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Regional and Local Potential for Transformation in Poland REGIONAL AND LOCAL STUDIES 1 4 ETUDES REGIONALES ET LOCALES EUROPEAN INSTITUTE FOR REGIONAL AND LOCAL DEVELOPMENT Grzegorz Gorzelak REGIONAL AND LOCAL POTENTIAL FOR TRANSFORMATION IN POLAND Warsaw 1998 ©Copyright by Europejski Instytut Rozwoju Regionalnego i Lokalnego ISBN 83-87722-01-4 Publication of this book was financed by: Ministry of National Education (MEN) and Polish Agency for Regional Development (PARR). Adress: University of Warsaw European Institute for Regional and Local Development ul. Krakowskie Przedmieście 30, 00-927 Warszawa Tel/Fax: (48-22) 8261654, 82621 68 e-mail: [email protected] Internet: www.euroreg.uw.edu.pl Published by: Michał Swianiewicz ul. Nowowiejska 39/28, 02-010 Warsaw, Poland tel. (48-22) 254348 CONTENTS Introduction .......................................................................................................................... 5 Chapter 1. CURRENT STATE OF TRANSITION .................................................... 7 1.1. Introduction............................................................................................................. 7 1.2. Political transition .................................................................................................. 11 1.3. Economic transition .............................................................................................. 24 1.4. Social issu es............................................................................................................. 28 1.5. M arket institutions ................................................................................................ 32 Chapter 2. DEMOGRAPHY .......................................................................................... 35 2.1. Population trends .................................................................................................. 35 2.2. Spatial distribution ................................................................................................ 38 2.3. Cultural and ethnic dimensions .......................................................................... 45 2.4. Future prospects .................................................................................................... 46 Chapter 3. THE LABOUR MARKET ......................................................................... 47 3.1. Labour market situation ....................................................................................... 47 3.2. Sectoral structure of employment ...................................................................... 50 3.3. Educational level of the labour force ................................................................ 56 3.4. U nem ploym ent........................................................................................................ 58 3.5. “Grey” economy .................................................................................................... 62 Chapter 4. ECONOMY .................................................................................................... 63 4.1. Gross Domestic Product ....................................................................................... 63 4.2. Industrial output and productivity ...................................................................... 70 4.3. Foreign tr a d e ........................................................................................................... 73 4.4. Foreign investment ................................... 76 4.5. Regional financial redistribution ........................................................................ 82 4 Contents 4.6. Strategie choices facing Poland ........................................................................... 87 4.7. Future prospects .................................................................................................... 90 Chapter 5. BUSINESS AND INSTITUTIONAL BACKGROUND ..................... 93 5.1. Business development .......................................................................................... 93 5.2. Regional differences .............................................................................................. 94 5.3. Institutions for regional development in Poland ........................................... 96 5.4. Foreign assistance in regional and local development .................................. 104 Chapter 6. INFRASTRUCTURE .................................................................................... 107 6.1. Physical infrastructure .......................................................................................... 107 6.2. Social infrastructure .............................................................................................. I l l Chapter 7. NATURAL ENVIRONMENT ......................................................................120 Chapter 8. LOCAL POTENTIAL FOR TRANSFORMATION ...............................124 8.1. Factors in economic local development .............................................................. 127 8.2. Economic performance of the local units ...........................................................133 8.3. Mobilisation of the local communities ................................................................ 135 8.4. Barriers for local developmnet ..............................................................................137 8.5. Optimism level of the gmina authorities .......................................................... 137 8.6. Conclusions ............................................................................................................. 138 Chapter 9. REGIONAL DEVELOPMENT ................................................................. 140 9.1. The historical heritage of the Polish socio-economic space ...........................140 9.2. The regional patterns of transformation .............................................................144 9.3. The regional c a se s....................................................................................................148 9.4. Regional policies .................................................................................................... 162 Conclusions ............................................................................................................................ 175 References .............................................................................................................................. 177 List of tables ........................................................................................................................ 183 List of figures.......................................................................................................................... 185 INTRODUCTION This book originated as a contribution to the projects co-ordinated by the European Policies Research Centre, University of Strathclyde, on the regional aspects of transformation in Poland within the broader perspective of future accession of this country to the European Union. The project was financed by the European Commission. In the course of preparation of the final text I incorporated some results of research (mostly financed by the Polish Committee for Scientific Research) conducted during the last three years on Polish regions and localities, as well as of the project “Comparative Regional Development and the Political Economy of Regional Policy” co-ordinated within the European Commission-financed ACE programme by LICOS, University of Leuven. The publication of this book was made possible by generous grants from the Polish Ministry of National Education and the Polish Agency for Regional Development (PARR). There have been several earlier analyses of the regional patterns of Polish transformation published in English (see, for example, Gorzelak, 1993, 1995, 1996; Korcelli, 1995; Szlachta, 1995; PARR, 1995; Task Force, 1996). The most recent and perhaps the most comprehensive report was prepared by the Task Force on Regional Development, a joint body of the Polish Government and the European Commission. Its diagnostic report has been published in Polish and English. In this book I refer to these sources in several places. In preparation of this report, a statistical barrier has been encountered. Time- series data in regional breakdowns for Poland are limited, which is due to the switch from the so-called “Classification of the National Economy” (KNG) which was used in the socialist system, to the European Classification of Activities (NACE), the system commonly used in West European countries. Major statistical data referring to particular sectors of economy are available in regional breakdowns up to 1993 in KNG and from 1993 onwards in NACE. It was not possible to recalculate the regional data prior to 1993 according to the principles of the new classification. For 6 Introduction this reason, only in a few cases was I able to present a dynamic picture in regional breakdowns, and in most cases I simply present the regional patterns of 1995/1996. I would like to thank the following persons for their participation in the preparation of the statistics, tables and figures: Krzysztof Berger of the Research Centre for Economic and Statistical Studies, Wojciech Dziemianowicz of the Polish Agency for Foreign Investment (PAIZ), and Tomasz Zarycki and Wojciech Roszkowski of EURO REG , University of Warsaw. Nevertheless, all responsibility for the content of this book rests solely with its author. Figure 1.0. Territorial organisation of Poland, 1997 Chapter 1 CURRENT STATE OF TRANSITION 1.1. Introduction
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