Bulletin PTE No. 2/2014 Special Edition

no. 2/2014 Special Edition

ISSN 1507-1383

BulletinPolish Economic Society ISSN 1507-1383

Headqurters of the Polish Economic Society, 49 Nowy Swiat Street, Warsaw Polish Economic Society 200 years of tradition Bulletin PTE No. 2 (65)/2014 I 1 Polish Economic Society

Contents

Introduction 4 Excerpts from the Statute of the PTE 5 Polish Economic Society as a Public Benefit u 6 Organization – Elżbieta Mączyńska 6 An outline of the history of the Polish Economic Society – Artur Pollok 8 Thursdays at the Economists – Elżbieta Mączyńska 11 Economic knowledge competition – Artur Pollok 15 20 u Forum of Strategic Thinking – Elżbieta Mączyńska 18 International Cooperation of the Polish Economic Society – Stanisław Rudolf 20 Publishing activities of the PTE – Artur Pollok 24 Activities of Branches of the Polish u 26 Economic Society – Stanisław Rudolf 26 The PTE Research Council – Bogusław Fiedor 30 The 9th Congress of Polish Economists – Stanisław Rudolf 32 There is no single correct theory of economics – Elżbieta Mączyńska 35 The 9th Congress of Polish Economists – summaries of selected papers – Marek Belka, Andrzej Wojtyna, Marek Ratajczak, Andrzej Sławiński, Grzegorz W. Kolodko, Jerzy Wilkin 39 Forum of Presidents of Economic Societies – Stanisław Rudolf 46 Polish economists known in the world u 48 – Jan Toporowski 48 The Guardian on the Polish economist 52

News 53

The Investment Future of Poland 55

Authorities of the society 56 Memorial on the intellectual crisis – Jerzy Kleer 58

Questionnaire economist – Stanisław Rudolf 59 59 u

2 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

Ladies and Gentlemen Bulletin PTE For the first time the Polish Economic Society (PTE) has prepared Free magazine the Bulletin in English and hence, it is different than those directed to our members in the 23 PTE Branches throughout Poland, as well as Publisher: to students and teachers of economics, business practitioners, etc. Zarząd Krajowy Polskiego This Bulletin is addressed mainly to foreign readers, who do not Towarzystwa Ekonomicznego know our Society. The main objective of this publication is to pro- 00-042 Warszawa, vide information about the nature and activities of the PTE. Af- ul. Nowy Świat 49 ter a general presentation of our Society and its history, we present Tel.+48 22 551 54 01, Fax + 48 22 551 54 44 selected forms of our activities such as: Thursdays at the Econo- www.pte.pl mists, the Economic Knowledge Competition, the Forum of Stra- www.kongresekonomistow.pl tegic Thinking, international cooperation, publishing, activities of the PTE Branches, and activities of the PTE Research Council. In

particular, we devote a lot of space to the 9th Congress of Polish President of the National Board: Economists which took place in November 2013. As demonstrated Elżbieta Mączyńska by the history of congresses of Polish economists, they were held in [email protected] highly diverse socio-economic and political conditions, hence the slogans of congresses were kind of a sign of the times. (See: http:// Edited by: www.kongres.pte.pl/kongres/idea-kongresu.html). Artur Pollok, Stanisław Rudolf, Stanisław Gliński, Paweł In addition, the reader will find brief information in the Bulle- Adamczyk, Michał Plewczyński, tin about the Forum of the Presidents of Economic Societies in the and Iwona Dudzik countries of Central and Eastern Europe which was organized by our Society. The Bulletin also recalls the profiles of the deceased Graphic design, DTP: prominent Polish economists such as, Michał Kalecki, Oskar Lange, Studio Ling Brett and Tadeusz Kowalik. Translated by: The Bulletin is addressed to economic societies in other countries, Tadeusz Wejchert and through them to a wide range of economists abroad. Reading the Bulletin should introduce them to the nature and objectives of Print: our activities, as well as their scope and scale and encourage them to sowadruk.pl establish cooperation with us. Both the National Board of the PTE and our Branches are open to such cooperation. The Bulletin is also addressed to economists of Polish origin, who for many years have lived abroad, whether as academics or in business. With many of them we maintain constant cooperation; they participate in our seminars and congresses. Some of them have sent their CVs which we have posted on our website (www.pte.pl). We are very keen on expanding such cooperation and we hope that our Bulletin will contribute to this. This may be scientific, business, or organizational cooperation. At the same time through the Bulletin we encourage you to become interested in Poland and in the changes in its socio-economic situation. Poland owes its economic successes among others to investments. Therefore, in the Bulletin, we present information on the Polish Investments for Development as an institution oriented on measures to intensify infrastructure investment in Poland. We invite you to visit our English website. prof. Elżbieta Mączyńska, dr Artur Pollok, prof. Stanisław Rudolf Elżbieta Mączyńska, Stanisław Rudolf, Artur Pollok

Bulletin PTE No. 2 (65)/2014 I 3 Excerpts from the Statute of the PTE The Polish Economic Society (PTE) is an independent association of economists and is a legal entity. The goals of the Society 3. Publishing, co-publishing and research institutes of the are to: and supporting in other form socio-economic profile, publications on economics 1. Promote the economic 9. Participating in the devel- and other social sciences, thought and contribute to the opment, modernization, and including the “Ekonomista” development of economics dissemination of curricula and magazine, as well as promot- and present its achievements, training in socio-economic ing socio- economic knowl- issues, 2. Improve professional edge through the mass media, qualifications of economists, 10. The dissemination of 4. The Economic Knowl- 3. Focus on the lifelong learn- the principles of professional edge Competition, in coop- ing of teachers of economic ethics and ensuring their eration with the Ministry of subjects, observance, National Education, 4. Inspire and support the 11. Setting up and running activities aimed at the social, 5. Assessment and econom- houses of creative work, clubs, economic, and spatial de- ic expertise and information libraries and reading rooms, velopment of the country in activities in the field of socio- and Internet portals, economic issues, an environmentally friendly 12. Cooperation with state manner, 6. Initiating and conduct- administration and self-gov- 5. Promote economic ing research in the field of ernments, economics and other social knowledge and disseminate 13. Cooperation with sciences, economic culture amongst the national and international as- general public, 7. Awards for outstanding sociations and other entities. achievements in economic 6. Protect professional inter- The principal authorities of sciences and for the imple- ests of economists, the Society are: the National mentation of effective man- Assembly, the National Board, 7. Integrate economists agement methods, from academia and business. the National Audit Com- 8. Setting up and running mission, and the Arbitration The goals of the Society high schools, universities, Board. are implemented through: The Branches are the basic 1. Conventions, congresses, organizational units of the So- conferences, symposiums, ciety, they have legal personal- talks, lectures, consultations, ity. The resolution to appoint and competitions, the Branch Society is passed by the National Board of the 2. Training involving educa- Society at the request of the tional training and profession- founding group consisting of al development in the field of at least 15 people. economic knowledge,

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 Elżbieta Mączyńska Polish Economic Society as a Public Benefit Organization

Polish Economic Society (PTE) is a public benefit organization aimed at disseminating and popularizing the knowledge of economy, the development of economic theory, and its rational use in practice. The Polish Economic Society, created in 1945, is a continuation of over 200 years of tradition of social movement of economists which continued to operate even in the toughest, most dramatic periods of Polish history. This is confirmed by historical documents.

he thoughts and recommenda- bulent changes, gains in importance. Ttions in these documents are an Daily life proves that solid economic important point of reference even knowledge helps one not to surrender 23 October 2013, Professor Amit Bhaduri, University of today, in the current activities of the to the difficulties. Measures for the Jawaharlal Nehru in Delhi, Professor Kazimierz Łaski, PTE. This concerns also the message dissemination of this knowledge are Johannes Kepler University Linz, Austria, “What Has formulated nearly 100 years ago, con- therefore necessary in any system in Globalization of Finance Economic Policy Done it? “ tained in a speech delivered on 1 March which such knowledge is one of the ments of the mission and the place of 1921, by Baron Jan Götz-Okocimski fundamental factors in economic de- economics in shaping the socio-eco- on the occasion of the establishment cision making and rationalization of nomic transformations. Controversies of the of Economic Society in Kra- economic decisions. Deficiencies in concern the practical utility of the kow: “We want to be the eye that sees such knowledge can lead to a variety basic trends of economic theory and wealth slumbering in the country and of severe, adverse events, confirming their relevance to economic reality. the population. We want to be the ear the well-known aphorism that the The crisis has revealed deep failures in that catches general needs and means market has no enemies, but it has many the global economic system, pointing striving to satisfy them. We want to be victims. to the challenges facing economists. the brain that is considering, criticiz- The relevance of this aphorism has Therefore, one can regard as almost ing, and shows the way. However, our been spectacularly confirmed by the as a memento the thought formulated activities will not be only on paper, largest crisis in the post-war period, nearly 70 years ago, in 1946, by the didactic or agitative. We shall do our which started in 2008, in the U.S. and American economist Henry Hazlitt best so that everything we shall say or has not yet, in my opinion, been fully (1894-1993): „The art of economics write shall be turned into action. (...) resolved in the global economy, and consists in looking not merely at the We do not want to be either a school by some economists is regarded as the immediate but at the longer effects or academy; our ambition is to be- first crisis of globalization. This crisis of any act or policy; it consists in trac- come a central source from which all has evolved and is still evolving from ing the consequences of that policy production needs to learn in order not the real estate crisis in the United not merely for one group but for all to fall into stagnation, not wither, not States, to the global financial crisis, to groups.”1 die, and not surrender to the difficul- the economic crisis, and to the debt This sentence is consistent with ties and obstacles”. crisis – still felt today by many coun- the ideas that underlie activity of the It seems that currently the timeli- tries. Polish Economic Society which is re- ness of this message is not only di- The extent and depth of the crisis flected in its statutory purposes. The minishing, but due to the increasing intensify the controversies and are the PTE’s priority task is to spread the complexity of the economy and its tur- source of sometimes extreme assess- economic knowledge, taking into ac-

Bulletin PTE No. 2 (65)/2014 I 5 17 January 2013, the PTE Conference “Effectiveness of bankruptcy proceedings : 10 May 2012 - Professor Jerzy Hausner, the debate at the The results of research, its popularization and application in practice” “Thursdays at the Economists”, entitled “The course on innovation. How to lead Poland out of the developmental drift” count the developmental challenges u Forum of Strategic Thinking and mation on the current activities of the facing Poland. This is all the more im- other conferences and seminars, PTE and one of the forms of promo- portant because unfortunately, Henry tion and popularization of economic u Publishing, among others, books Hazlitt’s opinion has lost none of its in the series “Nobel Prize in Eco- knowledge. This information is also relevance “Economics is haunted by nomics”, presented in detail on the PTE web- more fallacies than any other study site http://www.pte.pl/ . known to man”.2 In 1985, in a similar u Economic Knowledge Competi- Given the characteristics of the vein, Milton Friedman said that eco- tion and other educational pro- current political situation in Poland, nomics is a fascinating discipline, but grams, and the intransigent, sharp, political still insufficiently known, understood u International cooperation. disputes between political parties, and used in practice. “What makes it These projects are more extensively although formulated decades ago, [economics – ed. EM] most fascinating presented further in the Bulletin. the record of 1921, contained in the is that its fundamental principles are The projects are implemented by the statute of the Economic Society in so simple that they can be written on National Board of the PTE and 23 Krakow, remains farsighted today: one page, that anyone can understand Branches in the country and by the “The submission of party and politi- them, and yet very few do.”3 cal disputes to the work of the Soci- Scientific Council of the PTE in col- 4 The following projects implemented laboration with external partners, in- ety is forbidden”. Hence, the Polish by the PTE are focused on disseminat- cluding universities, the Lech Walesa Economic Society is an apolitical ing economic knowledge, understand- Institute, the Polish Federation of organization. This does not mean, ing of economics, and its rational use Engineering Associations, the Asso- however, that in economic matters in practice: ciation of Accountants in Poland, the the Society should not maintain close cooperation with representatives u C ongresses of Polish Econo- Scientific Society for Organization mists, and Management and the Council of of the state and local governments. Scientific Societies. The projects are Such cooperation can promote the u Seminar “Thursdays at the Econ- rationalization of the economy, and omists”, reflected in our Bulletin of the PTE which is an important form of infor- this is one of the main objectives of

1 Henry Hazlitt, Economics in One Lesson, p. 20, http://mises.org/books/economics_in_one_lesson_hazlitt.pdf . accessed on 3 May 2014, (first published in 1946 in New York). 2 Ibid. 3 William Breit and Roger W. Spencer, Lives of the Laureates. EIGHTEEN NOBEL Economists Cambridge, fourth edition, 2004, MIT Press. http://f3.tiera.ru/2/G_Economics/GPop_Popular/Breit%20W.,%20Hirsch%20B.%20(eds.)%20Lives%20of%20the%20laureates.%20Eighteen%20 Nobel%20economists%20(4ed.,%20MIT,%202004)(ISBN%200262025620)(368s)_GPop_.pdfs/ 76-77., accessed on 3 May 2014. 4 Article 5 of the Statute of the Economic Society in Krakow, passed on 1 March 1921. 5 http://quoteinvestigator.com/2010/05/26/everything-counts-einstein/ , accessed on 3 May 2014.

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the PTE. Hence, the PTE is a forum ily count; everything that counts can- measures in property management for debates and exchange of views not necessarily be counted.”5 and the functioning of the Office between representatives of the au- The PTE is still facing new challeng- of the National Board of the PTE. thorities, scientists, and economic es. Undoubtedly, much remains to be These involved the intensification practitioners. done. This applies in particular to co- of business and the intensification of The debates on the PTE forum operation of the National Board of the the work of this Office. Of key impor- attract the attention of many in- PTE with the PTE Branches, as well as tance was the modernization carried stitutions, including the central national and international partners of out at the House of the Economist institutions such as the Ministry of the Society. The PTE Branches have in Warsaw, Nowy Świat 49 – the seat Regional Development (now Min- legal personality which is conducive to of the national authorities of the istry of Infrastructure and Develop- new initiatives (e.g., aimed at raising PTE. The modernization not only ment), the Ministry of Science and funds from the EU funds) and coopera- increased the revenues from renting Higher Education, the Ministry of tion not only with units operating with- office space, but primarily provided Economy, the Ministry of Educa- in the structures of the PTE, but also higher quality service and better con- tion, the Ministry of Health, the Na- outside them, especially with partner ditions for seminars, conferences, tional Polish Bank and parliamentar- organizations. Such cooperation creates and other works taking place in the ians, MPs and senators. The PTE is opportunities for positive synergy in the headquarters of the National Board asked by many institutions to start implementation of the statutory objec- of the PTE. or develop cooperation. This coop- tives of the PTE. At the same time it We hope that this Bulletin will eration is reflected in a number of can promote the development of all stimulate new ideas and projects to projects including expertise reports, units cooperating with our Society. develop economic knowledge. At public speeches of members of the Implementation of the statutory the same time it will stimulate the PTE, seminars, and national and in- tasks of the PTE would not be possible rationalization and development of ternational conferences. without raising funds for their financ- the PTE and its co-operation with These actions are the result of a joint ing. The sources of these funds were various institutions and economists effort of all bodies of the PTE, and the primarily: in the country and abroad. We hope result of the social work of the mem- 1. Rental of rooms in a tenement that this Bulletin will encourage in- bers of the Society. There is no way to building owned by the PTE, terested institutions and individuals present the full quantitative effect of to get in touch with us. The Office 2. Sponsors – both legal persons and the activities of the PTE, the more so as of the National Board of the PTE as members of the PTE, it follows from the aphorism attributed well as its management and employ- to Albert Einstein (although this au- 3. European Union funds. ees, and above all the authorities of thorship is problematic): “Everything Financial resources are a conse- the PTE presented in this Bulletin that can be counted does not necessar- quence of a number of pro-efficiency are at your disposal.

Seminar in Vlotho, August 2013, Lars Vogel, Director of the Ludwig Professor Elżbieta Mączyńska hands out to Marek Belka, President of the Erhard Foundation in Bonn, Professor Piotr Pysz, School of Finance National Polish Bank, the award for his contribution to the development and Management in Bialystok, Fachhochschule für Wirtschaft und of economic knowledge of society. Technik Vechta / Diepholz / Oldenburg

5 http://quoteinvestigator.com/2010/05/26/everything-counts-einstein/ , accessed on 3 May 2014.

Bulletin PTE No. 2 (65)/2014 I 7  Artur Pollok An outline of the history of the Polish Economic Society The roots of the Polish Economic Society ( PTE) and of the Polish social economic movement date back to the 16th century, to the Renaissance in Europe.

oland regained independence in confronted with a number of serious P1918 and this fact posed new most economic problems, especially the important challenges for the whole of underdevelopment of the industry. In society, dictated by the necessity of po- the first half of the twenties of the last litical and economic reconstruction of century the problems were aggravated the country, destroyed both by parti- by serious budget difficulties, which tions and war operations. Economists turned into currency crisis, the largest began to seek such organizational in the history of Poland, resulting in forms for their activities, which would inflation on an unprecedented scale. be conducive for the reconstruction of The late twenties of the last century the state. Three years after the end of brought the deepest economic slump After the end of World War II the the First World War the first two in- in the history of the capitalist econ- Polish economists once again faced dependent associations of economists omy, which triggered the global eco- the political and economic challeng- were established in Poland - the Polish nomic crisis with its effects stretching es. The regional associations of econo- Economic Society, which was estab- for almost the entire third decade of mists have not been, however, reacti- lished on 27 February 1921 in Lviv, the twentieth century. All these issues vated. The idea of a nationwide social and two days later – on 1 March of the were of particular concern of activists organization of economists prevailed, same year – the Economic Society in of both societies. the one that would gather economic Krakow. These societies have played The Polish Economic Society in Lviv researchers and practitioners from all a major role in the development of and the Economic Society in Krakow over the country. As a result, on 1 and Polish economic thought of the inter- were conducting extensive research, 2 December 1945, the representatives war period, as well as in strengthening reading, journalistic and publishing of the economists from Warsaw, Lu- the reborn Polish state. activities, focused on searching the blin, Lodz, Krakow, and Poznan took From the very beginning the activi- measures to solve the problems facing part in the founding congress of the ties of the two societies were subor- the Polish economy. In the most im- Polish Economic Society which took dinated to the overriding aim to portant matters, these societies were place in Lodz. The representatives strengthen the economy of the reborn putting forward legislative initiatives of Lviv economic environment did Polish state. The economists from so- and were sending to the state authori- not take part in the congress. It is cieties were well aware of the fact that ties memorials, in which they pre- significant, however, that when dur- “poor” economy threatened the inter- sented their position on the subject ing the congress the name for the nal stability of the state and its inter- matter, as well as were suggesting tak- social organization of economists was national security. They focused econ- ing certain preventive measures. The searched for, it was decided to name omists were well aware of the fact that outbreak of the Second World War in it the “Polish Economic Society,” the “poor” economy threaten the internal 1939 disrupted the 18-year period of same which society in Lviv bore. In stability of the state and its interna- extremely active business activities of this way, the contribution of Lviv in tional security. In 1921 Poland was, both societies and also made it impos- the development of the social move- admittedly, a country with a relatively sible to carry out the Second Congress ment of Polish economists has been formed political system, but was still of Polish Economists in Krakow. commemorated.

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During this congress, a national sion, i.e., focused on the practice of ing the economic situation of the organization with branches located business (thus joining scientists with country. Almost all the activities of in major academic centres was set a broad range of practitioners). In- the Society were subordinated to the up instead of previously existing re- creasingly, a grass-roots movement popularization and implementation gional associations of economists. of economists employed in large of the system. Although in 1975 the The development of the publishing state-owned enterprises began to be system already covered 125 economic activity was regarded as the most ur- noticeable in the activities of the So- organizations, including 110 in the gent matter. As a result of the war the ciety. The following years saw further industry, which accounted for 68% of scientific and educational base of the rapid organizational development of the total industrial production of the country was in fact ravaged. There the whole Society. In 1970, the Soci- country, the system had not improved was a shortage of textbooks at all lev- ety gathered nationwide as many as labour productivity or the effective- els of economic education, shortage 50,267 members. ness of management. Consequently, of publications of Polish economists At the end of the 1960s economic once again great social protests broke and translations of foreign books. difficulties of the country began in- out, prompting in 1976 the state au- It was also decided to resume the creasingly to show, in addition, ac- thorities to make another attempt to “Ekonomista”, a scientific journal companied by rising social tensions. change the economic policy. founded in 1900, dedicated to sci- The difficulties proved to be so sub- The nineteen eighties brought ence and the needs of economic life, stantial that Poland faced a serious huge foreign debt burden, the in- which took place in 1947. According socio-economic crisis in 1970. The ability to compete in international to the plan of the founders of the state authorities have been forced to markets, and the total destruction Polish Economic Society in major authorize changes to the centralized of the Polish economy. The crisis of academic centres general assemblies system of management of the nation- the nineteen eighties, regarded as of local communities of economists al economy. Thus, the improvement the most serious in the post-war his- took place and convened branches of of the inefficient economic system tory of Poland, pointed clearly to the the Society. has become a major challenge that inefficiencies of centralized manage- In December 1950, during the First faced the community of economists ment of the economy, which actually Congress of the Polish Economists at that time. had been repeatedly reformed. The the participants stressed in a resolu- Because of the significant economic then apparatus of power, however, tion their willingness to actively par- problems of the country, after a fif- did not recognize the need for a radi- ticipate in the construction of social- teen year break, the 3rd Congress cal change in the direction of the sys- ism in Poland. The Society focused of Polish Economists was convened tem based on market mechanisms, in on Marxist economics which was the in Warsaw on 7 and 8 January 1971. addition involving the democratiza- primary and for a long time the only The economists who gathered at the tion of social life. It was therefore an- subject of research and educational Congress explicitly argued for the other attempt to reform the socialist and practical activities. The Society need to change the methods of man- economy of Poland, which - as soon has become an instrument of influ- aging economy and determined the it turned out - also this time did not encing the society, promoting the role of the Society in this process, as bring the expected results. Also this economic policy of the government, reflected in the relevant resolutions time the Polish Economic Society created by the leadership of the submitted to state authorities. The was heavily involved in the reform Polish United Workers’ Party. Sixth Congress of the Polish United processes. In June 1956, the 2nd Congress of Workers’ Party, which was held in De- On 6-8 March 1981 the 6th Con- Polish Economists took place and cember of the same year, formulated gress of Polish Economists was held opened a new phase of the Soci- a new strategy for socio-economic in Warsaw under the slogan “The re- ety’s activity. In consequence a bi- development of the country. form cannot go wrong.” One of the polar concept of development has In 1973 a new system of functioning most important documents devel- been developed, which on one hand of economic organizations was intro- oped at the Congress was the study maintained the scientific nature of duced, known later as the system of entitled “Directions of reconstruc- the organization, and on the other large economic organizations. The tion of the system of functioning of acquired also a professional dimen- system raised high hopes for improv- the Polish economy in the eighties.”

Bulletin PTE No. 2 (65)/2014 I 9 The concept of systemic change in- departing from the command system would affect the Society, its National cluded in the study has had a signifi- towards a democratic state with an Board, and the majority of Branches cant impact on the final version of economy based on market mecha- already in 1990. These problems have the economic reform programme, nisms. Thus the forty-year period of forced the profound organizational which was politically approved in the the Polish People’s Republic came transformation of the Society which resolution of the 9th Extraordinary to an end. For a number of years resulted in the Extraordinary Nation- Congress of the Polish United Work- the economists in the Society have al Congress held on 27 June 1991. ers’ Party (July 1981). Despite seri- pointed to the need for a thorough Pursuant to the resolution passed at ous political problems in the country reform of the Polish economy and the Congress the supreme authori- the first period of the mid-1980s was now faced challenges resulting from ties of the Society were obliged to marked by the reform. Activists of the process of systemic transforma- provide the individual Branches of the Society actively supported the tion, unprecedented in the economic the Society with legal and financial need for a quick change of organi- history of the world. This process independence while maintaining the zational structures and principles of not only forced the reorientation of national integrity of the Society. This operation of the entire economic sys- the objectives and courses of action position was later adopted by the tem in Poland. of the Polish Economic Society, but Sixteenth Congress of the National The role of the Society in the proc- also a major organizational transfor- Society held in November 1993. The ess of reforms was strengthened after mation of the Society. appropriate changes to the statute of Professor Zdzisław Sadowski (who in In 1989, on the threshold of transfor- the organization were made at this November 1987 was elected the Presi- mation, the Fifteenth National Con- Congress. Under the new rules, the dent of the Society) took over as Dep- gress of the Society took place and chief governing body directing the uty Prime Minister. In the same year, adopted a resolution defining a new Society’s activities in the country on 27 and 28 November the 5th Con- courses of action for the organization. was the National Board, composed of gress of Polish Economists was held in Among them were: the involvement the presidents of the Branches of the Krakow. The proceedings of Congress of the Society in the transformation Society from all over Poland. In mid- were undoubtedly the most serious of Poland’s economic system from 1993 organizational changes covered economic debate of that time in the a centrally planned into the market all Branches of the Society. In addi- country, and as it soon turned out, the economy, the development of free en- tion to the national authorities of last devoted to the socialist system of trepreneurship (regardless of existing the Polish Economic Society, with its managing the national economy. The property relations in various econom- seat in the Polish capital - Warsaw, late 1980s brought a rapid growth of ic entities), the creation of a qualita- the Society’s structure consists of crisis trends in Poland, both in the tively new economic order ensuring 23 regional offices located in major economy and politics. high efficiency of the economy. Ac- Polish cities. The communist command system cording to the resolution, of course, Currently, the Polish Economic So- of economic management, based pri- the tasks of the Society remained ciety has 2600 ordinary and honorary marily on the state monopoly, visible unchanged, i.e., the development of members and 59 supporting mem- in all phases of the social process of economic sciences and educational bers. The outstanding Polish econo- management, as well as the domi- activities (including improvement of mists, often world-renowned, served nance of state ownership, did not professional qualifications of econo- as the presidents of the Society e.g, stand the test of time. The growing mists). The Congress has also clearly Professor Edward Lipiński (in the ineffectiveness of the system, and defined the character of the Society years 1945-1965), Professor Oskar additionally the regime maintained as a fully pluralistic association, gath- Lange (1965), Professor Józef Pajest- by the then apparatus of power in ering economists with different be- ka (1965-1981), Professor Tomasz the end had to bring about a deep liefs and ways of thinking. Afeltowicz (1981-1985), and Profes- crisis and the collapse of the socialist Economists who gathered at the sor Zdzisław Sadowski (1985-2005). state model. As a result of a peaceful Fifteenth National Congress of the Professor Elżbieta Mączyńska from social contract negotiated in 1989, Society, did not, however, foresee the Warsaw School of Economics has the process of transformation was serious financial difficulties which, held the position of President of the initiated in Poland. It consisted in as a result of changes taking place, Polish Economic Society since 2005.

10 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

Thursdays at the Economists The Seminar “Thursdays at the Economists” has developed and perpetuated as an important form of popular scientific debates of economists with representatives of other opinion-forming environments – journalists, parliamentarians, politicians, and personalities of the world of science and culture. he tradition dates back to and above all, the most contro- Tthe Thursday debates in the versial issues. Hence, many de- 1970s. The then “Thursdays at bates concerned the causes and the Economists” initiated the consequences of the global cri- free-market political transfor- sis, the role of the state and the mation in Poland. These debates public sector in the economy, were focused, inter alia, on the the interdependence between political grounds of failures and the financial sector and the real systemic inefficiencies of socio- sector, changes in the economic economic policy in Poland and balance of power in the world, on political characteristics of the and social, demographic, and economy which the Hungarian other changes. economist Janos Kornai defined The Results of “Thursdays at as “Economics of Shortage”. the Economists” seminars are The current debates under the disseminated through the steno- “Thursdays at the Economists” graphic records published in the also refer to the most current, Internet and by synthetic media 29 April 2014, the debate on „Quarter-century of post- socialist transformation”, from left: Professor Marcin but at the same time the fun- coverage, including the PTE Wojtysiak-Kotlarski, Professor Paweł Kozłowski, and damental issues of economic “Economic Bulletin” - a newslet- Professor Grzegorz W. Kołodko. theory and policy, and socio- ter addressed to institutions and economic practice. Because the decision-makers at various levels statutory task of the PTE is to in the economy, parliamentar- spread knowledge of economics, ians, teachers, researchers and the subjects of the Thursday de- others. In addition, the Thurs- bate involve the latest national day debates play a significant and international achievements role in the preparation and pro- in the field of economic theory, filing of the Congress of Polish “Grzegorz W. Kołodko book publications, and the re- Economists. and quarter sults of selected studies and ex- The “Thursdays at the Econo- of a century of trans- pert reports, including those on mists” arouse great interest; the formation” the role, but also on the failure circle of active participants and Scientific Editors: of economic theory in the con- readers of the transcripts of the Pawel Kozłowski and temporary increasingly complex debates is growing. They send Marcin Wojtysiak- economic reality. These debates their comments and additional Kotlarski also include questions about the materials to the minutes of the current socio-economic situation meeting, which are noted on the in the country and the world, PTE website.

Bulletin PTE No. 2 (65)/2014 I 11 Thursdays at the Economists As part of the “Thursdays at the Economists” a number of inspiring discussions on key economic issues was held at the PTE. Meetings are open to the all interested. We providet up to date information about seminars on the www.pte.pl as well as photos, transcripts and other materials. Below are a few selected meetings, which took place in recent years:

18 March 2014 13 March 2014 Seminar on the 10th anniversary of the Ownership and control. The perspective death of Professor Witold Trzeciakowski of shareholders of public companies entitled “Polish transformation - principles and realities.” Dr. Agata Adamska Warsaw School of Professor Marek Belka Economics National Bank of Poland The presence in a company of Of all the four goals defined by a shareholder which can act as a true Professor Witold Trzeciakowski owner is positive, but its dominance the three goals of transformation often achieved through control-enhancing mechanisms have been realized - we have may give rise to moral hazard. The one, who has a greater consolidated independence, share in control than in ownership, will not always work for we have built a system of political and economic the good of the company and the public. democracy, the market economy is open to the world and stable development. But do the majority of the public approve of this system? We can put a question mark here and think: Why. 20 February 2014 The institutionalization of social space through public goods 27 February 2014 Professor Jerzy Kleer “Crisis without end” John Bellamy Foster, The “Poland 2000 Robert W. McChesney Plus” Forecast Professor John Toporowski Committee, the Polish University of London Academy of Sciences Foster, a professor of sociology, is very Destruction of public space has a negative impact familiar with the political economy, primarily on the quality of life and even the high especially that of Paul Sweezy, Paul growth rate cannot compensate for it. It is often said Baran and their intellectual base, i.e., the that the high rate of growth automatically translates “Monthly Review” school. Why is it important for us today? into a better quality of life. Probably to some extent, Not only because the authors of the book describe the it translates, but there is no automaticity here, what current economic situation, especially in the United States. we have tried to show in the “Poland 2050” report. In Poland, it is very important because the theories of Polish We have shown that the relatively high rate of economists: Oskar Lange and Michał Kalecki, apart from growth which has taken place in the last 20 years, Marx, were the main inspiration of the “Monthly Review”. has not been properly translated into quality of life.

12 I Bulletin PTE No. 2 (65)/2014 Thursdays at the Economists

30 January 2014 Intellectual property protection in 17 December 2013 times of global economic crisis The ideas for the crisis: Dr. Michał Kruk The thoughts of Tadeusz Kowalik Institute of Modern Professor Paweł Kozłowski Civilization Problems The Institute of Economic In the case of evergreening Sciences of the Polish patent the idea is that after the end of patent protection Academy of Sciences patent holders slightly alter the chemical drug One of Tadeusz Kowalik’s aston formula and apply for a new patent, so as to ishments was that capitalism is extremely viable and preserve a monopoly in a given market. capable of reforming itself. This was missing in the way the traditional left perceived capitalism, not only Marx but also next generations. Tadeusz accepted it not as an expression of threat and not as something that should 17 January 2013 encourage him and like-minded people to retreat, but on the contrary, as an expression of hope, that in order Effectiveness of bankruptcy proceedings to achieve a better socio-economic order, the radical, - the results of research, popularization immediate and painful change of revolutionary nature is and their use in practice not necessary.

Professor Elżbieta Mączyńska 5 July 2012 The Polish Economic Society Do regulations in the Polish banking sector stifle economic growth? In the Statistical Yearbook published by the Central Statistical Office you can find the entry “deaths” and the information of how Krzysztof Pietraszkiewicz many people die every year, and why. However, The Polish Bank Association there is no entry “bankrupt companies” in the To a large extent, the fact that index of the Statistical Yearbook. I believe that the lack of such an important economic information our country is shown in green, is is a big misunderstanding. As a consequence of a consequence of the stable banking this information gap the problem of bankruptcy is sector, which not only did not require incorrectly understood. This problem, moreover, assistance in times of crisis, but financed the economy at the has not only a quantitative dimension but also necessary level. The Polish banking sector, in contrast to banks a qualitative, social, and human dimension. This is in in many other countries, responds to instruments of monetary line with Einstein’s statement that “what we know how policy and responds to supervisory policy instruments, including to count, does not count, and more and more counts instruments of fiscal policy. The power of the central bank, of what we do not know how to count.” We do not fully the local bank and local supervision must be strong, as long the know what are the consequences of the bankruptcies Polish taxpayer bears responsibility in case of any problems. for us, the taxpayers, and the state budget.

Bulletin PTE No. 2 (65)/2014 I 13 Thursdays at the Economists

10 May 2012 The course on innovation. How to lead Poland out of the developmental drift 26 April 2012 Professor Jerzy Hausner Pathology of transformation Cracow University of Professor Witold Kieżun Economics The effectiveness of Neo-liberalism The current model of development based and the belief that the market on the import of technology is exhausting mechanism will ensure stable and itself. Poland found itself in a developmental drift. We need relatively fast equilibrium were to change this situation - it is necessary to formulate a vision critically evaluated at the Congress which will motivate others. There is potential in people, but it is of the Polish Economic Society, in November 1989. paralyzed, frozen. It is in our universities, in our schools, in our The concept of the revolutionism of communism was local governments. It is not so that there are no such enclaves explicitly compared with the revolutionism of economic of creativity in Poland, there are very many of them. However, liberalism. Honorary President of the Polish Economic these enclaves are scattered, today they do not create the Society, and the Chairman of the Congress, Professor conditions to ensure innovative environment. Zdzisław Sadowski before the end of the Congress warned against the “new religion of the market, because it is the straight road to ruin.” 16 April 2012 The limits to growth. The 40th anniversary of the first report of the Club of Rome 29 March 2012 Uncertainty and instability in the Professor Zdzisław Sadowski economy The Polish Economic Society There are six questions that I consider to Professor Władysław be essential. The first question: What will Szymański The Warsaw be the course of further development of the world? The second: Can we stop the School of Economics destruction of the ecosystem? The third, what are the prospects We are dealing not only with the for world food with a continuously rapidly growing population, slowdown in growth, but with how many people can the world really feed? The fourth: How a permanent stagnation in the countries of the West. to overcome severe social differences which do not decrease, The permanent trend of instability and crises is very but pile up and grow in the overall scale? The fifth: What to do likely since the sources of turbulence are largely of with a perverse economy controlled by the financial markets, systemic and structural nature, coupled with a rapid which have focused attention on a completely different escalation of environmental and resource barriers. direction in terms of managing the economy. And finally, how will the geopolitical changes affect this image?

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 Artur Pollok Economic knowledge competition One of the biggest and most important projects in the field of economic education, designed for secondary school students from across Poland and their teachers, is Economic Knowledge Competition. It is has been organized by the Polish Economic Society, in cooperation with the Ministry of Education, since 1987. he importance of the Economic Committee has been chaired by Pro- TKnowledge Competition in the fessor Stanisław Owsiak, the Head process of economic education of of the Department of Finance at the society and its popularity is reflec- Department of Finance at the Univer- ted in the number of participants sity of Economics in Krakow. The Re- The final of the Economic Knowledge and schools joining each edition of gional Committees of the Economic Competion, a meeting with Deputy the Competition. Each year over 300 Knowledge Competition have been Prime Minister Janusz Piechociński at thousand students from about a tho- established in the various provincial the Ministry of Economy, Warsaw, 17 June 2013. usand schools attended twenty-seven cities in Poland. The Committees are editions of the Economic Knowledge responsible for the organization of the At this stage the top 100 participants Competition. first stage (school) competitions and who have qualified for the finals of The main objective of the Economic the second stage (district) competi- the competition are selected. The Knowledge Competition is economic tions. In total there are 17 Commit- third stage (central) takes place in the education of youth, deepening know- tees located in Bialystok, Bydgoszcz, Polish capital, Warsaw. Thirty seats ledge of the modern economy and to Czestochowa, Gdansk, Katowice, are prepared on the podium, becau- support the development of gifted Kielce, Krakow, Lublin, Łódź, Olsz- se that many students, achieve the students. The formula of the Com- tyn, Opole, Poznań, Rzeszów, Szcze- best results during the final struggle petition is to check the knowledge of cin, Warsaw, Wrocław, and Zielona of the Competition, and become the economics and encourage indepen- Góra. School committees are appo- winners of the Economic Knowledge dent thinking. Our experience leads inted in the schools participating in Competition. To be included in this us to conclude that these objectives the Competition. They coordinate group one has to overcome in a noble have been successfully implemen- the organization of the first stage scientific rivalry about 1.5 thousand ted. The winners and finalists of the (school) competitions and evaluate other participants in the Competi- Competition have become recogni- the works of the participants in these tion (because each year so many stu- zed scientists, managers, and senior competitions. dents participate in it). The first sta- officials of government. The Competition is held in three ge (school) and secondary (regional) The organization of the Economic stages. The first stage takes place in competitions are written exams, and Knowledge Competition and its pro- schools. Among the participants of the final two-day competition of the fessional level are the responsibility the first stage (school) competition third stage (central) - is a written and of the Main Committee of the Com- the top 10% of students are selected oral exam. petition, appointed for five years by who then join the second stage com- Each edition of the Economic the National Board of the Polish Eco- petition which is carried out in the Knowledge Competition is subordi- nomic Society. Since 2007 the Main districts, i.e., at the provincial level. nated to the keynote central theme

Bulletin PTE No. 2 (65)/2014 I 15 of the current socio-economic problems of Poland, Europe and the world. The list of the keynote central themes of the past twenty-seven editions of the Economic Knowledge Competitions is presented in Table 1 The school Edition year The keynote central theme 1st 1987/1988 Polish economic reform 1982 2nd 1988/1989 Money and market 3rd 1989/1990 New socio-economic order 4th 1990/1991 Entrepreneurship and economic efficiency 5th 1991/1992 Restructuring and economic growth 6th 1992/1993 Money, credit, and capital market 7th 1993/1994 Entrepreneurship and investing 8th 1994/1995 Work and management Poland in the European integration process: Cooperation - com- 9th 1995/1996 petitiveness 10th 1996/1997 Financial policy in economic development 11th 1997/1998 Market research and marketing 12th 1998/1999 Globalization of the economy 13th 1999/2000 Decentralization of public finances 14th 2000/2001 Role of capital market in the economic development of Poland 15th 2001/2002 Labour market in the age of information civilization 16th 2002/2003 Polish economy towards integration with the European Union 17th 2003/2004 Enterprise in the conditions of globalization 18th 2004/2005 Regional policy and structural funds of the European Union 19th 2005/2006 Risk in business 20th 2006/2007 Human capital and innovation in the Polish economy 21st 2007/2008 Household - socio-economic dimension 22nd 2008/2009 Environment in the management of economy 23rd 2009/2010 Economic fluctuations and economic development 24th 2010/2011 Man in the world of money 25th 2011/2012 In search of a new economic order 26th 2012/2013 Disequilibria in the economy: Causes and effects 27th 2013/2014 Euro area: Opportunity or Threat?

Cash and in-kind-awards are an- of the Competition, which include: a number of commercial banks and nually provided for the winners of the the Prime Minister of the Republic large Polish enterprises. The intention Economic Knowledge Competition of Poland, the Minister of Economy, of the organizers of the Competition is and teachers who care for them, and for Minister of Finance, the President of that the reward system is to encourage the best schools. This is possible thanks the Polish National Bank, the Polish the further scientific and professional to a wide range of patrons and partners Financial Supervision Authority and development of young talents.

16 I Bulletin PTE No. 2 (65)/2014 17 June 2013, Warsaw, winners of 26th Economic Knowledge Competition and their teachers Winners of th f the qualification ex- is appreciated. A special award, “For the Competition eminent Polish econo- amination in such professions as econ- dissemination of economic knowledge mists give lectures to the participants omist-technician, technician-trader, and distinguished scientific care of the of the third stage (central) competi- accounting technician, administration participants of the Economic Knowl- tion and their tutors. So far lectures technician, and technician of organiza- edge Competition” is granted to teach- were given by: Professor Zdzisław Sad- tion of advertising. Exemption from ers who were tutors of the winners of owski from Warsaw University, Profes- professional exam is equivalent to ob- at least three editions of the Economic sor Elżbieta Mączyńska from the War- taining the highest exam score. Knowledge Competition. saw School of Economics, Professor Big prize money for the winner of the Among the additional attractions of Bogusław Fiedor of Wrocław Univer- Economic Knowledge Competition is the Economic Knowledge Competi- sity of Economics, Professor Grzegorz a tradition. It is founded by the Prime tion one should mention the meeting W. Kołodko of Kozminski University in Minister of the Republic of Polish or of the participants of the third stage Warsaw, Professor Witold Orłowski of one of the ministers (Minister of Econ- (central) Competition and their teach- Warsaw University of Technology, and omy or Minister of Finance), and the ers with the president of the Polish Professor Andrzej Sławiński from the President of the Polish Economic So- National Bank. In addition to the Warsaw School of Economics. ciety. Other winners also receive cash discussion about the most important The Economic Knowledge Compe- prizes and scholarships, as well as high- economic problems in Poland and the tition involves also a range of activities end notebooks with software, books on world, the guests also have the oppor- aimed at promoting knowledge of the economic issues, subscriptions of pro- tunity to visit the Numismatic Cabinet modern et of sponsors, students and fessional magazines, and commemora- of the National Bank of Poland. teachers receive free books of outstand- tive coins. Each edition of the Economic ing Polish and foreign economists. The In addition to the cash and in-kind Knowledge Competition ends with Economic Knowledge Competition is awards, and scholarships the winners a ceremony at the Chancellery of the accompanied by a number of confer- are provided with free foreign trips and Prime Minister or the Ministry of ences and open scientific seminars in internships at leading institutions in Economy or the Ministry of Finance. the Branches of the Polish Economic the country and abroad. For example At this meeting, the awards and diplo- Society in the country. they participate in a two week scien- mas are handed out to the winners. The Economic Knowledge Compe- tific seminar at the Institute of Euro- For many years the Economic Knowl- tition is a project with a rich past – the pean Studies in Vlotho, Germany. The edge Competition winners and their 27 years of its existence is a long time. European integration and the idea of tutors at the end of each edition visit During this period the Competition a social market economy are the sub- the Stock Exchange in Warsaw. Dur- was subject to major and minor modi- jects of this seminar. The study visits ing the meeting with the President of fications. Evolution is essential, be- to the European Parliament in Brussels the Board of the Stock Exchange they cause the environment in which the are also organized for the winners of may listen to the presentation on the Competition operates changes, and the Competition. history of the Stock Exchange and its expectations of students and teachers Also, the teachers who prepare stu- current position, as well as discuss with also change. The goal of the Competi- dents for the Competitions and the the hosts of the meeting. tions remains unchanged- to dissemi- best schools receive cash and in-kind It should be remembered that the nate modern economic knowledge. awards. In this way, their commitment Economic Knowledge Competition is We are deeply convinced that this and contribution to the scientific care not only a ceremonious gala. In each goal has been and is being successfully of the participants of the Competitions edition of the Economic Knowledge realized.

Bulletin PTE No. 2 (65)/2014 I 17  Elżbieta Mączyńska Forum of Strategic Thinking

10 December 2012, the PTE – The debate under the Paradoxes of Futurology 2050 on “A Global Forecast for the Next Forty Years – 2050 – A Report to the Club of Rome Commemorating the 40th anniversary of The Limits to Growth – Jorgen Ran- ders – analysis of the work.”

The Forum of Strategic Thinking is one of the important projects of the PTE. The Forum was established on 28 January 2008 in Warsaw. Three organizations were the initiators and originators of the forum: the Polish Economic Society, the Polish Association for the Club of Rome, and the College of Business Administration at the Warsaw School of Economics, (SGH). The Forum is to preserve the culture of strategic thinking which is disappearing and threatens the sustainable, harmonious socio-economic development in Poland. he erosion of strategic thinking this sense, Henry Hazlitt’s warning organizers’ belief that in all spheres Tis actually a problem not only that “Today is already the tomorrow of socio-economic life, the need for in Poland but also in other Western which the bad economist yesterday futurological reflection and analysis countries. This is a consequence of urged us to ignore” can be regarded as well as the long-term development the Neoliberal trend, dominant in as a prophetic thesis. strategies, is the greater, the greater the last few decades as an ideological The objective of the Forum is to are the uncertainty of action and the basis of socio-economic policy. In Ne- promote culture and strategic think- risk of making mistakes. For when oliberalism, the long-term approach ing in Poland. Such activities as the the world is unpredictable and full is by definition marginalized. This is organization of debates, as well as re- of Taleb’s “black swans”, the primary due to an uncritical faith in the ef- search and analyses, studies of world function of futurological reflection fectiveness, infallibility, effectiveness and national literature, serve this ob- should be to identify potential major and proper driving force behind the jective. socio-economic development trends mechanisms of the free market, char- The establishment of the Forum of and, above all, focus on the least pre- acteristic of this trend. However, the Strategic Thinking and popularization dictable, unrecognized risk areas. global crisis has completely disputed of its work by e.g., publication of the We assume that seminars and panel the validity of such an approach. In PTE Bulletins, stems from the Forum discussions under the Forum of Strate-

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gic Thought will foster a breakthrough Social futurism involves engag- (...) and for many purposes extreme in Polish social sciences, a break- ing broad sections of society and all accuracy is wholly unnecessary” through in the methodology of futu- levels of government and governance (Toffler, Future Shock). rological thinking. Hence, we analyse in strategic works. In the situation of The participants of the Forum of and discuss the masterpieces of world pervasive uncertainty and incredible Strategic Thinking are people from and Polish literature on futurology. The pace of change this can be a barrier to academia, business, government, and analyses are concentrated around the the destructive consequences of fu- local governments. The key ques- question to what extent these works ture shock, but requires institutional tion, from the point of view of the contain elements of the new system of background and reconstruction of initiators of the Forum: “Polonia knowledge and imagination, which ar- forecasting. Quo Vadis?” is part of the list of sci- range our thinking about the future. This indicates at the same time the entific, business, social, and political The Forum of Strategic Thinking importance of globally developing priorities in Poland. Indeed, there is is intended to provide a stimulus to forecasting centres and geography of an unquestionable need to include address issues of twenty-first century forecasts. Unfortunately, still relevant the strategic thinking into the na- futurology, influencing the reality today is Alvin Toffler’s thesis, accord- tional education system and thereby hic et nunc, for the benefit of deci- ing to which now everybody feels cut encourage students to engage in the sionmakers. off from the opportunity to influence initiatives associated with this trend. The primary function of futurologi- the direction and pace of changes. The Forum debates on the future of cal reflection and forecasts is to iden- The reasons for studying probable Poland, Europe, and the world arouse tify hazards and provide early warn- variants of the future are irresistible. interest in Poland and abroad, which ing. Apart from detecting threats it is “Attempts to forecast the future in- was reflected in the international necessary to identify in advance new evitably alter it.”, although “no one conference organized jointly with opportunities and sources of devel- can ‘know’ the future.” “Despite all the Club of Rome and the Ministry opment. Forecasts are conducive to this, it is time to erase, once and for of Regional Development, with the stimulating multi-scenario thinking all, the popular myth that the future participation of prominent experts, about the future. This corresponds to is ‘unknowable’”. “A rough idea of including world-class futurologists Toffler’s concept of “social futurism”. what lies ahead, is better than none. (Warsaw Conference, Poland and Re- gions - The Perspectives of the 21st Century, 24-25 October 2008, War- saw, Sheraton Hotel – http://www.pte. pl/243_konferencje_cd.html ). Intellectual achievements of the Forum of Strategic Thinking are presented in the special PTE Bulle- tins, and its synthesis is in the Bul- letin published under the title: “The Paradoxes of Futurology of the Year 2050”, Economic Bulletin, 2014, No. 2 ( http://www.pte.pl/pliki/1/ 68/PTE_ Paradoksy_przesklad_www.pdf ) The PTE Bulletins are an important form of information about current activities of the PTE and one of the forms of promotion and popularization of economic knowledge. This is important also because the PTE organizes the annual Economic Knowledge Competition, addressed Professor Antoni Kukliński, the main initiator of the Strategic Thinking Forum to secondary school students.

Bulletin PTE No. 2 (65)/2014 I 19  Stanisław Rudolf International Cooperation of the Polish Economic Society

The Polish delegation during the COPE Congress Professor Stanisław Rudolf chairs the in India, 2008 meeting at Penjab Uniwersity

One of the priorities in the activities of the Polish Eco- Polish Economic Society has been an active member of this organization for nomic Society (PTE) is the international cooperation. It is many years. A representative of the an important complement to the national activities of the PTE is a member of the Council of PTE, as well as expansion and enrichment of what we offer this organization. It is one of the two largest and most to our members and employees of Polish universities, as well prestigious international organiza- as economic practitioners. tions of economists. The other one is the European Economic Association. uch cooperation is carried out by Cooperation with interna- These organizations do not compete, Sboth the National Board of the tional organizations of econ- but rather complement each other. PTE as well as some branches of our They differ in terms of structure, Society. It includes such activities as: omists range, number of participants, the fre- This cooperation focuses on three u Cooperation with international quency of organized congresses, etc. organizations of economists; organizations, namely the Interna- IEA Congresses are held every three tional Economic Association (IEA), years and are undoubtedly the most u Participation of representatives the European Economic Association prestigious events in the environment of the PTE in foreign seminars and (EEA) and the Congress of Political conferences; of economists. The prestige of these Economists, International (COPE). meetings results mainly from the fact u Strengthening the position of The IEA was established in 1950 that the most prominent economists Polish economists in the internation- and brings together national associa- with significant scientific achieve- al arena; tions of economists. Currently, nearly ments, including Nobel Prize win- u Support for local Branch Offices 60 such associations are members of ners, attend them, as well as because of the PTE in establishing coopera- the IEA. The current activities of the of the importance of the ongoing dis- tion with foreign countries; organization are supported, among cussion there, the proposals etc. It is Below we make brief overview of others, by UNESCO, the World Bank, worth noting that the position of the these activities and the European Commission. The organization was built by its succes-

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 Stanisław Rudolf sive presidents, among which may be an Union, international finance, etc. mention such well-known economists The Congress was attended by several as E. A. G. Robinson, P. A. Samuelson, Polish, mostly young economists. Only E. Lundberg, K. J. Arrow, A. B. Atkins, some of them were delegated by Polish R. M. Solow, and J. Kornai. The IEA universities, while some were doctoral Congresses are held on different con- students who study in Western coun- tinents, and usually are an important tries. The next Congress will be held event for the countries in which they in Toulouse, France on 25–29 August take place. Professor Stanisław Rudolf and and will be hosted by Toulouse School The highest authority of the IEA is Professor Joseph E. Stiglitz of Economics. the Council composed of representa- The third of these organizations, devoted to labour issues (employment, tives of national associations. The Congress of Political Economists, In- unemployment, migration, new brain Council assembles every three years, ternational (COPE) is less numerous, drain, etc.). Such issues as globaliza- usually the day before the Congress. but brings together economists from tion, economic growth, inflation, and many countries. COPE holds its con- It takes important decisions regard- what should be emphasized, global gresses every year, but unlike EEA and ing the activities of the organization, warming were quite often raised. IEA congresses COPE’s congresses are including personnel decisions. The The issue of transformation in the thematic. Their subjects are, however, Council elects the 18-member Execu- countries of Central and Eastern Eu- quite generally formulated, which tive Committee which makes impor- rope was relatively rarely raised. This makes them open to economists of tant decisions between Congresses. may be due to the fact that the econo- various specializations. These one- The Council also elects a President- mists from these countries relatively week conferences are usually held in elect who, after three years, automati- rarely attend the congresses. The par- very attractive locations. Polish econo- cally becomes the President, and a Vice ticipation of economists from Poland mists play a leading role in COPE, due President and Treasurer. After the end is also very modest. In recent years, to the large number of participants in of the Congress in Beijing, which took however, this has shown some im- these congresses, as well as participa- place in 2011, Professor Joseph Stiglitz provement, as evidenced by the fact tion in the authorities of the organi- of Columbia University, USA, Nobel that twice as many Polish economists zation. Currently, Professor Irena laureate of 2001, became the presi- attended the Congress in Beijing than Hejduk from the Warsaw School of dent. He is well-known to the Polish the Congress in Istanbul. This may be Economics holds the post of President economists from numerous publi- due to travel scholarships for young of COPE. The Board of Directors of cations. In 2011, the PTE publish- economists sponsored by the PTE. COPE includes seven Polish representing house released his book entitled EEA Congresses are held every year atives (M. Gorynia, W. Grudzewski, “Freefall: America, Free Markets, and and are attended by 1500 - 1800 par- I.Hejduk, A. R. Kozłowski, R.Matera, the Sinking of the World Economy”. ticipants. In contrast to the IEA, the S. Rudolf, and P. Urbanek). The next IEA World Congress will be membership in this organization is In July, 2012, the COPE Congress held in June 2014 in Jordan. individual. Although formally it is was held in Buenos Aires, Argentina. In their papers presented at con- a European association, both among The next Congress will be held from gresses authors often use quantitative its members and participants of the 6 to 12 July, 2014 in Zurich, Switzer- methods. The papers refer to the cur- congresses one can meet economists land under the slogan “Sustainable rent economic problems of a global from all continents. Young econo- global and regional development”. We nature. There were also plenty of the- mists, mostly lecturers and doctoral anticipate that it will be attended by oretical papers. Usually, most papers students, as well as students dominate a record number of Polish economists. dealt with the issues of broadly defined among them. The congresses of the The COPE’s congresses are followed by finance (fiscal and monetary policy, fi- organization are located in European annually issued monographs in English. nancial markets, exchange rates, taxes, countries. From 26 to 30 August 2013, etc.) and they were the subject of dis- the Congress was held in Gothenburg, The participation of represent- cussions both in plenary and parallel Sweden, and gathered more than atives of the PTE in foreign sessions. While discussing financial 1,600 participants. The discussion at issue it was particularly easy for par- the Congress was dominated by prob- seminars and conferences ticipants to find a common language. lems of economic recession, the barri- Annual seminars organized in Ger- A lot of attention in the lectures was ers to the development of the Europe- many in Vlotho on the river Weser con-

Bulletin PTE No. 2 (65)/2014 I 21 stitute a special type of international gaining importance in the context Strengthening the position of cooperation of the PTE. The seminars of the continuing financial crisis and Polish economists in the in- are organized by the National Board that ordoliberalism provides a strong of the PTE and the Ludwig-Erhard and viable alternative to the contem- ternational arena One of the most important tasks Foundation based in Bonn. Some 20 - porary dominant neoliberalism. Dur- 25 participants from Poland take part ing the discussion it was also pointed on which the PTE has been working in the seminars, including representa- out that it was desirable to seek solu- for a long time is promotion of Polish tives of academic institutions from tions to existing problems exactly in economists in the international arena. across the Poland, students, the win- the concepts of ordoliberalism. In recent years, the main effort was ners of the “Knowledge of Econom- The Polish Economic Society also focused on increasing the participa- ics” competition, and entrepreneurs. works with the Free Economic Soci- tion of young Polish economists in These seminars are almost entirely ety (VEO) of Russia. It is the oldest, the Congresses of the EEA and IEA. financed by the said foundation. The (founded nearly 250 years ago), the Such a course of action seems to be seminars are focused on the important largest (about 300 thousand mem- justified, because participation in the issues of social market economy. Sem- bers), and the most influential or- congress gives them the opportunity inar participants are trying to deepen ganization of Russian economists. to present their scientific achieve- their knowledge of social market Representatives of the PTE and VEO ments, establish contacts with foreign economy and deliberate on the possi- meet on a regular basis both in Mos- economists, with institutions that use bility of re-implementing this concept cow and Warsaw. A representative congresses to recruit suitable employ- in the currently existing conditions. of the PTE participated in the VEO ees, including academics, etc. Meetings with outstanding scientists Congress that took place in Mos- Previous attempts to increase such and German politicians are an impor- cow in 2010. The proceedings of the participation consisted, among others, tant part of the seminar agenda. congress focused on the problems of in posting information about semi- Between 11 and 25 August 2013, the economic transformation in Russia. nars, conferences, and international 22nd consecutive seminar took place. The congress, which was attended by congresses on the PTE’s website. This Its topic was, “The concept of social about 900 people, was held under the was also the purpose of letters ad- market economy and its implementa- theme: “Deep economic moderniza- dressed to all the Deans of faculties tion in the German Federal Republic tion: The basis for the development of economics, both public and private and Poland.” Participants pointed to of Russia.” universities, encouraging supporting the dead provision in the Polish con- The PTE also works with organiza- trips of young economists to confer- stitution saying that the “social mar- tions of economists in some Euro- ences. The result was, however, quite ket economy (...) is the basis of the pean Union countries. Representative modest. In recent years, we have economic system of the Republic of of the PTE participated in the Round tried to grant scholarships for young Poland”. This concept was sidetracked Table Conference in Italy. He also par- economists for the IEA and EEA under the influence of the then cur- ticipated in the annual symposium of conferences. This solution proved to rent economic and social problems. the Spanish Economic Association be the most effective, but difficult In discussions at the seminar it was which was held in Granada in Spain to continue for a long time, due to stressed that this concept is again and in many other meetings. the limited possibilities of obtaining

Conference Room, the COPE Congress in India, 2008 The conference in Moscow, 2010

22 I Bulletin PTE No. 2 (65)/2014 The conference in Moscow 2010 funds from sponsors. It is hoped that 2013, we tried to popularize congress- ence, joint seminars with foreign the situation will improve when the es, sending invitations to over 2000 partners can enhance the activity of financial crisis is over. Polish economists from our mailing Branches and can be beneficial for The 1st Forum of Presidents of Eco- list. The next IEA congress in Jordan both parties. nomic Societies may improve the pro- and the COPE congress in Zurich Experience shows the wide pos- motion of Polish young economists in will show whether our efforts have sibilities of such cooperation in the the international arena. There came produced results. location of individual Branches. Both the proposal to organize in the future local authorities and local govern- the Forum of Young Economists from Support for the PTE Branches ments maintain partnerships with the countries of Central and Eastern in establishing international cities and regions in many countries. Europe. This initiative met with in- cooperation Analysis of their websites shows that terest and support of the Presidents. Initiatives undertaken by individu- they have several partnership agree- It seems, however, that its implemen- al PTE Branches may prove to be of ments. There are rich organizations tation is still to come. key importance for the development of economists in Western countries In examining the causes of under- of international cooperation. So far, and cooperation with them can bring representation of Polish economists their foreign contacts are scarce. It tangible benefits. The success of such in these congresses we have found is definitely a wasted opportunity in projects depends on maintaining that the poor information about making their work more attractive. close contact with local authorities. congresses may be one of reasons. In Trips abroad, exchange of experi- The initiatives undertaken by the PTE for international cooperation include projects such as the devel- The COPE Congress in India, 2008, opment of cooperation with Polish the meeting of the Board of Directors economists abroad by adding new people to our website link “Polish economists in the world”, as well as through publication of their books, articles, etc. Other initiatives involve the development and enrichment of the English version of the PTE website, contacts with foreign economists and organizations of economists, website information about conferences and international congresses, organization of seminars in English language with participation of foreign guests, popularization of international cooperation in the “PTE Bulletin” etc.

Bulletin PTE No. 2 (65)/2014 I 23  Artur Pollok Publishing activities of the PTE Ordoliberalism and the social market economy facing the challenges he main statutory objectives of circulation of 26,730 copies. of the present Tthe Polish Economic Society are The publishing activities of the Elżbieta Mączyńska, Piotr Pysz to promote economic thought and to Society are coordinated by the Pub- http://www.ksiazkiekonomiczne.pl/art/ show/244/ordoliberalizm-i-spoleczna- co-create conditions for the develop- lishing Committee appointed by the gospodarka-rynkowa-wobec-wyzwan- ment of economics and present its National Board of the Society. Its du- wspolczesnosci achievements (Paragraph 6 Item 1 of ties include opinions on the proposals the Statute of the Society), as well as on the issue of books submitted to the tion. Thanks to the efforts of the So- to disseminate economic knowledge Society as works that bring added val- ciety the following book publications and promote economic culture in so- ue to the achievements of economic appeared In the series e.g., J.E. Stiglitz, ciety (Paragraph 6 Item 5 of the Stat- sciences in the country and the world. Freefall: America, Free Markets, and ute). The Society implements these Selection process for the books is very the Sinking of the World Economy objectives by publishing books that rigorous, preceded by reviews drawn (2010); Ch. A. Pissarides, Equilibrium significantly contribute to the devel- up by professors of economics both Unemployment Theory (2012); D.T. opment of economics as well as mod- from Poland and abroad, with the un- Mortensen, Wage Dispersion: Why ern didactic publications by outstand- disputed achievements and position Are Similar Workers Paid Differently? ing Polish and foreign economists. in the particular scientific specialty. (2012); J.E. Stiglitz, A. Sen, J.-P. Fit- The scale of this activity is evidenced Works accepted for publication ap- oussi, Mismeasuring Our Lives: Why by the fact that in 2013 alone, thanks pear in a series of publications, among GDP Doesn’t Add Up (2013), and N. to the efforts of the Society, a total of which a series of “Nobel Prize winners Barr, P. Diamond, Pension Reform: 49 publications were issued with total in economics” deserves a special men- A Short Guide (2014).

Equilibrium Unemployment Theory Wage Dispersion: Why Are Similar Reforming Pensions Christopher A. Pissarides Workers Paid Differently? Nicholas Barr, Peter Diamond http://www.ksiazkiekonomiczne.pl/art/ Dale T. Mortensen http://www.ksiazkiekonomiczne.pl/art/ search?key=pissarides http://www.ksiazkiekonomiczne.pl/art/ show/251/reformy-systemu-emerytalnego- show/211/dyspersja-plac-dlaczego-podo- krotki-przewodnik bni-pracownicy-zarabiaja-roznie-dale-t- mortensen-e-book 24 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

Privatizing Pensions: The Transnational Economics in Perspective: Mismeasuring Our Lives: Campaign for Social Security Reform A Critical History Why GDP Doesn’t Add Up Mitchell A. Orenstein John Kenneth Galbraith Joseph E. Stiglitz, Amartya Sen, http://www.ksiazkiekonomiczne.pl/art/ http://www.ksiazkiekonomiczne.pl/art/ Jean-Paul Fitoussi show/229/prywatyzacja-emerytur-tran- show/161/ekonomia-w-perspektywie- http://www.ksiazkiekonomiczne.pl/art/ snarodowa-kampania-na-rzecz-reformy- krytyka-historyczna-j-k-galbraith show/219/blad-pomiaru-dlaczego-pkb- zabezpieczenia-spolecznego nie-wystarcza

In addition to books, the Polish Eco- Polskiego Towarzystwa Ekonomic- the Knowledge of Economics Com- nomic Society publishes scientific and znego” (Cracow), “Studia Ekonom- petition. The Bulletin is distributed to popular science journals, recognized iczne Regionu Łódzkiego” (Lodz), several thousand readers. in the country and in the world. The “Equilibrium. Quarterly Journal of Below are a few examples of our “Ekonomista” journal, founded in Economics and Economic Policy,” publications. 1900, and devoted to science and the (Torun), “Oeconomia Copernicana” needs of the economy deserves special (Torun), and “Przegląd Ekonomiczny” attention here. It is the oldest existing (Poznan). Most of them have been in- Polish scientific journal in the field of cluded in the list of scientific journals economics. This journal is published kept by the Minister of Science and together by the PTE and the Commit- Higher Education. tee of Economic Sciences of the Polish “The Bulletin of the Polish Econom- Academy of Sciences. The journal ic Society” is devoted to the current publishes scientific articles in the field activities of the environment of Polish of economic sciences, and information economists. It is a periodical magazine about scientific publications and im- of the National Board of the Society. portant events in the field of economic The Bulletin includes reflections, ex- theory and economic life in Poland pert reports, and opinions on the cur- and in the world. The “Ekonomista” rent socio-economic issues in Poland is on a list of top scientific journals in and the world, as well as presents the the field of economics. Since 2008, the activities undertaken by the Society for journal is covered by the content reg- the common good - civil society, pro- The Keynes Solution: The Path istration and citation indexing on the fessional development of economists, to Global Economic Prosperity ISI Master Journal List. and broadly defined development of Paul Davidson In addition, the regional branches entrepreneurship. The PTE Bulletin http://www.ksiazkiekonomiczne.pl/art/ of the Polish Economic Society issue is distributed through a network of show/218/rozwiazanie-keynesa-droga- do-globalnej-koniunktury-gospodarczej- nationwide scientific and popular sci- regional branches of the Society to paul-davidson-ebook ence journals, in Polish as well as in its members, partners, sponsors, and English, such as “Zeszyty Naukowe school communities which organize

Bulletin PTE No. 2 (65)/2014 I 25  Stanisław Rudolf Activities of Branches of the Polish Economic Society The structure of the Polish Economic Society consists of the Na- tional Board of the PTE based in Warsaw and 23 Branches of the Society located throughout Poland. hey are located in all provincial cit- of the PTE also submits such a report. tice. In addition, Ties (16) and in several smaller cit- These reports are the subject of discus- it is possible to ask ies. All Branches have legal personality sion at a meeting of the National Board for more detailed which means that they are independent of the PTE. After appropriate prepara- information or ex- organizations, conducting their activi- tion and enrichment with statistical planation, to invite ties independently, including economic summary of activities of Branches, the the authors of such activities which involve gaining funds reports are available on the website solutions for consultation, etc. It is also for the implementation of statutory of the PTE. Their general availability possible to implement together various objectives. All Branches have common makes them a kind of a showcase of programs or apply for grants, etc. statute, approved at the Congress of the individual Branches. Reading the re- Below we make a brief overview of PTE which brings together delegates ports makes it possible to compare and the most important forms of activity from Branches in proportion to the assess their activities. It also provides of Branches, compiled on the basis of number of their members. The presi- information on the forms of activity these reports. dents of all the Branches are part of the and the role the various Branches play Membership in the PTE 34-member National Board of the PTE. in their communities. The number of members of the They have the same decisive impact on These reports are widely used by Polish Economic Society has not the activities of the organization. the Presidents of Branches. The reports changed over several years. There has The activities of individual Branch- contain abundance of implemented ac- been, however, the continuing down- es are highly diverse and this is mainly tivities, initiatives, creative ideas, and ward trend for a long time, but de- related to the conditions in which original solutions, which can be used by clines are small and do not affect the they operate. Some of them have their other Branches because these are ready- activities of the Society. This tendency own property (real estate), good office made solutions, all the more valuable is present in all such organizations, conditions, employ many full-time because they have been tested in prac- both in Poland and in other countries. employees, conduct extensive business and use the proceeds for the implementation of statutory objectives. However, some do not have their own property which significantly hinders and restricts their activities. However, to a lesser or greater extent, all fulfil the statutory objectives of the Society. In accordance with a long tradition and statutory requirement, Branches of the PTE submit to its members and to the National Board an annual report on their activities. The National Board

10 February 2014, Poznań - „Young people 26 I Bulletin PTE No. 2 (65)/2014 in the labour market”, a scientific seminar  Stanisław Rudolf Activities of Branches of the Polish Economic Society

The seat of the Gdansk Branch of the PTE

Although sometimes people give up members are organized into Circles often organized by Branches and their their formal membership in organiza- or Clubs. Some Branches have the number increased from 11 in 2012 to tions, but usually continue their co- so-called supporting members. Most 13 in 2013. In 2013 most seminars were operation with the PTE and take part of these members, i.e., ten are in the organized by Branches in Szczecin (4), in projects organized by the PTE. The Branch in Kielce. Five branches have and in Opole and Torun (2 each). position of the PTE is stable, especially Scientific Councils. Training, courses, and lectures when compared with similar organiza- Conferences and Seminars Training and courses, includ- tions of economists in the old and new Conferences, seminars, symposia, ing the so-called training seminars countries of the European Union. Or- and workshops are important elements are the main way of obtaining funds ganizations in these countries rarely of activities of Branches. Particularly by Branches for statutory activities. have agencies or similar structures. important are conferences, as they pro- Therefore, no wonder that they have At the end of 2013, the total vide an opportunity to present oneself become very popular and this activity number of ordinary members of the in the environment, they integrate the is conducted by almost all Branches. PTE was about 2600 people. In terms community of economists, including Some of them have specialized in spe- of membership, the situation of indi- theorists and practitioners, and are the cific issues and have a strong position vidual Branches varied. They differed basis for the preparation of publica- in the training market in their area. in the number of members and trends tions, etc. The number of conferences Other Branches respond to emerging in this respect. Most members are in organized by the Branches is relatively needs and offer training adapted to the Branches in Gdansk (378), Bydgoszcz stable and varies in the range of 30 current needs of the market. They have (224), and Poznan (214). In all these to 40. The number of participants is no problems with this, as the members Branches the number of members has also relatively stable because it var- of the PTE are researchers and high- increased in the last year by a dozen to ies between 2800 and 3000. In 2013, quality lecturers, representing main several dozen people. The least mem- most conferences were organized by specialities in the field of economics. bers are in Branches in Walbrzych Branches in Wroclaw (5), as well as In recent years, there has been an (24), Legnica (34) and Bialystok in Bydgoszcz, Poznan, Szczecin, and upward trend in training and courses (43). In larger Branches of the PTE Torun (3 each). Seminars were less and as many as 702 were organized in

Bulletin PTE No. 2 (65)/2014 I 27 2013. The Branch in Bydgoszcz is the this type of activity is not large and it ksiazkiekonomiczne.pl/) are an im- clear leader in this kind of activity and tends to decrease. The PTE Branches portant showcase of the Polish Eco- organized 313 training and courses do not in fact have the power to inde- nomic Society. In recent years we have which were attended by over 3500 par- pendently conduct postgraduate stud- launched a “Nobel Prize in economics” ticipants. Also Branches in Wroclaw ies; hence they do this often in tandem publishing series. As part of this series (respectively 98 - 1300) and Gdansk with universities, mostly public univer- we have published translated works (79 - 1073) stand out in this respect. sities. The latter, due to the increasing of Stiglitz, Diamond, Montersen, and In total, training and courses organ- financial difficulties, prefer to carry out Pisssarides. We intend to publish the ized by the Branches were attended by such studies independently, keeping translated latest book by Shiller. Pub- nearly 9,000 people. all the profit for themselves. In recent lishing activities are also carried out The number of lectures organized years, such studies were conducted by some Branches of the PTE. Due by Branches is relatively stable and by six Branches, in 2013 the number to the high degree of difficulty associ- is about 70. Such activities are con- dropped to three and these were the ated with the preparation of publica- ducted by almost all Branches. Their Branches in Bydgoszcz, Krakow, and in tions, such activities deserve special subject matter relates to current so- Olsztyn. The number of participants attention and recognition. The most cio-economic events, both of the lo- in these studies has clearly decreased. creative in this respect is the Branch cal, national or international nature. Consultation and expertise in Torun which for several years has Often these are meetings with repre- been releasing more than ten items A few years ago consultation and sentatives of the central government a year. This Branch has its own scien- expertise were among the basic activi- or local authorities, scientific authori- tific journals, both in Polish and Eng- ties of the Branches. Increasing com- ties, etc. Many important domestic lish (“Equilibrium” - see: http://www. petition from consulting companies, and international economic events equilibrium.umk.pl/). The Branches in both the Polish and foreign, caused took place in recent years (finan- Szczecin (9 items) and Poznan (8) can that Branches must win new custom- cial crisis, the difficulties of the euro also boast of rich publishing activity. ers. As a result, only some Branches area, reform in Poland, etc.); hence Generally, publishing activity of have a significant position in this area. the lectures and readings have been Branches is rather stable, with a clear Definitely the Branch in Bydgoszcz increasingly popular. In 2013, nearly upward trend in recent years. Publica- stands out here, with about 2000 con- 3,000 people took part in the lectures. tions raise the prestige of Branches; sultations in the last several years. We Most such events were organized by particularly important in this respect should also mention the Branch in the Branches in Bydgoszcz (19) and in are their own publishing series. Because Szczecin in this respect. Koszalin (10), and Torun (7). of that Branches have to maintain Among the activities of the Branch- Releases and Publications regular contacts with the academic es one can also mention schools and Publishing activities conducted by community of economists and repre- post-graduate studies. The scale of the National Board (see: http://www. sentatives of business. In addition to

19 March 2014, Gdansk, conference entitled “Econo- 31 May 2012 – The Extraordinary National Congress mic efficiency of enterprises and sustainable develop- at the headquarters of the PTE in Warsaw ment of the economy”

28 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

the already mentioned publications in Torun, also some other Branches Conference in Toruń, 2011 publish their own scientific journals of different circulation (Branches in Krakow, Lodz, and Poznan). The above characteristics of activities of Branches of the Polish Eco- nomic Society show huge potential for their activities. It also indicates the significant distinctions as regards their size, forms of activity, economic and publication activity. Some of them extensively cooperate with foreign centres (e.g., the Branches in Torun, Gdansk, and Poznan). Most, however, do not have such contacts. All Branches are, however, interested in establishing such contacts. We strongly encourage you to com- municate directly with our Branches and cooperate with them, please find their contact details below.

Branches of the Polish Economic Society

Białystok 15-062, Uniwersytet w Białymstoku, Kielce 25-406, Uniwersytet Opole 45-058, ul. Ozimska 46a Wydział Ekonomii i Zarządzania, Jana Kochanowskiego w Kielcach, tel./fax +48 77 401 69 01, tel. +48 77 401 69 00 ul. Warszawska 63, tel. +48 85 745 77 06 Wydział Zarządzania i Administracji, e-mail: [email protected] e-mail: [email protected] ul. Świętokrzyska 21, tel./fax +48 41 349 65 28 Poznań 61-779, ul. Klasztorna 24/25 e-mail: [email protected] Bielsko-Biała 43-309, ul. Willowa 2, tel. +48 61 852 86 91, fax +48 61 851 90 58 tel./fax +48 33 827 93 54, e-mail: [email protected] Koszalin 75-254, ul. Franciszkańska 52 e-mail: [email protected] tel./fax +48 94 343 33 33, tel. +48 94 343 19 60 Rzeszów 35-045, ul. Hetmańska 15 e-mail: [email protected] tel. +48 17 853 36 49, fax +48 17 853 38 15 Bydgoszcz 85-034, ul. Długa 34 e-mail: [email protected] tel. +48 52 322 37 42, fax +48 52 322 65 52 Kraków 31-510, ul. Rakowicka 20A e-mail: [email protected] Szczecin 71-004, Uniwersytet Szczeciński Wydział tel. +48 12 634 32 59, kom. +48 536 711 536 Zarządzania i Ekonomiki Usług, ul. Cukrowa 8 Częstochowa 42-200, e-mail:[email protected] tel. +48 91 444 31 33, +48 91 444 31 64, ul. Kilińskiego 32/34 fax +48 91 444 31 29 tel. +48 34 324 97 33, +48 34 324 26 30, Legnica 59-220, ul. Senatorska 32 e-mail: [email protected] fax +48 34 324 26 30 tel. +48 606 979 426, fax. +48 76 862 39 19 e-mail: [email protected] e-mail: [email protected] Toruń 87-100, ul. Kopernika 21 tel. +48 793 370 619, e-mail: [email protected] Gdańsk 80-830, ul. Długi Targ 46/47 Lublin 20-262, Park Naukowo-Technologiczny, Wałbrzych 58-300, ul. Szmidta 4a tel. +48 58 301 54 61, tel./fax +48 58 301 99 71 ul. Dobrzańskiego 3, tel. +48 516 200 240 tel. +48 74 842 62 60, e-mail: [email protected] e-mail: [email protected] e-mail: [email protected] Warszawa 00-042, ul. Nowy Świat 49 Gliwice 44-100, ul. Zwycięstwa 47 Łódź 90-608, ul. Wólczańska 51 tel. +48 22 551 54 20, www.pte.waw.pl tel. +48 32 331 30 81,tel./fax +48 32 331 30 82 tel./fax +48 42 632 44 20 Wrocław 50-156, ul. Łaciarska 28 e-mail: [email protected] e-mail: [email protected] tel./fax +48 71 343 63 18, e-mail: [email protected] Katowice 40-068, ul. Koszarowa 6 (wejście „C”), Olsztyn 10-117, ul. 1 Maja 13 tel. +48 32 259 88 78, tel./fax +48 32 258 54 82 Zielona Góra 65-066, ul. Żeromskiego 3 tel. +48 89 527 58 25, tel./fax +48 89 527 24 49 e-mail: [email protected] skr. 165, tel./fax +48 68 320 25 89, tel. +48 68 327 04 19 e-mail: [email protected] e-mail: [email protected]

Bulletin PTE No. 2 (65)/2014 I 29  Bogusław Fiedor The Pte Research Council he PTE Research Council is an ad- and management practices. Other ac- Tvisory and opinion-forming body of tivities and tasks undertaken by the the Society. It is elected during consecu- members of the Research Council in- tive National Congresses for a period of volve active participation in the work of 5 years. The current Research Council the jury of (Professor Edward Lipiński was elected at the 20th National Con- Competition and the competition for Professor Bogusław Fiedor, Chairman gress for the period 2010-2015 and con- the best academic textbook in econom- of the PTE Research Council sists of 49 people who are outstanding ics), acting as panellists in the “Thurs- representatives of economic sciences in days at the Economists” seminars and team of the Research Council, chaired Poland. The work of this committee is regular “Forum of Strategic Thinking” by Professor Joanna Kotowicz-Jawor directed by the Presidium of the Coun- seminars as well as participating in the has developed and presented to the cil which was elected at the meeting on work of thematic committees of the Polish government a synthetic opinion 15 June 2010 and consists of: National Board. According to its stat- on the NSRF; l Professor Bogusław Fiedor ute, the Council also takes a stand on “Directions of development of mod- (Wrocław University of Economics behalf of the PTE on the current key ern economics – in the borderland – Chairman economic problems. Such a position of scientific disciplines.” – 6 Febru- l Professor Joanna Kotowicz-Jawor was expressed, in the form of a short ary 2008. Introduction to the discus- (Institute of Economic Sciences of report – on the issue of pension reform, sion was made by Professor Zbigniew the Polish Academy of Sciences) – prepared by the Presidium, with the Hockuba, based on the paper for the Vice Chairwoman participation of several other members 7th Congress of Polish Economists l Professor Marek Ratajczak (Univer- of the Council, back in 2012, i.e., before prepared jointly with Professor Marian sity of Economics in Poznań) Vice- the actual start of the legislative process Gorynia and Dr. Marian Brzeziński on Chairman in this case. “Between imperialism and cooperation: l Professor Mirosław Bochenek In the previous and the current term Economics and other social sciences in (Nicolaus Copernicus University in of office 12 open meetings research the early twenty-first century.” The dis- Toruń) – Secretary. (seminars) were organized, not count- cussion focused on two issues of key In the previous term, 2005-2009, ing the meetings devoted to the prepa- importance for the future of economics the Presidium of the Council was ration of the consecutive Congresses of as a science. Firstly, what opportunities composed of: Professor Włodzimierz Economists. They were dedicated to and risks are associated with the so- Siwiński (Warsaw University) – Chair- the following issues, among others: called economic imperialism, or impe- man, Professor Bogusław Fiedor – Vice- “National Strategic Reference rialism of economics as a science, which Chairman, Professor Joanna Kotowicz- Framework (NSRF) for 2007–2013”–17 has been associated primarily (but not Jawor – Vice-Chairwoman, Professor May 2006. It was a discussion meeting exclusively) with the development of Krzysztof Marczewski – Secretary. on government documents relating to the New Institutional Economics. Sec- The basic forms of the Council’s the National Strategic Reference Frame- ondly, what is the potential of coopera- operation involve open meetings and work for 2007-2013. Expert opinions tion between economic sciences and seminars held at the headquarters of were submitted at the meeting of the other disciplines of the social sciences, the National Board of the PTE, dedi- Research Council and were made avail- and natural sciences, and what are the cated to key problems of economics able to participants of the meeting. The results of this cooperation so far.

30 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

 Bogusław Fiedor “Economic sciences and the present curity system, with particular empha- implementation of the 7th Congress day. Modifications of the paradigm sis on public health care and pension while after the Congress actively par- and cooperation with other fields of systems, and the tax system reform; ticipated in promoting its ideas and science” – 25 November 2009. Intro- “Market failures and failures of the achievements. Many members of the duction to the discussion was made state: Public regulations versus mar- Research Council participated in the by Professor Bogusław Fiedor, Vice- ket regulations” – 3 July 2012. It was work on the post-congress publica- Chairman of the Research Council of an open meeting of the Council at tions as the authors of the papers and the PTE. The discussion focused on which Professor B. Fiedor made an ex- the scientific editors of the post-con- issues such as: general criteria of sci- tensive introduction to the discussion. gress volumes. entific progress in the development of He stressed in particular that in the In the years 2011-2012, numerous economic sciences, the issue of revi- real market economy there is a close meetings of the whole Council and sion of the paradigm of mainstream interdependence between the market meetings of the Presidium, often in- economics in the context of the de- regulation and public regulation as volving the authorities of the Soci- velopment of such new trends, as the methods of coordination and optimi- ety, including its President, Professor New Institutional Economics, behav- zation of activities of micro-economic Elżbieta Mączyńska, were devoted to ioural economics and behavioural fi- entities, and that the liberal view, sees developing the programme and sub- nance, economics of complexity, and the roots of almost all market failures stantive concept of the next 9th Con- finally the need and opportunities to in imperfect public regulation is an il- gress. The initial concept of the Con- deepen cooperation between econom- lusion. The discussion, which revealed gress was developed by the Presidium ics and management sciences; a significant polarization of views of of the Research Council chaired by “Strategic directions in the develop- the participants of the seminar, fo- Professor Bogusław Fiedor and further ment of public finances” – 30 March cused mainly on these two issues. work on the Congress was directed by 2011. Introduction to the discussion Both in the 2005-2009 and in the the Programme Council headed by was made by: Professor Bogusław Fie- 2010-2015 terms, a significant part the President of the PTE and Chair- dor, Professor Stanisław Owsiak, and of the Council’s activity, in particu- man of the Research Council. The Professor Andrzej Sławiński. Many lar, its Presidium’s, was devoted to Research Council, representing the important issues were raised during the substantive (conceptual) prepa- core of the Programme Council of the debate, such as the causes and ration of consecutive Congresses the Congress, has developed a general the possibility of reducing the budget of Polish Economists (CPE). The and detailed concept of the Congress deficit and public debt, Polish public Research Council of the 2005-2009 under the motto: “Economics for the finances and the problem of joining term of office has made a significant future: Explore the nature and causes the euro zone, reform of the social se- contribution to the preparation and of economic phenomena.”

3 July 2013, the seminar of the PTE Research Council entitled “Market failures and state failures (public regulation versus market regulations)” Bulletin PTE No. 2 (65)/2014 I 31  Stanisław Rudolf The 9th Congress of Polish Economists The Congress of Polish Economists was held in Warsaw Marriott Hotel on 28 - 29 November 2013. The Congress gathered more than 600 economists from academia and business practice, as well as politicians. Nearly 250 papers were prepared for the Congress. The Congress was held under the patronage of the Polish President Bronisław Ko- morowski. The Congress was organized by The Polish Economic Society (PTE) 28 November 2013, Professor Stanisław Rudolf chairs and was open to all economists. a session at the 9th Congress of Polish Economists The purpose and subject economy- opportuni- and all indications are that economic ties and threats”, which alluded to the recession is behind us. This fact had of the Congress accession. a significant impact on the congres- The congresses of Polish econo- The 9th Congress of Polish Econo- sional debate, which was dominated mists, organized every few years were mists was held in special circumstanc- by pro-development topics. always considered as important events es, in the aftermath of the global eco- The crisis has brought a significant concerning the fundamental problems nomic and financial crisis that began shift in the theory of economics which of the Polish economy and economic in the years 2007/2008 in the U.S. The is also reflected in the deep differenc- sciences. Tradition of congresses dates crisis has revealed the scale and scope es of views between the prominent back to 1887 when Polish economists of globally disturbed equilibrium, in- representatives of the major schools and lawyers from the three partitions cluding the equilibrium between the of economics. This is accompanied by organized the First Congress of Econ- financial sector and real sector. Poland the evolution of views which gener- omists and Lawyers in Krakow. After passed through the crisis relatively ates new trends in economic theory. World War II, subsequent meetings gently, much better than other Euro- This gives rise to a lot of questions and congresses were organized in pean countries. During the five years and doubts regarding the causes of times important for the country. One of the crisis the cumulated GDP for the crisis and difficulties to overcome should mention here for example the Poland increased by nearly 20%, while it. Hence the slogan of the 9th Con- Congress in 1956, organized during GDP growth in other countries was gress was “Economics for the future. the so-called economic and political zero or below. Only in the last year, Explore the nature and causes of eco- thaw or the Congress in 1987 right the GDP growth rate slowed down nomic phenomena” before the shift in socio-economic significantly, below one percent. The The 9th Congress of Polish Econo- system. The Congress in 2007 be- uniqueness of the current Congress, mists was aimed at a discussion on came also a part of such events, the however, lies in the fact that, starting the nature and causes of the ongo- first since Polish accession to the EU, from the second quarter of 2013, the ing changes and new developments hence its theme: “Poland in the global GDP growth rate clearly accelerated in the global, regional, and national

32 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

 Stanisław Rudolf economy. The discussion was held and the representatives of other dis- Then, the main panel of the Congress taking into consideration global chal- ciplines of science. The list of the took place, entitled “The fundamen- lenges and forecasting aspects. The Congress themes was a result of the tal problems in the theory of eco- new trends in economics and man- discussion that went on the forum of nomics and business practice” which agement were discussed, as well as the PTE Scientific Council and the was moderated by Professor Elżbieta in other disciplines. The aim of the PTE Programme Council. Mączyńska – President of PTE and Congress, similar to the previous The 9th Congress was preceded by by Professor Bogusław Fiedor, the congresses, was to present the latest seminars and other discussions organ- Chairman of the Scientific Council research results, exchange views and ized by PTE in 2012 and 2013, with of the PTE. This panel was attended experience in this respect between a wide participation of economists. by such economists and politicians as economists representing academics Of particular interest were the dis- Dr. J. Lewandowski – EU Commis- and practitioners, politicians, and cussions within the “Thursdays at sioner, Professor J. Hausner, Professor representatives of other disciplines the Economists” and the “Strategic G. Kołodko, Professor J. Osiatyński, of science. The discussion resulted Thinking Forum” seminars. Detailed Professor Z. Sadowski, Professor M. in a synthetic picture of the current reports of these debates have been Ratajczak, Professor A. Koźminski, and forecasted situation in economic featured on the website of the PTE Professor T. Szapiro, Dr. A. Arendar- theory and economic practice, taking and the selected materials also in the ski, as well as by Polish economists into account the global and local fun- “Bulletin of PTE”. working abroad: Professor L. Orłowski damental challenges. The congress was attended by and Professor P. Pysz. The formula of the Congress was over 600 people, scientists from all Panellists responded to the theses broad, so that – on one hand to en- academic centres and business prac- presented by the organizers which able the participation of the widest titioners, as well as politicians. The concerned in particular dysfunctions possible group of participants, includ- congress was also attended by Polish in the economy, responsibility of ing Polish economists resident abroad economists who are resident abroad, economists for a failure to recognize – on the other hand – to create op- mainly in the USA, the UK, Germany, the crisis, expectations addressed to portunity to present and discuss the and Sweden. Nearly 250 scientific pa- economics and related disciplines in issues vital for the state and prospects pers were prepared for the Congress. the existing economic situation, fur- of development of science of econom- Almost all the authors took part in ther development of economic sci- ics in Poland. The Congress was con- panel discussions. ences, as well as many other issues of ceived as a forum for all economists, Introductory speech to the Con- key importance for economic and so- not only affiliated to the PES and gress was presented by Professor cial development. It was pointed out thus it was a unique opportunity to Marek Belka, the President of the in the discussion that the economy exchange ideas between theoreticians Polish National Bank. His speech was fails to overcome new and emerg- and practitioners, between econo- entitled “Why only to discover? The ing crises, that it is necessary to ap- mists representing various centres lessons of the current crisis for the ply interdisciplinary approach to this and theoretical trends in the economy economics and economic policy.” end as well as achievements of other

28 November 2013, lecture of Professor Marek Belka during the 9th Congress of Polish Economists Bulletin PTE No. 2 (65)/2014 I 33 6. Determinants of the development of Poland. Innovation policy (2 sessions) 7. Determinants of the development of Poland. Public Finance (2 sessions) 8. Determinants of the development of Poland. Agriculture (2 sessions) 9. Determinants of the development of Poland. The financial sector A plenary session was held at the Professor Ewa Okoń-Horodyńska, Professor Teresa Lubińska, end of the Congress. Moderators of Professor Stanisław Owsiak all sessions made brief statements about their sessions. The plenary ses- sciences, especially anthropology. It four parallel panel sessions. In total, sion ended with a plenary discussion. was emphasized that the world is now 16 such sessions were held, attended It is difficult to precisely summarize more complex and uncontrollable. To by about 200 panellists. The panel- such a great event as the Congress of overcome the crisis it is necessary to lists were the authors of the papers Polish Economists. This will be possi- apply culture related resources. prepared for the congress, but their ble in relation to particular issues dis- At the end of the panel discussion presentations focused on issues speci- cussed at the Congress. Moderators the representatives of other disciplines fied in advance by the moderators. will make such session summaries in and environments were asked to com- After the panellists’ speeches, numer- the introductions to books that will ment on the statements. The com- ous participants of the Congress took be published on the basis of papers ments were presented by Professor the floor. In this way, the Congress prepared for the Congress, the mod- H. Wirth (President of KGHM “Polska has been enriched with many new erators will be their editors. We plan Miedź”), Professor A. Czapiński (soci- speeches and voices in the discussion. to release 11 books with papers with ologist, Warsaw University), Profes- It should be noted that both the pa- positive feedback from reviewers. The sor K. Modzelewski (historian, Polish pers and transcripts of panel discus- books will be released in 2014. Academy of Sciences) and Dr. R. Petru sions can be found on the PTE web- Huge interest in the Congress, (Chairman of the Association of site (www.pte.pl). evidenced by the number of par- Polish Economists). These comments This was followed by thematic ticipants, the presence of prominent pointed to the need for socialization panel sessions on the following guests and many publications and of economics, the need to develop the issues: media coverage, reflect well the high so-called economics of social responsi- level of economic sciences in Poland, 1. Economic science: stylized facts bility. It was also emphasized that the as well as the condition of the Polish and the challenges of modernity current development of Poland was Economic Society, the organizer of (2 sessions) made primarily with individual skills the Congress. of Poles and low wages, with limited 2. Controversies and disputes over use of the so-called social capital. This the economy – the state and the market, economic growth and social Detailed information about the 9th Con- may cause economic stagnation after gress of Polish Economists and papers are 2020, when the funds of the European cohesion (2 sessions) published on the website of the PTE http:// Union are exhausted. A much higher 3. Poland in the European Union kongres.pte.pl/kongres/ level of social capital is required to and in the global economy (2 ses- Achievements of the 9th congress will be sions) published in the form of several monographs. continue the development of a sover- One of them with plenary papers will be pub- eign economy. These comments were 4. Education for balanced and sus- lished also in English similarly, as after the an important complement to the said tainable development and for social- 7th Congress which resulted in the “Poland’s discussion and were also a kind of its ly responsible business transition and its future”, edited by Elżbieta general summary. 5. Determinants of the develop- Mączyńska, PTE, Warsaw, 2009, (see http:// Further deliberations were contin- ment of Poland. The labour market, www.ksiazkiekonomiczne.pl/art/show/132/ polands-transition-and-its-future-red-nauk- ued at panel meetings. There were demography (2 sessions) elzbieta-maczynska)

34 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

 Elżbieta Mączyńska There is no single correct theory of economics1 The 9th Congress of Polish Economists: Economics for the future: Explore the nature and causes of economic phenomena.

This text was prepared to celebrate the 9th Congress of Polish Economists, which took place in Warsaw at the end of November 2013. As demonstrated by the history of congresses of Polish economists, the congresses were held in highly diverse socio-economic and political conditions; therefore their central ideas were kind of the sign of the times. See: (http://www.kongres.pte.pl/kongres/idea-kongresu.html.

his also applies the 9th Congress of views which promotes the develop- Tof Polish Economists, which took ment of new trends in economic the- place at the end of November 2013. ory. Many questions and doubts arise The Congress was held in the period about “the causes of things. Those who in which the economic situation of do not know the “the causes of things”, individual countries and the world do not know the truth and have no real was formed primarily by factors which knowledge. Hence, the importance were the consequence of the global of their recognition, because Scire est financial crisis that began in the years rerum cognoscere causas -knowledge is 2007/2008 in the U.S. and evolved into to know the causes of the things. This the economic crisis and finally into the is expressed by the slogan of the 9th debt crisis, which still plagues many Congress: “Economics for the future: countries. The global crisis reveals the Explore the nature and causes of eco- scale and scope of globally disturbed nomic phenomena. “ This subject is all balance in socio-economic systems the more important because as a result as well as the shortcomings and inad- Professor Elżbieta Mączyńska of the global crisis the reputation of equacy of economic theory to the re- economics as a science has seriously alities and requirements of sustainable nomic and social transformations on suffered and consequently, the reputa- development and solid foundations of a global scale economists face problems tion of economists. “The Economist” prosperity, both in the sense of Adam and questions without ready-made simply states that among the economic Smith and Ludwig Erhard. Due to the solutions and unambiguous answers. market bubbles that burst as a result unprecedented deep and rapid eco- This is accompanied by the evolution of the crisis, particularly spectacularly

1 Under such title the “Obserwator Finansowy” published an abridged version of the text (see: https://www.obserwatorfinansowy.pl/tematyka/makroekonomia/nie-ma-jedynie-slusznych-teorii-ekonomii/)

Bulletin PTE No. 2 (65)/2014 I 35 burst the reputation of economics it- What unites a lot of the papers pre- tal targets - may be useful as a theoreti- self. Economists are blamed for the pared for the Congress is the recogni- cal basis for the recovery of such order. crisis, and for the fact that they were tion by their authors that economics Therefore a new space is being created not able to foresee the crisis. In addi- as a social science needs to change for the diversity of trends in economic tion, those few who predicted it, had because the world is changing. (To co theory. Diversity is the counterweight not been listened to. Hence, currently, łączy wiele sposrod przygotowanych to the doctrinalization of the neo- a fundamental problem of economists na Kongres referatów to uznanie przez liberal economics, so characteristic of is to restore the lost reputation of ich Autorów faktu, że ekonomia jako recent decades. This is pointed out economics. This issue is the subject nauka społeczna musi się zmieniać, bo not only by researchers and practition- of many of the more than 230 papers zmienia się świat) The ups and downs, ers, but also by students. In 2012, the presented at the congress. among others, of Keynesian theory, ne- students of the Faculty of Economics Professor Marek Ratajczak, Under oclassical economics, and also good and of the University of Manchester estab- Secretary of State at the Ministry of bad times for application of ordoliberal lished the Post Crash Economics Soci- Science and Higher Education em- concept of a market economy confirm ety. Under the slogan “The world has phasizes in his paper that the current the need to take into consideration changed, the syllabus hasn’t – is it time global debate often puts “the sign of the changing socio-economic reality to do something about it?” the organi- equality between the economic crisis into the theory of economics. In this zation demands to enrich the curricu- and the crisis of economics as a sci- sense it can be considered that there lum with heterodox economics. ence”. A similar opinion was formu- is no one correct theory and in every Currently, there are favourable con- lated by Marek Belka, the President of trend of economics, in every school ditions for the development of alterna- the National Bank of Poland who also of economics, one can find the tools tive currents of economics. Professor took part in the Congress and pointed and solutions which only in certain Jerzy Hausner stressed in his paper that out that “the sources of the current circumstances translate into practice. “the global economic crisis provokes crisis are very diverse and quite com- This is no coincidence that the Keyne- a revision of a number of findings of prehensive in nature, but among them sian theory can be considered suitable neoclassical economic theory. Many are definitely both the gaps in eco- for the difficult challenges of crisis in components of economic heterodoxy nomic theory and mistakes in macr- the economy, although, this view is gradually enter into “mainstream eco- oeconomic and regulatory policy. This also called into question. In turn, the nomics”. Thus, the economic theories assessment is followed by obvious pos- Ordoliberal theory – focused on the better than in the past “assimilate” tulates to expand, supplement, and socio-economic order and balancing of the achievements of other social sci- change the theory. “ the economic, social, and environmen- ences. “In contrast, Professor Grzegorz

From left: Professor Janusz Czapiński, Jan Krzysztof Bielecki, Professor Tomasz Szapiro, Dr. Dorota Podedworna-Tarnowska, Jerzy Pietrewicz, 36 I Bulletin PTE No. 2 (65)/2014 and Professor Grzegorz W. Kołodko From left: Janusz Lewandowski, Commissioner for Financial Programming and Budget of the European Commission; Professor Jerzy Osiatyński, a member of the Monetary Policy Council; Andrzej Arendarski, President of the National Chamber of Commerce Kołodko simply noted, that “in the and directions of change in economic of the economy, sometimes unjustly future heterodoxy will dominate, and theory. The discourse is not just about blaming precisely liberalism as liable the economics itself will absorb more economic sciences, but also about the for the irregularities occurring in the and more interdisciplinarity. The next main determinants of socio – eco- economy and this can have negative generation will need economy of mod- nomic development, including glo- decision making consequences. eration and the theory which will de- balization, models of socio-economic Another important issue taken in scribe it, as opposed to the previously system, public finances, innovation, the congressional debate issue was the dominant economy of either deficien- labour market, changes in education, problem of measuring the socio-eco- cy or excess. “This trend is all the more the functioning of the financial sector nomic achievements and constraints likely because drawing inspiration from and other sectors of economy, and also that are characteristic of the basic behavioural economics, the econom- about the destruction and various dys- measure of these achievements, i.e., ics of complexity is gradually develop- functions in this regard. the gross domestic product (GDP). ing, as well as economics of imperfect At the same time the debate at the The measurement of economic per- knowledge and institutional econom- congress considered issues relatively formance and social achievements is ics. The economics of complexity seeks rarely undertaken in economic analy- one of the most important issues both to show each economic phenomenon, ses such as the issues of conceptual in economic theory and economic prac- taking into account as many of its as- chaos characteristic for many econom- tice. Not enough that a fully satisfacto- pects as possible, not only quantitative ic debates, including lumping together ry solution for this issue has not been but qualitative too, as well as using the so substantially different concepts of found, in addition with the progress heritage of other scientific disciplines, classical liberalism, ordoliberalism and of globalization and the growing com- including primarily sociology, psychol- neoliberalism. Many papers empha- plexity of socio-economic relations, it ogy, and even anthropology and ecolo- sized that liberalism serves good the is becoming increasingly more com- gy. The new trends in economic theory rationality of economic policy but in plicated. Errors in the measurement include what is missing in mainstream this context it is important to distin- result in the errors in the statistics, economics, neoclassical economics, guish its basic variations. Meanwhile, which increases the risk of erroneous and in neoliberalism. Owing to this in the economic literature and jour- decisions. GDP is a rigid quantitative there are favourable conditions for the nalism liberalism, neoliberalism, and measure. This measure does not take economy to evolve from a model known ordoliberalism are often used inter- into account, however, the soft values, as “economic imperialism” into a wider changeably, almost as synonyms, with- so important for the quality of life and cooperation with other social sciences, out exact formulation of their essence business, such as confidence, peace of which prevents a sort of autism in eco- and essential distinction. Also profes- mind, aesthetics, etc. Extremely good nomic theory. Such an approach of sor Piotr Pysz points out to this issue. is here Einstein’s adage, growing ever economic theory could better serve the (Oldenburg - see also: http://www.pte. more popular (as a result of the devel- practice than in the past. pl/pliki/2/12/Orientierungen_139_ opment of internetization, virtualiza- The fundamental problems of eco- Maczynska_Pysz.pdf). This type of tion of economy) that not everything nomic practice were dealt with in conceptual disorder is not conducive that counts is countable, and not eve- a number of papers viewed against the to objectivization of assessments of rything that is countable, counts. It background of the analyses of state the consequences of the liberalization is therefore difficult to overestimate

Bulletin PTE No. 2 (65)/2014 I 37 From left: Professor Tomasz Szapiro, Rector of the Warsawe School of Economic, Professor Piotr Pysz, Fachhochschule für Wirt- schaft und Technik. Vechta/Diepholz/Oldenburg, Professor Lucjan Orłowski, Sacred Heart University (USA), Professor Elżbieta Mączyńska, President of the Polish Economic Society the role of the analyses focused on ra- improper organization of social and from income taxes which is accompa- tionalizing the measurement of socio- political system, rather than a lack of nied by an increase in public debt. As economic achievements. The need goods. The studies demonstrate the a consequence, the dependence of the for this type of analyses has been also need to move beyond economism, to state on the financial sector is increas- recognized and exhibited by the Euro- change the relationship between the ing, and at the same time the transpar- pean Union, which was expressed in sphere of economy, ecology and the so- ency of the relationship between these the Resolution of the European Parlia- cial sphere, as well as the necessity to two parties (the state and the financial ment from 2011 on “GDP and Beyond: define the new role of the state. The sector) is decreasing. At the same time Measuring Progress in a changing opposition of the state and the market, the declining tax revenues force the World”. Preliminary concepts of the characteristic of neoclassical econom- state to limit of investment and public so-called post-GDP models of socio- ics does not find justification because services which in turn drives the growth economic policy have been drafted each market must be regulated by the of lending to households by banks. The with more attention paid to quality, state, especially if the economic, eco- scarcity of public services such as edu- soft factors. Such an approach can pro- logical, and social targets are to be ho- cational services is forcing households mote sustainable growth of the social listically considered. This speaks for the to private funding. This is another fac- well-being. “optimum state” model rather than the tor increasing the share of the financial Another subject matter of the debate “minimum state” model. The analyses sector in the economy is increasingly closely linked to social well-being was on this topic are even more relevant be- driven by the loans which in the lit- the issue of preferences adopted in the cause there occur – burdened with an erature is referred to as “private Key- socio-economic policy. This is a fun- increasing risk – changes in the func- nesianism” (this is pointed out, among damental matter, requiring in-depth, tioning of the state, i.e., the transfor- others, by the German economist and comprehensive analysis of alterna- mation of the “tax state” into the debt political scientist W. Streeck). Viewed tive targets and possible directions of state. Because of the policy of tax cuts against this background, the problem socio-economic development. This is adopted in many countries – and car- of preferences in the socio-economic especially important since – as research ried under the slogan “starve the beast” development policy is exacerbating. shows – dysfunctions of the modern (i.e., the state) – noticeable is progres- Such a policy should in fact promote economy are largely a consequence of sive decline in state budget revenues the welfare of the country and society. The Congress of Polish Economists was focused on the theoretical and practical activities conducive to the welfare of the country and society. The debate at the Congress created an area for new reflections, questions, and proposals for solutions and recommendations on the most difficult socio-economic issues in economic theory and practice. The achievements of the congress consist of papers, problem questions and the debate, in which more than 600 people participated. I encourage you to read detailed materials of the congress available on the website of the Polish From left: Professor Bogusław Fiedor, Professor Marek Ratajczak, Economic Society, (http://www.kongres.pte.pl/ and Professor Tomasz Szapiro kongres/)

38 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

The 9th Congress of Polish Economists - summaries of selected papers

 Marek Belka* Why Only Discover? Lessons from the Current Crisis for Economics and Economic Policy-Making The sources of the current crisis and strategies of central banks. As institutional changes and changes are very diverse and quite complex far as the second issue is concer- in economic and regulatory policy in nature, but they certainly inclu- ned, the discussion of the propo- – economists should play and alre- de both gaps in economic theory sed remedies goes even deeper as ady have played a role not only of and mistakes in macroeconomic it is suggested that the rules gover- observers but also constructors of and regulatory policy. This diagno- ning state intervention in the acti- the reality. sis gives rise to postulates for exten- vities of the financial sector, both ding and modifying the economic domestically and on international * Professor Marek Belka is the theory as well as introducing chan- scale, should be amended. In all of president of the National Bank of ges in the institutional structure these areas – theoretical changes, Poland

 Andrzej Wojtyna* Is Crisis in Economics Deeper than in the Economy?

At the early stage of the present and the heterodoxy, has become a consistent alternative that could crisis mainstream economics star- much less likely. This paper at- challenge the mainstream. Accor- ted to be widely criticized both by tempts at highlighting some possi- ding to the third one, the world external commentators and by aca- ble explanations of why this shift economic crisis and the resulting demic economists themselves. One has lost its momentum. According criticism against economics have could then expect that following to the first hypothesis, this has provided strong incentives to fill this criticism, a radical change in been caused by the effective imple- gaps in theoretical and empirical the way research in economics is mentation of conventional and un- knowledge which in turn has made conducted and in the balance of conventional tools of macroecono- this criticism less convincing. power between main schools of mic policy. According to the second * Professor Andrzej Wojtyna chairs thought would occur. However, as one, the ongoing lines of research the Department of Macroeconomics the later stages of the world crisis within the heterodox economics at the University of Economics in have revealed, such a radical shift, are too dispersed and generally Krakow, member of the Scientific Co- particularly between the orthodoxy not sufficiently advanced to offer uncil of the Polish Economic Society

Bulletin PTE No. 2 (65)/2014 I 39  Marek Ratajczak* Economics and Economic Education in the Era of Financialisation of the Economy

The crisis that started with the the economic crisis with a crisis of lization has been used as a starting collapse of Lehman Brothers in Sep- economics. The paper is a résumé point to present desirable changes tember 2008 led, to a revival of the of the author’s views on and inte- in economics and economic educa- debate concerning the situation in rests in certain aspects of the crisis, tion at the university level. economics as a science and as a field transformation of the modern mar- * Professor Mark Ratajczak is Un- of education. Many participants of ket economy, and the development der-secretary of State at the Ministry that debate have started to equate of economics. Analysis of financia- of Science and Higher Education

 Andrzej Sławiński* The Limits of globalization: the case of the euro Area Intensification of globalization ring a time of crisis. The possibility some euro-zone countries most hit is achieved at the cost of limiting to reduce these costs depends on by the crisis, which in effect have the scope of autonomy of economic international political cooperation suffered considerable costs of their policy at the national level. This that would enable to create me- earlier resignation from possibility produces a trade-off between the chanisms of income distribution to conduct autonomous stabiliza- benefits derived from globalization towards countries particularly hit tion policy. and the costs caused by resigning by a crisis. The euro zone crisis illu- from possibility to conduct auto- strated this relationship in a spec- * Professor Andrzej Sławiński is nomous policy to keep the econo- tacular way. Deficiency of political the director of the Economic Institu- my on an equilibrium growth path. cooperation made it impossible to te of the National Bank of Poland, The costs of limited autonomy of create an effective mechanism that member of the Scientific Council of domestic economic policy grow du- would enable financial assistance to the Polish Economic Society

Selected papers from the Ninth Congress of Polish Economists have been published in the “Ekonomista” bimonthly No. 2/2014. More at: http://www.ekonomista.info.pl/ Abstracts of „Ekonomista” are reproduced in the International Bibliography of the Social Sciences. (IBSS): http://www.ibss.ac.uk and „The Central European Journal of Social Sciences and Humanities”: http://cejsh.icm.edu.pl

40 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

 Grzegorz W. Kołodko* New Pragmatism, or economics and policy for the future. Economics of moderation

To make it happen, especially to duce clean and renewable energy is cause concepts and proposals of missing, while there is a surplus of the economics as a normative dis- technologies for producing weap- cipline to be followed by relevant ons of mass destruction. There is measures by political economy, it is an abundance of banks with excess indispensable to grasp the essence liquidity, willing to grant loans to of the economics of moderation, naïve consumers, while there are which is what New Pragmatism is not enough loans for small enter- all about. The economics of mod- prises as it takes more effort to eration means adapting the volume monitor them. In many countries of human, natural, financial and and regions, there is an evident material flows to the requirement surplus of people who cannot be to keep a dynamic balance. Tur- properly nourished, while some- bulent transformations of the last where else areas that were prosper- several decades are caused both by ous until recently are becoming acute imbalances in various fields, depopulated. In some economies, and by their outcome. What we in the wake of speculative bubble are surrounded by is an economy on the real estate market, too many of a permanent imbalance as there houses and apartments were built, is always either too much of some- opportunities; moderate income which are now standing empty and thing or too little of something disparities rather than extremes getting dilapidated as there are no else. A surplus of something is that wear out vast numbers of buyers, while there is no short- available, while there is a constant people and lead to new revolu- age of people over there who have shortage of something else, and tions; toning down the marketing nowhere to live and are camping yet a good economy should be that folly which creates needs that are out. In some industries, there of moderation. Hence, what is also utterly detached from the realities is not enough manpower, while indispensable here is a thought of the effective demand. Last but in others it’s excessive. In some that promotes such desirable state not least, what should be the rule places surplus food goes to waste of affairs, namely the economics is not overdoing it when trans- while somewhere else there is not of moderation. forming more and more pieces of enough of it to meet elementary In the future, we need econom- the Mother Earth into goods that needs. In some hospitals doctors ics of moderation rather than that are meant to be sold at a profit by sit idly by, as there are not enough of excesses, imbalances and cri- their manufacturers, although pos- patients who can afford the treat- ses. All of those will happen more sessing and using them no longer ment, while in others people die than once to humanity and the improves consumer satisfaction. as there is not enough staff to save interconnected global economy as There is a shortage of some raw lives in time. well as to the national economies, materials and budgetary incomes, Generally speaking, in developed but it should be exception rather while we have an excess of garbage countries, there is an oversupply than a rule. What should be the and all kinds of debts contracted of consumer goods on the market, rule is knowing where to stop and by households, companies, entire and a shortage of the population’s adapting to real economic growth countries. A technology to pro- effective purchasing power. In con-

Bulletin PTE No. 2 (65)/2014 I 41 sumerism-tainted societies there are, but would be enjoying an age metals that are lacking. Not to is an indisputable excess of needs, of prosperity. mention common sense. There is while a shortage of economic ca- Once, at another stage of civili- a constant lack of time although pacity to satisfy them is evident. zation and at a much lower level it is wasted on a massive scale by While an overwhelming majority of overall development, in some the society as a whole. At the same of us is constantly short of funds countries attempts were made to time, there is always too much of to buy what we really need, a lot solve this syndrome by adopting something. Probably nothing in of entrepreneurs are afflicted by a bureaucratic supervision over this world is as permanently out surplus productive capacity which economic processes. Theoreti- of balance as the economy. they cannot exploit in a cost-effec- cally, this was meant to eliminate Let me say right away that this tive manner as there are no buyers wasteful overproduction crises will also be the case in the future, for goods they could manufacture. which are characteristic of a bad- because such is intrinsic nature of One might say maliciously: there ly regulated capitalist economy, economy. Mechanisms for balanc- is constantly too much or too lit- while in practice it led to the ing demand and supply flows are tle of everything, depending on emergence of a socialist economy working, better or worse, in a short the angle from which you look at with its inherent structural short- term and so are, even in longer it. In other words, there is nearly ages. The Hungarian economist time intervals, mechanisms for always both too much and too lit- János Kornai saw shortage as the balancing certain types of needs tle of nearly everything. Of econo- main constitutive feature of that and possibilities to satisfy them; mists, too. system and called it the “shortage still, balance can be reached only The greatest deficit in the con- economy”, while for its theoreti- temporarily. The natural condi- temporary economy is most pal- cal description he coined the term tion of the economy is a perma- pable where we need to be mod- “economics of shortage”1. Almost nent imbalance with momentary erate. Moderation is generally in all countries involved, except for episodes where lines of supply short supply. In the future, how- Cuba and North Korea, managed and demand, output and sales, in- ever, there should be as much of to get out of such an inefficient come and expenditure cross each it as possible. And this is one of system and there are no fears any- other. This is true of reality; in the fundamental canons of the body will be tempted again to try theoretical models, on the other political economy of the future. It using statism and command cen- hand, balance comes as easy as is necessary to create mechanisms tral planning as instruments of making relevant assumptions and for balancing economic flows and balancing the economy. what should cross at illustrative resources. One might say, again: However, overcoming the short- diagrams will always cross exactly that’s nothing new. Well, in the age syndrome by the post-socialist where it’s expected to. approach suggested here there is transition economies by no means That’s nothing to wring our a lot of new content, as it does solved the problem of the lack of hands about, because market not rely on the deceptive assump- overall balance. Also countries economy, also by its intrinsic nation, typical of some other trends that never experienced short- ture, has corrective mechanisms, in economics, that market money ages typical of real socialism are too, though they are pretty im- mechanisms are capable of solv- plagued by a number of deficits. perfect. When the deviation from ing the problems of deficiencies There is, sometimes, a shortage the balance is too high, forces are and surpluses, that is of dynami- of exports, of budget revenues, activated that correct the dispro- cally balancing the economy. If sometimes there are not enough portions. The problem is that very they were, we wouldn’t be going professionals in a given field, and often they do so too late or not through a time of turmoil, as we other times it’s certain precious strongly enough, or they miss the

1 János Kornai, “Economics of Shortage”, Amsterdam: North-Holland, 1980.

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point of balance, by going from baby, pour out the dirty water, and the crisis in the US after 20082. As lack of something to excess or the if it starts to wash itself one day, a result, in many cases, attempts other way round. Obviously, it perfect, but we can never do with- to improve regulations cause their raises overhead costs of resource out washing. Therefore, we need quality to deteriorate, from the allocation and reduces its efficien- to optimize the scope and instru- point of view of the general public cy. Therefore, market corrections ments of state interventionism, interest. must be sometimes triggered, while bearing in mind not to con- some other times speeded up, and fuse the means of economic policy * Grzegorz Kołodko is director of yet some other times reinforced, with its ends. The constant care to TIGER – Transformation, Integra- curbed or even blocked; they need ensure balance in all of its sectors tion and Globalization Economic regulating. Who else than the is an issue of great importance, Research, former Deputy Prime state should do that? but it’s still a means the policy Minister and Minister of Finance It is necessary to use state inter- uses to achieve the end, which is (1994-1997 and 2002-2003), au- ventionism to assist market correc- development. The balancing of thor and editor of 46 books, his tions of the intensity of flows (in- the economy is meant to foster works have been translated into 26 come and expenditure, supply and rather than curb it. languages, member of the Scientif- demand, supplies and market) and Well, but each action causes re- ic Council of the Polish Economic of changes in resources (property, action. Teams of experts, mostly Society savings, stocks). It would be good lawyers at large corporations that Excerpt of paper from the Con- to end ideological disputes on that can afford it, rack their brains over gress, published in: „The New Prag- matter and focus on which inter- how to be compliant with the law, matism, or economics and policy vention techniques to use. If they that is with the constantly chang- for the future”, „Acta Oeconomi- are inadequate, you can do more ing regulations, and still come out ca”, Vol. 64 (2)/2014, pp. 139-160 harm than good because inter- ahead. Business must be profit- ventionism is a risky business. To able, legal and ethical – these are avoid the resulting errors, neolib- the three sacred principles of New eralism suggests throwing out the Pragmatism. Business should be baby with the bathwater: not inter- ethical, it doesn’t have to be prof- fere with market processes as they itable, it will be compliant with have a capacity to self-adjust or to the law because we are the ones automatically balance themselves. to establish it – these are the fea- State capitalism proposes not to tures of state capitalism. Business throw out the baby but to keep must be profitable and legal, and the dirty water, too, excessively in- it may be unethical – these are terfering with resource allocation, the three canons of neoliberal- on many occasions, which reduces ism. How eagerly and, to a great the achievable efficiency. extent, effectively, it can, in nearly New Pragmatism calls for a well- any situation, promote the inter- balanced role of the state and a su- ests of specific groups, especially pra-state economic policy coordi- those of the financial circles, is il- nation, which is meant to correct, lustrated by the attempted legis- or, when necessary, to strengthen lative amendments and by results market processes. It says: wash the of those adopted in response to

2 Ron Suskind, “Confidence Men. Wall Street, Washington, and the Education of a President”, New York: Harper, 2011.

Bulletin PTE No. 2 (65)/2014 I 43  Jerzy Wilkin* Why did economics lose its soul? Believing that they can explain the world better than anyone else, blinded by pride, economists have imposed on us the way of life, values, and dreams.

Professor Andrzej Wojtyna, Professor Jerzy Wilkin, and Professor Bogusław Fiedor

One of the most important ques- economy is a sanctity, which serves New York Times”, Stephen D. tions asked during the recent 9th an even greater sanctity: consump- King announced the “The End of Congress of Polish Economists was tion. For decades, Americans have Western Affluence”, concluding whether the current economic cri- consumed more than they pro- that “a half-century of remark- sis, particularly financial, is also duced, in its own way sponging off able one-off developments in the a crisis of economics as a science? the world economic system. Why industrialized world will not be The papers often emphasized that do economists obsessed with the repeated.” I would add: apparent the last decade has resulted in the idea of equilibrium accept it, and developments! development of many sophisticated even support? Because it drives the It is a historical paradox that economic models and theories. The production and economic growth, today relatively poor countries prevailing view was, however, that which for most economists are the and developing countries save the the economy lost its soul, its source measures of progress. most while the richest run into of sensitivity, and moral judgement. Except that even this limited debt quickly, mainly due to the Perhaps the loss of the soul does not progress is beginning to fade. excessive consumption. A large allow many economists to under- When consumer loans emerged part of these savings goes to the stand their sins and mistakes (...). in the 1920s no one expected they financial markets of the U.S. and would lead to excessive economic other wealthy countries. What economy, stupid? growth and consumption. Future Therefore, Clinton’s successors Bill Clinton’ slogan: “It’s the generations will have to deal with should begin to ask: What econo- Economy,. Stupid!” has been the legacy of their predecessors’ my, stupid!? Or: Why did I let my- popular for years in the U.S. It is unbridled consumption. In Octo- self be fooled? And what was the no coincidence, because the U.S. ber 2013, on the pages of’ “The role of economists in this?

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Venal economy picture of the world. Not all sadly. For a world in which a per- Although economics emerged that is important appears on the son who wants to succeed “should from philosophy, it departed far market! wake up each morning ready to from the disinterested pursuit That economics is “venal” (or bite the ass off a bear.” Of course, of truth, goodness, and beauty. “saleable”?), is shown by the evo- bearing in mind that it is worth It has become a science serving lution of the students’ interests in biting the stock exchange bear utility - especially for those who the department where I have been only when a lot of money is in the can pay well for this utility. After working for over 40 years. This is background. all, these were economists who a good department providing stu- In 2012, the year before receiv- launched a slogan:” You are only dents with a sound knowledge of ing the Nobel Prize in Economics, worth what the market is willing micro-and macroeconomics, and Robert J. Shiller in a speech to the to pay for you or for your service.” quantitative methods, with an Yale University finance graduates Preaching the benefits of the free academic tradition of teaching said: “Best of luck to you as you market, they widened at the same economics in the context of other leave the academy for your cho- the market their services. social sciences and humanities sen professions in finance. (...) One of the biggest deficiencies (e.g., history). Your training in financial theory, of economics is underestimating But this tradition dies out, also economics, mathematics, and what is not valued by the mar- under the pressure of students’ statistics will serve you well. But ket, but is an important value for expectations. The students are your lessons in history, philoso- individuals and societies. Econo- most interested in finance, bank- phy, and literature will be just as mists continue to focus primarily ing, and accounting, and surpris- important, because it is vital not on the market goods and services ingly little in international eco- only that you have the right tools, whose impact on human well- nomics (despite the distinguished but also that you never lose sight being is sometimes questionable, professionals at the faculty). The of the purposes and overriding so- and even negative. Meanwhile, “Economics of Public Sphere” cial goals of finance.” bad measurers send bad signals will probably be liquidated be- Looking at the curricula for and are wrong incentives. This cause students are not interested. economics and finance in Poland is often the case with the use of There is less and less history of and other countries, I have the GDP, a measure, which does not economic thought, economic his- impression that Shiller’s hopes appreciate the value of leisure, tory, and other social sciences in are illusory. public services, human relations, the curriculum. I was unpleasant- The text is an abridged version non-market manufacturing, and ly surprised when one of the best of a paper prepared for the 9th services in households. As the au- doctoral students complained Congress of the Polish Econo- thors of a report on the measures that he had to attend a lecture on mists, which took place on 28- of the development of the team ethics management, and would 29 november 2013 in Warsaw. appointed by Nicolas Sarkozy, rather spend the time on an ad- The text appeared on 21-22 De- the former president of France ditional course of mathematical cember 2013 in the Christmas wrote,” what we measure affects techniques for analysing financial Magazine of Gazeta Wyborcza. what we do. If we have the wrong market. He spoke with contempt metrics, we will strive for the and irritation about these manda- wrong things. (…) our statistical tory classes in ethics. and accounting system to a large * Jerzy Wilkin - member of the extent creates a perspective from Bite the ass off a bear Polish Academy of Sciences, a pro- which we perceive and analyse He would be an economist fessor at the Faculty of Economic the world”. perfectly prepared for the reality, Sciences, Warsaw University, mem- Sometimes I have the impres- which Michael Lewis of Salomon ber of the Scientific Council of the sion that economists falsify the Brothers described, I thought Polish Economic Society.

Bulletin PTE No. 2 (65)/2014 I 45  Stanisław Rudolf

Forum of Presidents of Economic Societies While participating in subsequent congresses of the International Economic As- sociation and the European Economic Association I could observe relatively few participants from the countries of Central and Eastern Europe. This is especially true of young economists who rarely participate in congresses. This is also due to lack of funds, and often due to a lack of infor- Participants of the Forum of Presidents of Economic Societies from Central and Eastern Europe mation on congresses. Young economists do not realize how herefore, the National Board of worth noting that the PTE covered important for their scientific T the PTE took the initiative to the costs of the stay of participants in organize the Warsaw Forum of Presi- the Forum in Warsaw. development is to participate dents of Economic Societies from the The Forum should help to estab- in such international events. countries of Central and Eastern Eu- lish and develop contacts between The experience of the Polish rope. The Forum was held on 27-28 economic Societies of the countries Economic Society leads to the September 2012 at the headquarters of Central and Eastern Europe, ena- of the National Board of the PTE in bling them to know each other, gain conclusion that organizations Warsaw. It was attended by the Presi- specific knowledge about the extent of economists in the countries dents of the organization of econo- and forms of their activity, their role of Central and Eastern could mists from: Hungary (The Hungar- and position in different countries, improve promotion of young ian Economic Association), Latvia etc. The aim of the Forum was to find (Economists Association 2010), Rus- areas for possible cooperation, deter- economists on the interna- sia (The New Economic Association) mine its prospects for the near and tional forum. and Poland (Polish Economic Soci- distant future as well as the exchange ety). The Secretary General of the of experience in all areas of activi- International Economic Association ties. If there were no previous direct was the honorary guest of the Forum. contacts between our organizations, The representatives of economic as- these purposes should be considered sociations from Romania (The Gen- very important, although difficult to eral Association of Economists from implement in a short time. Romania), Russia (The International Consecutive sessions and meetings Union of Economists), and the Czech served these purposes. The represent- Republic (The Czech Economic Asso- atives of the various Societies have ciation) took part in the preparations made their short presentations, tak- Andrzej Raczko, Stanisław Rudolf, for the Forum, but for various reasons ing into account the history of their Joan Esteban did not take part in the Forum. It is organization, its status, activities, its

46 I Bulletin PTE No. 2 (65)/2014 VADEMECUM VADEMECUM of Economic Societies in Central and Eastern European Countries of Economic Societies in Central and Eastern European Countries Polish Economic Society

Polish Economic Society

 Stanisław Rudolf position, its opinion-forming role, such meetings (e.g., every two years), etc. These were very inspiring pres- each time in a different country. The entations, providing much food for meetings could complement the con- thought and conclusions. Noteworthy gresses of the European Economic As- is the diversity of their activities, dis- sociation in which young economists tinctness of priorities, etc. It is worth from this part of Europe rarely partici- noting that some of the participants pate. To overcome the financial barri- of the Forum in the past served im- Vademecum er which is currently a major obstacle of Economic Societies portant politicalForum ofposts the presidents in oftheir economic coun societies - for young economists, the organizers in central and eastern european countries in Central and Eastern tries (Deputy PrimeWarsaw, Minister, 27-28 september 2012 Minis- European Countries of the next meetings should ensure ter of Foreign Affairs), which had an low attendance fees. impact on the38 perception of specific 39 Forum participants positively evalu-

problems. u Organization of consecutive Fo- ated the declaration of cooperation The PTE issued and provided the rums of Economic Societies of prepared by the National Board of the participants of the Forum with the the Countries of Central and PTE which was popularized at the Vademecum of Societies of Econo- Eastern Europe end of the Forum. The representa- mists of the Countries of Central and u Organizing conferences, sympo- tives of the various Societies declared Eastern Europe. The Vademecum was sia, and seminars their willingness to cooperate with issued in English and contained ba- u Preparing joint publications each other which should lead to the sic information about the Societies u Presentation of common posi- strengthening of the position of our participating in the Forum and the tions in international forums (e.g., in Societies, both in individual coun- contact details of other Societies in the forum of international organiza- tries and in the international forum. this part of Europe. Much attention tions such as the IEA and EEA) Such cooperation may be bilateral was devoted to the activities of the Undertaking projects of an interna- (exchange of scientific publications, International Economic Association. tional nature, such as joint applica- exchange of delegations, establish- Forum participants highly appreci- tions for grants from the EU, conducting contacts at the level of Branches, ated our Vademecum, pointing to its ing joint research, organizing summer participation in national conferences, important role in the process of inte- schools, etc. conventions, etc.), or may involve gration of Societies of economists. Organising Forum of Young Econo- a number of joint ventures of many The hosts of the Forum prepared mists of the countries of Central and Societies (joint research, joint appli- a series of proposals for cooperation Eastern Europe (up to 35 years). cations for grants, joint publications, that were the subject of the Forum’s The participants considered the conferences, etc.). discussion. These proposals involved: initiative to convene the Forum of All participants considered it expe- u Inviting representatives of other Presidents of Societies of Economists dient to organize the next meetings of Societies to national congresses, as a very necessary, and declared that the Presidents of Societies of Econo- conventions, anniversary cele- it was an important step in the inte- mists. They suggested, however, that brations and other large events gration of our Societies. They also it would be necessary to change their u The exchange of scientific pub- spoke in favour of continuing this formula. A proposal was made to lications, mainly in English kind of action. Such processes should combine the meetings with seminars u Websites in English and with lead to the development of bilateral or conferences on topics agreed upon information that may be of in- cooperation between our organiza- in advance. However, these would not terest to other Societies tions, as well as to projects involving be conferences with lots of papers, u Establishing cooperation be- all or most of our organizations. The but working meetings, similar to the tween the various Societies, in- participants pledged to take action round-table conference, where each cluding Branches aimed at attracting new organizations Society would limit themselves to the u The exchange of delegations be- of economists for such cooperation. presentation of one or two papers. tween the Societies The proposal to organize the Forum There was also a proposal that the first u Assistance in obtaining intern- of Young Economists of the coun- such conference would be devoted to ships, scholarships, promoters of tries of Central and Eastern Europe the evaluation of the transformation doctoral theses, reviewers, etc. aroused considerable interest among processes (e.g., “The Pros and Cons uJoint ventures of Economic So- the participants. The participants were of Transformation”). Such meetings cieties in favour of cyclical organization of could be held in different countries.

Bulletin PTE No. 2 (65)/2014 I 47  Jan Toporowski Polish economists known in the world A number of prominent economists of the twentieth century were associated with the Polish Economic Society. Among them, the most famous were Oskar Lange (1904–1965 ), Michał Kalecki (1899–1970), and Tadeusz Kowalik (1926–2012).

skar Lange was president of the Introduction: Tadeusz Kowa- OPTE in 1965. It was here that lik and the Political Economy Michał Kalecki delivered his great 1 speech at the Second Congress of of the 20th Century Economists, published his papers in Riccardo Bellofiore, Ewa Karwowski University with outstanding results in the „Ekonomista” issued by the PTE, and Jan Toporowski 1951. Supervised by Oskar Lange, he Tadeusz Kowalik (1926-2012) is and in 1967 was awarded the PTE studied for a doctorate in Economics best known as the editor of the two Oskar Lange Award. In turn, Tadeusz on the work of the Polish sociologist great Polish political economists, Kowalik was the initiator of many de- and economist Ludwik Krzywicki; Michał Kalecki (1899-1970) and Os- bates, and the author and reviewer this was awarded to Kowalik in 1958. kar Lange (1904-1965), an advisor to By then he was already editor of the of publications in the „Ekonomista” the Polish trades union movement scientific journal and published his weekly newspaper Życie Gospodarcze Solidarity during the 1980s, when it (Economic Life), where he promoted books in the PTE Press. played a key part in bringing down the reform of the over-centralised sta te Profiles and achievements of these Communist Government in Poland, economic system. He lasted only two outstanding figures have been pre- and subsequently a fierce critic of the years in this position before being re- sented in the book: „The Legacy of capitalism established in his country. moved when the ruling party started Rosa Luxemburg, Oskar Lange and In his work Kowalik challenged both to close down the discussion on re- Michal Kalecki: Volume 1 and “Eco- the commonly accepted view of the form. However, under the patronage nomic Crisis and Political Economy”: ‘Keynesian Revolution’ and the in- of his supervisor he kept his position Volume 2 of Essays in Honour of Ta- ability of Polish communists to come as Lecturer in Political Economy at deusz Kowalik which appeared in 2013 to terms with their revolutionary past the social science university run for and was released by Palgrave Macmil- and find a place for themselves in the activists in the ruling party, and com- lan, (London). http://us.macmillan. modern world. menced research for his post-doctoral com/thelegacyofrosaluxemburgoskar- Tadeusz Kowalik was bom on 19 degree, the habilitacja. langeandmichalkalecki/Riccardo- November 1926 in the village of Ka- During his first visit to the UK, in Bellofiore, http://us.macmillan.com/ jetanówka outside the city of Lublin the early 1960s, Kowalik defended economiccrisisandpoliticaleconomy/ in Eastern Poland, traditionally the a version of the then fashionable RiccardoBellofiore poorer, more backward part of the Convergence Thesis, that the com- We present excerpts from the book country. He completed his under- munist and the capitalist worlds were and encourage you to read. graduate studies in law at Warsaw both gradually becoming welfare

1 The Legacy of Rosa Luxemburg, Oskar Lange and Michal Kalecki: Volume 1 of Essays in Honour of Tadeusz Kowalik (Palgrave Macmillan, London 2013), p. 1-2

48 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

 Jan Toporowski technocracies tempered by democ- edited prolifically in the underground of Marschak from Oxford, the Insti- racy. In London, Kowalik met Isaac press in support of Solidarity and its tute of Statistics there was leaderless, Deutscher, the distinguished Marxist principles of democratic syndical- and offered a clear opening for Kalecki historian and member of the pre-war ism. Here he drew on the political to continue the statistical research Communist Party of Poland (KPP). programmes and critiques of Soviet that he had been doing in Cambridge. The KPP had been disbanded in 1938 industrial organisation put forward in Keynes continued to support Kalecki and its leaders executed by Stalin. Poland in the 1920s and 1930s by non- at meetings of the NIESR Council; he In October 1965, Lange died. By Communist Marxists, among them put forward there his suggestions for then Kowalik was working with Ka- his mentor Oskar Lange. There were Kalecki’s research agenda at Oxford. lecki in criticising the economic also the themes of reformed social- Lange had the advantage of being policy failures of the government and ism that Kowalik had been advocating able to join Keynes’s dispute with Tin- distortions in economic planning. He since the 1950s.(…) bergen on economic method without was also collaborating with the phi- The resort to Kalecki2 the need to justify a specific body of losopher Leszek Kołakowski and the Jan Toporowski quantitative work, as Tinbergen was economist Włodzimierz Brus, using The general view is that Keynes did obliged to do. Lange was therefore able their party positions to protect dis- to concede points on which Keynes’s not come out well of his critique of sidents within and outside the ruling view was (probably) incontrovertible. Tinbergen, with the implication that party. In the crackdown on Jews and At the same time, Lange, was unusual essentially he did not understand ‘revisionists’ in 1968, Kowalik was in combining a strong interest in sta- the new mathematical economics expelled from the Party. The meet- tistical and mathematical economics, that Tinbergen represented and that ing with Deutscher was put forward with an equally strong commitment Lange and Marschak championed as evidence of the ideological laxity to economic philosophy and method- (‘Introduction’, Hendry and Morgan, that needed to be purged, despite ology. This gave him a stronger posi- 1995). Keynes’s apparent failure to the formal rehabilitation of the KPP tion from which to challenge Keynes’s pursue the matter into a methodo- in 1956. However, Kowalik retained philosophical and methodological logical study that was more systematic his position at the Polish Academy of objections to Tinbergen. The writer than incidental criticisms of a particu- Sciences. Much of his output for the of the editorial notes to Lange’s Col- lar author has generally been taken to next two decades appeared under the lected Works therefore makes perhaps indicate a less than serious approach name of friendly associates who were too modest a claim that the published to the matter, caused by his own frail not subject to the ban on publica- exchanges between Keynes and Tin- tion, most notably Edward Lipiński, health and the emergency of war. at that time the oldest and most However, there is now evidence that distinguished Polish economist, who Keynes was somewhat more persist- had given Kalecki his first job in 1929. ent in his view than might be inferred After Kalecki’s death in 1970, Kowa- from his published exchange with lik took on the additional responsibil- Tinbergen. He appears to have decid- ity of supervising the editing by Jerzy ed that his critique could best be pur- Osiatyński of the Kalecki Collected sued with a more technical approach. Works. He identified Kalecki as a possible ally From 1968, Tadeusz Kowalik was in this. active in unofficial, dissident, uni- Kalecki was, according to his later versity discussions; wage austerity account relayed through the recol- was reimposed in Poland after 1976, lections of his widow, becoming dis- leading to a resumption of strikes. illusioned with Cambridge. His work These culminated in the emergence there had been subject to methodo- of the Solidarity trade union. In 1980 logical criticism. His funding from the Kowalik travelled to Gdańsk to assist National Institute for Economic and the workers in their negotiations with Social Research appeared, however, the Polish government. He wrote and secure. With the continued absence

2 Tp. 151-153

Bulletin PTE No. 2 (65)/2014 I 49 bergen covered the main points in a more methodological and institu- lecki’s investors, instead, simply looked Lange and Marschak’s contribution. tional criticism of econometrics as his at the degree of capacity utilisation It is understandable that two writers contribution to the festschrift for Os- (a flexible accelerator or capital-stock who were making their careers pro- kar Lange (Kalecki, 1964). adjustment) and projected the current moting a statistical and mathemati- Kalecki and Keynes3 profit rate into the future. cal approach to economics would not Third, Keynes had no particular D. Mario Nuti wish to prolong a public dispute over views about income distribution, in In my Cambridge days (1963-1980) a methodological approach to which spite of post-Keynesian developments I heard Joan Robinson lavish repeated they had nailed their academic col- in this area, while Kalecki had two dis- praise on Kalecki’s anticipation of ours. But the issues which they raise tribution theories, one based on the Keynes’s General Theory (1936). relative propensities of capitalists and continue to haunt economics (see, ‘It must be rather annoying for you’, workers to consume - ‘workers spend for example, Hendry and Morgan, Robinson wrote to Kalecki in 1937, ‘to what they earn, capitalists earn what 1995; Toporowski, 2002) if only be- see all this fuss being made over Key- they spend’ - akin to the post-Keyne- cause when the respective parties to nes when so little notice was taken of sian approach, and one based on the these methodological disputes enter your own contribution’ (reproduced average degree of monopoly aggregat- into dialogue, as they did in the case in Patinkin, 1982; she wrote similar ed over all producers. of Lange, Marschak and Keynes, the acknowledgements in 1964, 1976 and Fourth, Keynes’s approach lent itself terms they used did not have the elsewhere). She was not alone in mak- to combination with an accelerator to same meaning for each of the parties. ing this claim on Kalecki’s behalf: ‘Ka- produce economic cycles – as did Roy For the statisticians, economic theory lecki’s greatest achievement, among Harrod’s, followed by those of many meant relations between variables, many, was undoubtedly his complete others. Kalecki had an armoury of whereas for Keynes, economic theory anticipation of Keynes’ General Theo- complete models of economic cycles. meant the linguistically unambigu- ry’ (Klein, 1975, 1947; see also Lange, Finally, both Kalecki and Keynes ous specification of concepts and the 1939). In fact, before the publication made outstanding contributions to relations between them. Lange and of Keynes’s General Theory, Michał other areas of economic thought. Marschak were quite happy to concede Kalecki had published in Polish (1933c, Keynes’s ideas ranged from probabil- to Keynes the possibility of structural 1934; reprinted in English in Kalecki, ity theory to fiscal policy to the design change within a period covered by sta- 1971b) and in English (1935a), a de- of the international monetary system, tistical data. But structural change in mand-determined theory of national Kalecki’s from the theory of growth this context meant changes in model income and employment, centred on of the capitalist economy to the the- coefficients, whereas Lange clearly investment and with an expenditure ory and practice of socialist economic suggested that the more interesting multiplier, similar to that of Keynes. planning to original criteria for the se- structural changes are the ones in the But his intellectual roots, methodol- lection of investment projects. institutions that make up a particu- ogy and arguments were original - Both Kalecki and Keynes were great lar mode of production. Keynes was and so were Keynes’s;.there are many economists on their own account and clearly keen that these issues should highly significant differences between merits; so, laying unnecessary stress on be more thoroughly explored. Hence the two (see Nuti, 2004). the relatively small overlapping of their his attempt to place the critique of First, money and the money inter- demand-determined theory of employ- Tinbergen onto Kalecki’s research est rate, which figure prominently in ment and income -no matter how im- agenda at Oxford. In fact, despite his Keynesian theory and in the very title portant -detracts from their greatness. technical facility, Kalecki was perhaps of the General Theory, have no role in the last person who should have un- Kalecki, for whom only the long-term Kalecki’s political cycle dertaken such a fundamental analysis. interest rate is relevant, within the Besides his mathematical models He was not a trained statistician, and limits set by the principle of increasing of the economic cycle, Kalecki (1943) his knowledge of statistical theory was risk of credit-financed investment. produced a model based on the po- practical rather than methodological. Second, Keynes had a view of the vol- litical economy of government fiscal In any case, there is no evidence that atility of expectations and the depend- policy and of capitalist behaviour. Kalecki took up Keynes’s suggestion, ence of investment on ‘animal spirits’ In theory full employment could although in later years he attempted as well as ‘the state of the news’. Ka- be achieved via additional govern-

3 Economic Crisis and Political Economy: Volume 2 of Essays in Honour of Tadeusz Kowalik (Palgrave Macmillan, London 2013), p. 63-65.

50 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society ment expenditure were it not for the ... but suicidal policies threshold – should trigger automatic government’s and capitalists’ need to persistiv debt restructuring and bail-in. reproduce labour unemployment in In conclusion, the Keynesian-Ka- order to keep wage rates and labour Such an amazing, cumulative and leckian view of capitalist dynamics is discipline under control. final discrediting of the alleged expan- alive and well. The IMF itself has been In a nutshell, ‘A solid majority of sionary (severe at that) fiscal contrac- reviving it and providing theoretical economists is now of the opinion that, tion approach and the associated 90 and empirical backing for it by stress- even in a capitalist system, full em- per cent threshold to debt sustainabil- ing the high cost of fiscal consolida- ployment may be secured by a govern- ity does not appear to have had much tion but at the same time continuing ment spending programme, provided impact on actual policies, especially on to officially recommend and impose there is in existence adequate plant German-led European policies, with such fiscal consolidation. While pro- to employ all existing labour power, EU and especially EMU countries tied viding the strongest case for a fiscal and provided adequate supplies of to a ‘suicide pact’ (Joseph Stiglitz) of stimulus, IMF research is being used necessary foreign raw-materials may so-called growth and stability. even by more enlightened officials to The latest EU fiscal compact, or be obtained in exchange for exports’ recommend gradual fiscal consolida- TSCG (Treaty on Stability, Coordi- (Kalecki, 1943: p. 347). As long, of tion instead of the fiscal stimulus that nation and Governance), demanded course, as such a government spend- would be appropriate. Obstacles to that a balanced budget provision be ing programme is ‘financed by bor- full employment policies are still of inserted in member states’ national rowing and not by taxation’. However, a political nature today (resistance to constitutions, subject to a maximum we may expect the opposition of the a capital tax to service exceptionally structural deficit of 0.5 per cent of leaders of industry [to such a policy high sovereign debt, in addition to the GDP. There are penalties and auto- of full employment] on three planes: drive to maintain workers’ discipline matic adjustments in case of non- opposition on principle to govern- through unemployment). The time observance, subject to the verification ment spending based on a budget for a Kaleckian (and Keynesian) revival and rulings of the European Court deficit; opposition to this spending is now overdue, and until it takes place of Justice. Financial assistance pro- being directed either towards public we are all condemned to suffer the im- grammes under the ESM - the Eu- investment -which may foreshadow poverishment and the unemployment ropean Stability Mechanism, which the intrusion of the state into the new caused by the deepest man-made eco- came into operation in March 2012 spheres of economic activity – or to- nomic crisis in human history. – were, from March 2013, conditional wards subsidising mass consumption; on prior TSGC ratification. About the Authors: opposition to maintaining full em- From 2014, countries exceeding the Ewa Karwowski is an Economics PhD ployment and not merely preventing statutory debt/GDP ceiling of 60 per Student at the School of Oriental and Af- deep and prolonged slumps. (Kalecki, cent, required by both the Maastricht rican Studies, London, UK. She completed 1943: p. 353) Treaty and the Stability and Growth her Masters in Development Economics at Such objections subside in the Pact, are expected to reduce the ex- the School of Oriental and African Studies slump, and are revived in the boom. cess debt by 1/20 of the current gap in 2008. With lasting full employment every year until the ceiling is reached. Riccardo Bellofiore is Professor of Politi- workers would ‘get out of hand’, For a country like Italy, which is at over cal Economy at the University of Bergamo, and the ‘captains of industry’ would 130 per cent, this involves a budgetary Italy. He teaches Monetary Economics, be anxious to ‘teach them a lesson’. surplus of over 3.5 per cent a year for Advanced Macroeconomics, International Moreover, the price increase in the 20 years. Monetary Economics and History of Eco- upswing is to the disadvantage of Recently, the IMF criticised the nomic Thought. small and big rentiers and makes handling of the Greek crisis over the Jan Toporowski studied Economics at them ‘boom-tired’ and ready to ally last four years by the troika (EC, ECB, Birkbeck College, University of London, with capitalists. IMF) but concluded that all was for and at the University of Birmingham, UK. Their pressure would probably in- the best and that policies would not He worked in fund management and in- duce the government to return to the be any different today in the same cir- ternational banking and as a Visiting Re- orthodox policy of cutting down the cumstances. In July 2013 a conference search Fellow at the Bank of Finland. His budget deficit. ‘A slump would follow of German economists advocated that most recent book is Michal Kalecki An In- in which government spending policy a debt/GDP ratio of 90 per cent – Re- tellectual Biography: Volume I Rendezvous would again come into its own’. (…) inhart and Rogoff’s fated but dubious in Cambridge 1899-1939 (2013).

Bulletin PTE No. 2 (65)/2014 I 51 The Guardian on the Polish economist

Recently, the British “The Guardian” referred to the views of Michał Kalecki (Aditya Chakrabortty, Monday 14 January 2013)

ere is the excerpt from the article: H “The single best guide to what hap- pened in Britain last week was published in 1944. Naturally, its author was a Polish economist. Even economics students may not have heard of Michał Kalecki – but it’s the discipline that got small, rather than his legacy. In his time, Kalecki was recog- nised as having anticipated some of Key- nes’s most important ideas, years before the Master published his General Theory, and he exerted a big influence on such leg- endary Cambridge thinkers as Joan Robin- son and Nicky Kaldor.”

More at: http://www.theguardian.com/ commentisfree/2013/jan/14/deepening-mess- words-polish-economist

52 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

The Scientific Council of the PTE special distinction Award The Scientific Council of the PTE granted a special distinction to Professors Ruslan Grinberg and Alexander Rubinstein of the Russian Academy of Sciences for the book Professors: Elżbieta Mączyńska, Ruslan Grinberg, entitled “Economic Socio-dynamics”. Alexander Rubinstein, and Bogusław Fiedor he award was presented on 28 of the Council. – This book is an within mainstream economics, in TNovember 2013, during the 9th important voice in the contempo- connection with the contemporary Congress of Polish Economists by rary theoretical discourse and in the crisis phenomena – justified Profes- prof. Bogusław Fiedor, Chairman discourse on the need for changes sor Fiedor. Prize for the best economic book On 28 November 2013, during the 9th Congress of Polish Economists the most important scientific award, the Professor Lipiński Award was ceremoniously handed out.

From left: Michał Waszczuk, Zuzanna Ajchel i Michał Puchalski The final of the Economic Knowledge Competition Dr. Joanna Tyrowicz and professor Eugeniusz Rychlewski uzanna Ajchel of lin. The results were an- Zthe T. Czacki 27th nounced on 6 April 2014, his award has been employment in Poland”. Grammar School won in Jachranka near War- Tgranted for more than – The book comprehensively this year’s edition of the saw. Earlier, 100 finalists 20 years by the PTE, for the discusses the phenomenon 27th Economic Knowl- met with Marek Belka, best book adding new values of hysteresis in the Polish la- edge Competition, or- the president of the to the achievements of eco- bour market , in the regional ganized by the PTE. Sec- Polish National Bank. nomic sciences. The jury, labour markets, and in local ond place went to Michał This year the compe- headed by Professor Eu- labour markets, but also cov- Puchalski from the same tition attracted over 14 geniusz Rychlewski decided ers practically all the prob- grammar school, and the thousand students from this year to grant the award lems concerning the labour third to Michał Waszczuk 896 schools throughout to Dr. Joanna Tyrowicz for market in the Polish economy of the 3rd Unia Lubelska the country. her book „Hysteresis of un- – said Professor Rychlewski. Grammar School in Lub-

Bulletin PTE No. 2 (65)/2014 I 53 OECD „Economic Survey: Poland 2014” On 11 March 2014, at the headquarters of the PTE, there was a presentation Peter Jarrett (PhD), Head of Division, Coun- of the economic review of the OECD try Studies Division1, OECD Economics Department; Ewa Balcerowicz (PhD), Chair- „Economic Survey: Poland 2014” orga- woman of the CASE Supervisory Council nized by the Polish Economic Society (PTE), CASE – Center for Social and Economic Research, and Representatives of the OECD, Pe- the Society of Polish Economists (TEP). ter Jarrett and Antoine Goujard ex- plained that this time, the report focused on the labour market. OECD experts analysed, among others, the increasing dependence of the labour market on people of retirement age, unemployment, and rules for grant- ing pensions, the size of the tax wedge, pre-school education and youth unemployment. They also presented suggestions for improving the functioning of these areas. Giving examples of other EU countries, they Ryszard Petru, President of the Society of polish Economists (TEP); Antoine Gou- proposed a list of ways to boost the jard (PhD), OECD Economics Department, Peter Jarrett (PhD), Head of Division, economy and stimulate long-term Country Studies Division 1, OECD Economics Department; Ewa Balcerowicz (PhD), Chairwoman of the CASE Supervisory Council; Anna Ruzik-Sierdzińska economic growth. (PhD), Social Security Programme Director at CASE.

First place in the

“Economicus” competition

The Polish Economic Society won first aster privatization of pensions in Po- place in the “The best book dissemi- land” by Professor Leokadia Oręziak). NAJLEPSZA KSIĄŻKA SZERZĄCA WIEDZĘ EKONOMICZNĄ nating economic knowledge” category The results were announced at a cer- in the “ECONOMICUS” competi- emony held on 23 May 2014 during Wydawnictwa tion organized by Dziennik Gazeta the Warsaw Book Fair at the National Polskiego Towarzystwa Prawna, for a book entitled “O lepszy Stadium. The competition was held Ekonomicznego

ład społeczno-ekonomiczny” [“For for the fourth time, the best economic a better socio-economic order”] by and business books issued in the past „O lepszy ład społeczno-ekonomiczny” Tadeusz Kowalik Tadeusz Kowalik. (The first prize was year were awarded. awarded joint to the PTE and to the http://www.ksiazkiekonomiczne.pl/art/ Instytut Wydawniczy Książka i Prasa show/243/o-lepszy-lad-spoleczno-eko- for a book “Open Pension Funds: Dis- nomiczny

54 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

Polish investments The Investment for development Future of Poland During the 25 years of the Polish transformation and 10 years of membership in the European Union, Poland has made a giant leap forward. Particularly visible changes have taken place in the field of economic and social infrastructure. The EU funds were an important support for these changes. In the coming years the “Polish Investments for Development SA” should play an increasingly important role in this respect, conducting investment activities in areas such as energy, transport, and industrial and telecommunications infrastructure. Below we present some basic information on the subject. olish Investments for Develop- team assessed over 100 project ideas, fitting of an existing Kortowo coal- Pment S.A.“(PIR), established as out of which over fifty were classi- fired heating plant, which is to act as the equity vehicle of the Polish Invest- fied as viable projects, of which seven a peak energy source. The new facility ments program, aims to provide fund- passed the initial approval and moved will be operating on the basis of alter- ing through equity and mezzanine to the due diligence phase. The most native, communal waste-derived, fuel instruments to viable special purpose important of these were: which will be produced by the MBT vehicle (“SPV”)-based infrastructural On 7th October 2013 PIR and LO- plants operating in 37 local commu- projects based in Poland. PIR’s total TOS Petrobaltic S.A. (LPB) signed nities of the warmińsko-mazurskie exposure to a single project may range a preliminary agreement regarding the voivodship. On 20th March 2014 PIR from PLN 50 to 750 million, while B8 oil field development project in the signed a preliminary agreement with infrastructure encompasses the fol- Baltic Sea. Structured as an SPV, this TAURON Polska Energia regarding lowing six sectors: power generation PLN 1.7 billion project will complete the financing of a 413 MW gas-fired and distribution; hydrocarbons pro- the development of the documented CHP unit at Łagisza Power Station in duction, transportation and storage; reserves and will commence production Będzin. It will be one of TAURON’s transport; municipal infrastructure, of crude oil and natural gas. The scope biggest investment projects so far and industrial infrastructure and telecom- of work will include the conversion of one of the biggest projects of this type munications infrastructure. The mis- an exploration rig to a production fa- currently being undertaken in Poland. sion is to drive GDP growth and job cility, the construction of underwater Its value will exceed PLN 1.5 billion, creation and/or efficiency. infrastructure and the final preparato- and PIR’s involvement will reach the The projects in which PIR is to ry tasks before the injection wells come maximum allowed level of PLN 750 be involved are evaluated on a com- online. It will also build a 60 km-long million. The unit will commence

mercial basis within a three-stage gas pipeline which will feed the gas operation at the end of 2018. The

decision-making process by a team produced by the facility to a gas-fired investment project consists of the

of experts with long-term experience CHP plant in Władysławowo. Com- construction of the power unit with

in project finance and equity invest- mercial production from this 3.5 mil- complete infrastructure and all auxil- ments, gained entirely in private lion ton field is expected to commence iary equipment and connections. The NAJLEPSZA KSIĄŻKA SZERZĄCA WIEDZĘ EKONOMICZNĄ

sector institutions. PIR operates as by the beginning of 2016. In addi- new highly efficient unit (at least 58 a source complementary to commer- tion to PIR’s mezzanine support, the percent of net efficiency) will com- Wydawnictwa cial sources of finance, both equity project will be debt-funded by a club prise a steam turbine, a gas turbine Polskiego Towarzystwa

Ekonomicznego and debt. PIR’s involvement must of commercial banks. and a waste heat boiler. It will be meet the private investor test. In its On 3rd February 2014 PIR signed equipped with a 250 MWt heat unit

„O lepszy ład społeczno-ekonomiczny” activity PIR promotes best business a preliminary agreement with MPEC functioning as the heat source for Tadeusz Kowalik practices, being a competence center Olsztyn, a municipal heat distribution customers using Łagisza Power Sta- for infrastructural equity investments company located in Olsztyn, north- tion resources as well as the water and and limited recourse financing. east Poland, regarding the financing process steam source for the needs of Since the commencement of its core of a new, highly efficient heating plant the 460 MWe coal unit operated in activity in mid-October 2013 PIR’s to be built in Olsztyn and the retro- the plant.

Bulletin PTE No. 2 (65)/2014 I 55 Authorities of the society

Professor Elżbieta Mączyńska, President of the Polish Economic Society. Elżbieta Mączyńska is a Professor of Economics at the Warsaw School of Economics, she chairs the Department of Research on Enterprise Bankruptcy. She is a researcher at the Institute of Economic Sciences of the Polish Acad- emy of Sciences. She is the author, co-author and scientific editor of about 200 publications in the field of economic analysis, finance, valuation of enterprises, economic systems, and strategies for socio-economic development. She leads a team conducting empirical research in the field of bankruptcy of enterprises. She teaches such courses as, Economic and Financial Analysis, and Valuation of Enterprises. Mączyńska is a Member of the Presidium of the “Poland 2000 Plus” Forecast Committee, member of the Committee of Economic Sciences of the Polish Academy of Sciences. In the years 1994-2005 she was a scientific secretary of the Social and Economic Strategy Council at the Council of Minis- ters. She is a head of the annual two weeks seminar on ordoliberalism and the social market economy held in Vlotho in Germany. ([email protected])

Professor Stanisław Rudolf, Vice President of the PTE for international cooperation. Earlier, he was the President of the PTE Branch in Łódź. He is a Professor of Economics at the University of Lodz. For many years he led the Department of Institutional Economics. He is the author of over 200 books, articles, out of which more than 40 are in English. Rudolf’s work focuses on employee participation, industrial democracy, corporate governance and the new institutional economics. He led many teams conducting research on these issues. Rudolf teaches such classes as Micro-and Macroeconomics, Participatory Man- agement, Corporate Governance, Developing Entrepreneurial Attitudes, etc. He participates in congresses of the IEA and EEA. He is closely associated with the Congress of Political Economists (COPE). In the years 2001 - 2005 he served as President Elect, then the President of the organization. Currently he is a member of the Board of Directors of COPE. ([email protected])

Doctor Artur Pollok, the Vice President of the Polish Economic Society. President of the PTE Branch in Cracow. He is an Assistant Professor in the Department of Economics at the Cracow University of Economics. He has published about 60 works of a scientific and didactic nature. Pollok works on microeconomics issues, economics of the household and processes of consumption and saving, relationships of religion with economics, and ethical aspects of management. He is a Vice Chairman of the Central Committee of the Knowledge of Economics Competition; in 1991 he was the winner of this competition. He is a scientific secretary of the Editorial Committee of the “Zeszyty Naukowe Polskiego Towarzystwa Ekonomicznego” [Scientific Papers of the Polish Economic Society] issued by the Branch of the PTE in Krakow. He is a member of the Editorial Board of the “Bulletin of the Polish Economic Society.” ([email protected])

56 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

Professor Zdzisław Sadowski, Honorary President of the Polish Economic Society. In the years 1985–2005 President of the PTE. Professor of Economics, Emeritus Research Fellow at the University of Warsaw (1953-2005). Sadowski’s work focuses on macroeconomics, economic policy, statistics, and the theory of economic development. He was Deputy Prime Minis- ter in the government of Zbigniew Messner 1987-1988. He is still active in the economic life and science. He is a corresponding member of the Polish Academy of Sciences (PAN), member of the PAN Presidium “Poland 2000 Plus” Forecast Committee, as well as editor of the most important magazine of Polish economists, the “Ekonomista”. He is a member of and was presiding over the Polish Association for the Club of Rome. He is a member of many national and international scientific societies. ([email protected])

Professor Bogusław Fiedor, Chairman of the Scientific Council of the Polish Economic Society. He is a Professor of Economics at the University of Economics in Wroclaw. In the previous term, he was the Rector, and currently is the Vice-Rector of this Univer- sity in charge of International Cooperation. Fiedor has written nearly 400 scientific publications. He specializes in environmental economics, history of economic thought, methodology of economics, and microeconomics. He led about 50 national and international research projects. He has taught at several American and German universities. He is a member of program councils and editorial boards of a number of renowned national and foreign periodicals. He is a Vice-Chairman of the Committee of Economic Sciences of the Polish Academy of Sciences, member of the Presidium of the Conference of Rectors of Academic Schools in Poland. In the years 1997 - 2005 he served as Vice Chairman of the Social and Economic Strategy Council at the Council of Ministers. ([email protected])

Poland’s Transition and its Future edited by Elżbieta Mączyńska, PTE, Warsaw, 2009

The issues presented in the book concern the development of economic theory and its main trends and the relationship between economics and other disciplines classified as economic sciences. The book presents not only suggestions regarding the course of the development of economic research but first of all those addressed to economic policy and practice.

The publication is part of the series, which commemorates the achievements of the 7th Congress of Polish Economists entitled “Poland in the global economy. Opportunities and threats for development.”

Bulletin PTE No. 2 (65)/2014 I 57  Jerzy Kleer

“The information revolution and the intellectual crisis” – a conference of the Forecasting Committee “Poland 2000 Plus”, Polish Academy of Sciences Memorial on the intellectual crisis

he development of individual theories which would take into ac- One should hope that the cur- Tcountries in the coming dec- count on one hand, the universal- rent dynamism of development ades will be determined largely by ity of the market economy, and on can be turned to the benefit of global threats. These threats are the other hand not only economic the entire human civilization. now different from what we know differences, but also specifici- However, it requires a huge col- from the past. They occur with ties of the different cultural sys- lective effort to understand the greater intensity, they have be- tems existing in the world today. nature of the threats posed by the come common, with a strong ten- These theories should also take information revolution and the dency to accumulate, and in ad- into account the consequences of proper organization of measures dition are characterized by a high the mutual relationship between to overcome the growing intellec- visuality which is a result of the states, particularly in the context tual crisis. information revolution. Due to of the social consequences caused the development of new informa- by the increasing mobility of the The Forecasting Committee “Po- tion and communication technol- population. land 2000 Plus” at the Polish Acade- ogies the highly interdependent The intellectual crisis is most my of Sciences was founded in 1969, network society emerged which is visible today in the problems and is engaged in interdisciplinary not, however, accompanied by ad- which arise when trying to solve studies on the future. It is a non-gov- equate intellectual reflection. both current and long-term social, ernmental and social organization. The information revolution economic, and political problems. It was created at the initiative of the which takes place in the condi- It seems necessary, therefore, to academic community. It is an expres- tions of globalization, through launch a broad and well thought- sion of their belief that in the mod- its detachment from the socio- out debate on the entire educa- ern world undergoing rapid changes, cultural background of communi- tion system and the ways to pur- there is an urgent need for a long- ties and nations, creates a serious sue direct a significant part of the term study of the various possible threat both to the continuation research, embedded in the broad scenarios. In its work, the Commit- of the current world order, as well context of global issues. Politi- tee seeks to identify a possible future as to the creation of a new order cal bodies should also participate shape of Polish society, its economy, associated with the development in the debate. Time is not on our and culture 15-30 years from now. of the civilization of knowledge, side, because changes occur at a The Committee is chaired by Pro- which is gradually replacing in- rate much faster than the reflec- fessor Michał Kleiber (President of dustrial civilization. This points to tion necessary for their full under- the Polish Academy of Sciences), the urgent need for a new concep- standing by the educational, scien- while Professor Jerzy Kleer is a Vice- tualization of economic and social tific, and political environments. Chairman.

58 I Bulletin PTE No. 2 (65)/2014 Polish Economic Society

 Jerzy Kleer questionnaire economist

Stanisław Rudolf – chemistry and economics graduate of the University of Łódź. Professor of Economics. The founder and a long-time Head of the Department of Institutional Economics, University of Łódź. Specializes in issues of employee participation, corporate governance, and the new institutional economics. For many years associated with the Polish Economic Society. Currently serves as Vice President of the National Board of the PTE. He prefers active recreation. What my Economic Society means for me: a fantastic adventure, and also the possibility of social action [public activity] which I started while in college in the Polish Students’ Association The money I earn: without much effort The biggest sin of economists is: they unnecessary complicate problems There is no day for me without: morning gymnastics Success for me is: to go to bed before midnight People do not know about me that: I used to be very shy I’m the boss, that: is tolerant, but demanding I could hire: a person with the ability to solve problems I would not hire: a bitter pessimist What does competition mean for me? this is an extraordinary drive for everyone and for the whole economy I spent holidays: with my family, without a computer What makes me mad: human stupidity I’ll never deny myself: sweets, but I do not get fat The Internet is: a big rubbish heap, from which I pick up what, is interesting to me I’m reading: more and more, not only during the holidays I watch: everything that is interesting Favourite gadget: a car, which I frequently change If I was not who I am, I would be: I cannot imagine another profession If it depended on me, I would change: I would increase funds for construction of highways The strangest thing I have, is: a pre-war “Olympia” typewriter, on which I typed my doctoral dissertation

Bulletin PTE No. 2 (65)/2014 I 59 This is the seat of the National Board of PTE Bentkowski’s town house in Warsaw, at 49, Nowy Świat Street 1 Bulletin classical, three-storey town house Abuilt approximately 1820 –1822. The building was designed by Hilary Szpilowski for Feliks Bentkowski (Professor, the Dean of the Faculty of 2 Sciences and Arts).The building with the garden was entered in the register of monuments. In the second half of the nineteenth century, Adam Zelt, sculptor lived in the tenement house. The building was rebuilt in the nineteenth centu- 3 ry and in the early twentieth century. During World War II, it was burned 1. Bentkowski’s house, and partially destroyed and rebuilt in 1819–1822, designed by the years 1947-1949 to the design of H. Szpilowski, destroyed Zygmunt Stępiński and Mieczysław in 1939, rebuilt in 1948 Kuzma. Since 1948 it is a place of 2. Ludwik Krzywicki’s work and meetings of members of house, The House of an the Polish Economic Society. Economist The town house is rectangular in 3. Renovation of the plan. Four Doric half-columns are in building was cosponsored the middle of the façade. the city of Warsaw Source: http://pl.wikipedia.org/wiki/ Kamienica_Bentkowskiego_w_ Wa rszawie

Edward Lipiński (1888-1986), President of of the PTE Staff members (from left): Paweł Adamczyk, Krystyna Łuszczyńska, Elżbieta Roszczyńska, Stanisław Gliński, Iwona Dudzik, Elżbieta Roszczyńska, Stanisław Gliński, Michał Plewczyński, Krystyna Łuszczyńska, Paweł Dąbrowski, in the years 1945-1965 Agnieszka Jarczyńska, Jolanta Sawukajtys, Krzysztof Barański, Jolanta Sokołowska, and Paweł Dąbrowski Jolanta Sokołowska, Krzysztof Barański, Jolanta Sawukajtys, Paweł Adamczyk, Iwona Dudzik 60 I Bulletin PTE No. 2 (65)/2014