be going forward.
We like the culture – people work hard. And
there are some specific advantages: there is
little or no time difference with our client base,
there are excellent flight connections and the
English-language skill level has risen dramati-
cally. Poland has a good education system, and
the people have a good attitude. The only chal-
lenge is recruitment – Poland is a hotbed for IT
services at the moment. But that doesn’t mean
we are about to leave. We have been growing
at a pace of 40-50% in Poland for the last five
years, and we don’t see that coming to an end.
Anders Lönn,
CountryManager,Descom
We have had a very good experience working
with Polish people. Services, specifically IT
services, is definitely the future of business
in Poland. Already the country’s IT services
are on a very high level, even by European
standards. The development since 1989 has
been marvellous, but there is still a long way to
go before Poland reaches a Western European
standard of living. Highly educated Poles are
able to move ahead, to reach a higher living
standard. For them, salaries are at a fairly good
international level. Poland needs to move away
from the Special Economic Zone model and
begin creating clusters – small firms grouped
together and all working with universities. Uni-
versities still aren’t particularly supportive of
such initiatives. In general, Polish universities
need to move from teaching theory to teaching
practice. Poland needs some strategic thinking
in this area, but it is easy to draw on other
countries’ experiences.
Mike McDonald,
ManagingDirector,
BrownBrothersHarriman
We are very pleased with our decision to invest
in Kraków, and it is one we have committed to
for the long term. We have hired over 700 peo-
ple here in the past three years and expect that
number will rise to over 1,000 eventually.
Poland’s financial services sector continues to
grow, evolving in terms of both discipline and
complexity, and we feel it presents great op-
portunity for the future growth of our business.
The calibre of the workforce is a big draw for
companies investing in Kraków, and was a criti-
cal factor in our decision to establish a centre
in the city. We continue to be impressed by the
number of graduates and the highly skilled
workforce, which will no doubt play a big part
in Kraków’s ongoing development as a financial
services centre.
LEADER
‘High-tech innovation is
happening in Poland, but we
need to be patient. You can’t
learn everything in two
or three years’
Poland Today interviewed dozens of business
leaders, asking them what they saw as the advantages
the country can use to build its future economy and the
challenges they expected it would have to face. Because
we wanted the views of those who could either talk about
high-tech industries or compare Poland with other markets,
we spoke with foreigners leading international or technol-
ogy-related firms, as well as Poles heading up branches of
international companies or Polish companies with a strong
technology or international profile.
We asked those in Poland’s booming business services
industry if the country was in danger of losing such invest-
ments, since companies can easily move outsourcing centres
to other countries. But professionals in the sector were san-
guine. Poland has now built up the experience to allow it to
move up the business services value chain, they said, adding
that the country would still have plenty of labour to supply
the industry for decades to come.
Technology professionals, on the other hand, said that
while wages for IT engineers were overheating somewhat,
the quality of their work was still worth the cost. Poland’s uni-
versities just need to crank out more of them, they said, and
with more industry-specific knowledge. They almost always
expressed openness to work with universities to help them
design courses of study that would prepare students to fill
the gaps in the labour market.
Buildingmomentum
Over the past 25 years Poland has built up several advantages
that will help it continue its economic development into
the next quarter century
Jakub Lipiński, CEO,Polidea
Am I optimistic? Yes, absolutely. There are
some really interesting things going on in
technology here. For example, Poland is really
ahead in mobile banking compared to the rest
of Europe. Also, some big players in e-com-
merce, like Ebay or Amazon, somehow didn’t
manage to dominate here. We have home-
grown brands that are holding their own. High-
tech innovation is happening in Poland, but we
need to be patient. You can’t learn everything in
two or three years. The entrepreneurship en-
vironment is still in its early stages. But access
to capital is not a problem. What we need is
success stories – stories of Poles who sold tech
firms for millions of dollars. These stories will
inspire others to start their own businesses.
For the future, our companies have to work on
being flexible, agile. You can’t really predict
what will happen, so you need to create a lean
organisation with little hierarchy. Hire good
people who can change, and then find opportu-
nity in the change. “Hack the change” as we say.
Paweł Patroński,
BranchDirector,
ImaginationTechnologies
Poland has a healthy supply of good engineers –
types that are hard to find in the UK. Proximity
is another advantage. It’s two hours from the
UK by plane, and you can bring equipment
without having to go through customs. Also,
the cultural fit is good. Cooperation is easy.
Still, competition for engineers is fierce, and
there are still not enough of them coming out
of universities. The question is whether they
can increase quantity while retaining quality.
Could Poland become an innovation hub?
I believe so. We won’t have any problems
producing innovations. Poland’s problem is
how to break into global markets. How to go
to Apple or Intel to sell them the products, not
the whole company. Those big firms sometimes
just prefer to acquire entire firms to get hold
of their product. But big sales are all about
personal connections. You need to know the
right people at the right levels. Poles are only
now making the right connections.
Radomir Grucza,
Founder&VicePresident,
RECGlobal
I think that one of Poland’s biggest advantages
is its open-minded people. Poles also have the
language skills companies need and there are
close cultural links with the rest of Europe. But
the cost advantage will vanish over time, so it’s
about creating skill sets and building speciali-
ties. Taxation in Poland isn’t too bad – but it
would be good if the system were simplified.
Joanna Bensz,
CountryManager,
CH2MHILLPoland
CH2M HILL has been present in Poland for
nearly two decades now, growing our local
competencies and bringing new business
groups to grow their business here. We cur-
rently employ over 340 people in Kraków and
Warsaw, mainly engineers. Polish engineers
and designers are highly valued by our inter-
national colleagues, with whom we do a lot of
work-sharing on international design projects.
They are increasingly engaged by global
companies like ours in flagship international
infrastructure and high end industrial projects.
They also help our international divisions
meet their commercial objectives by deliver-
ing some of the design in a lower cost location
like Poland at the same or sometimes higher
quality standards. Our engineers are embedded
in international project delivery teams working
in real time on the same 3D models on projects
in the most remote locations in the world. We
continue to invest in our team as we see mul-
titude of opportunities for Poland to grow and
benefit from our experience.
Stig Waagbø,
CEO,SchibstedTechPolska
Poland’s first advantage is that it has a lot of
people. It’s much bigger compared to the Nor-
dics, so there are lots of people to select from.
Secondly, its educational system in terms of IT
is relatively good. The competencies are there.
Thirdly, the cost level is attractive. In our busi-
ness, we need people fast. To recruit in Norway,
for example, would take a lot more time that it
does here. But certainly the cost advantage is
wearing away. Kraków is overheated already.
It will be interesting to see if that will spread.
That is a big risk for Poland. With all of the
competition, though, all of the foreign compa-
nies coming in, there is a positive side as well,
since it could help stem the brain drain. The
education system could churn out even more
developers. Polish academia is good at foster-
ing maths and science skills. The government
should point to IT as a strategic area.
Mikael Lemstrom,
President,FortumPower
andHeatPolska
We have been working in Poland since 1994,
and we have had a permanent presence here
since 2003. We are very positive about Poland.
Its economy continues to show strong growth,
a big positive when compared to other Euro-
pean countries. We felt it was a natural choice.
In terms of the energy market, there is a lot
of electrical and heat capacity built in the
1960s and 1970s that needs to be replaced.
And there will be a lot of opportunities for
renewables – coal will survive here longer that
it will elsewhere. However, Poland may need
to change the way it is used, that is, to go for
more efficient and environmentally friendly
technologies such as combined heat and power
production to meet its EU targets. In terms
of the general business environment, there
is still too much unnecessary bureaucracy,
which could well be reduced.
Ilkka-Cristian Niemi,
BusinessDevelopment
Manager,Barona
We chose Poland because of the cost and the
ability to service our Nordic and German cli-
ents from here. The economic situation in the
Nordics is not that good. In Poland, the
cost of living is lower, meaning we can bring
Nordic employees here and with a slightly
smaller salary than they would receive in their
home countries, they can afford a better living
standard. The outsourcing sector is growing,
but Nordic firms still find manufacturing and
production investments an attractive prospect
in Poland, and that could remain the case for
10 more years. But the market is not easy, espe-
cially when it comes to finding IT developers.
Salaries will continue to rise, and there are still
some challenges on the bureaucracy side.
Martin Ring,
ManagingDirector,
BNYMellon
We now have 500 people in Wrocław. We were
certain Poland was the best choice, and that’s
been confirmed by other companies deciding
to invest here. Poles are very hard-working
people. They show commitment and dedica-
tion. It has been a very positive experience.
For the future, Poland needs to continue to
concentrate on education, and investment in it.
Business services is a rapidly growing market,
and there will be demand for people who
can fill high-skill roles. Poland needs to keep
investing in the development of technical skills,
but also personal development, management
development and leadership development.
Scott Newman,
ManagingDirector&
SeniorVicePresident,
StateStreetBankPoland
It’s clear we’re happy with our investment in
Poland. Our original goal was to hire around
500 employees. Now, we have 2,200. The qual-
ity of the workforce is second to none. They are
keen to find solutions and advance. They are
ambitious to develop their careers. Other ad-
vantages we see here are the sizable talent pool
and the time zone. Then, of course, there is the
economic and political stability. Among the
challenges, I would point to bureaucracy, and
a cumbersome tax system. There is more and
more recognition around the world of Poland
as a great place to be. But Poland needs to be
more aware of past lessons learnt, especially
when it comes to overheating wages. There are
other countries in the region that are strong
and will be competitive.
Size advantage:
While Poland faces
some daunting demo-
graphic challenges, it
will continue to have
far more people than
any other EU country
in the region for
some time to come.
Business leaders
said the deep labour
pool gives Poland a
distinct advantage.
LEADER
illustration:Erhui1979
16. 30 31
When Prime Minister Ewa Kopacz gave her maiden
speech to the Polish parliament in early October, one of the
long list of promises she made was to gifted university stu-
dents: they will be able to get government help to pay tuition
at foreign schools. “That is fantastic if a young person from
Poland gets the possibility of studying abroad,” Kopacz said.
While the programme is a boon to students contemplating
attending much more expensive foreign universities, it is also
a recognition that Poland’s own universities often fall short.
Poland’s two best universities, the Jagiellonian University
in Krakow and the University of Warsaw in the capital, lan-
guish far down the table of the world’s
top institutions of higher learning
as compiled by Shanghai Jiao Tong
University, the most-used ranking.
Both fall into the ranking’s fourth cen-
tile, and they are the best Poland has
to offer. It’s a similar story with busi-
ness schools. In rankings of the 70 best
MBA programmes compiled by the
Financial Times, Poland’s private
Kozminski University came in 35th,
while the state-run Warsaw School
of Economics came 68th. “We have
closed the gap in management edu-
cation and we’re now no worse than
France or Germany in this regard,”
said Andrzej Koźmiński, the school’s
founder, who named it after his father,
a business professor.
Although his own school has done
relatively well, Koźmiński concedes
that Polish higher education has to pay
a lot more attention to quality than to
simply churning out large numbers of
graduates. “We are still fairly provincial
– we still aren’t able to attract interna-
tional students and international faculty,”
he said from his office in the univer-
sity’s main campus, a long line of low
buildings located in a post-indus-
trial area on the scrappy east side
of the Vistula River.
Caught short
Poland’s universities are going to
have to follow in Kozminski University’s
footsteps if they want to keep local tal-
ent at home and begin to attract a larger number of foreign
students. During communist times, universities were meant
only for the elite. Most jobs did not require a degree, and
only about a fifth of school finishers went on to post-sec-
ondary education. All of that changed after 1989. The return
of a market economy meant that the old communist model
favouring big factories, heavy industries and ideologically
correct workers was quickly overturned by capitalism.
The flood of foreign investors setting up shops and factories
in Poland, as well as fast-growing local businesses,
needed well-educated people.
Tomasz Czechowicz, the founder of MCI, one of Central
Europe’s leading venture capital funds, remembers head-
ing off to special business education classes to learn how
to manage his first company, a computer business he founded
in the early 1990s. “There was a case study about a Polish
computer company, and the instructor didn’t realise that
I was sitting in on the class,” he said with a laugh.
While businessmen like Czechowicz were brushing up on
their education, millions of other Poles were also caught short
– suddenly a degree was vital in order to succeed in the new
economy. Hundreds of private universities sprang up to fill
the gap. Some, like Koźmiński’s school,
tried to provide a decent education.
Others became little more than degree
mills, minting thousands of graduates
in useless subjects like marketing and
journalism, often taught by overworked
professors lecturing at two or three
different schools. The worst of those
schools are now in trouble. The wave
of older people who need degrees has
receded, while student numbers overall
are falling thanks to Poland’s very low
birth rate. In 2010, Poland had 1.8 mil-
lion students. Only four years later, that
number has fallen to 1.5 million.
Fundamental change
Lena Kolarska-Bobińska, the higher
education minister, expects there will
be a consolidation among the coun-
try’s more than 430 universities. “Some
of them will start to fail,” she said in an
interview with the Gazeta Wyborcza
newspaper. “Others, adapting to the
new conditions, will have to fundamen-
tally change.” Kolarska-Bobińska is hur-
rying along the revolution. She plans
to change the way higher education
is financed. Until now, schools got gov-
ernment money based on the previ-
ous year’s allocations – which meant
that financing was stable but did noth-
ing to promote innovation. Now, bet-
ter schools will get more money, which
is supposed to encourage universities
towards excellence. “The best will get
the most,” she said.
She also plans to boost spending on research and devel-
opment. Poland now spends only 0.9% of its GDP on research,
far below the EU average of 2% and only a fraction of the
spending by the continent’s most advanced economies.
“We spend a huge amount on social services but R&D is very
low and spending on universities is in a dramatic situation,”
said Mirosław Gronicki, a former finance minister.
Poland’s universities have also proved to be reluctant
to forge closer ties with business. While American professors
in subjects like IT and engineering are quick to turn innova-
tions into businesses, Polish schools are much more conserv-
Thelearningcurve
Poland’s universities will have to make some difficult
but essential changes for the country’s economy to move forward
Each year almost 0.5 million
young people begin their education
at universities and colleges.
53% of tertiary education students
graduated, compared with an OECD average
of 39%. This is the second highest result
within the OECD (as of 2012).
leader
Jan Cienski is
Poland correspond-
ent for The Econo-
mist and editor of the
Central European
Financial Observer.
He is also author
of ‘From Comrades
to Capitalists: How
Poland’s Entrepre-
neurs Built Europe’s
Most Competitive
Economy’. He also
writes for Business
New Europe. Until
May 2014, he was
the Warsaw bureau
chief of the Financial
Times. He has a de-
gree in international
relations from the
University of Toronto.
90% of
Polish adults
have finished high
school, compared
with an OECD
average of 75%
illustration:Erhui1979
That system was scrapped in 1999. Instead of deciding
on a child’s future at an early age, Poland brought in a six-year
primary system followed by three years of middle school,
called gimnazjum. Streaming only happens after gimnazjum
and many more children go on to demanding three-year high
schools called a liceum to prepare for university admission.
The government has also been struggling to lower the school
starting age to six. Foreign language instruction, principally
English, is now taught throughout the country and from the
beginning of school. Finally, salaries for teachers have been
rising steadily since 2007, turning it into an attractive profes-
sion that is able to lure talented educa-
tors. Bonuses are also paid to schools
that perform well.
The new programme has proved
to be an enormous success. The OECD
club of wealthy nations runs a trien-
nial school testing programme called
PISA, ranking 65 countries and juris-
dictions in reading and mathemat-
ics. The first time Polish students
sat for the tests in 2000 they came
in well below the OECD average, scor-
ing 470 points overall. In every subse-
quent test the Polish children improved.
By 2012, the Polish 15-year-olds scored
518 points, 13th overall and in the top
ranks of European pupils. Polish teens
came in 14th overall in mathematics,
10th in reading and interpreting and
ninth in science. In Europe, Polish chil-
dren were behind only Liechtenstein,
Switzerland, the Netherlands, Estonia
and Finland. “We have reason to be
proud and satisfied,” former prime
minister Donald Tusk said when
the results were announced in late 2013.
“Our youth is the most accomplished
in the world. My generation could
only dream of that.”
Prime Minister Kopacz and Higher
Education Minister Kolarska-Bobińska
are going to have to push through the
same kinds of financial incentives that
worked so well in schools into univer-
sities. There is already strong resist-
ance from faculties worried about
losing crucial government funding, and
professors upset over the possibility of merit pay. But the
task of improving universities is a crucial one. Poland has
had one of the best growth records in Europe over the last
quarter century as it took with gusto to capitalism. But easy
sources of growth are starting to run out; Poland is going to
have to shift from being a copycat economy to one based
on innovation. And in such an economy, schools and uni-
versities play a crucial role. “Over the next 20 years we will
have to learn, learn learn,” said Tomasz Glowacki, a principal
at Riverside, a private equity fund. “Our children will have
to be inventive.” by Jan Cienski
ative. The way to get ahead in Polish
faculties is to publish, often in obscure
journals unread outside of the coun-
try. Trying to spin off a business only
causes problems.
University authorities worry that
start-ups could give them heartburn.
Polish tax rules demand that they place
an estimated value on the spin-off.
But if the business turns out to be much
more successful than anticipated, the
rector can expect a visit for the anti-
corruption police querying why the
initial valuation was incorrect.
“Unfortunately, Poland has no infor-
mation flow between education and
business,” said Marcin Hejka of Intel
Capital, the venture capital arm of the
US tech giant. “Polish education is not
geared towards commercialisation.
US universities are encrusted with start-
ups, I don’t see that in Poland.”
While higher education as a whole
tends to be lacklustre, there are areas
of excellence. Poland stands out in
mathematics, building on a tradition
that dates back to well before the war.
It was Polish mathematicians who
helped break German Enigma cipher
machines, giving the allies a crucial
edge in the war. Today Poles, along with
other Central and Eastern Europeans,
dominate contests like TopCoder, a pro-
gramming competition.
Grammar-school lesson
While Polish universities face an enormous challenge in rising
higher in international rankings, they can take solace from
the fact that another part of the Polish education system
has already managed the same feat. Polish schools were
stolid during communism. The country had one of the latest
starting ages in Europe, with formal schooling only begin-
ning at age 7. By 15, students were already being streamed.
A small academically promising minority was geared for uni-
versity. The least accomplished were sent to two-year voca-
tional schools, often tied to specific industries, while middling
pupils went on to technical high schools.
There are 518
institutions of
tertiary education in
Poland. The highest
rated among them
are the Univeristy
of Warsaw and
the Jagiellonian
University
in Kraków.
Ranking
of 70 best MBA
programmes
in Europe:
– Kozminski
University: 35th
– Warsaw School
of Economics: 68th
In 2011, public
expenditure on
education amounted
to $25.69bn, which
was equal to 4.9%
of GDP and 11.4%
of total public
expenditure.
By 2011, public
spending on
educational services
was worth $6,420
per student (from
primary to tertiary
education).
leader
HISTORY LESSON
After years of neglect under communism,
the Polish educational system was transformed
in the late 1990s. A new government strategy
focused on raising secondary and higher educa-
tion qualifications, ensuring equal educational
opportunities and improving the general qual-
ity of education. According to a recent OECD
report, Poland is now one of Europe’s leaders
in school performance.
The number of Poles in higher education is
growing. Over half of 19- to 24-year-olds attend
colleges and universities, while 39% of those
aged 25-34 hold a university-level degree.
Poland’s academic traditions go back to 1364,
when King Casimir the Great established the
Jagiellonian University in Kraków, the second
in Central Europe, after Charles University in
Prague. In 1773 Poland established what is now
considered the first-ever ministry of education,
when the Commission of National Education
(Komisja Edukacji Narodowej) was created.
‘Our youth is the most
accomplished in the world.
My generation could only
dream of that’
17. 32
In 2014, to celebrate 25 years
of economic transformation, Poland
Today brought 50 leading journalists
from major titles around the world
to Poland, to tell them the story of the
country’s success. In 2015 we will con-
tinue this mission through our ‘Trans-
forming the Future’ event. This business
initiative will involve the most success-
ful and influential companies operating
in Poland, companies which will influ-
ence the country’s economic future
and its global image. Once again,
Poland Today will bring leading
journalists from around the world to
Poland for the event.
The initiative is composed of two
events which take place on the
same day: the Transforming the
Future Forum and the Poland Today
Business Awards.
Transforming the Future Forum
The Forum will bring together Polish
and international business leaders from
the most successful and fastest-grow-
ing companies in Poland to share their
insights and experience, and to forecast
what lies ahead for the Polish market. It
will consist of plenary sessions, opened
by a major keynote speaker, and break-
out sessions, where the future of busi-
ness in the economy’s major sectors will
be discussed in greater detail.
The sectors that the forum will focus
on are: Automotive Locomotive,
Energy Utilities, Financial Services,
Healthcare Pharmaceuticals, Indus-
trial Machinery Equipment, Raw
Basic Materials, Real Estate Develop-
ment, Transport Logistics and Tech-
nology Telecommunications
The breakout sessions will be led by
experts in these sectors, and will include
senior representatives of the compa-
nies nominated for the Poland Today
business awards. The emphasis will be
on informal discussion as opposed to
structured panels or presentations. The
sessions will be in English, thereby mak-
ing them accessible to the international
market. Leading foreign journalists rep-
resenting major international publica-
tions and influential sector press titles
will take part in the discussions.
Poland Today Business Awards
The Poland Today Business Awards
will recognize and celebrate the suc-
cess of the companies on whom the
future Polish economy is already being
built: the companies that have trans-
formed the Polish market so far. The
award categories are the nine sectors
that will be analysed during the Forum,
as well as one extra category: Brand
Polska. The award in the Brand Polska
category will go to the firm that has
most contributed to a positive image
of Poland abroad.
The winners of each category will be
chosen by separate sector juries which
will be made up of industry experts
and professionals, as well as renowned
economists, thought leaders and
business people.
Confirmed jury members include:
Poland correspondent for The
Economist Jan Cienski, Financial Times
Central Europe correspondent Henry
Foy, renowned economist Professor
Witold Orłowski, renowned economist
Ryszard Petru, and former Treasury
Minister Jacek Socha.
The winners will be announced at the
awards ceremony following the Forum
and published in all Poland Today’s
media platforms: Poland Today maga-
zine, website and newsletters.
Transforming the Future provides an
unrivalled opportunity to reach high
level Polish international business
leaders and opinion formers from your
sector and others.
TransformingtheFuture
What are the drivers that will change Poland’s business landscape
and global position in the next 10 years?
LEADER
Poland Today Business
Awards Categories
– Automotive Locomotive
– Energy Utilities
– Financial Services
– Healthcare Pharmaceuticals
– Industrial Machinery Equipment
– Raw Basic Materials
– Real Estate Development
– Technology Telecommunications
– Transport Logistics
– Brand Polska
Brand Polska
Poland Today believes that part of its mis-
sion of ‘bringing Poland to the world and the
world to Poland’ is to tell the story of Poland’s
triumphs and successes. But we are not alone.
Polish companies operating abroad act as am-
bassadors for Poland’s image around the world.
Through our ‘Brand Polska’ category, we want
to celebrate Polish enterprises that have shone
positive light on Poland through their business
success, social engagement or uplifting story.
Leading foreign
journalists will
take part in the
discussions.
Transforming the Future11 June 2015, Hotel Sofitel Warsaw Victoria
BringingtogetherPolish andinternationalbusinessleaders
from themostsuccessful andfastest-growingcompaniesinPoland
to sharetheirinsightsandexperienceandtoforecast
whatliesaheadforthePolishmarket
www.poland-today.pl
CONFERENCE AWARdS
iNtERNAtiONAl pRESS tOuR
18. 34 35
FIRST TO REFORM
The Balcerowicz Plan, named after former
Finance Minister Leszek Balcerowicz, was
the first ever attempt to switch an economy
from a communist system to a free market.
Success was by no means guaranteed. Although
the immediate social costs were huge, today
Poland has emerged as the most successful
of the European post-communist economies.
As Ukraine grapples with war,
Leszek Balcerowicz, the father of
Poland’s post-communist economic
reforms, has been summoned to help
Kiev reform its economy. The 68-year-
old economist, who has served as dep-
uty prime minister, finance minister and
head of the National Bank of Poland,
visited Ukraine at the end of January,
where he met with top politicians includ-
ing President Petro Poroshenko. Apart
from his economic advice, Balcerowicz
has been speaking out about the con-
flict in Ukraine – and what he views as
the inadequate Western response.
The current coalition government
headed by Arseniy Yatsenyuk was
elected in October 2014 on a pro-West-
ern, pro-reform platform. But with the
conflict in the Donbas region showing
little sign of ending, despite a second
ceasefire agreement signed in Minsk
in February, the country’s economic
prospectsremainbleak.GDPcontracted
by 7.5% in 2014 and is set to decline by 5% this year,
according to the latest forecast by the European Bank
of Reconstruction and Development.
War has a double impact on reform, Poroshenko said in
a February speech to Ukraine’s National Council of Reforms,
the body set up last summer to coordinate the reform pro-
cess. On the one hand, it slows down reform, stealing away
time, energy and money. On the other hand, the war requires
quick and decisive changes in order to strengthen the
Ukrainian state against its aggressors – not only on the front
lines. “I think that Poland’s experience and Mr Balcerowicz
joining our team will be very beneficial to us,” he added.
Quick, decisive action
Balcerowicz, who is chairman and founder of the Warsaw-
based Civil Development Forum foundation, visited Kiev
in late January. (A Polish delegation led by Prime Minister
Ewa Kopacz visited Kiev earlier that month, also discuss-
ing reforms.) He returned pleased with the team he had
met there. “I am impressed by the members of Ukraine’s
leadership I spoke to,” he wrote on Twitter in late
January. “The best people I’ve had the opportunity to meet
in Ukrainian politics since 1991.”
“Ukraine has already made the transi-
tion from socialism to political capital-
ism, but the latter is not much better
than the previous order, where eve-
rything was completely controlled
by politicians and built on informal
ties,” he told the Ukrainian govern-
ment’s news service in an interview.
Like in Poland, the economy ought to
be beyond politics, he added.
Ukraine needs to act “quickly, deci-
sively and completely,” Balcerowicz told
Polish television channel TVN24 Biznes
i Świat upon his return to Warsaw.
Priorities include stabilising Ukraine’s
budget, which struggles under a huge
deficit, and deregulation since, in his
view, excessive regulations foster the
use of bribes. Other tasks include priva-
tising state-owned companies, break-
ing up monopolies, reforming Ukraine’s
national gas company Naftogaz and
raising the retirement age, he said.
Although Balcerowicz is associated
with Poland’s ‘shock therapy’ reforms of the early 1990s, he
dislikes the term and claims he never used it himself. Reforms
involve healing problems, he told BBC Ukrainian. Experience
– not just in medicine – shows that serious problems should
be treated quickly, before they get worse, he said, drawing
parallels with the economic situation in Ukraine.
Still, Kiev’s situation is better now than Warsaw’s was
in 1989, Balcerowicz has said. The Ukrainian government
can draw on the experience, and learn from the mistakes
of Poland and other former communist countries that are
now members of the EU. At the same time, Kiev should show
that it is not only capable of asking for money from abroad,
but carrying out radical reforms, he added. “Show [them]
that you’re not Greece!” he said.
Foreign influence
Balcerowicz is not the first foreigner Kiev has called on
in its quest to reform. Natalie Jaresko, a Harvard-educated
American from Chicago, was appointed finance minister
in late 2014. The minister of the economy is Lithuanian-
born Aivaras Abromavicius, while the health portfolio
went to Alexander Kvitashvili, a Georgian. And in February,
Poroshenko appointed Mikheil Saakashvili, the president of
Kievcalls
onBalcerowicz
Ukraine’s nascent government has asked Poland’s most famous
economic reformer for advice and advocacy
INTERNATIONAL
Ukraine’s GDP
per capita:
PPP, current prices:
1990: $6,806
2013: $8,788
+29% change
nominal,
current prices:
1990: $1,570
2013: $3,900
+148% change
Poland’s GDP
per capita:
PPP, current prices:
1990: $5,976
2013: $23,275
+289% change
nominal,
current prices:
1990: $1,694
2013: $13,432
+692% change
Annabelle Chap-
man is a Warsaw-
based journalist. Her
articles from Poland
and Ukraine have
featured in The Eco
nomist, Foreign
Policy, Newsweek
and Foreign Affairs,
among others. In
Warsaw, she is also
English-language
editor at Polityka
Insight, a think-tank.
She has a degree in
Politics, Philosophy
and Economics and
a masters in Russian
and East European
Studies, both from
Oxford University.
Georgia from 2004 to 2013, head of a newly created Advisory
International Council of Reforms, which aims to involve
foreign experts in the reform of the Ukrainian legislation.
“We are confident that it is Mikheil who will establish a bilat-
eral communication between Ukraine and the world on the
issue of reforms,” Poroshenko commented, according to
a statement on his official website.
No Poles have been hired so far, though there was pre-
viously speculation in the Ukrainian media that Aleksander
Kwaśniewski, Poland’s president from 1995 to 2005, would
somehow be involved. Balcerowicz will not be taking
a government post either. The Polish economist is “ready
to offer advice, examine various ideas or projects, provide
comments,” announced Dmytro Shymkiv, deputy head
of Ukraine’s presidential administration, but declined to
take accept an official post.
“A minister is a political post; I would not make foreigners
ministers,” Balcerowicz told the same Ukrainian government
news service, adding that he would be coming to Kiev twice
a year to advise the government.
Critical of the West’s response
Meanwhile, Balcerowicz’s interest in the situation in Ukraine
is not limited to the economy. He has joined in the ongoing
debate about whether the West should arm Ukraine, draw-
ing parallels with the Soviet invasion of Afghanistan in 1978.
“The West gave military support to Afghans when they were
fighting against Soviets. What about Ukraine fighting against
Putin? Double standards?” he tweeted in English (unusually)
on the first day of his visit to Kiev.
He has also voiced his opinion on the West’s involvement
in the recent peace talks with Ukraine and Russia, accusing
Germany and France of “monopolising” them. The role Berlin
and Paris shows “what an exaggeration it is calling the head
of the European Council the president of Europe,” he tweeted,
referring to Donald Tusk, Poland’s former prime minister, who
started his new job in Brussels in December 2014.
Balcerowicz has taken a sceptical view of the emphasis
the EU and US have put on finding a diplomatic solution.
“The more Western countries speak of diplomatic solutions
in Ukraine, the more Putin uses the military solution,” he
warned ahead of the talks.
Balcerowicz’s message is that, in addition to pressing
economic reforms, the government in Kiev needs broader
Western support. As he said in the interview with TVN24
Biznes i Świat interview: “Ukraine should not be left all alone,
as it is now.” by Annabelle Chapman
INTERNATIONAL
‘The West gave
military support
to Afghans when
they were fighting
against Soviets.
What about
Ukraine fighting
against Putin?’
Leszek
Balcerowicz
is considered one
of Poland’s greatest
economic minds.
The architect of
Poland’s post-com-
munist economic
reforms, he has
pledged to come
to Kiev twice
a year to advise
on reform efforts.
photos:RafałSiderski(Forum)
19. 36 37CANADA
IN FOCUS
Innovation in
their nature:
Canada is as innova-
tive as it is beautiful,
and now it wants to
share its experience
with Poland. Business
ties are strengthening
too: trade has incre
ased rapidly between
these two close NATO
allies. Now the hope
is that a new Canada-
EU trade agreement
will bring much more
business activity
and investment
Economic and
business ties
page 38
Ambassador
interview
page 42
Innovation:
the Canadian
example
page 44
Polish investor
interview:
PKN Orlen
page 46
Polish video game
maker in Canada
page 48
Canadainfocus
20. 38 39
From 2003-2013, Canada’s exports
to Poland grew at an average annual
rate of nearly 10%, almost double
Canada’s export growth rate to the
EU as a whole. Long a reliable part-
ner in diplomatic and military affairs,
and historically a source of emigra-
tion to Canada, Poland has matured
into an attractive source of investment
for Canadian firms, and continues
to send capital the other way.
Fuel to grow
Poland’s energy sector has dominated
headlines of late with respect to for-
eign investment – for better and worse.
Early this year, the American oil giant
Chevron became the latest in a string
of major energy companies to pull
out of shale-gas exploration in Poland.
But the collapse, for now, of efforts to
turn Poland into a significant producer
of natural gas might further open up
doors for a Canadian energy supply.
An LNG import terminal currently
under construction in Świnoujście has
been in the works since 2006, with
the hopes of diversifying the coun-
try’s energy supply, which is domi-
nated by Russian oil and gas. As the
fourth-largest producer of natural gas
in the world, Canada will eventually be
a serious candidate to supply the ter-
minal, which is expected to feed into
a new LNG corridor across Poland,
Slovakia, and Croatia.
The Montreal-based SNC-Lavalin
had an early role in the building of the
Świnoujście terminal, and has long had
a presence in Poland. The engineering
and construction firm opened a Warsaw
office in 2004, and started up Poland’s
first supercritical coal-fired unit in 2008,
the 460 MW Pątnów II near Kielce.
As Poland continues to look for
sources of energy more financially (and
environmentally) sustainable than its
native coal industry, SNC-Lavalin might
yet find another way into the market.
In 2011, the company established the
subsidiary Candu, a Toronto-based
producer and supplier of nuclear reac-
tors, which recently reached a deal to
build reactors in Romania.
Candu is not currently among
the top contenders to win the con-
tract for Poland’s first nuclear reactor,
a PGE project expected to go online
by 2024, but could use its parent
company’s presence in the country to
become a player as the sector matures.
Another forward-looking company, the
Saskatchewan-based electric utility
SaskPower, is building the world’s first
coal-fired power station with an inte-
grated carbon capture system.
Resource rich
On the Polish side of the ledger, some of
country’s largest players have already
taken big steps across the Atlantic. PKN
Orlen, Poland’s biggest company, has
acquired two Calgary-based oil firms
in the last two years: TriOil Resources
in 2013, and Birchill Exploration in
2014. Recently, however, plummet-
ing oil prices have not been kind to
these investments, and in January
Orlen announced that it took a roughly
CAD 110m write-down on its Canadian
assets (see interview, page 46).
KGHM, one of the largest min-
ing firms in the world and another of
Poland’s biggest companies, acquired
the Vancouver-based Quadra FNX
Mining for over $3bn in 2012. The deal
was then the biggest-ever foreign
investment made by a Polish com-
pany. It brought several major mines
under KGHM control, including the
Sierra Gorda mine in northern Chile,
one of the largest copper deposits
in the world. Expected to begin pro-
duction at Sierra Gorda this year, KGHM
Northstar
As Canada begins a new era of trade relations with the European Union,
Poland is an unusual bright spot on the continent
International is currently in nego-
tiations with Chilean miners unions
to avoid a potential strike.
High fliers
For decades, south-eastern Poland has
been growing into a regional aerospace
powerhouse. Over a hundred sector-
related companies are clustered around
Rzeszów. The region, known as Aviation
Valley, accounts for 90% of Poland’s aer-
ospace industry production. One leader
is Pratt Whitney Kalisz (PWK), owned
wholly by Pratt Whitney Canada.
A major manufacturer of parts for air-
craft engines, PWK employs about
1,500 in Poland and exports nearly all of
its products to Pratt Whitney Canada.
Bombardier, another Canadian
aerospace giant, has not fared as well
recently. In 2012 the firm signed a con-
tract with Eurolot, a regional carrier for-
merly owned by LOT Polish Airlines, for
an initial round of eight aircraft and an
option for another 12. Last month, how-
ever, Eurolot announced it was wind-
ing up its business after years financial
trouble. For the most part, Bombardier
has focused its Polish operations closer
to the ground, becoming the largest
railway investor in Poland and operat-
ing in Kraków, Gdańsk, Łódź, and the
Mazowieckie voivodship. This January,
Bombardier was fined 4.2m złoty by
an antitrust watchdog for intentionally
CANADA
INFOCUS
TOP 10 CANADIAN
EXPORTS TO POLAND
1. Nuclear reactors, boilers,
machinery; parts (34.02%)
2. Electric machinery; sound equipment;
TV equipment; parts (7.52%)
3. Ores, slag and ash (6.43%)
4. Furskins and artificial fur;
manufactures thereof (5.61%)
5. Optic, photo, medical
or surgical instruments (4.25%)
6. Plastics and articles thereof (2.78%)
7. Mineral fuel, oil; bitumin subst;
mineral wax (2.68%)
8. Vehicles, except railway or tramway,
and parts (2.16%)
9. Essential oils; perfumery,
cosmetic preps (1.79%)
10. Articles of iron or steel (1.7%)
% of total Canadian exports to Poland
Source: Statistics Canada
TOP 10 POLISH EXPORTS
TO CANADA
1. Nuclear reactors, boilers,
machinery; parts (32.81%)
2. Furskins and artificial fur;
manufactures thereof (25.59%)
3. Furniture; bedding; lamps etc. (8.32%)
4. Electric machinery; sound equipment;
TV equipment; parts (7.86%)
5. Pharmaceutical products (3.67%)
6. Aircraft, spacecraft,
and parts thereof (3.22%)
7. Articles of iron or steel (2.05%)
8. Soaps; waxes, polish; candles;
dental preps (1.41%)
9. Vehicles, except railway
or tramway, and parts (1.33%)
10. Beverages, spirits and vinegar (1.24%)
% of total Polish exports to Canada
Source: Statistics Canada
Canadainfocus
The McCreedy
West mine in Ontario,
Canada (left) was pur-
chased by KGHM
International from
Vale in 2002.The mine
extracts ore contain-
ing copper, nickel and
precious metals.
CANADA
IN FOCUS
Montreal-based
SNC-Lavalin
opened Poland’s first
supercritical coal-
fired unit in 2008,
the 460 MW Pątnów
II near Kielce (above).
‘What’s
really important
is providing an
avenue for SMEs
to do business’
photos:wikipedia,KGHMInternational
our,” said Roman Iwański, a Polish-
Canadian lawyer at the firm JSLegal
who specialises in CETA.
CETA could also prove a boon
for Polish companies with eyes on
the American market, by making it
easier for those businesses to set up
a Canadian enterprise. Taking advan-
tage of NAFTA, the free trade agree-
ment between Canada, the United
States and Mexico, these firms could
then use their Canadian business
as a launching pad into the US.
By showing proof of concept for
a transatlantic trade agreement, the
success of CETA could further nudge
the US and the EU forward in free trade
negotiations of their own. The two are
currently in talks over the proposed
Transatlantic Trade and Investment
Partnership (TTIP), which faces con-
siderable political roadblocks.
The state of Polish-Canadian
trade is already robust. A diverse
array of Canadian firms, like Valeant
Pharmaceuticals, McCain Foods, and
the software company Redknee, have
established presences in the coun-
try, while some of the largest Polish
companies have recently acquired
large assets in Canada. Once CETA
finally comes into effect, enterprising
Poles and Canadians will have even
more opportunity to do business across
the pond. by Yoni Wilkenfeld
misleading the government on a 2011
application for a rail tender.
Public-private partnership (PPP)
might also be a source of investment
from Canadian companies – the gov-
ernment will need to continue major
investments in infrastructure in the
coming years. While PPP cooperation
between Canadian firms and Polish
authorities has been limited, it is an area
where Canadian officials believe there is
a lot of potential for growth.
Broad agreement
The long-awaited game changer is the
Comprehensive Economic and Trade
Agreement (CETA), a broad free trade
agreement between Canada and the
EU that has been in negotiations for
more than four years. In 2013, Canadian
Prime Minister Stephen Harper and
then European Commission President
Jose Manuel Barroso signed an agree-
ment in principle on CETA, and the two
gathered last September for a symbolic
meeting to end negotiations.
The actual implementation of the
treaty, meanwhile, is still some time
away, as it will require approval by
the European Council and European
Parliament, and domestic ratification by
each of the EU member states. At this
stage, Poland remains just one of the
28 member states awaiting the oppor-
tunity to formally consider the treaty,
which it is expected to ultimately ratify.
But if and when CETA is implemented,
the doors to Canadian-Polish trade and
investment will swing open further.
CETA would eliminate all industrial
duties for European exporters, as well
as for nearly 92% of EU agriculture
and food products. The treaty would
also allow EU business to bid on pub-
lic contracts in Canada, opening up
a market of over a CAD 100bn worth
of federal and municipal projects.
For large companies like KGHM and
Orlen, it has not been difficult to cover
the expenses and tariffs of investing in
Canada, even without a free trade deal.
But its effect, experts say, could be
more significant for smaller companies.
“What’s really important is providing
an avenue for small and medium-sized
enterprises to do business. When you’re
talking about a smaller Polish company,
the idea of doing business in Canada
seems like a very difficult endeav-
‘From 2003-2013, Canada’s
exports to Poland grew
at a rate nearly double its
export growth rate to
the EU as a whole’
21. 40 41Canada
inFocus
Canadainfocus
compiled by Gabriel Rom and Yoni Wilkenfeld
sources: Government of Canada, 2011 Canadian Census, 2011 Polish Census, Canada.com,
Canadian Polish Congress, European Wildlife, Canadian Geographic, FIFA, 11v11.com, IIHF, CBC
Canadian exports
to Poland (2013):
CAD 456.6m
PLN 1.342bn
Polish exports
to Canada (2013):
CAD 1.25bn
PLN 3.68bn
Canada-Poland
total trade volume (2014):
CAD 1.9bn / PLN 5.6bn
Poland vs. Canada,
all-time football
record: 6-0
Canada was
the first NATO
member to approve
Poland’s entry into
the alliance
Canada
Population: 35.16 million
Land area: 9,984,670 km2
Capital city: Ottawa
Prime Minister: Stephen Harper
National anthem: ‘O Canada’
Canadian Ambassador to Poland:
Alexandra Bugailiskis (see interview, page 42)
Canadian GDP (2013): CAD 1,881.42bn
Canadian GDP per capita (2013):
CAD 53,518.54
Top Canadian exports to Poland:
Machinery, mechanical or electrical products;
mineral products; base metal products
Canadian direct investment
in Poland (2013):
CAD 202m / PLN 590m
POLand
Population: 38.5 million
Land area: 312,679 km2
Capital city: Warsaw
Prime Minister: Ewa Kopacz
National anthem: ‘Poland Is Not Yet Lost’
Polish Ambassador to Canada:
Marcin Bosacki
Polish GDP (2013): CAD 533.19bn
Polish GDP per capita (2013):
CAD 13,788.27
Top Polish exports to Canada:
Machinery, mechanical or electrical products;
miscellaneous manufactured articles; leather
fur products
Polish direct investment
in Canada (2013):
n/a
Canadians with Polish heritage: 1,010,705
Polish organisations in Canada: over 250
Year of first Polish
migration to Canada: 1752
Population of Kraków, Poland: 755,546
Population of Krakow, Canada: 1,000
CANADIAN IN POLAND
Poland Today speaks with John
Van Kannel, the chairman of the supervisory
board at brewer Perła-Browary Lubelskie SA
How did you find yourself in Poland? What
are your impressions of the country, its
people, and its business culture?
– I came to Poland in August 1991, and started
working as a journalist and editor, and teaching
English on the side. I found the people here to be
very warm and welcoming. As a bit of a foreign
oddity I was in high demand as party entertain-
ment. It was a great time. I also spent years just
soaking up the history and enjoying the nature
of the seaside, the mountains, lakes and forests.
In terms of business, I found the service element
pretty lacking, on just about every level. It seems
the most unhelpful, unfriendly types somehow
found their way into every service position back
then, whether it be in the shops, or the bars, or
at the ticket window. All that has changed. Even
at the bureaucratic level people are very helpful.
What are some of the biggest
difference between Poland and Canada?
– Apart from language I hardly notice a differ-
ence anymore. It seems there are more individual
freedoms here. Another noticeable difference
are prices. Canada is terribly expensive com-
pared to Poland.
What is it like being an expat in Poland?
Does it give you any advantages or
disadvantages in business?
– I’ve been here for 24 years, so I hardly feel like
an expat anymore. But I do think what used to
be an advantage for foreigners has become more
of a disadvantage. Foreign business people are no
longer revered just for being foreign. In fact there
may even be a bit of national pride at work and a
feeling that foreigners aren’t needed in business,
that they are taking jobs away from competent
Polish managers.
What is your view on the
business climate in Poland?
– There have been a lot of positive steps. But
there are still some byzantine procedures
that companies face. I think that the climate
for small business has generally been good,
and an entire class of individuals, represent-
ing what would be termed the ‘middle class’
in Canada, has sprung up here in the past
25 years to drive the economy forward.
A Pole and a Canadian each won one of the
two grand prizes at the Ottawa International
Animation festival last September.
Number of caves in Ontario’s
Warsaw Caves: 7
Poland vs. Canada,
all-time ice hockey
record: 0-7
23 March 2015, Krakowski Park Technologiczny, ul. Prof. Michała Życzkowskiego 14
conference
Spotlight on Kraków and Małopolska
Strategic partner partnerS
www.poland-today.pl
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