Polish Market No.10 (277)/2018

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PU B LISHED SIncE 199 6 No. 10 (277) /2018 :: www.polishmarket.com.pl



........................ CONGRESS 590 MADE IN POLAND

........................ CYBERSECURITY



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traveller, businessman, sponsor, president of GreyGoose outsourcinG sp. z o.o.


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The Final of Santander Health Academy – in Wrocław Nordic Walking by prescription under the patronage of cardiologist prof. Grzegorz Raczak, M. D.


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Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

INDIAN SUMMER IN POLAND IS AN AMAZING TIME OF AUTUMN SHADES OF RED AND GOLD, A PHENOMENON SO TYPICAL OF THE POLISH CLIMATE. ON SUCH DAYS, EVEN READING SERIOUS ECONOMIC REPORTS IS UNABLE TO SPOIL THE MOMENT. Especially, when you start your reading with the latest OECD report on prospects for the global economy. When presenting the report, OECD’s new chief economist Laurence Boone pointed to threats and uncertainties, already known to all economists and politicians, but her conclusion was actually quite optimistic. She said that although the expansion of the global economy has probably reached its peak, global economic growth will only slow down to 3.7% in 2018 and 2019. In Poland, however, this conclusion may not seem so inspiring as we have become a true “green island” on the map of economic news. The OECD has revised up its growth projections for Poland for coming years. The Moody’s and Fitch agencies have revised up our ratings. Our PMI index is higher than that for Germany and the rest of Europe. This year, we have almost become a darling of the World Bank: as the first country in the high-income group we have been covered by the Bank’s individual strategy and included in the group of nations offering the best development opportunities for businesses and employees. The cherry on the Polish cake of good news is the decision of FTSE Russell, a provider of stock market indexes, to move Poland from the emerging markets to the developed markets basket composed of 25 countries. This means a completely new position of Polish assets in stock market listings, making them much more immune to accidental fluctuations. Does this come as a surprise? Not to experts quoted in this issue of “Polish Market.” We publish an excerpt from the latest report of the National Bank of Poland analysing Poland’s prospects until 2022. They are really good. To find out about the state of a country’s economy it is sometimes worthwhile to look at the state of its enterprises. The “Top 500 CEE 2018” report about the largest companies in Central and Eastern Europe has recently been released by the credit insurance provider Coface and the “Rzeczpospolita” daily. Among the Top 500 are 175 Polish companies, with six of them ranked among the Top 10. It is worth noting that our whole region is in a phase of rapid growth. Last year, the average rate of growth in the region reached 4.5%, the highest figure since 2008. A closer analysis of this report and the World Bank’s report on international economic ties shows that CEE is one of the best integrated economic regions in the world. However, we are fully aware that the 12 countries of the Three Seas initiative and almost all larger companies in the region, apart from the Polish copper conglomerate KGHM Polska Miedź, owe their economic position to either the size of their internal market or their production and technological ties with Western European giants. In the future, this may be a weakness. Without disregarding the importance of European integration, a strategy to open up to other large global markets has appeared as the most desirable for Poland and the whole region. New infrastructure investment projects in the Three Seas region under the EU programme Connecting Europe, and support for Polish businesses under the Go China programme are our response to the New Silk Road initiative. But admittedly, there is still a truly “long march” ahead of us. In November, we will be celebrating the 100th anniversary of Poland regaining its independence. In each of our issues this year we recall glorious pages in Poland’s economic development and the contribution of Polish people to the development of the world’s economy, science, technology and culture. We will join in the national celebrations with our official Pearls of the Polish Economy gala event at the Royal Castle in Warsaw on December 11 where we will present awards to the best Polish companies and persons who have rendered special services to science, culture, and social and patriotic activity.

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Cover: PAWEŁ KUŁAGA, traveller, businessman, sponsor, president of Greygoose Outsourcing Sp. z o.o. Photo source: www.shutterstock.com, www.commons.wikimedia.org unless otherwise stated.

10 (277)/2018 Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.)

Writers/Editors: Jan Sosna, Maciej Proliński, Jerzy Bojanowicz, Jan Mazurek, Andrzej Kazimierski, Janusz Turakiewicz, Janusz Korzeń

President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła

Translation: Sylwia Wesołowska-Betkier, Agit

Address: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl

Contributors: Agnieszka Turakiewicz

Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Managing Editor: Rafał Kiepuszewski

Graphic design: Godai Studio Agnieszka Charuba, Joanna Wiktoria Grabowska Sales: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Magdalena Koprowicz m.koprowicz@polishmarket.com.pl

DTP: Godai Studio www.godai.pl Printing: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl

Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. Nr KRS 0000080385, Sąd Rejonowy dla m.st. Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł. REGON 011915685, NIP 526-11-62-572 Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unsolicited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility whatsoever for the content of advertising material. Reproduction of any material from this magazine requires prior written permission from the Publisher.


OF INDEPENDENCE We would like to invite you to a gala concert marking the centenary of the regaining of INDEPENDENCE BY POLAND, on December 11, 2018 at the Royal Castle in Warsaw, which will be combined with the 16TH PEARLS OF THE POLISH ECONOMY and 13TH HONORARY PEARLS AWARD CEREMONY.



BOOSTING POLAND’S SECURITY AND POLISH-US ECONOMIC RELATIONS Polish President Andrzej Duda and First Lady Agata KornhauserDuda were officially welcomed at the White House on September 18 by US President Donald Trump and his wife Melania. President Duda and President Trump signed a bilateral declaration on cooperation in security, defence, energy, trade and investment. Donald Trump described Polish-American relations as excellent. He noted that Poland's security was very important to him. "According to President Trump, a permanent presence of US troops in Poland lies in the interests of the US,” Polish President Andrzej Duda told reporters after the meeting. The Polish head of state declared that permanent US bases in Poland would neither worsen security in the region nor increase militarisation. Referring to business relations, President Andrzej Duda said: “Poland is eager to welcome US enterprise. Poland is developing at a growing pace and offers excellent investment opportunities.” He told a press conference at the White House that he and President Trump discussed openings for US investors in Poland, and remarked that Poland was an attractive business partner. He added that Poland's commercial ties with the US could expand onto the Three Seas Initiative grouping

together Central and Eastern Europ ea n a nd Balkan countries. President Duda also said that energy cooperation with the US was of key importance to Poland, and that threats to European energy security were among the topics discussed with President Trump. In a joint declaration, the two countries pledged to review possibilities to reinforce US military presence in Poland and to oppose energy projects threatening common security, like Nord Steam 2.

(Sources: PAP, PAIH Newsletter, President.pl), Photos: president.pl

THE THREE SEAS INITIATIVE SUMMIT "Countries of the Three Seas Initiative wish to build and are in fact building an active and effective Central Europe,” President Andrzej Duda told a two-day summit of the Initiative in the Romanian capital Bucharest September 17. "Fully aware of existing challenges, we carry on our ambitious policy of modernisation of regions," President Duda said during a debate devoted to the role of Three Seas countries in international politics. The panel discussion, which was entitled "The Three Seas Initiative in a Challenging International Context," was attended by the leaders of Austria, Croatia and Romania. The Polish leader welcomed the fact that, in the three years since the launching of the initiative, cooperation among participating countries had reached an advanced stage. He described both the summit and the first Business Forum which accompanied it as extremely important.

DOING BUSINESS WITH DOWN UNDER Poland's President Andrzej Duda officially opened a Foreign Trade Office in Sydney on August 21. "This is our fiftieth office which we have set up in foreign countries. It marks the final step in the transformation of Poland’s economic diplomacy," Tomasz Pisula, President of the Polish Investment & Trade Agency (PAIH) said. "Since the beginning of my presidency, I promised to support these great ambitions, which PAIH has when it comes to facilitating Polish expansion in global markets," President Andrzej Duda said. The Sydney-based office is the third foreign representation of the Agency opened by the President. On his visit Down Under, Andrzej Duda was accompanied by the heads of key Polish mining, energy and high-tech companies. "We have plenty of solutions, which could be interesting for Australian investors," he said. On the day of the symbolic start of the Polish Investment & Trade Agency representation, companies took part in Polish-Australian Technology and Innovation in Resource and Energy Conference.

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Prime Minister

Speaking at a meeting of EU presidents and prime ministers in Salzburg on September 20, Prime Minister Mateusz Morawiecki pointed out that – next to Finland - Poland has the second longest external border in the European Union. “Therefore, we are showing our efficiency when it comes to the defence of external borders. Poland as a sovereign country decides who we want to accommodate, whom we agree to accommodate, and who we do not,” Mateusz Morawiecki told a news conference. He added that Poland decided not to take in refugees and it was its independent decision. “We are glad that the Polish point of view is increasingly accepted by many countries. The conclusions reached by the European Council in June, quite unexpected for many observers of the European scene, are a good proof of this,” he noted. The Prime Minister also pointed out that the question of the future EU budget figured prominently on the agenda of EU summits. As he pointed out, it would probably be difficult to establish the budget during the current term of the European Parliament and of European Commission. However, a dialogue is currently taking place and moving in the right direction compared to the initial proposals of the European Commission, he noted.

PRIME MINISTER MATEUSZ MORAWIECKI: THE CLEAN AIR PROGRAMME IS ANOTHER FULFILLED PROMISE OF THE GOVERNMENT "Warm homes, clean air and lower bills are a real part of our programme," said the Prime Minister during the inauguration of the government's "Clean Air" programme at a meeting in Opoczno. He declared that the government, within the framework of the Clean Air Programme, has decided to spend over PLN 100 billion over the next decade. This will be used for thermal improvements in of buildings, the replacement of old stoves and boilers or the purchase of new ones. Opoczno is on the infamous World Health Organization (WHO) list of places where the air is still very polluted. “We want the Polish energy industry to continue to be based on our independent energy sources, such as coal, which is why we must eliminate the possibility of burning harmful types of coal fuel in furnaces,” Morawiecki stressed.


“We are at a turning point, we are moving from the conceptual phase, developing a strategy to the practical phase of that is to the implementation of projects,” Prime Minister Mateusz Morawiecki said at the end of the third summit of the Three Seas Initiative in Bucharest." We have already developed and agreed on around 70 projects within the 12 countries from the area,” he observed. He explained these were the necessary solutions regarding gas interconnections, transport links, cybersecurity and e-economy. Prime Minister Mateusz Morawiecki announced the intention to develop a new cooperation platform based on transport links as well as new energy solutions. As he said, new connectors are being built between Poland and Slovakia, Slovakia and Hungary and Hungary and Romania. “We are talking about the real possibility of diversifying gas supplies from various sources,” he pointed out. “When it comes to transport, we accept the importance of restoring North-South connections, such as the Via Carpatia route, which is a priority for the current government,” the Prime Minister said. He also emphasized that thanks to the Via Baltica route trade and investment opportunities in the Three Seas region were set to improve. A letter of intent was signed during the summit on the creation of the Three Seas Initiative Fund. It is to be a financial instrument, whose aim will be to seek new resources for priority infrastructure investments. National contributions will be the basic source of financing, while development banks of the participating countries will be the shareholders.

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Photos: Krystian Maj KPRM



Our Guest


ADMINISTRATORS Prime Minister MATEUSZ MORAWIECKI’S address at the Election Convention of the United Right in Warsaw on September 2, 2018 (excerpts)

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Ladies and Gentlemen, Several months ago we presented five programmes to be carried out to regain vigour and willpower, which are especially needed in economy. Today, I would like to brief you on the implementation of these tasks. The first one is “Little ZUS” (reduced social insurance contributions – ed.) for Polish entrepreneurs – small businesses with low revenues. We had promised to do it and we did it. The second one is the “Good Start” benefit. (…) It is a very good injection of money for pupils – all of them - at the start of the school year. We did it. The next programme is “Accessibility Plus,” involving large-scale activity worth PLN23 billion, huge money committed for removing barriers for the disabled. We are doing it according to plan, just as we promised. And the fourth one – lower taxation for small businesses. Tell me how to build Polish capital.

We want more Polish ownership, more Polish capital. But so far everything has been turned on its head, with large companies paying a 0%, 2% or 5% tax and small businesses paying 19%. We are changing that. Since January 1 small businesses will be paying 9% so that they can grow because small firms are Polishowned and we want Polish-owned firms. I can also say that we have just completed painstaking negotiations with the European Union and the large companies, which have not paid taxes because of a special tax arrangement, will now be paying a 19% tax to the national budget. And the last programme – local roads. When we said we were setting aside PLN5 billion for road building no one could believe it. Meanwhile, having spent PLN1.5 billion, we are providing another round of funding – PLN5 billion - for local roads this September. We are putting Poland together. We are connecting Poland. Bridges, roads and railway

Our Guest

lines - infrastructure is what brings Poland together. One can argue when it comes to taxes, courts or education, but in this case there were no doubts. Everyone would like to do that, everyone would like to offer such funds to our compatriots. There was a different question here: where to get the money? We have shown that by defeating VAT mafias and tax offenders we are able to acquire money for both social policy and development policy. (…) Ladies and Gentlemen, Before I move on to the part where I want to tell you about five new proposals for local elections so that cooperation between the central authorities and local governments is as good as possible, I would like to say a few words about the wonderful economic and other successes that we are achieving because it is heart-warming to see what we have managed to do over the past three years. Firstly, could anyone imagine four or five years ago that we would have, all at the same time, a great social policy, high spending on defence (…), the lowest unemployment, the minimum wage and hourly rates raised to the highest level and low inflation, and that we would also be re-polonising the Polish economy. The Law and Justice government is doing just that. In the banking sector, we are re-polonising the biggest banks, we are re-polonising the energy sector, and even the record industry, which they have sold for the proverbial “cap of plums” – we are buying back our most beautiful songs from foreign hands. And recently, several days ago, we have succeeded in buying back from foreign investors the cradle of Solidarity – the Gdańsk shipyard. (…) Dear Ladies and Gentlemen, I would like to present now the five points which will now be an additional driving force for us, additional fuel for the local elections to ensure the best and closest cooperation between local and central authorities. The first one is about the home. We call it “A Warm Home - Polish Home” because high energy bills are often a real problem and a curse for ordinary people. This is why we are launching the biggest programme for thermal improvements. A warm home, lower heating costs, a cleaner environment and healthier people – this is just one proposal for the home. The second proposal is lower waste collection charges. We want to prove that this will be possible if our cooperation with good administrators of our little homelands is good. This is why we are implementing the programme “You Sort Waste - You Pay Less.” People want to pay less for waste management. We are preparing special preferential programmes for housing cooperatives, homeowner associations and single-family homes. And the third point – the home’s surroundings, with the elderly people in mind, in particular. We want to significantly raise our spending – at least double it – on homes for the elderly. (…) Rehabilitation for those who need it and cultural activity is very much needed by these people. What is

also very important in this programme, called “Surroundings – the Immediate Vicinity,” is sporting and recreation activity for the young, families and children. This is why we are going to spend PLN500 million over the coming several years on new theme playgrounds for children, new sports centres, outdoor gyms and open activity zones, which – as you already know – are viewed positively by people and they can make good use of them. And then, moving further away from this “home”, there is another sphere of our life we want to take care of. I mean things further afield: pavements, railway stations and buses. We call it “Modern Municipality” because under this programme (…) we will be spending our money in hundreds and thousands of places where there are no pavements to safely reach a school, for instance. We want “safe school” to also mean a safe road to school. And then, there are local railway stations – most of them dilapidated and often in decline. We have the largest programme for the modernisation of railway stations in 50 years or more. You can already see in Miechów or Żarów how successful our pilot modernisation programme has been. We are going to invest billions of zlotys for our railway stations to be beautiful again so that people living in small towns – and not only those in big cities – can enjoy them. And then, buses. The downsizing of the public bus service (PKS) and bus lines is an infamous symbol of Poland’s retrogression as is the closure of police stations, which we are now reopening. We will also earmark two times more money for municipalities which will want to restore bus connections. (…) The fourth programme, very important one, “100MB for the 100th Independence Anniversary,” is designed to ensure that children, young people and everyone living in small towns and villages have the same opportunities as those living in larger cities because Internet highways are as important for us today as motorways. This programme brings Poland into the Digital Age. Within three to four years we will spend PLN4 billion to deliver fast Internet to all of our 20,000 schools. And finally, the fifth programme, which we have called “You Live – You Decide,” which means participatory budgeting. The goal is to ensure that local residents have more say about the allocation of municipal budgets. For cities with county rights we have put in place a regulation under which 0.5% of their total budget has to be set aside for participatory budgeting. Now, we want smaller towns and urban-rural and rural districts to also have the right to participatory budgeting. We will earmark PLN300 million for this purpose. We want the places where people live to be tidy, orderly and attractive. These are the five programmes for which the government will set aside more money than any central authority has ever earmarked for supporting local governments. Never before did we have such a great wave of investment projects supported by the central government. So let’s elect good, honest, efficient and effective administrators for municipalities, counties and provinces. • 10/2018 polish market



WHAT’S IN STORE FOR THE POLISH ECONOMY? In the wake of the weakening of the euro-area economy, Poland’s GDP growth over the projection horizon will also be gradually pulling back from the high level recorded in late 2017 and early 2018. Although household consumption will remain the main component of GDP, the contribution of investment to GDP will increase in 2018-2019 owing to the need to enhance the production capacity of the economy and due to the inflow of funding from the European Union, according to a report published by the National Bank of Poland.


ver the projection horizon, the consumer price index (CPI) will go up to stay at slightly over 2.5% in the years 2019-2020 in lagged response to demand and cost pressures in the Polish economy. The heightened demand pressure will be reflected in a positive output gap. At the same time, problems caused to businesses by the insufficient supply of labour will be contributing to a rise in unit labour costs.

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With household optimism at a record level, private consumption will remain the main driver of economic growth in coming years. The development of the situation on the labour market, favourable for employees, will be conducive to the relatively high consumption. Over the projection horizon, it is expected that the unemployment rate will further decrease and that wage growth will continue to be


relatively high. Household consumption will be stimulated by low interest rates, which will be pushing down the cost of credit for financing consumer expenditures. At the same time, the Family 500 Plus child benefit programme, which boosted consumption growth in the years 2016-2017, will only have a slight impact on the pace of consumption this year. Additionally, rising inflation will restrict the growth of the purchasing power of households. Considering these factors, the pace of consumption growth will be gradually moderating over the projection horizon from its present peak. This year, investment growth will reach its maximum level in this cycle, with the sector of central and local government institutions remaining the main source of the spending increase. In the following years, the rate of increase in gross fixed capital formation will slow, with a rising contribution from business investment and decreasing contribution of residential investment. The rapid growth of public investment in 2017 and at the beginning of 2018 was mainly related to a rise in local government spending supported by EU funding. Data released by the Ministry of Economic Development on agreements signed for the use of funding available under individual operational programmes imply that a further robust increase in public sector spending can be expected in coming quarters. However, in 2019-2020 the annual increase in transfers from the EU will be lower than predicted for 2018, tempering the pace of public investment growth. Data from both company financial statements (F-01/I-01) and national accounts show that businesses are moderately stepping up their investment activity. Their investment rate remains relatively low, despite a very high level of capacity utilisation, as reported by the National Bank of Poland (NBP) and Statistics Poland (GUS). The transport sector is contributing the most to the rise in investment spending. This is true, in particular, of companies with publiclyowned majority stakes using EU funding in their activity. In some sectors, investment is constrained by mounting labour shortages. The percentage of businesses reporting vacancies is high and the problem is signalled especially by those which invest to raise their production potential. In addition, businesses seem to perceive their ability to replace labour with capital as limited, at least in the near term. In manufacturing, in particular, the percentage of businesses reporting equipment shortages as a barrier to

their activity is close to a historical low while at the same time the percentage of businesses reporting problems with finding suitable workers is very high. However, considering that demand conditions are favourable, one can expect business investment to pick up in coming quarters. This is implied by surveys conducted by the NBP. They indicate that propensity to start new investment projects is visibly growing. Many of the surveyed businesses also plan to expand the scale of their ongoing investment projects. The historically low level of interest rates will be making it easier to buy fixed assets with the use of credit or lease, although companies’ own resources are still the main source of investment project funding. Over a longer horizon, business investment growth will slow as internal and external demand will be weakening and the absorption of EU funding will be slowing. Household expenditures on the residential property market will be driving investment spending in the national economy throughout the projection horizon. The housing market is still in the phase of expansion. So far growing demand has been largely met by the large supply of homes, keeping prices in check. At the same time, home purchases are still financed to a large extent from households’ own resources. Over the projection horizon, the pace of residential investment will be gradually dampened, in line with a slower growth in households’ disposable incomes, to a level close to the GDP growth rate. On the supply side, residential investment will be held back by a shortage of construction workers, and rising prices of construction materials and plots designated for housing construction. One reason behind the latter will be more restrictive rules for the sale of properties in the State-Owned Agricultural Property Stock. The projection assumes that public consumption growth in 2018 will be below the expected GDP growth rate. The assumption results from provisions of the 2018 budget law, under which growth in current expenses of budgetary units and spending on subsidies financing current expenses of other units of the public sector will be relatively low. In particular, it is planned that wages of a part of public sector employees will remain frozen this year.

CURRENT ACCOUNT AND CAPITAL ACCOUNT BALANCE In 2017, the balance on the current and capital account was positive at 1.6% of GDP,

mostly thanks to a record surplus on the services and goods account. Strong external demand driven by the accelerating global GDP growth coupled with continued favourable price relationships in foreign trade were the factors which helped Poland to achieve the large trade surplus. The surplus on the capital account, which included a major part of EU funding, also expanded last year. In contrast, a continued high deficit on the primary income account pushed the surplus on the combined current and capital account down. The deficit stemmed from the income of foreign investors from their investment in Poland being higher than the income of Polish investors from their investment abroad because the non-residents’ investment was both higher in value and generated more profit. It is expected that the balance on the combined current and capital account will deteriorate in 2018-2020 to reach on average a slightly negative level as a result of a shrinking trade surplus as imports will be growing faster than exports. The future path of exports will be influenced, in particular, by a moderation of economic growth in the euro area, including Germany. At the same time, the relatively faster imports growth will be associated with a rise in investment demand in the Polish economy, including business investment where imports play an important role. In addition, the trade surplus will be affected by less favourable price relationships in foreign trade caused mainly by an increase in prices of energy commodities on global markets. The balance on the current and capital account will also be deteriorating, largely on the back of rising wages paid to immigrants, mainly Ukrainians, working in Poland on a temporary basis. The deterioration of the balance on the current and capital account in 2018-2020 will be partly offset by an expanding surplus on the capital account due to the inflow of EU money for investment under the EU 2014-2020 financial plan.


The pace of potential output growth over the projection horizon will accelerate to 3.5% year on year as total factor productivity (TFP) will continue to gain momentum and growth in production capital will start accelerating thanks to a rise in the investment rate. A slightly positive contribution to potential output growth will also come from the effective supply of labour, taking into account the number of economically active people and 10/2018  polish market



the natural unemployment rate. A further improvement in the quality of human capital will be conducive to the acceleration of TFP growth over the projection horizon. A sign of this is a rising percentage of persons with degrees in the over-44 cohort as people from the younger cohort where the percentage of degree holders is high are successively joining this group. TFP will also be positively influenced by the improving innovation performance of the Polish economy and its increasingly strong position in global value chains. The buoyant labour market will be underpinning growth in economic activity rates, especially for people of preretirement age – those aged between 50 and 59/64. Their labour market participation is still markedly lower in Poland than in Western European countries. The presence of immigrants, mainly Ukrainians, on the Polish labour market adds to the supply of labour. The lowering of the retirement age since October 1, 2017 will probably have a constraining effect on the economic activity rate for the oldest age group – people aged 60/65 and over. Additionally, potential output growth will be restricted by the continued unfavourable demographic processes leading to the shrinking of the country’s workingage population.


In the second half of 2017, the output gap, which had been negative since 2012, was closed. This year, real GDP growth will still outpace production capacity growth, contributing to the widening of the positive output gap. In 2019-2020, the demand gap will stabilise, as the economy will slow, and then decrease slightly to 1.8% of potential output. The growing demand pressure in the whole economy over the projection horizon will be gradually translated into a pick-up in CPI inflation in coming years.


The rise in the number of employed will be gradually losing impetus over the projection horizon. At present, labour demand conditions are favourable, but with an economic slowdown expected in coming years growth in demand for labour will also be tempered. The insufficient supply of labour will be increasingly constraining a rise in the

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number of people in work. The number of unemployed who could take up jobs is small. This is reflected in the unemployment rate, which is at a record low level and continues to go down. Consequently, businesses have difficulty finding suitable workers. The percentage of businesses indicating a shortage of workers as a barrier to their activity and reporting vacancies is higher than ever. In 2018-2020, wage growth will stay at an elevated level, above the pace of labour productivity growth in real terms. On the one hand, wages will be pushed up by a continued decline in the unemployment rate and a rise in consumer inflation. On the other hand, demand for labour from businesses will ease over the projection horizon and the wage pressure will be additionally mitigated by the presence of immigrants from Ukraine. Surveys conducted by the NBP also indicate that wage growth will stabilise in coming quarters because the percentage of firms reporting that they are planning to raise wages has declined, although the share of workers who are to receive wage rises has gone up and the average value of the rises has slightly increased.


In the second quarter of the year, the zloty weakened against the currencies of Poland’s main trading partners, in particular against the US dollar, on the back of global factors. The real effective exchange rate of the zloty is now below the level indicated by fundamentals. In particular, the present exchange rate of the zloty is significantly below the level which would be a barrier to the exporting activity of Polish businesses. It is expected that over the projection horizon the effective zloty exchange rate will be strengthening, gradually approaching the equilibrium rate. The scale of the expected appreciation is partly constrained by the diminishing interest rate disparity as the projection assumes that central bank interest rates will remain unchanged and the cost of money in the external environment will increase.


CPI inflation will pick up over the projection horizon and in the years 2019-2020 will run

slightly above 2.5% on the back of rising cost and demand pressures in the Polish economy. Business costs are pushed up, in particular, by wage growth, which will stay at a heightened level over the projection horizon, above labour productivity growth in real terms. Inflation will also be pushed up by demand pressure, which will be reflected in a positive output gap in 20182020. However, price sensitivity to changes in economic conditions in Poland has eased in recent years, being one of the reasons behind a relatively slow inflation growth in this business cycle. Apart from the factors mentioned above, the inflation path will be additionally influenced by factors pushing up energy prices in 2018-2019. At the same time, unfavourable supply-side conditions will recede this year and food inflation will moderate compared to 2017. An upward effect on energy inflation in 2018-2019 will come from a rise in prices of energy commodities on global markets in the second quarter of this year coupled with the weakening of the zloty. Since January 2019 energy prices will also be pushed up by higher electricity bills associated with a rise in costs of ensuring energy security and support for renewable energy sources. The introduction of emissions tax will contribute to an additional increase in fuel prices next year. The expected conclusion of arbitration proceedings between PGNiG and Gazprom this year will be a factor mitigating energy inflation as it will be pushing down prices of natural gas for households. Despite the inflationary impact of demand and cost factors, food inflation over the projection horizon will be lower than in 2017 as the impact of unfavourable supply-side conditions will recede and shortages on markets for some agricultural products will ease, factors which contributed to increases in prices of fruit, vegetables, meat, dairy products and eggs last year.


There is some uncertainty around the projection’s central scenario, which presents the most likely development of Poland’s macroeconomic situation. Global economic conditions are now the biggest source of risk to economic activity in Poland. And the biggest risk to inflation comes from oil prices on global markets. •



Polish President Andrzej Duda has signed a law establishing the Polish Economic Institute (PIE). The public think-tank, under the authority of the prime minister, is to serve as a base of knowledge for the government. Under the government-submitted law, the Polish Economic Institute replaces the existing Institute for Market, Consumption and Business Cycles Research. Among its tasks will be providing the government with expert opinions to help the implementation of the Strategy for Responsible Development. The following is the gist of the Institute’s first report entitled “Capitalism the Polish Way. The Socio-Economic Model of the European Union’s 6th Biggest Economy,” published in Warsaw in July 2018.


he debate on whether capitalism or socialism is a better system was finally settled more than a quarter of a century ago. To this day, there is discussion regarding the question of what type of capitalism is the best. Over the years, it seemed that Poland should follow the path of liberalism, reduce the state’s participation in the economy, commercialise it, and rely on the belief that capital does not have a nationality (Kozarzewski & Bałtowski, 2016). Meanwhile, it is not true that every country can choose an economic model for itself. It is always a result of the state’s political system, international requirements and broadly understood culture. Poles differ from other societies, they even differ from the other inhabitants of Central and Eastern Europe (Arak & Wójcik, 2016). If the economic system is not suited to these conditions, it simply fails. Over the years, the idea of limiting expenditures and remaining reluctant to radical tax reforms and increasing VAT collection was the priority. At present, the key criteria are inclusive economic development and solutions that are beneficial for families. For this reason, confidence in the economic system is now the highest in 25 years. The expectations of the public coincide with the policy pursued by the government. This report shows that the reconstruction of the Polish economic model as part of the Strategy for Responsible Development takes place by strengthening the role of Polish capital, reducing dependence on external shocks and increasing social security. The world’s 22nd largest economy modifies its social system, increasing the competitiveness of the economy. A more social model of capitalism in Poland is necessary due to the negligence of previous years, in which a large part of society was left on its own. In addition, there are forecasts according to which technological progress will reduce the demand for labour. In this situation, work can become a luxury, and large numbers of people will have to be supported by the state. The young generation of Poles also does not seem to want the wild capitalism in which they grew up and which their parents created. They advocate a balance between work and private life, and above all, they value family life above work. Half of the young Poles (48%) think that work should not force them to give up other things in their lives and 32% would like to have jobs

affording them more free time for other activities and leisure. Poland is reaching the stage of economic development which Western countries reached in the early 1990s, when part-time work and teleworking became more popular. This will also mean a reduction in the average number of hours worked by Poles (Deloitte, 2018). Poland, by establishing its own model of competitive capitalism of a social market economy, can help reform the EU. We have examples from a multitude of countries that thrived in the first five, 10 or 15 years after entering the integration experiment. All southern European states seemed in perfect condition for many years after accession. It appeared that Greece and Portugal would soon catch up with the rich West. But then came the crisis from which, despite great efforts, these countries have been unable to come out (Podkamer, 2014). Poland and other CEE countries did not have an opportunity to pursue a model different from the one imposed on them externally so that they could join the Western structures, because their bargaining power was very weak in the 1990s. Not for a moment did Poland consider the integration model adapted to its specific local conditions. The governing authorities focused on absorbing short-term benefits, without a vision of how to exist in the future. The EU has to adapt its economic model to the requirements of the present time. The Polish example shows that tax collection tightening leads to higher tax revenues and the ability to pursue a more ambitious policy of inclusive development. In the case of the EU, narrowing the European VAT gap and clamping down on tax havens would allow for a more ambitious EU budget that could make the European economy more competitive and socially cohesive. Poland is on the way to modifying its development course. In the CEE region there are also attempts, including in Hungary, to break out of peripherality by implementing its own economic model, not necessarily identical with what other countries consider to be right. The task of the region, but first of all of Poland, is to try to find new solutions for the EU, so that various development models have the chance to coexist and create conditions for sustainable development of societies in the realities of the global economy and the fourth in• dustrial revolution. 10/2018  polish market



CONFIDENCE IS KEY “Polish conformity assessment bodies are very well prepared for performing their tasks in the conformity assessment system. They have the necessary resources: well-trained and experienced personnel, infrastructure and equipment, and credible conformity assessment procedures relevant to specific fields of activity,” LUCYNA OLBORSKA, Director of the Polish Centre for Accreditation (PCA), tells “Polish Market.”

Do you often hear the question of what accreditation is actually about? Not in the environment in which I work. But I understand that accreditation issues may seem more complex to a broader audience. The basic goal of accreditation is recognising the competence of conformity assessment bodies – certification bodies, inspection bodies and testing laboratories – to perform specific activities. Accreditation rules are defined by international standards and guidelines containing specific requirements for both accreditation bodies and conformity assessment bodies. Receiving accreditation means that the accredited organisation has been assessed according to these documents. Standards are omnipresent and we are often not even aware of their universality. The results of accreditation pertain to all areas of social life. PM


The leitmotif of this year’s World Accreditation Day on June 9 was “Accreditation.

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Delivering a Safer World.” How do these two areas overlap? And how do you view accreditation results in today’s world? Expectations when it comes to safety are something that concerns us all in some respect. Even if we think that it does not concern us our individual actions have an impact on collective safety. It is impossible to omit safety matters, be it in the work environment or when it comes to the safety of products, transport and food. Statistical data show that the real-world situation does not always measure up to our expectations. Bringing the existing situation into line with the expectations is extremely important for governments, regulators and businesses in an effort to enhance the safety of people at work, in private life, when travelling and in all other spheres of our social and daily life. After all, every community needs precisely defined standards to ensure its problem-free functioning. Meeting specific standards, conformity assessment and accreditation are well-tried

and recognised tools which contribute to enhancing safety in the world. The use of the accreditation system and its requirements influences our daily life by, for example, ensuring our safety at work, safe vehicle designs, the safety of products, technical equipment and building materials, safe and healthy food, reliable management systems, the protection of personal data and cybersecurity. How can accreditation help to increase the effectiveness of activities carried out at local and central government level? Is accreditation properly applied in Poland by local authorities and public institutions? Acting effectively means reaching one’s goals while at the same time eliminating unnecessary risk and the associated cost of wrong choices or decisions. The public administration sector and local governments can and should use the Polish accreditation system and the results of accredited conformity assessments in their activities and when PM

Economy taking decisions in the area of protecting public interests, such as health, general safety and safety at work, environmental protection and consumer protection. The results of accredited tests, inspections and certification are a credible basis in the decision process. Relying on this verified basis, the public administration sector and local governments may avoid many wrong decisions, for example in the process of public procurement, and operate effectively in the interest of us all as society. The accreditation system can also be used directly by central and local government bodies in auditing or assessing the competence of individual organisations for the purpose of their authorisation or notification in a specific area of activity.


How are Polish conformity assessment bodies prepared for their role? Is accreditation only a formality for them? Do they adhere after their accreditation to the standards required by PCA? Polish conformity assessment bodies are very well prepared for performing their tasks in the conformity assessment system. They have the necessary resources: well-trained and experienced personnel, infrastructure and equipment, and credible conformity assessment procedures relevant to specific fields of activity. To receive accreditation, an organisation needs to develop and implement a management system complying with the requirements of a relevant international accreditation standard and prove its competence to carry out specific conformity assessment procedures, like for example testing and product certification. In accreditation, competence is understood as the ability to use knowledge and skills in practice. It is essentially the main object of assessment in the accreditation process: observing the organisation’s activity in the specific conformity assessment area and assessing whether the set and required goal is achieved. Accreditation assessments are seen by conformity assessment bodies as a rigorous verification of their preparation for conformity assessment tasks. This expert rigorous approach, based on identical and uniform requirements of international standards applied by all accreditation bodies, is the main reason why accreditation results and results of accredited activity, like for example reports from tests and conformity certificates, are widely recognised across the world. After granting accreditation , PCA supervises the accredited conformity assessment bodies and in doing so applies the same assessment rules as in the accreditation process. The assessments, just like those in the accreditation process, are designed not only to verify that the bodies meet the requirements, but also to ensure that assessment teams provide value added to the organisations. PCA entrusts the task of assessing the bodies to teams of assessors who are reliable experts in relevant conformity assessment fields.

Is it possible to indicate economic sectors where accreditation is particularly justified and should have the widest application? One of the key advantages of the conformity assessment and accreditation systems is that they can be applied in almost every sector of industry and business context: from food safety and environmental safety to construction and crime investigation. There are now thousands of various accredited conformity assessment standards. In some sectors, accreditation is legally required. And in most sectors, even if the standards are voluntary, organisations are expected to apply them. Standards are indispensable for the development of an organisation in almost every economic sector. They not only regulate the proper functioning of the organisation, but also add to its competitive advantage and strengthen the reputation of itself and its products. There is also a strictly economic benefit involved in the form of transaction cost reductions or the development of new ties contributing to higher production efficiency.

To what extent is the business community aware of the role of accreditation? Do managers see it as a quality assurance tool? I think that managers are aware that having a management system certified by accredited conformity assessment bodies adds to the company’s advantage and competitiveness on the market. The business community’s awareness of the role of accreditation in improving public safety, supporting quality and the competitiveness of Polish industry, and boosting foreign trade grows every year. The number of economic sectors where services of accredited conformity assessment bodies are used is on the rise. One example which proves this is the growing interest of managers in implementing information security management systems in compliance with the ISO/IEC 27001 standard and business continuity management systems in compliance with ISO 22301. The ISO/IEC 27001 standard ensures systematic approach to managing sensitive data, which makes the company secure. Information security management systems (ISMS) cover people, processes and IT systems, and support

Is accreditation a guarantee of the quality of conformity assessment services provided by laboratories and certification bodies? I can definitely say with full responsibility that a crucial part of building public confidence in goods and services is their assessment conducted by conformity assessment bodies. The bodies undergo a rigorous process of assessment which checks whether they meet a number of detailed requirements directly related not only to the testing and certification activity they conduct, but also their management systems, which are expected to ensure the constant improvement of the organisations. PCA is not liable for the activities conducted by the accredited bodies. However, the requirements that the accredited bodies have to meet in the process of assessment by PCA mean that there is definitely high certainty that in practice they will be taking care to provide credible and quality services. Thanks to accreditation, one can be certain that goods and services launched on the market, irrespective of their country of origin, meet • quality and safety standards.



small, medium and large firms of any sector in protecting their information resources. Business continuity management systems (BCMS) enable the firms to prevent dangerous incidents, decrease the likelihood of their occurrence and be ready to adequately respond if they do occur, thus reducing the risk and potential damage resulting from the incident. The system makes it possible to understand and identify essential threats for the operation of the business. This classic example allows us to say that managers are well aware that by maintaining management systems certified by accredited conformity assessment bodies in their organisation they enhance its advantage and competitiveness on the market. PM


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EUGENIUSZ KWIATKOWSKI (1888-1974) is a special character in the history of Poland. He was a politician, economist, writer and historian. After years of oblivion, he is now recognised as one of the most outstanding politicians who changed the face of the Polish economy. In the interwar period, he served as a deputy prime minister, as well as minister of industry, trade and treasury. He was a great visionary. He came up with a cohesive concept of Poland’s modernisation. The new Baltic port city of Gdynia and the new Central Industrial District (COP) developed in the interwar period are symbols, permanent traces of his thoughts and actions. Maciej Proliński writes about this eminent economist and statesman as part of a series devoted to the history of Polish statehood published within the “Niepodległa” (Independent Poland) programme.


ugeniusz Kwiatkowski was born in Kraków on December 30, 1888. His father was an engineer and his mother came from the well-known burgher Moszczeński family. He was educated in the Lvov Franz Josef Junior High School, followed by a Jesuit school in Bąkowice, where in 1907 he passed the matriculation examination. Later, he studied at the Faculty of Technical Chemistry of the Lvov University of Technology, and then at the University of Munich. During World War I he fought as a soldier of the Polish Legions and of the Polish Military Organisation. During the Polish-Bolshevik war of 1920, he worked for the Polish military. In 1921, he began to lecture at the Faculty of Chemistry of the Warsaw University of Technology, two years later he became technical director

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of the National Association of Nitrogen Factories. He began his political career in 1926, when Prime Minister Kazimierz Bartel entrusted him with the position of minister of industry and trade. Eugeniusz Kwiatkowski championed the idea of establishing ​​ the Central Industrial District (COP), including a defence industry hub. The COP was built in 1936-39. The district, located in south-central Poland, was home to over 5 million inhabitants. It significantly strengthened Poland’s economic potential at the time with the new Huta Stalowa Wola (HSW) steelworks, Stomil factory in Dębica, and aviation industry plants in Mielec. The construction of several power plants was also started, including in Czorsztyn and Łukawiec on the San River. The creation of the Central Industrial District was one of pre-war Poland’s largest

economic undertakings. This district can certainly be called the prototype of today’s Special Economic Zones and cluster initiatives encompassing research and development institutions and enterprises. Not all of the ambitious plans were implemented due to the outbreak of World War II. Still, the creation of the district was an extraordinary economic achievement. A total of 50 heavy industry and armaments plants were built, in which more than 110,000 jobs were created over a relatively short period of time. Thus, unemployment was significantly reduced. Kwiatkowski repeatedly emphasised that the country's development potential lay in the southern coal and metallurgical basin of Silesia and access to the Baltic Sea. The natural resources of these two regions were put to a good use, producing considerable economic growth. Kwiatkowski, as minister of industry and trade, championed the construction of the port of Gdynia in 1926-1930. The project was considered vital because the nearby port of Gdańsk (Danzig) had acquired free city status after World War I. Gdańsk was jointly administered by Poland and neighbouring Germany. In practice, this meant that German influence in the city was very strong and Poland’s use of port facilities proved problematic. Kwiatkowski secured funding for the construction of the port, thanks to which Gdynia quickly became one of the largest and most modern ports in the Baltic Sea as well as a thriving, modern city. The date considered to be the formal beginning of the Port of Gdynia is September 23, 1922, when Parliament passed a law whose Article 1 read: “The government is hereby authorised to make the necessary arrangements to carry out the construction of a seaport at Gdynia in Pomerania, as a public utility port.” The main designer of the port was Tadeusz Wenda who was also in charge of construction itself. On April 29, 1923, with the participation of President Stanisław Wojciechowski and Prime Minister Władysław Sikorski, the ceremonial opening of a provisional military harbour and fishing port took place in Gdynia. The opening of the port and its expansion, the second stage of which began in 1924, prompted Gdynia’s dynamic development. In 1926, the government awarded city status to Gdynia. At that time, Gdynia had 12,000 inhabitants, and its area was 14 square kilometres. In 1938, over 6,000 ships called at the Port of Gdynia, and over 9 million tonnes of bulk cargo were handled. At the outbreak of World War II, it was one of the largest and most modern ports in Europe, around which a city with more than 120,000 inhabitants had grown. It took just a decade to make


the Gdynia project a reality. Its geographical significance was compared to Amsterdam and Genoa. There are many definitions of maritime policy. Kwiatkowski focused on five elements, including adequately located and equipped port facilities, factors for expanding and organising Poland’s own commercial facilities, a trade mechanism geared toward boosting production and creating market

opportunities as well economic expansion implemented thanks to international trade agreements. Kwiatkowski thus wrote about the importance of Poland’s sea access in the book “Disproportions. A Thing About Past and Present Poland” published in 1931: “Each new metre of the developed coastline, each new crane, warehouse and retail outlet in Gdynia, each improvement, new ship, new factory, each bank, each new bond cementing Gdynia with Pomerania, the entire Pomerania province and the rest of the state, is a big achievement. It is a major state asset. This is where Poles learn how to conduct foreign trade in a practical way. Gdynia is the key toward Poland catching up with western societies. It opens up fresh vistas for cooperation with the whole wide world. Here finally, all differences of opinion and programmes are automatically harmonised.” As a deputy prime minister and minister of the treasury, Kwiatkowski was responsible for state tax policies. On October 16, 1938, Eugeniusz Kwiatkowski gave a speech marking the 20th anniversary of Poland regaining its independence. He emphasised that it was a good moment for celebration, but also for looking back and taking stock of what a reborn Poland had achieved. Kwiatkowski remarked: “We must make Poland so resilient and tough, so valuable and reliable as an ally and friend, and so powerful in defence terms, able to fight off an enemy, so economically and financially independent, so intrinsically uniform and homogeneous that each storm can be held back at its state borders.” After the outbreak of World War II, together with the rest of the Polish cabinet, Kwiatkowski crossed the border into Romania, where he was interned. After the war, he returned to Poland and became head of the Government Delegation for the Rehabilitation of the Coast and chairman of the Tri-City (Gdańsk, Gdynia, Sopot) Development Commission. He was also an MP between 1947 and 1952. Due to conflicts with the communist authorities, he was removed from office and ceased to be an MP. He moved to Kraków to work as an academic. He lectured on the economic history of the world at the College of Maritime Commerce in Gdynia and at the Jagiellonian University. He belonged to many learned societies and wrote articles for professional magazines. He died in Kraków on August 22, 1974. The funeral ceremony at the Rakowicki Cemetery was attended by the then Cardinal Karol Wojtyła, later to become Pope John Paul II. “The logic of this man’s life requires that prayer for his soul should come from the Wawel Cathedral,” he said in his address at the ceremony. • 10/2018  polish market



INDEPENDENCE ANNIVERSARY High-mountain climbing has become very popular in Poland. Just look at bookshop windows: you can see Rutkiewicz, Kukuczka, Bielecki and many other famous mountaineers. The same is the case with the Internet. The number of climbers, both professionals and amateurs, is on the rise. Every year there are more and more expeditions. Lots of public discussions are going on, many of them very heated and emotional. And this is typically Polish. Nowhere else does climbing stir up such strong emotions and attract so much interest. Polish people live and breathe the mountains, have written many glorious pages in mountaineering history, and want to climb. An expedition to scale some unconquered peaks in the Karakoram range in Pakistan, organised by the Polish Aline Club, took place May 18 – June 12. Its aim was to leave Polish marks on the maps of the range to celebrate the centenary of the rebirth of Poland as an independent state. Paweł Kułaga, President of Greygoose Outsourcing, the sponsor of the expedition, tells its story.

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onquering a few virgin peaks, discovering new routes in high mountains and giving them Polish names to mark the 100th anniversary of Polish independence was the idea of Bogusław Magrel, president of the Polish Alpine Club (Polski Klub Alpejski), an experienced mountain climber who had scaled three eight-thousanders and countless smaller mountains, and had been my climbing partner in the Tatra Mountains and the Alps for several years. The idea was certain to come off. After all, we are a climbing community, so we can commemorate important national events and anniversaries in our own way. It is important that we now have this ability. Thanks to Poland’s independence and its increasingly strong political and economic position, borders have opened for us and our wallets have grown big enough that even amateurs, just like us, can afford organising such expeditions using their private money.


Bogusław – in consultation with the well-known Pakistani mountaineer Karim Hayat, who has regularly partnered with many Polish expeditions, including the tragic one on Broad Peak in 2013 – proposed for exploration a region of northern Pakistan, a former Princely State of Hunza, which is extremely interesting for both mountaineering and sightseeing. It abounds in many unclimbed summits waiting (for us?) to be scaled. A team was quickly formed, made up of Bogusław Magrel (leader), Karim Hayat (guide), Rehmat Ullah Baig (guide), Monika SzławieniecReczuch, Anna Migdał, Dawid Plewczyński, Wiktor Jurasz, Tomasz Hełka, Jan Pecka, Sławomir Wiktor and me. The organiser was the Polish Alpine Club, while the main sponsor was my company, Greygoose Outsourcing. Several participants also had their own sponsors who financed, for example, part of their equipment. Qualifications? The least experienced person was myself. We all had some high-mountain history, but not as explorers. The participants came from all parts of Poland. Apart from our leader, who is a professional mountaineer, all of them were amateurs who have quite different occupations in their daily life - a lawyer (myself), physical education teacher, security guard, office worker, president of a district court - but all have been bitten by the mountaineering bug. Most of the participants have already been at around 5,000 metres, but on more accessible peaks, like Mount Kazbek in Georgia and Mont Blanc. But it takes only a few hours to get to Georgia by air, then one day to get to Stepantsminda, one day to the Kazbek base camp at the site of a former meteorological station and the next day you can already make a summit attempt and descend. You can do it all in one week. In the Karakoram, the mountain range

we chose to explore, you need to trek for four days and over 30 kilometres across virtually unknown terrain to reach the base of a mountain. The participants had been at high altitudes, but had never taken part in such a long expedition – one lasting a month. Despite our modest high-mountain experience, we decided that, although scaling a mountain which has already been climbed many times would probably be some achievement, we wanted to do something special: pioneer new routes to unclimbed peaks and give them names in honour of Poland’s independence. On our side, there was quite a lot of logistical preparations. They took several months: from the moment when the decision was taken to go on the expedition until May 18, when we left for Pakistan. The preparations involved collecting equipment and food, which always means expending a lot of work and money. On the other side, our Pakistani friends, Karim Hayat and Rehmat Ullah Baig, who were our guides, organised the whole caravan.


We flew to Islamabad on May 18, changing flights a few times, and then travelled to the village of Shimshal in off-road vehicles. There, with a group of 50 porters and donkeys, we started a fourday trek to the base camp at 4,300 metres. It is around 33 kilometres from the last “civilised place” - Shimshal, the highest settlement in Pakistan situated at an altitude of 3,000 metres – to our base camp. The distance may not seem long, people walk longer distances in one day at pilgrimages. But walking through mountains with heavy equipment and at high altitude is quite a different thing. An additional problem is acclimatisation. The human body is not adapted to altitudes above 3,000 metres and every several hundred metres above this level means a drop in the body’s functional capacity. At 5,500 metres and higher, the altitude where we operated, air contains less than 50% of oxygen than at the sea level. Breathing is more difficult and every activity is more tiring. When we were building our highest camp at an altitude of 4,900 metres even such activity as securing our tents with stones – you cannot use ordinary tent pegs in terrain with deep snow - was exhausting, despite the fact that we were in good physical condition. This also affects your sleep. The first nights at high altitude are very unpleasant for some people. There is also the risk of more serious complications, even death because of pulmonary or cerebral edema - the swelling of the lungs or brain. So we took a risk by moving more than 30 kilometres into the mountains where it is not possible to receive aid quickly. Luckily, there were no serious incidents apart from some dizziness, and sleeping and breathing problems lasting two or three days. 10/2018  polish market



It was largely thanks to well-organised logistics that all of us returned home safe and sound. What was our base camp composed of? There was a kitchen tent where meals were prepared, a mess where we ate and tents where we slept – one for two persons. The cooks and the porters who stayed at the base camp slept in the kitchen tent. They were warm there. From the base camp we climbed to a higher camp from where, after a few days of acclimatisation, we made a summit attempt. Later, we made a summit attempt on a second mountain from another camp. But the base camp was the place where we could rest, recuperate, use a makeshift toilet and take a shower, which meant pouring warm water from a bucket over oneself in a separate tent. All these “amenities” are unavailable in higher camps and this is probably the main challenge when staying in high mountains for three weeks. Of course, the sun may break through, you can warm up some water and even wash your hair, but the risk of catching a cold and being excluded from the expedition is too high. In camps at 4,900 metres we were on our own. First, we made an acclimatisation ascent to a rock formation at almost 5,400 metres. As it turned out, it had never been climbed before, so we called it Polish Massif and measured its altitude – 5,360 metres above sea level. After a few days we ascended Two Headed Massif

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(5,700 metres). The mountain had already been named, but never before summited. We returned to the base camp to rest and then went to another area and ascended another previously unclimbed peak. Its Chinese name is Lal Siran Katetkh Sar. At 5,465 metres, it is lower than the previous mountain, but technically more demanding. “Polish Independence 1918” is the name we gave to our route to this summit. And we called our previous route “Hunza Freedom” to honour our Pakistani guides from this hospitable region. It was not meant as any political manifestation, because we knew that they are not afraid to demonstrate their separate identity in Pakistan and this does not provoke any conflicts. And this is the essence when it comes to our virgin peak conquering: three previously unclimbed mountains over 5,000 metres high, first ascents, considerable technical difficulties. The reports will be published in mountaineering magazines, so no one will take away our title of pioneers in this area and the satisfaction with surviving in such difficult conditions. After all, for almost three weeks we were cut off from the rest of the world. We only had a satellite messenger, which enabled us to send some text messages, but they often broke off, so for three weeks contact with us was very limited. The weather conditions were very difficult during the first part of our expedition. We

Our stay in the mountains was the most important part of the expedition and took the longest time, but the journey through Pakistan on the way back was also very interesting. It turned out it was not so easy to book an air flight out of the region so we travelled by bus along the famous Karakoram Highway, which extends all the way from China

about it. However, it is worth doing so, because the embassy is able to help you if any problem arises. Incidentally, it is interesting to note that – as the mbassador told us – one of the first Europeans who explored the Princely State of Hunza at the end of the 19th century was Bronisław Grąbczewski, a Polish topographer, ethnographer and traveller serving in the Russian army. Our anniversary activity is not over. The Polish Alpine Club is now organising a second expedition to mark the 100th Anniversary of Polish Independence – to Sakhalin in September. I will not be taking part because I cannot afford spending another month outside Poland and outside work, but they are going to Sakhalin. There is a little-known peak on the island named after Bronisław Piłsudski, a brother of Józef Piłsudski, the leader of the restored Polish state. Bronisław was exiled to Sakhalin by Tsarist authorities. He had a bent for exploration and was the first to climb this mountain. Hence the name. The participants in the expedition are going to ascend the mountain to join in the independence anniversary celebrations.

to Islamabad. The road cuts across the highest mountains, winding at the edge of precipices, with the Indus river flowing below. These several hundred kilometres was a journey through different worlds, each of them deserving a story of its own: from the Hunza Valley, where people have a very open and friendly attitude to tourists and a largely Buddhist mindset and customs, through the Chilas region inhabited by Pashtuns, orthodox Muslim tribes, where we travelled escorted by a policeman with a Kalashnikov, to Islamabad, a city with European influences, but without any visible roots, created by administrative decision to become the country’s capital. However, our most important memory from Islamabad is our meeting with Poland’s Ambassador to Pakistan Mr. Piotr A. Opaliński. He received us very warmly, though not at the embassy because we arranged this meeting on the last day. He came to our hotel. The ambassador is an incredibly nice man. He had previously been posted in India and Bangladesh, and now supports Polish mountaineers in Pakistan. Quite a few of them turn up in the area. Andrzej Bargiel has recently made the first descent of K2, the world’s second highest mountain, on skis. Adam Bielecki and other professional and amateur climbers often operate in the region. Around 200 people come to Pakistan from Poland every year. Not all of them notify the embassy

We saw many more interesting peaks in Pakistan, either unclimbed mountains or mountains where new routes can be climbed and we could do so in coming years. We have become familiar with logistics in the area and met people who live there and are able to organise porters. We have seen first-hand that it is possible so we have set ourselves further goals. Our main goal for next year is a new route on Spantik whose summit is at 7,027 metres. What is so extraordinary in Hunza Valley for someone who has never been in such high mountains is that you can see there six-thousanders and seven-thousanders everywhere around you. I watched it on films and photographs, but did not expect it to be so massive and incredible. Certainly, there is a lot to do in the area. Polish expeditions have great prospects there and support from the embassy. Poles are liked and respected in the region for their previous mountaineering achievements. The highest mountain there is Rakaposhi (elevation: 7,787), a beautiful mountain, scaled by only three teams so far, including a Polish female expedition with the famous Polish mountaineer Anna Czerwińska in 1979. We are not going there yet, it is still too difficult for us. Maybe in the future? •

did not expect that snow would be falling there so often at the end of May and that it would be so cold. Our leader, who had visited this region before, remembered that temperatures may reach there 40 degrees Celsius at the end of May. In the valleys we wore only jackets, but at higher altitudes we encountered full-on winter conditions. Our guides did not expect that we would be walking across frozen rivers, either. The expedition was also very difficult in terms of endurance because every day we covered quite long horizontal and vertical distances, and we always carried around 10 kilogrammes on our backs.



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Joy, though not one that makes you want to jump. But you have a sense of a great effort made, and dangers overcome, like crevasses and icy cornices. And the place you craved for, the summit, may be smaller than one square metre and may not allow you to stay there for longer than a few seconds. But it is definitely a great experience. Perhaps even addictive – you want to experience it again. Euphoria is dangerous. Most of the accidents happen during descent. Everything has to be well-planned. You usually have to start a summit attempt before dawn, despite limited visibility, to have enough time for safe descent. The death toll in mountaineering is higher than in any other sport.

Photos: Paweł Kułaga



The Polish Alpine Club (PKA), a nationwide sports association officially

Greygoose Outsourcing Sp. z o.o.

established in 2000. Popularising mountaineering, organising expeditions to high mountains and propagating mountain culture are its main statutory goals. The Club has organised more than 200 expeditions to such mountain ranges on seven continents as the Himalaya, Tian Shan, Pamir Mountains, High Atlas, the Andes, Caucasus Mountains, Altai Mountains, the Alborz, Rwenzori Mountains, Japanese Alps, New Zealand’s Southern Alps and the Huangshan range in China. The PKA conducts intensive mountaineering training activity. The president of the Club is Bogusław Magrel while Denis Urubko is head of the technical training commission.

Greygoose Outsourcing is an external, professional HR department.



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Highest quality in manpower management, effective recruitment processes as well as care of payroll and legal formalities - these are the features that make us stand out. We specialise in supplying foreign professionals and production line workers to Polish production plants. Employees are the driving force behind every company - we find the best ones, improving business efficiency and reducing costs of our customers’ operations. Greygoose Outsourcing sets its clients free from problems with manpower allowing them to focus on strategic areas of activity.


PAWEŁ KUŁAGA, President of Greygoose Outsourcing Sp. z o.o., talks to Krystyna WoźniakTrzosek , Editorin-Chief of “Polish Market.”


DEMOGRAPHY Your company recruits employees from Eastern Europe and Asia to work in Polish manufacturing plants. The latest signals coming from the factories are increasingly alarming: almost all sectors report growing demand for labour and are unable to meet it. Does your practice confirm these signals? We provide services to large international companies which operate on the Polish market and manufacture or assemble various components, mainly for the automotive, household appliance, electronics and food-processing sectors. The shortages are really acute. In summer, the supply of workers from Ukraine is smaller, we work at full capacity, but still are unable to meet all expectations of our customers. PM

Do you render your services throughout Poland, or do you focus on a specific region? We operate throughout Poland. However, the orders we receive show that the western part of the country looks quite differently than the eastern part. Manufacturing activity is concentrated in the regions of Wielkopolska, Silesia, Pomerania and Mazovia while the eastern regions have a much smaller number of industrial plants. Today, however, calls for more workers are coming from all regions. PM


What is the biggest incentive for foreigners to take up a job in Poland? Is it only wages? 10/2018  polish market


HR Wages are in first place, as confirmed by employee surveys. Foreign workers certainly also appreciate Poland’s higher living standards, understood not only in personal terms – meaning that the money you have earned enable you to have a better life here, buy more and have a nicer apartment – but also in terms of how the state and society function, in general. The foreign workers can see that in Poland there is more concern for the common good. They believe that in Ukraine there is only corruption and nothing is done for the common good. In Poland they can see better roads and orderliness in the streets, for instance. So perhaps we, Poles, do not sufficiently appreciate how much has changed in our country over the past years. They can see it. Our economic indicators - like for example a recent drop in unemployment, the biggest in 25 years also make an impression on the Ukrainians. Changes are visible to the naked eye and they like it. The Ukrainian people I meet also like it that we care about history and national identity. And they especially like it that in many cases their friends and even family are also already in Poland. It is also essential that they can work in Poland legally while the West has not yet fully opened to them. Poland offers them special arrangements, which are also intended for several other nations, although workers from Belarus or Moldova do not come to Poland in such great numbers. It is good that our government has been expanding these opportunities. More regulations have been adopted to make things easier and the government is thinking about opening to countries from other regions of the world. There is talk about Filipino and Vietnamese people while workers from India, Nepal and Bangladesh are already present on our market. This trend will be developing in the future. Are you, at your company, thinking about expanding your operations to more countries, or perhaps Ukraine has enough workers who will still be interested in taking up jobs in Poland for a long time to come? A year or two ago it was easier to acquire workers in Ukraine than it is now, but the labour resources are still large. However, considering that some sectors have a particularly acute shortage of skilled workers, we have already started to recruit seamstresses, upholsterers and welders in the Far East. I am soon going to the region myself to supervise the launch of our daughter companies in these countries. And I think this region offers great prospects for the future, but recruitment from Ukraine will not end any time soon. One reason why Ukrainians will be coming to us is that they are increasingly settling in our PM

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country for good. Some of them will probably be seeking Polish citizenship. They are able to bring their families to Poland, the distance is small and it is easy to communicate. Does that mean that we will have to bring foreigners to work in Poland for many years to come? Yes, because this is determined by our demographic conditions. You cannot cheat demography. It is impossible to change this in a short period of time. We have a very low population increase and we will have to rely on immigrants. PM

What is more, our population is aging fast so your company will have a lot to do. I can say that we are the leader on the Polish market at present. We recruit from Ukraine and employ in Poland around 1,000 people a month. These people come to work for projects we handle, or replace workers returning to Ukraine. PM

How are you finding these workers in Ukraine? We have our daughter company in Ukraine, headquartered in Kiev and with offices in Rivne and Lviv in the west of the country, Poltava in the east, Dnipro and Vinnytsia in the south and in the seaport of Mykolaiv. What we can be proud of is not only the number of people we recruit, although this number is now higher than ever, but the standards of our services. We decided at the very beginning that we would not be taking any money from candidates for jobs and we have been consistently sticking to this rule. Most Ukrainians look for jobs in Poland either on their own, or with the help of their acquaintances, or using services of some small unregistered agencies which derive their income from fees collected from the job-seekers. Which means the agencies first collect the money and then send workers to Poland. Sometimes the job does not really exist, or the conditions offered are quite different from those promised. The agency has already earned its money and does not care what happens workers. In contrast, we do not collect any money from them, either in Ukraine or Poland. We present them the real job and its conditions and we are paid by our customers – factories where the people work. PM

Does it mean the customers tell you: “Recruit for us a specific number of people and we will pay you”? There are two main models. One is outsourcing, which means we recruit the people, bring them to Poland by our buses, employ them in our Polish company – a temporary work agency – and post them to factories. They work there under our supervision - because PM

WE TAKE FULL RESPONSIBILITY FOR THE WORKERS AND THIS IS THE BASIC MODEL FOR US. we have our coordinators in the factories who tell them what to do - and we pay their wages. At the beginning of the month, we and the customer calculate the number of hours worked by our personnel, multiply it by the agreed rate and obtain the amount for which we invoice the customer. We transfer really high amounts of money to the tax office and the Social Insurance Institution so we do not deprive Polish society of benefits of this work. We conduct recruitment for posts where Polish workers are usually either not available because they have left for jobs in the West, where they can also earn several times more than in their homeland, or the factory is located in a small town where all local people are already employed, but production is expanding so fast that more and more workers are needed. And this is when our workers come. We take care of all staff matters. We also arrange lodging for the workers, and sign agreements with hotels and private homes where we accommodate them. We provide a complete service: examine the needs of the customer, recruit and select workers according to the needs, bring workers to Poland by our buses, employ them under our employment contracts, ensure healthcare services and pay them the money they have earned. When their documents expire we try to have their visas extended. We take full responsibility for the workers and this is the basic model for us. We handle most of our orders in this way. The second model is personal selection. In this case, the customer orders us: “Find us people with such and such a profile.” We find the workers, often prepare the documents that the customer needs to legalise their stay and work in Poland, and the customer pays us a single fee per each person employed. If we define a free market in Europe as a free movement of capital, goods, services and people, then we are part of this market – with the adjective “ • fair”.

TADEUSZ KOŚCIŃSKI, Undersecretary of State, Ministry of Entrepreneurship and Technology



he Polish economy is doing increasingly well and what is even more important, it is growing in a sustainable manner. The GDP in the 2nd quarter of 2018 was higher by 5.1% year-onyear against 4.0% in the corresponding quarter of 2017. Moody's has recently revised upward its forecast for Polish GDP growth this year to 5 percent. The very recent promotion of Poland to developed market status by FTSE Russell marks a symbolic moment when Poland has become the first country from Central and Eastern Europe to be ranked a "developed market". Poland has never been in a better position to participate in global business and develop more intensified trade relations worldwide. However, very few companies have any export activity in Poland. The number is far below the European

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average. In fact, most of them rely on one or two partners from the EU. This means that we strongly rely on the economic condition of the European countries. Acknowledging the crucial importance of export as an engine of the Polish economy we have made it one of the five pillars of our Government Strategy for Responsible Development – a key document in the field of economic policy. Polish companies need to increasingly engage in foreign expansion including to remote and more demanding destinations. For entrepreneurs, export activity is a chance to innovate, invest, employ new staff and increase revenue. For the Polish economy it is a chance to develop local companies and let small ones become medium ones, and medium ones become large ones. That is why we have to double the number of Polish

companies engaged in selling abroad – and this is the most challenging task for us. Our export strategy assumes doubling the export volume by 2030. The Polish stake in the global trade will increase from 1.24% in 2016 to 2% in 2030. Therefore, the key feature of our Polish export support programmes, whether they are domestic or EU-funded, is to address SME companies at two critical stages of their international expansion: at the starting point and first engagement and when they need to expand to more difficult and distant, but profitable markets. To achieve this we set strategic priorities. We have to increase trade with non-promising European markets from 15% now to 25% in 2030. We started the first basic reform of our export support institutions in early 2017. The former Polish Agency for Information and Foreign Investment was transformed into the Polish Investment and Trade Agency. Instead of ineffective and expensive diplomatic units for trade and investment promotion, mainly in European countries, we are creating a new network of trade offices with commercial and pro-business approach, concentrated not on diplomatic meetings and cocktails, but on direct support for Polish entrepreneurs. New units are located mostly outside of EU, in the most promising and dynamic countries, where Polish companies need the most support. And they work in line with our target to promote Polish brands and increase trade with the fastest growing economies. We have opened 52 new trade offices, among which ten are located in Asia. It is necessary to consolidate the activity in perspective markets – Asia, Africa and America. They often record much higher indicators of GDP growth and trade flows (including imports) than the European markets and have an untapped potential of internal demand. Another equally important goal is to modernise the export offer of the Polish companies as a necessary step towards more profitable links within global value chains. We have to double exports of hi-tech products to increase the value of our export. For this reason we have selected twelve priority strategic industries with a high market potential on a global basis. To make it happen, we have also, inter alia, integrated the export policy with other policies more strictly, in particular with the policy of innovativeness and creative industries, while taking into account the requirements of environmental protection and the environment-friendly design of products and services. The computer games industry, which is our export gem, serves as a good example of a success story in this area. In the longer term, the competitiveness of Polish products on international markets will be dependent not only on their price, but above all on their technological advancement. The increased innovativeness of our products should simultaneously trigger the movement of Polish producers towards more valuable (more profitable) links within the global value chains These are the targets of our export support programmes, which promote the twelve export priority industries mainly in the non-EU markets, support SMEs in promoting and reaching new counterparts, and providing them with professional

advice in drafting their individual foreign expansion strategies. These are the foundations of the institutional framework of export support, but we have to go a lot further. Our project needs to engage a lot of partners from the market: entrepreneurs and their representatives (e.g. chambers of commerce), local authorities, universities, banks, e-commerce operators, media etc. One of the obstacles in engaging new entrepreneurs in export activities is that the Polish internal market alone is big enough for them to exist and stay profitable. The Polish economy is dominated by micro and small companies which tend to take advantage of domestic demand without the need to venture abroad. We have to overcome this short-sighted approach by presenting benefits of export and, on the other hand, many threats that face companies which continue to deal only with existing business partners. Communication, motivation, education and giving good examples of success is crucial to encourage Polish companies to go abroad. Many of our export support programmes address this issue directly. Other necessary actions cover practical help in establishing links between Polish companies and their potential foreign partners. Trade offices of the Polish Investment and Trade Agency play a key role in this process, but we are going much deeper. We are exploring match-making possibilities created by the e-commerce world, encourage our companies to take part in international institutions’ public procurement programmes (e.g. launched by the United Nations, NATO, World Bank etc.) We organise inbound missions for foreign companies and we hold frequent business forums for different industries and countries. We also have an extensive programme to help our entrepreneurs to take part in foreign trade shows by covering a part of their expenses. One more area I would like to mention is securing necessary funding for export activities. The Polish banking sector needs to develop to properly support foreign expansion. We want to come to a point when no exporter or potential exporter gives up because of funding or liquidity problems. The work is to be done by public banks and export insurance companies and also by private institutions. The instruments should cover export financing, pro-export investments, working capital instruments, transaction processing, credit insurance, transaction risk products etc. Products and processes are often very complex which is the reason why micro and small enterprises are often excluded from many services. The scope of our activities is much broader, as a lot of factors contribute to the achievement of our basic target of doubling the number of Polish exporters. We are continuously learning when we implement new projects, work arm in arm with entrepreneurs and observe results. The first observations are very promising – our export is growing at the desired pace, key industries keep their dynamics. We have very positive feedback from business. We are on the best track to utilise the potential of our economy, geographical location and skills of our entrepreneurs. We have enjoyed a trade surplus for last two years – which had not happened for thirty years. The world is full of threats that surround us but we have to do our job – and we are going forward. • 10/2018 polish market



OPPORTUNITIES FOR CLOSER AND MORE FRUITFUL COOPERATION On the occasion of Poland’s participation in the first China International Import Expo in Shanghai, HE Wojciech Zajączkowski Polish Ambassador to China has written the following message to the organisers, participants and Polish Market readers. Ladies and Gentelmen, Poland and China have never been so close partners as in the recent years. The most visible evidence of that are contacts between the leaders of our two countries: a visit paid by President Andrzej Duda to China in November 2015 and President Xi Jinping’s visit to Poland in June 2016, which brought several important outcomes, including the establishment of the comprehensive strategic partnership. During last decades Poland and China shared a similar experience – very fast and dynamic development accompanying a deep transformation of their economies. This phenomenon established a strong foundation for bilateral economic cooperation. Today Poland is among the most successful economies in the world. Since 1992 it has recorded exclusively a positive GDP growth, with no single year with recession. The uniqueness and success of economic reforms combined with entrepreneurship spirit and hard work of Polish citizens have transformed Poland into one of the of the best places to do business and one of the most attractive countries to live in. Our achievements inspire us to think of new ambitious objectives. We are determined to ensure a stable increase in the competitiveness of the Polish economy on the basis of new development factors. It is maybe the most important goal laid down by the Strategy for Responsible Development, a document adopted by the Polish government in 2017 which defined objectives for the economic and

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social development and modernization programmes to be implemented within a multiannual perspective. An integral part of the strategy is emphasis put on new growth factors such as the growing role of the knowledge and technologies in economic processes, digitization, organizational excellence as well enhanced operational quality of institutions. It offers a lot of incentives and opportunities for improvement of economic cooperation between Poland and China, especially in trade. In this sphere both countries are important partners each to other. China is Poland’s biggest trade partner in Asia whereas Poland is China’s largest partner in Central and Eastern Europe. This economic exchange brings a lot of benefits to both sides, nevertheless it requires an effort to make it more balanced and harmonious. First China International Import Expo in Shanghai (CIIE) is a right step in this direction. More than 80 Polish companies, endorsed by the Polish Investment and Trade Agency, have decided to take part in this event to demonstrate their production and business opportunities. It means that Poland belongs to the group of the best represented countries taking part in the exhibition. We hope that through Poland’s participation in China International Import Expo in Shanghai, Chinese importers and consumers will become aware of the wide array of outstanding products Poland has to offer – products that are renowned for their quality in international markets. I would like to invite and encourage Chinese companies and citizens to visit the Polish National Pavilion as well as the booths of Polish companies at the China International Import Expo in Shanghai. We are looking forward to opportunities for closer and fruitful cooperation that would contribute to the enhancement of Poland-China economic relations. Wojciech Zajączkowski Ambassador Extraordinary and Plenipotentiary of the Republic of Poland to the People's Republic of China


NEW PLATFORM, NEW OPPORTUNITIES The following is a message from HE China's Ambassador to Poland Liu Guangyuan. THE FIRST CHINA INTERNATIONAL IMPORT EXPO IS A MAJOR EFFORT TO FURTHER OPEN UP TO THE WORLD. In November 2018, China will host the first China International Import Expo (CIIE) in Shanghai, which embodies her major effort to further open up to the world and her strong support for economic globalization. It is especially noteworthy that China, as a developing country, is organizing an event that is entirely focused on imports. It will be a unique opportunity for all participating countries to explore business bonds in China and extend new cooperation, which we firmly believe will play an active role in promoting global trade and stimulating common development. Poland, as China’s major partner in CEE region as well as strong promoter of export to China, will play an important role during this Expo. China warmly welcomes Polish business’ participation and hopes that this event will serve as a good opportunity for Polish companies to introduce their highquality products and services to the Chinese market and build up their brand in China as well as in the world.

CHINA-POLAND ECONOMIC COOPERATION KEEPS BRINGING FRUIT As the biggest economy in CEE countries and important EU member, Poland is one of the first European countries to join the Belt and Road Initiative, one of the founding members of Asian Infrastructure Investment Bank and active participant in the “16+1” framework.

Between 2015-2016, our presidents exchanged visits within half a year. China and Poland established Comprehensive Strategic Partnership. By seizing opportunities from the Belt and Road Initiative and “16+1” format we actively promote practical cooperation for our peoples’ wellbeing. Over the past years, our cooperation has made strides in many areas such as trade, investment, finance and connectivity. For example: Last year, 741 China Railway Express trains passed through or arrived in Poland and Chinese container shipping company Cosco launched its new shipping line to Gdansk. At the same time, there are seven direct flights per week between Warsaw and Beijing operated by LOT and Air China. A number of Chinese banks have set up branches in Poland, funding more than US$ 2 billion to Polish economy. At the same time, there are more and more facilitation initiatives which promote bilateral cooperation in finance, trade and personnel exchanges areas. The nature of cooperation between China and Poland is based on mutual benefits. Speaking about Poland, first of all interconnections underline Poland’s superior geographical location, and strengthen her role as a hub connecting East and West. Secondly, China-Poland trade helps consolidate and enhance Poland’s industrial competitiveness in the EU, maintain her status as a manufacturing center. Thirdly, Chinese-funded enterprises in Poland support innovative R&D projects and focus on talents training. According to (incomplete yet) statistics, Chinese

investors have created more than 20,000 jobs in Poland, with local employment rate over 95%. Liugong, Huawei, Hongbo, TCL and other Chinese companies have set up R&D centers or joint research centers, bringing to Poland advanced technology and high-quality jobs.

NEW OPPORTUNITIES WE EMBRACE FOR DEEPER CHINA-POLAND COOPERATION This year marks the 40th anniversary of China's Reform and Opening-up Policy. Poland will celebrate the centennial of regaining independence. Both China and Poland are at a key stage of development. Forty years ago, China's GDP was US$175 billion. Today, it is more than US$12 trillion, an increase of 68 times. China today is the world's second-largest economy, largest manufacturing economy, largest holder of foreign exchange reserves. In recent years, China's economy has been growing at an average annual rate of 7.1%, contributing more than 30% to the global economic growth. As China attaches great importance to expanding cooperation, the Belt and Road Initiative, whose main goal is to promote winwin cooperation between its participants, has been proposed. Meanwhile, China encourages business startups and innovation by developing emerging industries such as big data, cloud computing, artificial intelligence, clean energy and bio-medicine, creating new business models such as sharing economy and digital economy, and upgrading traditional manufacturing sector and service sector. • 10/2018  polish market


POLAND-CHINA TRADE AND INVESTMENT COOPERATION The following report on bilateral economic relations between Poland and China was compiled by the Ministry of Entrepreneurship and Technology.

TRADE • After a slowdown in bilateral trade between Poland and China in the years 2015-2016 we can now observe a constant upward trend. In 2017 trade turnover compared to the previous year grew by almost 13%. In the first seven months

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of 2018 it reached more than 18 million US dollars, up by 15 percent year-on-year. China is ranked second among Poland’s trading partners. However, it is at the same time only the 21st export destination. In 2017 Polish import from China was almost 12 times larger than export. In consequence, Poland’s trade deficit with China grew to over USD 24.7 billion. On the list

of countries with which Poland has the largest trade deficit, China is ranked first. According to 2017 data major exports from Poland to China are: copper cathodes (USD 589 million – 25.6% of total export), parts of non-wood furniture (USD 46 million), styrene-butadiene rubber (USD 39 million), power converters (USD 35 million), clothes dryers (USD 33 million), whey (USD 27.5 million) and wooden furniture (USD 25.7 million). The same data shows that major imports from China to Poland are: parts for cameras, telephones, laptops and notebooks, video game consoles and other devices. Polish government is willing to solve the trade deficit problem by increasing Polish exports to China. More than 80 Polish companies from various sectors will participate in the China International Import Expo fair in Shanghai. It will be one of the largest business delegations present at CIIE. Promising areas of export cooperation with China are: agri-food products, green technologies and services, mining equipment, furniture, cosmetics, products of creative industries (incl. video games, interior design). The Polish government has introduced numerous export support programmes for Polish exporters interested in the Chinese market: • Go China – run by the Polish Investment and Trade Agency (PAIH) • Go Brand – sectoral export promotion programmes covering sectors of machinery and equipment, biotechnology, pharmaceuticals, food products, fashion and furniture – participation in trade events and purchasing consulting services. • General promotion programme (de minimis) for SMEs. In the next few years the Polish government is planning to explore and use business opportunities for Polish companies that exist in trade and investment relations with carefully selected western and central provinces of China, as well as in China's constantly growing e-commerce market. Poland is also a natural location for a railway hub, servicing freight flows between China and Europe. This country offers a favourable geographical location – at the intersection of

transport corridors, with the great potential to build a network of intermodal connections to Central Europe, Scandinavia and a large part of Germany. Poland also offers low labour costs, as well as developed logistics and storage infrastructure. The Polish logistics sector is well developed and Polish companies have the experience with the ChinaEU transport market, including experience of cooperation with partners from Germany, Belarus and Russia.

INVESTMENT COOPERATION CHINESE INVESTMENT IN POLAND According to National Bank of Poland data, the total Chinese direct investment inward position in Poland at the end of 2016 was USD 482 million (incl.: Mainland China, Hong Kong and Macau). According to different sources it may have reached even USD 1 billion. According to Statistics Poland data, at the end of 2016 there were 756 companies with Chinese capital operating in Poland, of which the majority (648) employed up to 9 people. 13 Chinese companies invested in Poland more than USD 1 million. Sectors where Chinese investors are present: electronics industry, engineering industry, packaging industry, sports equipment, logistics, aviation, BSS-SSC, financial services (and others.)

POLISH INVESTMENT IN CHINA According to National Bank of Poland data, the total Polish direct investment in China inward position at the end of 2016 was EUR 81 million. Sectors where Polish investors are present: engineering industry incl. mining equipment, chemical industry, aviation (and others.) The majority of Polish companies operate in China through a joint venture with a local partner. •

Poland-China Trade Relationship 2014–2017 (in USD m)





DYNAMICS 2016/2015

DYNAMICS 2017/2016


25 752,8

24 842

25 919,6

29 331




2 250,6

2 016,9

1 912,2





23 502,2

22 825,1

24 007,4

27 026




-21 251,5

-20 808,2

-22 095,1

-24 721




10/2018 polish market


MORE POLISH FOODSTUFFS FOR CHINA How to boost Polish food exports to the world’s largest consumer market in the most effective way? “Polish Market” talks to PIOTR SERAFIN, Director General of the National Support Centre for Agriculture about the organisation’s strategy in this respect. For several years the expansion of exports, especially outside the euro area, has had a strategic importance in stimulating Poland’s economic growth, giving rise to government programmes targeted at specific markets. One example is the Go China programme, which is additionally motivated by our trade gap with China. Has the Chinese economy become more open after the announcement of the New Silk Road initiative by China? Has the Polish side, in particular, been granted permission to export to China, something which has been a barrier limiting our initiatives? Polish businesses have started to take an interest in expansion onto more distant markets, including Asian ones, such as China, in the face of market saturation in European Union countries and in order to diversify Polish exports geographically as most of the exports have so far gone to the markets of our neighbours. And, as past experience shows, such a situation is risky in the case of crises and bans, like for example the Russian embargo on Polish goods. When it comes to China, there is a large potential for two-way trade. Trade statistics indicate that so far China has exploited this potential better than Poland, which is reflected in its EUR133 million trade deficit with China in 2017. But Polish firms are also very successfully selling their products on the Chinese market. It is worth pointing, in particular, to the sectors offering dairy products, breakfast products and sweets. There are also huge prospects for the meat industry, especially the poultry segment, which has just regained access to the Chinese market after the ban imposed in connection with avian flu. The beef and pork segments also have a significant potential for exports expansion. However, they still have to wait for the opening of the Chinese market. Polish apples are building their position on the Chinese market as well. And there is PM

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something to compete for. China is the world’s biggest market of 1.4 billion consumers, with a rapidly expanding middle class eager to buy imported food. In an effort to ensure food security to its population, China is not only increasing its own food production, but also opening up to food imports from other countries. According to Chinese Premier Li Keqiang, China is going to raise its imports of agricultural products from Central and Eastern European countries. One reason behind the decision is the recently imposed two-way sanctions in trade

between the United States and China. Polish exporters may take advantage of this situation. The Polish government has taken a number of measures to support Polish firms in their foreign expansion. These include Go China, a multi-sectoral programme carried out by the Polish Investment and Trade Agency (PAIH). The National Support Centre for Agriculture (KOWR) also offers a wide range of activities supporting agricultural and food exports to the Chinese market. One can find information about it on KOWR’s website.

CHINA IS GRADUALLY OPENING TO POLISH AGRICULTURAL AND FOOD PRODUCTS. The New Silk Road initiative, also called Belt and Road Initiative, announced by President of China Xi Jinping in 2013, is indeed an impressive undertaking, involving multi-million Chinese investment projects. The aim of the initiative is to expand trade connections, in particular maritime and rail infrastructure in the 70 countries situated along the trade routes from China to Asian, European and African countries. Trade statistics do not indicate yet any significant increase in Polish agricultural and food exports to China after 2013, but it is a long-term initiative and we will be able to assess its results only in the future. The rail connections linking China with European countries, including Poland, developed under this initiative may be a chance for European food producers to gain an advantage over their main rivals in the world. The two-week-long transport of food by rail from Poland to China would be comparable with the time needed to deliver goods to China by ships from Australia and New Zealand and much shorter than the time of delivery by ships from North America and South America, being respectively five to six weeks and five weeks. It should be noted that, because of the Russian embargo, which includes rail transit, the transport of Polish agricultural and food products to China via Russia is not possible at present. However, it is possible to use intermodal transport by land and sea. The rail connection which is now being modernised and put into operation along the trans-Caspian route, may be an attractive alternative for European food exports to China. China is gradually opening to Polish agricultural and food products. In the case of products where there are restrictions on access, such as fresh fruit and vegetables, and animal products, each decision to open the market is preceded by a several-year-long negotiation process. In recent years an opportunity has opened up for the export of Polish poultry and chicks to China. According to information released on September 25 by Chief Veterinarian, it is already possible to export poultry to China after the ban imposed in connection with avian flu has been removed and the work on updating veterinary certificates has been completed. It is also worth mentioning that fresh apple exports from Poland to China have been allowed since November 2016. High-quality agricultural and food products are one of our biggest advantages in exports. What has been their place in Poland’s overall exports to China so far? Polish food exports to the Chinese market are composed mainly of high-quality brand-name products made by Polish producers complying with European Union and national food production standards. It should be noted that China is a producer of cheap mass-produced food needed to meet its internal demand. The quality of the food is not always good, as is proven by regularly uncovered irregularities and food scandals. As a result, demand has emerged in China for imported food of proven quality. Chinese consumers are ready to pay more for imported food than for Chinese-made food because they are sure they are buying healthy, tasty and safe products. As the lifestyle of residents of Chinese cities and metropolises has changed, there is also demand for organic products, including products with health benefits, called superfoods, as well as premium and luxury products sold in smaller quantities, often as gifts, PM

which have very high quality, are innovative and stand out with their attractive packaging. Polish exporters have responded to this demand and deliver to China natural and healthy food produced in Poland’s clean environment, with the use of small amounts of fertilisers and chemical additives, and often made according to traditional recipes. Thanks to the modern machines and Polish know-how, coupled with high food quality and safety standards, Polish products exported to China find buyers and are highly valued by Chinese consumers. What actions need to be taken for Polish agricultural and food products to fulfil the specific requirements of the Chinese market? Are we able to fulfil these requirements? Polish exports have to meet the requirements defined by the Chinese side for individual product groups. The requirements mainly concern the production method, permissible amounts of some substances contained in the product and so on. The requirements differ depending on the product. Polish businesses interested in exporting to China should find out about these requirements early enough before taking the decision to export. In the case of some product groups where special export procedures are involved, like animal products and apples, the exporter should take care to obtain approval for exports to the Chinese market. The procedures are time-consuming, but of course it is possible to complete them. In the case of apples, for instance, the requirements do not apply only to the fruit itself, but also the supervision of the phytosanitary state of the orchards and their protection against pathogens, pests and weeds, which reduce crops throughout the plants’ vegetation cycle. This means the need to adjust production at an early stage to meet the requirements of the Chinese market. In the case of other products, these requirements may be much lower and similar to other countries’ import requirements. Generally speaking, thanks to the changes which took place in Polish agriculture after our accession to the European Union, Polish food producers are well prepared for entry onto the Chinese market. Unfortunately, as a country, Poland is little known in China and not many Polish products are visible in shops. It would be a good practice for Polish firms interested in exporting to the Chinese market to join forces in their effort to win a share in the market by establishing exporter groups. This would enable them not only to reduce transport costs, fulfil larger orders and ensure the continuity of deliveries, but also to improve their visibility on the market through joint marketing activities. They could, for example, arrange to have a common shelf with Polish products in shops. The National Support Centre for Agriculture undertakes activities designed to create a positive image of Polish food and support the development of trade with China under the single slogan: “Poland Tastes Good.” KOWR organises trade missions for Polish businesses, combined with the presence of Polish stands at the largest agricultural and trade fairs in China, such as Sial China in Shanghai and Anufood in Beijing. In addition, KOWR organises missions to Poland for Chinese importers and journalists, acts as a go-between helping businesses establish trade relations, and conducts campaigns designed to inform Polish firms about • business conditions on the Chinese market. PM

10/2018 polish market


It’s always a good tIme to vIsIt Poland Spring, summer, autumn or winter - with its wide sandy beaches, mountain resorts, numerous lakes and cities immersed in rich history, Poland offers visitors a vast range of possibilities. Regardless of the season‌


A STRENGTH OF EUROPEAN SEA For centuries maritime ports have been a strategic source of income for the countries where they have been constructed. It is the ports that have given rise to the world’s economic superpowers. So it comes as no surprise that competition for customers goes on. It will be won by those who manage to find the quickest route to the customer. The Port of Gdansk is a favourite in this battle among European players.


aving a modern port is only half the battle these days. To be able to compete on the global market you also need to have appropriate additional facilities, including modern suprastructure: warehouses, storage depots, roads and railway infrastructure. Of no small importance are also inland water transport and pipeline systems – anything that quickly and conveniently connects the port to the interior of the country. This is why the expansion of transport chains is a priority for the Port of Gdansk Authority. “A result of our two years’ work is a record increase in cargo handling operations,” says President of the Port of Gdansk Authority Łukasz Greinke. “Importantly, the projects we have carried out so far are only designed to end the years of investment neglect while the newly planned projects will help us double our revenue in the coming five to seven years.” In the first half of 2018, the volume of cargo handled by the Port of Gdansk reached a historically high level - it was 35% higher than a year earlier. The Port of Gdansk Authority hopes that after the expansion of infrastructure it will be possible to break the barrier of 100 million tonnes of goods handled annually. One of the investment priorities of the Port of Gdansk Authority is to expand the road and rail network connecting the city with the interior of the country. Work is now underway to complete the construction of motorways and expressways throughout Poland.

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“These investment projects will ensure to the Port of Gdansk swift connections with countries in our immediate backyard and, consequently, will increase the volume of cargo handled and will strengthen our position in the Baltic Sea. Our neighbouring markets, such as Belarus, Lithuania and Ukraine, have 100 million consumers. So there is something to compete for,” says President of the Port of Gdansk Authority Łukasz Greinke. The regulation of Poland’s largest river, the Vistula, will also have a major impact on the volume of cargo handled at the Port of Gdańsk. Thanks to making the river navigable, the coastal region of Pomerania will gain access to three important trunk waterways: E30, which will link the Baltic Sea with the Danube, E-40, linking the Baltic and the Black Sea, and E70, which will run from Antwerp to Klaipeda. The Port of Gdansk Authority does not limit itself to investing in the port’s suprastructure, but is carrying out projects on the site of the Port of Gdansk itself as well. The Authority has signed a set of contracts, worth almost PLN600 million, with construction companies for the implementation of projects partially funded by the European Union. “The projects are for the modernisation of around 6 kilometres of quays. We are also modernising virtually the whole fairway. The channel will be deepened so that it can accommodate even larger commercial vessels,” says Port of Gdansk Authority Vice-President for Infrastructure Marcin Osowski. “The second investment project carried out under the Connecting Europe Facility (CEF) involves

Photo: ZMPG S.A/ Natalia Katarzyna Stokowska


Photo: ZMPG S.A/ Tomasz Jastrzębowski


expanding the road and railway system and improving access to terminals in the deep-water part of the Port. We are going to complete the two projects in 2020.” The Port of Gdansk Authority is also preparing two huge projects which will completely change the Port’s appearance. The first one is the construction of a Central Port, one of the largest and most innovative projects in the history of European ports. The modern Central Port, covering more than 500 hectares and provided with specialist terminals for handling general and bulk cargo, will have a handling capacity of over 100 million tonnes annually. The opportunities offered by this project have attracted the interest of Chinese Ambassador to Poland Liu Guangyuan. The second project is the North Quay where motor vehicles, railway wagons and other rolling stock are to be handled. The two projects are a response to an increasingly fast expansion of international goods trade and the undoubtedly growing role which the Port of Gdansk plays in it, especially when it comes to serving the Central and Eastern European market. The Port of Gdansk is a corridor for the transport of goods from the Far East, especially China. Cooperation between China and Gdansk has continued uninterruptedly for more than 15 years. Ningbo, Qingdao and Guangzhou - successive Chinese ports are joining the group of partners. It comes as no surprise because the port of Gdansk is a gateway to European markets for Asia. It has direct and regular transoceanic connections with the Far East. The Port of Gdansk is one of the cheapest transport corridors to Europe in the world. At present, the Port of Gdansk is serviced by two lines: Maersk Line and Ocean Alliance. Gdansk’s favourable location in the heart of Europe is not the only reason why its cooperation with Chinese partners is gaining momentum. The Port of Gdansk has modern infrastructure – it is the only

Baltic port able to accommodate the world’s biggest container vessels with a capacity of over 21,500 TEU. “We have regular transoceanic connections with Chinese ports,” says Chief Marketing Officer at the Port of Gdansk Authority Patryk Felmet. “We have an increasingly important position on Asian markets and more and more of local businesses are becoming convinced that the Port of Gdansk is not only faster, but also cheaper when it comes to goods handling than, say, German ports.” To make its partnership with China even closer, the Port of Gdansk Authority has opened in Shanghai its own office, from which further projects are coordinated. Such companies as China Merchants, Cosco, China Communications Construction Company, ZMPC, Steel Searchers and many others are interested in the opportunities offered by the Port of Gdansk. “We have here our own worker who excellently knows the needs and requirements of the Chinese market,” says Patryk Felmet. “We want to encourage the Chinese to redirect their cargo to the Port of Gdansk because it is simply profitable for them. Apart from that, we are in the process of implementing huge investment projects. The biggest of them, the Central Port, is still ahead of us. We would like to find partners to carry out these plans.” The Port of Gdansk is becoming a key point on the logistics map for the Asian market and has a regular presence at the largest trade fairs in Shenzen, Shanghai and Hong Kong. •

Contact our office in Shanghai: e-mail: Mateusz.Dawidowski@portgdansk.pl tel.: +86 182 1742 6960 10/2018  polish market





The Pomeranian Special Economic Zone (PSEZ) has issued the first investment support decision in Poland under a new law on supporting investment and conditions for receiving state aid. The recipient of the decision is the Plastica company. Based in Kujawsko-Pomorskie province, it is a member of Toruńskie Zakłady Materiałów Opatrunkowych (TZMO) Group, which produces hygiene and medical products.


he law which changed the rules for the operation of special economic zones and removed their boundaries came into force on June 30, 2018. Its main rule is that income tax exemptions available for a period of 10 to 15 years do not depend on the place where the investment is made. The new investment support system brought about crucial solutions, like for example the expansion of special economic zones from 0.08% of Poland’ territory to almost the whole country. It also introduced different criteria for grating aid, depending on the quality of investment, the economic situation of the region, and its strategic needs, in keeping with the principle of sustainable development. A recently issued decision permitting Plastica to operate in the Pomeranian Special Economic Zone and thus partially exempting the investor from income tax for 15 years is the first decision issued under the new law. The Plastica company, based in Frydrychowo in Golub-Dobrzyń county, promised to invest PLN82 million and employ ten new workers. The company is going to raise the production capacity of its plant in Frydrychowo, which makes hygiene and medical products. “I am very glad that two weeks after secondary legislation for the law on supporting investment became effective we already have the first beneficiary of these changes and further decisions in other zones are being finalised,” said Minister of Entrepreneurship and Technology Jadwiga Emilewicz. “This shows

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just how much the new system for supporting investment was needed and awaited by businesses. Importantly, we have designed the new rules in such a way that Polish businesses can benefit from them to a greater extent. And the results are already there. The first beneficiary of support under the new rules is Plastica, a Polish company being part of Toruńskie Zakłady Materiałów Opatrunkowych Group, which has successfully operated for more than 65 years. What adds to my satisfaction is that the investment is innovative in character and involves one of the strategic sectors indicated in the Strategy for Responsible Development.” Plastica scored seven out of 10 points for the declared fulfilment of quality criteria, including for investing in a sector aligned with the country’s development policy, investment location, achieving a required level of exports, creating specialised jobs, a low negative impact on the environment, supporting workers in acquiring education and occupational qualifications, and cooperation with vocational schools. Plastica is one of the 56 companies of TZMO Group, which provides employment to 7,600 people. TZMO is a Polish producer and supplier of medical, hygiene and cosmetics products to over 80 markets in Europe, Africa, South and North America, the Far East and Australia. TZMO products are based on the most modern technologies available in the world. Plastica has operated within the Pomeranian Special Economic Zone since 2008. It has five

manufacturing plants in Frydrychowo where 1,400 people are employed. “We are proud that our Zone is the first in the country to grant support under the new zone regulations,” said Vice-President of the Pomeranian Special Economic Zone Paweł Lulewicz. “It gives us even more satisfaction that the aid goes to a Polish company which has bet on technological development and promised high quality jobs.” More investors are contacting the Pomeranian Special Economic Zone. This is a result of the campaign “Zone in Every Municipality” conducted by PSEZ. Over the several months before the new law became effective, PSEZ staff had reached almost all of the 226 municipalities in their area of operation, which is Pomorskie and Kujawsko-Pomorskie provinces, with information about the regulatory changes. They presented and explained the most important assumptions of the law at meetings with local governments and entrepreneurs. “We have shown to entrepreneurs who have not used or known the zone instrument before that the ‘new zone’ means first of all support for micro, small and medium-sized Polish firms. The new rules will make it possible to benefit from income tax exemptions for a larger group of businesses, which until recently were practically excluded from the ability to receive this kind of support. The new regulations are a chance for them to develop,” Paweł Lulewicz added. •


POLISH INVESTMENT ZONE MACIEJ BADORA, President of the Wałbrzych Special Economic Zone “INVEST-PARK”


hanges in the investment support policy concerning the functioning of special economic zones have been implemented. Territorial restrictions on the project location have been removed, enabling investors to use preferential conditions while doing business anywhere in Poland. The reform is intended to increase the quality of new investment projects and contribute to a more sustainable development of the entire country. The changes are part of the mechanism of strengthening Poland’s competitive advantage in the international arena. They result from the changing economic and social conditions all over Europe. It is evident that after two decades of functioning of special economic zones in Poland we are in a whole new reality, and we should react to this. The preferential conditions will be available to investors who have met the quantitative criteria, such as the number of newly generated jobs or the amount of capital

expenditure, or the qualitative ones, concerning the innovativeness of the project. Lowering the quantitative requirements for areas with a low number of new investment projects will offer the possibility of carrying out relatively small projects that will be eligible for tax exemptions. It will translate into a more sustainable development of the country. The qualitative criteria will be used when evaluating projects with high added value, based on investing in new technologies and generating well-paying jobs. Due to the fact that the entire territory of Poland will be covered with the preferential status, opportunities for micro, small and medium-sized companies will improve. They will no longer be forced to relocate to an area covered with the status of a special economic zone. We are currently holding meetings with SME representatives in the communes where the zone functions in order to make them aware of the new regulations. •

The Wałbrzych Special Economic Zone “INVEST-PARK” is an area offering preferential conditions to investors in south-western Poland. Locating a business operation within the WSEZ makes the investor eligible for tax exemptions and a number of other forms of support from the company managing the zone.

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ZONE 4.0 –

RESPONSE TO CONTEMPORARY BUSINESS NEEDS C reating modern solutions to enhance competitiveness and adjusting workers’ qualifications to the changing forms of reating modern solutions are to enhance competitiveness and production and services the challenges that adjusting workers’ qualifications to the changing forms contemporary business has to meet. And the of and services areEconomic the challenges that contemporary task production of the Lodz Special Zone business has to meet. And the task of the Lodz Special Economic (Lodz SEZ) is to support businesses in building Zone (Lodz SEZ) is to support businesses in building the economy the of the future. of theeconomy future.


Under the law on supporting new investment, the whole of PoUnder the law on supporting new investment, the whole land has been turned into a special economic zone. “It isPoland a newhas era when it comes to the rules economic of awarding state businesses. been turned into a special zone. “It aid is atonew era whenFirms it cowhich to receive support have innovativeFirms and create good mes towant the rules of granting state aidto tobe businesses. which want jobs. Additionally, the criteria for micro-businesses are 98% jobs. lowto receive support have to be innovative and create qualitative er than those largefor companies,” says President of thethan Lodzthose SpeAdditionally, thefor criteria micro-businesses are 98% lower cial Economic Zone says Marek Michalik. TheLodz investor may indicate the for large companies,” President of the Special Economic Zone place their to beindicate carriedthe out. If they meet the qualMarekwhere Michalik. Theproject investorismay place where their project itative quantitative – like for example, acquiring modis to beand carried out. If theycriteria meet the qualitative and quantitative criteria ern technologies, creating quality jobs, and developing cooperation – like for example, acquiring modern technologies, creating quality jobs, with local firms and scientific centres – they may receive state aid. In and developing cooperation with local firms and scientific centres – they Łódzkie province, it is enough to meet five of the 10 qualitative crimay receive state aid. In Łódzkie region, it is enough to meet five of the teria. The level of support depends on the scale of unemployment in 10 qualitative criteria. The level of support depends on the scale of unemthe county where the investor operates and state aid may be grantployment in the county where the investor operates and state aid may be ed for up to 15 years. granted for up to 15 years. Research and development departments are the main source of Research and development departments are the main source of innovation in corporations. However, in our rapidly changing world innovation in corporations. However, in our rapidly world there there is constant demand for new technology. Thischanging is why Lodz SEZ has is constant demand for new technology. This is why Lodz SEZ has decided decided to respond to the corporations’ demand for innovation while to respond to the corporations’ demandwith for innovation while solving at solving at the same time the problem the development of ideas the same time the problem with the development of ideas of young techof young technological firms. The intelligent diaper subscription sernological firms. The diaper subscription by vice developed by aintelligent start-up in conjunction withservice Procterdeveloped and Gamble a start-up in conjunction with Procter and Gamble and the system for and the system for interacting with participants in mass events deinteracting participants in mass eventsand developed in conjunction veloped inwith conjunction with Ericsson the Legia Warszawa with footEricsson the Legia Warszawa of football are only two examples of ball cluband are only two examples the 27club products and services develthe 27atproducts andSpark services developedof atLodz the Startup Spark Accelerator oped the Startup Accelerator SEZ. The Zone supports start-ups financially, involvesstart-ups mentorsfinancially, in their involves activitymentors and links of Lodz SEZ. The Zone supports in themactivity with the of with corporations. “Many projects developed their andresources links them the resources of corporations. “Many by start-ups in cooperation with have quickly entered projects developed by start-ups in corporations cooperation with corporations have

quickly entered the phase of commercialisation, bringing onto the market products and services, and solutions related to Industry 4.0, artificial intelligence, gamification, unmanned aerial vehicles and e-commerce as well as the internal needs bringing of organisations,” Vice-President thesolutions phase offor commercialisation, onto thesays market products of the Lodz Special Economic Zone Agnieszka Sygitowicz. and services, and solutions related to Industry 4.0, artificial intelli-

gence, gamification, unmanned aerial vehicles and e-commerce as with corporations, start-ups will wellIn as conjunction solutions for the internal needs of organisations,” says Vicealso be helping to develop 5G technologies President of the Lodz Special Economic Zone Agnieszka and Sygitowicz. solutions based them, says President the “In conjunction with on corporations, start-ups willof also be helping Lodz Special Economic Zone Marek Michalik. to develop 5G technologies and solutions based on them,” says President of the Lodz Special Economic Zone Marek Michalik. “We will begin with the awareness potential futureof 5G applicaWe willbuilding begin with buildingofthe awareness tionspotential in industry.” future 5G applications in industry. But modern industry has greater needs than only preferential conditions for business andhas access to new technologies because the laBut modern industry greater needs than only preferential conbour market also puts to it. Companiesbecause cooperating with ditions for business andchallenges access to new technologies the labour Lodz SEZ are looking for employees to work on fully automated market also puts challenges to it. Companies cooperating with Lodz proSEZ duction lines, that is specialists in automation and robotics. Such edare looking for employees to work on fully automated production lines, ucation is now available only at higher educational institutions. This that is specialists in automation and robotics. Such education is now avais why, in cooperation with Miele Technika, Ceramika Tubądzin, Deilable only at higher educational institutions. This is why, in cooperation lia Cosmetics and the Łódź University of Technology, the Zone is gowith Miele Technika, Ceramika Tubądzin, Delia Cosmetics and the Łódź ing to open a secondary technical school responding to these needs. University of Technology, the Zone is going to open a secondary technical It will create an opportunity to educate future medium-level technischool responding to these needs. It will create an opportunity to educate cal staff able to meet specific needs of employers, in particular those future medium-level technical staff able to meet specific needs of eminvesting in Lodz SEZ. ployers, in particular those investing in Lodz SEZ. By creating the prospect for preparing highly specialised technicreating prospect highly specialised technical staff, calBy staff, Lodzthe SEZ intendsfor topreparing open a fresh chapter in linking educaLodz SEZ intends to open a fresh chapter in linking education and busition and business. The Technical School of Automation and Robotics ness. The Technical School of Automation and Robotics at the Lodz Speat the Lodz Special Economic Zone wants to provide quality vocacial Economic Zone wants to provide quality vocational education, which tional education, which will make the school-leavers prepared for will make and the school-leavers for mobility and flexibility onmarthe mobility flexibility on prepared the dynamically changing labour dynamically changing labour market, and will be developing their persoket, and will be developing their personal and social competencies. nal and competencies. Lodzneeds SEZ focuses theitreal needs of firms Lodzsocial SEZ focuses on the real of firmson and is already known and is already known that theyofare huge. Analyses of demand for specithatitthey are huge. Analyses demand for specific occupations are fic occupations areZone conducted by the to make theprecise. estimates more conducted by the to make the Zone estimates more Permits issued for operation Lodz SEZ alone indicate thatindicate the employers precise. Permits issuedinfor operation in Lodz SEZ alone that the will need nearly 6,000 people. A majorApart ofpart thisof demand is relatemployers will need nearly 6,000 people. major this demand is • ed to automation andand robotics. related to automation robotics. polish market



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NEW ENERGY ERA In the following article, ANDRZEJ SIKORA, President of the Energy Studies Institute, looks ahead to new untapped sources of energy that promise to satisfy the world’s energy needs.


new energy era is upon us. Based on renewables and fossil fuels, mankind has reached for the sky, but we are still limited in our efforts. We lack technologies for solar (PV) systems and we still live without appropriate energy efficiency. Our technologies allow us to cross oceans, to reach the Moon and the outer reaches of our Solar System, improving our electric / energy transmission. But can we spread our wings even further to look for new spectacular possibilities so close to us but so far at the same time that our senses do not perceive them? In 1687, Sir Isaac Newton, published his “Mathematical Principles of Natural Philosophy.” It contains the three basic laws of

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motion: a stationary body will stay stationary unless an external force is applied to it: force equals mass times acceleration, and a change in motion is proportional to the force applied. For every action, there is an equal and opposite reaction. In 1684, Edmund Halley considered the issue of the force attracting the Sun and a planet. His expectation was that the force must be inversely proportional to the square of the distance between them. But he could not prove it. So visiting Newton asked quite the opposite question: “What curve will the planet around the Sun move if the connecting force is inversely proportional?” Newton said ellipse. This was the genesis of Newton’s universal laws of gravitation and of Halley’s collaboration in having them

published. Interestingly, today, the most influential book on physics and the Newton Laws turned out to be a special case. For low velocities and weak gravitational fields, Einstein’s equations change into Newton’s equations. The world of our everyday experience is the Newton world. But I intend to push everybody to the Hawking, Penrose and Higgs understanding of the Universe. Who could expect 50 years ago that in every region of the Universe we find a field of energy, the Higgs fields. Gravitational waves are ‘ripples’ in the fabric of space-time caused by some of the most violent and energetic processes in the Universe. Albert Einstein predicted the existence of gravitational waves in 1916 in his general theory of relativity. His mathematics showed

Energy that massive accelerating objects (such as neutron stars or black holes orbiting each other) would disrupt space-time in such a way that ‘waves’ of distorted space would radiate from the source. Furthermore, these ripples would travel at the speed of light through the Universe, carrying with them information about their cataclysmic origins, as well as invaluable clues to the nature of gravity itself. That was the case up until 2015, when LIGO (Laser Interferometer GravitationalWave Observatory), for the first time, physically sensed distortions in space-time itself caused by passing gravitational waves generated by two colliding black holes nearly 1.3 billion light years away. This will go down in history as one of the greatest human scientific achievements. Suddenly we realised that our detectors worked; suddenly we knew that the black holes of Einstein’s theory are really out there. The dream of gravitational wave astronomy became reality. We realised that Newton’s laws are perhaps a special case of the general theory of everything, I dare say anomaly, even. Are we entering a new energy era, knowing that the Universe surrounding our perception, our senses, mostly consist of hydrogen and helium? Do we believe that we are surrounded by dark matter and dark energy? About 95% of the known Universe is completely unknown to us.

DARK ENERGY Everything we know about dark energy would suggest that it is consistent with having a constant potential energy value everywhere throughout space. Dark matter is even more mysterious than we originally thought, according to new research. It makes up far more of the universe than the stuff we see around us. But we only know it exists through its interactions with the visible universe, and we know very little about it. According to Einstein’s general theory of relativity, gravity should lead to a slowing of cosmic expansion. Yet, in 1998, astronomers made the remarkable discovery that the expansion of the universe is speeding up. Cosmologists are faced with two possibilities: either 70% of the universe exists in dark energy, that exhibits a gravitational force opposite to the attractive gravity of ordinary matter, or General Relativity must be replaced by a new theory of gravity on a cosmic scale. Dark matter and dark energy are mysterious, unknown substances. While we may have never directly seen them, they beautifully explain how stars and galaxies move and how the universe is expanding. But a new study, published in “The Astrophysical Journal,” suggests they may not exist after all.

Published a few weeks after his death, Stephen Hawking’s “Final Theory Shows A Less-Complicated Universe” explains that the universe is less complicated than previous multiverse theories would have it. He suggests that there are many bubble universes nucleating and increasing within a background multiverse that is also expanding.

DO PARALLEL UNIVERSES EXIST? The multiverse theory suggests the existence of universes other than our own, but the idea presents a mathematical paradox because it seems impossible to measure. At times, it can seem that the more precisely we measure our universe, the less we understand it. In response, droves of physicists are going back to their chalkboards, revisiting and revising their assumptions. We are desperately attempting to find a new way to make sense of our world. It is hard to imagine our world without electric power. Ever since the first light bulbs illuminated our cities, mankind’s appetite for this flexible form of energy has kept on increasing. This trend is not about to change in the 21st century, as technical progress is bringing more and more electrical appliances into our everyday lives. The Member States of the European Union have agreed on an ambitious plan to build the biggest electricity market of more than 500 million consumers. A wellfunctioning and competitive market is needed to satisfy the needs and expectations of European citizens. It will contribute to fighting climate change and securing our energy future. But I would like to draw your attention to hydrogen and the shale / tight unconventional technologies revolution. Hydrogen, as a main component of hydrocarbons and water, trapped in clathrates, will open a new window. It will be a new energy era (maybe one generation only) where – based on an easily accessible technology and enormous resources of shale oil and shale gas and then methane clathrates – mankind will find a way to galaxies with hydrogen as a main source of energy. A methane clathrate is a solid compound in which a large amount of methane is trapped within a crystal structure of water, forming a solid similar to ice. Its significant deposits have been found on the ocean floor with relatively easy access. Hydrogen as bridge for nuclear fusion - in my opinion - will give us enormous amounts of energy and open the way to the Universe. I am convinced that the next generation will utilise hydrogen synthesis (solar energy), in spite of the fact, that the Sun’s energy doesn't come from fusing hydrogen into helium. So, is energy security of hydrocarbons just dependent on the technology of production (hydraulic fracturing) and infrastructure

which would allow us to reach for the sky? Japan is the first to extract natural gas from offshore deposits of methane hydrate, a frozen gas known as “flammable ice”. Other countries such as India, Canada, China, Russia and the United States are also looking to exploit hydrate deposits as an alternative source of energy. Because methane hydrate can only remain solid at low temperatures and high pressures, it is difficult to recover methane hydrate samples intact, whether the samples are collected from the seafloor or from deeply buried sediments. Producing natural gas from methane hydrate will require finding economical methods for safely extracting the methane, while minimising environmental impact. Some progress has been made in this area, but much remains to be understood. Hydrogen can be produced using a number of different processes. Thermochemical processes use heat and chemical reactions to release it from organic materials such as fossil fuels and biomass. Water can be split into hydrogen and oxygen using electrolysis or solar energy. Microorganisms such as bacteria and algae can produce hydrogen through biological processes. Some thermal processes use the energy in various resources, such as natural gas, coal, or biomass, to release hydrogen from their molecular structure. In other processes, heat, in combination with closed-chemical cycles, produces hydrogen from feedstocks such as water. Production of hydrogen from water requires large amounts of energy but can we split methane or water using less energy? Let’s imagine - I have a dream - molecular, for example based on graphene, sieve hydrogen purification / membrane technology for hydrogen production from methane or water. In comparison with traditional chemical separation processes, membrane separation is much simpler and more efficient. Hydrogen, in my opinion, will be a central pillar of the energy transformation. For example, to achieve the two-degree scenario (limit global warming to 2 degrees Celsius), the world will need to make dramatic changes year after year and decrease energy-related CO₂ emissions by 60% until 2050 – even as the world’s population grows by more than 2 billion people and billions of citizens in emerging markets join the global middle class. Hydrogen can play major roles in this transformation: • Enabling large-scale renewable energy integration and power generation, • Storage of energy across sectors and regions, • Acting as a buffer to increase energy system resilience, • Providing clean feedstock for industry. • 10/2018 polish market



COMBINING STABILITY WITH BOLDNESS ALICJA BARBARA KLIMIUK, acting President of Energa SA, talks to “Polish Market.” In recent years the Polish electric power sector has faced critical challenges, including those associated with a rise in demand for electricity up to the existing limit of generating capacity, the need of transition to environment-friendly energy sources and Poland’s energy security. Of the country’s main four energy groups, Energa is the one which has made the most effort to respond to these challenges in its development strategy. Will Energa’s present Management Board be trying to keep this position? The strategy for 2016-2025 has been binding at Energa Group all along. It specifies in detail the challenges which are faced not only by Energa, but the whole energy sector. The strategy calls for the sustainable development of the group, with the construction of both stable conventional generating sources, which will enable meeting the need to ensure the security of the electric power system, and renewable energy sources. We are the “greenest” group among the state-owned energy groups, but we are aware that an extensive renewable system will not come into being without a solid basis. This is why we are committed to building the Ostrołęka C power generating unit. Along with several other recently constructed units, it will constitute an important element of the Polish electricity and energy system. Based on more power generating capacity in the conventional sector, a dynamic development of renewable generating capacity will be possible in the future. And we are not pioneers in this respect. Germany has successfully made the same journey in the past, building a stable coalbased foundation for the industry. Only then did they invest in expanding the share of renewable energy in the energy mix. PM

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The development of storage technologies is another way, apart from conventional power sources, to meet the challenges that the instability of renewable energy generation poses to the sector and the country’s energy security. At present two companies of our group, Energa Wytwarzanie and Energa Operator, in conjunction with the Japanese governmental organisation NEDO, are involved in testing a prototype electricity storage facility which will be built at the wind farm in Bystra. The facility will mainly be used for tests. But if the results are satisfactory the technology will offer hope for a broader application of a similar solution in the Polish electric power system. The modernisation of distribution infrastructure is also a key aspect of the Energa Group strategy when it comes to ensuring energy security. It will enhance the security of electricity supply to households, business customers and institutions of key importance for the functioning of the state. By 2025 an average of PLN1.3 billion annually has been earmarked for investment in distribution networks. The introduction of the capacity market and making it obligatory for all electricity trade to be conducted on the power exchange is to be the basis for the systemic reform of the electric power sector. However, varied experience with these solutions in many countries is a source of controversy also in Poland. From the point of view of Energa SA, will they contribute to enhancing energy security, raising investment and minimising electricity generation costs? Limiting the energy market exclusively to a single commodity market may result in the phenomenon called “missing money,” which may consequently lead to “missing capacity.” The only solution to address this problem is the introduction of a mechanism rewarding generators not only for production itself, but also for readiness to generate electricity when it is required. The capacity market is one of such solutions. Every additional source of funding available to the generation sector is conducive to keeping the existing units in operation and readiness. At the same time, Energa hopes that the size of the support will provide an incentive for investment in building new generating capacity. This is why, in our view, the introduction PM

of the capacity contract as a guaranteed instrument generating stable revenues will contribute to enhancing the security of the energy sector and consequently will enable a drop in the cost of capital. Will the existing programme of Energa’s strategic investment projects - involving the construction of new generating sources, electricity network digitisation and services for customers - be changed and in what way, if so? Will the “Green Energy” slogan associated with Energa be maintained? As I have already stressed, the strategy for the years 2016-2025 is binding and, importantly, is being implemented. We are also proud to be the “green energy” leader among the largest Polish energy groups in terms of the share of capacity installed in renewable energy sources in all installed capacity and in terms of the share of electricity produced from renewable sources. The development of renewable energy projects continues to be one of Energa’s priorities. In expanding our renewable energy capacity, we are not forgetting about the technological challenges involved and the need to invest in innovation. I have already mentioned the project carried out with the Japanese to build a prototype electricity storage facility at the wind farm in Bystra. Additionally, Energa Wytwarzanie has recently implemented a pilot programme in which photovoltaic panels floating on water have been installed. The aim of the pilot programme is to find out whether the expected results, in particular an improvement in the panels’ efficiency and an increase in electricity generation, can be achieved in Poland’s climate, which differs from the climate of the countries where this solution has already been used. But green energy is not all. An important area for building the value of the Energa Group pointed out in the Group’s strategy is the need to focus the business model on the individual customer. Thanks to this approach, Energa Group is the leader in introducing new pro-customer solutions and plans to keep this position in the future. PM


Is Energa SA going to increase even further its commitment to research and development activity through cooperation with the National Centre for Research and Development (NCBR) and R&D centres?


Can you point to projects or areas of work most important from the point of view of Energa SA? I have stressed during our conversation that we not only see the need, but are taking action to introduce innovations. Modern and innovative solutions determine the position and strength of players on the contemporary energy market. We have a strong position and are not going to give it up. This is why we are going to invest PLN40 million a year in innovation as of 2019. In our activities we will be using the support of various outside institutions which manage resources for research and development and innovation. Solutions that we call future technologies are the broadest and most time-consuming pillar. We have already talked about some of them – I mean renewable energy sources and energy storage. The third area of the future technologies is new generating sources, which will be an alternative to both conventional power sector and existing renewable energy solutions. We are not going to give up our strong position on the energy market. And this requires stability and rational management on the one hand and a kind of boldness on the other. We lack neither. • 10/2018 polish market



On 30-31 August 2018, the G2A Arena near Rzeszów hosted another edition of the 60 Million Congress – Global Polonia Summit, which has become a regular event.


hat should be the image of Poland abroad? Can Polish innovation be an export product? What is the role of the Church in building a sense of community among the Polish diaspora? What are the ways of integrating 60 million Poles? These are only a few of the questions which were addressed by participants in the 60 Million Congress – Global Polonia Summit. During the Rzeszów event, representatives of the Polish diaspora, politicians, presidents of widely known Polish companies, scientists, local government officials, and leading opinion-makers, gathered at the Congress and Exhibition Centre G2A Arena to talk about the integration of Poles. The first two editions of the Congress took place on 9-10 February 2018 in Miami, Florida, and on 21 July 2018 in Buffalo, New York. Both events turned out to be great successes, as nearly 400 distinguished guests from several dozen or so countries attended them. The participants included New York Senator Tim Kennedy, and Republican Congressman Brian Higgins. The Rzeszów edition of the Congress was also a constructive meeting of the Polish diaspora from all around the world. The 15 discussion panels had 96 speakers, and the G2A Arena hosted guests from 11 countries during the two-day event. To sum up, the 60 Million Congress is “a tremendously important gathering of Poles,” as Jerzy Kwieciński, Minister of Investment and Economic Development, said. “Naturally, we have here Poles from Poland, countless Poles from all parts of the United States, and other places, such as the United Kingdom, in particular. It is crucial that we build a network among our Polish diaspora – a network of Poles, who meet and talk about problems important for Poland and the world,” he added. The guests at the congress in Rzeszów included Anna Maria Anders, Plenipotentiary of the Prime Minister for International Dialogue; Rita Cosby, American journalist; Adam Hamryszczak, deputy Minister of

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Investment and Economic Development; Daniel Kawczynski, Member of the Parliament of the United Kingdom; Wojciech Buczak, deputy Chairman of the National Defence Committee and member of the Infrastructure Committee; Karolina Wawrzyniak, Head of the Polish Foreign Investment Section; and Paweł Deląg, actor and director. Among the speakers who opened the Congress was Władysław Ortyl, Chairman of Podkarpackie province, the main partner of the event. During the first panel discussion on “Building the image of Poland in the international arena,” it was noted that our country needed to be active internationally, because we had a history that we did not talk about, even though the world should know it. The main themes of the Congress included Polish innovation as an export product – government support to Polish people (funds for businesses); the New Three Seas Initiative and the Poland 3.0 Cross-Border Cooperation programme; the transfer of knowledge and innovation; energy security and the New Silk Road; Poland's and Poles’ security; Brand Poland – international cooperation of Polish businesses – developing good practices; regional cooperation; the role of diplomatic posts and organisations in building partnerships between cities and regions; how to unite the 60 million Poles who live around the world – initiatives which unite Poles – the media and organisations of the Polish diaspora; and the role of the Church in fostering community between the Polish diaspora on all continents. The Polish diaspora had an opportunity to learn about most exciting start-ups from the south-eastern part of Poland in a specially established Innovation Zone; a special Cities of Podkarpackie Province Zone was also set up to allow the towns and cities to present their unique products. The main partners in the Rzeszów edition of the 60 Million Congress included Podkarpackie province and the Polish national air carrier LOT. Further details on the 60 Million Congress are available here: http://60mln.pl. •


ANNA MARIA ANDERS, Secretary of State at the Polish Prime Minister’s Office, and the PM’s Plenipotentiary for International Dialogue, addressed a congress of Polish communities abroad, known as the 60 Million Congress – Global Polonia Summit, in Jasionka, outside the south-eastern city of Rzeszów on August 30. She spoke to “Polish Market’s” Błażej Grabowski about Poland’s relations with its diaspora. My first question is about our contacts with the Polish diaspora, which we call Polonia, and Poland's image abroad. In Poland the potential of cooperation with the diaspora has been discussed since the 1900s, but primarily through the perspective of possible donors. In your opinion, how should we perceive the diaspora and its role? There is certainly huge potential. I often participate in various meetings with Polish communities living abroad to see how this potential can be tapped. Looking at the Polish economy, many foreign companies are currently investing in Poland, but they are not necessarily connected with the Polish diaspora. My goal is to encourage the diaspora, politicians, and the business sector, to promote the Polish economy. Poland has amazing potential, but often we are unable to get through to people with our positive portrayal. The good things about Poland are found in the eighth or tenth page of an international newspaper, and I would like them to be on the cover. If Poland's global image is good, this will inspire foreign investment, including by companies owned by Polish people based in other countries. I also think that one of the main directions of my mission is to improve Poland's image in the world.

abroad as a modern, dynamically developing, country. First of all, we should encourage people to come to Poland, and I don’t only mean the Poles who come here to be with their families, but also people associated with Polonia, who might not even speak Polish, but are specialists in a given field, or have their own companies, often with a global presence, or are decision-makers in such companies. The goal is to make them come to Poland and find out for themselves about Poland's potential.

Our interview is just before the 60 Million Congress, which is referred to as the global Polonia summit. What is the actual significance of such initiatives? What can we expect of them? The first conference in the series, attended by Minister Jerzy Kwieciński and Minister Tadeusz Kościński, was held this year in Miami, Florida, and it turned out to be a great success. A month before, another meeting took place, this time in Buffalo, New York, featuring American politicians. This contributed to the positive image of Poland. I think Poland should be promoted

Poland's economic situation has also changed. Our economic challenges are completely different. Does establishing new relations with the diaspora by changing the way we think about Poles who live abroad - seeing them as business partners rather than as “fairy godparents” who might be willing to support a noble initiative - can have an impact on the country's economic development? It can have a huge impact. It is worth remembering that the children of these “fairy godparents” are very often well educated, study



The members of the diaspora who left Poland many years ago often have a strong attachment to their homeland. How to encourage their children, who represent a new generation, to take an interest in Poland? First of all, they should come to our country. I think that common initiatives, meetings, competitions, and online activity, all arouse interest. Poland should be presented in its current form and not in the version remembered and imagined by their parents. This is true for everyone, not only the diaspora. I often visit Washington and talk to various congresspersons and senators who have completely changed their approach to Poland after coming here, and began to see the country from a different perspective. PM


at the best universities in the United States or the United Kingdom, and represent specific professions. And they should be seen as potential partners. We should persuade them to open European divisions of their companies in Poland, or to move part of their production here. However, we should not distance ourselves from people with Polish roots who come to our country, but do not speak Polish. The goal is not to discourage people. I often invite various politicians to Poland, including those at the local level, and organise inter-departmental meetings for them. Establishing partner cities has proven very successful. Foreign politicians discuss this during their meetings with their voters, which is their way to promote Poland. One more practical question – how can potential businesspersons or individuals with interesting ideas from Poland or abroad get in touch with their foreign partners? I suggest they contact the Office of Minister Anders at the Prime Minister’s Office. We have extensive capabilities to assist in making contacts. If the president of a company comes to us, we will be happy to arrange a conference or meeting for them at the office. Its employees speak English and are experienced in projects of this type. We will surely be able to help. PM

Can your office be contacted directly, or is it better to go to a Foreign Trade Office run by the Polish Investment & Trade Agency (PAIH)? Yes, both. PAIH is currently very active, with more and more offices being opened around the world. Recently, the president of Poland opened a new office in Australia, and soon another one is to be launched in New York. In general, they have been very successful. • PM

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The daughter of a Polish father Ryszard Kossobudzki who came to the United States after WWII, TV personality RITA COSBY grew up in Greenwich, Connecticut. She is now a news anchor and correspondent, radio host, and best-selling writer. Cosby addressed a forum in the city of Rzeszów August 30-31 devoted to the Polish diaspora worldwide. She spoke to “Polish Market’s” Błażej Grabowski about the perception of Poland in the United States.

We are talking during the 60 Million Congress – Global Polonia Summit. During the first panel discussion you said that Poland needs strong PR activity today. PR is a very broad term, so what do you mean? What can we do to make Poland have a better image in the world? I think that Poland has a great story to tell in so many ways. It is unique because it has such an incredible, courageous history dating back to my father’s time and that of his comrades, in fact even before that. Their time was a time of solidarity, amazing historic moments of courage and overcoming insurmountable odds. It’s amazing. It’s a great story to tell but I often feel, as a Polish American, that I hear some negativity, whether it’s some controversies, and I feel that there is a big vacuum in terms of hearing the Polish side of the story. And I often think that if the Americans had a fuller picture I have the luxury of loving Poland so much and always wanted to know all the details, I have more knowledge. But sometimes people only hear a brief slice and don’t realise that there are many other sides to the story and that often the other sides are very positive. I think that the average American and the average person outside of Poland would be receptive to hear more of the positive, more of the other side. And I often feel that Poland has voices that speak on behalf of Poland abroad, whether it’s in America, whether it’s in other countries, and I think it would be absolutely great to combat some of the negative press. One needs clear, very loud spokespeople, in particular people who can speak English fluently, based in Washington PM

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or New York, who come out when there is an issue and correct it. Your famous book “Quiet Hero: Secrets from My Father’s Past” is the story of his youth during WWII, the Warsaw Uprising and Polish resistance. How do people in the United States react to this book? What do they think about Poland after reading this book? I think for many of them it was the first time they heard of the Warsaw Uprising. We don’t really learn about it in our history books. I’m of Polish descent and I don’t think I’ve ever learnt about it in the American school system. I learnt so much more speaking to my father. When people in the United States hear the story, they’re overwhelmingly inspired by the courage of the Polish people and the fight of the Warsaw insurgents, what it represents. It’s a story of standing up to your principles. They are incredibly inspired and impressed with the Polish people and all that they stood up and fought for. And they are definitely intrigued to learn more about Poland and that makes me very happy. PM

A new US Ambassador started her mission in Poland recently. Do you think it could be a new opening between our two countries? Yes, for sure. I know Georgette Mosbacher, the Ambassador. I’ve known her for many, many years and she is absolutely a patriotic person, a very passionate person, somebody who loves freedom and was very excited to come to Poland. I spoke with her before she was confirmed and I was excited to see PM

someone who I know really appreciates the struggle for freedom. I think that because of that and because of her very strong love of democracy and independence it is the best for Poland and the best for America and I think she shares that spirit. So I’m very excited that she will be here in Poland. Do you think that her presence will help to strengthen economic relations between Poland and the United States and links between the two countries? Yes, for sure. She is a very successful woman, very active politically, but also a business leader. She is a very strong, vivacious, passionate person who fights for what she believes in. She comes from a business background. She sees the potential of relations between Poland and America, and is a great bridge builder, too. When it comes to economic relations, it is also about shared values, shared ideas. It’s not just a business opportunity but there are also many layers to it. And I think she is someone who can appreciate all of those varied levels and can certainly help to boost business relationships. I think she can also contribute to the cultural ties that make the unique, unbreakable bond between Poland and America to become even more transparent and stronger. She is a patriot and somebody who clearly loves America and also clearly loves now a new home Poland. She knows of my love for Poland, we talked about my father and we also talked about the military and freedom and the struggle of the Polish people, and she is certainly somebody • very loyal to patriotism and freedom. PM



ANDRZEJ BUŁKA, Managing Director of Fracht FWO Polska Sp. z o.o.

Fracht FWO is one of the most renowned international transport companies specialising in the field of project cargo. Could you please explain to our readers what project cargo is? That's true, we are one of the leaders in project cargo. The term encompasses the logistics of industrial projects, in the broad sense – i.e. organising the transport of more or less technologically advanced constructions and devices whose weight or size exceed the transportation capacity of standard sea containers, unit-load devices or standard trailers. The freights entrusted with us within any one project amount to thousands of freight tonnes, but they are elements of various sizes and purposes. From spare parts to several-hundredtonne transformers, generators, tanks and turbines, whose transportation often requires the use of specialist vessels, cranes or heavy-load trailers. PM

What proportion of Fracht FWO Polska's activity is this sector? This field of our services constitutes about 25%, i.e. it generates about 10 million zlotys a year. We provide this type of service both to Polish factories exporting their products worldwide and to global companies supplying equipment for investment projects within Poland. An example of such services is the delivery of large components for the construction of power-generating units in Opole and Jaworzno. PM

What are the development prospects for project cargo on the transportation market in Poland? There is a steadily growing trend in the freight transport classed as project cargo; although its development prospects are dependent on several factors, such as the number and type of the investments. PM


What does this mean, and what do we lack in transport infrastructure to handle project cargo comprehensively?

The development of linear as well as point infrastructure is vital. What I have in mind are particularly inland waterways and their accessibility. For instance, on the Oder waterway (Odrzańska Droga Wodna) there is only one inland port which facilitates the professional and safe reloading of heavy cargoes from a river barge to a railway wagon or specialist semi-trailer. On the Vistula River, in turn, there is not a single facility like that. Bearing in mind the production capabilities of the factories located in the basins of these two rivers, the aforementioned limitations in reloading, and the inability to navigate them most of the year, inhibit the full use of this transport branch. As a result a large chunk of project cargoes end up on Polish roads, where they are treated unfavourably because of the infrastructure. A number of roads have been brought into service recently, and the terms and conditions of their contractors' guarantee on new infrastructure do not allow the loads required. The inability to organise such transport legally can have an indirect impact on decisions on the location of new investments in Poland or on decisions as to whether to continue with the investments already existing. Does the fact that a transport company specialising in project cargo operates in Poland mean the involvement of its cooperating parties? What are the direct and indirect benefits for the Polish economy? Absolutely. We cooperate with a group of a few dozen companies providing road, inland, sea and air transport services, as well us with companies handling assembly, industrial packing and various types of reloading. High standards are set by our demanding clients. And, consequently, we are as good as our partners are. Therefore, the level of our services needs to be very high, and our partners carefully selected. Our work means added value for our clients, who include a number of key investors in the Polish • economy. PM

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THE 28TH ECONOMIC FORUM IN KRYNICA Another edition of the prestigious Economic Forum was held in the southern spa town of Krynica on September 4-6. As always, this year's Forum was attended by all the key actors from the CEE politics, business and media spheres, as well as academics and people from the world of culture. Among the guests, there were former and current prime ministers, parliament speakers, ministers and MPs, and representatives of major corporations of both regional and global reach.


he 28th Economic Forum hosted top members of the state authorities, including Polish Prime Minister Mateusz Morawiecki, Parliament Speaker Marek Kuchciński, Senate Speaker Stanisław Karczewski, and Polish government ministers. Among the eminent foreign guests were Prime Minister of Lithuania Saulius Skvernelis, Minister for the Cabinet Office and Chancellor of the Duchy of Lancaster David Roy Lidington, European Commissioner for Education, Culture, Youth and Sport Tibor Navracsics, Latvian Minister of Foreign Affairs Edgars Rinkēvičs, Hungarian Minister of Foreign Affairs and Trade Péter Szijjártó, Speaker of the House of Representatives of Malta Angelo Farrugia, First Vice-Prime Minister and Minister of Economic Development and Trade of Ukraine Stepan Kubiv, deputy Speaker of the Hungarian National Assembly János Latorcai and Bulgarian deputy Prime Minister for Economic and Demographic Policy Valeri Simeonov. The list of the most important guests at this year's Forum included several dozen names of top government officials. The upcoming local government elections in Poland and plans to discuss the ways of improving the operation of local governments, including their financial aspect, brought to Krynica a large group of local government officials who, as part of a special thematic section – Forum of the Regions, talked about the challenges faced by their “small homelands”. The most important economic issues in Krynica were discussed by those representing

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Polish and foreign companies of regional and global reach, with speakers such as Prof. Herman Simon of Simon-Kucher &Partners, Dominika Bettman, Chief Executive Officer at Siemens Sp. z o.o., Piotr Dziwok, President of Shell Polska Sp. z o.o., Mirosław Kowalik, President of Enea SA, Henryk Baranowski, President of PGE Polska Grupa Energetyczna SA, Filip Grzegorczyk, President of Tauron Polska Energia SA, Filip Thon, Member of the Executive Committee Retail innogy SE, President of the Management Board of innogy Polska SA, Michał Krupiński, President of Bank Pekao SA, and Marek Dietl, President of Giełda Papierów Wartościowych w Warszawie S.A (Warsaw Stock Exchange). Representatives of the largest Polish and international companies and organisations were also present in Krynica. The Forum discussions were attended by: Steven Harman, Vice-President of Amazon in Europe, Robert Bednarski, Director for Central and Eastern Europe at Facebook, Piotr Ciski, Managing Director of Sage Sp. z o.o., Dariusz Blocher, President of Budimex, Paweł Borys, President of the Polish Development Fund, and Tony Housh, President of the American Chamber of Commerce in Poland.


“A Europe of Common Values or a Europe of Common Interests” – the Forum's motto -touched upon European integration, which has proceeded quickly in the economic sphere.

But since the beginning of the 21st century, with values becoming an increasingly explored topic, serious cracks have appeared in the foundations of Europe's vision of the Community, the most striking expression of which is Brexit. During the plenary sessions of the Forum, traditionally dominated by Europe and Europeanness, seen holistically, the following topics were discussed: Between Economy and Politics. Europe in Search of Recipes for Social and Economic Growth; How to Effectively Build an Innovative Economy? Experiences – Inspirations – Strategies; Europe – Yesterday, Today and Tomorrow; Does Capital Have Nationality?; How to Help in Times of Crisis?; Brexit and the Future of the European Union; Europe in Search of Values; Investments in Health and Health Economy – Health Challenges of the State in the Context of Economic Development. Contemporary Europe seems prone to divisions. Is there any chance for a continent so ethnically and politically diverse to find common values? Which values should become the cornerstone for a Europe of the future? Answers to these questions were sought during a plenary session titled “A Europe of Common Values or A Europe of Common Interests?” which summed up the 28th Economic Forum in Krynica.


A report compiled by a team of leading experts from the SGH Warsaw School of Economics, entitled “Economic Challenges for Central and Eastern Europe,” was presented on the first day of the Forum. As well as challenges, the report addressed possible measures for mitigating the impact of the identified problems, e.g. how the ageing of population affects the Polish economy. In this context, the report mentioned assistance to families in their care of children and the elderly, aimed to foster women's presence on the labour market.


During an official gala, the winners of the 9th Healthcare Forum Ranking received their awards. The laureates by category: • Production of medical equipment and devices: Medicalgorithmics SA • Production of medicines: Adamed Pharma SA • Clinical trials: Polski Bank Komórek Macierzystych SA • Diagnostics: Klinika Neuroradiochirurgii Sp. z o.o. • Private hospitals and outpatient clinics: Vivadental Sp. z o.o. • Public hospitals and outpatient clinics: The Warsaw – Żoliborz Independent Public Complex of Open Healthcare Centres The session “Investments in Health and Health Economy – Health Challenges of the State in the Context of Economic Development”, being part of the “Together for Health” debate, gathered ministers who, during a discussion led by PM Mateusz Morawiecki, talked about the healthcare system. Stressing that healthcare is a great challenge for every country, Prime Minister said that he would strive to modernise it: “We have boldly picked up this gauntlet (…). The healthcare system is and will be a priority for us,” he declared.


The 28th Economic Forum began with a debate on the possible scenarios for the development of Europe. The debate “Between Economy and Politics. Europe In Search of Recipes for Social and Economic Growth” was attended by Beata Szydło, Polish deputy Prime Minister, Valeri Simeonov, Bulgarian deputy Prime Minister for Economic and Demographic Policy, Stepan Kubiv, First Vice-Prime Minister of Ukraine, William Ribaudo, Managing Partner, Deloitte, Filip Thon, President of the Management Board, Innogy Polska, and Reiner Schlatmann, President of Philips for the CEE region. The guests gathered in Krynica's Pump Room were greeted by Marshal of Małopolskie Province Jacek Krupa and Mayor of Krynica-Zdrój Dariusz Reśko. “For 27 years Krynica has been becoming the world's centre of reflections about the economy,” said Mr Reśko. During the inaugural debate, the guests talked about the relationship between the economy and the state, and the impact of political security on the economic situation. Understandably, the Ukraine-Russia conflict and its economic effects were discussed as well. The speakers stressed the role which Poland played in the energy sector of the global economy.


For the second time, the Startup Session Elite event was organised in Krynica, specifically for young, innovative entrepreneurs. Twenty one startups presented their ideas at the stalls of the Economic Accelerator Zone, pitched in the Polish Development Fund Zone, and held many business meetings with the participants in the conference. This year's edition of Startup Session was significantly expanded from the previous one owing to, among other things, the funding from the Ministry of Investment and Economic Development – the partner of the event. It comprised four panel discussions on startups and new technologies: “Investing in Startups – How to Do It Wisely?,” “Polish Startups in the Global Race – Do We Have a Chance?,” “Knowledge and Innovation as the Key to Success – Can Business Be Learned?” and “By Car or by Hyperloop? What is the Future of Transport?” Bo Ji, Vice-Dean of Global Executive Education and Chief Representative for Europe, Cheung Kong Graduate School of Business, gave a speech entitled “A Unicorn or a Dragon – How to Enter the Chinese Market?”


Lithuanian Prime Minister Saulius Skvernelis was awarded the title of Man of the Year 2017 at a gala event on the second day of the 28th Economic Forum. Statuettes in three other categories were also presented. The Polish Development Fund was called the Company of the Year 2017. The Polish Humanitarian Action (PAH) was named the best non-governmental organisation and the Stanislaw Vincenz New Culture, New Europe award went to maestro Krzysztof Penderecki.


As part of the Europe of the Carpathians discussion section, initiated by Speaker of the Polish Parliament Marek Kuchciński, there was a panel discussion entitled “Neighbours of Europe or Neighbours in Europe?”. The speakers talked about migration policy and neighbourhood policy. The directions of cooperation were discussed within the framework of “The Three Seas Initiative – Cooperation Between European Countries and Central Europe – Infrastructure under Reconstruction.” Much attention was also given to security issues that were addressed in the discussions on “Quiet in the Carpathian Polonynas – How to Assure Political Security in the Carpathian Region of Europe?” and “The Eastern Shield of the Atlantic Alliance.” The organiser of the Economic Forum in Krynica-Zdrój is the Foundation Institute for Eastern Studies (Eastern Institute). The main partner • of the event is the Małopolska Province. 10/2018 polish market


Defence Sector



he 26th edition of the International Defence Industry Exhibition in Kielce was held September 4-7. The PGZ Group, as a strategic partner of the event together with defence industry companies, presented a wide range of solutions dedicated to the Polish Armed Forces and allied formations. Many of them received Defender awards and special prizes granted by the Minister of National Defence, the Minister of Entrepreneurship and Technology, the Commander of Territorial Defence Forces, as well as the most prestigious award granted by the Polish President. The Polish President's Award for the product best suited to boosting the level of security od Polish Armed Forces soldiers went to the Maritime Technology Centre in Gdynia for the first Polish Combat Management System named SCOT. It is a modern system based on the latest technologies and IT solutions. This system integrates the most important

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marine subsystems which combat air, submarine and underwater targets, asymmetric threats, conduct technical observation facilities, radars, communication system and services provided by the integrated navigation system. “Polska Grupa Zbrojeniowa is the leader of the Polish defence industry. We offer numerous mature and proven solutions used in the Polish Armed Forces and abroad. However, the world does not stand still. For the Polish defence industry to be competitive and respond to the latest needs of the Polish Armed Forces, it must constantly modernise and invest in new R & D projects. It must prepare and develop new products for future needs. Some examples of such solutions are the products highlighted and awarded today,” said Dr. Jakub Skiba, President of the Board of the Polska Grupa Zbrojeniowa. The fair provided an opportunity to conclude new contracts, hold business meetings with existing clients and

Defence Sector establish contacts with potential partners. The wide product range of the Polska Grupa Zbrojeniowa attracted many distinguished guests, including the Commander of the Armed Forces, Polish President Andrzej Duda, the minister of national defence, Mariusz Blaszczak, and representatives of the armed forces. Dozens of international delegations, hundreds of meetings with industry representatives from around the world and thousands of visitors to the PGZ stand - this is how one can summarise this year's edition. The Group's offer clearly proved interesting for representatives of many European countries, as well as Peru, Vietnam, Pakistan, South Korea, Japan, the US and Canada. Trade negotiations translated into a number of agreements that companies signed with both business partners and military institutes. “I am very pleased with the course of this year's fair. The conclusion of agreements with Boeing, the signing of a contract worth over half a billion PLN for the supply of ODRA radars, produced by PIT-RADWAR and letters of intent signed, among others with Elbit, are just some of our successes at this year's edition at the fair. I am full of optimism that the effects of the talks we have held over the past few days will in the near future translate into further agreements, both with the Ministry of Defence Armaments Inspectorate and with foreign entities. I am also glad that we received so many awards and distinctions at the fair,” Dr. Jakub Skiba noted. At this year's edition, the PGZ Group presented over 300 products - from individual equipment for soldiers, namely handguns, mortars, uniforms and optoelectronics through infantry vehicles, tanks, armoured wheeled transporters to unmanned aerial vehicles, anti-aircraft defence systems and artillery equipment. The PGZ offer included both equipment already in service in the Polish Armed Forces, and products that are only to be implemented or have just been developed by the Group. In addition, dedicated PGZ offices presented the “Ślązak” and “Lifeguard” projects for the construction of modern solutions for anti-aircraft defence systems, unmanned aerial vehicle systems and innovative projects carried out at the • PGZ Group.

Polska Grupa Zbrojeniowa is a leading capital group of the armaments industry operating on the global market. As a major business partner in the Central European region, within its structures it brings together over 60 companies working for the armaments industry, employing approximately 17.5 thousand workers. The company has annual revenue of PLN 5 billion. The Ministry of National Defence and the Polish Armed Forces are the main recipients of the products and services of the combined defence companies. The cooperation of the defence group with the Ministry of Defence and the Polish Armed Forces is a unique opportunity to create conditions conducive for the development of research and innovation in the area of the ​​ armaments industry in Poland. Thanks to modern products which meet the needs of the modern armed forces, it will be possible to further increase the sales volume and profitability of exports of equipment and services offered by the Polish defence industry.

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Zakłady Mechaniczne „BUMAR-ŁABĘDY” S.A. Wykonawca modernizacji czołgów Leopard 2PL, propozycji modernizacji PT-91M2 A1, PT-91M2 A2 oraz remontów sprzętu pancernego w ramach Programu Modernizacji Sił Zbrojnych RP

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Zakłady Mechaniczne ul. Mechaników 9 bumar@bumar.gliwice.pl fax. +48 32 734 65 11

„BUMAR-ŁABĘDY” S.A. 44-109 GLIWICE www.bumar.gliwice.pl tel. +48 32 734 69 71




etween 1 June 2017 and 1 June 2018 more than six million attempts at a cyberattack against Poland were made, which is an average of 700 per hour. The attacks came mainly from the United States, France and Russia. Jerzy Bojanowski comments on the scale of this phenomenon: “Our systems have detected almost 1.5 million cyberattack attempts coming from the US. Interestingly enough, almost a third of them were launched at Christmas. Sixty percent of the incidents involved HTTPS and HTTP traffic, which means that servers were scanned for online applications, whose gaps could be taken advantage of to steal data or take control of specific devices,” said Leszek Tasiemski, Vice-President, R&D at F-Secure (NASDAQ OMX Helsinki Ltd.), a corporation established in 1988. To obtain this information, Honeyspot (a proprietary network) servers posing as easy targets were used to bait cybercriminals. Once attacked by hackers, these servers collect valuable data, which can later be used to develop new methods of countering cyberthreats. As far as attacks coming from France are concerned, most of the incidents involved SMTP attacks, suggesting phishing, which are fraudulent attempts to obtain sensitive data, such as user names, by posing as individuals or institutions. “More than 90 percent of the cyberattacks were launched in the second half of August, with 12 percent coming from only three IP addresses, suggesting that they could have belonged to major organisations using thousands of computers. This could mean that France had been affected by a mass infection at the time. We should keep in mind, however, that online locations tend to be elusive, with cybercriminals often operating beyond national borders. The last “stop” of the attacker is identified as the source of the attack, but it is not necessarily consistent with the physical location. This means that devices in France might have been used by hackers from another country to launch attacks,” Tasiemski explained. As for cyberattacks coming from Russian IP addresses, almost 85 percent of the attempts involved the SMB protocol, which means that hackers were probably distributing ransomware. This traffic was steady

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over the year, with a clear surge in August. Chinese cyberattackers, in turn, have become experts in finding and taking advantage of unprotected database servers (MySQL). “In most cases, they use them to steal valuable information, embezzle money via transaction processing systems (e.g. by disguising as online stores), or take over control of devices,” Tasiemski explained. “By exposing any database directly to public web traffic, the admin commits a fundamental mistake. Consequently, hackers know that if they encounter such a database, it is very likely that it will be poorly protected and misconfigured. Luckily, this is not an issue for banks and other major financial institutions, so our money is safe from this threat”. When it comes to other countries which were listed as the main sources of cyberattacks on Poland, a large majority of detected incidents involved spamming, which could lead to ransomware- or phishing-based attacks. Thanks to the Honeyspot network, we could draw up a map of the main targets in Poland. These included, in order of the number of attacks, Warsaw, Poznań, Kraków, Gdańsk and Wrocław. This can be attributed to the large populations of these cities, and, by extension, the big numbers of devices used in them. Also, communication nodes of Internet providers are located in major cities, generating heavy Internet traffic. “The number of cyberattacks against Poland in the first half of 2018 was two times higher than in the same period of 2017. Perhaps the biggest surprise was that Russia had been less active. So far, this country has been by far the most active location on the map of cyberthreats. Now, we believe that the number of cyberattacks is more likely to be associated with the size of the country, which could explain the increased activity coming from the US,” Tasiemski summed up. Among the prevailing cyber threat trends are phishing, ransomware attacks, and attempts to take advantage of security gaps in applications, mostly in order to take control over devices, especially those • used in Internet of Things (IoT) solutions.


HOW TO MEASURE AND DIAGNOSE PROBLEMS IN INDUSTRIES TO PREVENT FUTURE CYBERATTACKS? Every system requires a proper safety and security architecture to defend it against internal and external threats. Currently the solutions used to identify cyberattacks are purely networkbased. What if we turned the equation around and started from the process itself? PROF. MACIEJ KOŚCIELNY, Institute of Automation and Robotics, Warsaw University of Technology


he security architecture of the industrial control systems (ICS) is built in a few steps. Step one is to choose the norms, standards, and good engineering practices. In this context, it is good to build it on a complex system of American standards, e.g. NIST 800. The second step is to determine the required level of SAL (Security Assurance Level) cybersecurity according to IEC 624431-1. The next step is to choose the components and to build the ICS. Finally, an analysis of the outcomes and verification of the results of work. In enterprises managed by critical infrastructure containing the ICS, it is common to use various ICT systems which serve to transmit, process and store information. Connections between the critical infrastructure and ICT systems are becoming significant enough that it can be stated that protecting the continuity of operation of the infrastructure depends on the resilience to cyberthreats of the IT systems as well. In the face of that, the cybersecurity of industrial installations mentioned in the title is expanded by the issue considered until recently as a separate topic – the security of IT systems. Focusing

on both of these areas, ICS and IT, helps for a proper management of the cyber risks.

ADVANCED ON-LINE DIAGNOSTICS OF THE PROCESS AND CONTROL SYSTEM – IDENTIFYING CYBERATTACKS AND DAMAGES (FAULTS) Both damages and attacks carried out from outside and inside are manifested by various changes in the functioning of the process and control system, differing from their original condition. In automation systems of the industrial processes (SCADA, DCS), and also in the SIS security systems, an alarm system (AS) is used to identify irregular and emergency conditions. The main disadvantage of the AS is the excess of generated alarms. According to EEMUA database, the average daily number of alarms in the petrochemical industry is around 1,500 and in the power industry around 2,000 while it should not exceed 144. Other flaws in the AS are substantial delays in detection. These flaws are a result of using simple conditions to detect emergency states. The AS does not provide

any information pertaining to origins of the emergency conditions. This task is assigned to the process operators. The interpretation of such a large number of emergencies appearing in a short period of time causes a serious problem for the operators. An information overload phenomenon occurs in this situation, which then leads to stress. In these conditions, the operators are not able to formulate a correct diagnosis, i.e. to identify the threats. It increases the likelihood of incorrect protective reactions and their results, cumulating with the previously occurring damages, may cause a serious malfunction. A mechanism of such a negative feedback was a cause of numerous serious emergencies in nuclear and conventional power plants, and in chemical plants, including an explosion in Texaco’s Milford Haven refinery in 1994. Furthermore, if a system is attacked deliberately (cyberattack) there are numerous ways to hide the symptoms of an attack from the operator. An effective recognition of threats (damages, attacks) in control systems requires the use of advanced diagnostics of the process and control system itself, carried out in real time. Damage or attack detection consists of 10/2018 polish market



Figure 1. Processing module of process variables in the form of user-defined signal processing paths

early discovery of discrepancy between the current and the referential functioning, represented by quantitative and qualitative models defining the normal condition. Methods based on models help to detect the damage/attack earlier. The conclusions concerning the reasons of observed discrepancies (damages, cyberattacks) are conducted on the basis of observed diagnostic signals, which constitute detection algorithm outputs and information included in system database relating to relations between symptoms and possible threats. (Figure 1.) A diagnosis is a result of automatic reasoning, i.e. a hypothesis about the damage or attack that has occurred. Based on hypotheses, a system can also aid the operators by giving them operating instructions in case of emergency. Thanks to it, they will be able to make fast and effective protective decisions. They should bring the process back to its normal condition. As a result, safety integrated system is not activated and, thereby, the technological process is neither partially nor entirely stopped. In this way, we avoid major economic losses. Therefore, we can state that risk in terms of safety as well as security can be reduced by the use of an advanced system of on-line diagnostics of the process including the components of the process and the control system with measuring equipment and actuators. Such a system, along with the operators’ interventions, creates an additional protective layer in terms of safety. Moreover, the diagnostics system constitutes the last layer where cyberattacks, including sabotage attacks, are possible to be detected if they go through all the other protective layers. Therefore, it makes it possible to reduce the risk in terms of security. The Institute of Automation and Robotics of the Warsaw University of Technology is currently working on a Cyber-Fault-DIAG system – an advanced diagnostics of cyberattacks and damages. This system is intended to be used in the power, chemical, pharmaceutical, steel, food and many other industries. The base for the new

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• •

• •

system is the experience gained while developing and implementing the advanced systems of damage diagnostics: DiaSter, AMandD, DIAG and OSA. The Cyber-Fault-DIAG system will be available either in a full version or in reduced ones assigned either to detect cyberthreats – Cyber-DIAG, or to detect and locate damages – Fault-DIAG. It is adapted to work with various decentralised systems (DCS) as well as supervisory and control systems (SCADA). The diagnostic system receives the data through digital transmission from the ICS, SIS, drivers and directly from measuring devices. Usually, the communication is unidirectional – from the measuring and control system to the diagnostics system. The operating principle of the system, in a nutshell, comes down to: surveillance over the process and the ICS which monitors the process; analysis of the values and the control signals received in order to verify the correctness of the running control algorithms and the process itself; decision making to leave the process in a safe condition; identifying attacks or damages.

In case of a discrepancy between the normal condition and the observed one, an alarm is sounded and countermeasures are suggested. The main task of the system is to carry out advanced functions of the damage and cyberattack diagnostics. In order to detect attacks or damages, there are methods, based on qualitative and quantitative models: analytical, neuronal, fuzzy, statistical, as well as heuristic using different relations between the process variables. Diagnostics reasoning is carried out with the use of fuzzy logic, according to the optimal method developed at the Institute of Automation and Robotics of the Warsaw University of Technology. Furthermore, the system will be equipped with advanced tools to process the process variables (fig. 6) and to build models needed for on-line diagnostics. The system will be a unique solution on a world scale, including the implementation of a wide range of cutting-edge algorithms in the realm of smart computations used in software intended for modelling, identifying cyberattacks, and detecting and locating damages. The Cyber-Fault-DIAG system, thanks to its open architecture, can be connected to virtually any automation system. Simultaneously, remaining completely independent from control systems, it constitutes a new, untypical protective layer against cyberattacks. It is untypical because it is neither an IT security system, therefore not known to hackers, nor the ICS, therefore not known to automation specialists, which, according to experts, will be an industrial standard in the near future. •

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INDUSTRY JANUSZ ZALESKI, Vice-President of Polish Association of Building Managers


n behalf of the Polish Association of Building Managers, I would like to invite builders, designers, producers and suppliers of construction materials, machines, equipment and tools to the conference “Business Innovation as a Condition for Development and Competitiveness on the Construction Market.” The conference will be held at the Mazuria Congress Centre of Gołębiewski Hotel in the resort town of Mikołajki on November 22-23, 2018. We want those invited to come not only to listen to others, but also to present their own innovation achievements and paths towards innovation. The main manifestation of innovation on a construction site is modern technology in the mechanisation of building processes. It has a great impact on the organisation of construction works, work conditions, the pace of construction, quality of workmanship, safety at work, the company’s image and its relations with external partners and the local community.

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In the face of constant labour shortages, it is absolutely necessary to improve building processes, use modern equipment, temporary structures supporting building work and self-propelled machines, manage building processes through the Internet, control construction by means of GPS markers, and check workmanship precision by means of electronic devices. Innovating in construction is a must. Such solutions as self-compacting concrete, translucent concrete, CO2eating concrete, formwork removable without the need to remove supports, and hydraulic self-climbing systems in a stationary or mobile version are just a few examples of innovative solutions. In order to keep up we have to be ready to take the risk involved in introducing innovation. The Polish Association of Building Managers is an organisation of persons with verified high professional qualifications. The mission of the Association is to bring qualifications of Polish building managers up to European standards and prepare them for conducting busi• ness activity on international markets.

F.B.I. TASBUD S.A. offers comprehensive services to Clients, starting from professional consulting on technical matters, development of investment plans to implementation as a Genaral (Total) Contractor. The company has its own Design Office, which enables it to implement investment projects in all market options: Design Build (DB), Build, Design.


experience W E B U I L D S TA B L E FUTURE


F.B.I. TASBUD S.A. www.fbitasbud.pl




The International Construction Contest "Modernisation of the Year – European Award" Gala Ceremony was held at the Royal Castle in Warsaw on August 24. The contest included 540 projects from Poland and 19 projects from the Czech Republic, Belarus and Ukraine.

enovation and new construction projects were selected from four categories:

• • • •

Renovation of a cultural heritage building New Construction Renovation of a public building Renovation of a small-sized building

Modernisation of the Year has a history of more than 22 years with a constant goal of promoting, supporting and rewarding valuable modernisation projects and new constructions. During this time, it has built a robust brand and took a major part in increasing the awareness of the value of architecture, modernisation of historical buildings, new construction ideas and adaptations. The project originated in Poland and has crossed borders with the idea of spreading modernisation activities in all of Europe. Cooperation with institutions, universities, embassies and ministries from all European countries contributes to project support and offers possibilities of constant development. In a message addressed to the participants, Polish Prime Minister Mateusz Morawiecki said: “The competition is a very important event for construction circles: investors, contractors and designers. Significantly, the organisers do not just honour individual persons but also chambers, local government officials and other institutions which ambitiously and responsibly shape our environment. The awards are a confirmation of the exceptional competencies and achievements of the winners.” President of the Association for the Protection of National Material Heritage Roman Pikula said: “The competition is an opportunity to showcase not just grand investment projects but it also encourages small players to do great things on their scale. Thanks to this, new infrastructure is developed which greatly improves the living conditions of local communities.” This year’s ceremony featured a concert by the Polish National Song and Dance Ensemble “Śląsk” in memory of its founder Stanisław Hadyna. Special guests included President of the Polish-Ukrainian Chamber of Commerce Jacek Piechota, Head of the Certification Centre of the Institute BelNIIS Aliaksandr Milasheuski, First Secretary of the Embassy of the Czech Republic Jan Tomášek, Professor Vladimir Osadchiy from the Odessa State Academy of Civil Engineering and Architecture,

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Minister Advisor Aleksander Czesnowski from the Embassy of the Republic of Belarus in Poland and Secretary of the Embassy of the Republic of Lithuania Vita Naujokaitytė. The winners of the 2018 edition of the competition: • Renovation of a cultural heritage building - reconstruction of the Museum of Decorative Arts in Prague, • New Construction – Clinical Medical Centre, Zdanovichi, Belarus, • Renovation of a public building - renovation of the Potemkin Stairs in Odessa, Ukraine, • Renovation of a small-sized building - Astra Hotel, Spindleruv • Mlyn, Czech Republic.

www.europeanaward.eu, e-mail: office@europeanaward.eu, Phone: +48 52 323 07 16 85-039, Fax: +48 52 322 67 70, ul. Hetmanska 38, Bydgoszcz, Poland




How will new technologies change the world of business, science and medicine in the years to come? The answer to this question is very complex. Trying to do so will not only let us indentify the upcoming changes in key sectors, it will also help us to prepare ourselves in the best possible way. During the Inside Trends Conference held on October 18-19 2018 in Warsaw’s Koneser Praskie Center the world's most interesting current trends will be discussed by extraordinary experts from all around the world.


usiness Insider Inside Trends conference will be divided into three thematic zones: Fintech, Life Science and Business 4.0. During these two days almost 1000 media, science, marketing and business people will listen to the speeches and attend the debates as well as workshops with the speakers including Kevin Mitnick, the world’s best known hacker. He himself has proven on many occasions that he is able to foresee the actions of other people and he can perfectly identify the upcoming changes in his area of business. Participants in Inside Trends will have an opportunity to listen to him and other experts – the innovators who have set new directions in the development of their business. The event will host such great speakers as Thomas Krogh Jensen, Managing Director of Copenhagen FinTech, the organization which is planning to create a fintech hub for the finance sector in the Danish capital. Another very extraordinary speaker is Atanas Raykov, Business Development CIS & CEE Director at Viber, the company which offers the popular messaging service. Professor Felix Oberholzer-Gee from Harvard Business School where his responsibilities include business strategies, especially for the media sector, has also confirmed his attendance. Nowadays almost every business sector has to cope with the fast development of technology. The media and advertising market has already undergone its transformation, yet another one and still much bigger change is about to take place. "This time it will be connected with the growing popularity of voiceuser interfaces, augmented reality and big data," says Jovan Protic, COO RAS Polska. "Blockchain technology, crypto-currencies,

artificial intelligence will change the financial sector forever. Medical diagnostics is currently undergoing transformation and will continue to use technological solutions to a bigger extend. Inside Trends stands for real information and advice which can be followed in the next couple of years and which will help us adjust our strategy for the future.

Anja has worked for the biggest fashion designers and the biggest fashion brands in the world. She will speak about her experience in the fashion world and how she uses her popularity and is involved actively in the development of sexual education and pro-ecological attitudes.


During the conference the world-class experts will try to foresee what will dominate the world in the next two or three years. Inside Trends aims to be one of the most important events discussing business trends in the Central and Eastern European region. The conference is organized by Business Insider Polska, the second largest platform in the BI portfolio (USA being Number 1) in terms of its size and reach. It is estimated that about 1000 business, marketing, science and media people will participate in the Business Insider Inside Trends conference. •

The main subject of the conference is the trends, although the event will be very diversified – mostly thanks to its guests. Other speakers who have confirmed their attendance are: Andreas Gall who has been in charge of technology and innovations in Red Bull Media House for over a decade, Laurenti Arnault, CEO of WT Vox, the company which supports fashion innovations by using the technology of artificial intelligence and virtual reality and Anja Rubik, a supermodel and representative of the media industry.


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OF LIFE “Water - the Source of Life” was the first press conference in Poland organised by Jantar Wody Mineralne Sp. z o.o. at the initiative of Janusz Tomaszewski, President of the company. The focus of the conference was the ways of ensuring adequate body hydration. The meeting held on 13 September at the PAP Press Centre was attended by leading global specialists, who discussed the issue of water’s impact on human health. The following persons appeared among the speakers: Professor Michał Nowicki, M.D. Ph.D., President of the Polish Society of Nephrology, Professor Edward Franek, M.D. Ph.D., Head of the Endocrinology and Diabetology Clinic at the Central Clinical Hospital of the Ministry of the Interior in Warsaw, and Łukasz Jaśkiewicz, Ph.D., student at the Department of Biochemistry of the Gdansk University of Physical Education and Sport.


ater is essential to life, constituting 60% of an adult person's body and 75% of a child's body. Adequate hydration is one of the fundamental principles of a good diet, but why is it so important? Water makes up as many as 70% of human muscles, and its percentage share in the entire body is similar, though it varies depending on age, sex and body posture. Water also performs a purifying function as toxins and waste metabolic products are excreted with it. “The ability to maintain water and sodium balance is crucial to sustaining human life. The recommended daily amount of liquids (in any form) is approximately 2.5 litres. Apart from water, liquids include soups and juices contained in fruit and vegetables. Increased quantities of liquids should be consumed at higher temperatures and during physical activities. The American Institute of Medicine recommends an average daily consumption of 3.7 litres for a healthy adult man, and 2.7 litres for a healthy adult woman. These quantities need to be adjusted depending on physical activity, heath status, climate conditions, altitude above the sea level and water content in the consumed food products,” said Professor Michał Nowicki, whose major scientific interests include metabolic disorders (in particular carbohydrate as well as water and electrolyte imbalance) in patients suffering from chronic kidney diseases and hypertension. He is also an amateur runner, having completed 17 marathons and ultra-marathons, including the New York Marathon (twice, in 2013 and 2014). The Professor listed the major causes of water and electrolyte imbalance among amateur sportspeople (participants of marathons and ultra-marathons, triathlonists and cyclists). These are hypernatremia, caused by dehydration, the consumption of drinks containing high sodium levels or sodium excretion defects, as well as hyponatremia, with a major cause being the consumption of drinks containing small quantities or no electrolytes, especially combined with heavy perspiration (a significant loss of sodium with sweat). The expert stressed that practising sports, including the most intensive ones, is now becoming increasingly popular. More and more

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people are willing to attend marathons, or even ultra-marathons, cycling marathons and triathlon competitions. “Sportspeople sometimes faint, for example during marathons, one of the reasons being dehydration. Its symptoms include agitation, muscle cramps and tremble, as well as confusion, fever and coma. In extreme cases, cerebral haemorrhage may occur, caused by decreased brain volume,” Professor Nowicki explained. “Ensuring proper hydration before, during and after physical effort is critical to maintaining motor efficiency. Any intensive physical activity lasting more than 30 minutes requires the supply of water and/or isotonic drinks. The decrease of body weight by 2% during a physical activity constitutes the limit beyond which the aerobic performance of muscles gets impaired, especially with high temperatures and humidity. The best and the simplest method to assess the hydration level is to check body weight, urine colour (density) and thirst,” Professor Nowicki concluded. The question of supplementing water and sodium deficits in diabetic patients was addressed by Professor Edward Franek. “Water is by far the most natural drink. Sweetened beverages, including sweetened water, are not recommended either for diabetic patients, given their high sugar content, or for other patients, given the risk of inducing diabetes. Research has shown that optimum water consumption may foster a better blood sugar control and the body's response to insulin,” he stressed. The Professor further stated that avoiding any extremes, both in drinking water and practising sports, is the rule of thumb. Łukasz Jaśkiewicz said that the body water deficit should not exceed 2% of body weight. “One should remember that the temperature of the body grows by 0.2 degrees with 1% of the body weight lost by a sportsperson,” he added. The specialist further noted that sodium is the major electrolyte that is lost through sweating. Its concentration, however, may vary strongly among sportspeople, ranging from 200 to over 2000 mg/l. “For this reason, some people should consume drinks with increased sodium content. Unfortunately, most mineral waters contain insignificant amounts of this element, which is why • drinks for sportspeople may often prove useful,” he explained.



Jantar Wody Mineralne President JANUSZ TOMASZEWSKI talks to "Polish Market" about his company’s product range, the health values of individual products, and its educational activities, whose aim is to help Poles lead healthier lives. Your company's slogan is “Jantar water - nature's treasure from Kołobrzeg.” The water comes from one of the most popular and admired health resorts on the Baltic Sea. Where is it drawn from, and what are its properties? Jantar Water is a medium-mineralised relict water displaying excellent properties. It is a naturally pure water with a unique mineral composition. It is drawn from artesian spring No. 39 “Jantar”, situated in the heart of the Baltic Sea Kołobrzeg Health Resort. It is also enriched with minerals from Permian salt deposits, which have been accumulating on the sea floor for millions of years. It is rich in electrolytes (sodium, potassium, calcium, magnesium) and numerous valuable minerals, all of which have a beneficial influence on our health. It hydrates our bodies and quenches our thirst. Jantar Water has a healthy alkaline 7.4 pH (at the spring), which can prevent the body from becoming overly acidic. The concentration of iodine and selenium is beneficial for thyroid and brain functions. It is recommended for persons leading active lifestyles and caring for their health. It can be used every day both by adults and children. It has been bestowed the recommendation of the Polish Diabetes Association, as water suitable for daily consumption by diabetes patients.

Why is Jantar Water ideal for athletes and people who lead an active lifestyle? Athletes and persons leading an active lifestyle are at risk of hyponatremia, which is a condition characterised by reduced sodium level in the organism, with values below 135 mmol/l. Hyponatremia is very dangerous to our health, because it can even result in death. During intense physical exercise, we sweat out large quantities of sodium, chlorine and potassium. As JANTAR CHAMPION SPORTS WATER is water rich in chlorides, hydrogen carbonate, sodium and calcium, and it hydrates human organisms quickly and effectively, it is the first, and, so far, the only water to receive a recommendation from the Sports Institute - State Research Institute, and from the Polish Sports Dietetics Society, as water suitable for professional and amateur athletes.

In what way is your water beneficial to the organism? Who can benefit from drinking your water? For what diseases is it recommended? Jantar Water has a beneficial influence on our organisms, as it contains minerals

To whom is your Premium range addressed? Our Premium range is sold in dark-green bottles with a golden paper label, with a capacity of 0.3 litres. This designer bottle was created in line with the most recent trends,



produced in the process of Permian salts’ being dissolved by relict water. Our water is exceptionally pure. The hydrogeological structure of the spring makes our water free from any heavy metals and radioactive elements. Moreover, there are no arable lands within the Kołobrzeg Health Resort area, which means that there are no pesticides, nitrates or nitrites – very-dangerous substances used in the production of artificial fertilisers – to permeate the spring. PM


and with great attention to detail. This unique design emphasises the luxurious character of our product. It fits in perfectly in elegant restaurants, stylish bistros and hotels. It is also popular with sophisticated water connoisseurs. Your company also sponsors cultural and social events such as the Kołobrzeg Suspense Film Festival ... The Kołobrzeg Suspense Film Festival is a very interesting cultural event held in our city, and for that reason we decided to take an active part in it. We search for intriguing cultural and sports events, and support them by providing our water. Jantar is aiming to participate in events where we can not only promote our water but also educate consumers on proper organism hydration. We take the opportunity to dispel myths concerning water which have been replicated in the media for years. This was the focus of an all-Polish conference addressed to journalists which we recently organised. We wish to contribute to raising awareness of the issue. • PM

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The tasks under the project entitled “Independent Poland Tastes Great” (Niepodległa Polska Smakuje) have been carried out since June, and a number of elements of the promotional campaign have already been completed.


he image concept for the “Independent Poland Tastes Great” project was developed, and information brochures on individual Sector Promotion Funds, advertising materials and large-format graphics promoting all product sectors covered by the project were printed. We released an impressive video presenting individual products which represent the sectors participating in the project, and which are being promoted as part of the campaign. The campaign promoting products and quality systems was launched in seven locations across Poland. An exhibition entitled “Know Good Food” (Poznaj dobrą żywność) was organised in Warsaw on the site of the Służewiec Racetrack by the Ministry of Agriculture and Rural Development. The event was aimed at promoting Polish high quality food, regional, traditional and organic products. In turn, the 25th Regional Farm Animal Exhibition and Agricultural Consulting Days were held on 23 and 24 June this year in Szepietowo near Białystok, featuring several hundred Polish and international exhibitors who showcased around 1000 farm animals. This two-day event, filled with shows, competitions, educational and trade meetings, is the largest undertaking of this type in the agricultural sector in north-eastern Poland. Between 30 June and 1 July, the “Independent Poland Tastes Great” Pavilion was open in Minikowo near Bydgoszcz, where the Agro-Tech International Fair of Agricultural Industry was held. It is a dedicated exhibition addressed to agricultural-industry manufacturers and experts, covering a wide range of topics. The fair is organised by the Kujawsko-Pomorskie Agricultural Consulting Centre, and is the largest agricultural event in the Kujawsko-Pomorskie Province. Polish food was also promoted on 7 and 8 July in Augustów, during the Agro Eko Tourist Industry Fair held in one of the most

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prominent Polish tourist resorts, and a meeting place of summer sports’ enthusiasts. Each year, the fair attracts exhibitors and manufacturers from eastern Polish regions, promoting regional enterprises. Thousands of visitors came to the white pavilion, where they could take part in competitions, cookery shows and food-tasting, during the largest event dedicated to agriculture in the Podkarpackie Province held between 25 and 26 August this year during the National Simmental Exhibition in Rudawka Rymanowska, organised under the patronage of the Polish Simmental Cattle Breeders Association (PZHBS). The exhibitions and shows presenting farm animals and Polish achievements in animal breeding featured the celebrations of the 100th Anniversary of Farm Animal Breeding in the Carpathian Mountains, where the potential of the project's promotional activities in the field of quality systems was presented. The meetings at the pavilion were an excellent opportunity to exchange views and experience for all the participants, including farmers, animal breeders, representatives of breeding associations, agricultural service bodies, and research staff of institutes and universities of agriculture. The next event housing the “Independent Poland Tastes Great” pavilion was the 5th Małopolska Food Fair “Taste food with the University of Agriculture”, held between 29 and 30 September 2018. Thanks to the contributions from the funds for the promotion of pork, beef, poultry, lamb, milk, fruit and vegetables, Kraków residents had an opportunity to watch cookery competitions featuring the best Kraków-based authors of food blogs. Moreover, students of foodindustry schools competed in preparing culinary surprises based on the region’s cuisine. The best Polish chefs prepared dozens of dishes and desserts served free-of-charge to visitors.

Ecology The last event featuring the “Independent Poland Tastes Great’ pavilion is the 13th Autumn Horticultural Fair in Boguchwała near Rzeszów, combined with the Podkarpackie Vintage Feast, and the 2nd National Rabbit Exhibition. The event, organised at the Podkarpackie Agricultural Consulting Centre, will be held between 6 and 7 October this year. The “Independent Poland Tastes Great” white pavilion was divided into 8 product zones, the tasting zone and knowhow support zone. The visitors had the opportunity to taste Polish products based on meat from Polish-breed animals, and products containing Polish milk, fruit and vegetables. The promotional activities carried out in every location involved cookery competitions held in the tasting zone. Consumers, farmers, manufacturers and food-processing industry representatives visiting the know-how support and product zones had the opportunity to receive assistance from experts. The big screen over the pavilion, showing “live” broadcasts from the events inside, was a perfect device for communication between the organisers of promotional activities and visitors. The events were an opportunity to distribute large numbers of questionnaires which are a valuable source of information on the Poles’ knowledge of quality systems. Further promotional activities will reach far beyond Polish and European boundaries. Promotional meetings abroad, the culminating points of the project, will be held on board the “Dar Młodzieży” sailing ship in China, Singapore, Indonesia and Japan. The Independence Cruise constitutes and opportunity to not only show Polish history, but also the present times and the future of our country. The sail ship will house meetings - receptions addressed to target groups, combined with the tasting of Polish dishes prepared by Polish chefs. About 150

people will take part in each of the events. The schedule of meetings held in the destination ports is as follows: Jakarta in Indonesia (02-05 October 2018), Singapore (09-12 October 2018), Shanghai in China (02-05 November 2018), and Osaka in Japan (13-16 November 2018). Each of the promotional events on board the ship will feature presentations of individual sectors in the form of videos screened in the tasting zone available to everyone. An information zone will be prepared, where the visitors will have access to details on the history and tradition of Polish cuisine, and on our products manufactured in line with Polish / European quality systems, including organic products. Experts representing each of the 5 main project sectors will be waiting for visitors in the information zones. Emphasis will be placed on the promotion of Polish food, including pork, beef, lamb, poultry, vegetables and fruit, together with products made of meat, milk, vegetables and fruit. The promotion will consist in a presentation and tasting of dishes prepared from Polish products, tailored to a given market. The dishes will be made by Polish chefs with vast experience in promoting products abroad. Each dish will be accompanied with guidelines and information on which products were used for preparing it. A crucial part of the meetings involves business talks held by representatives of Polish food sectors and potential business partners taking part in the events on board the ship in China, Singapore, Indonesia and Japan. Polish entrepreneursmanufacturers representing the sectors covered by the project were invited to take part in the events. Meetings on board the sailing ship, and participation in the missions, will be an opportunity to get to know the key representatives of local business and administration circles, an occasion for market reconnaissance and for making new business contacts. •

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Cultural Monitor




John Coltrane (1926-1967,) an American saxophonist and composer, is one of the forerunners of free jazz and one of the biggest jazz artists ever. In the 1960s, he transformed jazz into a sophisticated medium of expression worthy of high art. This latest album by Coltrane brings us an unknown recording session taped in his prime. He is accompanied by the Classic Quartet featuring pianist McCoy Tyner, bassist Jimmy Garrison and drummer Elvin Jones. The recording had been made on March 6, 1963, ahead of Coltrane’s most famous album, "A Love Supreme," considered one of the most famous jazz stories, was released. The producer destroyed the original session recording, but a copy survived. Apparently, it stayed with family until it was recently discovered. This is undoubtedly a treat for admirers of old, and yet very modern, strong jazz, which draws on jazz tradition. These works have definitely stood the test of time. Coltrane is an undisputed legend, and a considerable part of this set is now an absolute classic. In this music, true freedom (and talent) make each work and improvisation a tiny wonder.

KAMASI WASHINGTON - "HEAVEN AND EARTH" – DISTRIBUTED BY SONIC - 3CD Kamasi Washington, born in 1981, is one of the hottest names on the contemporary jazz circuit. His previous album "Epic" made him almost a jazz Messiah, mentioned by many among the most accomplished saxophonists and artists who have restored jazz to its original glory. Three years after that CD was released, he has decided to regale us with another full-size (3 CD) album. It is divided into several parts in which Washington confronts reality with the cosmic theatre. In this way, the artist deals with the current global chaos and presents his vision of the future. It is again a very successful, smart and intelligent project, deeply immersed in jazz, soul, pop, and classical tradition, and performed with unprecedented panache: there are choirs, as well as a symphony orchestra. It all comes across as very clear-cut. The sound of the entire band is impeccable. There are some incredibly convincing improvisations. Each sound is poised on the borderline of simplicity, clear melody, magic and acrobatics. For me, it is the jazz-album of the year - a must to grace the shelf of every jazz fan.

MARCUS MILLER - "LAID BLACK" – DISTRIBUTED BY UNIVERSAL MUSIC POLAND – CD Originating from the New York Jamaica neighbourhood, Miller is one of the best jazz bass players in the world. He has recorded about 30 solo albums, but his bass playing can be heard on over 400 albums. The latest release is the successor to "Afrodeezia" brought out 3 years ago. As the artist himself says: “‘Afrodeezia’ was a great musical journey. By cooperating with musicians from different parts of Africa and the Caribbean, I followed the path of my ancestors. On ‘Laid Black’ I'm going back to the present. There's hip-hop, soul, funk, R&B and, of course, jazz." The artist also invited several prominent guests, such as: Take Six, Jonathan Butler, and Selah Sue. You do not need to convince anyone to listen to Miller. This wonderful, joyful music just flows with effortless ease. Miller may sound a little more subdued than on previous albums, but he still eclipses many a bass player. Even for those who know his music very well, it will be a journey full of surprises. It promises to be a discovery for those not normally into jazz. At the end of November, a real concert feast is being prepared for fans of the legendary bass player. As part of a world tour, the artist will visit five Polish cities: Gliwice, Poznań, Gdynia, Warsaw and Wrocław.

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Cultural Monitor MŁYNARSKI-MASECKI JAZZ CAMERATA VARSOVIENSIS - "FOGG - PIEŚNIARZ WARSZAWY" - AGORA - CD As part of celebrations marking the 74th anniversary of the Warsaw Rising, one of the busiest and talented duets of the Polish jazz scene (MłynarskiMasecki) prepared a project devoted to one of the greatest Polish singers and Varsovians, the late crooner Mieczysław Fogg (1901-1990). The album, a joint project by the excellent pianist Marcin Masecki, and the music producer Jan Emil Młynarski, features top female singers and actresses - Agata Kulesza, Joanna Kulig, and a young, talented baritone - Szymon Komasa. During his lifetime Fogg became synonymous with the best in Polish singing tradition. The artist lived through the entire 20th century, with all its tragic twists of history. The most important thing for him was the song, and its power to change mood and influence people. The album contains a selection of his finest pieces from all periods of his career. These songs - and there are such pearls among them as "Tango Milonga" (known internationally as “Oh, Donna Clara”), "I have time, I will wait" and "Song about my Warsaw" - have not lost any of their artistic value. Such songs give music lovers the rare opportunity to dream of something better, and often unreachable. It is a combined success of both Fogg, and of these excellent young artists.

PIOTR RODOWICZ AND FRIENDS - "SEWERYN KRAJEWSKI SMOOTH JAZZ 2" - POLISH RADIO - CD Two great musicians -featured in the title - and plenty of great music. Piotr Rodowicz is an acclaimed jazz bass player, composer, arranger and teacher. Seweryn Krajewski is one of the most important composers in the history of Polish pop. The album carries on a project started 10 years ago. It contains 10 songs written by Krajewski and recorded by Bogdan Hołownia and Piotr Wrombel on the piano, Mariusz Mielczarek on the saxophone, Robert Murakowski on the trumpet, Kazimierz Jonkisz and Grzegorz Masłowski on the drums and the leader on the double bass. It is a special tribute to Krajewski as a Polish pop icon. Rodowicz offers intriguing and creative versions of Krajewski’s songs. It all sounds very refined. There is a masterful balance between the ballad elements, blended with some unique qualities of well-known Polish jazzmen, which gives the music exceptional splendour. Each time you listen to this CD, you are captivated by its fine form and its attention to quality.


wo major music events were held in Warsaw in late August and early September, "Chopin and his Europe" and “International Chopin Competition on Historical Instruments” - both organised by the Fryderyk Chopin Institute. The "Chopin and his Europe" festival took place in Warsaw for the 14th time. The venues were the Teatr Wielki Polish National Opera, the Witold Lutosławski Polish Radio Concert Studio, the Royal Castle, and the Holy Cross Basilica. The aim of the festival was to promote Polish music culture by holding events of the highest artistic calibre in Warsaw, to make them part of the calendar of prime European music events. The main intention was to present Chopin's work in a broad cultural context, to highlight the multiple sources of his style, to bring out relationships both with his contemporaries and his followers through a broad spectrum of European works from the 18th century to the present day. This year, all of the concerts took place under the slogan "Independent Poland. From Chopin to Paderewski." Independent Poland is the name of a government programme of celebrations marking the 100th anniversary of the regaining of independence by Poland. It is highlighted by two iconic figures for Polish culture - Chopin and the pianist virtuoso Paderewski. Polish music dominated the programme of this year's festival. Its various forms and genres were represented: from song and instrumental miniature, to wellknown and unknown symphonic pieces and chamber music, to the opera on the eve of Stanisław Moniuszko Year and works by emigre composers Roman Palester and Andrzej Panufnik. The first performance of Stanisław Moniuszko's "Halka" in the Italian language and featuring instruments from the period took place in Warsaw. As part of the presentation of Polish music, concerts of music by Mieczysław Karłowicz and Ignacy Jan Paderewski were performed by the Russian National Orchestra and London’s Royal Philharmonic. The grand events of the festival included a monographic concert featuring Dang Thai Son, who performed both solo works by Ignacy Jan Paderewski and his Piano Concerto, released on a CD after a sensational performance with the Philharmonia Orchestra conducted by Vladimir Ashkenaze at the 2015 Festival. This time the pianist performed with the Sinfonia Varsovia under Jacek Kaspszyk. There was also a concert of Agnieszka Duczmal's Amadeus orchestra. The festival tradition includes premiere performances. In the 2018 edition these were Krzysztof Penderecki's Polonaise for symphonic orchestra, commissioned by the Institute, and the world premiere of “Fireworks” by Agata Zubel, performed by the European Union Youth Orchestra conducted by Gianandrea Noseda.

THE FIRST INTERNATIONAL CHOPIN COMPETITION ON HISTORICAL INSTRUMENTS The event was held September 2-14 at the National Philharmonic in Warsaw. The idea was to promote the use of instruments from the Chopin era. The largest group of artists qualified for the Contest represented Poland. The Competition also featured pianists from Japan, Russia, China and France, the United States, Romania, Belgium and Ukraine. The international jury included Claire Chevallier, Dang Thai Son, Nikolai Demidenko, Nelson Goerner, Tobias Koch, Alexei Lubimov, Janusz Olejniczak, Ewa Pobłocka, Andreas Staier and Wojciech Świtała. The schedule of the Competition included three stages: the first and the second were solo recitals, whose repertoire - apart from Chopin's works - included selected works by Bach, as well as polonaises by Polish composers written in the first half of the 19th century. In the third stage, six finalists performed Chopin's chosen works with the orchestra, accompanied by the legendary Orchestra of the 18th Century. The contestants used grand pianos from the Institute's collection: Erard from 1838, 1849 and 1858, Pleyel from 1846 and 1854, and Broadwood from 1843. There were original instruments and copies of period instruments imported by renovation specialists and European collectors.

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WŁODEK PAWLIK, an outstanding pianist, composer, the first, and so far the only Polish Grammy winner in the jazz category, talks to “Polish Market’s” Maciej Proliński.

After the concert with representatives of the Inglot company, the sponsor of the concert.

At the end of May you played two concerts at the legendary Blue Note jazz club in New York. Is jazz played differently in New York than in Warsaw, Wrocław, or the suburb of Podkowa Leśna? No, it’s not. After all, you’re the same person and musician. But emotions, and I say this without a hint of exaggeration, at the Blue Note, are quite unique. It is a temple of jazz. The Blue Note of the 1950s and 1960s is one of the most important places, who knows, maybe the most important, where you could hear Monk, Davis, Coltrane and all the other jazz giants. From this perspective, performing there with my trio - with Paweł Pańta on the double bass and Cezary Konrad on the drums, and our friend we won the Grammy together with - the great American trumpeter Randy Brecker - was something absolutely special to us. It is worth noting that Randy is an icon of the PM

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New York jazz scene and he first performed in his city with Polish musicians. These two concerts were a great artistic, emotional and symbolic experience. There, I just feel the spirit of jazz, the music that has shaped me - my way of life and artistic personality. And what is played today in New York jazz clubs such as the Blue Note? The concept of jazz in the past few decades has probably evolved there, too… The Blue Note primarily plays host to the greatest stars of American jazz, so their music is naturally associated with black cultural heritage. It is very rare for someone from outside America to appear there. I am more than happy that those in charge of the club decided to invite my band. It was a great honour for us. Jazz was born in the United States. Its roots are blended with blues, gospels, negro spirituals. PM

America is the homeland of ragtime, Dixieland, swing, funk, R&B, fusion, soul, rock, hip-hop, etc. Clubs like the Blue Note have had a huge impact on creating the most important phenomena and showcasing artists from the whole spectrum of jazz music. But when it comes to broadening the sphere of jazz, I just think that the further away from tradition, the worse it is. At the Blue Note itself, the programme is fairly conservative from the European point of view. They tend not to spotlight musicians who represent radical trends. In the United States, jazz is a music blended with its everyday reality. Jazz standards are played on the streets, in hotels and in shops. Jazz is everywhere, because it is the music code of North America. New York jazz clubs determine what is the most important and most valuable in jazz and is associated with the spirit of swing derived from the tradition of black blues. It happens especially in Europe that musicians create hybrids - experiments with elements of improvisation - which are far removed from jazz tradition. In such cases, it is cheap gimmickry and it has nothing to do with the spirit of jazz, with the spirit of blues. The slogan "improvisation" is a convenient excuse for many so-called avant-garde musicians, to be associated with a popular genre of jazz at all costs. I am thinking above all about performers who represent what’s known as European free jazz, which is deeply rooted in Germany and where it developed. This fairly abstract approach to jazz, can also be found in the music of many Polish musicians. When it comes to me, music has seduced me in a very natural, intuitive way, through my sensitivity, and not through pseudo-intellectual speculations. Jazz is noble and very emotional. It also requires musical knowledge and even virtuoso skills, derived from very specific melodic-harmonic-rhythmic methods, which are left behind by the masters of this genre. Various eccentricities and extravagances are, in sum, an insignificant complement to the mainstream, but add additional colour to the whole phenomenon.


Let's come back to this unique New York concert – it was held on the initiative of the Polish cosmetics company Inglot. Do you think that in Poland things are changing for the better in terms of a twoway relationship between art and business? Inglot has been associated with the world of jazz music for years now. It was also the official sponsor of this year's edition of the Blue Note Jazz Festival in New York, which my band inaugurated, which is worth noting. This festival lasts throughout June and has been regularly organised since 2011. It is one of the largest jazz events in the United States. The Inglot company is a well-known cosmetics brand on the American market. Its boss offered me a part in the festival it sponsored. Hence, we performed there as the first Polish band. But our example of successful cooperation is unfortunately very isolated. Polish business, as well as the Polish state, are doing very little in these terms. Meanwhile, the most valuable and universal things in the world of art have sufficient support abroad. When it comes to Polish culture, the money is invested in events which attract Polish Americans and feature music by Chopin, Polish folk music and Polish food such as bigos. PM


Will there be a follow-up to this first gig at Blue Note? Yes, we’ve been invited for future concerts at the Blue Note.

But things are easier for Grammy artists, aren’t they? Is the Grammy award a watershed in your career? Sure. The Grammy is a stamp of quality and undoubtedly prompts a surge in popularity. And it also gives me more freedom as an artist. I don’t need to think in terms of whether the culture minister will give me a grant or not. Polish jazz developed after the Second World War, in communist Poland. Is it not one of the paradoxes of our history, or a sign of how powerful art is? It is a paradox that the past decades generated such personalities as composer Krzysztof Komeda ... And now, when everything is available - there are no limits, there are opportunities to promote Polish culture by the state, through private sponsors, we do not give the world artists like that. After the changes of 1989, we have lost a lot, in terms of, let's say, the continuity of art and music. Polish Radio, Polish Television in the 1970s and 1980s were the main media. They broadcast the most important concerts and festivals in prime time. All this is a thing of the past, and we are all responsible for it. The fact that there is not a single normal jazz club in Warsaw is also a dramatic proof of that. PM

They say that jazz is "difficult…" Good. Life is not as simple and boring as easy-listening disco polo music promoted today by Polish Television. Jazz is not a definition, it is a sphere of experiencing music in noble, lively and enchanting way. It is an antidote to an artificial, soulless world. Everyone’s invited to experience it. PM

In an earlier interview, Jola Pawlik, your wife, pianist and manager of the Pawlik agency, spoke about a planned re-release of your archive recordings from the 1980s. Is it still on? There is a chance, but there is also a "here and now." We live a highpaced life, we try to meet numerous concert obligations, and we don’t have any complaints. It’s still a bit abstract for me to think about a retrospective. You need to take a breath, take stock and listen again to your past recordings. And now I’m always on the road. PM

Włodek Pawlik at the Blue Note – Photo: Jolanta Pawlik I am a supplier of certain ideas contained in sounds. I do what I want. I’ve never felt the need to define myself. I draw inspiration from various sources and I don’t think in terms of a single music genre. I treat music writing as opening new chapters. Let's talk about what’s happened and what’s still to happen this year. In the spring, at the invitation of the charge d'affaires of the Polish embassy in Latvia, Ewelina Brudnicka, we played in Riga with my trio. I’m very happy that in these "official circumstances" Polish jazz functioned extremely well. We also performed in Vilnius in Lithuania at the centenary jazz concert where the enthusiasm of the local audience was exceptional. I want us to get through to our neighbours with our music, to reach out to the sources of our identity and history. As part of the Polish Royal Opera Festival, which was held in Warsaw in July, my oratorio "Song of a Hidden God" was performed by soloists, choir, the Polish Royal Opera orchestra and my trio. It was set to a poem by Karol Wojtyła from 1944. It is an incredibly powerful, intellectual and beautiful poem. For the first time, this oratorio was performed at the Teatr Wielki Polish National Opera in Warsaw more than ten years ago. The work is part of a larger whole, the "Via Sancta" opera directed by Ryszard Peryt. We will perform my cantata, "Thinking of the Homeland", whose premiere took place at the Teatr Wielki in Warsaw two years ago, in Wrocław and Białystok this autumn. Again with my trio, soloists, choir and symphony orchestra. The movie "The Beast" by Aleksander Hertz from 1917, digitally restored by the Filmoteka Narodowa Audiovisual Institute, opens the 18th New Horizons International Film Festival. Only an American export version of the movie survived, entitled "The Polish Dancer." It is currently the oldest surviving movie starring the Polish Hollywood star Pola Negri and the only example of her early career. The show will be accompanied by my own music. I wrote incidental music for the whole hour of the film. I recorded the score on tape - I used all the musical and sound effects available to me, including computer effects, sounds, bits of funky music and Polish folk music. It's such a postmodern collage, including my piano music. This improvisation completes a carefully arranged soundtrack. PM

Is it going to be released? Yes. The Filmoteka Narodowa - Audiovisual Institute wants to release it. Most likely, a CD with this music will be out soon. And it will be music with a few surprises. • PM


You are one of a few artists in Poland to successfully combine working with classical, jazz and film music. It's a vast and stylistically diverse body of work ...

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POLISH JAZZ FOR ASIA Nine Gates Festival, Beijing 2017 – Rafał Sarnecki Sextet; Photo: M. Głowiński / Jazz Po Polsku.

Six Polish jazz bands of the younger generation are now on a Jazz Po Polsku (Jazz Polish-Style) concert tour of China and South Korea to last until November. It ties in with world celebrations of the 100th anniversary of Poland regaining its independence. The artists are presenting their own repertoire, as well as pieces inspired by the work of iconic Polish jazz musicians. Tour venues include Guangzhou, Beijing and Chengdu. Maciej Proliński takes a look at what’s in store for Chinese jazz fans.


The aim of Jazz Po Polsku is to promote improvised Polish music outside the country, as a genre which has many years of tradition and history. The project also helps in establishing international cultural cooperation and integrates artists from many countries, "says project originator Jakub Krzeszowski. "This year's edition of Jazz Po Polsku refers to the celebration of the 100th anniversary of the rebirth of Poland as an independent state. On this occasion, Chinese audiences will have the opportunity to listen to six Polish jazz bands which will perform both their own music and music inspired by the works of Poland’s most famous composers, including Krzysztof Komeda, Bronisław Kaper, Henryk Wars and Zbigniew Namysłowski. The project is financed by the Ministry of Culture and National Heritage as part of the ongoing 2017-2021 programme of celebrations, and is conducted within the Adam Mickiewicz Institute "Cultural Bridges" project. The performances are organised in cooperation with the Chinese Association of Jazz Musicians (CJA) and supported by the Polish Institute in Beijing, the Polish Embassy in China and the

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Consulates General in Chengdu, Guangzhou and Shanghai. This year's Jazz Po Polsku concert tour kicked off with performances by guitarist Rafał Sarnecki’s quintet in two cities in the Sichuan province - Chongqing and in Chengdu (September 15, 17). On the bill were original works from his latest album "Climbing Trees", as well as Polish jazz classics, including those inspired by the works of Bronisław Kaper and Zbigniew Namysłowski. Krakow's High Definition Quartet, which will play in Beijing and Changchun in October, will perform a special programme entitled "Dziady" (Forefathers’ Eve), dedicated to works by 19th century national poet Adam Mickiewicz. According to a press release, the musicians make an "attempt at a musical interpretation of the Old Slavic rite of communing with the souls of the dead" which features prominently in Mickiewicz’s work. In addition, the Tomasz Chyła Quintet under charismatic violinist Tomasz Chyła, made up of younger generation musicians coming from the thriving Gdańsk-GdyniaSpot jazz scene on the Baltic sea coast, will also play in China as will a jazz band from Wrocław which grew out of the hip-hop scene,

and Electro-Acoustic Beat Sessions (EABS) who will perform film music by Krzysztof Komeda. The concert tour will end with concerts by the outstanding singer Monika Borzym accompanied by the Fusion Strings Quartet, which includes musicians of the Beethoven Academy Orchestra. Their music will be set to moving lyrics by poetess Anna Świrszczyńska. Chinese jazz fans will be introduced to pieces coming from "I am space" recorded last year with John Scofield and Wojciech Waglewski, which won a Platinum Record award in Poland. The group will play in Harbin on October 28, Shanghai on November 3, and Hangzhou a day later. In October, at the Jarasum Jazz Festival in Korea, Paweł Kaczmarczyk Quartet will play a "Vars & Kaper: DeconstructiON" gig devoted to Bronisław Kaper and Henryk Wars, two Polish composers whose works were used in over 200 US films. "Fans of Miles Davis and John Coltrane will probably be surprised to find that the famous jazz standards "On Green Dolphin Street"and "Invitation " were actually written by Bronisław Kaper,” Kaczmarczyk says. The artist is one of Poland’s best pianists. He is also a composer, soloist and sideman. •


THE WORLD IN THE RAIN IS BEAUTIFUL, TOO The outstanding jazz composer and trumpeter Tomasz Stańko died on July 29. He was buried at Powązki cemetery in Warsaw. "Today, our hearts are burning. Anyone who has heard the sound of Tomasz's trumpet feels that loss. His music was recognised after just a few notes were played,” Tomasz Tłuczkiewicz, vice-president of the Polish Jazz Association, said in his farewell address. Maciej Proliński looks back on Stańko’s career.


he New York Times once described Tomasz Stańko as “a trumpeter of the spirit of freedom, thought and jazz.” Perhaps that is the best way of putting it. Stańko did indeed symbolise the freedom of Polish jazz artists under communism, and his music was thoughtprovoking. He released a large number of albums at home and abroad, gave countless concerts and thus became one of the greatest ambassadors for Polish art abroad. He was a versatile composer and trumpeter with unique sensitivity, great intuition and his own sound. He recorded and performed with the most prominent musicians such as Krzysztof Komeda, Zbigniew Seifert, Don Cherry, Jan Garbarek, Dino Saluzzi, Gary Peacock, and Dave Holland. He never judged anyone, unlike many other artists of his day. In fact, in communist times, some musicians were members of what were known as vetting commissions which ruled who was an artist and who was not – not based on merit but in line with criteria imposed by the communist rulers. He never compromised the music standards he adhered to, unlike many of those who sat on the vetting commissions. For decades he was fortunate enough to enjoy a status which allowed him to choose who he wanted to work with and which country he wanted to travel to. In 1976, he released a CD for the elite German label ECM for the first time. It was called "Balladyna." In the 1990s, and in the following years, he released more records under that label, including "Soul of Things", "Lontano", "Dark Eyes" (music from this album is used in the soundtrack of the US "Homeland" series), and “Suspended Night."A track from this album -"Suspended Night / Variation viii" - found itself in an anthology published by the world's largest educational and research complex, the Smithsonian Institute. Out of the album’s 100 works, there are

only a handful of European recordings. The idea of this ​​ publication is primarily to showcase the greatest legends and innovators in the history of jazz. Another album, "Wisława," was dedicated to the Polish Nobel Prize winner in literature Wisława Szymborska, with whom Stańko had the honour to collaborate. His last album "December Avenue" was brought out last year. Stańko also wrote music for the Warsaw Uprising Museum. The song "Freedom in August" was composed and recorded especially for the Museum in 2004. Stańko’s music can be heard throughout the exhibition. Its first performance accompanied the opening ceremony of the museum. Stańko also wrote incidental music for many Polish films, starting in the 1960s, with works by filmmakers Janusz and Andrzej Kondratiuk, followed by animated films by Mariusz Wilczyński. Over the last 15 years, with the help of his daughter Ania, he ran the Jazz Autumn festival in the city of Bielsko-Biała. It became one of the most important jazz festivals in Poland, recordings from which came out under the ECM label. Such stars as Ornette Coleman, Chick Corea, Cecil Taylor and Pharoah Sanders played at the festival. Stańko's music, and especially the characteristic sound of his trumpet were easily recognised even by those not into jazz. Over the course of several decades his personality remained unchanged, though full of contrasts. The artist himself admitted that in everyday life he oscillated somewhere between fury and lyricism. These extremes certainly had considerable influence on Stańko's musical style. For many years, this style had distinctly veered toward fury - sometimes romantic, Slavic - but still furious. Stańko was, after all, a pioneer of free jazz in Europe and Poland. In the last two decades of his life, his style gradually revolved toward lyricism and peace, which first came through on the brilliant album

Tomasz Stańko’s last concert at a Teatr Wielki Polish National Opera gala on March 19 marking the 100th anniversary of ZAIKS. Photo: Kinga Karpati & Daniel Zarewicz

“Litany” published by ECM in 1997, which is described by music critics as one of the most beautiful records in the history of jazz. It is a true artistic tribute made after many years to the late Polish jazz and cinema music composer Krzysztof Komeda, whose soundtrack to “Rosemary’s Baby” remains a timeless classic. “Litany” contains a small anthology of Komeda's music performed by Stańko. It’s a verita• ble masterpiece. 10/2018 polish market



PAINTED BY WATER... "Painted by Water" (Wodą malowane) is the title of a special publication, and of many exhibitions, dedicated to the works of JAN GOŁĘBIEWSKI. Underlying this title is the watercolour technique – the main form of expression Gołębiewski employs to depict his aesthetic experiences. Homeland landscapes are the central theme of his works, but he also paints portraits and architecture.

Maciej Proliński


an Gołębiewski was born in 1944 in Rembertów near Warsaw. Since 1945, he has been living in Pruszków, where he graduated from elementary school and the famous Tomasz Zan High School (another famous alumnus was the great Polish poet/songwriter Wojciech Młynarski). He has an unwavering need for painting – there is something romantic about it, as he does not support himself from painting. Actually, Jan Gołębiewski had training in firefighting. He retired from this profession in 1996 with the rank of Brigadier. At the Tomasz Zan High School in Pruszków, he had a wonderful drawing teacher – Professor Wacław Prusak (1891-1978). “The Professor graduated from the St. Petersburg Academy, like Henryk Siemiradzki, Stanisław Żukowski, and many other Polish painters in the Russian Partition, and the school provided excellent education in drawing and painting. My parents yearned for the spiritual dimension, instilling this desire in me from my early years. One of the paramount values cherished in my family home was the devotion to the Polish tradition of patriotism, including admiration for works by Artur Grottger and Jan Matejko. Professor Prusak instilled these values in me. I have adhered to them, I believe, for fifty years. When I am exploring the painting paths of Professor Prusak, similar creative impulses are awoken in me – sun, clouds, ponds, meadows, they have not changed much, and I hope they will not change for a long time,” stresses Jan Gołębiewski. The artist has showcased his works in dozens of solo exhibitions, including six times in Łazienki Park, Warsaw, four times in the Botanical Garden of the Polish Academy of Sciences in Powsin, twice in the Mazovian Centre of Metallurgy, Pruszków, and also in the Royal Castle, Niepołomice. Where does the inspiration for his highly coherent works of art come from? The answer is – the Polish landscape. It is the landscape of various Polish regions – the sea, the mountains, various seasons of the year, various

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times of the day. “I am a keen nature observer, drawing sketches, and sometimes making watercolour interpretations of it. For I believe that painting is more than just imitation. Instead of making a copy of the landscape, I try to paint an impression of it. I travel all around Poland. I draw endless inspiration from the mountains, especially the Bieszczady Mountains. I am also fascinated by wooden architecture, which is slowly becoming a thing of the past. This is a shame, as it is an important part of our national history. Some time ago, I took on a new, quite formidable challenge – I started painting horses and flowers. To be honest, though, the choice of the theme is of secondary importance... What is important is the ‘approach’ to the theme, such as the ability to accurately capture the atmosphere,” the artist admitts. There is much serenity in these works; so much as to make you want to describe them in terms of... simple beauty – the feelings and the colours. “For Gołębiewski, the landscape is a medium through which he expresses in paint his sensitivity. He paints the revelations

he experiences. He wants to share these revelations with us. He needs someone to share these revelations with. He needs someone with whom his sensitivity can resonate. It is as if he were saying, in the words of Bruno Schulz, ‘Come in, let me show you my pictures,’” as interestingly put by Zofia Rosińska in the "Painted by Water" catalogue. “I am aware that the watercolour method is something like ‘painting acrobatics’ – it requires dexterity and agility, the ability to think and act fast. Still, I simply find it to be an exhilarating and perfectly natural experience... There is no room for martyrdom in this experience. Besides, it is with the watercolour method that you can make the most subtle of statements as a painter. You cannot create a 'watercolour narrative' in a soulless fashion... Light and shade play a special role in my watercolour paintings. I try to create a mood around them, but also to use them as a vehicle for a new, watercolour reality," Gołębiewski reveals, offering an intimate invitation to his world. A world of revelations and raptures. A world of subtlety. •




nna Hejka, a Polish entrepreneur, investment banker and one of the country’s best known business angels, died on September 9 at the age of 59, having lost her battle against lung cancer. She was managing director of the Heyka Capital Markets Group, an active businesswoman, founder of 20 companies in Europe, the United States and Asia, a board member of many companies and supervisory boards, investment banker at Salomon Brothers and vice-president of Security Pacific in New York, investment banker at JP Morgan Chase in Madrid, and analyst at Cargill in Barcelona. She was also a member of the US-Polish Trade Council, a World Bank expert, and a founding member of one of Poland’s business organisations. “It was an honour to know Anna Hejka and work with her on the book about Women Entrepreneurship Ambassadors which presents the way of thinking and activities of 21 enterprising women in Polish business conditions. One of the businesswomen featured in the book is Anna Hejka who authorised her part shortly before her death. An English language version entitled “NEVER Give up!” comes out shortly,” Urszula Ciołeszyńska, Founder and President of the “Polish Network of Women Entrepreneurship Ambassadors” told „Polish Market.” “She had profound knowledge and experience, especially in the areas of science, funds and development strategies. Nothing was too difficult for her,” Michał Lisiecki, PMPG president, recalled in an interview for one of the main Polish daily newspapers. “If I had to fly to Mars with someone, Hejka would definitely be in this team,” he said touchingly.

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At the World Economic Forum in Davos, Hejka won the title of the Global Leader of Tomorrow. She also received an award of European Association of Business Angels. In last year’s December issue, “Polish Market” carried an interview with Anna Hejka. We asked her why – in view of her company’s many international successes – not so many other Polish firms and ideas broke ground in foreign countries. “We have great scientists. What is lacking is a system of implementation. Following decades of communism, Polish firms lack confidence, not only in terms of their ability to achieve ambitious goals, but also in terms of their ability to promote the company’s image, effective marketing and PR. Polish companies do not have the ability to achieve cooperation between individual teams given the very low level of public confidence. Last but not least, entrepreneurs – and especially beginners lack understanding of the cash conversion cycle,” she told us. We also wanted to know what Anna Hejka’s views on the system of promoting innovation in Poland were. “Jobs, higher wages, civilisational progress and the country’s position in the world are all dependent on newly set up firms. These can be founded and succeed only in a well prepared ecosystem. Delays in payments from government agencies, inflexible labour markets, high operating costs, dire legal consequences of bankruptcy and high taxation create hurdles preventing the rapid growth of investment in new companies,” she said. Those who knew Anna Hejka and who appreciated her input in debates on the realities of Polish business will greatly miss her voice and • commitment.


Lands for investment projects with tax exemptions in south-western Poland WSSE „INVEST-PARK” sp. z o.o. 16 Uczniowska Street 58-306 Wałbrzych, Poland

www.invest-park.com.pl invest@invest-park.com.pl tel.: +48 74 664 91 64

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