PU B LISHED SIncE 199 6 No. 2-3 (293) /2020 :: www.polishmarket.com.pl
....................... Polish foreign trade
........................ oPPortunities for regions
100th anniversary of the symbolic Wedding to the sea .......................
meller President of the Port of Gdynia authority
Polish ports are facing a new opening, and new multi-million investments which will multiply our transhipment capacity.â€?
The partner of your future The world is changing faster than ever. At MetLife, weâ€™re changing how our customers experience insurance â€“ making it simpler, smarter and designed around them. With us at their side, our customers can navigate their worlds with confidence, ready for every milestone and adventure ahead. MetLife. Navigating Life Together. MetLife has been around since 1868. It has been on the Polish market since 1990 as the first foreign-owned life insurance and reinsurance company. It offers a wide range of life insurance products, pension funds and investment funds.
Wielkopolska is among the leading academic centres in Poland, harbouring a great R&D potential. It is combining invention pursued at universities and research institutes and innovation, developed at the Poznań Science and Technology Park of the Adam Mickiewicz University Foundation. This enables effective tr transfer of knowledge to business practice. At the core of this model is the Wielkopolska Centre for Advanced Technology (WCAT) in Poznań, a multi-disciplinary institution focused on the development of high-tech materials, biomaterials and nanomaterials based on recent achievements in chemistry, chemical technologies, physics, biotechnology, biology, medicine, pharmacy and agriculture sciences. The Centre is a consortium of five universities: the Adam Mickiewicz University (AMU), which is the project coordinator, Poznań University of Technology, Poznań University of Life Sciences, Poznań University of Medical Sciences and Poznań University of Economics; four institutes of the Polish Academy of Sciences: the Institute Chemistr Plant Genetics, Human of Bioorganic Chemistry, Genetics and Molecular Physics; Institute of Natural Fibres and Medicinal Plants; and the Poznań Science and Technology Park of the Adam Mickiewicz University Foundation and City of Poznań. The vision of WCAT is to include existing organisations (universities, research institutes, and science-technology park) to act like a single independent entity, which will generate synergies by combining the work of the best scientists.
WIELKOPOLSKA CENTRE FOR ADVANCED TECHNOLOGIES ul. Uniwersytetu Poznańskiego 10 61-614 Poznań
6 FROM THE PRESIDENT’S PRESS OFFICE 7 FROM THE GOVERNMENT INFORMATION CENTRE
30 ITB A LEADING RESEARCH INSTITUTE IN CONSTRUCTION
8 MONITOR ECONOMY 100TH ANNIVERSARY OF THE SYMBOLIC WEDDING TO THE SEA
10 RENEWING VOWS 12 ROOM FOR IMAGINATION 13 PORT OF GDYNIA CREATING THE FUTURE OUR GUEST
15 THE FUTURE IS AT STAKE, MAŁGORZATA
JAROSIŃSKA - JEDYNAK, MINISTER OF DEVELOPMENT FUNDS AND REGIONAL POLICY
DOMESTIC COMPANIES BUILD BRAND POLAND, ZBIGNIEW GRYGLAS, UNDERSECRETARY OF STATE AT THE MINISTRY OF STATE ASSETS
ATTRACTING INVESTORS TO NEGLECTED REGIONS, WOJCIECH MURDZEK DEPUTY MINISTER OF ECONOMIC DEVELOPMENT
22 EXPANDING INTO FOREIGN MARKETS,
GRAŻYNA CIURZYŃSKA, ACTING PRESIDENT OF THE POLISH INVESTMENT AND TRADE AGENCY (PAIH)
24 SCIENCE CLOSER TO BUSINESS A LEAP OVER
THE "VALLEY OF DEATH", GRZEGORZ WROCHNA, DEPUTY MINISTER OF SCIENCE AND HIGHER EDUCATION
26 LEADER PROGRAMME 10TH EDITION HUGE SUPPORT FOR YOUNG SCIENTISTS
27 GRAND CHALLENGE – THE WINNER TAKES
IT ALL, MACIEJ MALSKI BRODZICKI, EXPERT OF THE NATIONAL CENTRE FOR RESEARCH AND DEVELOPMENT (NCBR)
28 ENGINEERING IN THE SPOTLIGHT, EWA
MAŃKIEWICZ-CUDNY, PRESIDENT OF THE FEDERATION OF SCIENTIFIC AND TECHNICAL ASSOCIATIONS FSNT-NOT, ORGANISER OF THE WORLD ENGINEERING DAY IN POLAND
29 MORE WOMEN TAKE UP ENGINEERING,
MAGDALENA K. WYRWICKA, PROFESSOR OF THE POZNAŃ UNIVERSITY OF TECHNOLOGY, CHAIRWOMAN OF THE COUNCIL FOR THE SCIENCE OF MANAGEMENT AND QUALITY, DEAN OF THE FACULTY OF ENGINEERING MANAGEMENT
32 FOREIGN TRADE PICKS UP – JERZY MOSOŃ 37 BRISK TRADE ACROSS THE BORDER – JERZY MOSOŃ
38 POLAND – CHINA TRADE BALANCE 100 BILLION IN THE RED
40 WE CAN'T AFFORD TO WASTE ANY MORE
ENERGY, ANDRZEJ WÓJCIK, VICE PRESIDENT OF THE SEFAKO BOILER FACTORY, EXPERT OF THE HEAT 2.0 PARLIAMENTARY GROUP
42 EUROPEAN BUSINESS CLUB AWARDS 43 POLISH PEARLS ARE EVERYWHERE,
SŁAWOMIR KOWALSKI, DEPUTY DIRECTOR OF THE DEPARTMENT FOR COOPERATION WITH THE POLISH DIASPORA AND POLES ABROAD
44 WELCONOMY CONGRESS IN TORUŃ
THE WORLD IS WAITING FOR CHANGE, JACEK JANISZEWSKI, FOUNDER OF THE WELCONOMY FORUM IN TORUŃ AND CHAIRMAN OF THE PROGRAMME BOARD OF THE INTEGRATION AND COOPERATION ASSOCIATION
45 TORUŃ - AN EMERGING LOGISTICS MARKET 46 NEW OPPORTUNITIES, OLD THREATS - 13TH EUROPE-UKRAINE FORUM
48 ONE BELT, ONE ROAD 49 BUSINESS CHALLENGES MEDICINE
50 CREATIVE NATION, PROFESSOR WIESŁAW
LUCJAN NOWIŃSKI, POLISH SCIENTIST, INNOVATOR AND ENTREPRENEUR, PROFESSOR OF RADIOLOGY AT THE UNIVERSITY OF WASHINGTON AND THE CARDINAL STEFAN WYSZYŃSKI UNIVERSITY IN WARSAW
52 LUNG CANCER IS NOT A DEATH SENTENCE,
PROF. DARIUSZ M. KOWALSKI, HEAD OF THE CONSERVATIVE THERAPY DEPARTMENT, LUNG AND CHEST CANCER CLINIC, MARIA SKŁODOWSKA-CURIE NATIONAL ONCOLOGY INSTITUTE - NATIONAL RESEARCH INSTITUTE, PRESIDENT OF THE POLISH LUNG CANCER GROUP
54 FOCUS ON FOREIGN EXPANSION, PROF.
PIOTR H. SKARŻYŃSKI, MD, PHD, MSC, MEMBER OF THE BOARD OF THE CENTRE OF HEARING AND SPEECH MEDINCUS, DIRECTOR OF THE INSTITUTE OF SENSORY ORGANS IN KAJETANY
020 may have kicked off in a positive mood. The global economy did not seem to be threatened by sudden unexpected phenomena, and the existing tensions and conflicts seemed predictable. But it shortly turned out that this was not the case. Australia's climate change debacle and the emergence of the coronavirus epidemic in China have not broken the global supply chain, but they have shaken the stock markets, prompting Moody's to predict that in the long run, the coronavirus could lead to a global economic crisis. News from the US appears more optimistic, with rising employment and an agreement with China to ensure that its imports from the US double. The position of the Chinese economy has weakened considerably, notably the automotive market, which following three decades of growth has shrunk by more than 10% within two years. This year, the global economy is expected to grow by 2.5%, according to the World Bank. Unfortunately, Europe is likely to grow more slowly. Brexit has become a reality, its terms are to be negotiated in detail with the EU by the end of the year. This year the eurozone is expected to grow by just 1%. In December, industrial production in Germany fell by as much as 6.8% y/o/y. Poor data on industrial output also came from other countries. In France, it fell by 3%. It also decreased in Spain and the Netherlands. This is likely to hit Polish exports. Statistics Poland has reported that this country’s GDP grew by 4.0% in 2019, down from 5.1% in 2018. Ministry of Economic Development analysts have pointed out that, despite the unfavourable economic situation in the eurozone and global trade tensions, foreign demand in 2019 showed a relatively high, positive contribution to GDP growth. This means that Polish companies continue to demonstrate exceptional resistance to adverse conditions, maintaining and even strengthening their competitive position in some markets. Poland is set to remain in a group of EU growth leaders with GDPs exceeding 3% - next to Malta, Romania and Ireland. It will be interesting to see whether a considerable minimum wage increase in Poland this year will improve the consumer mood, putting the economy in higher gear. Poland is praised for its growing work efficiency, at least compared to other
countries of the region. It now stands at over 35% of the average for the most advanced economies. According to the World Bank, this is because global corporations keep moving their BPO centres to Poland. Nevertheless, growth is likely to slow down. Next year, Polish GDP is expected to grow by 3.3%, and in 2022 by 3.1%. Can this be prevented? According to a report entitled "5G Networks in Poland" compiled by the professional services company Accenture, the answer is yes. Almost 100,000 new jobs, and a GDP rise by an additional 1.2%, are going to be some of the effects of 5G implementation in Poland by 2028. The country needs it to compete with other European markets. The introduction of 5G can bring a 30% increase in the efficiency of devices connected to the internet. The manufacturing sector is set to grow by 11%. The value of other sectors is also expected to rise: of the automotive sector by over 20%, of the media and entertainment sector by almost 16%, and of the energy sector by over 14%. “We have something which nobody else in the world has. Poland produces both software and hardware. Korea may be at a similar level, but in the European Union we definitely have an absolute advantage in this field of technology,” says Minister of Digital Affairs Marek Zagórski. Long-term opportunities are also highlighted in a report by the government Institute of Economic Forecasts and Analyses on the robotisation of industrial companies in Poland. But is Poland going to obtain funding for the modernisation of its economy as part of the new EU financial plan? This is likely to hinge on the course of its future cooperation with the EU. At the World Economic Forum in Davos, Prime Minister Mateusz Morawiecki, OECD Secretary General José Gurría, and French Minister of the Economy Bruno Le Maire discussed it in detail, based on a report by the Polish Economic Institute. It shows that a 64 billion VAT gap is recorded in EU member countries, on top of a CIT gap estimated at EUR 60 billion, and another EUR 46 billion, which has been transferred to tax havens in Europe, of all places. Total annual losses for the EU are estimated at EUR 170 billion. The OECD has already proposed solutions, and French President Emanuel Macron has proposed that Poland pilot the issue within the EU.
Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.
2-3/2020 polish market
55 IN GOOD SHAPE, BARBARA JERSCHINA, M.D. PH.D., OF THE JERSCHINA FACE & BODY CLINIC, AN EXPERT IN AESTHETIC AND ANTI-AGING MEDICINE AS WELL AS WEIGHT LOSS
POWERFUL POLISH WOMEN
59 CURIOUS ABOUT THE OUTSIDE WORLD, EWA EWART, DOCUMENTARY FILM DIRECTOR AND PRODUCER
70 BRIGHTENING UP YOUR WORLD, EMILIAN KAMIŃSKIACTOR, DIRECTOR, OWNER OF THE PRIVATE KAMIENICA THEATRE COMPANY IN WARSAW, FOUNDER OF THE ATUT FOUNDATION
72 POLONIA PALACE HOTEL A SYMBOL OF WARSAW, PAWEŁ LEWTAK, GENERAL MANAGER OF THE POLONIA PALACE HOTEL
61 THE STRENGTH OF A WOMAN’S BEAUTY, MIRA
JANKOWSKA, FOUNDER OF THE MASTER ACADEMY OF LOVE, PHOTOGRAPHER OF FEMALE BEAUTY
64 CULTURAL MONITOR 66 CULTURE IS THE FOUNDATION, WALDEMAR DĄBROWSKI, DIRECTOR OF THE TEATR WIELKI - POLISH NATIONAL OPERA IN WARSAW
74 NEW IDEAS FOR GOOD OLD LOYALTY 75 LOYALTY PROGRAMME - A PROVEN WAY TO ATTRACT AND RETAIN CLIENTS
76 LOYALTY OF THE FUTURE – TO BE INVOLVED IS MORE IMPORTANT THAN TO OWN
78 MOBILE APPLICATION AS A MODERN TOOL TO REACH THE CLIENT
68 THE NEED TO SING – MACIEJ PROLIŃSKI 69 ART AUCTION BOOM
79 BEER BREAD
PUBLISHER: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.)
CONTRIBUTORS: Miłosz Dorsz, Agnieszka Turakiewicz, Mirosław Wdzięczkowski
PRESIDENT: Krystyna Woźniak-Trzosek
GRAPHIC DESIGN: Agnieszka Charuba, Joanna Wiktoria Grabowska
Polish Market :: 2-3 (293) /2020
VICE PRESIDENTS: Błażej Grabowski, Grażyna Jaskuła
PU B LISHED SIncE 199 6 No. 2-3 (293) /2020 :: www.polishmarket.com.pl
....................... Polish foreign trade
........................ oPPortunities for regions
100th anniversary of the symbolic Wedding to the sea .......................
meller President of the Port of Gdynia authority
Polish ports are facing a new opening, and new multi-million investments which will multiply our transhipment capacity.”
Cover: ADAM MELLER, President od the Port of Gdynia Authority Photo source: www.shutterstock.com, www.commons.wikimedia.org unless otherwise stated
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: firstname.lastname@example.org EDITOR-IN-CHIEF: Krystyna Woźniak-Trzosek DEPUTY EDITOR-IN-CHIEF: Jerzy Mosoń email@example.com ENGLISH EDITOR: Rafał Kiepuszewski WRITERS/EDITORS: Danuta Bierzańska, Jan Sosna, Maciej Proliński, Jerzy Bojanowicz, Jan Mazurek, Andrzej Kazimierski, Janusz Turakiewicz, Janusz Korzeń TRANSLATION: Sylwia Wesołowska-Betkier, Agit
ARTISTIC PHOTOGRAPHER: Bartosz Maciejewski SALES: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Magdalena Koprowicz firstname.lastname@example.org DTP: Lili Projekt www.liliprojekt.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.
CEE GROWTH LEADER
ddressing a session entitled “Fo s t e r i n g i n n ova t i o n-l e d economic growth” at the World Economic Summit in Davos in January, Polish President Andrzej Duda said that the growing presence of Polish business at the summit is a sign of the country’s strong economic potential and status. “I am proud to say that Poland is a leader of growth in Central and Eastern Europe. In recent years our average annual GDP growth has been at around 4%. Poland has a very good climate to do business in. During my first term as the President of Poland, my country has been upgraded to a Developed Market status. It has a vibrant business environment with relatively low taxes and, above all, a pool of young talent. This is reflected in our great potential in the area of new technologies. The 2019 Global Startup Ecosystem Report rated Poland 20th among the world’s best places to establish start-ups. There is a number of factors which show that Poland’s role as a tech hub will continue to grow. Many top global tech companies including Google, Microsoft, Nokia, and IBM are visibly extending their presence in Poland. Poland has a highly skilled workforce. It is the biggest economy in the CEE region. The capital Warsaw is already becoming a regional tech hub but the role of other cities, including Kraków and Poznań, is growing, with more and more R&D centres being established. As an EU member country, Poland is attractive for businesses which wish to gain quick access to the European market. The Polish state has also introduced policies to facilitate research and innovation. As a result,
From left: Serbian President Aleksandar Vučić, Polish President Andrzej Duda and Lithuanian President Gitanas Nausėda
private spending on R&D has increased by 25%,” Andrzej Duda pointed out. “Over the last three decades, the countries of Central Eastern Europe have undergone remarkable economic growth. Put together they are the world’s 12th largest economy. We have become a growth engine for the whole European Union. I believe that the countries of our region will best use their full economic potential through close cooperation. With this in mind, we launched the Three Seas Initiative in 2015. Digitisation has been one of its priority areas besides cooperation in infrastructure and
energy connectivity. It gives me great pride and pleasure to observe such a strong and positive tendency in the economies of my country and the countries of the region. At the same time, we are getting ready for a possible slowdown. We are ready to introduce adequate measures, if necessary. In this regard we believe that investment in the area of new technologies is the most effective strategy to increase productivity and foster economic growth. This year in June we will discuss this topic at the 5th Three Seas Initiative Summit in the Estonian capital Tallinn,” the Polish President said.
resident Andrzej Duda opened the Polish House in Davos, where, for the second time, the PZU insurance company and Pekao S.A. arranged a venue for promoting the Polish economy and the Three Seas Initiative region. “This place demonstrates that we are present and visible globally. Together we will show the strength of the Three Seas Initiative to global investors,” said President Duda. Guests invited to the Polish House, including the most prominent figures of the world of politics and economy, discussed ways to sustain high economic growth in 11 CEE countries, and regional cooperation. A new model for the region's growth was sought in view of the gradual loss of the competitive
66 polish polishmarket market
advantage that Poland and other CEE countries have been enjoying due to low labour costs. “This year, we discuss new challenges related to the Industrial Revolution 4.0 and the ever-present digitisation,” said Marek Lusztyn, President of Pekao S.A. ”Our intention as a bank is to play the role of a guide and provide financial support to Polish businesses with a view to effectively competing in this global village,” he underscored. Among those who visited the Polish House in Davos were renowned economists, including Professor Nouriel Roubini and representatives of multinational companies and consultancy firms such as Goldman Sachs, Microsoft, McKinsey, and Deloitte.
TOWARD A HIGH-TECH ECONOMY
s part of a visit to the World Economic Summit in the Swiss resort town of Davos, Polish Prime Minister Mateusz Morawiecki participated in the Informal Gathering of World Economic Leaders (IGWEL) – An Ascendant Europe. He also held a series of meetings with leading politicians and entrepreneurs. These included a lunch meeting with Google CEO Sundar Pichai, and bilateral meetings with Microsoft President Brad Smith, ArcelorMittal CEO Lakshmi Mittal – and AstraZeneca Chairman Leif Johansson. In a communique released following the latter meeting, AstraZeneca announced that it was going to invest a sum of PLN 1.5 billion in research and development activities in Poland. AstraZeneca is one of the world’s largest biopharmaceutical companies. Commenting on the Davos summit, Prime Minister Mateusz Morawiecki pointed out that at a time of an expected economic slowdown, the Polish economy is rapidly developing. “I would like this source of success to be even more strongly based on high technology, which will create new jobs in Poland,” said Mateusz Morawiecki. He noted that the
WE BOAST A WELLEDUCATED AND TALENTED LABOUR FORCE. THIS IS WHAT COMPANIES WHICH ARE ALREADY INVESTING IN POLAND VERY OFTEN EMPHASISE.
meetings Polish politicians and business leaders hold in Davos are significant from the perspective of the Polish economy. He explained that according to the OECD, Poland has the fastest economic growth among all thirty-six OECD countries, which means that it is worthwhile investing in Poland in the long term. “We boast a well-educated and talented labour force. This is what companies which are already investing in Poland very often emphasise,” he said. This year marked the 50th anniversary of the World Economic Forum. It was held under the motto “Stakeholders for a Cohesive and Sustainable World.” Almost 3,000 representatives from 117 countries participated in the event, including 53 heads of state and government.
COMBATTING TAX EVASION
rime Minister Mateusz Morawiecki took part in a debate devoted to tax policies and combatting tax evasion. During the debate, he presented Polish proposals which he said were intended to help the European Union develop an effective regulatory system in this regard. “The European Commission should take action aimed at eliminating tax gaps. If it does so, a higher EU budget will be much
more likely,” Mateusz Morawiecki argued. The Polish Prime Minister participated in a debate concerning a report on tax fraud in the EU which was drafted by the Polish Economic Institute and Bank Gospodarstwa Krajowego. He was joined by José Ángel Gurría, Secretary-General of the OECD, and Bruno Le Maire, French Minister of the Economy and Finance. In the opinion of Mateusz Morawiecki, under previous governments until 2015 “Poland used to be one of the least effective EU member states in terms of VAT collection. Currently, however, it is one of the most effective ones. We have managed to improve our tax collection through a reform of the tax system, lowered taxes for small and medium-sized enterprises, and parallel measures meant to eliminate the application of illegal tax avoidance measures. We have done our part, but now there is an opportunity for the changes to be introduced in the entire European Union. To have an ambitious innovation and climate policy pursued by the EU, we should also have an ambitious budget. A higher budget may be at least partially achieved by eliminating tax fraud,” Mateusz Mazowiecki said. According to the report prepared by the Polish Economic Institute, annual losses related to insufficient tax collection measures amount to EUR 170 billion. 2-3/2020 polish market
ECONOMIC MONITOR Jan Mazurek, Michael Ström / Brokerage House
Macroeconomic data indicate that the pace of economic growth slowed in Poland in the final months of last year. The slowdown is projected to continue this year.
ECONOMIC GROWTH According to a flash estimate, Poland’s GDP grew 4.0% in real terms in 2019 versus 5.1% in 2018. Domestic demand increased 3.8% in real terms last year versus 5.3% in the previous year. Total consumption grew 4.0% in real terms, with a 3.9% growth in household consumption. In 2019, the rate of investment was at 18.8% and was 0.6 pct. points higher than in the previous year.
ECONOMIC CLIMATE Assessments of business conditions in the manufacturing, financial and insurance, information and communication, and wholesale sectors improved in January 2020 compared to December. More managers viewed the situation of their businesses positively than negatively. Assessments of business conditions in the construction, transport and warehousing, and accommodation and food services sectors were less negative than in December. In the retail sector, assessments of business conditions deteriorated, which may be largely attributable to further restrictions imposed on Sunday trading.
INDUSTRIAL AND CONSTRUCTION OUTPUT In December 2019, industrial output in constant prices generated by businesses providing employment to more than nine persons was 3.8% higher than a year earlier and 9.4% lower than a month earlier. In the full year 2019, industrial output grew 4% year on year while in 2018 it grew 5.8% year on year. After seasonal adjustments, industrial output in December 2019 was 2.1% higher than a year earlier and 2.9% lower than a month earlier.
8 polish market
In December 2019, construction and assembly output in constant prices generated in Poland by construction firms employing more than nine people was 3.3% lower than a year earlier and 23.7% higher than a month earlier. In 2019, construction and assembly output increased 2.6% year on year while in 2018 it grew 17.9%.
RESIDENTIAL BUILDING The residential building sector is still enjoying an upturn. Last year, 207,200 homes were completed in Poland, 12% more than a year earlier. The number of home starts also increased as did the number of homes for which building permits were issued or notifications with a building design were submitted. Developers completed the biggest number of homes; their share in the market was 63%. Self-build investors had a 34% share in the market. The remaining sectors of the residential building market – the sectors of housing cooperative homes, council homes, affordable rental homes (TBS) and company homes – contributed 3.2% of the dwellings completed last year.
FOREIGN TRADE In the 11 months to the end of November 2019, Poland’s goods exports in current prices were worth PLN934 billion while Polish imports were worth PLN926 billion. Compared to a year earlier, the value of exports increased by 5.9% and of imports by 3.5%. As a result, the trade balance was positive at PLN8 billion against a deficit of PLN13.5 billion a year earlier.
RETAIL SALES In December 2019, retail sales went up 5.7% year on year. In month-on-month terms, retail sales were 14.1% higher due to holiday season shopping. In the 12 months to the end of December 2019, retail sales were 5.4% higher than a year earlier when they had increased 6.2%.
WSE INDICES, CHANGES IN JANUARY-DECEMBER 2019 (%)
INFLATION Prices of consumer goods and services have been growing worryingly. In December 2019, consumer prices were 3.4% higher than in December 2018. Prices of services went up 6.1% and prices of goods 2.4%. Food prices increased 7.5%. Compared to November 2019, prices of goods and services were higher 0.8%. As a result, inflation came close to the upper limit of the inflation target band set by the Monetary Policy Council at 2.5%+-1 pct. point. Inflation is likely to increase further in the first half of this year due to increases in electricity prices, social transfers, demand pressure and wage growth driven by a rise in the minimum wage.
LABOUR MARKET At the end of last year, the situation on the labour market deteriorated slightly due to seasonal factors. At the end of December, the registered unemployment rate stood at 5.2% and was 0.1 pct. points higher than a month earlier. A total of 867,200 people were registered as unemployed, 17,500 more than at the end of November. Unemployment may increase moderately this year in the wake of an economic slowdown, a rise in employment costs and inflationary pressure. These factors will be pushing businesses to speed up automation processes and cut jobs.
NATIONAL FINANCES In the 11 months to the end of November 2019, budget revenue amounted to PLN367.1 billion and budget expenditure PLN369.0 billion. Consequently, there was a budget deficit of PLN1.9 billion. No budget deficit is planned under the 2020 budget law.
CAPITAL MARKET 2019 was a bad year for investment on the Warsaw Stock Exchange (WSE), especially investment in large companies. Those who invested in companies of the Oil & Gas sector posted the biggest losses while those who invested in the IT sector had the highest gains. At the end of 2019, 401 Polish companies with a combined capitalization of PLN550.2 billion and 48 foreign companies with a capitalization of PLN553.6 billion were listed on the main market of the Warsaw Stock Exchange. The cumulative value of equities traded on the main market last year was 6% lower than in 2018 and amounted to PLN191.4 billion. In the 12 months to the end of December, the WIG20 bluechip index lost 5.6%. The WIG broad-market index gained a mere 0.25%. In 2019, six of the 14 sectoral indexes of companies listed on the WSEâ€™s main market posted gains. WIG-IT gained the most (42.3%) while WIG-Oil&Gas lost the most (18.9%). â€˘
Source: Warsaw Stock Exchange
SELECTED POLISH ECONOMIC DATA - CHANGE (Y-O-Y)
2019 / 2018
2019M12 / 2018M12
2019M12 / 2018M12
-0.6 pct. points (5.2%)
Industrial output (constant prices)
2019M12 / 2018M12
Construction and assembly output (constant 2019M12 / 2018M12 prices)
Employment in the corporate sector
2019M12 / 2018M12
Wages in the corporate sector
2019M12 / 2018M12
Retail sales (in constant prices)
2019M12 / 2018M12
Source: Statistics Poland
2-3/2020 polish market
POLAND THE CENTENARY OF REGAINING INDEPENDENCE
VOWS This year marks the centenary of Poland’s symbolic wedding to the sea. Under the Versailles Treaty of June 28, 1919, Poland was given some 140 km of the Baltic coast between the Free city of Gdańsk/Danzig and Germany. On February 10 the following year, Polish military leader General Józef Haller (1873-1960), threw a platinum ring into the sea, thus celebrating Poland’s newly won access to the Baltic. General Haller was one of the most distinguished figures in Poland’s struggle for independence, first as an officer of the Polish legions formed in Austro-Hungary to fight against Russia in WWI, then founder of the Polish Army in France, and general inspector of the Volunteer Army during the Polish-Bolshevik war of 1920. The celebrations of the 100th anniversary of the return to Poland of the Pomerania province on the Baltic coast, abound in numerous educational and cultural events.
he process of recovering Pomerania from German hands began on January 17, 1919. Golub was the first town recovered by Poland. Then General Haller's army captured the city of Toruń, from where its northward march continued to symbolically end in the seaside locality of Puck on February 10. The wedding-to-the-sea ceremony was again held in another seaside town of Władysławowo on February 11. These events influenced the shape of independent Poland. Under a parliamentary resolution, the wedding-to-the-sea anniversary ceremonies have acquired a special dimension. "Ahead of us lie free worlds and free countries. The Polish sailor will now be able to reach any place on Earth under the emblem of the White Eagle, the world is his oyster," said General Józef Haller at the ceremony in 1920. The Office of the Niepodległa Programme, which coordinates events marking the 100th anniversary of the regaining of independence by Poland, in conjunction with the Naval Museum in the city of Gdynia and the city of Toruń, have prepared an exhibition devoted to the country’s maritime tradition. It is entitled "Independent Maritime Poland." The
10 polish market
THE EXHIBITION SHOWS HOW IMPORTANT IT WAS FOR POLAND TO SECURE THIS NARROW STRETCH OF THE BALTIC COAST IN ECONOMIC AND SOCIAL TERMS, AS WELL AS IN TERMS OF INTERNATIONAL PRESTIGE.
exhibition is meant as an educational tool. It highlights the most important facts and figures related to the struggle for Poland's access to the sea. It is addressed to individual visitors, but also to cultural institutions, local government units, schools and NGOs. Access is free to virtual exhibition files, which can be download as PDF files. The exhibition consists of 11 tableaux featuring various aspects of pre-WWII Poland’s maritime history. There are plenty of archive photos and documents. Reading materials tackle topics such as ships which flew the Polish flag, the origins of the merchant fleet and navy, as well as the construction of port infrastructure. The Office of the Niepodległa Programme has also put together another exhibition devoted to one of the most important Polish transatlantic liners. The "B for Batory" spotlights the MS Batory. It flew the Polish flag for 19 years, plying the waters of the North Atlantic to carry Polish passengers to the US. It was also used in Allied convoys during World War II, when it earned the name of the "Lucky ship,” because it successfully evaded Nazi U-boats. The MS Batory was named after the 16th century Polish King Stefan (Istvan) Bathory, who was of Hungarian origin. On the liner’s inaugural
POLAND THE CENTENARY OF REGAINING INDEPENDENCE
cruise from Trieste to Poland on April 21, 1936, state officials were joined by a group of prominent artists, including painter Wojciech Kossak, travel writer Arkady Fiedler and reporter Melchior Wańkowicz. During its service, the Batory crossed the Atlantic 222 times, carrying 270,000 passengers. It was known as an ambassador of Polish culture in the world's oceans and seas. All interiors, equipment and even menu cards were designed by leading Polish artists who gave them a unique character inspired by Polish motifs. Among those who were involved in the project were graphic artists Zofia Stryjeńska, Antoni Kenar and Bolesław Cybis. The exhibition focuses on the role of the MS Batory in Polish culture. Both exhibitions, as well as many other materials, are available at www.niepodlegla.gov.pl. At the National Maritime Museum in Gdańsk you can visit an exhibition entitled "Puck February 10, 1920 through the Eyes of Witnesses." General Haller threw a ring symbolising the return of Poland to the Baltic into the sea. Among those who accompanied the general were outstanding Polish artists such as painter Julian Fałat, who faithfully recorded the moment in their works. The participants took photos, notes and wrote newspaper reports. This body of archive documents provides a narrative of the exhibition, showing the ceremony from several angles. This increases the value of the exhibition and makes it more interesting for the viewer. The exhibition shows how important it was for Poland to secure this narrow stretch of the Baltic coast in economic and social terms, as well as in terms of international prestige. On show are paintings of Polish sailors, excerpts of press reports, photographs and exhibits evoking the memory of events from a hundred years ago. Among the exhibits is General Józef Haller's military coat. The Gdańsk Branch of the Institute of National Remembrance, together with local government representatives, have decided to commemorate public activist Antoni Abraham Miotke, one of the main organisers of the wedding-to-the-sea ceremony. Miotke was an ethnic Kashubian, member of a Slav minority which inhabits the Pomerania province along with the Poles. In the Old Market Square in Puck, this somewhat forgotten figure was commemorated with a plaque. Miotke is a symbol of the unwavering struggle of the Kashubians against German oppression over the centuries, and of their joy over the regaining of their territories by Poland. Born in 1869 in the village of Zdrada in what was then the Prussian (German) occupation zone, he was a great supporter of Pomerania’s inclusion in an independent Poland, which he expressed many times as he wandered around Kashubia. In addition to his work as a journalist for the "Gazeta Gdańska" newspaper, he also organised local Kashubian associations. He was present at the peace conference in Versailles to attest to the Polishness of this part of Pomerania, which was also claimed by Germany. Legend has it that he slammed his fist on the conference table and emotionally exclaimed "The devil won’t take Pomerania away from us." He died on June 23, 1923. His funeral became a patriotic ceremony. The character of Antoni Miotke, played by Janusz Gajos, appears in Filip Bajon’s film "The Butler" based on the biography of the "King of the Kashubians." Miotke also argued strongly for the construction of a port in Gdynia, which Poland vitally needed because Gdańsk, the only major port in the region, was part of the
Free City of Gdańsk/Danzig, which was eventually annexed by Nazi Germany. The port of Gdynia was successfully built from scratch in the 1920s. Among events marking the anniversary was a recreation of the wedding-to-the-sea ceremony and a series of concerts by the Kashubian Philharmonic and the Polish Baltic Philharmonic. Their highlights included the premiere of a work written specially for the occasion by Leszek Możdżer, one of the greatest Polish pianists and jazz composers, who was born in Gdańsk, the "Baltic Legend" overture by the Polish composer Feliks Nowowiejski, and Debussy’s symphonic poem "La mer." The concluding event was a concert by the Kashubian Philharmonic in the town of Wejherowo, featuring favourite Polish songs on maritime themes, including the 1970 rock hit of Krzysztof Klenczon "10 on the Beaufort scale," which was first recorded by band known at that time as the • Three Crowns. 2-3/2020 polish market
Nobody is able to capture the essence of the sea. But trusting that the sound of a faraway sea can be heard inside a shell, we greedily add new shells to our existing collection. (...) Each sea wave produces different visual and auditory sensations. Maria Wollenberg-Kluza can perfectly tell these different waves apart. She captures them in the active memory of her eye. Indeed, some of us - looking at the rhythm and structure of a wave, the unique way it is born, its changing colours and flickering reflections of light - instantly recognise that it is a familiar, northern wave." That is how one of the most outstanding literary historians and art critics, Prof. Andrzej Gronczewski describes the artist’s painting in a preface to the book. "I know the Baltic coast very well, because I have travelled its length, but I keep coming back to some places. I used to regularly visit the coastal village of Dębki near Żarnowiec for 30 years. These days I go to Krynica Morska. There’s a beach, the sea and the sky, sometimes a few fishing boats. Some may say: 'How boring, nothing ever changes.' But for me, there’s so much room for imagination ... Although the sea is right in front of you, it’s up to you how you paint it ... Every day the beach is steeped in a different light, it’s warmer or cooler, and each time I’m in a different mood. And besides what I can see in front of me, there’s something else on my mind. We observe nature, we admire its beauty, but we always have our favourite themes. I blend them into my works. It happens that I use these summer, sea images in other paintings, so the sea also appears in my other works and cycles, such as 'Saligia - 7 Deadly Sins.' My paintings are about human emotions, but at the same time, I do not avoid historical and patriotic themes. A special patriotic painting devoted to the sea is a work I produced four years ago. It is entitled 'General Józef Haller. Wedding to the Baltic Sea.' My intention was to combine my love for the Polish sea with an important date in Polish history," • says Maria Wollenberg-Kluza.
12 polish market
"Toward the sun", 2003, oil on canvas
The 100th anniversary of Poland's wedding to the sea, a symbolic act of the regaining of access to the Baltic, is celebrated this month. Maritime scenes by Maria Wollenberg-Kluza, an outstanding Polish painter, winner of the “Polish Market” Honorary Pearl 2019 in the Culture category, have gone on show in Warsaw. A book with photographs of her works, entitled "Baltic Impressions", has also been brought out recently.
"General Józef Haller - Wedding to the Baltic Sea", 2017, oil on canvas
POLAND THE CENTENARY OF REGAINING INDEPENDENCE
100TH ANNIVERSARY OF THE SYMBOLIC WEDDING TO THE SEA
PORT OF GDYNIA
creating the future
Investment projects currently being carried out by the Port of Gdynia Authority outweigh the scope of the original project launched by the then Deputy Prime Minister Eugeniusz Kwiatkowski in the early 1920s. Kwiatkowski was the founding father of the port and of the city of Gdynia, which developed thanks to its construction. This year’s 100th anniversary of Poland's symbolic wedding to the sea provides an excellent opportunity to show the way in which the step-by-step expansion of the port, which is being conducted with utmost respect for the natural environment, makes it one of the most important points on the maritime map of the world.
he construction of a deep-water Outer Port and public ferry terminal, expansion of the rail and road access to the port, modernisation of the fairway and intermodal transshipment terminal, and the development of the quay area are just some of the challenges planned by the Port of Gdynia Authority. These investment projects will allow oceangoing vessels to enter the port, thus enabling a significant increase in the volume of trade and tourism. Both Polish resources and EU funding are being used in the investment process. Following a recent meeting between Polish and Japanese government officials, hopes have been raised that the port development programme will become a global project. Some may ask, why Gdynia?
HOW DID IT ALL START? Today's decisions mark the crowning of a process which began 100 years ago, when a reborn Polish state regained access to the Baltic Sea. In 1920, Poland was granted a 144 km stretch of the coastline under the Versailles Treaty of June 1919. At that time, the only port which could serve Polish trade and provide coastal defence was situated in the Free City of Gdańsk (Danzig), where for hundreds of years Polish and German interests clashed. It soon turned out that placing too much hope in the then administration of the Free City of Gdańsk was too great a risk. Faced by a Bolshevik invasion from the East, Poland, which had been guaranteed free use of the port, was not allowed to unload military equipment there. To prevent this from happening again in the
"YOU ARE HEREBY WEDDED TO POLAND FOR AGES AND AGES," SAID GENERAL JÓZEF HALLER ON FEBRUARY 10, 1920 BEFORE HE THREW A RING INTO THE WATERS OF THE PUCK BAY. THIS IS HOW THE MODERN HISTORY OF THE POLISH BALTIC COAST BEGAN.
future, Poland started to look for a safe and secure alternative harbour. The ideal spot was found on a stretch of the coast between the villages of Gdynia and Oksywie, 16 km away from Nowy Port in Gdańsk. This location was selected because of its favourable hydrographic conditions – it was sheltered and lay close to a railway station.
FLAGSHIP INVESTMENT PROJECT RAISES JAPANESE INTEREST Despite the fact that Gdańsk returned to Poland after World War II, the Port of Gdynia did not lose its importance, and recent years have seen its unprecedented boom. The flagship project of the Port of Gdynia is the construction of an Outer Port worth PLN 3.2 billion. Japan has expressed interest in this investment project.
Prime Minister MATEUSZ MORAWIECKI: "I am convinced that we will attract further investments of PLN 5-7 billion to Poland, thus creating additional thousands of jobs." 2-3/2020 polish market
100TH ANNIVERSARY OF THE SYMBOLIC WEDDING TO THE SEA
A deep-water Outer Port is to be built on artificial land, based on existing Silesian and Swedish quays. Extending beyond the existing breakwater, it will increase the port area by 151 hectares, and its transhipment capacity by 2.5 million TEU. The container terminal will be able to serve offshore wind farms. Over 700 new jobs will be created thanks to the construction of the Outer Port, and the estimated revenues for the city of Gdynia are expected to reach PLN 22 million.
According to National Bank of Poland data, in 2018 it invested a sum of USD 955 million, thus becoming the second largest Asian investor in Poland. It looks like 2020 may be just as promising in terms of Japanese investment as 2018 was. A major Japanese company has decided to locate the production of its modern hybrid drives in Poland. Thus it comes as no surprise that Japanese business is interested in increasing transport capacity, and that is what the Port of Gdynia can provide. On January 21-22, representatives of the Port of Gdynia Authority took part in an official Polish government business mission to Japan headed by Prime Minister Mateusz Morawiecki. The main topics of talks were innovations in the energy sector and infrastructure investments. The Port of Gdynia presented its strategic investment project - the Outer Port. "I am convinced that we will attract further investments of PLN 5-7 billion to Poland, thus creating additional thousands of jobs," said Prime Minister Mateusz Morawiecki during the visit. Polish companies have more than doubled their exports to Japan over the past decade - from EUR 270 million in 2008 to EUR 566 million in 2018. "Economic relations between Poland and Japan offer the port a chance to increase the flow of cargo to and from Asia. Our strategic investment project - the Outer Port - has met with great interest of business communities,” Adam Meller, President of the Port of Gdynia Authority said after a series of meetings. (Pictured here with Japanese Prime Minister Shinzo Abe).
14 polish market
ENVIRONMENT-FRIENDLY The expansion of the port means that another 151 hectares will soon be added to its area. In what way is this going to affect the natural environment? The Port of Gdynia has already completed an environmental impact survey of planned waterways and of areas designated for the implementation of the road and rail links leading to the Outer Port. According to
scientists from the University of Gdańsk, there will be no negative impact on the integrity of the Bay of Puck. Thus the implementation of the project will not interfere with natural links between individual areas within the Natura 2000 network. Eco-friendly solutions are also applied by cruise ship owners. Cruise ships reduce fuel consumption thanks to such features as an air curtain, which makes it possible to cut fuel consumption by 5%, or sea speed silicone paint, thanks to which the ship achieves 10% fuel savings. The Port of Gdynia also supports ecological solutions by providing bunkering services with green LNG fuel on preferential terms. So far, this operation has been carried out 12 times. Equally importantly, during the implementation of the New Public Ferry Terminal at the Port of Gdynia, as part of a sustainable development strategy, shoreto-ship power supply will become available beginning next year, thus eliminating exhaust fumes. •
* The efforts of the Port of Gdynia Authority are noticed by opinion leaders. Last December, for the second time in a row, the Port of Gdynia Authority SA received the title of the Pearl of the Polish Economy. It took the first place in the Large Pearls category in the 17th Edition of the Pearls of the Polish Economy Ranking – an objective positioning of Polish companies - organised by the “Polish Market” economic magazine in partnership with experts from the SGH Warsaw School of Economics. In January, the Port of Gdynia Authority was awarded the Polish Business Leader Golden Statuette for another year of growth, dynamic expansion of port infrastructure, creating conditions for the development of entrepreneurship within the port and efficiency in company management.
Local government bodies can accelerate the development of their communities with the use of programmes cofinanced from European funds and Norway funds. The new dynamics will also be supported by an amendment to the Act on the principles governing economic development policies. We discuss plans for the coming year with MAŁGORZATA JAROSIŃSKAJEDYNAK, Minister of Development Funds and Regional Policy.
THE FUTURE IS AT STAKE
The Local Development programme is entering another stage. What criteria should towns and cities meet to secure funding? As far as I’m concerned, all local government bodies - 54 on the basic list, and 13 on the reserve list - have already won. Ultimately, around 15 towns and cities will receive attractive project financing. They will be able to implement comprehensive economic development projects worth EUR 3-10 million each. The deadline for their implementation is end-April 2024. Financed under the third edition of the Norway and EEA Funds, the Local Development programme provides an inspiration for medium-sized municipalities to come up with an integrated PM
economic development programme. The total programme budget is EUR 117.6 million. Of this, EUR 100 million are resources coming from the EEA Financial Mechanism and the Norwegian Financial Mechanism, and EUR 17.6 million is Poland’s own contribution. However, each of the towns and cities which has met the stringent criteria is already a winner. 212 draft project were submitted for assessment. Thus, one in four municipalities out of those which applied for financial support now receives special expert support in the drafting of strategic documents. Whether municipalities implement their programmes as part of the second stage of recruitment, or obtain other funds for investment projects, is not so important for their success. The
point is that they will have a good sustainable development programme which they can use to attract investors in the future. How do you assess the smart city challenge when it comes to zero emissions, smart urban technologies, public transport and waste management? We are a partner for local government bodies which supports and promotes the concept of smart cities. We offer help in developing good practices in the creation of urban environments which their inhabitants find friendly. The Ministry of Development Funds and Regional Policy runs the Human Smart Cities competition, under which 25 municipalities have received financial and PM
2-3/2020 polish market
WHAT SEEMS TO HAVE ALREADY BEEN DECIDED IS AN INCREASE IN FUNDING FROM 5% TO 6% UNDER THE EUROPEAN REGIONAL DEVELOPMENT FUND FOR URBAN DEVELOPMENT.
expert support for the implementation of projects they submitted. The main goal of the competition is to create optimum living space using smart solutions. It should be a space where residents bear responsibility jointly with local government by actively participating in the shaping of the urban environment through grassroots initiatives. The development of smart cities is also the goal of the second edition of the Partnership Initiative of Cities. This approach will be reflected in the updated National Urban Policy, work on which has already started. Negotiations on the EU cohesion policy for the 2021-27 period are currently underway. It is important to us that towns and cities should have access to resources adequate to the challenges they face. What seems to have already been decided is an increase in funding from 5% to 6% under the European Regional Development Fund for urban development. It is too early to talk about specific figures, because negotiations are still ongoing. We will also strive to make the post-2020 cohesion policy more territorially focused, to make sure that the scope of support directly corresponds to the challenges and needs of individual areas, including towns and cities. PM
Given the current economic slowdown, can we count on similar initiatives as the Juncker Plan whose idea was to boost
16 polish market
investment in the wake of the recent crisis? For over four years, my ministry has been the public administration coordinator in the field of the European Fund for Strategic Investments (EFSI.) Our main activities include maintaining day-to-day relations with the EIB, investment monitoring, instrument promotion and cooperation with interested project promoters. The purpose of EFSI is to provide financial support for high-risk investment projects which, without adequate backing, could be considered too risky by private investors. Poland is the most successful beneficiary of EFSI support. However, it is not because Poland is a highrisk country, in fact it is developing faster than the rest of Europe, despite the global slowdown. It is a leader because it successfully and effectively competes with the largest European economies. Poland currently ranks fifth in the EU and first in the V4 (Visegrad ed.) group in terms of the value of approved EFSI support – to the tune of some EUR 4 billion. It ranks fifth in the EU in terms of the number of large-scale investment projects which have received support - 47 of them. The total value of Polish applications which have been approved is PLN 48.5 billion. Among them are 27 private, 11 local government and 9 state projects. EFSI funding is used not only by promoters of large-scale projects,
but also by Polish small and medium-sized enterprises and mid-cap companies. Poland ranks fifth in the EU when it comes to EFSI support for SMEs. Work is underway to extend the EFSI beyond 2020. The European Commission has proposed a new instrument called the InvestEU Fund. It is to be launched in early 2021. The decision to carry on the support formula has been motivated by the success of EFSI support schemes. Poland intends to actively compete for funding for its investment projects. We assume that the BGK bank will be involved as a financial institution on the Polish side, which should offer fresh opportunities to those who apply for loans. What other forms of institutional support will Polish regions be able to count on under the sustainable development policy? We support mid-sized towns which are in decline - 122 of them have been identified on the basis of an analysis carried out by the Polish Academy of Sciences. Support is also needed for other areas at risk of marginalisation, such as Eastern Poland and Silesia. These areas have been listed in two key documents in the area of development policy - the Strategy for Responsible Economic Development and the National Strategy for Regional Development 2030. The former provides for comprehensive measures PM
OUR GUEST in the area of urban development. I have already mentioned the City Partner Initiative. There is also a package for mid-sized towns. During the pilot edition of the Urban Partner Initiative, 33 towns developed solutions for improving air quality, urban mobility and revitalisation. These solutions can be adapted in other places, because on the one hand, solutions are offered on a micro scale, and on the other, recommendations have developed for systemic improvements. Soon, the participating towns will enter a competition for micro-grants, thanks to which it will be possible to finance some of the proposed solutions. At the same time, preparations are underway to launch the next edition of the initiative. The package for mid-sized towns is based on two pillars: support in making public investments, and creating conditions for private investment. The programme is targeted at 255 mid-sized towns, 122 of which have been selected by the Polish Academy of Sciences to receive special support. In the area of regional policy, the Programme for Silesia currently integrates 116 projects with a total value of PLN 62 billion. The main goal is to focus the development of the region on innovative and highly productive industries. In particular, this will mean combatting smog, supporting R&D activities, increasing the quality of human capital, revitalisation and development of electro mobility. In addition to support coming from Regional Operational Programmes, regions situated in Eastern Poland also receive support under the national Eastern Poland programme 201420. Thanks to EU funding, the standard of living in that macro-region is steadily rising, thus approaching the Polish and EU average. We want to continue similar support in the new EU financial period. Which Polish regions can count on the improvement of railway infrastructure in the near future in connection with the Infrastructure and Environment Programme? It seems that this cabinet is giving priority to railway development. As part of the government National Railway Programme until 2023, a sum of nearly PLN 75.7 billion is available for railway investment projects. Of this amount, over PLN 40.3 billion is EU money. The largest amounts of funding are to be spent in 2020 - PLN 16.5 billion, 2021 PLN 13.2 billion and 2022 - PLN 10 billion. It is a big challenge. That is why, together with the European Commission, as part of a highlevel group, we strive to minimise possible threats to the effective implementation of such a large-scale investment programme. The group also deals with preparations for PM
THE EUROPEAN COMMISSION HAS PROPOSED A NEW INSTRUMENT CALLED THE INVESTEU FUND. IT IS TO BE LAUNCHED IN EARLY 2021. the implementation of projects under the EU 2021-27 Multiannual Financial Framework. The most important challenge is to implement goals related to the TEN-T core network by 2030. Nine out of ten euro coming from EU funding for railway infrastructure support is to be spent on projects implemented primarily by PKP PLK. A sum of over PLN 20 billion, that is 92% of funding earmarked for railway infrastructure, has been assigned to specific investment objectives. 30% of these funds, that is a sum of PLN 7.5 billion, has already been refunded by the European Commission. Poland is also the largest beneficiary of the EU Connecting Europe Facility (CEF) in the transport sector. As much as 82% of funding coming from CEF has been allocated for railway investment projects. PKP PLK SA is the largest CEF beneficiary in the entire EU. CEF funding is used to finance a total of 56 transport projects with an EU contribution of EUR 3.9 billion. We make sure that railways are an attractive and accessible means of transport. The development of railways throughout Poland is also one of the components of the Solidarity Transport Hub programme. From the largest Polish cities it will be possible to reach the new central airport by train within 2-2.5 hours, while travel time for passengers coming from Warsaw will be 15 minutes. What changes can entrepreneurs expect concerning special economic zones and regions as a result of a planned amendment to the Act on the principles of economic development policies? In what way are they likely to affect the allocation of funding under the EU financial plan for 2021-2027? We propose changes which will enable the drafting of documents related to the use of EU funding for 2021-2027. On the PM
one hand, these documents will constitute a strategic framework for planned economic development activities - strategies prepared at the national level, in individual regions and communes. On the other hand, they are related to the way EU funding is to be invested beyond 2020, that is the Partnership Agreement, operational programmes at the national and regional level. Parliament is still working on the bill. The most important thing is that we intend to complete the building of the strategic management system for the country's economic development. New development policy mechanisms are to implement the provisions of the Strategy for Responsible Economic Development. First, we need to increase the efficiency of the Polish development management system and gradually introduce a system of integrated national, provincial and local strategies. We need to strengthen public administrationâ€™s partnership with local government bodies and closely link socio-economic planning to spatial planning. Documents prepared at the national, regional and local government level should dovetail. We are introducing the idea of a programme, sectoral and territorial contract. The programme contract is meant to combine support with co-financing and the conditions for using EU funding. The sectoral contract will constitute a mechanism for agreements with individual regions regarding the scope of territorially oriented activities of individual government ministers responsible for respective development programmes. The territorial contract is to be used primarily to reach agreement on undertakings which are significant for local communities a commune, a group of communes or a county. We also propose to introduce legal regulations regarding the commune development strategy. A number of local government bodies have drafted such strategies, but their preparation was not regulated in any way. The strategy will not be mandatory - not every municipality needs to have such a strategy. This solution will be used for larger urban centres. We are also introducing a supralocal development strategy for groups of local government bodies. The possibility of drafting a joint strategy comes in response to the need to plan development activities which go beyond the administrative boundaries of a territorial unit. Documents prepared according to the amended regulations will provide help in applying for EU funding and other sources of funding, as well as in searching for private investors. Poland is now one big investment zone, and the government does not limit support for the development of entrepreneurship to special economic zones alone. â€˘ 2-3/2020 polish market
DOMESTIC COMPANIES BUILD BRAND POLAND
ZBIGNIEW GRYGLAS, Undersecretary of State at the Ministry of State Assets, talks to “Polish Market.” What role do state-owned companies play in building global Polish brands and in promoting the Polish economy? In Poland, we have underestimated the importance of brands for a long time. They constitute a powerful asset which does not just determine the price consumers are able to pay for a given product. They also build a company's credibility on the market, decide about its position, provide excellent identification, evoking associations – for example they are associated with the times PM
18 polish market
of childhood or youth. I believe that large companies in which the state is the dominant shareholder are in the vast majority global Polish brands perfectly identifiable abroad in their respective areas of activity (ORLEN, LOTOS, PZU). In my opinion, brands are of key importance for strengthening the image of the Polish economy's brand – boosting its credibility and perception among foreign business partners. State-owned companies which have been built for decades are a tangible sign of the country's stable economy
and legal environment, which is friendly for potential business partners and foreign investors. State-owned companies are often the most important patrons of Polish culture. How do you assess the CSR activities of the main state-owned companies such as LOTOS, KGHM and ORLEN? I appreciate state-owned companies’ commitment and active support of Polish culture. The activities of many companies in PM
OUR GUEST this area are quite impressive and multifaceted. Support is given to both large cultural events and small-scale local initiatives, which significantly reduces their commercial attractiveness, but is extremely important for the local community. They bring it together, shape its identity, requiring cooperation of local public activists. Without outside support, such small, local undertakings often would not even have a chance to happen. I think it is worth mentioning PKN ORLEN’s support for the National Frederic Chopin Institute, which popularises music by and knowledge about the composer in the outside world, the Ignacy Łukasiewicz Foundation of the Museum of the Oil and Gas Industry, sponsorship of the Zbigniew Herbert International Literary Competition, cooperation with the Polish Athletics Association and the Children and Youth Sport Association, as well as support for cinema production. Other large stateowned companies- LOTOS, Tauron, KGHMare also involved in similar cultural activities, promoting Poland, its culture and science, as well as sports activities through the sponsorship of national teams, recently even of Formula 1 teams and talented young people. It is also worth mentioning that through their activities, large companies in which the state is the dominant shareholder, set standards in the area of labour relations, winning numerous awards in competitions for the most desirable and employee-friendly employers. Both in the way they conduct business and through their vision, they comprehensively implement the concept of corporate social responsibility. The answer to the new industrial revolution, leading up to Economy 4.0, is the Future Industry Platform Foundation, which supports SMEs. Large companies have their own resources to move with the times, but are they going to get any help from the state to face new challenges? How do you assess what has been achieved by Polish state-owned companies such as KGHM in robotization and R&D, and in the case of LOTOS - hydrogen fuel stations? It is in the interest of the state as the owner to care for the development of companies which are its assets. Specialised agencies and ministries offer a range of instruments in support of entrepreneurs and companies, which state-owned companies take advantage of. I believe that the companies have made a good use of the funds offered to them for the modernisation of the technological base and the expansion and strengthening of research and development departments. Constant development and watching market trends guarantee success. As the owner, the state PM
IN MY OPINION, BRANDS ARE OF KEY IMPORTANCE FOR STRENGTHENING THE IMAGE OF THE POLISH ECONOMY'S BRAND – BOOSTING ITS CREDIBILITY AND PERCEPTION AMONG FOREIGN BUSINESS PARTNERS. should support companies and open up fresh opportunities, and look for new solutions in line with current trends. In my opinion, investing in renewable energy sources creates great opportunities which will definitely bring fruit in the environmental, economic and social dimensions. I am proud that a new Polish specialty is being born in this area. For several years, I have been actively involved in issues related to the construction of offshore wind farms in the Baltic Sea. This investment project, worth PLN 100-120 billion, is being developed in such a way as to involve as many Polish companies as possible. The development of this branch of industry offers good opportunities for the energy, mining and shipbuilding sectors, and sea ports. In mid-January, the Ministry of State Assets advanced a bill on the promotion of electricity generation in offshore wind farms, which is meant to enable the development of this industry and support the construction of offshore farms in the Baltic Sea. Under the bill, investors who are planning to build offshore wind farms in the Baltic Sea will be obliged to cooperate with Polish companies and document this cooperation in the form of reports. When it comes to the foreign expansion of Polish companies and finding new outlets, what investment projects pursued by Polish industry do you consider to be the most important? I closely watch the concerted and institutionalised initiative by the largest companies from Central and Eastern Europe, among which top Polish companies play a leading role, which is aimed at the global development of the Three Seas region. In January, representatives of 12 largest and most dynamic Central and Eastern European companies, meeting at the Polish House in Davos, signed a memorandum to form the Business Council of Growing Europe. The goal of the initiative is to promote Central and Eastern Europe as an attractive destination for investors from around the world, and to support cooperation between the region’s business leaders. The idea behind the project is to make the Three Seas region into a centre PM
for the development of the latest technologies, infrastructure and renewable energy sources. I highly appreciate foreign investments by the largest domestic carrier PLL LOT - both in terms of the fleet, and the consistent opening of new connections, without which the airline would not stand a chance of competing with the largest market players. In addition, the opening of new routes by LOT usually translates into an increase in investment in Poland by business from countries which become new destinations for the carrier. At a time when many clothing and footwear companies are recording a significant decline in revenues, one of the leading Polish footwear companies, CCC, is recording a steady increase in sales, and constantly invests in the development of an online sales platform, thus gaining new markets. Recently, CCC has been dynamically expanding into the Middle East. In the course of work on the project regarding the construction of offshore wind farms, I have had the opportunity to find out more about the history and activities of a number of domestic companies whose international activities and foreign investments, which are little known at home, have made them world leaders in the industry. It is worth mentioning TF Kable - one of the largest cable supply companies in Europe, including high voltage cables for onshore and offshore wind farms. It is Europe’s fourth largest company in its field. Following a series of successful foreign acquisitions, factories in Poland and the UK belonging to the group took part in the implementation of 33 offshore wind farm projects and 70 oil and gas industry projects. Another Polish company in the heavy industry area is Wielton. Following successful foreign investments, the company based in the town of Wieluń is now one of the three largest manufacturers of semi-trailers, trailers and car bodies in Europe, and is among the industry’s Top 10 manufacturers. As you can see, Polish companies, regardless of their size, are constantly looking for new development and sales opportunities for their products and services, successfully implementing their plans, thus contributing to building the Polish economy’s brand throughout the • world. 2-3/2020 polish market
WOJCIECH MURDZEK Deputy Minister of Economic Development, talks to Jerzy Mosoń.
TO NEGLECTED REGIONS You were a guest of the Pearls of the Polish Economy gala event at the Royal Castle in Warsaw in December, where prestigious "Polish Market" awards were presented. What role do economic awards play in the public perception? This particular ranking is based on calculations of data provided by individual companies with the use of algorithms, which means that the results are objective. The mechanism has been developed by a team of scientists from the SGH Warsaw School of Economics. As a member of a number of competition juries, but also as a person who has won nominations and awards myself, I admit that winning economic rankings gives you not only joy, but also a very important promotional tool. As a mayor of the town of Świdnica, I repeatedly entered my town for various competitions to make it more appreciated. As a member of the jury, I also assessed the activities of others. In the latter case, we even managed to create a local brand in the form of the Świdnica Griffin Award. PM
20 polish market
incentives to those who want to invest in Poland. However, we should bear it in mind that the final decisions on whether and where to invest are made by entrepreneurs themselves. By shaping and modifying the legal and organisational environment, we give local government bodies and special economic zones the tools which they can use to encourage and motivate entrepreneurs to invest in Poland. The entry into force of the law on supporting new investments and - as a result - the creation of the Polish Investment Zone, has provided another impulse to invest in this country. The effects of these actions are already visible. Within less than a year and a half of the Zone’s existence, 432 investment decisions have been made. Many of these investment projects will be implemented in areas which were not
previously perceived as attractive for business. It is also the result of good cooperation between the Polish Investment Zone, entrepreneurs and local government bodies. This year, we intend to amend the Act on the Polish Investment Zone to make it contribute even better to the further development of individual regions. I’m also glad that investors have noticed the business and market potential which lies in eastern Poland for some time now, and they are increasingly keen to locate their investment projects there. What kind of investment will the Polish government encourage the most this year? We definitely want to encourage investment in modern technologies, to significantly develop the scale of automation, digitisation and robotisation of Polish enterprises. We PM
Photo. Katarzyna Milkiewicz
The town of Świdnica is part of the Wałbrzych Special Economic Zone InvestPark, which is also one of our award winners. Most other special economic zones are doing very well, too, and it is important to note that under current regulations, their existence is guaranteed until 2026. However, under the Act of May 10, 2018 on supporting new investments, all of Poland is now a special economic zone. There has been some concern over a possible outflow of investment toward traditionally the most attractive regions. In what way is this likely to affect existing special economic zones? The Ministry of Economic Development, special economic zones and many other institutions, are committed to providing PM
OUR HEARTS AND MINDS MAY BE FULL OF NOBLE IDEAS REGARDING EDUCATION, CULTURE, SPORT AND TOURISM, BUT WITHOUT A PROSPEROUS ECONOMY IN A GIVEN REGION, COMMUNE OR TOWN, IT WILL BE DIFFICULT FOR US TO IMPLEMENT THEM. Growing investments in individual regions of Poland Source: Own study
also want to build and strengthen cooperation between the world of science and business. But we must keep our feet firmly on the ground. That is why I always say that our hearts and minds may be full of noble ideas regarding education, culture, sport and tourism, but without a prosperous economy in a given region, commune or town, it will be difficult for us to implement them. We also count on improving the housing situation of Polish families. A new opening of the Housing Plus programme is ahead of us. We will analyse the extent to which it should involve further entities - developers, local government bodies and, above all, housing cooperatives. Soon we will also propose changes regarding the financing of Social Housing Associations. Under the new regulations, as of January 1 it is possible to invest in regions of Poland where mineral deposits can be found. What does this mean in practice? This decision was made because localities where the extraction of mineral deposits has become so difficult that it may be unprofitable in the near future, have argued that it simply didn’t make sense to prevent investors from coming in. PM
Government-financed investment projects. The map shows the amount of funding available from the national budget, European funds, Special Economic Zones, Local Government Road Funds, Regional Operational Programmes and National Operational Programmes. * The data covers the period beginning November 16, 2015.
What are your economic forecasts for next year? The latest World Bank forecasts regarding the Polish economy are very optimistic. GDP growth of 3.6% is expected this year. Besides, both a correction of 2019 GDP growth and the World Bank forecast for 2021 mean that the Polish economy is likely to grow at a rate of 3.3% per annum. This confirms that the Polish market is stable. Poland is growing
three times faster than the Eurozone average. I keep stressing, however, that entrepreneurs are at the forefront of the economy. That is why they need to be supported through a streamlined legal environment which will help them to operate and develop their businesses. That’s also the mission of the Ministry of Economic Development. We are constantly trying to encourage entrepreneurs to invest their capital in Poland. It can help us to maintain our current image of a stable, predictable, and increasingly better socio-economically developed, and at the same time, secure country. Both from the point of view of investors and tourists who are more and more willing to visit Poland, thus appreciating what we offer in terms of culture and natural attractions. •
Can we expect a lot of investment in formerly excluded areas? All the time we listen carefully to the voice of local government bodies and the boards of directors of special economic zones. We try to meet their expectations by removing barriers that limit investment opportunities, and by creating a good climate. But ultimately, it will be up to entrepreneurs and their business decisions whether our actions do contribute to investment growth in Poland. PM
Source / Update: www.gov.pl /web/map-investment map #
2-3/2020 polish market
PAIH EXPANDING INTO FOREIGN MARKETS GRAŻYNA CIURZYŃSKA, Acting President of the Polish Investment and Trade Agency (PAIH), talks to "Polish Market." Foreign trade offices operated by the Polish Investment and Trade Agency (PAIH) have replaced former Trade and Investment Promotion Departments. How does this new system work? The new system brings tangible results. Even though the development process is still underway, record results have been achieved in servicing both Polish companies interested in exports as well as in terms of the number of investment projects implemented in Poland. You can see that the market recognises the value of the change we are implementing and trusts us in the process of supporting business goals. Last year, the value of investment projects implemented with the agency’s support amounted to over PLN 13 billion. In the same period, as many as 15,000 Polish companies placed their trust in us, which found expression in assistance provided by PAIH experts in export processes and in building the position of Polish brands on foreign markets. PM
22 polish market
WE PARTICULARLY WANT TO PROMOTE THE IDEA OF BOOSTING POLISH EXPORTS, AND TO SHOW THE BEST EXAMPLES OF EXPORT ACTIVITIES DURING MEETINGS IN INDIVIDUAL REGIONS.
In what practical ways does PAIH support exporters? Our goal is to provide solutions and support which Polish entrepreneurs expect. Studies show that among their top five crucial needs, Polish companies list the need to set up meetings with business partners in foreign countries. We have organised over 500 such meetings around the world. Our experts - in addition to extensive knowledge - often have at their disposal what is very important in the business world, namely good relations with local business communities and organisations which support business development. This directly translates into the effectiveness of the support provided. Participation in trade fairs, also holds a high position on the list of Polish exporters' priorities, and in some industries it is the most effective way to establish business relationships. We have invited companies to nearly 300 promotional events organised by us around the world. The numbers speak for themselves. PM
What are PAIH’s current goals? What new challenges are you facing, having set up a network of foreign offices? Following the overhaul of commercial offices which have been adapted to market expectations, this year the agency will step up its activities in respective Polish regions, to reach those companies which have not yet cooperated with PAIH. We know that not all entrepreneurs have had the opportunity to participate in our flagship PAIH Business Forum and meet with Agency experts. To let them find out more about what we offer, and to provide information about individual markets and industries, we will be more active in smaller urban centres. We particularly want to promote the idea of boosting Polish exports, and to show the best examples of export activities during meetings in individual regions. A lot remains to be done in this respect. This year is also a time of hard work in the field of education of Polish entrepreneurs and promotion of the best practices of foreign expansion. We want to use modern communication channels to reach the largest possible number of entrepreneurs with our attractive message. PM
What tools does PAIH use to promote Polish business abroad? The best promotion of Polish business on foreign markets is achieved by reaching clients with a Polish product or service. In addition to traditional tools such as trade fairs and B2B meetings, which are meant to raise awareness of the range of Polish products and services, the agency also organises business missions for Polish entrepreneurs. Their aim is to reach business partners, support organisations and local administration to present their offer and convince our partners to invest. The benefits are often mutual. PM
On January 31 the UK formally left the European Union, and a transition period of 11 months began. How to get ready for the final Brexit? What should Polish entrepreneurs bear in mind? Where can they look for support? Given the still vague terms of Brexit, and considering that the UK is Poland's third largest trading partner, PAIH intends to focus on supporting domestic companies that need a special sense of security and strong support from development institutions in this turbulent period. Our experts from the Agency's London office follow the negotiations between, the UK and the European Union on an ongoing basis, and keep in touch with the British administration to provide Polish entrepreneurs with practical tips on how to do business in the new realities. PM
The coronavirus outbreak in China is already affecting the global economy. Is there a way for Polish exporters to try to lessen the trade deficit with China and other countries? It is known that there is a shortage of medical resources in many areas affected by the epidemic. When it comes to the coronavirus epidemic, the most important thing both for Poland and the rest of the world is to stop it. The current situation in China presents short-term opportunities to gain new clients in some sectors. For example, one of our clients, a company which sells personal protection equipment, has won a new contract. Nevertheless, to reverse the negative trade balance with China requires a long-term perspective and we should focus on it. In this regard, our two offices in China are intensively working with many Polish entrepreneurs from various sectors to acquire new clients. I believe that concerted efforts will ultimately bring better results than demand created by emergency situations such as the coronavirus epidemic. PM
In a nutshell, what should an entrepreneur considering foreign expansion abroad pay attention to? What tips would you offer as Poland’s most important public organisation which supports Polish exporters? There is no universal recipe that will allow you to achieve success in any foreign market regardless of the industry. However, we can point to some factors which contribute to success. Comprehensive groundwork, knowledge, time and financial resources, courage and determination are all useful in this process. Despite the fact that the experience gained from each new market seems to facilitate further expansion, it is advisable to stay humble. PAIH experts remain at the disposal of Polish business to make sure that the process of preparation and implementation of expansion into new markets runs smoothly. • PM
2-3/2020 polish market
SCIENCE CLOSER TO BUSINESS A LEAP OVER THE "VALLEY OF DEATH" Deputy Minister of Science and Higher Education GRZEGORZ WROCHNA, talks to Jerzy Mosoń.
The LEADER programme, which is meant to support research activities, is addressed to young people. What about older researchers with substantial achievements? We have decided to focus on younger scientists, because older generation scientists usually have well-established positions at their colleges and institutes, they have their own laboratories and access to various grants. Thus there are no barriers which prevent them from developing their ideas and implementing them for the economy. However, young people require special support. We provide them the support they need, not just because we want to help them. Our intention is to help Poland develop dynamically, in particular in terms of advanced technologies. In this area, young people seem to be at an advantage over older generation scientists. PM
What do you mean by that? The winners of the LEADER programme have grown up in a world where new technologies keep being developed. They are the Internet generation. For them, new technologies are a piece of cake, they have a different way of thinking and different ways of communicating than their older colleagues. That is why we expect ground-breaking ideas to come from young people. PM
What has surprised you among the awardwinning projects in the LEADER programme? I was particularly surprised by the variety of topics and the very high degree of maturity of these ideas. These were not abstract ideas, such as "it would be nice to fly over streets and thus solve the problem of traffic." PM
Which project has impressed you the most? What do you consider to be the most valuable idea for the Polish, and maybe, the global economy? I wouldn't want to say that some were better than others. But I must admit that my attention was drawn to research in medicine, where it is probably the most difficult to navigate due to competition from international companies. Besides, health is something priceless for us, it is worth every penny. PM
Deputy Minister of Science and Higher Education Prof. Grzegorz Wrochna speaks at the Gala of the 10th Edition of the LEADER Programme organised by the National Centre for Research and Development
24 polish market
OUR GUEST What to do to keep the best scientists in Poland? There are two ways to do this. One is to attract large foreign companies to Poland because they can provide young scientists excellent conditions to develop. We already have R&D centres in Poland operated by Google, Microsoft and IBM, which have been located here precisely because we have gifted and well-educated young scientists. The fact that big players are here gives Polish scientists the opportunity to live at home, while working for world business leaders. In the second stage, we would like to develop native companies, an entire industry to support young people at a very early stage, so that they can start and develop companies of their own. This will mean that they will also be able to work in Polish research institutions. Of course, it is a major challenge, because foreign companies often have funds which exceed our budget, but programmes such as LEADER allow us to create competitive working conditions for the best. PM
Track programme, which is all about research supported by industry. Is the state able to encourage entrepreneurs to take more interest in scientists who sometimes do amazing, much-needed things, but the cost of implementing their inventions is too much of a risk for a private investor? I reckon that many inventions cannot be capitalised, because company boards need to focus on maximising profits within a relatively short period of time. Rarely do we have visionaries who are able to risk spending large amounts of money to develop ideas which can bring profit within ten or twenty years. This period of waiting for the investment to be monetised is called the "valley of death." Someone needs to invest to enable those concerned to take a leap over the valley of death, and this requires a lot of money. With new technology, there is also the risk that it just won't get adopted. PM
In the United States, the defence industry often takes this risk. In other countries there are funds which allow companies to survive this most difficult period of commercialisation of the product. What about Poland? There are more and more venture capital ideas, but when it comes to specific activities of the Ministry of Science, it seems to me that the most effective are NCBR programmes, in which the risk of investment is shared between industry and the state, where projects are jointly financed. This makes it easier for company boards to make difficult decisions. Equally importantly, NCBR provides verification of ideas from the research side. PM
Is there a chance to develop a two-way relationship between the Ministry of Science and Higher Education and the largest Polish companies so that young people can actually develop in Poland? Yes, the Ministry of Science and Higher Education offers support at all levels, from basic research to applications. The National Science Centre offers programmes such as Sonata and Sonatina, which are targeted at young people. An important instrument is the programme of doctoral studies combined with implementation work. It means that young people are no longer forced to hold a job unrelated to the field of their doctoral studies to be able to further their research career. Young doctoral students are now able to develop their ideas working for a company in line with their field of study, which enables them to obtain their postgraduate degree. So far, over 600 Polish companies have benefitted from the implementation doctorate programme. The offer of the National Centre for Research and Development (NCBR) addressed to industry is also very rich. We have recently organised a breakfast for innovators at the Ministry. We invited beneficiaries of the Fast PM
So what do you think about the NCBR competition for a Polish wind farm? The prize is PLN 1 million. I think that competitions like this play a similar role to that of the US defence industry, or the moon landing programme. If we have a very ambitious goal, the implementation of which requires new ideas, then new technologies are born. It is a very good combination of humanity’s global goals with those of a single household. Regardless of PM
whether the goal is big or small, it is important that it makes people do some creative thinking, which can produce ground-breaking solutions for the entire economy. When it comes to the Internet, it wasn’t that a group of IT wizards specifically decided to sit down and invent the network. It was a by-product of another project. New particle physics was being studied at CERN near Geneva, but the scale of experiments carried out by thousands of physicists and engineers in many countries, was so enormous that there was a need to come up with an effective means of information flow. The Internet was the answer. And now we all use it so widely that it has become a major independent sector of the economy. Can Polish science help the country avert a future blackout? Judging by the popularity of solar panels, Polish consumers are keen on innovation. Something exciting may come out of the household power plant project. We in Poland are fond of new technologies. Energy will probably be no exception. Many homes are already equipped not just with solar panels, but also heat pumps. Blackouts, however, could be avoided only by providing modern power generation on large scale, namely nuclear reactors. Here, Polish science can help a lot, ensuring safety of the plants. PM
Is the approach of ordinary Polish citizens to science changing in any way? I have noticed very significant changes when it comes to opportunities for young people in recent years. In the past, few young Poles used to speak a foreign language. A trip abroad was primarily an opportunity to earn more money, but many found it difficult to adapt to other cultures. Now it’s completely different, teenagers communicate with friends from other countries online. They learn foreign languages not only at school, but also through practical communication with other people. They travel abroad not just to pick strawberries, but they go there to study and work. For them, borders no longer matter. It is very good that they are open, that they are able to move freely around Europe. It’s up to us to create conditions to enable them to implement their ideas. • PM
OUR INTENTION IS TO HELP POLAND DEVELOP DYNAMICALLY, IN PARTICULAR IN TERMS OF ADVANCED TECHNOLOGIES. IN THIS AREA, YOUNG PEOPLE SEEM TO BE AT AN ADVANTAGE OVER OLDER GENERATION SCIENTISTS. 2-3/2020 polish market
L E A D E R P RO G R A M M E 10 T H E D I T I O N
H U G E S U P P O RT F O R Y O U N G S C I E N T I S T S As part of the 10th edition of the LEADER programme, the National Centre for Research and Development, acting on behalf of the Minister of Science and Higher Education, awarded 42 talented scientists with grants worth PLN 60 million. Entries for the next edition are now being submitted. A sum of PLN 100 million is available for innovative research.
D Source: NCBR
uring a gala ceremony at the hall of the Physics Faculty of the Warsaw University of Technology on January 16, a group of young Polish researchers received awards and symbolic cheques from deputy Minister of Science and Higher Education Prof. Grzegorz Wrochna and Director of the National Centre for Research and Development Wojciech Kamieniecki, D. Eng. “The grant winners are brave people who have accepted the challenge, and are keen to start original research, build research teams, and manage entire projects. For them it is a great opportunity and responsibility. For the National Centre for Research and Development, it is a prospect of expanding the group of beneficiaries with an ambitious, highly specialised staff, perfectly familiar with the ecosystem of Polish and global innovations. For all of us, it is a chance for inventions which will revolutionise specific areas of our lives,” said Wojciech Kamieniecki, director of the National Centre for Research and Development. 233 young researchers entered for the 10th edition. The majority of the projects was related to technical and engineering sciences, and thus the position of universities of technology as places where research studies are conducted as part of the programme, has been strengthened. A project by an innovative medical doctor from Warsaw, Eliza Głodkowska-Mrówka, who in cooperation with the Medical University of Warsaw will be working on the diagnosis of new subtypes of acute lymphoblastic leukaemia, was rated the best. “The LEADER programme has been very popular from the very beginning, which is confirmed by the growing number of applicants every year. Clearly, young, talented researchers who are at the start of their scientific careers, have ambitious ideas with a potential for commercialisation, and the enthusiasm to implement these ideas. To assist them in their efforts, the National Centre for Research and Development has increased the competition budget to a sum of PLN 100 million,” explained Prof. Grzegorz Wrochna, deputy minister of science and higher education.
26 polish market Laureates of the 10th edition of the Leader Programme
Left to right: NCBR Director Wojciech Kamieniecki, deputy Minister of Science and Higher Education Prof. Grzegorz Wrochna, and Bartosz Hamankiewicz, PhD, one of the laureates of the 10th edition of the Leader Programme, a University of Warsaw scientist who develops new materials and new types of lithium-ion and sodium-ion cells with improved performance characteristics.
LEADER is the longest running programme pursued by the National Centre for Research and Development. Successive editions have been held since 2009. During this time, 379 young scientists, who are leaders in their fields, have received grants to the tune of nearly PLN 427 million for their own research projects. The average value of a grant within the programme is PLN 1.2 million. Entries are coming in for the next edition, whose budget has been increased to a sum of PLN100 million. Doctoral students, academic teachers and those who obtained a doctoral degree within the past seven years, are eligible for funding of up to PLN 1.5 million. Financing obtained in this way can be used for applied research and/or development work. Importantly, the project must be implemented in cooperation with a unit which is ready to hire the leader for the duration of the project and his research team for the period of work on the project. The closing date for entries is March 16, 2020. •
MACIEJ MALSKIBRODZICKI, expert of the National Centre for Research and Development (NCBR), talks to Jerzy Mosoń.
– T H E W I N N E R TA K E S I T A L L At the beginning of October 2019, the NCBR has announced the “Grand Challenge – Energy” competition to develop a household system for the conversion of wind power into electricity and its storage in the most efficient way. Are you hoping to awaken in Polish society the spirit of scientific research and invention able to outperform the engineering thought of international corporations? Indeed, there is still quite a lot to do when it comes to raising the efficiency of wind power generation. But the project funded from the budget of the Smart Growth Programme also has other objectives. Wind power generation is now associated with on-shore and off-shore wind farms. But as these installations disturb the landscape, projects involving the construction of wind turbines sometimes trigger protests on the part of the local residents. Additionally, there are legal regulations which limit the number of sites available for wind farms. As a result, the NCBR has decided to focus on small residential wind power plants, joining in this way the fight for clean air. PM
But what is the point of it all, considering that such installations are able to generate relatively small amounts of electricity and, which is even more important, do so only from time to time? Every kilowatt-hour counts in our effort to have a clean environment and lower electricity production costs. The more we manage to save on electricity generated from traditional fossil sources, such as coal and gas, by replacing them with renewables, the more we contribute to PM
reducing carbon dioxide emissions. In short, our goal is to draw public interest to renewable energy technology so as to enable a large part of households to cut their electricity bills and at the same time make their own contribution to climate protection. We also want to solve the problem of uncertainty about the presence of the energy source which is wind by selecting the most efficient energy storage method. The competition is not only for a wind turbine, but also an installation able to store the produced electricity so that it can be used when weather conditions become unfavourable. Designing an electricity storage system on paper is one thing; it is quite another to actually build it. For a Polish engineer, even an outstanding one, it may be too much of a financial challenge. Perhaps a grant should be offered for a concept while production should then be the task of big business? Most of the NCBR competitions so far have involved grants, but the results have not always been commercialised. We want to go one step further: it will be complete installations that will be competing with each other. In autumn 2020, during the great final of the competition we will be publicly testing for six hours 10 selected prototypes, creating identical wind conditions for them. I admit that developing such an installation may be difficult and costly. This is why individuals taking part in the competition may cooperate with firms helping them in the technical implementation of their concept. This kind of support is even advisable because once the winner has received the huge financial prize PM
INDIVIDUALS TAKING PART IN THE COMPETITION MAY COOPERATE WITH FIRMS HELPING THEM IN THE TECHNICAL IMPLEMENTATION OF THEIR CONCEPT. from the NCBR it will be easier for them to talk with the partner firm about further cooperation and, which is the most important, also about starting production with the economies of scale. What are the participants competing for. As wind technology is already known, the NCBR has decided to exploit the well-tried instrument of Grand Challenge used by the US DARPA agency (Defense Advanced Research Projects Agency). The idea is for the organizer of a competition to fund a high prize, but only for the best design. In this case, it will be worth PLN1 million. So the winner takes it all. The American experience has shown that this kind of approach provides the biggest motivation. • PM
2-3/2020 polish market
IN THE SPOTLIGHT EWA MAŃKIEWICZ-CUDNY, President of the Federation of Scientific and Technical Associations FSNT-NOT, organiser of the World Engineering Day in Poland.
he World Federat ion of Engineering Organisations (WFEO) has come up with an initiative to hold an international engineering day to highlight the role of engineers and the importance of their work for society and the development of civilisation. The World Engineering Day for Sustainable Development will be celebrated annually beginning on March 4 this year. It was proposed because it refers to the day the organisation was established in 1968 by representatives of 50 national scientific and technical associations, including FSNT-NOT. It currently affiliates over 100 associations. This proposal met with enormous support from the engineering community during this year's World Engineers Convention in Melbourne in November (WEC), which gathered about 4,000 representatives of this profession from around the world. The Polish delegation numbered 28 members and was one of the largest and most active delegations. In November 2019 the 40th UNESCO General Conference adopted a resolution to hold the World Engineering Day for Sustainable Development on March 4 each year. World celebrations on this day will take place at the UNESCO headquarters in Paris. Engineering is an important part of modern life and is the basis of our health and well-being, social systems, culture, as well as the functioning of cities and economies. The goal of the World Engineering Day for Sustainable Development will be to provide an annual focal point to appreciate the importance of engineering in modern life and its central role in developing technologies
28 polish market
necessary to fight climate change, as well as for the sustainable development of civilisation. It will have a significant impact on the lives of every inhabitant of the globe, enabling social and economic activities in every area of human activity, including culture and art, education and in many other fields such as research, medicine, information technologies, communication and energy. Everyone is invited to actively celebrate the World Engineering Day. WFEO has received around 100 letters of support from major international and national institutions and universities, representing 23 million engineers around the world. FSNT-NOT supports the WFEO initiative as well. It intends to actively participate in the World Engineering Day for Sustainable Development. I believe that Polish engineering, university, research and business institutes should be actively involved in organising events to promote their activities. In Poland, the celebration will be devoted to artificial intelligence and the contribution of Polish engineers to the development of world civilisation. Coordinated celebrations around the world are meant to inspire thousands of young people to become engineers. The day will be an opportunity to discuss challenges facing engineers, the importance of engineering in transformations in manufacturing, and to raise the level of public awareness of the importance of creativity and innovators in the life of societies. The event which will take place on March 4 at the Magna Auditorium of the Poznań University of Technology will be attended by Prof. Tomasz Łodygowski, Rector
of the Poznan University of Technology, Jadwiga Emilewicz, Minister of Economic Development, which has extended its patronage over the World Engineering Day for Sustainable Development, Ewa MańkiewiczCudny, President of FSNT-NOT, Prof. Tadeusz Słomka, Rector of the AGH University of Science and Technology, chairman of the Conference of Rectors of Polish Universities of Technology and Prof. Jerzy Barglik, President of the Academy of Engineering in Poland. A presentation about the Poznan University of Technology will be delivered by its Vice Rector, Prof. Teofil Jesionowski. Participants will also take part in the opening of an exhibition devoted to its achievements. I am sure that the World Engineering Day for Sustainable Development will help to raise the profile of engineering and technology, and the prestige of technology developers. The role that the engineer plays in improving the quality of life around the world, and in achieving the UN sustainable development goals, will be underscored. The day will also serve to promote the contribution of engineering and the engineering profession to modern life. Engineering and engineers play a key role in combating climate change and ensuring sustainable development. This is necessary to develop resilient infrastructure which will be able to withstand freak weather such as flash floods, cyclones and bushfires, especially in developing countries of Asia, Africa and in Small Island Developing States (SIDS) which are particularly at risk. There will be no progress without engineering creativity, which societies can use for their • joint benefit.
MORE WOMEN TAKE UP ENGINEERING MAGDALENA K. W YRWICKA, Professor of the Poznań University of Technology, Chairwoman of the Council for the Science of Management and Quality, Dean of the Faculty of Engineering Management.
o be an engineer – it makes you feel proud. Currently, it also means that you are welcome on the labour market. Maybe this is one of the reasons women take up technical studies. An engineer looks for new solutions, asking questions like "How is it done?", "How to avoid problems?" or "How to get better quality, reduce investment, and achieve the desired effect faster?". This means that all troubles, threats and disruptions become an inspiration to look for ways of dealing with them or - if possible – to eliminate problems. The engineering profession - according to the English definition of 1828 - is the art of managing forces of nature to the benefit of man. So, the engineer deals with designing something which is needed, and bringing it to a state when it can be made, works well, serves the user, does not generate unnecessary costs, does not harm people and does no damage to the natural environment. The word "engineer," derived from the Latin word ingeniatus, means someone who can think of something, is smart, has an open mind. Once engineers were defined as people who dealt with the construction of war machines and fortresses (military engineering). When this art began to be used for other purposes:
construction of dams, roads and bridges - the concept of civil engineering was born. Then came other areas. Now there are many engineering professions which involve technology or in-depth research and analysis. Women are great at these professions. Creativity and smart thinking are not the exclusive preserve of men. Women, too, willingly and courageously take up challenges, experiment in laboratories, come up with ideas for new products and services, look for new design, execution, protection and servicing methods. At the Poznań University of Technology, women prevail among chemists, architects and at the Faculty of Engineering Management (security engineering, logistics, engineering management). Even faculties which were once considered very masculine, such as mechanical engineering, transport, electrical engineering, telecommunications, and automation and robotics, are beginning to enjoy popularity among women. This is probably due to a change in the spectrum of tasks and ways of functioning in these professions brought about by technical progress and the use of new technologies. The nationwide "Young women, why don’t you take up studies at universities of technology" campaign caused the number of women
who take up engineering studies to grow significantly. Studies conducted on a yearto-year basis show significant changes since 2010 the number of women students at the Poznań University of Technology has increased by about 39%. Studies show that women are often more determined and persistent in search of knowledge than their male colleagues. Perhaps they subscribe to the saying that there is a time for everything and that studies are the time to charge your batteries, to acquire professional competences which will make it easier to start a career. •
MAGDALENA K. WYRWICKA A graduate of the Faculty of Mechanical Engineering, specialising in Organisation and Industry Management, began her professional career by working for over three years as a technologist, programming numerically controlled machine tools. In the scientific community, this enabled her to seek a methodology for the gradual, flexible implementation of automation, to study project management conditions, innovation and enterprise development, as well as systemic analyses of knowledge transfer in business networks and foresight studies.
THE WORD "ENGINEER," DERIVED FROM THE LATIN WORD INGENIATUS, MEANS SOMEONE WHO CAN THINK OF SOMETHING, IS SMART, HAS AN OPEN MIND. 2-3/2020 polish market
A LEADING RESEARCH INSTITUTE IN CONSTRUCTION
he Instytut Techniki Budowlanej (ITB) is the largest research institute operating in the field of construction in Poland, while being widely recognized in Europe and around the world. Thanks to the experienced staff using the latest testing methods and specialized equipment, the Institute supports the development of national and international construction industry. For 75 years, the ITB has been conducting research works on a wide range of technical issues, including structural safety and durability, fire safety, comfort of use, energy efficiency and environmental sustainability.
30â€‚ polish marketâ€Š
The Institute, through its activities, supports manufacturers in the process of placing construction products on the market with CE marking and national building mark. As an accredited body in the national system and notified body (No 1488) in the European system, ITB participates in a process of assessment and verification of constancy of performance of wide range of construction products. The scope of accreditation of the ITB Group of Testing Laboratories covers over 3,500 testing methods. Annually, over 4,000 test reports are issued. The Institute, as the Technical Assessment Body, issues annually several hundred National Technical Assessments and European
HIGH QUALIFIED EXPERTS PROVIDE LARGE-SCALE AND MULTIDISCIPLINARY INVESTIGATIONS OF CONSTRUCTION WORKS.
commercial and industrial buildings, skyscrapers, sports facilities, tunnels, airports, cultural and sacral buildings etc. Moreover, using defined simulation models and scenarios based on customer specifications and needs we support the development of high-performance construction technologies. The ITB is also an operator for the Environmental Product Declaration (EPD) programme for construction products. The EPD enables to analyze the product’s life cycle with regard to environmental impacts and to present these analyses in a transparent and standardized way. The Institute cooperates with other EPD program operators via Eco-Platform in order to reduce technical and administrative burdens for the industry. The Institute actively participates in shaping the construction environment throughout wide international cooperation in the scientific field (ENBRI, EGOLF, Eco Platform, ECTP, RILEM, ELGIP, CICIND) standardization works (ISO, CEN, PKN) and in the organizations of assessment bodies (EOTA, UEAtc, WFTAO). The effect of the Institute’s comprehensive activity is visible via numerous scientific and technical publications. Considering the current public interest, the Institute published in 2019 the guidelines on investigation of existing prefabricated buildings. The ITB conducts trainings and courses on, among others, acceptance of premises and facades, acoustic issues, assessments of prefabricated buildings, concrete technology and general requirements related to the marketing of construction products in the European • and national system. In 2019, over 700 people were trained.
Technical Assessments for non-standardized and innovative products. And as a certification body, the ITB oversees over 1,600 certificates issued for products manufactured in over 1,700 factories around the world. The Institute carries out annually over 600 technical opinions for the construction industry, owners or users of buildings and public authorities. High qualified experts provide large-scale and multidisciplinary investigations of construction works. Having extensive experience and knowhow we collaborate on implementing the most important construction investments in Poland: residential,
2-3/2020 polish market
FOREIGN TRADE PICKS UP Jerzy Mosoń
Until recently, experts were worried about the weakening growth of Polish exports in 2018, in particular due to an economic slowdown in neighbouring Germany, Poland's largest trading partner. But end-November figures provided ground for optimism, and initial 2019 estimates suggest that Polish foreign trade is picking up.
32 polish market
018 was not very successful for Polish exporters. Poland imported goods and commodities which were worth PLN 21 billion more than the value of its exports. Although 2019 foreign trade figures are yet to be announced, it seems that Polish foreign trade has made up for some earlier losses.
According to Statistics Poland data, the foreign trade surplus at the end of November amounted to EUR 1.9 billion. Moreover, in November alone, the trade balance was also positive and amounted to as much as EUR 3.2 billion. “We have set a new record, the largest foreign trade surplus in history,” was Prime Minister Mateusz Morawiecki’s reaction to these figures. This spontaneous reaction comes as no surprise. November was not the only record-breaking month for Polish exports. Favourable results were also recorded in September, when the surplus amounted to as much as EUR 830 million, and was the highest in 15 years.
DECEMBER PROVED NO DISAPPOINTMENT Even though the figures for December, when importers usually take the initiative, should be decisive in the overall assessment of 2019, one can already say that the foreign trade slump faced by Poland in 2018 has been reversed. In addition, according to preliminary Statistics Poland data, a small surplus of EUR 1.8 billion seems to have been achieved. If these trends are confirmed, despite the traditionally poor December figures, a significant improvement appears to have been achieved compared to 2018, when a EUR 4.6 billion trade deficit was recorded. Most importantly, though, higher exports were recorded with Poland’s ten most important trade partners. According to initial Statistics Poland data for 2019, the value of exports amounted to EUR 235.8 billion and of imports to EUR 234 billion.
BRISK TRADE WITH NEXT-DOOR NEIGHBOURS 2019 marked no changes in the positioning of Poland's most important trading partners. In the year to November, Germany was the clear leader. A third of all Polish exports ended up there, although some 0.5% less than the year before. However, if the dispute between the US and the EU regarding customs duties remains unresolved, Poland may suffer major losses as one of the main suppliers of automotive components and parts to the German automotive industry. The No.2 Polish trading partner is the Czech Republic, where a slow but stable exports growth of 1.1% year on year has been maintained.
POLITICS LOOMING LARGE OVER TRADE So far, the UK has been the No.3 market for Polish exporters, but things might change due to Brexit. While in the transitional period, export levels are likely to stay the same, a slump is likely beginning next year. It all now depends on the terms of a future deal, which is currently being negotiated.
MOST IMPORTANTLY, THOUGH, HIGHER EXPORTS WERE RECORDED WITH POLAND’S TEN MOST IMPORTANT TRADE PARTNERS.
34 polish market
MIECZYSŁAW TWARÓG, President, Polish Exporters Association Exports are the driving force behind Poland’s economic growth. Despite the slowdown in the European economy, the Polish Exporters Association expects Polish exports in 2020 to reach EUR 240 billion, including agri-food exports at around EUR 35 billion. In 2019 Polish exports were higher than the year before. Growing exports improved the trade balance. The EU remained the main market for Polish exports in 2019. There were clear disparities in the growth of exports to different EU countries. On the one hand, exports to the top 3 trade partners, i.e. Germany, the Czech Republic and Britain, continued to grow slowly, but on the other, exports to France, Austria, Romania and Hungary rose substantially. Last year’s export growth largely resulted from a diversification of export markets. Given the weaker economic growth in the eurozone, Polish entrepreneurs are more willing to take the plunge in more distant but promising markets in the Americas, Africa and Asia, which allows them to develop. Exports to non-EU developed markets increased last year. The US, Canada, Switzerland and Japan stood out in terms of export growth. In addition, exports to the CIS markets increased as well, including to Russia, Ukraine, Belarus and Kazakhstan. Exports to China, Korea, Egypt and the United Arab Emirates also grew by leaps and bounds. Last year, Polish export hits included: specialised machinery, household appliances, home electronics, motor cars, automotive parts, ships, aircraft, chemical products and plastics, as well as agri-food products, such as poultry, meat and meat products, milk and dairy products, apples, vegetables, canned and deepfrozen fruit, vegetables and mushrooms. The food industry recorded a high export growth of around EUR 32 billion.
POLISH EXPORTS MOSTLY INCLUDE MACHINERY, APPLIANCES, TRANSPORT EQUIPMENT AS WELL AS FOOD AND LIVE ANIMALS. CHEMICALS ALSO HAVE A SIGNIFICANT SHARE IN EXPORTS. According to Radosław Jarema, managing director of Akcenta Polish branch, this year promises to be good for exports. “Brexit is finally a fact. There are no more uncertainties. For EU companies, including Polish companies which trade with UK companies, the results of trade negotiations will be key. Both parties still have some time to shape future relations, but the value of the pound might be affected in the process. And this will be crucial for exporters’ and importers’ trade margins,” Jarema says. Poland exports goods and commodities of similar value to the Netherlands, France and Italy. The ten largest importers of Polish goods and services also include the US, Sweden and Hungary at No. 8,9 and 10 respectively.
SHOPPING ABROAD Poland’s main export market, Germany, also accounts for the biggest volume of Polish imports. Poland also imports a lot from China, with which a trade deficit is growing (cf. a separate article on Polish-Chinese trade). Interestingly, Poland imports a lot of goods and commodities from Russia. However, its share in Polish imports has decreased by 1% compared to the corresponding period of 2018. Poland has been buying large amounts of Russian coal, although this trend began to slow down last year. Eurostat data shows that by end-September, almost 2 million tonnes less was imported than in the corresponding period of 2018.
POLISH EXPORT HITS AND EXPENSIVE PURCHASES Polish exports mostly include machinery, appliances, transport equipment as well as food and live animals. Chemicals also have a significant share in exports. The structure of imports is similar, but fuels occupy an important position as well. The goal for the coming years will be to further diversify export markets, to make Poland less dependent on exports to Germany as the largest trading partner. Asian markets remain the biggest challenge, including China as one of the most difficult markets. In Europe, Polish business will need to face fresh competition brought about by the amended directive on posted workers. It is difficult to predict the long-term consequences of the coronavirus epidemic, which may become a global problem.•
36 polish market
JANUSZ WŁADYCZAK, President, KUKE Although exports in 2019 grew slower than the year before, the pace of growth was still strong, despite the adverse economic situation of Poland’s main trading partners, especially Germany, which had a brush with recession. Exports to China, Canada, Belarus, the United States, Romania and Ukraine were developing very well. At KUKE, we are particularly pleased with the ongoing recovery in trade with Poland’s eastern neighbours, where KUKE is the only Polish company which provides insurance for commercial and investment transactions. We are particularly pleased with the rising two-way trade with Ukraine, whose economy has stabilized and its growth rate places it at the forefront of European growth. Last year confirmed the strong international position of Polish enterprises which managed to cope with the eurozone slowdown, the confusion around Brexit and the general decline in global trade. There is a widespread belief that in 2020, global economic tensions are likely to weaken. The risk of a sudden shock in trade with the UK, where about 6% of Polish goods and commodities is exported, has been minimized at least for now. Recent initial agreements between the United States and China help reduce tensions in global trade. It can be assumed that - although Washington has announced the start of negotiations on a new trade deal with Brussels, due to its trade deficit, it does not intend to raise tariffs on EU car imports this year, which is beneficial for Poland as a participant of the global supply chain in this industry. It can thus be expected that Polish exports are likely to grow in 2020 on the wave of recovering world trade. The World Trade Organization (WTO) expects trade to increase by 2.7% this year, compared to 1.2% estimated for 2019. According to National Bank of Poland forecasts, Polish exports are expected to increase by 3.4%. A foreign trade surplus is likely to be recorded, mainly thanks to the large surplus in the exports of services, although the transport sector, which has largely contributed to the success, may suffer from the mobility package being introduced in the EU.
BRISK TRADE ACROSS THE BORDER JM
ast year exports to Germany grew slightly slower than the year before – by 4.2% year on year (3.1% calculated in euros,) according to Akcent, an international financial institution. In 2018 the growth rate was nearly twice as high and amounted to 9.1% (9.6% in EUR) y/y. In view of Germany’s deepening economic slowdown the results can be described as mildly optimistic. According to the Federal Statistical Office in Wiesbaden, Germany's GDP grew by just 0.6 percent in 2019, without taking into account seasonal factors, the worst result in six years. But set against the poor performance of overall German foreign trade, the scale of trade between Poland and Germany does make you optimistic. Germany's exports increased by 0.9% in 2019, and imports grew 1.9%. The country’s poor economic results stem, among others, from the trade war between the US and China. There are also internal problems associated with growing social spending. Changes in the automotive sector, which is evolving towards hybrid and electric drives, seem to be affecting the value of German trade as well as Polish-German trade relations. At the same time, the level of technological advancement of Japanese competition compared to German corporations seems to be the biggest threat to the export capabilities of German factories. Polish subcontractors who are focused on the production of parts and components for motor cars with oil and diesel engines may also suffer. However, much will depend on political decisions, including the level of subsidies for the purchase of electric cars and support for the development of renewable energy sources, without which investing in electric vehicles is unprofitable from the point of view of the energy balance. •
Germany remained Poland's most important trading partner in 2019. According to preliminary Statistics Poland data, the value of twoway trade amounted to around EUR 116 billion.
POLISH-GERMAN TRADE LEADING POLISH EXPORT PRODUCTS • • •
Vehicles, aircraft, ships and other means of transport Mechanical and electrical machinery and devices and their parts Base metals and articles manufactured with their use
GERMANY'S LEADING EXPORT PRODUCTS • • • •
Mechanical and electrical machinery and devices and their parts Vehicles, aircraft, ships and other means of transport Plastics and articles made with their use Statistics Poland data for 2018.
Source: KUKE, Statistics Poland
2-3/2020 polish market
POLAND – CHINA TRADE BALANCE
100 BILLION IN THE RED As you can see in the graphics below, the volume of Polish imports from China far outweighs that of exports to that country. What is the reason for this imbalance which spoils Poland's overall favourable trade statistics? How to reverse this trend? Should imports from China be curtailed through developing Poland’s own means of production? Can more goods be made in Poland which will appeal to the Chinese consumer, and which cannot easily be substituted by cheap products made in Asian countries? JM
olish officials and entrepreneurs who are looking for the Holy Grail of Polish exports keep trying to find the answers. At a time when almost any technology can be copied by talented engineers, scientists and biotechnologists, it is extremely difficult to offer Chinese consumers a product which can arouse their interest, while not being readily available in neighbouring countries. Other factors do not work in Polish entrepreneurs’ favour, either. China is culturally diverse, and features striking disparities in the purchasing power of various sectors of its population. Up to 100 million Chinese consumers can afford to buy high-quality products, but the vast majority can barely make ends meet, or at least has a long way to go before it will be able to join the middle class. In Poland, the image of China persists as a country of over one billion people with similar, low purchasing power. Even entrepreneurs fail to keep abreast of changes which occur in China. For over two decades, China has been at the forefront of the world’s fastest growing economies. It is undergoing numerous social, cultural and systemic metamorphoses. Add to this the complexity of Chinese legal regulations, which Polish businessmen often find baffling, for example the need to obtain export permints. Then there is the complicated geopolitical situation brought about by the trade war with the US, which has been going on for the past two years. All this makes it somewhat easier to understand why Polish exports to China are barely noticeable. It is thus interesting to examine the reasons why some Polish companies manage to successfully export their goods and commodities there. What is it • that they are doing right?
38 polish market
POLISH OFFICIALS AND ENTREPRENEURS ARE LOOKING FOR THE HOLY GRAIL OF POLISH EXPORTS ABLE TO CONQUER THE CHINESE MARKET.
POLAND'S TRADE WITH CHINA POLISH EXPORTS TO CHINA • • • •
Base metals and products manufactured with their use Mechanical and electrical machinery and devices and parts Plastics and derived products Food exports from Poland to China are characterised by very high growth. In the first five months of 2019 they were up 76% on the corresponding period of 2018.
POLISH IMPORTS FROM CHINA • • •
Mechanical and electrical machinery and devices as well as parts, in particular multimedia equipment Textiles and clothing Industrial goods
EXPORTS VOLUME COMPARED TO IMPORTS 8% TRADE DEFICIT PLN -102,527.0 million
Source: compiled based on Statistics Poland (2018), Eurostat and KUKE data
WHAT TO SELL TO CHINA
It may be difficult to enter the Chinese market, but it is not impossible, proof of which are those Polish companies, mainly representing the agro-food industry, which successfully market their products there. Can food turn out to be what Polish entrepreneurs are looking for as they look for products which could appeal to the Chinese palate?
n the first five months of 2019, Polish companies exported food products worth EUR 74.9 million to China, a 76% sales increase as compared to the corresponding period the year before. Poultry meat producers gained the most (the value of products they sold went up from EUR 409,000 to EUR 17.4 million,) followed by milk producers (up from EUR 9 million to EUR 19 million).
IS BRAND POLAND STRONG ENOUGH TO ACHIEVE HIGH SALES IN FOREIGN MARKETS?
Looking at those figures, you can draw the following conclusions: things used to be far worse before, so exports soared from what was a very low base. But does this mean that food can be the Holy Grail in trade with China? Are Polish producers ready to take up the challenge? Growing food exports to China have been largely caused by the African swine fever epidemic, which sent pork prices skyrocketing. Pork could easily be replaced with cheaper poultry. In 2019, poultry export permits to China were secured by CEDROB Ciechanów Ujazdówek plant, CEDROB Ciechanów Niepołomice plant and ROLDROB. The snag is that as many as 172 American plants have recently received similar permits, which means that Polish poultry exporters will find stiff competition in China.
IS BRAND POLAND RECOGNISABLE? Could beer be the answer? After all, its sales have been booming for over a decade. According to Statistics Poland and Eurostat, Polish beer exports to China have grown by half, reaching PLN 5 million by mid2019. However, most of the beer was sold in Chinese supermarkets under their own brands. And this is where the question arises: is the Poland brand strong enough to attract foreign consumers? Polish producers who are keen to succeed on the Chinese market must try to answer this question before their products hit supermarket shelves. For now, it seems that Chinese consumers only have a vague idea of Poland as such, let alone of its products.
WHAT ABOUT KNOW-HOW? A good Polish product can be marketed in Japan as coming from the homeland of the famous Polish composer Frederic Chopin, who is a
household name in that country. In China, there do not seem to be any such obvious associations. When the Polish dairy giant Mlekovita started selling its products in Chinese supermarkets a few years ago, there was no indication on the labels that the products came from Poland. Customers could find German descriptions H-Milch and Vollmilch on the milk cartons. The supermarkets’ decision probably meant that the brand Germany sells. When is it going to be Poland’s turn? Does this mean that Polish exporters can only look for opportunities arising from international trade wars and internal problems on the Chinese market? Do they need to agree to supermarket labels which disguise the origin of the products? It seems that without adequate institutional support, and without boosting tourism from China to Poland, which would make this country more recognisable among Chinese citizens, it may • be very difficult to reverse negative trends.
If you want to enter the Chinese market 1. Find out about the country’s culture, economic and legal conditions. 2. Try to find an experienced partner who will facilitate cooperation with local business partners. 3. Check if your product meets the Chinese importer's quality expectations. 4. Make sure that your product is promoted with the use of various tools at trade fairs and business meetings. 5. Secure the product launch, its promotion, payments and tax issues, by adopting a two-year perspective. 2-3/2020 polish market
WE CAN'T AFFORD TO WASTE ANY MORE ENERGY ANDRZEJ WÓJCIK, Vice President of the SEFAKO Boiler Factory, expert of the Heat 2.0 parliamentary group, talks to “Polish Market.”
Recycling was meant to be the way to reduce waste management costs, wasn’t it? Whatever we buy, it is finely packed in plastic film, cardboard or various kinds of styrofoam. As a society, we generate huge amounts of waste, and more of it is going to be generated. Of course there is a will to PM
recycle and reuse as much of this waste as possible. Glass cullet ends up in glass furnaces where it is recycled. Ferrous and non-ferrous scrap metals are subject to constant recycling. However, in the case of plastics and other waste of this kind, in my opinion you need to be more rational than today.
Environmentalists would like to "recover" plastic waste. We should not be blinded by recycling, or try to recycle everything, or pretend to. Take, for example, a cup of yogurt. To process it, it must be clean. We must thus put it inside a dishwasher, or worse still, wash it in running hot water, while using a detergent. PM
It's an expensive solution to wash a plastic cup. You can count how much hot water is used, and thus how much CO2 is emitted into the air. Then the cup must be stored separately so that it does not get dirty again. But how many times can such a cup be recycled? Once or twice. It should not come into contact with food the second time around. You can make a flowerpot or another object with lower quality requirements from the material. After processing, each time the polyethylene and polypropylene polymer chains which make up the plastic get more and more brittle. They get torn, and finally a moment comes when the material is no longer of any use. This can happen the first time, the second time or the third time. PM
THE WHOLE WORLD INCINERATES WASTE IN A SAFE, ENVIRONMENTFRIENDLY AND, EQUALLY IMPORTANTLY, ECONOMICAL WAY.
But we seem to want to recycle everything these days. Only chemical energy stored in some forms of waste is valuable. The waste management system should be supplemented with energy recycling. Waste which due to its physical and chemical properties is not recyclable, should undergo energy recycling. In this way we can PM
40 polish market
solve two problems at once. First of all, we can use rational recycling. Secondly, we can reduce the amount of waste. It seems to make sense in economic terms, and just not because you don’t need to wash the cup. Today, waste collection costs are rising drastically in some places. It seems to me that a common sense solution is to burn your rubbish, of course, in an environmentally safe way, to recover energy. It is environmentally friendly, because we are thus able to significantly reduce the consumption of other fuels, such as coal or other fossil fuels. At the same time, this solves the problem of landfilling and accidental fires on waste disposal sites, which have been occurring in Poland for several years. Rubbish dumps keep catching fire, mountains of waste are growing, while we keep talking about how to extract plastics and other fractions from these mountains. I believe that Poland cannot afford to waste any more energy which can be recovered from waste. PM
In Poland, we are afraid of burning rubbish while waste incineration installations and technologies developed in Poland are in use in other countries. In Finland, which is often set as an example of the green economy, 60% of waste is incinerated. It is also worth looking at the French approach. We can learn how to rationally manage waste from them. There are plenty of incinerators in France where energy is recovered from waste. The SEFAKO industrial boiler factory has supplied many components for such incinerators, which have been installed in France, Sweden, Denmark and Finland. Recently, we have also supplied a lot of incinerators to the United Kingdom, where huge installations of this kind are being built. The whole world incinerates waste in a safe, environment-friendly and, equally importantly, economical way. PM
Is waste a good fuel? In our experience, RDF (Refuse Derived Fuel) has a calorific value of 10-12 MJ/kg. Now, brown coal obtained in the Bełchatów mine has only 7 MJ/kg, and in Bogatynia, Turoszów or Turów about 9 MJ/kg. So waste is more calorific than some types of coal burned in Polish power plants. By comparison, black coal, which is mined in Upper Silesia, has about 19-22 MJ/kg. This means that waste is very efficient as a fuel. It is also very cheap. PM
Residents may have concerns about the incineration of waste. I find it hard to understand why Polish society is so afraid of burning waste. Obviously, these fears are skilfully fuelled by environments who, for ideological and economic reasons, pursue their own interests, while opposing waste incineration. And yet lots of rubbish is burnt in Poland in fireplaces and stoves. It is not just about aesthetics and foul odours. Burning waste in such conditions breeds cancer. Those who burn their rubbish in this way poison themselves, their families and neighbours. PM
What is the difference between waste incineration in heating installations and burning rubbish in basic household stoves? During combustion at the temperature of a household stove, dioxins, polycyclic aromatic hydrocarbons, benzoapyrene and other toxic substances are produced in very large quantities. The temperature inside a furnace chamber or boiler at an incineration plant is much higher. Thermal decomposition of compounds then occurs. And most importantly, there are appropriate filters and devices in incineration plants which remove harmful substances which are not released into the air. Waste incineration in PM
dedicated plants is safe for the environment. Incineration and heat-generating plants are equipped with systems for continuous monitoring of exhaust gases. They provide open access to monitoring data. I think it is a good idea to share the results with the public so that everyone can check if the waste incineration process in their city is going well. Are incineration plants huge installations like those SEFAKO has built in Malesice in the Czech capital of Prague, or can they be small local heat-generating plants in small towns? I have recently seen a picture showing an incineration plant in a very environmentfriendly and technically advanced country, which was fitted inside one of a row of houses lining a street. A similar small incinerator was built in Vienna. I have also visited Zurich where an incinerator is situated in between housing estates. It doesn't seem to bother anyone. Of course, you need to make sure that no unpleasant odours are released, but it is very easy to do. We now have solutions for both large cities and small municipalities tailored to their needs, economies and existing heating networks. We can reconcile various interests - reduce the price of waste collection and central heating for residents, • while acting in an eco-friendly way. PM
2-3/2020 polish market
E U RO P E A N B U S I N E S S C LU B AWA R D S
For the fifth time, awards of the European Business Club Poland were presented at a gala event at the Royal Castle in Warsaw on February 1. As every year, the Association honoured individuals and companies that have particularly contributed to the development of entrepreneurship, economy, science, culture and sports in Poland, as well as scoring successes on a European and global scale.
his year's winners of the VICTORIA EUROPAE 2019 awards included the European Congress of SMEs, Andrzej Kraśnicki, President of the Polish Olympic Committee, Sławomir Kowalski, former Polish consul to Norway, Krzysztof Bołtowicz, owner of the BOŁTOWICZ car company, Jan Łosakiewicz,
Piotr Wawrzyk, Secretary of State at the Ministry of Foreign Affairs
42 polish market
Director of the Warszawianka Song and Dance Ensemble of the University of Warsaw, the "Dom w Łodzi" Foundation and others. All the winners won prizes for their professional and public activities for the benefit of local communities and industry, as well as for demonstrating postures, which according to the organisers should be emulated and promoted. “The purpose of the award is to build the prestige of the business environment in Poland and promote business initiatives, entrepreneurs, companies, institutions, organisations and public activities,” said Janusz Cieślak, President of the European Business Club Poland Association. The jury was chaired by Prof. Elżbieta Mączyńska, President of the Polish Economic Society, Member of the National Economic Development Council. The honorary patronage over the event was assumed by Prime Minister Mateusz Morawiecki, who addressed a letter to the participants which was read out at the beginning of the ceremony. T he Eu rop e a n B u si ne s s C lub Poland recognises the importance of entrepreneurship for culture, science, sport, media and society. “This comprehensive
approach means a synergy of economic activities with other fields, as a result of which society is able to develop in a comprehensive way, in line with the principles of humanitarianism, its living standards can improve, and this is what the development of entrepreneurship is intended for. The Association adheres to its principles. Its values are culture, ethos, morality, ethics and social solidarity," emphasised Janusz Cieślak. The event gathered guests from all over Poland and foreign countries, including entrepreneurs, diplomats accredited to Poland, MPs and senators, as well as representatives of the world of culture, sport and mass media. Honorary guests included Piotr Wawrzyk, Secretary of State at the Ministry of Foreign Affairs who spoke on behalf of the Minister of Foreign Affairs, Andrzej Gut - Mostowy, Secretary of State at the Ministry of Economic Development who read a letter addressed to the participants by Jadwiga Emilewicz, Minister of Economic Development, and Zbigniew Gryglas, Undersecretary of State at the Ministry of State Assets, who spoke on behalf of the Minister of State Assets. •
ARE EVERYWHERE SŁAWOMIR KOWALSKI, Deputy Director of the Department for Cooperation with the Polish Diaspora and Poles Abroad, former Polish Consul in Norway, awarded by the European Business Club for courage, empathy and commitment to protecting Polish families abroad and for his services in representing the Polish state, talks to Jerzy Mosoń. Please accept my congratulations on your winning the European Business Club award. This may not be the first distinction you have received, but its character differs from the previous ones. Would you agree with that? Actually, I’m surprised that business circles have decided to award this distinction to me, but I’m also very grateful. It is an award not so much for me, but it’s in recognition for the efforts of Polish consuls in resolving the problems they face in serving Poland and Polish citizens. PM
What were your biggest challenges during your work as a consul? You are now working in a different capacity… At the moment I am working with consuls as a deputy director of the Department of Cooperation with the Polish Diaspora and Poles Abroad. We work with Polish communities abroad as well as with national institutions, many of which deal with the issue of policies regarding Polish communities in foreign countries. Our activities are based on the government programme of cooperation with the Polish diaspora and Poles abroad. One of the challenges we face is the need to support expatriate Poles in maintaining their national identity in exile. The government programme PM
I have mentioned, which we implement to this purpose, focuses on education, including Polish language teaching. The ability to use your native tongue is important not only for new generations of Poles who left the country when they were young, but also for those born abroad. Language is the basic tool for maintaining contact with Poland, learning about Polish culture, as well as for building bridges in relations between Poland and the country they live in. We deal with various projects whose goal is to build Polish identity through broader access to culture. We make it easier for Poles living abroad to enjoy the benefits of the Polish cultural heritage. One of our goals is also to build the potential of Polish communities through facilitating their integration process, to help them build a positive image of Polish people in the respective countries. It is important to us that Poles living abroad should not only build their Polishness, but also add value to the host societies. To this end, we encourage our countrymen to take an active part in the public life of the countries they live in. Is it easy to be a Pole living in a foreign country right now? I think it's easy to be Polish everywhere, because being Polish is a joy. However, there are different policies in different countries. PM
My consular experience shows that you need to focus on the positive and build relationships wherever possible. I am also convinced that you need to build Polishness starting with your own identity. History shows us that it worked under the German occupation, when our strong potential allowed us to survive. These are the lessons of history. But are expatriate Poles business patriots who support the Polish economy by making the right choices as consumers? "History teaches you how to live." It is one of those Latin proverbs which are worth coming back to because our history teaches us who we are. When it comes to consumer habits, in Norway, where I worked recently, not just Poles who lived there showed interest in buying Polish products. Norwegian consumers did, too. The reason is simple: Polish products are good, especially food. Other nations show us that we can also be proud of our culture and tradition. I am now reading Adam Zamoyski’s book "Poland. A History.” Zamoyski writes about Polish history in an attractive way. I believe that you can also promote Poland in this way, through culture and art. But similar gems can be found in every field, as exemplified by your “Polish Market” Economic and Honorary Pearls. • PM
2-3/2020 polish market
WELCONOMY CONGRESS IN TORUŃ THE WORLD IS WAITING FOR CHANGE JACEK JANISZEWSKI, founder of the Welconomy Forum in Toruń and Chairman of the Programme Board of the Integration and Cooperation Association, talks to Jerzy Mosoń.
What should dominate this year's Welconomy Forum - broadly conceived climate change, including energy challenges, security or international relations? It is difficult to say which of the topics will dominate this year's edition of the Welconomy Forum in Toruń. All these topics are extremely important and will be equally extensively discussed during the conference. 30-40 thematic panel discussions will be held during the Welconomy Forum. Everyone will be able to find something for themselves, regardless of their interests. The list of panel discussions is constantly being updated on our website www. welconomy.pl. I would like to encourage all those interested in participating in the 27th edition of the Welconomy Forum to find out more about the conference programme. PM
Economy 4.0 is currently a big challenge for the whole world. Meanwhile, one can get the impression that Polish business is half way through toward reaching this goal. Which Polish industries may be the leaders of this new industrial revolution? In what way are these changes likely to affect our civilisation - its cultural aspect? I think that the average citizen, and even a fairly well-educated manager in Poland and other European countries, is unaware of the revolution awaiting the world in this respect. Many occupations which people are being trained for as we speak, are going to disappear. That's why you need to closely monitor the situation to be able to predict what is going to happen in 5, 10 and 20 years from now. I consider this element of economic and public life to be a major challenge also for the Integration and Cooperation Association, so PM
44 polish market
this topic will be discussed in detail during the Welconomy Forum. Polish local government in its present shape is 30 years old. One of the panel discussions is devoted to it. How do you assess this period from the point of view of the economic development of regions? I have a personal attitude to this topic because I used to serve as a councillor during the first term of Polish local government in 1990. It is hard to believe that it was so long ago. At the time we all worked incredibly hard on the new shape of the state which was emerging from a profound economic and moral crisis. Since so many years have passed, I have asked members of the (first noncommunist-ed.) cabinet of Prime Minister Tadeusz Mazowiecki to come to Toruń to explain what their thinking was at the time. I consider this panel discussions to be extremely important especially for schoolchildren and students. PM
An important topic of this year's Welconomy Forum is "Economics through the Eyes of St. John Paul II." Does this mean that participants will also discuss the social teachings of the Roman Catholic Church in the context of their impact on business? Welconomy will not deal with the Church's social teachings, but we want to show the church as an economic organisation in which the principle of subsidiarity is a priority, for example through worldwide activities of such organisations as Caritas. The theme of the Inaugural Session of the Welconomy Forum in Toruń provides an inspiration to discuss these topics to pay tribute to St. John Paul II • on the centenary of his birth. PM
THE AVERAGE CITIZEN, AND EVEN A FAIRLY WELL-EDUCATED MANAGER IN POLAND AND OTHER EUROPEAN COUNTRIES, IS UNAWARE OF THE GREAT REVOLUTION AWAITING THE WORLD.
AN EMERGING LOGISTICS MARKET
The construction of the Panattoni Park Toruń II with an area of over 57.5 thousand sq.m. The Toruń distribution centre will be put into operation in the first quarter of 2020 and will become a crucial logistics hub for the Kujawsko-Pomorskie region.
TORUŃ IS A CITY WITH A HUGE BUSINESS POTENTIAL, WHICH ATTRACTS MORE AND MORE POLISH AND INTERNATIONAL INVESTORS. WE TRY TO CREATE THE BEST CONDITIONS FOR THEM. WE CONSTANTLY INVEST IN THE PREPARATION AND DEVELOPMENT OF REAL ESTATE FOR SALE. WE OFFER FUTURE BUYERS PERFECTLY PREPARED LOTS ENABLING QUICK INVESTMENT IMPLEMENTATION. THERE ARE MANY BUSINESS-RELATED INSTITUTIONS IN THE CITY WHICH SUPPORT THE DEVELOPMENT OF ENTREPRENEURSHIP.
MICHAŁ ZALESKI, Mayor of Toruń
oruń is a city which supports the development of entrepreneurship. A dedicated team of the Business Support Centre works with investors. Good transport links, a highly qualified work force, and university facilities – all this attracts warehouse developers to Toruń. Panattoni Europe, the largest logistics developer in Poland, has focused on the development of the Toruń warehouse market. The company has built complexes in the BTS system (built-to-suit, ordered by a specific tenant). These include BTS Nestle (over 29,000 sq. m.) and BTS Neuca (with an area of 10,000 sq. m.). Panattoni Park Toruń II is under construction. It will eventually be spread out over an area of
57,000 sq. m. Among the tenants will be InPost. The advantage of the new park is the flexible way its space will be managed, which will make it easy to adapt to the needs of individual tenants representing various industries. Among the strengths of Toruń's location, Panattoni lists proximity to key road, rail and waterway transport corridors. The A1 motorway is the transport backbone of Toruń and the entire Kujawsko-Pomorskie region. This allows companies interested in conducting operations in Toruń to have instant access to container terminals in Gdańsk and Gdynia, and - via the A2 motorway, which cuts across central Poland - to reach both the country’s eastern and western borders. •
New investment project by the Neuca Group: a modern logistics centre with a warehouse and an office building for over 1,500 workers was built in the Jar estate over an area purchased from the city.
2-3/2020 polish market
NEW O P P O RT U N I T I E S , O L D T H R E AT S
Inaugural plenary session of the 13th Europe-Ukraine Forum
Over 800 guests from Poland, Ukraine, EU countries and the US, among them representatives of governments, the world of politics, diplomacy, business, local government, EU institutions, international organisations, analytical centres, and culture took part in the 13th Europe-Ukraine Forum which was held in Rzeszów on February 4-5. The programme included over 50 panel discussions devoted to economic, political and social issues.
his year's forum was organised u nder the slogan: "New Opportunities, Old Threats." In the wake of Ukraine’s presidential elections, questions remain as to what policies the new authorities are going to pursue, and whether Ukraine will use the opportunities offered by cooperation with European Union and NATO member states. The international community has high hopes for the development of modern local government and civil society in Ukraine, it was noted. The issues of Ukrainian security in the structure of European and global relations were also discussed.
IN SEARCH OF ITS PLACE ON THE CONTINENT
The inaugural plenary session entitled "Central and Eastern Europe - In Search of Its Place on the Continent" was based on the assumptions that in recent years Europe has been looking
46 polish market
for answers to a number of fundamental questions regarding common values, the pace of integration and its character, and the future of European institutions. The debate, moderated by Jan Maria Rokita, was attended by Hans-Jürgen Heimsoeth, Special Representative for Eastern Partnership from the German Federal Ministry of Foreign Affairs; Małgorzata Gosiewska, Deputy Speaker of the Polish Parliament; Mikheil Saakashvili, former Georgian President, leader of the New Forces Movement; Oksana Yurynec, member of the Ukrainian Parliament and Jan Krzysztof Bielecki, Chairman of the EY Council of Partners. Asked to define the place of Ukraine on the continent, Oksana Yurynets drew attention to the fact that many decisions which affect Ukraine are made on which Ukraine itself has no influence, and that this state of affairs should be changed. Mikheil Saakashvili outlined a vision of the regional order which Vladimir Putin
Marek Zagórski, Polish Minister of Digital Affairs
EVENTS the criteria, and today it is told that the EU does not want it. The countries of our region should support it jointly in solidarity.”
MODERN STATE, MODERN ECONOMY
Martin Fedor, MP of the Slovak National Council, receives the Special Prize of the 2nd Slovak Forum
subscribes to. “Ukraine must develop much faster, because it is becoming a tasty morsel for Russia, while Putin does not take Europe seriously. Poland, in turn, is a key place to stop this march, it is a link between the East and West,” he said. Outlining Germany’s point of view, Hans-Jürgen Heimsoeth lamented the fact that the Eastern Partnership was at a critical juncture, and although it was not a key alliance for Germany, it was an important element of political stability in the region, he said. Małgorzata Gosiewska spoke about the Polish path to freedom and the shaking off of Russian domination. She pointed to Ukraine’s fight for freedom, which was symbolised by the Maidan demonstrations in Kyiv, and which is still underway in the Donbass. “The past should not become the focus of politics,” Jan Krzysztof Bielecki argued.
THIRTY YEARS OF FREEDOM
The second day of the 13th Europe-Ukraine Forum began with a plenary session entitled "Thirty Years of Freedom of Central and Eastern Europe." Its participants, who represented various points of view on history and politics, looked back on the past thirty years. The session was attended by MEP Julie Ward; Anatoly Kinach, President of the Union of Industrialists and Entrepreneurs of Ukraine, former Prime Minister and Minister of Economic Development, Trade and Agriculture; Ryszard Terlecki, Deputy Speaker of the Polish Parliament; Dietmar Stüdemann, former ambassador of the Federal Republic of Germany to Ukraine and adviser to the Ukrainian President, member of the supervisory board of Deutsche Bank; Viktor Yerofeyev, Russian writer and columnist; and Gianluigi Donelli, Editor-in-Chief of
Radio 24 Il Sole 24 Ore, who moderated the debate. Julie Ward spoke about efforts to mobilise Ukrainian society, to change its mentality and the traditional perception of social roles of a decade ago. “During my trips to Ukraine, I met many young active and passionate people who felt European, and at the same time were proud of being part of their tradition,” she said. Viktor Yerofeyev focused on Russian-Ukrainian relations. “I would like Ukraine to get closer to Europe. My books appear in different countries, I often travel and I think that if relations between Ukraine and Russia were to improve, I can see a huge role for culture,” he observed. Anatoly Kinach said that from a historical point of view, Ukraine is a young country, but the path it has taken is, on the one hand, a source of enormous opportunities, and on the other, it still involves numerous risks. “We are facing a choice. Ukraine's path to Europe is irreversible,” he said. He presented his nation’s history, highlighting important points on the map of Ukrainian statehood. “Civil society is developing rapidly in Ukraine. It is now aware it can take part in a dialogue with foreign partners. We should have an international strategy based on European standards, taking into account climate protection, freedom of speech and the need to build a business climate,” the former prime minister said. Dietmar Stüdemann argued that Europe as a community is a good concept. “Ukraine keeps knocking and even banging on Europe’s door," he said. Ryszard Terlecki noted that eleven countries in the region are European Union members, and nine more are seeking to join it. This shows a certain trend, he said. “But let's remember about North Macedonia. That country has met all
Traditionally, the dominant feature of the Europe-Ukraine Forum was a search for a space for cooperation between business and state administration during the "Investment and Development" and "Economy" series of panel discussions. One of the discussions was devoted to the building of e-administration. It was attended by Minister of Digital Affairs Marek Zagórski. He pointed to the rapidly growing popularity of digital communication tools for contacts between citizens and the state in Poland. Within a period of four years, the number of what are known as trusted profiles has increased from 400,000 to 5,000,000. During a discussions entitled "International Economic Cooperation: From Trade to Investment," which saw the participation of Zbigniew Gryglas, Undersecretary of State at the Ministry of State Assets, the focus was on challenges awaiting entrepreneurs on the Ukrainian market. The participants wondered whether the normalisation of economic life, improvement of the investment climate and implementation of European standards will open new opportunities for foreign investors.
AWARDS AND ACCOMPANYING EVENTS
Traditionally, awards were presented to those who have contributed to building PolishUkrainian relations. Vera Meniok, the founder of the Bruno Schulz International Festival in Drogobych and Stanisław Stępień, director of the South-Eastern Institute in Przemyśl, received Carpathian Europe of Common Values Award statuettes. A Slovak Forum was held for the second time at the G2A Arena in Rzeszów, during which opportunities and prospects for cooperation were discussed, taking into account advantages based on tourism potential and the natural and cultural heritage. Forum participants also discussed issues related to cross-border exchanges, energy security, challenges in education and transport. A Special Prize was presented to Martin Fedor, deputy of the Slovak National Council. The 4th Eastern Fair was a side-line event of the Forum. Exhibitors represented a number of industries, including IT and new technologies, finance and insurance, construction, automotive, aviation and tourist industries. The organiser, the Institute of Eastern Studies, intends the fair to offer entrepreneurs from both sides of the border opportunities to exchange experiences and establish business cooperation. The main prize was awarded to the Ternopil Oblast. • 2-3/2020 polish market
ONE BELT, ONE ROAD POLAND'S POSTAL SERVICE POCZTA POLSKA IS A GATEWAY TO EUROPE FOR SHIPMENTS FROM KAZAKHSTAN.
Saken Sarsenov, Chairman of Kazakhstan’s Kazpost and Przemysław Sypniewski, President of Poczta Polska
he history of the Silk Road dates back to the third century B.C. As we all know, it was a trade route which linked China with the Middle East and Europe until the 17th century. It not only facilitated the exchange of goods, but also of ideas and scientific achievements between societies. In 2013, on a visit to Kazakhstan, the Chinese President Xi Jinping announced the concept of the New Silk Road. Also known as the Belt and Road Initiative, it involves the expansion of the infrastructure network connecting China, the countries of Central Asia, the Middle East, Africa and Europe. It provides opportunities for strengthening economic cooperation between countries which lie along the route. About 70 countries and regions have already confirmed their participation in this long-term project. Between them, they account for a third of global GDP and 60% of the global population.
48 polish market
Kazakhstan is an important element of the Belt and Road project. The significance of economic relations between Asian countries is highlighted by China’s multi-billion USD investment projects in Kazakh infrastructure. On its part, Kazakhstan is looking for a shipments hub in Europe. It is thus keen to build bilateral relations with Poland, whose attractive geo-economic location makes it an ideal gateway to Europe. Poland's national postal company Poczta Polska is opening up to Asian markets. During an official visit to Astana, representatives of the company's board have signed a memorandum with the Kazakh postal service Kazpost. It is the second memorandum signed between Poczta Polska and Kazpost. The first one was initialled in the autumn of 2017. “Poland lies on one of the world’s most important logistics routes - an international trade route linking Asia and Europe. It starts in the Chinese logistics hub of Chongaing and ends in the German logistics centre in Duisburg. Poczta Polska makes every effort to take advantage of this country’s geopolitical location,” says Przemysław Sypniewski, President of Poczta Polska. Because of the widespread use of online shopping, goods need to be delivered quickly. The new Silk Road is going to make it possible for packages sent from any point to reach another continent within a fortnight or less. The main goal of the Belt and Road initiative is to search for the most effective ways of transporting goods between continents. The number of shipments received in Poland from foreign destinations, mainly from Asia, grows steadily. In the first half of this year, e-commerce shipments from China Post accounted for over 30% of all incoming foreign shipments received by Poczta Polska, up from 24% last year. Opening up to Asian markets is an opportunity to increase revenues from this segment of postal services. •
For the 26th time, a grand Business Leaders gala organised by the Business Centre Club (BCC) was held at the Teatr Wielki - Polish National Opera in Warsaw on January 25. The results of the Polish Business Leader competition were announced. The presidents of the best Polish companies received Polish Business Leader Golden Statuettes. Winners of past editions who maintained their position on the market, received Diamond awards to add to their statuettes. BCC Special Awards were also presented to Professor Adam Strzembosz, first president of the Supreme Court and president of the State Tribunal (1990– 1998,) and Professor Adam Daniel Rotfeld - diplomat and politician, specialist in international relations.
uring his inaugural address, BCC President Marek Goliszewski said: "The new era is redefining our everyday lives, the life of the state and of the economy. Liberal democracy and the free market may well end up on the scrap heap along with the cassette tape and communism. But we should bear it in mind that it was thanks to capitalism that Poland and the rest of the world have managed to raise living standards, reduce hunger and check diseases. The principles of liberal democracy have made it the most effective political and economic project also for Poles. (…) At the start of a new era, we find ourselves in a clinch. On the one hand, we must maintain a high pace of technological progress and economic growth, while on the other, we need to avert an ecological disaster. Australia is a good case in point. On the one hand, the (Polished.) government must reduce spending, on the other, it is committed to social transfers. Employers must increase profits, but they must pay employees more. Employees are keen to keep their jobs, but they should be able to retrain and sometimes look for a job elsewhere. (...) Einstein used to say that the world gives way to those who know where they are going. Today's winners know where they are going. " Since 1992, the BCC has granted Special Awards to outstanding personalities from outside the business community for their contribution to the development of entrepreneurship and market economy in Poland. Previous winners of this award include Margaret Thatcher, José Manuel Barroso, former Polish Foreign Minister Władysław Bartoszewski, former President Bronisław Komorowski, and British historian Norman Davis who specialises in Polish history. This year, the Golden Statuette went to Professor Adam Strzembosz in recognition of his contribution to political transformations in the judiciary, adherence to the principle of the separation of legislative, executive and judicial powers, the introduction of international standards, putting values and ethical
principles first, openness to dialogue, and courage and determination in actions for the benefit of a democratic state of law, rule of law and independent courts. Professor Adam Daniel Rotfeld was honoured for his services in the field of politics, diplomacy and science, and for making Poland internationally famous. This year's Polish Business Leader Golden Statuettes were awarded to the Alstal Construction Group, Arra Group, Austrotherm, Chrzanowscy Development, Hegelmann Transporte, Inter Europol, Interplastic Roger Żółtowski, Radex Corporation, Królmet, Marianski Tax and Law Firm, Pixel, Łucz-Bud, Mat-Bud, Teva Pharmaceuticals Poland, TSC and the Port of Gdynia Authority. Social Solidarity Medals were presented for involvement in public causes, assistance to those in need, promotion of the idea of corporate social responsibility and for building social solidarity. This year’s winners were Andrzej Graboś, President of POLMOTORS, Jan Lubomirski-Lanckoroński, President of the Princes Lubomirski Foundation, and Leszek Jurasz, President of Mangata Holding. The first lady of Polish jazz Urszula Dudziak with her band, and a choir and symphony orchestra under Janusz Powolny, which performed film music, starred in a concert during the gala. BCC was set up in 1991 to support entrepreneurial Poles on a number of levels. It is an elite club of entrepreneurs and the largest organisation of private employers in Poland. It has 2,500 members, both individuals and companies. BCC members have over 400,000 employees. Their companies’ joint turnover reaches PLN 20 billion. BCC has branches in nearly 250 towns and cities and 23 regional lodges. It brings together representatives of all industries, including international corporations, financial and insurance companies, the largest Polish manufacturers, universities, publishing companies and well-known • law firms. 2-3/2020 polish market
C R E AT I V E N AT I O N
PROFESSOR WIESŁAW LUCJAN NOWIŃSKI, Polish scientist, innovator and entrepreneur, professor of radiology at the University of Washington and the Cardinal Stefan Wyszyński University in Warsaw, talks to Danuta Bierzańska.
Yours are the most accurate computer brain maps in the world. You are a winner of many prestigious international awards, including the Outstanding Pole, radiological Oscar, and European Inventor of the Year 2014 awarded by the European Patent Office. As an electronics engineer, how did you reach the human brain? It was through difficult, persistent and diligent work. I have been guided by dreams, faith, planning and consistent execution. The change of the field was also accompanied by that of my mindset. I used to be an ordinary scientist who worked theoretically, but I became a scientist who not only creates new things, but also implements them, develops technology, makes products, launches startups and commercialises inventions on the global market. When I worked in Poland, I had no idea what a patent was. Now I am an inventor of many patented solutions. A journalist has counted that I have registered more patents PM
50 polish market
than all Polish universities combined. The key to this success was interdisciplinary research, building bridges between fields, and continuous self-education. What inspired you to deal with biology, the human brain? The need to survive. It so happened that at some point I left Poland for Singapore to work for an institute which cooperated in various fields with the Johns Hopkins Hospital, the best US hospital. I picked studies of the brain because I thought it was fascinating and the most challenging. I was surrounded by scientists who were educated at the best universities in the US and the UK, and I was the only one from this part of Europe. I looked for niches where I could show my value. It was also important to change my way of thinking to make problems my specialty, as I once heard in a movie. And so I started working on the brain. This quickly paid off by bringing further awards, which PM
confirmed my direction and motivated me to carry on. What are the most important uses of the atlases of the brain? The atlases have educational, research and clinical applications. Educational applications are meant for thousands of individual users and medical schools which use my atlases. In clinical applications, the atlases are particularly useful in neurosurgery. We have licensed them to 13 largest surgical companies, and hundreds of thousands of patients have been treated with the use of atlases I created. For instance, when the brain is operated on, very small structures should be localized to implant there electrodes. By stimulating the brain they help relieve the symptoms of numerous diseases, such as Parkinson's. The atlases help surgeons navigate to properly implant these electrodes. Initially, I built anatomical atlases, and then expanded to PM
MEDICINE various types of functional and vascular atlases. I have also created atlases of brain disorders. In total, I have created 35 various atlases of the healthy and diseased brain, we have licensed our atlases to 67 companies and institutions. They are distributed in about 100 countries around the world. A few years ago you said in one of the interviews that in the future you want your atlas to be personalised so that each potential patient can have one of their own. You said you were at the outset of this road, at the foot of the mountain whose peak you could already see, but it was still distant. Have you drawn any nearer to that peak? For now, this project is still at a conceptual stage, as I have been unable to find funding in my own country for its implementation. PM
At the Pearls of the Polish Economy Gala at the Royal Castle, you described Poland as a creative nation, and you called for the release of intellectual property which is still locked in our brains. How to make Poland more innovative and creative? I have a recipe. Intellectual property, simply speaking, is something that does not yet exist in nature, but it is something we can devise and exploit. I know that we are a creative and innovative nation - not only as a patriot, but as a pragmatist. I headed an international laboratory for many years, I worked with people from different parts of the world, I am affiliated with four universities from the top ten of the Shanghai domain ranking, and I have gathered much experience. Other Poles who have been working abroad for longer periods of time also have similar experience. How to make Poland an innovative country? There are probably several ways. Objectively, I think that it is worth to statistically analyse the careers of a large group of Poles who were considered average in Poland but who have achieved international successes abroad. We can then understand why they could not demonstrate their talents at home. And after this diagnosis, we should apply the right kind of therapy. In my subjective way, for several years I have been promoting my project of building the innovative Poland on its entire territory. I returned home to help build a Polish Silicon Valley. My project assumes that the innovative Poland shall be built on two solid pillars. One of PM
them is experience, the outstanding Poles of the diaspora. The other pillar is the talented young people who win international competitions in various fields. We shall attract to Poland a group of outstanding Poles, internationally recognised scientists-innovators-entrepreneurs who want to leave their legacy here in the form of an institute or company. They should be invited to run centres of excellence in selected technology niches at the world class level. These centres would be located in what I call national technopolis or TechnoPolish. Then we should build a central valley around the TechnoPolish and further form a network of regional valleys and even local valleys. This should be a coordinated network encompassing the existing over 100 modern R&D centres. A third of them only manages to earn money by renting office space, and not from scientific research, because they are short-staffed and there is lack of coordination. The name Polish Silicon Valley for the central valley is symbolic for me. Because the point is not to produce integrated circuits. I imagine it as a big airport, from which Polish innovative solutions and technological products would fly off into the world, and through which young Polish talents would return home to set up their own tech companies in a conducive environment similar to that abroad to work for the national economy. I have worked on this concept for many years, I have presented it in many places and to several communities, and it has met with great interest among key Polish thought leaders. I like your wordplay: let's turn a technopolis into a TechnoPolis(h) - do you think that Polish society is ready for such a revolution? Society is unfortunately unaware of such a potential revolution. First it must be made aware of the consequences of doing it or not doing it. The 4th industrial revolution is coming, and we do not have national technopolis ready for it, and yet we care about other areas. We have built the National Stadium, the National Museum or the National Opera. We have missed the previous three industrial revolutions, and without change we will miss another one. Let me stress that this is all about mental change. It must be “new blood”, people who think differently, who have a different culture of work and creativity, and who will pass this culture on, mainly to the younger generation. PM
I believe that it is easier to build something new than to change something which already exists. Are politicians aware of this necessity, or at least a possibility? The project has been presented to many politicians, also at the presidential palace. And I'm waiting. I am an optimist, mainly because I can see no other way. I believe that this project, the accumulation of national intellectual property, as well as the creation of a knowledge-based economy, are long-term, non-partisan, and cross-departmental projects which require consistent implementation. If we don't do it this way, we won't build anything. I try to illustrate it vividly in this way: we choose the road of development for Poland and it is an exciting road. When the X political party is in power, let it paint this road blue, when the Y party comes in, let it paint it green, and let the Z party paint it red. But all the time we should go in the same direction. Otherwise, if the X party turns left and the Y party, just opposite, turns right, resources get wasted and it doesn’t bring us any closer to our goal. Politicians who are preoccupied with terms of office and the opposition, and do not think in terms of a successful and stable future for Poland, probably will not appreciate the value of this project. PM
Maybe such a vision will appeal to young people? Yes, I work with brilliant young people, but I'm afraid that before it’s up to them to make key decisions, it may be too late. Poland is bleeding talent. Many of the best have left to work for competing economies. If we do not stop this brain drain, in a few years’ time there will be no one to rebuild Poland. We have a huge potential here and we should not let it go. I believe in the implementation of such a project which would be coordinated by the Polish Prime Minister and President, in which the generated intellectual property would belong to the whole nation in the same way Wawel Castle in Krakow and the Royal Castle in Warsaw do. I have received many proposals from the private business sector to implement this project. I am grateful for the trust, but I am not looking for a project for myself or any private investors, but for Poland and for young people. • PM
I BELIEVE THAT THIS PROJECT, THE ACCUMULATION OF NATIONAL INTELLECTUAL PROPERTY, AS WELL AS THE CREATION OF A KNOWLEDGE-BASED ECONOMY, ARE LONG-TERM, NON-PARTISAN, AND CROSS-DEPARTMENTAL PROJECTS WHICH REQUIRE CONSISTENT IMPLEMENTATION.
LUNG CANCER IS NOT A DEATH SENTENCE PROF. DARIUSZ M. KOWALSKI, head of the Conservative Therapy Department, Lung and Chest Cancer Clinic, Maria Skłodowska-Curie National Oncology Institute - National Research Institute, President of the Polish Lung Cancer Group, talks to Andrzej K. Kazimierski. Lung cancer is one of the most difficult cancers to cure, yet in Poland it is most often diagnosed very late, and not much information is available tp the general public about ways to prevent it. Admittedly, it is still one of the most difficult cancers to treat when it is diagnosed at a late stage. Detected at an early stage, there is a very good chance of recovery. Unfortunately, few such patients turn up at the clinic. Very often the disease is diagnosed in later stages, when radical surgical treatment is no longer an option. PM
52 polish market
Why is that? It is due to many factors. First of all, the number of patients diagnosed with lung cancer is growing, not only in Poland but all over the world - about 1.5 million new cases, of which around 23,000 cases in Poland. It is the most common cause of cancer-related deaths in men and women. There are several reasons why lung cancer is diagnose so late. The most important one is that it is difficult to detect in early stages because it is usually asymptomatic. This cancer is one of tobaccodependent cancers, 90% of those afflicted are current or former smokers. Since the main symptom is an irritating cough, smokers usually don't worry because they treat it as a normal symptom of their addiction. However, a persistent cough and a hoarse voice should not be ignored. Another problem is that diagnosis is delayed by other doctors. Having been examined with a stethoscope, a long-term smoker with a cough is often diagnosed with pneumonia or bronchitis, and despite recurrent symptoms, is unfortunately repeatedly treated with antibiotics. But if the symptoms do not subside, a conventional chest X-ray should be recommended. In Poland, the time between the onset of first symptoms and the moment the patient is referred to a specialist is definitely too long. PM
What about prevention? Almost 60% of those surveyed in Poland admit that they know very little about the dangers of lung cancer. Yes, this comes as a surprise, because this disease is spoken about all the time. Maybe people think that it's better not to know about the dangers it entails. Very many people suffer from fear of cancer. Not knowing gives one a false sense of security. But nothing could be worse than that. Early diagnosis gives a patient a chance to undergo various forms of treatment, and most importantly, to be cured, or at least have his life prolonged. There is a need for a national lung cancer screening programme. The results of studies show that a low-dose CAT scan reduces the risk of death among smokers by at least 20%, compared to a conventional X-ray. PM
Could you explain why lung cancer is a tobaccorelated disease? This addiction is the main reason of lung cancer and the resulting mortality. The risk of developing lung cancer increases in proportion to how long one has smoked and the number of cigarettes smoked. Of course there are other factors, but they can be described as marginal. These include occupational stress, adverse working conditions, e.g. in an asbestos environment, poor diet, and genetic loads. It is shocking that the number of men diagnosed with lung cancer has been declining, while more women are diagnosed with it. There are now more women smokers than men smokers. PM
According to statistics, only 13.4% of lung cancer patients can expect to survive for another five years or even less. Why is that? I have already mentioned certain reasons, i.e. the lack of prevention and late detection. But there are other PM
THANKS TO ADVANCES IN MOLECULAR DIAGNOSTICS, IT IS POSSIBLE TO IDENTIFY SPECIFIC MOLECULAR FEATURES OF THE TUMOUR AND APPLY PERSONALISED TARGETED TREATMENT. reasons related to the type of disease and treatment methods. It is not always possible to surgically remove a tumour. Existing radiotherapy and chemotherapy methods are not always effective. But this is changing, primarily thanks to molecular biology methods which offer better survival rates, offering a chance of prolonging a patient’s life by a number of years. Thanks to advances in molecular diagnostics, it is possible to identify specific molecular features of the tumour and apply personalised targeted treatment. These innovative methods make it possible to arrest or slow down the progression of the disease in patients with metastatic cancer for two, three, five years or even longer. Moreover, for the most part these drugs are not administered intravenously but in the form of tablets, which improves the patient’s quality of life. Do molecular studies and immunotherapy mark a breakthrough? Certainly, we now focus on molecularly targeted therapy. We treat patients with diagnosed molecular disorders with targeted drugs. This makes it possible to destroy selected cancer cells. Immunotherapy is another method which offers fresh opportunities. Here, the therapeutic effects in the advanced stage of the disease are also spectacular. The immune system "blinded" by substances secreted by the tumour "regains vision" thanks to new drugs and is able to detect cancer cells once again, sending signals to the body. In this way, our own activated immune system destroys cancer cells on its own. There are currently three drugs available on the Polish market, among them pembrolizumab, which in certain cases can be used already in first-line treatment (i.e. instead of chemotherapy,) and nivolumab and atezolizumab which are used in second-line treatment. Primary prevention (measures to reduce smoking) and secondary prevention (screening,) access to modern diagnostics (including molecular diagnostics) and to innovative modern treatment methods (new molecular-targeted drugs and new programmes involving immunocompetent drugs,) are all basic pre-conditions for lung cancer to become a curable disease in the future, or at least a chronic disease. • PM
2-3/2020 polish market
FOCUS ON FOREIGN EXPANSION PROF. PIOTR H. SKARŻYŃSKI, MD, PhD, MSc, Member of the Board of the Centre of Hearing and Speech MEDINCUS, Director of the Institute of Sensory Organs in Kajetany talks to "Polish Market.” Almost from the very beginning, you have focused on foreign expansion. You are now focusing on patients in Central Asia. Why did you pick that region? Expanding our activities in that region is a natural consequence of our company's development plans which we have implemented for years. Initially, we focused on the Polish market, we wanted to provide Polish patients with access to otolaryngological services as close as possible to their place of residence. We gradually opened branches in various regions of the country and this month we are opening our new branch in Toruń. In previous years, we started to observe an increasing interest in our highly specialized services on the part of patients from across our eastern border. More and more of them started coming to our centre in Kajetany to undergo otosurgical operations or to have cochlear implants. They received world-class treatment (often exceeding even what French or Swiss clinics offer) at much lower costs. However, otorhinolaryngological therapy is not just about the procedures themselves, but also the preceding diagnostics and – very importantlyconsistent physiotherapy requiring regular visits to the facility, which was sometimes burdensome for foreign patients. We wanted to meet their needs by providing them with support closer to home. That is why we decided to open branches in Ukraine and Belarus. It was a big logistical challenge, but we succeeded, proof of which is the huge interest of local patients. PM
You didn't stop there - more clinics have been established in Central Asia.
54 polish market
WE TRY TO VENTURE INTO MARKETS WHERE WE CAN SEE NICHES FOR OUR SERVICES AND WHERE WE ARE AWARE OF THE POTENTIAL OF LOCAL SPECIALISTS. Central Asia - Kyrgyzstan and Kazakhstan - are demanding, but also very attractive markets for our services. These are large and dynamically developing countries, but their health care systems leave much to be desired. Due to geopolitical circumstances and the centralised system in the past, local patients still have difficulty in accessing highly specialised medical services. They must travel to Moscow, or – more frequently - to the Gulf or Korea. We gained our first experience in that region by organising hearing screening programmes for children. We found out about the situation of local patients, their problems and needs. We noticed a niche which we were able to fill based on our experience. That is why in 2016 we decided to open the first branch in Bishkek in Kyrgyzstan, followed by Osh, and Shymkent in Kazakhstan in August last year. What are your firm's plans for the future? We try to venture into markets where we can see niches for our services and where we are aware of the potential of local specialists. We rely on people who, with our substantive and technical support - telemedicine plays a huge role - are ready to build a wellfunctioning team and independently run the facility. We have developed this model based PM
on our experiences in Ukraine, the same in Kyrgyzstan and Kazakhstan. We will soon open another clinic in Dakar in Senegal. West African countries have a great development potential, and at the same time a historically conditioned distrust of investment coming from France and the UK. It is an opportunity for Polish medicine and Polish companies. You have mentioned telemedicine. In what way does the use of modern technologies support the foreign expansion of your firm? The use of telemedicine solutions to provide direct assistance to patients is now commonplace in our company. However, I would like to point out another aspect - our foreign partners in the developing countries are looking for effective, innovative solutions for patients, but also for mentors - people who will be able to offer them medical knowhow. The possibility of conducting regular teleconsultations with specialists from Poland improves the knowledge and skills of local doctors. We can see that after a while they rarely need our direct support, because in many cases they are already able to diagnose patients and implement proper medical management on their own. And that’s our great success. • PM
IN GOOD SHAPE BARBARA JERSCHINA, M.D. Ph.D., of the JERSCHINA Face & Body Clinic, an expert in aesthetic and anti-aging medicine as well as weight loss, talks to Danuta Bierzańska.
Does modern medicine keep up with human problems? Medicine is developing dynamically, and when it comes to my area of interest,which is aesthetic and anti-aging medicine, we are dealing with a major problem, namely that society is aging. The average life expectancy is 80 and we don’t want this long life to be associated with disease. We want to be in good shape, and looking good also matters. Taking care of yourself means that the body serves us longer in good condition. PM
All the more so that a sedentary lifestyle does nothing to keep you in shape… That's right. This lifestyle means that we do not burn calories, metabolism does not function as it should, the body does not get the right amount of oxygen, it is not "ventilated," there is insufficient blood supply to the joints, which are only nourished when we are physically active. I recommend regular physical activity of a recreational nature to my patients. I do not demand that they make too much effort – they should take regular walks, sometimes at a brisker pace. I give them the famous 5 to 10 thousand steps a day recommendation. Aging and the risk of diseases have been accelerated due to smog. In a nutshell, anti-aging medicine is actually preventive medicine. PM
What else can you do to prevent us from ageing too quickly? You need to drink plenty of water. It is well-known that sweetened and fizzy drinks heighten the risk of atherosclerosis and even PM
THE PATIENT SHOULD LOOK LIKE A YOUNGER VERSION OF THEMSELVES, NOT LIKE A NEW PERSON. pancreatic cancer, as recently discovered in the US. Healthy eating is important. We eat too much sugar and too much meat. We must constantly remember to eat vegetables - including legumes - which can be eaten without restrictions. Let's also try to eat freshly prepared meals. You stay in good shape when you feel good. We know that the body of a person who is positive, smiles a lot and is kind to others, releases more serotonin and endorphins. We also know that learning something new - another language or new skills - creates new synapses in the brain and has a very positive effect. What does aesthetic medicine do? It’s about prevention and treatment, also skin care. We know how to prevent skin from ageing and improve its condition. We offer all kinds of traditional treatments such as mesotherapy, a growing range of products, fillers based on hyaluronic acid, all kinds of peels, exfoliation and revitalisation treatments. PM
We have high-end equipment - the latest very effective technology, such as Light Pod Neo - a modern American laser which has a number of uses. It is perfect for closing vessels, discoloration and acne treatment, hair removal, as well as onychomycosis and psoriasis treatment. It is the first laser which helps to successfully manage psoriasis. It’s the only such laser in Poland. It is very safe but also very powerful. We also offer ultrasound lifting, face and body modelling, lymphatic drainage suits, ensuring pneumatic drainage plus magnetic field Ulthera and ultraformer III therapy.. What innovations are being introduced in the field of aesthetic medicine? The most innovative thing is an approach according to which a person should look natural and feel at ease. Our role is to make sure that we perform treatments in such a way that the effects are not conspicuous. The patient should look like a younger version of themselves, not like a new person. This requires a great deal of knowledge. We have many packages combining laser therapy with injections and high-tech cosmetology. We develop our own therapeutic programmes which allow you to achieve the best results by combining all available solutions. This modern approach was evident at the last Academy Awards ceremony. We know how old the actors are, so we can appreciate their appearance – it’s healthy, but not artificial. This trend came to America from Europe. And the effects of this holistic approach are • amazing. PM
2-3/2020 polish market
AT A HIGHER LEVEL It has been almost one year since we first wrote about Beata Gracjana Smogorzewska's experience with cosmetics by the Hungarian company Lavylites. This time inspired by Lavylites “consciousness cosmetics” she explains that Lavylites is more than cosmetics offered by the Hungarian company. It is a lifestyle. The Universe of Lavylites accepts all. It is a wonderful feeling to see how people’s eyes shine after they tested these magic high-tech cosmetic creations and then tell me what amazing results they noticed. Their gratitude fills me with happiness as well. Lavylites is a community and organisation with the aim of making things better. This community has members from all over the globe, they speak different languages and represent cultures that differ significantly. It reaches across geographical boundaries and breaks trough invisible educational gender and cultural walls. Lavylites is involved in areas such as charity, business, art, counseling and teaching. Become part of the Lavylites family. For more details check out: www.lavylites.com ID 151621 necessary to log in Beata Gracjana Smogorzewska +48 501 310 417 E-mail: email@example.com
The world is changing, life is changing, and you exist in constant transformation, too. Your skin is a mirror of all changes. It requires tender care in order to be able to protect you in any life situation and shine the way you shine deep inside. If you provide your body and soul the care they need, you will embark on a journey of unfolding. It will be faster than you think, and deeper than what is visible. Much deeper.
INSPIRE YOUR BODY AND SOUL
BEAUTY & RESEARCH EXPAND REAL POSSIBILITIES
WOMEN The 25th anniversary of the “Polish Market” magazine is slowly approaching. In the run-up to it, we would like to focus on the participation of Polish women in building the economy and the image of Polish entrepreneurship which is one of most valuable Polish brands. To this end, each month we are going to present proﬁles of women and interviews with women who stand out in their respective ﬁelds. In the 19th and 20th centuries the situation of Polish women was diﬀerent than that of women in Western Europe, where the emancipation movement was born. When Polish men were busy ﬁghting for national independence, Polish women not only worked at home, but were also involved in education and business. Some of them also devoted themselves to the ﬁght for independence. The position of Polish women was strong, which was exempliﬁed by the success of Nobel prize winner Maria Skłodowska-Curie, who actually won the award twice. This does not mean that the problem of women's marginalisation in Poland’s public life in did not exist. From the end of the 18th century until the end of World War I, Poland was ruled by three states: tsarist Russia, Austria and Prussia (Germany.) In all of them, the patriarchal model prevailed. Women who were born in occupied Poland thus faced two problems: unequal treat ment and ethnicity. And yet, whether they chose to emigrate, marry a male scientist to share their fame with, or do grassroots work at home to prepare the nation for independence, Polish women did succeed. Their eﬀort was appreciated. In the wake of World War I, many countries gave women the right to vote. Poland, which regained independence in 1918, was among the ﬁrst to do so. It was the ﬁrst step to full equality for women, the fruits of which we can observe today. Polish women are engaged in culture, hold high managerial positions, lead their own companies and pursue political careers.
58 polish market
POWERFUL POLISH WOMEN
CURIOUS ABOUT THE
EWA EWART, documentary film director and producer, winner of the 2016 Honorary Pearl award, honoured with the Polish Ombudsman's Human Rights award, talks to Danuta BierzaĹ„ska.
What role do documentary films play in the era of television and the Internet? A good documentary will always play a very significant role. Ever since I became involved in documentary filmmaking, I have heard many prophecies predicting the end of this genre. The spectacular rise of the Internet has only intensified these predictions. A documentary rises like a Phoenix from the ashes to prove its importance and role in explaining the world and exposing what is wrong with it, each time someone passes a death sentence on it. PM
How do you perceive yourself as producer/ director? As someone for whom sticking to the truth while telling her story is the only guiding principle. As a documentary filmmaker, I am an observer and narrator of the modern world. I watch it and pick up stories I consider essential to tell, and such stories offer an interpretation of what is going on in the world. All I know about how to make a good documentary comes from many years of working for BBC TV in London, in the Current PM
Affairs Department. I mainly take on social and political subjects. And I made a lot of films that deal with human rights abuses. The only measure of how good is a documentary film is how truthful it is. And it is important to be aware that there is no such thing as an objective documentary. The unbiased take on a film stops the moment the author decides on telling a story by choosing one perspective over another and decides to talk to five out of the pool of many potential contributors. These decisions are subjective. Therefore, the outcome is always 2-3/2020 polish market
POWERFUL POLISH WOMEN
the story filtered through the author’s perception. A documentary filmmaker of the type of films I produce is also a journalist, whose role is to watch and challenge those in power, and whose decisions and a way of conduct affect millions. The difference is in how we expose their abuses of power and authority. In a film, I have more time than someone who works for a news agency, and whose story has to be ready and out now! I have the luxury to dwell in a story, to go deeper, and to show its context. I can tell this from my own experience; I’d worked in the news before I moved into the documentary world until I got tired of the relentless pace of delivering my dispatches. One day, when I was living in Moscow and working for the CBS News, one of the leading American TV networks, it took me a while to remember what story I had produced barely twenty four hours before. It was a signal for me that I had approached the end of the road as a news journalist. What kind of audiences are interested in documentaries? People who are curious and strive to understand the world in which they live. In 2009, when I started my cooperation with TVN24, the network presented a selection of my films I had made for the BBC TV. The response of the Polish viewers overwhelmed me. Modesty apart, they were all good films, which revealed a lot of unknown information, but such an enthusiastic reaction took me by a slight surprise. And then I realized that these films had filled in a particular gap here. Poland has some fantastic documentary filmmakers, but there are very few who have decided to tackle subjects I usually take on. In these films, the viewer discovered that stories, which often are complex and challenging to watch, could be told in such a way that the viewer fully identifies with them. Perhaps the trick is that I am always trying to talk about significant issues and problems from a very personal and human perspective. And it works every time. I would like to believe that my viewers here have learned how to become more curious about the current reality we are living in as well as more conscious of the fact that they are very much part of this reality. Isolation is not an option in our global world, in which we are all interconnected and interdependent. I think that the fantastic response of the Polish audience to my latest film, “The Curse of Abundance,” which I shot in Ecuador, but PM
60 polish market
THE ONLY MEASURE OF HOW GOOD IS A DOCUMENTARY FILM IS HOW TRUTHFUL IT IS. it tells a story which is far from a local one, proves that this may as well be the case. It addresses the danger of ongoing climate change as a result of the global economic model based on the extraction of fossil fuels. How do you cope with the often depressing topics you pick? I won't pretend I am a superwoman, and I won't say it is easy for me to cope. There is always a price to be paid if your choices involve emotionally challenging topics. It is rather difficult to explain how I deal since I do not fully understand it. Somehow, I have developed over the years protective mechanisms, which dull to some extent my natural emotional responses. When I confront a challenge, I go straight away into a task mode. It then allows me to soldier on and get it done. There was only one case when I allowed showing that I am also a human being who feels emotions, not just a producer/ director on the mission. It was when I worked on a film about Beslan children who were the victims of a terrorist attack. PM
Every week TVN24 shows documentaries in the "Ewa Ewart recommends" series. How do you select these films? There is a production team in place with access to a wide range of documentaries. We source them all over the world; from many platforms and agencies, then buy a license, which allows us to show the films on TVN24. BBC content is an excellent source of good documentaries, and we show quite a lot of its films. We make sure that our selection appeals to the broadest audience and reflects various interests of our viewers, as well as informs about the most relevant contemporary issues. PM
In what ways is documentary film production financed? During my 20 years of work for the BBC, I had the luxury of not having to worry about financing. Once I got a commission for a film, or my editor accepted my pitch, the production manager would then assign me a corresponding budget. It was marvellous. PM
I made four big films for TVN24, and the network provided the budget as well for each of them. I get a lot of offers from different quarters, but I am mostly a freelance, which means that it is now my job to worry about the funding for my projects. Yasuni project came to me from an independent production company, which should also provide the money for it. But in the end, I got involved in raising funds, and it was a very interesting process, which taught me a lot. And I was lucky to have met Piotr Krupa, the CEO of the Kruk Company, who ultimately financed the film. In this case, a well-prepared presentation of the project, which included a short, well-made trailer, highlighting the critical points of the subject plus- I want to believe- my public profile and standing proved to work. Piotr got convinced that it was worthwhile to get involved. The Polish company Kruk got involved in the production of the film about the Yasuni Forest entitled “The Curse of Abundance.” Is investing in documentary film production profitable? Or are there other reasons to get involved, such as CSR? It was only natural that Mr. Krupa asked about a possible return on his very generous investment. I was honest straight away in responding that documentaries don’t make people rich. But I said I could promise that I would do my best in delivering a film that would not disappoint him and that he would not regret his decision to support us. Mr. Krupa didn’t hesitate and stood by his initial offer. The film would have never happened if it weren’t for his funding of its production. Piotr reacted like a human being who appreciated the importance and the urgency of making a film with a clear warning to the world: we are doomed unless we dramatically change our ways. “The Curse of Abundance” has won a number of national and international awards, including the Gold Intermedia-globe and the special Global Awareness award at the World Media Festival in Hamburg. • PM
POWERFUL POLISH WOMEN
THE STRENGTH OF A WOMAN’S INNER
beauty MIRA JANKOWSKA, founder of the Master Academy of Love, photographer of female beauty, talks to Jerzy Mosoń.
The "Polish Market" magazine is present in Milan, where the 60 Million Congress of the Polish diaspora is held. This city is also close to your heart, isn’t it? In Milan, I completed postgraduate studies in marketing at the renowned Berlusconi Master in Comunicazione e Marketing university. It was over 20 years ago when Poland was at the outset of the market transformation process. For me it was an opportunity to understand what the free market was in practice. It was so hard because I had grown up under communism. Now I have less frequent contacts with Milan, but I have a lot to do with Italy. PM
IN A SENSE, A WOMAN ENTREPRENEUR IS THE QUEEN OF HER BUSINESS.
2-3/2020 61 polish polish market market 61
POWERFUL POLISH WOMEN
Your project the Master Academy of Love is focused on looking for beauty, also in yourself. Is it a big challenge for successful women to compete in business on a daily basis while looking for beauty, loving themselves and others at the same time? A human being must love and feel loved, it’s the essence of life. When you experience it, everyday matters, including professional matters, become easier to cope with, because love inspires you and gives you wings. To love another person, you also need to be able to love yourself in a healthy way. That is why the motto of the Master Academy of Love (www.mistrzowska.pl) is "We help you to love yourself and others." The ability to love is part of the human existence, but the ability to love in a healthy way is a science. We often need to unlearn what is no good to us and drains vital forces away from us, and learn healthy habits. This is where the Academy helps. And beauty is the outcome, both on a personal level, and the beauty of life. You realise that life is exciting and colourful, though it can be difficult. You also feel grateful to others, yourself, fortune and God. This attitude is a natural recipe for anti-aging. A human being is a whole, so the way you treat yourself, you will also treat others, though it may seem that you treat yourself better. But in reality, you may hate yourself and punish yourself for everything. The outward expression of this is a craving for material possessions, fame, influence, a desire to prove your own superiority. Only an all-rounded internally coherent human being is able to run a business in a healthy way, without hurting others or being unscrupulous. In all this, the woman's own beauty - the inner beauty which we can show outside - has enormous strength. It is our power, but it should not be used against anyone. It gives you the control to be able to do what you want to do. It’s like being a queen. In a sense, a woman entrepreneur is the queen of her business. First, she must be in control of herself, in a positive sense of the word, to be able to manage others, to lead them by giving them the best she has to offer, for she runs the business for them as well as for herself, regardless of whether the business provides a particular service or is a manufacturing facility. A woman leader should be responsible, have good relations with others, know how to use her intellect, and with that comes nobility and class, everything which is associated with true femininity. However, beauty devoid of human depth becomes empty and harmful. PM
How to keep your style and class when there are often ruthless people on the other side of the negotiating table, and it is not always nice? I am a supporter of the win-win principle, which means that both sides come out victorious and satisfied. It is difficult to run a business or pursue any activity when you encounter adverse circumstances, although it happens all the time. Then a wise woman intelligently uses the resources which her way of thinking and acting offers us. We are able to see and feel more because our attention is divisible. In my opinion, a strong and gentle woman is a good negotiator. And if she runs a business, this fact already shows that she has power. Sometimes you just have PM
62 polish market
to ask yourself, is this what I need and is it really worth striving for? In what way are Polish business women perceived in foreign countries? Are women who do business in Poland different from those who have worked abroad? Polish people are very resourceful, Polish women in particular. It stems from our history, the past few centuries, when we had to cope without men who were sent into exile, fought in wars, were killed in uprisings or in prison and labour camps. That’s what has built our character, which is another story. Now, Polish women who do business in foreign markets, often perform much better than foreigners, because they had to overcome more obstacles. And that makes you tough. I am talking about my generation, the one which has roots in communist Poland. But young women are also very successful. I must admit that whenever I see a Polish brand abroad, and especially one built by a woman, I am extremely proud and full of admiration that she has made it. There should be as many of us as possible, because we need to support one another, this is our strength. PM
Women’s passions are often associated with fashion and a sense of beauty. Then a passion becomes a business, maybe not full-time. Are there many such cases? I guess I’m a good case in point. My passion as a photographer has come to light fairly recently. I take photos which work therapeutically on women because they bring out their beauty. The women are basically girls next door of all ages, not models or movie stars. Pictures are supposed to prove to them how charming and original they are, and that the world is waiting for their beauty. Just how important it is became evident to me through their reactions and their internal transformation. Having taken part in my classes, they literally fly out as butterflies, even though they initially perceived themselves as plain and unattractive (www.MiraJankowska.pl). Good photography has genuine healing powers because it shows your inner beauty. Each of us has it. When women tell me that they are not photogenic, I just laugh and prove to them that it’s absurd to think that way. They just haven’t had access to a good photographer who loved them. Interestingly, it happened to me once that I found it difficult to photograph an extremely beautiful woman, who was actually a good friend of mine. I eventually succeeded. Another time a woman proved very reluctant to open up, and she just didn’t let me in. Then there’s nothing you can do. A female student of the Faculty of Photography at the University of Warsaw has recently decided to write her M.A. thesis on my work as a photographer, which she describes as "therapeutic photography." I’m really flattered. My work with women has become part of my professional work, both during femininity workshops and parallel photo sessions. It gives me a lot of joy and satisfaction. Mentoring works in a similar way, as a form of an in-depth conversation focusing on the other person. It works in the same area of human beauty - only in this case, we bring out one’s inner beauty by analysing and re-directing their private and professional life. I can see it’s very effective, because their lives become more harmonious and fulfilled. It’s so heartening. • PM
FEBRUARY 2020 EXPERIENCING THE ARTS IS THE KEY WORD IN THIS NEW YEAR'S EDITION OF THE CULTURAL MONITOR. MACIEJ PROLIŃSKI TAKES A SNEAK PEEK AT SOME OF THE NEW RELEASES. LEONARD COHEN - "THANKS FOR THE DANCE" - SONY - CD The last album by the Canadian bard has come out more than half a century since his brilliant debut, and three years after his death. It includes songs Cohen worked on during his last recording session for the album "You Want It Darker" a fortnight before his death. Several sketches of songs were then made, sometimes only vocals were recorded. The artist’s son, Adam Cohen, worked on their final versions after his father’s death. This album is amazing for many reasons. It was recorded in many places and with the help of many talented collaborators, Cohen’s friends and fans. Javier Mas, the great Spanish lutenist who accompanied Leonard on stage on joint tours for the last 8 years, flew in from Barcelona to Los Angeles to capture the essence of his friend's guitar playing. The Shaar Hashomayim choir, known from the previous album, also appeared on the recordings. Jennifer Warnes performed supporting vocals, and Beck played the guitar and Jew’s harp. But Leonard Cohen’s presence is the most strongly felt. It is encouraging that, at a time when music is often sold by the pound, there are still some things which retain their weight, and experiencing the arts still matters. The final track of the album, the touching "Listen to the Hummingbird," is to this reviewer - a tangible proof of what great art is all about. It is also an incentive to constantly rediscover it, and live your life in a meaningful way.
MAREK DYJAK - "BEAUTIFUL INSTALLER" - AGORA - CD Marek Dyjak is a Polish music sensation. He is not a graduate of any music college. He has never shone on any TV talent show, and yet he has found a place in the Polish chanson genre, thanks to his sensitivity and an original, strong and deep voice. The song "Beautiful Installer" won Dyjak one of the awards at the Student Song Festival in Krakow in 1995. On the latest album he sings it again in a duet with rapper Vienio. Guest stars also include singer Renata Przemyk and Zosia Hiszpańska, a young violinist who plays a theme by Zygmunt Konieczny from the film "Jasminum," with lyrics written by Robert Kasprzycki. That is how the song "Miriam" was born. Multi-instrumentalist Marek Tarnowski, who has been working with the artist for many years as a band member, is responsible for the production of the entire material. The atmosphere of the album is also created by Dyjak’s longtime trumpeter Jerzy Małek. "I've always wanted to sing meaningful lyrics written to great music, I believe that I have managed to achieve it in this case," says Dyjak. Have a listen and find out for yourself. This amazing, striking and touching album shows how strongly the artists feel about being free and their own beliefs. Musically, we get an album which is refreshingly raw. It is music with no makeup on.
"GROOVEOBEREK"; "IN A SENTIMENTAL MOOD" - AC RECORDS - CD / LP Adam Czerwiński is the founder of the AC Records label and an excellent jazz drummer. CDs released by AC Records feature high-end quality, brilliant recording and mastering, which is owed to the legendary Abbey Road Studios, which this tiny but ambitious Polish record company works with. The album "Grooveoberek" is by the MAP trio (Marcin Wądołowski - acoustic and electric guitars, Piotr Lemańczyk - acoustic and electric bass, Adam Czerwiński - drums and guest star Krzesimir Dębski (violin, fender piano, vocals). It is the result of a joint music journey by each band member. Each of them brought their own music to the session. The material is extremely diverse, from quotes from folk tunes, to a moving version of an old Roman Catholic church prayer, classical jazz, to the jazz version of Dębski's hit film score from the TV series "The Ranch." The band’s sound is impeccable, and its improvisations are very convincing. The musicians understand each other very well, and their creativity clearly shows through. "In a Sentimental Mood" is another special album for many reasons. The music was recorded on the initiative of two friends Wojciech Karolak (Hammond organ) and Adam Czerwiński (drums) whose joint artistic path covers several decades. The material is the result of both their mutual love of jazz and a fascination with the traditional song. Hence the album's makeup, which in addition to own compositions by the two artists, also includes famous Duke Ellington and Sonny Rollins jazz evergreens, as well as instrumental versions of Polish standards. The accomplished Polish jazzmen recorded the material live, without any extra sessions or mixing. The artists were accompanied by other celebrities: Robert Majewski (flugelhorn), Tomek Grzegorski (tenor saxophone) and guitarist Marcin Wądołowski.
64 polish market
"MĘSKIE GRANIE 2019" - POLISH RADIO - 2 CDS The "Męskie Granie" concert tour featuring male artists has been organised since 2010. It involves various Polish performers and attracts tens of thousands of music fans each year. Each concert is a unique mix of music genres and stage personalities. The performances can only be heard during this unique series of gigs. "Męskie Granie 2019" is the 10th album documenting the concert tour. The album includes interpretations of Polish and foreign pop classics performed by, among others, Natalia Przybysz, The Dumplings duo and the band Lao Che. A touching performance of one of the greatest Polish rock numbers, "Prayers" by the 1960s band Breakout, ends the first album. Wojciech Waglewski sings and plays the guitar with Paulina Przybysz’s band Rita Pax. The second CD features a concert recording by the Męskie Granie Orchestra 2019, starring singers Tomasz Organek, Igor Walaszek and Krzysztof Zalewski, and the first lady of Polish rock, Kasia Nosowska.
TIE BREAK - "THE END" - AGORA - CD Into the fourth decade of playing together off-and-on, they have never lost their creative vigour. In a music scene where it is so easy to ruin someone else's reputation through mockery, where perfectly groomed debut performers are desperate to become as famous as long recognised stars, and where established artists often prefer to play it safe, this band makes it a point to stay independent and fresh. "A milestone on the Polish independent jazz scene" is how the band is often described in encyclopaedias. Its line-up has often changed, but four musicians have always been its core: Antoni Gralak on trumpet, Marcin Pospieszalski on bass, Mateusz Pospieszalski on saxophones, and Janusz Yanina Iwański on guitars. All their work proves that some music cannot be pigeon-holed as a conscious choice by elite artists who shun short-term commercial gain. The band's eighth album, called "The End," is out now. On this album you can hear what is otherwise only achieved by Tie Break. The music sounds detached from the past, and yet it is strongly associated with Polish and multicultural tradition. In addition to original instrumental music, we can also hear songs and instrumentals, including songs with lyrics by contemporary alternative Polish poets Dariusz Brzóska Brzóskiewicz and Jerzy Jacek Bieleński.
"HERBERT 3.0" - POLISH RADIO - CD On December 22, 2018, Polish Radio 3, the Father Christmas Foundation and the National Centre for Culture organised a concert in Warsaw featuring a group of independent performers (mainly younger artists) representing various genres. They were all asked to write music to a selected poem by Zbigniew Herbert (1924-1998), one of the greatest Polish poets. Among the performers were Mela Koteluk, Justyna Święs, Krzysztof Zalewski, Król, Skubas, and veteran of the Polish independent scene, Wojciech Waglewski. The artistic side of the undertaking was taken care of by composer, pianist and producer Miłosz Wośko who made sure that individual pieces fitted the framework of the project. The accompaniment was provided, among others, by a chamber string orchestra which included musicians from the acclaimed Aukso orchestra from the southern town of Tychy. The music recorded during the concert was released under the Polish Radio label. The album features different music styles, melodies and rhythms, but its contemporary approach to the classic poems only adds to the artistry of Zbigniew Herbert’s poetry and gives it a new life. Thumbs up.
"THE BEAST / THE POLISH DANCER" DIRECTED BY ALEKSANDER HERTZ - NATIONAL FILM ARCHIVE - AUDIOVISUAL INSTITUTE (FINA) - DVD / BR This tragic story of a love triangle involving a young female artist and her two lovers is a classic silent movie. The role of the artist is played by Pola Negri - the greatest Polish Hollywood star ever. "The Beast" is her oldest surviving film. The actress was quickly noticed by German producers, and in 1917 she began to play in German films. The success of German films starring Negri on the American market attracted the attention of US distributor Jesse A. Levinson. Following a few minor changes, the re-edited movie premiered in the US in 1921 as "The Polish Dancer." Levinson advertised the film as a new release, even though it had been made 5 years earlier. The movie has survived thanks to its US distribution. All Polish copies were lost during WWII. A nitrate copy of the film was preserved in the Museum of Modern Art in New York, until it reached Poland in the 1960s and was handed over to the Central Film Archive in Warsaw (currently FINA). In 2017, on the centenary of its premiere, the National Film Archive - Audiovisual Institute digitally restored the film in 4K/UHD quality. Music for the new version was written by composer and pianist Włodek Pawlik, one of the most important figures in Polish jazz. The Polish school of incidental music has been well-known internationally for many decades. Pawlik is one of its most distinguished representatives. He also has a gift for writing catchy, heartfelt themes. In this case, you can find as much as an hour of his music, not only for the piano, but also involving computer effects, with elements of funk and Polish folklore. The DVD comes complete with a book on the history of the movie. It contains unknown facts about its production and is available in Polish and English versions. 2/2020 polish market
WALDEMAR DĄBROWSKI, Director of the Teatr Wielki - Polish National Opera in Warsaw, sat down for a chat with Maciej Proliński.
mat. Teatr Wielki - Opera Narodowa / fot. Marlena Bielińska
C U LT U R E I S T H E F O U N D AT I O N
"Not coal, not oil, but culture is our most important asset" Polish Nobel Prize winner Olga Tokarczuk said at a recent cultural event. It's obvious to some people but is it a view which is commonly shared? The causative role of culture is often overlooked in Poland. What’s your view on that? You’ve hit the nail right on the head. For the most part, culture is understood as an expression of some creative abilities of a handful of people touched by God, who let us enjoy a poem, image at a gallery, piece of music, etc. The dimension often elusive, often transcendental - of artistic creation is of course priceless, but I view culture in broader terms. The way in which ordinary Polish citizens relate to culture is the foundation of the state and society. And it is not just about artistic or even cultural competences. It's all about elementary things, like respect for, say, the right angle. Putting up a lopsided road sign costs exactly as much as putting it at the correct angle. The point is to have this right angle internalised. So the more cultured we are, the easier we can deal with the challenges of the present day, the easier it is for us to understand PM
66 polish market
the complexity of the world which surrounds us, to draw conclusions necessary to set goals we want to reach. People with a broader cultural perspective work more efficiently. They live more wisely.
poems with English, French or Swedish readers in mind. In the past 100 years, five Polish writers have won Nobel Prizes in literature. If that is the case, is Polish culture really hermetic, you may well ask.
I have recently heard a journalist say that Polish culture is too hermetic. I was speechless. I instantly recalled all the names of Polish artists representing visual arts, music, theatre and film who have reached international success, to mention but the late theatre director Tadeusz Kantor. His production “Wielopole, Wielopole” about his small provincial world in a locality close to the town of Tarnów made the place known to theatre buffs in many countries. There are hundreds of such names in Polish culture who are well received by the outside world. The list is endless. And this journalist clearly did not understand that for an artistic message to become universal, it must be local - it must arise from the artist's genuine experience, from an attempt to universalise it. (Polish Nobel Prize winner ed.) Wisława Szymborska did not write
What’s your assessment of the Stanisław Moniuszko Year, which commemorated the composer of the most famous Polish operas? You were the coordinator of the Moniuszko Year events. Stanisław Moniuszko (1819-1872, ed.) is an unusual figure for Polish culture. He is one of the leading lights who developed the language of Polish culture and its values. The basic problem I had to face was that everyone in Poland knows his name, but mainly because of the huge number of streets, parks and schools which are named after him. However, his work, apart from two operas, is almost unknown. The main goal of the Moniuszko Year was to place his music at the core of Polish culture. When I started working on the concept of the Moniuszko Year, I came across a book published in 1938. Its author argued
that Polish culture neglected Moniuszko, which deserved to be changed. So the silence surrounding Moniuszko does not just concern our generation. During the Moniuszko Year we wanted to show the greatness and diversity of his music. For example, religious music, which was performed at the Stanisław Moniuszko Religious Music Festival in Warsaw. This music is endearing in its honesty and emotional impact, and yet hardly anyone knows about it. In 2019, a lot of good albums were released, and music scores were published. Musicological conferences and concerts took place. The 10th Stanisław Moniuszko International Vocal Competition was a resounding success. A Polish version of the book "Stanisław Moniuszko and His Music" by German historian and musicologist Rüdiger Ritter was brought out by the Adam Mickiewicz University publishing house in Poznan in conjunction with the National Opera. This long-awaited publication is an important project of the Monuszko Year, which fills the gap in Polish literature devoted to the composer. There is no doubt that thanks to numerous concerts and opera productions featuring excellent singers, and thanks to various competitions for young people devoted to Moniuszko, this year brought a lot of changes in the perception of his work, which will hopefully never be neglected again. This month will see the Polish premiere of a new production by Mariusz Treliński of Moniuszko's opera “Halka” - one of the most famous Polish operas. Its world premiere took place at the Theater an der Wien in December. Its great strength is the darling of Viennese audiences, Polish tenor Piotr Beczała, who fought for the opera to be staged in Vienna, and who will also sing in Warsaw. The opera, which was written between 1848 and 1858, tells the story of a doomed love affair between highland girl Halka and nobleman Janusz with echoes of class tensions. It seems to be an operatic evergreen, which in our new version will touch on serious issues. I would like to congratulate Mariusz Treliński for his artistic courage. He has set the production at the Kasprowy Hotel in the mid-1970s mountain resort of Zakopane. This luxury hotel is by nature a place of social inequality, where a new guest arrives. Halka is the chambe rmaid. In Moniuszko’s opera, everything revolves around the hapless girl. In Treliński’s version, Halka is Janusz’s guilty conscience, someone who haunts him in his dreams. To quote Piotr Beczała, it’s a brilliant concept. Staged in a traditional way, "Halka" wouldn’t have become a success. And at the premiere in Vienna it won a standing ovation. PM
Photo. Monika Rittershaus
Corinne Winters (Halka), Piotr Beczała ( Jontek)
It’s now common to change the setting of an opera, to contemporise it, which is not necessarily to everyone’s liking. Are you in favour of this approach? "The Haunted Manor," the other one of Moniuszko's two most famous operas, was staged in Warsaw a few years ago by the British director David Pountney. It showed that our national opera may sound different from what we’re used to. I first introduced David to Moniuszko’s work. When he read the libretto, he said: "What a strange work, what’s it about?” For a person with a different cultural background, it was simply incomprehensible what the great value of this work was in the years 1861–1864, i.e. under Russian censorship. I explained to him that what is most important here is what is not written, which the Russian censor couldn’t grasp, and that is symbolism. Just like in all great Polish romantic literature. David understood that the opera was set in the late stages of the Polish-Lithuanian Commonwealth (before Poland was partitioned by Russia, Prussia and Austria ed.). So it is set in a free Poland, but there’s this sense of impending doom. He found a parallel with 1920s and ‘30s Poland. Naturally, this caused a lot of emotion and discussion. But in my opinion, the opera is there to provoke debates about things which are subject to various interpretations. That’s why, to answer your question - it all depends. Sometimes these shifts in time or changed settings are justified. And sometimes, of course, there are monstrous abuses resulting from the director's arrogance and helplessness regarding the work itself. PM
Apart from Moniuszko, what else do you have up your sleeve at the Teatr Wielki Polish National Opera this season? As always, we want this season to carry an important artistic message. Even though the Moniuszko Year ended on December 31, the celebration will continue for another few months, opening up good prospects for the future. We believe that our productions will satisfy seasoned music, opera and ballet lovers, and that they will also attract those who are just considering visiting our opera house. On May PM
5 we will introduce Luigi Cherubini's "Medea" to our repertoire. This opera was resurrected in the mid-20th century thanks to Maria Callas’ part as Medea. In Warsaw, it will be staged by Australian director Simon Stone. Another opera premiere, "Werther" by Jules Massenet, will take place on May 29. It is a study of romantic love based on Goethe. The production will be directed by Willy Decker. The Polish National Ballet will stage "Corsair" inspired by a poem by Byron in contemporary choreography by Manuel Legris, transferred from Wiener Staatsballett, where it was shown for the first time in 2016. "Corsair" opens on March 20. Standing on a table between us is the International Opera Awards statuette, which you received at London's Sadler’s Wells last year for outstanding achievements in opera management. Congratulations once again. This "operatic Oscar" is a source of prestige for me and a great distinction. It is confirmation that the National Opera is an institution included in the group of the best opera companies in the world, and that it is recognised by world audiences. The value of our Warsaw opera company is that it is open to cooperation. Most of the performances at the Teatr Wielki - Polish National Opera are co-productions with opera houses in various European cities. In the past season we worked together with the Prague, Oslo, Stockholm and Berlin operas, as well as with the Aix-en-Provence Festival. Our opera house is also opening up to the outside world through its online platform vod.teatrwielki.pl. The basic purpose of the opera is not to be a theatre production set to music, or music combined with a theatre production. It is a fusion of this extraordinary creativity of so many artists, which is bound to mean something for the audience. The orchestra, choir, soloists, ballet, conductor, stage designer, director and dozens of others must communicate and agree, which together forms the final shape of an opera production. In a nutshell, we want to respond to the requirements of contemporary creativity. I believe that we are getting better • and better. PM
2-3/2020 polish market
THE NEED TO SING A host of Polish opera singers, including Aleksandra Kurzak, Piotr Beczała, Tomasz Konieczny and Artur Ruciński, has won acclaim on some of the world’s most important opera stages. They follow in the footsteps of Teresa Żylis-Gara, the doyenne of Polish opera singers, one of the most famous Polish sopranos of the 20th century. She is now celebrating her 90th birthday. On January 26, 2020, Teatr Wielki - Polish National Opera in Warsaw hosted a special concert dedicated to the artist. Maciej Proliński
68 polish market
Wielki-Polish National Opera as Tosca in Puccini's masterpiece, together with the great Polish tenor Wiesław Ochman in the part of Cavaradossi. On January 26, after more than 40 years, both artists met at the National Opera again, but in different roles. With his youthful energy and wit Wiesław Ochman hosted the entire evening in honour of his long-time friend. "Teresa Żylis-Gara conquered the opera world. Everywhere I went, Teresa was already there. And all the time I heard: bella, fantastica, eccelente, wunderbar," he said. During the benefit, a letter from Polish President Andrzej Duda was read by his adviser Tadeusz Deszkiewicz. "Your virtuoso solo parts and all masterly acting creations have gone down in the history of this genre and are still being followed by young singers. If anyone wants to look at 20th century opera singing, they must remember all your brilliant interpretations. And although in your interviews you emphasise that you do not feel your voice is
a legend, it is difficult to find a more accurate term," Andrzej Duda wrote. Waldemar Dąbrowski, director of Teatr Wielki - Polish National Opera said about Teresa Żylis-Gara: "The whole world talked about her - about this beautiful voice we heard. All the great stages of the world were open to her. After the end of her vocal career, she devoted herself to teaching. Generations of Polish opera artists are extremely grateful for that," he said. "For me, vocal art was above all my need to sing. And if you love singing so much, you need it more and more," Teresa ŻylisGara said. She also performed two songs by Chopin "A wish" and "Pretty boy." Earlier, an artistic tribute was paid to her by the Teatr Wielki Orchestra conducted by Grzegorz Nowak, featuring Marcelina Beucher, Ilona Krzywicka, Aleksandra Kubas-Kruk, Olga Pasiecznik (soprano), Urszula Kryger (mezzo), Tadeusz Szlenkier (tenor), Marcin Bronikowski (baritone) and Janusz Olejniczak (piano). •
Photo: Krzysztof Bieliński / Teatr Wielki – Polish National Opera
er unique lyrical soprano and acting skills have delighted listeners around the world for decades. She was born in the Vilnius (then Wilno) suburb of Landwarów on January 23, 1930. She studied at the State College of Music in Łódź. Having won the National Young Vocalist Competition in Warsaw (1953) she got her first job. In 1956, she made her debut at the Krakow Opera in the title role of Halka in the most popular Polish opera by Stanisław Moniuszko. A breakthrough in her career was a performance at the Paris Opera in 1966, where she sang the part of Donna Elvira in Mozart's "Don Giovanni." Her career gained momentum since then. In 1968, she performed at the Mozart festival in Salzburg under Herbert von Karajan. In the same year she made her debut in Verdi's "La Traviata" at London’s Covent Garden, and at the Metropolitan Opera in New York. She stayed at the Met for 16 seasons. She also performed in opera productions in San Francisco, Berlin, Hamburg and Munich, as well as in Milan's La Scala and Wiener Staatsoper. Her repertoire is impressive and includes 24 great parts in operas by Verdi, Puccini and Mozart. On stage, her partners included José Carreras, Placido Domingo and Luciano Pavarotti. She has recorded for reputable companies such as: EMI, Deutsche Grammophon and Polskie Nagrania. The albums feature opera parts, oratorio music, and songs, including songs by great Polish composers such as Chopin and Moniuszko. For several decades, ŻylisGara has conducted opera master classes in Europe and the US. At home, for 20 years she has been conducting master classes in techniques and vocal interpretation at the Radziejowice Palace near Warsaw. She has an excellent rapport with young singers who can always rely on her friendly advice. Teresa Żylis-Gara performed only once at the Teatr
Jacek Malczewski - "The Knight and the Faun" (pic. OneBid Auction House)
ART AUCTION BOOM According to OneBid, a website where you can take part in auctions of the largest auction houses in Poland and other European countries, thousands of art works, old coins and military accessories went under the hammer at Polish auctions last year. Over 30% of collectors made their bids online. Maciej Proliński
he most expensive art work sold paintings, especially by Zdzisław Beksiński at a Polish auction last year was (1929-2005) and Jacek Malczewski (1854-1929). the "Caminando" bronze cast Beksiński’s surreal, nightmarish visions of doom, have become one of the symbols of by Magdalena Abakanowicz. Consisting of 20 human figures, it 20th- century modern Polish art. More of fetched a price of over PLN 8 million at Desa them turned up at last year's auctions than Unicum. The artist, who died in Warsaw in in previous years, and the bidders set new 2017, was one of the brightest stars of Polish records. According to OneBid, the most 20th century art. She had her own unique expensive Beksiński work to change hands to style in sculpture and installations. Initially, date turned out to be a striking oil painting sold she started out as a painter of monumental at the Sopot Auction House last year. The 1970s gouaches, full of vivid colours, fantastic plants and creatures. From the mid-1960s she focused on large-sized works made with the use of traditional weaving techniques, which bridged the gap between sculpture and architecture. These unique works, known as abakans, can now be found in the collections of over 70 museums and galleries around the world, including the Georges Pompidou Centre in Paris. In addition to contemporary art, Polish collectors were keen to snap up 19th and 20th century Alfred Wierusz-Kowalski - "Night Ride" (pic. OneBid Auction House)
work fetched nearly PLN 390,000. A much higher price of just under PLN 1.5 million was paid at an Agra-Art auction in the Polish capital Warsaw for Jacek Malczewski’s oil painting "The Knight and the Faun." Malczewski, who is also famous for his drawings, is considered to be the father of Polish symbolism of the turn of the 20th century. As a rule, he did not explain the hidden meaning of his paintings, or what symbolic figures shown in his works stood for. The 1919 painting once owned by the well-known collector, industrialist and philanthropist Stanisław Holenderski (1871-1940), who lived in the town of Zawiercie, is one of those works whose exact meaning the viewers need to work out for themselves. Some of the favourite themes sought by Polish collectors are horse-drawn carts and hunting scenes. The priciest works put up for auction last year were by realist painter Alfred WieruszKowalski (1849-1915). A record sum of PLN 885,000 was paid for his winter scene "Night Ride," sold at a PolSwiss Art auction. • 2-3/2020 polish market
BRIGHTENING UP EMILIAN KAMIŃSKI - actor, director, owner of the private Kamienica theatre company in Warsaw, founder of the Atut Foundation, winner of the “Polish Market” Honorary Pearl 2019 in the field of culture, talks to Maciej Proliński. Last year marked the 10th anniversary of the Kamienica theatre company. As an actor, you have been present on the Polish theatre and cinema circuit for over four decades. What is the most lasting value for you in this trade? In my opinion, passion and ideas should closely accompany each other. But craft is the most lasting feature of this profession, something my masters taught me, and there were so many of them. Not until many years later did I realise how many of their tips and suggestions helped me to pick my own way. I would suggest that young people who enter the profession should respect those who have been there for years. I often meet with such arrogance and ignorance among young people who believe that everything begins with them. Nothing begins with you, young person, even your life doesn’t. Helmut Kajzar, the excellent Polish director and playwright, who is very unfortunately forgotten, said that in Poland we have a big problem because "categories are in a shameful state of chaos." He also said that we need to capture the spirit of the time. These are wise words, for as artists, we should capture the spirit of the time, but we should also be able to learn from the older, more experienced generation. PM
Your professional path has been marked by meetings with prominent artists - Polish cultural institutions. Let's focus on them for a moment ... Great Polish theatre and film actors such as Zofia Mrozowska, Tadeusz Łomnicki, Aleksander Bardini, Andrzej Łapicki taught me how to act at the Warsaw State Theatre School. It was a great time. The school shaped me. Tadeusz Łomnicki - in my opinion the greatest Polish actor - always talked about the acting craft which is the basis of everything. Talent is what we have from God. Craft is something we can develop, he said. Having graduated, I worked full-time in Warsaw repertory theatre companies for many years. I was part of the Na Woli Theatre company led by Tadeusz Łomnicki. I performed at the National Theatre in high-profile productions by the legendary director Adam Hanuszkiewicz. But it wasn't enough for me to be just an actor. I wanted to create my own productions. Over the following years - until 1996 – I was able to fulfil my dreams, including as a director, under Janusz Warmiński - a wonderful man, former, longtime director of the Ateneum theatre company. Years later, I decided to carry on what Warmiński did for me at the Kamienica, along with my wife, actress Justyna Sieńczło. PM
Is the Kamienica your dream come true? It takes a long time to build a boat, you then launch it and it floats. But you need a crew to make it happen. 15 years ago I found a magnificent 100 year old house at 93 Solidarności Avenue in Warsaw. Out of respect for this building, I called my theatre company Kamienica (which means tenement house in Polish ed.) because it is housed inside a building which PM
70 polish market
miraculously survived World War II. The Kamienica is a gift of human kindness. In the first few years, the city of Warsaw and the Ministry of Culture and National Heritage helped me a lot in the construction of this place. Dozens, if not hundreds, of private people also helped, which I am eternally grateful for. Then I picked the boat’s crew. I had my ups and downs, it was probably because I lacked management experience. But today my company is a great crew without whom I wouldn't exist. We are also blessed with a wonderful, loyal audience. A theatre company succeeds when audiences fill the house. Fortunately, there is no problem with that. The feedback we get from them is very important. They come here because they think it is a place which is entertaining, educational and alive. The Kamienica is a place you take full responsibility for, both from the artistic and business point of view. It’s a private theatre company, which means that the commercial side does matter. I have no problem combining the role of an actor, director and business manager. I treat everything as a task I need to perform. A task for the host of this place. From the very beginning, the Kamienica has been more than a traditional theatre company. We create a home-like space where audiences and actors are in close contact with each other. We want to give the place a special local feel. I feel very much at home in Warsaw, the city where I was born. The theatre has three stages of different sizes (one large, and two small ones) for very different productions. My unchanging rule is to put on plays which don't take away your will to live. In my opinion, the theatre is there to brighten up your world. It’s what you can say about good literature, music, songs and paintings. When it comes to our activities, three trends prevail. One is comedies and light dramas. Another one is social dramas, which help us fulfil a public mission. Then come our public activities. "Share and help" is the main idea behind the Atut Foundation. Our theatre company hosts a number of events organised for those in need, for example for the homeless. Besides, the Kamienica Theatre is a perfect venue for corporate events, receptions, and other events. The events we organise are appreciated by our clients because of the unique setting, ambiance and comprehensive services we provide, including our own original catering. PM
What are the highlights of this season? I enjoy putting on new productions, because it's a really busy season for us. It kicked off with "Bluff" directed by Marcin Perchuć, which is about working for a big corporation. One of the most important premieres is the play "Omnipotent Online" by Wawrzyniec Kostrzewski, who has also directed the production. It is addressed to younger audiences. We want to show them what is happening on the web, how destructive it can be. Last month saw the premiere of an English comedy about marital problems, PM
Debbie Isitt’s "The Woman Who Cooked Her Husband," translated by Elżbieta Woźniak. Starring Dorota Chotecka, Michalina Sosna, Marta Chodorowska and Jacek Lenartowicz, the production is directed by Tomasz Obara. The show "Let's start again" has won rave reviews for Aldona Jankowska and Tomasz Sapryk’s parts. Another very well received production is a one man show by Piotr Gąsowski entitled "Women are from Venus, men are from Mars." For our 11th anniversary we are working on an excellent Polish comedy, "The Phantom of the kitchen," directed by Tomasz Sapryk. It is by Janusz Majewski, the acclaimed Polish film director who this time appears under the nickname Patrick G. Clark. Scheduled for March, the production will feature Maria Pakulnis, Jerzy Bończak, Krzysztof Kiersznowski, Michał Piela and Tomasz Sapryk. It is impossible not to ask about the role of sponsors in such a private venture which also plays a public mission. Are they open and willing to support you? Running a private theatre company is a challenge. The monthly running cost is PLN 350,000. I don't get any subsidies from the state or the city of Warsaw. I only have one platinum sponsor, Orlen. But it is enough to pay the rent. As I’ve said, we produce gritty social dramas, we are involved in the promotion of Warsaw. So I would like to see that such activities are appreciated by sponsors. I'm looking for potential partners, but it's not easy. PM
They say that spending on culture only "generates costs" instead of being an investment. But culture is part of the economy and it means so much for society. Why do so few people understand that? As you say, it is a very close relationship. Culture is very tangible, but only when it is based on real craft. Let me repeat: “in Poland categories are in a state of shameful chaos.” PM
A new chapter in the life of the Kamienica project is KamArti - a vocational school for secondary school leavers run by the theatre company. It is the only school of its kind in Poland which provides training in intermedia projects. So it’s about learning a craft, once again. It is another, this time institutional, premiere of the season. It is my brainchild - a dream come true to be able to launch the KamArti school of artistic crafts at the theatre. The school has been founded with the support of the Danish Velux Foundation, as part of a grant programme for the development of vocational education. In this two-year school, young people will be educated in the fields of multimedia, light and sound. We have really great facilities and good instructors, and there is a shortage of qualified technicians in these three fields on the market. Young people will also learn art history and visual arts. We want graduates to have a welldeveloped artistic and aesthetic worldview to know what painting and light are all about, and how all of this works in a theatre production. • PM
2-3/2020 polish market
POLONIA PALACE HOTEL a symbol of Warsaw
PAWEŁ LEWTAK, General Manager of the Polonia Palace Hotel, talks to Jerzy Mosoń. We meet at the Polonia Palace. The taxi driver knew where to take me right away, without having to consult his sat nav. This hotel is a bit of a landmark, isn’t it? The Polonia Palace Hotel has operated in the very same spot, right in the centre of Warsaw, since 1913, when it was built by Konstanty G. Przeździecki. In the minds of Warsaw residents, our building has always been here - they remember it from their childhood, from family stories, pictures and postcards. For many Warsaw residents it is a symbol. Many guests, business clients and employees tell us that and share their stories with us. It is touching, but we also have a sense of responsibility it entails. Without a doubt, we stand out among the modern buildings in the area with a fine, historic facade which miraculously survived WWII and subsequent historical changes. PM
You are a historic hotel, but on entering the elegant lobby lined with palm trees and filled with daylight, you can also see that the building is modern, light and stylish. How did you manage to blend the historic and the contemporary? Analysing the opinions of guests, listening to their praise for our interiors and the ambiance, I have a feeling that we are successfully combining the classical feel with modernity. In 2004 the hotel was reopened after a general refurbishment which lasted three years. It was a huge financial, architectural and logistical undertaking. It was then that we built the glass-roofed lobby which adds a friendly feel for guests and is a pleasant meeting place. We all like it very much. Guests often meet here for business, but also relax and take pictures against our fresh floral arrangements. We take care to strike a balance between the historical character of the hotel - we are a historical landmark after all - and modern amenities which guests expect from this kind of facility. Above all, we want everyone to feel comfortable - both the guests who stay here, and their friends who visit them, conference clients, restaurant and bar guests, as well as our staff. PM
72 polish market
Having such a splendid history which you cherish, how do you compete with modern, innovative hotels, a lot of which have sprung up in Warsaw in recent years? We are very fortunate that our guests and business clients come back to stay. They value not only our location, convenience, modern solutions, free Wi-Fi and great cuisine, but above all, the service we provide. We pride ourselves on it, and we are proud of our employees - many of them have been working for us for years. During this time they take part in training, get promoted, change departments, but they remain with us, and continue to provide services at the highest level. Such continuity is now rare, and our guests value it very much. At the same time, we are constantly looking for new talent, people who can add a unique touch. We invest in both young staff members and those who are willing to advance the professional experience. As a result, we have a very professional, diverse and efficient team of people who enjoy working together and are genuine people persons. This is the key to our success. Imposing interiors and modern amenities are not enough and do not guarantee that guests will come back, that they will be willing to share their opinions about us on the Internet, recommend us to friends and business partners. It is our staff who make guests feel welcome - not only because they will be efficiently served, but above all because they will be warmly received at the reception, in a bar or restaurant. They will be listened to and remembered. PM
I once stayed in a charming hotel in Scotland near a famous whisky distillery. The hotel bar featured an amazing selection of liquors. But neither all the whiskies, nor its fine cuisine, were it biggest assets. The amazingly comfortable beds were the main
attraction. How important are practical details in the hotel industry today? It is a very interesting observation which coincides with the reviews of our guests. They often praise our comfortable beds, hypoallergenic bedding, rich and varied breakfast options, and soundproof windows - which is very important in a hotel located in the very centre of Warsaw. It is important not only for a visitor, but also for a businessman who needs to rest before the next meeting. We listen to our guests, follow market trends and adapt. Thanks to their suggestions, a new event space has recently been developed, which is an extension of our amazing Ludwikowska Ballroom. We have redesigned a 100 square metre space on the ground floor, overlooking Jerozolimskie Avenue, where you can conveniently organise a business meeting, after-party, cocktail reception and any other event, a wedding ceremony, for example. Details were important here: a design which would refer to historical interiors, the right kind of materials, decorations, curtains and fittings. Everything mattered to create a stylish, classic and place which would fit the ornate, exclusive Ludwikowska Ballroom. We have named this place the Ludwikowska Lounge - and we want our guests to feel good, at ease, while at the same time noticing that it is part of our history. There is a growing market trend for hotels to focus either on business guests or tourists. In which direction is the Polonia Palace going? Our guests are those who travel both on business and as tourists, both individual travellers and groups. Due to the business nature of the hotel, its ideal location in the heart of Warsaw, ten functional conference rooms of various sizes, as well as dedicated PM
cuisine, we are popular with the meetings, incentives, conferences and events (MICE) sector. Warsaw has been promoting itself as a congress and conference destination for many years, so everyone benefits, hoteliers too. From the very beginning, the Polonia Palace has been a well-known and appreciated meeting place and a prestigious event venue. Our experienced MICE department knows the market, customers and their needs, as well as market trends perfectly well. At the same time, it is flexible, efficient, friendly and professional. Clients know they can rely on us, entrusting us with their events - they do not need to worry about anything, we often anticipate their questions, we build good relationships, which then translate into successful events. Our location is also appreciated by tourists who admire the views of central Warsaw, the proximity of cultural and entertainment attractions. They are happy with public transport options. But above all, everyone appreciates our unique character. We are not part of a hotel chain, we operate independently, and thanks to that we can be proud of how we stand out among the rest. Guests often pay attention to this - they are interested in the history of the building, they ask where the hotel name came from. They look at old photographs, they send out postcards featuring the hotel faĂ§ade which are available free of charge at the reception. The growing interest in our history and tradition of hospitality, which we do our best to keep up, has prompted us to publish the "Kurier Polonia" magazine in the style of old newspapers. It presents the history of the hotel up to modern times, featuring photos, trivia and unknown facts. Guests are delighted to get a complimentary copy, and we are proud to keep up our extraordinary heritage. â€˘ 2-3/2020 polish market
March 18-19, 2020 | Warsaw
NEW IDEAS FOR GOOD OLD LOYALTY
Customer loyalty is maintained by those who take a fresh approach to it every day. The PLanet360 ° Loyalty Forum will be held in Warsaw on March 18-19, 2020.
The programme of the event was jointly developed by directors of marketing, loyalty programmes and experts from agencies which specialise in building, developing and A new event on the market, full of fresh ideas monetising relations with B2C and B2B clients. for good old loyalty, providing answers to the most important problems faced by the retail and The Forum will be attended by representatives of retail service sectors in the field of broadly conceived chains and the service sector, including: Carrefour, RTV Euro AGD, SPAR, Polomarket, Auchan, Żabka, Eurocash Group, consumer loyalty. It will provide an overview eObuwie, Leroy Merlin, Kross, UPC, Decathlon, Etam, Agata, of trends, innovations and will offer plenty of Intersport, Komfort , IKEA, Amrest, PKN ORLEN, Credit inspiration. It will be an opportunity to talk to Agricole, Citi Handlowy, PZU and Idea Bank. experts in the “we care to share” formula.
NEW: Tools & Technologies Zone, Networking Zone, Problem Solving Zone, AfterEvent Inspirator Zone.
1. Problem Solving Zone The forum is prepared in line with problem-solving principles: we discuss the challenge and look for a solution in seven areas: - Real insights driving loyalty in omnichannel; - Customer acquisition in omnichannel - B2C & B2B loyalty programmes in omnichannel; - Beyond classic programmes: engagement & experience & emotions; - Cross / up selling based on loyalty & relations; - Data driven loyalty & relations; - Customer retention.
2. AfterEvent Inspirator Zone This will be the only such place on the Polish conference market. Specially for Forum participants, we provide a space for discussions and conversations with loyalty experts following the event. It will be an opportunity to consult with managers who specialise in many different areas of loyalty.
LOYALTY PROGRAMME - A PROVEN WAY TO ATTRACT AND RETAIN CLIENTS Every year, loyalty programmes undergo a genuine revolution due to changes in Participants’ needs, shopping trends, and new digital technologies which make loyalty in business more and more profitable for brands.
he loyalty programmes market in Poland is constantly evolving. As confirmed by the ICAN Institute 2019 "Sales Trends" study, last year alone as much as 83% of sales leaders exceeded target sales plans by 20%, thanks to investment in loyalty programmes. Over the past three years, the number of companies which develop their loyalty programmes has increased from 45% to 65%. These figures inspire optimism for the future. But does every programme formula stand a chance of succeeding?
NO TARGET, NO GAIN
“When making a decision to invest in the development of a loyalty programme, organisers should precisely define its goal and performance targets,” says Magdalena Bednarz, Product Line Business Manager at Edenred Polska. Based on observations, these usually include: • sales increases, • acquiring new loyal clients, • obtaining information on the shopping habits of programme participants, • increasing brand awareness and image building activities. On the B2B market, loyalty programmes are addressed to distribution channels and sales assistants. Loyalty programmes have always been present in the FMCG, automotive and telecommunications industries, but they are increasingly gaining popularity in
MAGDALENA BEDNARZ, Product Line Business Manager
the agricultural, construction and financial sectors. Currently, they are used not only by large brands, but also by smaller companies. The duration of a programme should closely reflect the company's sales strategy. As an element which drives sales - the programme can be run throughout the year, or only seasonally.
A REWARD EVERYONE REACHES FOR
Traditional programmes have accustomed us to one formula in which Participants receive points for each contract they have won or the sales volume. In return, they receive a bonus in the form of a bank transfer, discounts, and material rewards. With an eye to digitising and improving the logistics of the programme, the organisers have opened up to innovative solutions, offering participants a prize in the form of prepaid bonus cards. Interestingly, in Poland one in two loyalty programmes is based on cards.
PERCEPTION IS REALITY
The growing interest in prepaid bonus cards is evident in the fact that, according to a Mastercard 2019 study, over 50% of Polish consumers already uses various forms of mobile payments. The number of users of mobile services, including Apple Pay and Google Pay™, is also growing. Polish consumers reach for mobile services ten times a month on average, which has
a positive impact on the development of the e-commerce industry. And since the retail market has already been digitised, it is worth taking advantage of this trend in the loyalty business as well. Prepaid cards offer programme organisers a catalogue of unlimited rewards, which are available "here and now," in line with the participant’s needs. Cards can thus be flexibly adapted to a given industry. Their scope can also be narrowed down if necessary. Card handling is not labour-intensive an order usually takes 72 hours to process, and the card is valid for a minimum of one year. This allows the programme organiser to issue cards to participants at the beginning of the programme, and then top them up with different amounts of money at any given moment, depending on the results they have achieved. The card should stand out in the wallet. It is worth placing the organiser's brand features on it, for example the company logo. An attractive design is eye-catching, and should be consistent with the message of the programme. “As you can see, many factors influence the success of a loyalty programme. There is no one proven formula which can be flexibly adapted to the needs of each client. For my part, may I suggest that any new idea, even a very complex one, should be discussed with an adviser beforehand, which will help companies reduce investment losses,” says Magdalena Bednarz. • 2-3/2020 polish market
MOBILE APPLICATION AS A MODERN TOOL TO REACH THE CLIENT
raditional methods of boosting customer loyalty are slowly being replaced by new technologies. Nearly 95% of Polish consumers are mobile telephony users, while 75% of them declare access to the Internet. At a time when the smartphone has become a gadget everyone carries around, mobile applications turn out to be an excellent medium for boosting consumer loyalty. Brands such as Żabka and Rossmann are well aware of it, offering dedicated applications to their clients. However, these are solutions which work fine for rich, large brands which already have a large client base. But let's take a step back. How to convince a potential client to use the offering of a particular brand, and not another one? What about companies which cannot afford to implement expensive systems? What tools are useful for malls and shopping centres which house many different brands?
TAKE ADVANTAGE OF THE POTENTIAL OF FREE MOBILE APPS If you manage a sales brand or shopping mall, you don’t just want to attract new customers, but also to make them loyal to this place. Place a dedicated tab in a free, existing shopping app which reaches hundreds
of thousands of potential clients. Thanks to this tool, you will not only reach new customers with information about your business, but you can also use it to launch a loyalty programme for your clients. You don't need to pay to build a dedicated system, just use a ready-made solution. With its help, you can win new clients, automate receipt lotteries, send out event notifications, offer discount coupons, and enable customers to collect loyalty points for their purchases. Sounds great, doesn’t it?
IS SUCH A TOOL OUT THERE? One of the most exciting free apps for this kind of activity is the popular PanParagon (MrReceipt) app (almost 350,000 downloads). The solution, which was originally only intended to store receipts and control spending, has quickly developed into a comprehensive shopping application. How does it work? PanParagon allows you to scan and store receipts and loyalty cards. The receipts are automatically assigned to different categories, which allows you to generate transparent spending statistics. The system is based on OCR text recognition software, enabling automatic conversion of scanned documents into digital form. This enables the application to independently extract key information from receipts, including products, name of the store, purchase date and amount paid. Additional features, such as coupons and promotional leaflets, allow users to access the most interesting offers in the most popular stores. This simple free shopping app carries great potential not only when it comes to reaching the client, but also securing his loyalty. It is a communication channel with 350,000 consumers interested in shopping, bargains and controlling the household budget.
HIT THE JACKPOT Nowadays, the biggest marketing challenge is to reach a precisely defined target with the help of an optimally tailored message. New technologies make it possible to accurately specify the target group. In the case of the PanParagon app, the users themselves provide information. So far some 2.5 million receipts have been entered into the system. It is a huge amount of sales and marketing information for brands and companies: who the users (as well as competitors' customers) are, where they shop, how much they spent, what else they put in their shopping trolley, etc. Based on this data, it is much easier to reach customers with a product message, or to design a loyalty programme • for specific consumer preferences.
76 polish market
PODRÓŻE PEŁNE EMOCJI
Tomasz Sanecki Project manager e-mail: firstname.lastname@example.org tel. (+48) 664 080 288
LOYALTY OF THE FUTURE –
TO BE INVOLVED IS MORE IMPORTANT THAN TO OWN
t a time when virtually anything can be purchased, unique experiences and priceless moments are what really counts. It is them, and not the features of a given product or service, although these must be of the highest quality, that can set the brand apart from the competition. To build a leadership position you need an emotional bond with the customer and his loyalty. Only a lasting relationship, identification with the features the brand represents can increase the chances that the customer will be back for more. Keeping a loyal customer is also 6-7 times less expensive than getting a new one. The investment trend in loyalty programmes is evident both in retail trade and services, including banking. Studies show that 7 out of 10 adult Polish consumers use various types of loyalty programmes. On average, a single consumer is registered in almost 9 programmes at a time. According to the ARC “Monitor of Loyalty Programmes 2019", there are more than 100 consumer loyalty programmes in Poland. However, more than half of them do not meet customer expectations. Why? Because today it is not just about collecting points over the years in anticipation of a prize or discount. The consumer expects commitment, he expects his needs to be noticed and to be placed at the centre of the brand's activities. What should the loyalty programme be like these days? Above all, it must be priceless for the consumer. It
78 polish market
must offer what cannot be bought, something which is worth waiting for. What could it be? For example, the Priceless Moments programme run by Mastercard rewards loyal consumers with the opportunity to pursue their passions. A ticket for a special concert with a backstage option to meet your favourite artist, a ticket to a film festival or a photo session with a selected brand. This opportunity to make dreams come true attracts customers and motivates them to be faithful to brands which offer them these opportunities. The loyalty programme of the future must be tailored to the needs of a specific consumer and put him in the focus, in line with the YOUniverse trend. The offer needs to be personalised and in line with the individual preferences of the programme participant. Research indicates that a loyalty programme which Polish consumers regard as personalised, makes them four times more satisfied than other programmes. “According to a Mastercard study, the vast majority of Polish consumers (66%) has their favourite passion, which makes them happy and allows them to develop, expand their knowledge and acquire new skills. That is why we offer Mastercard users benefits which stem directly from their interests and passions. These are often unique experiences, which remain out of reach for the rest of society,” says Marcin Klimkowicz, director of loyalty solutions and CRM at the Mastercard Europe Polish branch.
The programme must be simple and convenient to use, points should be collected during daily consumer activities. That is why it is convenient to use the bank card as a loyalty card. After all, you always carry it with you (if not inside your wallet, then virtually as a smartphone app) to pay for daily shopping. It is also important that you can always earn points and rewards - both online and offline. In a Mastercard and Harvard Business Review Analytic Services study, as much as 53% of company heads has indicated multichannelling and mobility as the basic success factors of loyalty programmes within the next five years. It is important not only in what way you collect points, but also how fast. One of the main reasons for customers leaving loyalty programmes is that they need to wait for gratification for too long. In the Priceless Moments multi-partner programme, the consumer can easily find a place to receive a large number of points for a transaction. Each cashless transaction carried out by one of 80 retail partners from 19 different retail categories, is rewarded. This significantly reduces the time the customer needs to wait to collect the first prize. This motivates the customer to set another goal and strive to achieve it. And in this way the goal of the programme is achieved: the customer involved in interaction with the brand based on emotion decides to stay with it for longer. •
BEER BREAD Pasol-Paco President Katarzyna Jarosz Lenkiewicz
According to Prof. Halina Gambuś of the Department of Carbohydrate Technology of the University of Agriculture in Krakow, bread should provide a significant amount (about 25-30%) of the body's daily energy needs. The Institute of Food and Nutrition in Warsaw suggests that wholemeal wheat and rye bread should account for 15% of the daily portion, light wheat bread 20%, and mixed rye-wheat bread or light rye bread 65%.
ess and less bread is eaten in Poland. Between 2010 and 2016, its consumption fell by as much as 25%. In 2003, the average Polish consumer munched through 120 kilograms of bread, and in 2017 just 45 kilos. Although industry experts dispute these statistics, which only cover households, the fact remains that Polish consumers eat less bread than they used to. Against this background, a welcome example of bread promotion are the activities of the Pasol-Paco bakery based in the town of Świdnica, a member of the Polish Ecology Association. Meetings are organised for consumers
with clinical dietitian Agnieszka Podgórska, a food and human nutrition technologist who in 2018 received the title of Dietitian of the Year in Lower Silesia. She reveals secrets of the best bread and points out the differences between bread containing food colouring to make it look darker, and genuine sourdough rye bread. “You shouldn’t give up traditional bread, and certainly not in favour of highly processed bread-like products, such as crispbread, wafers and other bread substitutes, which are widely promoted by industry. High-quality bread contains a large amount of microelements, vitamins and other biologically active substances, such as lactic acid, alkaloids and phytoestrogens, which these substitutes hardly contain,” says Agnieszka Podgórska. Consumer education campaigns include competitions for the best home-baked bread organised by the Świdnica bakery. Bread workshops are organised at picnics, and a series of articles is published in the local press, entitled "Bread for the hungry mind." These Pasol-Paco activities have won the support of local inhabitants. The bakery has won a number of awards and distinctions since it was founded in 1991, including for the corporate social responsibility for the bakery’s original owners, the parents of the current President Katarzyna Jarosz Lenkiewicz. Helena and Jan Jarosz decided to share bread with those in need. When in 1997 Lower Silesia was hit by catastrophic flooding, for two months the Pasol-Paco bakery provided bread to thousands of people affected by the natural disaster free of charge. The Charity Development Academy awarded the couple the title of Benefactor of the Year. “When, in 2010, my husband and I took over the bakery from our parents and focused on development, we decided to carry on the idea of helping those in need,” says Katarzyna Jarosz – Lenkiewicz. “The company keeps winning prizes for helping others almost every year. The 2/2020 polish market
ORGANIC FOOD most important of them are the Lower Silesian Economic Griffin, the CSR Swallow, Friend of the Disabled, Świdnica Griffin - all of them have been awarded for corporate social responsibility. Our CSR activities are appreciated by Świdnica residents. In 2015, in a 'Panorama Świdnicka' newspaper poll, I received the title of Personality of the Year. Over this period, the bakery has been repeatedly awarded prizes for the dynamic development of products. Among the awards are the Forbes Diamond for the fastest growing company in Lower Silesia (three times), Business Star award for the best family company in the Lower Silesian Economic Poll, the Mouflon award for the best regional product - wholemeal bread containing whole grains, and the Business Eagle prize awarded by the 'Wprost' weekly magazine,” Katarzyna Jarosz-Lenkiewicz adds. Bread is baked according to centuries-old recipes and methods. “In 2018, having trained a technologist and master bakers, and having conducted numerous technological tests and implementations, we received a BIO certificate for our products,” says president Jarosz - Lenkiewicz. “We also refined an old recipe for making bread using local beer. In 2019, we decided to reinvent Świdnica bread in a BIO version for the Master Baker competition. Our bread turned out to be the best. We won the title of Master Baker 2019. We are soon opening a cosy, local bakery in the Świdnica street market, where you will be able to buy our BIO breads (including the beer bread), drink fine coffee, and have an all-natural bread sandwich.” Master baker Czesław Meus of the Polish Ecology Association, an active promoter of a healthy diet and organiser of many bread workshops, particularly addressed to younger consumers, is convinced that the production of BIO bread can check the decline of Polish bakeries. “Our Association runs
Krzysztof Bryjka, winner of the Master Baker competition
80 polish market
BIO bread baking workshops at various street market events, where consumers complain that it is impossible to buy BIOcertified bread in bakeries. The Polish Ecology Association is keen to strike up partnership with bakery owners who would like to produce organic bread and rolls. In every bakery it is possible to make organic bread, but you need to follow certain procedures. There are about 1,000 organic food stores in Poland, not counting supermarkets, where you can also sell BIO bread,” says Czesław Meus. The Świdnica Pasol-Paco bakery does not need to be convinced to bake BIO breads. It has already built a brand in • this market.
NUTRITIONISTS AND EXPERTS FROM THE WARSAW INSTITUTE OF FOOD AND NUTRITION AND THE US DEPARTMENTS OF HEALTH AND AGRICULTURE AND THE FOOD STANDARDS AGENCY CALL FOR THE INCLUSION OF WHOLEMEAL AND RYE BREAD IN YOUR DAILY DIET.
Left to right: Józef Sadkiewicz, Krzysztof Bryjka, Katarzyna Jarosz Lenkiewicz, Czesław Meus
"Polish Market” is a prestigious English-language magazine published since 1996. In its pages, it promotes the Polish economy, businesses,...
Published on Feb 21, 2020
"Polish Market” is a prestigious English-language magazine published since 1996. In its pages, it promotes the Polish economy, businesses,...