MADE IN POLAND 2012
INTERVIEW
minister on planned changes to regulations which would simplify the tax system give hope for a change. The most important thing is that such information does not remain just talk but is reflected in new regulations. So far, one of the only reforms implemented raised pension contributions. Unfortunately, this decision will not have a positive impact on exporters due to an increase in labor costs. Businesses understand the need to reduce subsidies from the budget. In our view, the system should ultimately be made as much self-funded as possible. Separating pension payments from budget subsidies leads to healthy public finances, which are an essential element of proper economic development. Increasing the amount of pension contributions by two points on the part of employers may, in fact, have negative effects on the labor market, mainly by slowing down the pace of job creation. Reducing the negative aspects of increasing the tax burden should be linked to consequent actions to reduce all types of barriers of doing business, especially in terms of administrative and legal matters. Otherwise, Poland will continue to fare poorly on business rankings such as the World Bank’s annual “Doing Business” and will not be able to effectively take advantage of the entrepreneurship potential that it holds. Are exporting companies in the chamber optimistic about the next 12 months? According to a study conducted by KIG which looked at the sentiments of Polish entrepreneurs last year, many more companies experienced a decline in export sales in 2011 (17.1 percent of those surveyed) than had been expected. A return to prosperity among EU countries, where Poland directs approximately 80 percent of its exports, did not follow as quickly as Polish exporters had hoped. Thus, the rise in export sales recorded by 40.4 percent of firms and stable sales recorded by 42.6 percent of companies should be considered a successful outcome. Among those respondents who are producers, more than a half (51.5 percent) reported an increase in export sales last year. In large part, good export results were seen in industrial branches such as automotive, furniture, and appliances. The expectations of exporters for 2012 are almost the same as last year. Most firms (45.4 percent) expect to boost exports or maintain them at the same level (43.7 percent of firms) and only less than 11 percent expect that their export sales will decrease. The weakening of the złoty from the third quarter of 2011 favors exporters. It may be argued that without the fear of negative effects stemming from the global crisis and an excessive public debt in certain euro-zone coun-
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tries, the forecasts for this year would be more optimistic than last year. Good prospects for domestic businesses will depend in particular on their domestic sales, their exports as well as investments, with good results for 2011 corresponding with even better forecasts for 2012. This means that for the whole economy one can expect GDP growth on a level similar to the current one. However, Polish entrepreneurs are pessimistic about the conditions for doing business which, according to them, will be worse in 2012. How would you assess Poland’s promotion of its own exports? Would you say the Polish presidency of the Council of the EU was used efficiently to this effect? As I have previously mentioned, Poland as a country, and Polish entrepreneurship, do not have a coherent promotional strategy. The number of activities aimed at promoting Polish enterprises, goods and services, is sparse and poorly funded. The period of the presidency was certainly an opportunity to promote our country in the European Union and change the perception of Poland as a country known mainly for the production of sausages and vodka. Did we take advantage of this opportunity? The next few months will answer that. In my opinion, we finally managed to show Poland as a country that is not so far behind in development, including in mentality, in comparison with the so-called “West.” We are open to new challenges, our economy is stable and the adjustment processes in companies allow them to meet even the toughest market requirements. More and more often, foreign contractors use the word “quality” next to the term “price” while describing the competitiveness of Polish goods and or services. It is worth upholding this image and speaking more about the changes that have taken place in the Polish economy and the fact that they are permanent. The turn of 2012 saw an important visit of President Bronisław Komorowski to China with a sizable business delegation. Would you say this is a sign that political support for Polish exports is rising? We hope that the president’s visit to China will mean a return to a positive relationship between the head of state and entrepreneurs as far as an active promotional policy abroad is concerned. The participation of the delegation of entrepreneurs during the president’s diplomatic visits contributes to building strong economic ties. During his visit to China, for example, several cooperation agreements and letters of intent were signed. In my view, this type of diplomatic missions should be systematic. v