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OCCASION This publication has been made available to the public on the occasion of the 50th anniversary of the United Nations Industrial Development Organisation. DISCLAIMER This document has been produced without formal United Nations editing. The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations Industrial Development Organization (UNIDO) concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as “developed”, “industrialized” and “developing” are intended for statistical convenience and do not necessarily express a judgment about the stage reached by a particular country or area in the development process. Mention of firm names or commercial products does not constitute an endorsement by UNIDO. FAIR USE POLICY Any part of this publication may be quoted and referenced for educational and research purposes without additional permission from UNIDO. However, those who make use of quoting and referencing this publication are requested to follow the Fair Use Policy of giving due credit to UNIDO. CONTACT Please contact [email protected] for further information concerning UNIDO publications. For more information about UNIDO, please visit us at www.unido.org UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Vienna International Centre, P.O. Box 300, 1400 Vienna, Austria Tel: (+43-1) 26026-0 · www.unido.org · [email protected] Distr. 2060~ RESTRICTED FMD/R.5 4 March 1994 UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION ORIGINAL: ENGLISH , • .f-'1- r :'~4_~ tl-L"'-1'~" • UNIDO INDUSTRIAL CO-OPERATION AND INVESTMENT PROMOTION SERVICE IN WARSAW, POLAND US/UT/lrirf/90/092 POLAND Report of the evaluation mjssjon • Prepared in cooperation with the Government of the l\.epublic of Poland and the United Nations Industrial Development Organization • This documen1 hu no1 been ediled. V,Q4-21472 TABLE OF CONTENTS SUMMAPY OF CONCLUSIONS AND RECOMMENDATIONS 1 EXPLANATORY NOTES 2 INTRODUCTION 3 a. Background of the project 3 b. The ICIPS in the UNIDO context 3 c. Outline of Poland's policies and procedures regarding investment in developing countries and foreign investment in Poland 3 d. Justification of the evaluation 4 c. Organization and proceedings of the evaluation 4 I. PROJECT CONCEPT AND DESIGN 5 A. Socio-economic and institutional context of the project 5 a. Economic developments in Poland 5 b. Development problems 8 c. National infrastructurc 9 d. Other related technical cooperation activities 9 B. The project document 10 II. PROJECT IMPLEMENTATION II A. Delivery of inputs 11 a. Government/UNIDO Inputs 11 b. Project personnel 11 c. Project monitoring and steering 12 B. Implementation of activities related to investment in developing countries 12 a. Selection of potential partners and projects 12 b. Promotion of businesi; contacts 14 c. Projt.ct promotion fora in developing countries. Outcon: c 14 d. Country presentations to developing countries and DC presentations to Polish businesses 16 e. En!ries in the UNIDO Newsletter 16 r. Status of projects under negotiation 18 g. Poland/China co-operative programme 18 c. Implementation of activities related to foreign investment in Poland 18 a. Selection of potential partners and projects 18 b. Project promotion meetings. Ouccomc 19 II 19 c. Promotion of business contacts 20 d. Delegate's programme e. Briefings for foreign executives 20 D. Implementation of activities related to training E. Other activities 26 III. PROJECT RESULTS A. Outputs 26 28 8. Achievement of project objectives c. Conlribution to the achievement of the development objectives 29 30 IV. CONCLUSIONS v. RECOMMENDATIONS :H 32 VI. LESSONS LEARNED •••••••••••••••••••• List of annexes I. Terms of reference of the evaluation II. List of persons met Ill. Joint ventures established in Poland IV. Joint ventures established in developing countries V. Financial annexes with budgets of ICIPS and of selected projccls VI. Organigram of the ICIPS and the promotional programme VII. Business conferences VIII. List of publications and training materials Acknowled&cment The mission wishes to acknowledge the support and information extended by the IC/PS personnel. LoKistical srtpport wa.f also excellent. Special thanks go to Ms. J. Urbanowska. Investment Promotion Expert, resouru person w the mission, for all the help and time devoted to the mission, which corresponds to her commitment to the goals of tire office. 1 SUMMARY OF CONCLUSIONS AND RECOMMENDATIONS This joint evaluation mission was conducted before the completion of a four-year period of the Industrial Cooperation and Investment Promotion Service (ICIPS), ending 30 June 1994, to verify compliance with targets and recommend fu1ure direction. The mission found that the ICIPS has carried oul its activities with distinction and surpassed the targets indicated in the projecl documenl. It contributed, furthermore, to 1be process of transformation of Poland into a market economy. Among the importc1nt outputs produced by the Service, we can single out the outward promotion of 17 projecls in developing counlries, lotalling around USS 22 million of investment, and the inward promotion of 68 projects wi1h a total investment of over USS 700 million. The Service, because of its experience, continuity and professionalism of activities and excellent personal and institutional relations, has become. for many Polish and foreign companies and inslitutions, a regular and reliable partner for international business relations. The Service staH is qualified, bard-working and highly motivated. At its establishment in 1983, the Service was the only one to deal with investment promotion activities. At present a number of institutions is involved in similar activities of the Service. However, because of the amount of work still to be done in Poland, the mission did not find undesirable overlaps, and there seems to be room for all of lhem in the foreseeable fulure. The mission recommends the conlinuation of the Service for a pe:-iod of five years and to de,•elop its activities according lo the following five main groups: .. Industrial cooperalion and promolion of investment in developing countries including selected countries of 1hc former USSR; .. Elaboralion of strategics and inslrumenls (credits, guarantees) to facili1ate inveslment abroad; .. Assistance lo selected neighbouring countries of the former USSR in eslablishing their own investmcnl promotion syslems; " Support the tran~formation of the Polish economy; .. lnveslment promolion into Poland with emphasis on inslitulion building. 2 EXPLANATORY NOTES The units of measure indicated in this report are those sanctioned by the International System of Units (SI). If not otherwise indicated, the l.erm 'dollar', 'USS' or 'USO' refers to the U.S. dollar. List of acronyms BRE Export Development Bank CIS Commonwealth of Independent States cso Central Statistical Office DC Developing Country EBRO European Bank for Reconstruction and Development EU European Union FCPP Foreign Cooperation Promotion Programme ICIPS Industrial Cooperation and Investment Promotion Service IDF Industrial Development Fund IFC International Finance Corporation IMP International Monetary Fund IPPM Investment Project Promotion Meeting IPS Investment Promotion Service JV Joint venture MFER Ministry of Foreign Economic Relations MIS Management Information System MIT Ministry of Industry and Trade MOFA Ministry of Foreign Affairs PCC Polish Chamber of Commerce PPFP Project Preparation Facility Programme PZI Polish zloty The value of one U.S. dollar in zlotys during the period covered by the report, m accordance with the United Nations operational rate of exchange, is as follows: July 1990 PZI 9,310 January 1991 9,310 July 1991 11,450 January 1992 10,900 July 1992 13,300 January 1993 15,800 July 1993 17,600 January 1994 20,700 3 INTRODUCTION a. Background or the project 1. In July 1983. the UNIDO Industrial Cooperation and Investment Promotion Sen-ice in Poland, hereinafte; referred to as ICIPS or Service, started operations for a three· year period with an outward orientation, namely, promoting cooperation between Polish enterprises and institutions with others in developing countries, including the development of joint ventures in these countries. II was extended in 1986 and again in 1989 for further three· year periods. 2. With the political and economic changes started in 1986, Polish enterprises and institutions became increasingly involved in adapting to the new economic environment and consequently less interested in operations in developing countries. The Service ad.ipted quickly and proactivcly to this new environment and during 1986·89 started to be involved in promoting investment and cooperation into Poland • not foreseen at the outset of the Service • and undertaking a number of activities which facilitated the transition of the Polish economy to market conditions. Among these activities we can mention the promotion and undertaking of pre·investmcnl studies and information and assistance on industrial credit. 3. The Polish economy is sizeable, with a GDP of around $80 billion. Its transformation from a rigid centrally planned to a market economy • often encompassing liberalizing features not experienced in the West to the same extent • is no easy feat. This was further complicared