POLAND TODAY magazine #06 by Poland Today

World Press Photo winner Chris Niedenthal shares his memories of transformation. page 30

Jan Cienski reports from Ukraine on how the country's divisions have made it vulnerable. page 42

A Polish startup that makes 3D printers has landed a huge deal with computer giant Dell. page 54

(06) mar/apr 2014

Climbing higher

Poland looks to build on the past 25 years of economic freedom Poland Transformed

In their own words page 34

How to improve business page 52

PRICE: 25 PLN / 7 EUR

photo: Pixonaut

page 22

Magazine • Portal • Conferences • find out more at www.poland-today.pl

photo: aparatki.pl

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table of contents

EDITORial

PROFILE

POLAND TODAY TEAM

The image-fixer

08 10

A reputation for competence and efficacy has catapulted Elżbieta Bieńkowska to the top of Polish politics.

GLOBAL MEDIA ROUND-UP

INTERNATIONAL

IN FOCUS

Split at the weak points

14-20

The crisis in Ukraine has laid bare the country’s stark divisions.

LEADER

Poland Transformed

With Russia flexing its muscle, what happens next in Ukraine will have a huge impact on Poland, experts say.

Jan Cienski explains how in 25 years Poland has gone from a ‘fish soup’ economy to a ‘new golden age’. There were three keys: economic and political freedom, increased security, and EU funds.

Eyewitness: The Polish transformation

Since 1973, photojournalist Chris Niedenthal has been documenting Poland’s transformation through images. He shares his stories and some of his best-known photographs.

Table of contents

In their own words

The chaos next door BUSINESS

Business round-up

A comprehensive overview of the most important recent events in Polish business and economic news.

The pension hole

Poland’s 1999 retirement reform was a costly experiment. A solution to how pensions will be funded in the future remains to be found.

A recipe for doing business better The World Bank’s head for Poland and the Baltic States Xavier Devictor tells Poland Today editor Andrew Kureth what Poland needs to change to make a leap in competitiveness.

Poland’s future in 3D

The sky is the limit for Polish 3D printer firm Zortrax thanks to huge order from Dell.

Chambers of commerce

Poland Today presents a round-up of news and events from various chambers of commerce in Poland.

SPECIAL FOCUS ON REAL ESTATE FOR MIPIM

57-80

Poland Today presents a special section on the opportunities and challenges in Poland’s real estate market for the MIPIM real estate fair in Cannes, France. One thing is clear: Poland is seeing renewed investment interest, and not only from the traditional sources (p. 58). Indeed, last year commercial transactions in the country reached over €3bn, the best year since 2006 (p. 66). There are challenges, however. The redevelopment of historical buildings – of which there are many – require close cooperation with city officials (p. 72) and land claims are hindering investment in Warsaw (p. 76).

We asked average Poles how the events of 1989, membership in the EU and accession to NATO have affected their lives.

Poland Transformed: An executive conference from Poland Today

On 3 April we will bring key figures from the domestic and international business community, as well as 50 leading foreign journalists to discover what the past has to teach us about the future.

Sopot: not just for summer anymore? page 82

Poland’s best Winter Olympics ever page 88

In their own words page 34

Sopot coming out of its summer shell

Officials and tourism industry players are pushing to make the city a year-round travel destination.

Łódź r(evital)ising

Poland’s former industrial powerhouse is looking to build a sustainable future. Redevelopment projects – including the construction of an entirely new downtown area – are set to change the face of the central Polish city.

A foreigner’s effort to get away from it all put him up against Poland’s post-communist bureaucracy and culture.

HISTORY

It happened in... March

Though less glamorous than the first free elections and not as immediately visible as EU membership, entering NATO offered Poland a new level of security that was key in allowing its fledgling democracy to develop.

CONVERSATION

Improved infrastructure is boosting Poland’s largest eastern city.

Impressions of Poland

SPORT

Poland Today sits down with foreigners living in Poland who have unique perspectives. This time, Kehrt Reyher, an expat from the United States, gives his take on some of his first impressions in Poland, how those impressions changed, and how the country changed him.

Poland’s golden winter

The 2014 Winter Olympics in Sochi were an unprecedented success for Poland. Having won only two gold medals between 1924 and 2010, the Poles returned from Sochi with double that number. Poles also won a silver and a bronze medal, bringing the total medal haul the country won to six. In all, a record-breaking nine proud Poles stood on the podium.

A divided land, right next door. page 42

table of contents

A lake, a hotel, and a battle for justice

Gateway Lublin

BOOKS & ARTS

The image-fixer page 40

Poland Today

is an idea whose time has come. Poland is increasingly playing a leading role in Europe – as has been made clear through recent events in Ukraine – and is ever more visible and respected on the world stage. The significance of the English language will only grow when it comes to business in the country, especially as Polish companies seek more markets for their expansion abroad and as more foreign investment comes in. The Englishlanguage media in Poland so far have not adequately reflected the country’s growing dynamism and ambition, which is one of the reasons we started Poland Today in 2012. We wanted to create an English-language platform – through our magazine, events, website and social media – which would, as our mission statement has it, “bring Poland to the world and the world to Poland”. This year we are organizing several events around Poland where people can make important contacts for their business and share knowledge and new ideas. We will involve international chambers of commerce and embassies in these events. We are proud that the Deputy Prime Minister, Elżbieta Bieńkowska, will be speaking at the 2nd edition of our Primetime Warsaw conference in April, and we’re excited by the prospect of bringing 50 foreign journalists – including the senior editor of The Economist, Edward Lucas - to Warsaw in May for our ‘Poland Transformed’ conference. This conference will focus on the dramatic success of the country over the last quarter century, seen through a business lens, and will discuss how this success can be further built upon, emphasizing the importance of R&D and innovation in education and business. We want to do our part to help Poland reach its full potential; we want to make it easier for investors doing business in this country, and we want to help promote a better, more up-to-date, image of Poland abroad. It's an exciting new start

Richard Stephens,

Founder & Editor in Chief

Publisher’s note

EVENT REVIEW

editorial

‘If there is any doubt as to just how successful the changes have been, just look across Poland’s western and eastern borders.’

Poland Today Sp. z o. o.

ul. Złota 61 lok. 100, 00–819 Warsaw, Poland tel/fax: +48 224648269 mobile: +48 694922898, +48 505006606 www.poland-today.pl

Andrew Kureth is

Editor’s note

editor of Poland Today. Originally from the United States, Andrew has been reporting on Poland for 10 years, specialising in topics related to business and economics. He has written for numerous international publications, including the Financial Times. He was editor in chief of Warsaw Business Journal for seven years. He has a degree in English from Kenyon College in Ohio.

It’s not an exaggeration to call Poland’s transformation one of the world’s best comeback stories. If there is any doubt as to just how successful the changes have been, just look across Poland’s western and eastern borders. Across the Oder River, to the west, is a reminder of Poland’s ambitions: Germany, the world’s fourth-largest economy, boasts the development levels that Poland would like to attain. Across the Bug, to the east, Ukraine’s fledgling government hangs on by a thread. A protest movement turned insurgency eventually pushed the country’s reviled president to flee – angering populations in pro-Russian regions like Crimea. Russia has now flexed its muscle and other eastern provinces are considering d eclaring independence from the central government. (see pages 42-45). That is the present that Poland has avoided. Back in the 1980s, there wasn’t much difference in terms of development between the two countries, but history led them on different trajectories. Poland seems to have made the right choices: freedom, security and an open market trading with its European Union partners (see pages 22-28). The result? In 25 years Poland has made up for over 500 years of economic backwardness. Last year, Poland achieved the highest level of income relative to Western Europe since the year 1500. Lest we forget that the opportunities Poles now enjoy are a relatively recent phenomenon, Chris Niedenthal’s photos (see pages 30-33) provide a reminder of what Polish reality once looked like. The British-Polish photojournalist has been documenting Polish life since 1973, and his images are some of the best-known from martial law and Poland’s transition period. Ordinary Poles also understand the importance of the triple anniversaries that occur this year (those of the first partially free elections, joining NATO and EU accession). No matter their political or demographic differences, Poles we spoke with all agree that Poland’s transformation has so far been successful (see page 34-36). Add a rebounding economy and an Olympic team that hauled in six medals at the Sochi games, including a recordbreaking four golds (see pages 88-89), and the general mood – at least prior to the Ukraine crisis – has been upbeat. Nevertheless, Poland’s transformation story is not finished; there is still much it could do to help its economy take off. Examples include fostering innovation and making it easier for businesses to operate here. (see pages 52-53). Here’s to hoping that Poland continues to find ways to unleash the entrepreneurial spirit of its people. It worked in forging a 25-year transformation that is an example for the world. It could do so again in the next 25 years.

Founder & Editor in Chief Financial Director Creative Director Business Development Director Marketing & Communications Director Sales Director New Business Consultant International Client Director Business Strategist Key Account Manager Event Manager Office & Conferences Manager Website Editor

Richard Stephens Arkadiusz Jamski Bartosz Stefaniak James Anderson-Hanney Sylwia Ziemacka Aneta Kłodaś Tomasz Andryszczyk Toby Hancock Ana Hermoso Magda Gawlikowska Marta Borowska Ewa Rycicka Damien Moran

PT magazine Editor Business Editor Real Estate Editor Journalist

Andrew Kureth Lech Kaczanowski Adam Zdrodowski Piotr Narel

Contributing Journalists

Krzysztof Bobiński Jan Cienski Matthew Day Cynthia Naugher Sklodowski Richard Stephens

Photographs

Polska Agencja Fotografów Forum

Art Director Graphic Designer DTP Operator

Bartosz Stefaniak Morgann Lechat Tomasz Wróblewski

Magazine layout

www.bartoszstefaniak.com

Printing house

ArtDruk Zakład Poligraficzny ul. Napoleona 4, 05-230 Kobyłka Poland Today Magazine is printed on Munken Print Cream ecological paper © 2014 Poland Today Magazine reproduction without permission is prohibited

POland today people

‘We all bring our own strengths and skills to the table in making Poland Today a success’ Marta Borowska, Event Manager.

James Anderson-Hanney, Business Development Director. James brings

Our growth has been rapid at Poland Today. This time

Richard Stephens, Founder & Editor in Chief

a jolt of passion and creativity to the development of Poland Today’s various lines of business. With a Polish wife and four bilingual children, his future is intimately tied to Poland’s. He’s an unabashed Polonophile.

last year there were three of us working out of an apartment. We’re still in the apartment, but now we have a team of 21 (not including our contributors), most of whom are full time. Because this growth has been quicker than we expected, we’ve taken some time out since the last issue of Poland Today was published in September to assimilate the team and to re-assess our objectives. We’ve also produced a major promotional English-language presentation for the Ministry of Foreign Affairs in that time. Our team is young, dynamic and very international – and we feel this is reflected in our publications and conferences. We all bring our own strengths and skills to the table in making Poland Today a success. My professional background is in real estate publishing and event organizing. Before launching the company, I set up and established the Eurobuild Awards, which were an immediate success and remain so. I’m delighted with the start we’ve made at Poland Today, and very proud of my team for making it possible. I’m grateful to my family and friends for their support, and to the companies that have backed us from the beginning, when we were just a concept.

Tomasz Andryszczyk, New Business Consultant. Tomasz

Marta has tried her hand at teaching Spanish and writing about volleyball. Finally, she joined Poland Today because she wanted to work with talented professionals on a big-impact project. Her role involves putting together the nuts and bolts of our many events.

is a busy man, dividing his time between his PR agency Primo Corporate Advisory, Poland Today and his family, but his keen understanding of media is invaluable. He was a driving force behind the establishment of our annual Primetime Warsaw conference.

The team

Damien Moran, Website & Social Media Editor. Au-

Our contributors include:

Edward Lucas

The Economist

Jan Cienski

Matthew Day

The Daily Telegraph

Piotr Smolar

The Financial Times

Le Monde

Katya Andrusz

Tadeusz Sobolewski

fmr. The Economist, Bloomberg News

Gazeta Wyborcza

Morgann Lechat, Graphic Designer.

Morgann has worked on graphic design all over Europe, from Amsterdam to Paris to Warsaw. Having been with Poland Today for about a year now, his role includes building the magazine’s graphic narration.

Marzena Lorenc, Business Review+ Project Manager.

With her experience working in Finland and the UK, Marzena’s international perspective puts her in a perfect position to understand the needs of our diverse array of readers and clients.

thor of a best-selling guide to the 2012 European football championships, Damien brings a wide knowledge set and keen writing skills to Poland Today’s online and social media operations. He has also volunteered around the world, from Haiti to Ghana.

Toby Hancock, International Client Director.

Magda Gawlikowska, Key Account Manager. Magda

Toby, an entrepreneur who lives in Spain, has visited Poland on many occasions. He finds the country vibrant and exciting, so he jumped at the chance to be a part of the management team. He represents the company to international contacts.

Cynthia Naugher Sklodowski, Production Manager & International Press Tour Co-ordinator.

was raised in the US and moved to Poland after college to learn more about his native country. He joined Poland Today to indulge his passion for journalism in his primary language. He enjoys learning languages, cooking, and travelling.

Arek was the first to sign on to the Poland Today project, and did so without hesitation. He loves high-adrenaline endeavours, like sky diving, and that comes in handy in his position as financial director of a start-up media company.

Ana Hermoso, Business Strategist. Ana is a

business and strategy professor with years of experience in the publishing and conference sector. These skills help her fulfil her role in honing Poland Today’s business strategy and advising on the establishment of forthcoming publications and events.

is a globetrotter and a woman of many talents: she plays the saxophone and has been a member of Poland’s sport shooting Olympic Team. It’s little surprise then that she brings enthusiasm and open-mindedness to Poland Today’s sales team.

Piotr Narel, Journalist. Piotr

Arek Jamski, Financial Director.

Cynthia has worked in media from Texas to New York City, at the magazines Cosmopolitan and Seventeen, but also in advertising. She has lived in Poland for four years with her Polish husband and young son.

Ewa Rycicka, Office & Conferences Manager. With

an educational background in philosophy and logic, Ewa brings her impressive organisational and interpersonal skills to bear as the manager of the company’s dayto-day operations and as a coordinator of business events. She is an avid traveller and follower of online media trends.

Lech Kaczanowski, Business Review+ Editor. Lech has

degrees in sociology and journalism, and was a Soros Foundation Fellow at Duke University in the US. With 12 years of experience covering Polish business, his depth of knowledge provides the insight that subscribers of Business Review+ find so valuable.

Andrew Kureth, Editor. Andrew is a

dedicated and experienced journalist with a reputation for organisation and goaloriented thinking. He came to us from Warsaw Business Journal, where as editor in chief he provided quality content on a weekly deadline for seven years.

Aneta Kłodaś, Sales Director.

Aneta brings a whole new dimension to the company: a successful and established series of regional and city events under the ‘Prospects in Poland’ brand. Her drive and focus have helped us achieve excellent sales results from day one.

Bartosz Stefaniak, Creative Director.

Bartosz joined Poland Today at its inception, and his artistic vision gave instant credibility to the firm’s products. From the ground-up design of the magazine to his work on ads and custom projects, his sharp, powerful, award-winning work speaks for itself.

Tomasz Wróblewski, DTP operator.

Tomasz has a degree in biology, but his real passions are sports, photography and design. He has combined all of these interests in his professional life, first while serving as editor of a skiing magazine and now at Poland Today.

‘We all bring our own strengths and skills to making Poland Today a success.’

Sylwia Ziemacka, Marketing & Communications Director. Sylwia’s years

of work in PR and advertising allowed her to develop communication strategies for many Polish and international brands. With Poland Today she has decided to use her experience and passion to promote Poland and build its reputation globally.

Adam Zdrodowski, Real Estate Editor.

Adam, an experienced real estate journalist, knows Poland’s development map like the back of his hand. He is editor of the property section of the magazine and the PT Urban Issues weekly digital newspaper.

global news round-up

Americas

Asia and Pacific

Europe

The New York Times: The Polish church’s gender problem

The Japan Times: Married for 50 years – Poland says you deserve a medal

The Telegraph: Ukraine crisis: Poland’s foreign minister tweets his way to a peace deal

Leftist Polish thinker Sławomir Sierakowski opined on how the word “gender” has come to dominate Polish political debate in an op-ed for The New York Times. Sierakowski decries statements by church officials such as, “the ideology of gender presents a threat worse than Nazism and Communism combined.” He points out that since the fall of communism, Gender Studies programmes have been established at most Polish universities and several feminist and LGBT movements have formed in Poland.

by Piotr Narel

The unusual Polish tradition of rewarding couples for being married 50 years with presidential medals was picked up in The Japan Times. It ran a story entitled “Married for 50 years – Poland says you deserve a medal.” According to the report, originally from AFP, the tradition is unique to Poland and is a product of a conservative backlash to communist-era policies that led to more women in the workforce and fewer marriages. The tradition began in 1960.

Sydney Morning Herald: Rare white lion triplets born in Poland

An Associated Press feature on the birth of white lion triplets at a private zoo in Borysew, central Poland, made headlines worldwide, including in Australia’s Sydney Morning Herald. According to the report, only about 90 African lions worldwide carry the rare colour mutation, including the parents of the recently-born triplets. The private zoo owner is said to feel “three times lucky” with the birth of the white cubs.

The Australian: Australian teens fall behind peers in Vietnam, Estonia and Poland The Washington Post: The hidden history of the CIA’s prison in Poland

The Washington Post recently featured an in-depth report about a former prison allegedly used as an interrogation centre for high-profile al-Qaeda suspects in Stare Kiejkuty, Poland, by the CIA. The report was widely circulated in the US. US Deputy National Security Adviser Ben Rhodes responded to the interest generated by the article: “I would not like to comment on what is happening in Poland. This is something that concerns the Polish government and Polish justice.”

Australian students are trailing those in Vietnam, Poland and Estonia, laments The Australian. It is not clear as to why Poland and the two other countries were specifically mentioned out of the list of well over a dozen countries ahead of Australia in the rankings. For several years Poland’s education system has scored highly in OECD rankings.

photos: Dawid Lasociński (Forum), Bogdan Hrywniak (Forum)

Global news round-up

CNBC.com: Poland and Romania are Europe’s ‘rising stars’

A 2000-2012 study by PwC measuring economic and social progress called Poland and Romania “rising stars” in terms of economic and social progress. CNBC picked up on the study, noting that Poland had risen six places between 2012 and 2000 and was the only EU country to avoid a recession in 2009.

SurferToday.com: Riding the Baltic Sea swell in the coastline of Poland

Poland’s coastline, measuring some 491 kilometres along the Baltic Sea, is one of the most unique surfing destinations in Central Europe, according to Portuguese website SurferToday. com. The report mentions that Poland has about 2,000 regular surfers and “the local surfing scene is growing rapidly.” Fast-moving waves in low-salt waters are offset by long waits for the appropriate winds. The main surfing spots are said to be in Pomerania and, for kiteboarders and windsurfers, the Hel Peninsula.

Middle East

Jerusalem Post: Jewish garb is cool in Poland

Warsaw-based clothing brand “Risk. Made in Warsaw” is “out to prove that being Jewish is cool and sexy” with its “Risk Oy” fashion line, according to The Jerusalem Post. “In a country where close to 75 years ago, Jews were forced to wear the yellow star that set them apart from non-Jews, both Jews and non-Jews now think it is hip to sport garments bearing Jewish symbols, along with Hebrew or Yiddish words or Jewish expressions,” reads the report.

Haaretz: Poland shows Israeli tourists all it has to offer

The Wall Street Journal: South Korea had the most last-place finishes in Sochi

After South Korea, Canada and the United States, Poland had the fourth largest number of Olympians finishing in the bottom three spots, The Wall Street Journal noted. The newspaper awarded Poland 2 lead (last place), 5 tin (second-to-last), and 7 zinc (third-to-last) medals in addition to the country’s 4 gold, 1 silver, and 1 bronze medals. The author writes, “Since the US and Canada have large Olympic delegations, it isn’t entirely surprising to see such large pools of Olympians finish all over the field of the competition. ... Poland has no such excuse.”

Polish Foreign Minister Radosław Sikorski’s habit of posting informative tweets on his Twitter account received mention in the UK’s The Telegraph in relation to the ongoing crisis in Ukraine. The foreign minister’s notable tweets have made headlines before, as in September 2013 when he took credit for a Syria peace plan with the post, “Pleased that Russia has taken up Poland’s suggestion of her role in dismantling Syria’s chemical weapons arsenal.”

According to Israeli newspaper Haaretz, tourists from the country are increasingly interested in Poland for reasons other than remembering the Holocaust. Haaretz cited statistics from an official at the Polish embassy in Tel Aviv which show that 80,000 Israelis visited Poland in 2013 – 10,000 more than two years prior. About a quarter of these were said to be “Israeli high school students on ‘Jewish legacy’ visits that include the death camps.”

Hurriyet: Turkey’s Syria, Poland’s Ukraine DNA: Big is beautiful in Poland

DNA (which stands for Daily News & Analysis), a Mumbai-based broadsheet, extolled mural street art in Poland. The report notes Poland “has seen a massive revolution where street art is concerned.” Many artists receive projects commissioned by city authorities and “huge murals and artworks are now a part of the landscapes in many cities of the country,” the author writes. Polish artists named in the article include Przemysław Blejzyk, Mateusz Gapski and Natalia Rak.

2014 marks the 600-year anniversary of diplomatic relations between Turkey and Poland, notes Turkish newspaper Hurriyet. The daily points to the similar present-day concerns of the countries due to conflicts at their borders in Ukraine and Syria, and notes Russia’s role in both conflicts. It also points to the countries’ good historical relations. “The Ottoman Empire refused to acknowledge the partitions of Poland at the end of the 18th century, while Poland was among the first countries to recognize the Republic of Turkey as a state. Turkey was among the countries supporting Poland’s entry into NATO, while Poland openly supports Turkish accession to the EU.”

Europe

The Telegraph: Ukraine crisis: Poland’s foreign minister tweets his way to a peace deal

SurferToday.com: Riding the Baltic Sea swell in the coastline of Poland

Middle East

Jerusalem Post: Jewish garb is cool in Poland

Haaretz: Poland shows Israeli tourists all it has to offer

Hurriyet: Turkey’s Syria, Poland’s Ukraine

IN FOCUS

21 February 2014, RadosĹ&#x201A;aw Sikorski, Poland's minister of foreign affairs,

had some strong words for a Ukrainian opposition leader during talks on a potential agreement with the Yanukovych government. Apparently, the opposition was reluctant to accept the deal, but Sikorski warned in the strongest terms that the agreement under negotiation was the best option. Both agreed to the deal, which quickly led to the downfall of the Yanukovych regime. Sikorski was roundly praised for the role he played in brokering the deal.

Photo:

Snapshot

from footage by www.itv.com

photo: Wojciech Artyniew (Forum), Krzysztof Kuczyk (Forum), Lucy Nicholson (Reuters), Mitchell Layton zumapress.com, music 2020

Rafał Blechacz

In 2005, 20-year-old Polish classical pianist Rafał Blechacz won all five first prizes at the 15th International Frederick Chopin Piano Competition in Warsaw. His victory was so decisive that the competition’s judges decided not to even award a prize for second place. For several years thereafter, unbeknownst to him, Blechacz was also dazzling a panel of anonymous judges responsible for administering the highly prestigious Gilmore Artist Award. Now 28 years old, Blechacz was informed that he would receive the $300,000 award in January. The award is granted every four years in a secret selection process to an artist deemed worthy of a successful career. Blechacz intends to use his award money to foster his career, either through a new piano or a recording deal with a major orchestra.

People

Grażyna Kulczyk

Thanks to Polish businesswoman Grażyna Kulczyk’s extensive art collection and her inroads in the international art scene, the largest display of contemporary Polish art in recent memory went on display at the prestigious Santander Art Gallery in Madrid 15 February. The exhibition is entitled “Everybody is Nobody for Somebody.” Besides marketing the contemporary Polish art scene to the world, she also helped establish the Kulczyk Foundation along with her daughter and former husband just a few days before the opening of the exhibition. Grażyna Kulczyk’s former husband is Poland’s wealthiest man, Jan Kulczyk. She herself was ranked as the 12th wealthiest Pole according to the Polish edition of Forbes in 2013.

Marcin Gortat

Marcin Gortat is the only Polish player in the National Basketball Association (NBA). Standing at 211 cm (6 ft 11 in) tall and weighing in at 109 kilograms (240 lbs), he has played centre for the Washington Wizards since being traded from the Phoenix Suns last year. Gortat began his basketball career with ŁKS Łódź before moving to Germany’s RheinEnergie Cologne. His first team in the NBA was the Orlando Magic, and with that team in 2009 he became the first Pole to ever play in an NBA Championship Series. In 2013, Gortat was the highest-paid Polish athlete, having earned more than 22m zł.

Włodek Pawlik

Włodek Pawlik, a Polish composer and jazz pianist, won the 2014 Grammy for Best Large Jazz Ensemble in Los Angeles on 26 January for his album “Night in Calisia”. It marked the first time a Polish jazz musician had ever been awarded a Grammy. In his acceptance speech Pawlik said, “I have received an award in the nation of jazz. I’m not going to hide it, I am very happy.” He stressed that the “entire production of this album was in Poland. This is a Polish product, and, as it turns out – an export product.” The title “Night in Calisia” refers to Pawlik’s hometown of Kalisz. The composer worked with the Kalisz Philharmonic to create the album for a ceremony celebrating 1,850 years since the city’s founding. Since winning the award, Pawlik claims that sales of the album have rocketed in both Europe and the US.

Ewa Chodakowska

Alicja Chybicka

Alicja Chybicka is a Polish physician, professor at Wrocław Medical University, the head of the Polish Paediatric Society, the head of the Polish Oncological and Haematological Society for Children, board member of several charity organisations and, to top it all off, a senator with the Civic Platform (PO) party. In January, the 62-year-old took part in a week-long charity expedition to the top of Mount Kilimanjaro, Africa’s largest mountain. “Last year, I completed two half marathons and a marathon. But they were nothing compared to ascending Kilimanjaro,” she said of the 5,985metre ascent. With her long list of accomplishments, it’s worth watching what this doctor-politician-athlete plans to do next.

Ewa Chodakowska’s fitness training videos made her the most famous personal trainer in Poland when fans took her exercise routines from her DVDs and put them on YouTube, eager to share the inspirational videos with others. Since then, Chodakowska has been busy taking advantage of her newfound fame. She hosts her own show on the private television network TVN and is a popular author, reaching the second spot in Polish bookstore chain Empik’s 2013 best-seller list. She was honoured at a gala in February for that achievement. Though it is often said that Chodakowska “trains all of Poland,” her latest project is a small fitness studio limited to 50 people which will surely play host to countless celebrities looking to benefit from her characteristically upbeat approach. Chodakowska was listed as the 9th most influential person in Poland in 2013 by Wprost magazine for the way in which she has motivated millions of women to exercise. She was the highest ranked woman on the list.

by Piotr Narel

in focus

Infographic: Purchasing power – then and now What the average Polish monthly salary could buy you 40 years ago and today

tea 1973: 140 packs (100 g) 2013: 765 packs (100 g)

ham

butter

1973: 31 kg 2013: 116 kg

1973: 165 sticks (250 g) 2013: 652 sticks (250 g)

The average net monthly salary

chicken

in 2013 was 2,800 zł, (~$900), nominally equal to the average salary in Poland in 1973 (~$35 at that time). This allows a comparison on how Poles’ purchasing power has changed over the last 40 years. (source: Central Statistical Office)

illustrations by Jagna Wróblewska

1973: 52 kg 2013: 393 kg

bread

public transport

flour

1973: 700 kg 2013: 622 kg

1973: 2,800 tickets 2013: 1,138 tickets

1973: 418 kg 2013: 1,176 kg

sugar

eggs

1973: 266 kg 2013: 712 kg

1973: 903 eggs 2013: 4,666 eggs

CONFERENCE & COCKTAil PARTy

Primetime Warsaw II

3 April 2014 | Conference Center Muranów | The Museum of the History of Polish Jews, Warsaw

Building on the success of our first conference about Poland's capital, we bring you all the major issues and opportunities, in Central Europe's pre-eminent city. lEAd SPEAKERS:

Keynote: Mrs Elżbieta Bieńkowska,

deputy Prime Minister & Minister of infrastructure and development

Professor Hanna Gronkiewicz-Waltz, Mayor of the City of Warsaw

Professor Sven Bienert,

MRiCS, Professor of Sustainable Real Estate at the University of Regensburg and Uli Sustainability Fellow

single ticket price: 1,150 pln early bird ticket price: 950 pln (till march 17th)

and Social • infrastructural Challenges for Warsaw within

away the ‘green’ • Cutting PR fluff: what are the financial

•

• •

•

patrons

media partner

partners

the new European Funds Perspective 2014-2020 Wola & Praga: two of Warsaw’s most dynamic districts, soon to be joined by the 2nd metro line The art of Placemaking: creating attractive public spaces in and around commercial properties

results and implications of sustainable development? Trends & issues in the office and retail sectors Can Warsaw come up with a comprehensive ‘high street retail’ plan?

organizing partner

photo: Krzysztof Freszel

to register please call +48 602 224 390 or email ewa.rycicka@poland-today.pl

20 in focus

Easier process for residence permits

Golden winter:

Poland hauled in six medals at the Sochi 2014 Winter Olympics – its most successful by far. Ski jumper Kamil Stoch, cross-country skier Justyna Kowalczyk and speed skater Zbigniew Bródka brought home a total of four gold medals between them, double the number of golds Poland had earned in all of the previous Winter Games combined.

see page 88

Beginning in May, foreigners interested in settling in Poland will benefit from a new law signed by President Bronisław Komorowski last December which will remove restrictions and ease procedures for those applying for residence and employment permits. The new rules include a measure intended to help students of Polish academic institutions remain in the country following graduWarsaw Shore: ation. Foreigners will save the time and MTV Polska’s new top show hassle of having to attain work and residence permits separately, as the “Warsaw Shore – Ekipa z Warszawy” (“Warsaw Shore – the Crew from process will now be consolidated into Warsaw”), the controversial Polish a single procedure. Additionally, instead equivalent of the popular American of having residency expire immediately reality TV show “Jersey Shore” has upon termination of employment, the become the most popular show on new law provides a one-month grace period whereby a foreigner terminated MTV Polska since the channel’s launch from employment may search for new in 2006, according to Nielsen Audience employment before their residency Measurement. The show concluded in mid-January with an average of about expires. Temporary residencies will now Big cats roamed be granted for three years, rather than prehistoric Poland 187,000 viewers per episode. As with two, and applications to extend resithe US version “Jersey Shore” and dency will no longer need to be sub- Remains of jaguars, leopards, and lions the British “Geordie Shore”, “Warsaw found in southern Poland at an archae- Shore” films eight people’s lives as mitted at least 45 days before expiry. Also beginning in May, foreigners ological site between Częstochowa and they live together in a flat in Warsaw, will be able to apply to extend their Kraków suggest that animal life in pre- go to work, and participate in frequent residence or visa at any time, even on historic Poland was much more diverse late-night escapades, including excurthe last day of their legal stay in the than previously thought, according sions to well-known Warsaw clubs such country. Foreign students studying at to University of Wrocław researchers. as Platinium and Organza. Polish academic institutions will now The animal remains date from between Agnieszka Odachowska, combe allowed to actively seek employ- 600,000 and two million years ago. Dr. munications manager with Viacom ment in Poland for a year following Adrian Marciszak from the paleozool- International Media Networks, said their graduation. However, certain ogy department at the University of the success of Warsaw Shore shows obstacles for foreigners will remain. Wrocław said, “The jaguar may have that a local version of a popular MTV Firms interested in employing peo- arrived around two million years ago show “can raise the popularity of ple from outside of the EU will still from Africa and Asia. Leopards and a given programme to new heights.” need to demonstrate that the local job Pleistocene lions lived later – around As with previous versions, the Polish version has been met with stark critimarket is insufficient to fill positions. 600,000 years ago.” Foreigners applying for temporary The researchers hope to use their cism. Sebastian Łupak from Newsweek residence will need to provide proof of findings to disprove theories which Polska wrote, “A real portrayal of Polish health insurance, detailed employment posit that Poland’s prehistoric climate youth or a desperate attempt at getting information and information on finan- was unfavourable to the development viewers by MTV? One thing is for sure: Warsaw Shore is the most vulgar procial resources to cover living expenses. of animals such as large cats. A website to help foreigners understand And they were large, indeed: the gramme on Polish television.” Karolina the new law will be launched shortly jaguars, leopards and lions thought to Korwin-Piotrowska from TVN Style have inhabited prehistoric Poland were referred to the show as “mental excreat www.cudzoziemcy.gov.pl. bigger than their present-day coun- ment.” In January, it was announced terparts. Researchers said that some that the Polish version of the show will Pleistocene lions were as big as cows be aired on MTV networks in Germany, and weighed in at half a ton. Switzerland, the Netherlands, and Scandinavian countries.

by Piotr Narel

1989/2014 Over the past 25 years Poland has wiped out nearly five centuries of decline, going from European backwater to one of the world’s most striking economic success stories. How was this transformation achieved, and what lessons does the country’s story hold for others?

Poland Today examines the country’s formula for success.

Transformation story: 25 years ago,

Poland’s economy was a basket case. Today, the country is the only EU member to have held off recession since 2008. Democracy, security, free trade and EU membership were critical factors. see page 24

Historical view:

Experts in history and international relations share their stories about the most remarkable qualities of the 1989 transition, joining NATO and EU accession. Which had the greatest effect on Poland and on their own lives? see page 28

Images of change: British-

Polish photographer Chris Niedenthal chronicled Poland's tumultuous transition period. He shares his memories and his most iconic photos. see page 30

illustration: Bartosz Stefaniak

photo: Aleksander Keplicz (Forum)

Poland transformed In 25 years Poland has gone from a ‘fish soup’ economy to a ‘new golden age’

Poland is one of the most

startling success stories among all emerging markets – a secure and stable democracy that has become a key NATO ally and an important member of the European Union, an economy with flourishing private companies which has not experienced a recession in more than two decades. 2014 marks a decent vantage point to look back on why Poland has succeeded, 25 years after it held partly free elections that led to the formation of the region’s first non-communist government, 15 years after Warsaw joined the Atlantic Alliance, irrevocably breaking free of its old Russian imperial master, and a decade after joining the EU.

Hopeless, bankrupt, collapsing

setting the ground for round table talks in the spring of 1989 that would allow for partly free elections. The communists, deluded by their supposedly all-powerful spy services, thought that they still had reservoirs of support and would win the elections – even Wałęsa doubted the opposition’s ability to rout the communists. But on 4 June, rout them they did, with the Solidarity-led opposition taking 99 out of 100 seats in the openly contested senate, and all of the 35 percent of seats up for grabs in the more powerful lower house. The stunned communists did not regain their footing, and on 14 August Tadeusz Mazowiecki formed Poland’s first noncommunist government since the war. It was those heady months that followed that laid the course for Poland’s success over the next quarter century.

A short 25 years ago, Poland was one of the most hopeless places in Europe – a nearly bankrupt state, riven by hyperinflation, with collapsing industries, garrisoned by thousands of Building businesses Soviet troops and led by a communist party that had lost all The first and most crucial reform was in economics. legitimacy. Grimy cities choked under clouds of smog gen- Mazowiecki, together with Leszek Balcerowicz, his finance erated by coal used to fuel industry and heat homes. Shops minister, unleashed shock therapy reforms at the beginning carried catchy names like “Bread”, “Shoes” and “Dairy”. of 1990 aimed at rebuilding a market economy – the first such Meanwhile, many well-qualified Polish engineers, scientists attempt in a formerly communist state. Balcerowicz moved and doctors supplemented their pitiful $25-a-month sala- quickly to cut off financial guarantees for state owned comries by working abroad – a month spent panies, banned the central bank from financing the budget deficit, made the picking French grapes, Norwegian strawberries or painting British houses złoty internationally convertible and would earn much more than an annual ended the state’s monopoly on foreign salary back home. trade. Suddenly all the activities that Saddled by an unworkable commuhad been illegal or severely restricted under communism became possible. nist system imposed by Soviet force of arms in 1944, Poland had hit bottom The immediate result was devastaby early 1989. It had always lagged the tion. Heavy industries and collective wealthier western half of the continent, farms were cut off from the loans and even during its golden age in the 16th subsidies that had allowed them to century. However, in 1939, just before continue operating despite producing the outbreak of the war, Poland had nothing of real value. The Gdańsk shipinched ahead of Spain, devastated yard, the birthplace of the Solidarity labour union, was put into receiverby its civil war, and was about half as wealthy on average as Western Europe. ship, and has since struggled to survive. Coal miners, once the shock troops of The bloodbath of the war followed a socialist workforce, lost their exalted by more than four decades of communism left Poland further behind status as the mines were suddenly than ever. By 1989, Poland was only forced to try to make a profit. Hundreds about a third as wealthy as Western of thousands lost their jobs. Europe – one of the greatest dispariBut amid the ruin, thousands more began to build their businesses. Many ties between it and the more advanced half of the continent in centuries. In got their start on the sidewalks of Polish the grim assessment of Adam Michnik, towns and cities, setting up booths sella leading dissident, Poland’s communists had managed ing everything from shoes to sausages. Suddenly, an econto turn the “aquarium” of subtle relationships that govern omy where many had money to spend but little sensible to a market economy into “fish soup”. buy had changed into one where goods were widely available. But the grim and grey winter of 1988 to 1989 carried signs “We didn’t expect such an explosion of new businesses,” that an attempt would be made to turn that soup back into a said Stanisław Gomułka, an economist and one of Balcero functioning marine environment. The Polish United Workers wicz’s advisers in the early 1990s. “That first phase of Party had finally realised that it could not push through eco- Polish capitalism was impossible to repeat. We haven’t nomic reforms without giving way politically – something seen such rapid private sector growth in any other ex-comthat had become possible after Mikhail Gorbachev took over munist country.” Many of the companies which today dominate the counthe USSR in 1985. The communists put out feelers to the still-banned Solidarity labour union headed by Lech Wałęsa, try got their start during those turbulent early months of

‘That first phase of Polish capitalism was impossible to repeat. We haven’t seen such rapid private sector growth in any other ex-communist country.’

25 leader

Jan Cienski is

the Warsaw and Prague correspondent for the Financial Times. He has been in Warsaw since 2003. Prior to that he spent five years as the Washington correspondent for the National Post, a Canadian newspaper. He also spent several years in the US working for the Associated Press. From 1992 to 1995 he worked in Moscow for the German News Agency DPA. Jan has a degree in international relations from the University of Toronto.

26 leader

On the previous spread: In one of the

most iconic moments of the transformation, Tadeusz Mazowiecki, Poland’s first freely elected prime minister, stood in Parliament and gave the victory sign after the country’s first non-communist government was officially formed on 14 August 1989. The people's ‘victory’ over communist rule had finally been achieved.

Belarus:

Bulgaria:

Czech Republic:

Hungary:

Latvia:

Lithuania:

+292%

+193%

+391%

+296%

+401%

+399%

1990: $1,705 2012: $6,685

1990: $2,377 2012: $6,978

1990: $3,787 2012: $18,608

1990: $3,186 2012: $12,622

1990: $2,796 2012: $14,008

1990: $2,841 2012: $14,183