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03 / 2014 — a Report from Poland on the Economy A Report from Poland on the Economy «A Report from Poland on the Economy» by Richard J. Hunter; Leo V. Ryan Source: The Sarmatian Review (The Sarmatian Review), issue: 03 / 2014, pages: 1870­1873, on www.ceeol.com. The following ad supports maintaining our C.E.E.O.L. service September 2014 THE SARMATIAN REVIEW origin. The ethical (as opposed to moral) bonds Finally, mayors of cities usually enjoy the that every community feels bound to cultivate is longest tenure in office, while secretaries of state a form of religious expression as well. Thus the and their deputies the shortest. This indicates struggle to remove religion from the public that while on the local level stabilization has square is in fact a struggle to return to the state been reached, at the top of the pyramid there is of Hobbesian barbarism in which the situation of little stabilization and much uncertainty. ∆ homo homini lupus must prevail. Stawrowski’s book is based on a profound knowledge of the European philosophical Correction tradition, from Plato all the way to Luther, In the review of Wołyń we krwi 1943 by Joanna Hegel, Kant, Edmund Burke, and John Paul II, Wieliczka-Szarkowa (SR, April 2014), the name to name a few. His ability to show where Europe of the book’s author was misspelled. It is went wrong and Poland went right (as in the Wieliczka-Szarkowa and not Wieliczko- Warsaw Confederacy of 1570 that established Szarkowa. the correct understanding of religious tolerance and made Poland a refuge for all kinds of religious dissidents from all over Europe) is also A Report from Poland on the to be noted. Finally, Stawrowski quotes a book by Italian Jewish philosopher J.H. H. Weiler, Economy who argues that the retreat from acknowledging Europe’s Christian roots (as demonstrated in the Richard J. Hunter, Jr. & Leo V. Ryan, present constitution of the European Union) was C.S.V. and is a grave mistake. (SB) onsider this optimistic quotation: Polska elita polityczna 2013, by Rafał Matyja C and Błażej Sajduk. Kraków: Wyższa Szkoła In just 20 years, Poland has reversed 500 years Europejska im. Ks. Józefa Tischnera of economic decline. It hopes to soon join the euro (www.wse.krakow.pl), 2014. 72 pages. ISBN zone of single currency nations. Foreign 978-83-60005-40-8. Paper. In Polish. investment is flowing and the Warsaw stock exchange continues to grow. The remake of his compact book gathers together Poland is a remarkable feat, considering this T demographic and other information about nation, pinned between Germany and Russia, has the nomenclature surrounding the Civic Platform spent the better part of the past 200 years fighting government that has now been in power for invasions, near complete destruction and seven years. It offers data concerning age communism’s iron grip.1 group, region of birth, education, gender issues, and experience before joining the elite. The On the other hand, the Polish Ministry of authors conclude that the excessive length of Economy summed up its 2013 report as follows: tenure of the Donald Tusk government has resulted in one party’s (PO) excessive control In 2008 and 2009, the global economic crisis over the central and local government structures exerted an unfavorable influence upon the in Poland. The authors also note that since 2005 economic situation in Poland. As a result, the economic activity in the country has dwindled, the Polish Sejm (Parliament) has absorbed a with the GDP growth rate dropping to 1.6 percent. large number of originally provincial politicians, The two subsequent years brought about an and that a large group of MPs began their increased growth rate, reaching 3.9 percent and 4.5 careers as bureaucrats for one party (PO). The percent in 2010 and 2011 respectively. In 2012, majority of parliamentarians are over forty the Polish economy was hit by the second wave of years of age; again, before becoming the economic crisis, causing the growth rate to fall parliamentarians many of these persons were to 1.9 percent.2 working in the party apparatus or in youth organizations. Warsaw and the Warsaw Despite what may be seen as less than optimal voivodship are overrepresented among the MPs. news, a series of reports from government 1870 Access via CEEOL NL Germany THE SARMATIAN REVIEW September 2014 sources and economists from both inside and Poland’s largest trading partner, accounting for outside of Poland provide interesting more than one-quarter of Poland’s exports.4 perspectives on the possible future direction of A second factor is the improvement in the Polish economy. These reports, coupled with Poland’s investment picture. According to detailed macroeconomic statistics available from Capital Economics, another significant driver of GUS (Główny Urząd Statystyczny, or Main the Polish economy will be investment, which Statistical Office), have led economists from will be affected by both an improved business both within and outside Poland to predict that sentiment and better conditions on the credit the next few years will be a period of recovery market. The credit market is being aided and then growth in the Polish economy. This significantly since the Polish central bank (NBP) report attempts to highlight and amplify many of is continuing its policy of keeping interest rates their most important predictions. low; this policy is likely to be maintained due to Based on data from the first quarter of 2014, low inflation which now stands at 1 percent. Poland’s Ministry of Economy revised its Combined with falling unemployment (standing forecast for growth in GDP from 3 percent to 3.3 at 12.5 percent in May 20145) in the context of percent. This projected growth is much more the generally improving macroeconomic optimistic than the 2.5 percent increase in conditions described above, this will encourage growth that was assumed in the government’s consumer spending. 2014 budget and should provide some much- A third factor in the optimistic forecast is that needed “breathing room” for Polish finances. Polish consumers have rebuilt their savings over Reversing the trend of 2012, the Economy the past year. Savings now stands at 16.8 Ministry estimated that Poland’s GDP grew 3.1 percent of GDP, which should further contribute percent in the first quarter of 2014. Total to unblock consumer spending. consumption rose by 2.2 percent marked by a Overall, Capital Economics predicts that 2.6 percent rise in private consumption that itself Polish GDP will grow 3.5 percent this year, rebounded from a rather weak 0.8 percent followed by 3.7 percent next year (2015).6 In the increase in 2012. Gross fixed capital formation, medium term, because of Poland’s ever- which refers to the net increase in physical increasing integration within Western Europe, assets (investment minus disposals) within the Poland continues to be competitive with the measurement period but not accounting for the larger European economy because of its consumption (depreciation) of fixed capital or relatively low level of income. In sum, Capital land purchases, is often an indicator of future Economics believes that Polish GDP should growth. According to preliminary data, it grow at a rate of 3 to 4 percent a year until the increased by a healthy 3.9 percent. end of the decade. This optimistic view is shared by some foreign This view is shared by Grant Thornton, a experts who are also predicting a much-faster global auditing and consulting firm that also growth rate for the Polish economy than believes that the Polish economy is gradually previously reported. In June the Warsaw Voice3 returning to a path of sustained and robust reported that William Jackson, an economist growth. It is important to note that in its report, with London-based Capital Economics, believes “Poland: Dynamism at the Heart of Europe,”7 that Poland is capable of reaching a hefty 3-4 Grant Thornton points to a growing level of percent growth a year and sustaining it until the business confidence and optimism and an end of the decade. Capital Economics cites increased number of planned investment projects several reasons that indicated Poland will meet in Poland. This comment is supported by these targets. Jackson predicts economic PAIiIZ, the Polish Investment Agency, which recovery generally in the Eurozone, which reports significant interest is being shown in should result in a significant spillover and boost investment placements. to Poland’s export-led industrial sector. It is Grant Thornton joins Capital Economics in important to remember that Germany remains predicting that 2014 will see a significant the Eurozone’s strongest economy, and also as recovery in the Polish economy and that the country’s GDP growth will continue to see 1871 September 2014 THE SARMATIAN REVIEW steady upward progress. The firm analysts base building permits (time-consuming, excessively their view on seeing a balance between internal formalized and expensive) as well as the and external demand and the maintenance of low protracted recovery of amounts payable under interest rates. According to the report, the contracts. In addition, the relatively weak generally improving economic situation in the performance of our economy is attributed to Eurozone will help improve the picture for poor infrastructure, insufficient level of Polish exports and growing domestic demand innovation and labor market efficiency as well will contribute to a significant increase in as poverty and social exclusion.”9 imports. Nearly half of the respondents to the Grant Grant Thornton notes that Polish businesses Thornton survey echoed the findings of the are planning to increase the number of Ministry and reported that unclear regulations investment projects in 2014 and expect to remain the main impediment to the development increase their sales revenue in the next twelve of their business over the next twelve months.
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