POLAND TODAY magazine #17

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photos: Narodowe Archiwum Cyfrowe, Łukasz Dejnarowicz (Forum)

A project this size doesn’t happen every day. What are the plans for the CEE’s biggest airport? page 22

Global upgrade of the decade.

The country’s economic status is given a strong boost. page 26

A new vodka museum unveils the rich history behind the classic Polish beverage. page 76

Celebration of Freedom The price of Poland's independence has been high, but the results speak for themselves pages 32-53

Magazine • Portal • Conferences • find out more at www.poland-today.pl

H2 2018 issue n0. 17

photo: Maciej Moskwa

Basic necessity Polish Humanitarian Action improves the health and physical well-being of local communities by providing access to clean water.

Water is essential for every aspect of human life and our health and physical well-being depend on its purity and accessibility. We know that water is a basic need to provide healthy and dignified life conditions to people affected by humanitarian crises, which is why we build wells and other water take-off points, as well as toilets and latrines. We also distribute hygiene kits containing the most important products for men and women and rebuild school toilets so that children can have adequate conditions for their education and development.

Support our work in providing people with access to water: donate via

www.pah.org.pl.

Water point in

Motot, Jonglei State, South Sudan, 2015

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table of contents

EDITORIAL

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IN FOCUS

16–20 On the cover:

Józef Piłsudki in late 1918 (left); young Poles during Open'er festival in summer 2018 (right). Read more in a selection of facts and events depicting Poland's fate during the last 100 years.

See pages 32-53

POLITICS & ECONOMics

22–25

26–27

A change in status

The FTSE Russell Index’s decision to upgrade Poland from ‘Advanced Emerging’ to ‘Developed’ market status is a major step for the country’s international standing. How has it been covered in the Polish and international press, and what are the pros and the cons of the decision?

An airport hub 28–29 COP24: Poland’s challenge, the world’s credibility test for Poland The Polish government recently announced the biggest single infrastructure investment in the country’s history: a massive airport to serve as a hub not only for the citizens of Poland, but for the entire CEE region. Good rail and road connections will be key to its success.

Centrally connecting continents

Poland Today interviews Mikołaj Wild, the minister in charge of the newly-christened ‘Solidarity Airport’ scheme, to find out why the government believes such a project is needed, what it will look like, and how it will be funded.

In December Poland will host the climate summit for the third time and lead it for the fourth time, inviting heads of state, government ministers, advisors and consultants from around the world to Katowice.

LEADER

32–53

Poland’s Century

On the 100th anniversary of independence, Poland Today embarks on a trip down the years.

Revisiting different decades from 1918-2018, we shed light on how Poland is experiencing the time of its national life.

54-59

Table of contents

Looking Forward

The growth of Polish business has been phenomenal. Not only has domestic investment taken off, but the country has continued to attract investors from around the globe.

Poland Today touched base with professionals and opinion-formers across industries to hear what they think about the country’s future, the main challenges and the opportunities that lie ahead, and also their personal wish list for the country in the next 10 years.

BUSINESS

62–63

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Saving a nation by multiplication

Poland has one of the lowest fertility rates in Europe. Because this will only make life more difficult for businesses, the government is constantly looking out for solutions. One of the early ideas – which was put into immediate practice – was the 500 Plus initiative. Is it helping to entice Poles to have more babies by incentivising them through financial benefits?

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Boosting the global growth of Polish tech startups Poland Today is a media patron of the Masters & Robots conference in Warsaw on 13-15 November 2018. The conference acts as a catalyst for visionaries who aim to make their mark in the digital era.

REAL ESTATE

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To insure or not to insure?

Insurance, in one form or another, is integral to real estate transactions. But do buyers and sellers expect too much, and treat it as a catch-all?

68–69

Mindspace Warsaw: a catalyst for co-working

Mindspace Warsaw is a co-working space situated in the heart of the city. The working model it provides is growing exponentially. Mindspace not only boasts an incredible atmosphere and décor, but it is also an ideal place to work and meet like-minded people.

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Every building has its story

Historic buildings often come with heart and soul, but they can also feature the same systems and technologies that brand new modern buildings have.

Building blocks

Poland’s biggest bank is the first in Europe to implement blockchain technology in its systems. How, and to what extent, will this transformative innovation affect the financial sector?

Centrally connecting continents. page 24

The vodka legacy. page 76

Looking forward. page 54

CULTURE & HISTORY

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Eyewitness: Memories spanning over a century

Two very elderly citizens born early in the 1900s took everything the 20th century had to throw at them and endured into the present century. They are living symbols of the endurance of the Polish spirit.

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Love in a Cold War climate

Cold War, directed by Paweł Pawlikowski, is a tale of love spanning over two decades.

The film was shot in Łódż, with sets adapted to provide a Parisian landscape, and just like his first unlikely blockbuster, Ida, the movie took Cannes – and then the world – by storm.

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The vodka legacy

While the basic facts of Polish Vodka are wellknown, the history and heritage they represent are less so. Warsaw’s Polish Vodka Museum is changing that by bringing the story of Poland’s most famous alcoholic beverage to life – and leaving a strong taste in the mouth.

EVENT REVIEW

84–90

FOREIGN IMPRESSIONS

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A disease-fighting man in lycra

Lech Ignatowicz is a Pole residing in Sweden.

He is also the CEO and co-founder of Biopromic, a med-tech company that develops fast, low-cost diagnostic tests for infectious diseases.

Lech opens up about cultural and professional differences between Sweden and Poland, his after-work adventures and his contentment with the Swedish way of life.

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Wrocław welcomes a Turkish delight

Relocating from the Mediterranean seaside to a large Polish city presented a particular set of challenges, but with a growing business and recent nuptials, this Turkish native is here to stay.

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Warsaw’s future projects shine bright in Cannes

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The best of the CEE region on London’s global stage

The Emerging Europe Awards 2018 took place in London, showcasing the best of the CEE region on London's global stage. The event is coorganised by Emerging Europe & Poland Today and the results of the first edition took even the organisers by surprise. “It was a fantastic success, massively exceeding even our highest expectations,” said Richard Stephens, Poland Today’s founder and editor, who was also cofounder of the event and serves as its director.

Building Blocks. page 62

COP24: Poland’s challenge, the world’s credibility test. page 28

Love in a Cold War climate. page 74

Poland’s Century. pages 32-53

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editorial

“We do not want a Poland which costs us nothing”

On 18 June 1983,

Richard Stephens

Editor’s Note

Founder & Editor, Poland Today

Pope John Paul II addressed a mass of 750,000 people at Jasna Góra Monastery in Częstochowa. Poland’s situation was bleak. The Solidarity movement had been suppressed, martial law was still in place and Soviet dominance showed no signs of weakening. In that time of doubt and hopelessness, the Pope spoke to rally the very soul of the nation. Polish freedom, he said, “costs so much.” But cost, he went on to say, is what constitutes value. “We do not want a Poland which costs us nothing”.

The 100th anniversary of Poland regaining its independence on 11 November 1918 provides a natural moment to reflect on the price of Polish freedom. It’s been a century as turbulent and momentous as surely any country has ever experienced at any time in world history. In living memory (as seen in this edition) Poland has been absent from the map of Europe while divided between three empires, gained a short-lived period of freedom, been torn apart and bled dry by two murderous totalitarian states, abandoned by its allies, stifled under almost half a century of grey, grim, brutal communist control – finally to emerge into independence once again. During the whole of this time the spirit of the nation was never crushed, with successive generations ensuring that it would not be allowed to die. In this context, the position that Poland finds itself in today is little short of miraculous.

The occasion of the anniversary should also allow for some pause to reflect, for Poles to take stock of the past, put acrimony aside and come together to remember the huge sacrifices born by previous generations, taking common pride in their achievements as a country. These achievements are impressive, culminating in the recent upgrade to Advanced status for the economy. It’s easy to take such a thing for granted, but the very notion that Poland would join the group of top 25 economies in the world is a stunning turnaround that no one could have foreseen when communism fell almost 30 years ago. If the leaders of 1989 had been told that this would happen so quickly, they would scarcely have believed it.

Finally, the anniversary is a suitable moment to think about what lies ahead for the country. There are challenges aplenty, but its history shows that the country can overcome even the toughest of challenges. The price of freedom has been high, but it has not been in vain. Poland has exceeded all expectations, and there’s good reason to believe its best days still lie ahead.

Poland Today International Sp. z o. o. ska

ul. Złota 61 lok. 100, 00–819 Warsaw, Poland mobile: +48 694922898, www.poland-today.pl

Founder & Editor Managing Director Creative Director Online Editor & Editorial Coordinator

Richard Stephens Sylwia Ziemacka Bartosz Stefaniak Monica Zielinski

Contributors

Annabelle Chapman Liam Frahm Juliette Bretan Taylor Chin Klaudia Siczek Lidia Wojtal Paweł Mikusek Janusz Dzianachowski Agnieszka Krzekotowska

Copy Editor

Aiman Baloch

Key Accounts Manager

Jacek Ojrzyński

Photographs

Polska Agencja Fotografów Forum, Narodowe Archiwum Cyfrowe, Istockphoto

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Oleh Diakon Konrad Bednarski

Printing house

ArtDruk Zakład Poligraficzny ul. Napoleona 4, 05-230 Kobyłka Poland Today Magazine is printed on Munken Print Cream ecological paper © 2018 Poland Today International reproduction without permission is prohibited

Magazine layout

Bartosz Stefaniak www.madeinPolska.eu

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nazwa działu

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europe Deutsche Welle (Germany)

in focus

Poland’s pro-coal government goes green

Poland’s upper house of parliament approved a new renewable energy law that will make clean-power investments more easily implemented in an effort to meet its EU commitment of 15% of renewables by 2020. Polish energy group PGE’s director of strategy said, “By diversifying sources used to generate power and incorporating offshore wind, Poland may be able to reduce the share of coal in its energy mix even below the 60% currently expected by the government in 2030.”

compiled by

Monica Zielinski

Euro News (France)

A skiing world record

On July 22, 2018, 30-year-old Andrzej Bargiel became the first man to ski down K2, the world’s second highest mountain at 8,611 meters in height. K2 is considered one of the most dangerous mountains for climbers (for every four people who successfully reach the summit, on average one person will perish).

Despite facing cloudy conditions at the peak and a difficult downhill journey along the steep descent, Bargiel conquered the mountain on his second attempt.

The Guardian (UK)

Ryanair boss threatens to move jobs to Poland in face of walkouts

Economic Forum participants discuss Belt and Road Initiative in Poland

Thousands of guests from all over the world gathered in Krynica Poland for the 28th edition of the Economic Forum where politicians, business leaders and experts discussed major topics including the Belt and Road initiative.

During two panels, speakers talked about the project plans and partners and determined the B&R “works as a powerful driver for trade and investments.”

Top Gear Philippines

This guy drove from Poland to Japan in a Nissan Leaf

On his latest journey dubbed #NoTraceExpedition, Marek Kaminski drove 16,000 km in three months across eight countries and two continents to get to Japan with zero tailpipe emissions. He managed to drive an average of 250 km in between charges and the furthest he traveled in one day was 493 km. By driving a Nissan Leaf, he wanted to “demonstrate the feasibility of zero-emission travel by electric car.”

Channel News Asia

Poland to impose exit tax on firms and individuals – draft

Companies and rich individuals in Poland may be taxed up to 19% for moving assets or business abroad under proposed legislation.

The finance ministry wants to implement the European Union’s tax evasion directive and impose taxes when the country loses its right to tax income from the sale of assets moved outside Poland or when a person with shares or assets worth more than 2m zł moves abroad permanently. Some experts say this ‘exit tax’ may deter foreign companies from doing business in Poland.

The Scottish Sun (Scotland)

The Silesia region of Poland offers culinary delights, fascinating history and beautiful monuments

The Scottish Sun journalist Graham Mann embarked on a journey of flavour and culture in the Silesia region of Poland and shared his experience of beer drinking, pierogi making and sightseeing through the eyes of a tourist from Scotland. Mann describes the highlights of his five-day trip to Kraków and Katowice and said, “Even after spending a few hours [in Kraków] strolling through this warren of new sights and sounds it felt like I’d just scratched the surface. I’d jump at the chance to return again and again.”

ASIA Nhan Dan (Vietnam)

Vietnamese pianist receives Poland’s acclaimed art award

photo: Brian Evans

Global news review

After strikes by Ryanair’s pilots and cabin crew in Germany, Italy, Spain, Portugal and Belgium, the chief executive threatened to move jobs to Poland as the airline faces potentially more strikes. While the Irish market has been damaged by these strikes, he said the Polish market is growing strongly for the airline. With 20 markets that need more aircrafts, the CEO is looking to transfer to other fast-growing hubs.

Xinhuanet (China)

Pianist Dang Thai Son from Vietnam received the Medal for Merit to Culture ‘Gloria Artis’ from Poland for developing music, promoting Chopin’s works and being a jury member during the first annual international Chopin Competition on Period Instruments at the National Philharmonic building in Warsaw. Son was congratulated by the Director of the Frederic Chopin Institute, Artur Szklener, and Vietnam’s Ambassador to Poland Vu Dang Dung.

NORTH AMERICA Seattle Times (US)

Mick Jagger comments on Polish judicial system overhaul

After commenting on judicial changes in Poland at a concert in Warsaw, Mick Jagger of the Rolling Stones received a letter from Lech Walesa, a “Polish democracy icon,” asking him to make a gesture of support for Poland’s judges and Poland’s rule of law, with many judges being forced to retire after the maximum age was set at 65. During the concert, Jagger reportedly said in Polish: “I am too old to be a judge but not too old to sing.”

Variety (US)

Poland Finally Poised to Offer Filming Incentives

The Polish parliament is reviewing a draft bill that will offer a rebate on filming expenses of up to 30% for qualifying productions.

Refunds will be available to productions that meet criteria similar to those in other EU countries including the use of local culture, facilities and talent. Poland has been stepping up co-productions, despite being a latecomer to the filming incentives race.

AFRICA Citizen Reporter (Kenya)

A bird from Poland is “mugged” in Sudan

When a tracker was placed on a white stork in Poland to study its migration patterns, the bird traveled about 6,000 kilometres before its tracking signal was lost in the Blue Nile Valley of eastern Sudan. It turned out that an unknown individual stole the tracker from the bird and then used the tracker’s sim card in their own phone to make 20 hours’ worth of calls, allegedly generating a phone bill of USD 2,700.

Sudan Tribune

Sudan and Poland promote bilateral relations

The Straits Times (Singapore)

Poland may take Filipino workers: Minister

Poland’s Deputy Labour Minister announced talks with the Philippine authorities in the hope that Filipino migrants will cover the labour shortage. The ministry aims to attract qualified workers in the IT, medical and construction sectors. Minister Stanisław Szwed added that Poland and the Philippines share cultural values, most importantly that both Roman Catholic countries. The two nations hope to sign a preliminary accord this autumn.

Haaretz (Israel)

Anonymous philanthropist pays for renovation of Jewish cemetery in Poland

An anonymous philanthropist is paying for the renovation of a Jewish cemetery in Żywiec, a small central Polish town with a population of 32,000. After WWII, the cemetery remained in a state of ruin and was cared for by only a few dozen individuals, as the community was unable to afford any proper upkeep of the grounds. The anonymous philanthropist expects that renovations will be finished this autumn.

The foreign ministers of Sudan and Poland met over the summer to discuss the enhancement of bilateral relations between the two nations.

Topics of discussion included illegal migration, conflict resolution, human rights, agricultural and archaeological cooperation, and a future Polish-Sudanese economic forum for businessmen. Poland agreed to support Sudan in various projects, namely agro-processing and monument restoration.

oceania New Zealand Herald

Polish president observes treaty signing connecting tiny Polish and NZ towns

During his first visit to New Zealand, President Andrzej Duda observed the signing of a treaty that ties the town of Pahiatua, north of Wellington, to the town of Kazimierz Dolny, Poland. The document was signed by the Tararua District Mayor and the Polish ambassador in Auckland. Over 600 Polish refugee children known as Pahiatua’s Polish Children camped in Pahiatua during and after the war until they were gradually assimilated into local schools and the camp closed in 1949.

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news nazwa round działu up

19 in focus

The Chinese Navy,

in the form of the frigate “Binzhou”, paid a courtesy visit to the port of Gdynia in June to take part in celebrations marking the 100th anniversary of the Polish navy.

A crowd of roughly 300 Chinese living in Poland enthusiastically welcomed the sailors, with many allowed on board to take a look. The frigate is the commanding ship of China’s 29th naval escort fleet. The Polish navy consists of 48 ships, including three submarines, two frigates and about 12,000 sailors.

Snapshot

Photo by Łukasz Dejnarowicz (Forum)

photos: R. Schmitt (imago/Beautiful Sports), Mateusz Włodarczyk (Forum), Chris Kleponis

compiled

by Monica Zielinski

Building Fort Trump

During his first official White House visit, Polish President Andrzej Duda met with US President Donald Trump to discuss a number of topics including trade and national security. Trump expressed interest in the possibility of building permanent US military bases in Poland to deter Russian influence in the region.

Duda offered to pay $2bn and name the facility ‘Fort Trump.’ Putting permanent boots on the ground would reinforce US support for NATO’s Eastern border and send a strong message to Russia. While thousands of US troops are already based in Poland on a rotational basis, the Pentagon is considering the proposal to boost military protection and lower America’s defence costs. In a press conference with Trump, Duda said Russia has been pursuing “very strong militarisation” in recent Poland's Central years and displaying “aggressive behavTransport Hub iours”. He said there is a potential threat in has created quite an this part of Europe and “there is no more international buzz of an effective method of preventing as the mega project enters the initial plan- a war than a decisive stance demonstratning phase. Intended ing that we are ready at any moment to service not only to repel a possible attack.” Although Poland but also the Trump displayed interest in the plan, CEE, the airport and modern high-speed he did not officially endorse it. In addition railways and improved to military cooperation, Duda’s agenda roads will cost bilincluded energy security as Poland lions of złoty, but the aims to become an energy hub in the government remains confident funds will region and is interested in American be acquired to build natural gas. Trump has endorsed this the largest airport idea, considering both leaders oppose city in the region. the construction of the Nord Stream 2 see page 22 pipeline from Russia. As for investments and innovation, according to the White House’s official joint statement, the two countries will combine US investments with Polish high-tech skills and “support efforts to strengthen partnerships in technology and science”.

National bus champion sold, PFR purchases stake Spanish

‘Titanic’ efforts of Polish athletes

train maker Construcciones Poland's track-and-field team went y Auxiliar de Ferrocarriles SA (CAF) for gold and finished off the 2018 bought Solaris, Poland’s largest elec- European Athletics Championships in tric bus manufacturer, from Polish Berlin second behind Britain in the overprivate owners in July for €300m. all medals table. With a total of 12 medIn a statement, the Poznań-based als – seven gold, four silver and one company announced, “This transac- bronze, Poland was at the top of its tion will ensure that the CAF Group game. The week-long competition and Solaris can become the leader was held in August as part of the first in the segment of innovative solutions for shared European Championship, with public transport in Europe, reinforcing other events happening in the UK. the position of both brands on markets During the final men’s 800m, three outside Europe.” Solange Olszewska, Polish runners were competing for who founded Solaris with her husband first place: Michał Rozmys, Mateusz over 20 years ago, said the transaction Borkowski and the defending champion was not an easy decision for her and Adam Kszczot. Despite lagging behind her family, but trusts the company will Swedish and French runners, Kszczot be in good hands and will continue started a successful attack in the midto grow with CAF. Andrés Arizkorreta, dle of the final lap which carried him President and CEO of CAF, said to the finish line. With this win, Kszczot together with Solaris, the two compa- became the first athlete in history nies want to become leaders in urban to win three consecutive gold medals at mobility solutions that go beyond rail- the European Athletics Championships. way vehicles, especially in the electro- Paulina Guba came first in the women's mobility segment. “We want to continue shot put and on the last day of the comto develop the Solaris brand, as well as petition, Anita Włodarczyk won a gold to maintain its Polish character.” Soon medal in the women’s hammer throw, after, Poland’s state-owned Polish becoming the European champion for Development Fund (PFR) purchased the fourth time in a row, with a best a 35% stake in the company from CAF throw of 78.94m. Wojciech Nowicki as part of its efforts to cut carbon won gold in the men’s hammer throw. dioxide emissions and keep produc- Individual athletes were not the only tion in Poland. At the Economic Forum winners – the Polish women’s 4x400m in Krynica, head of PFR Paweł Borys relay team, which featured the European said Poland wants to introduce low- 400m champion Justyna Święty-Ersetic emission transport in its cities so who had the best performance in Europe the fund wants to be involved in the this season, also won a gold medal. After largest transport vehicle producer's the championships, winners were invited strategy. This decision is also in line to the presidential palace in Warsaw with the ruling party’s mission to make where President Andrzej Duda thanked the country less dependent on foreign them for their success and for taking investors, who bought into Polish assets “Polish athletics to an international level.” in the 1990s and 2000s, including He added: “Without hard, titanic effort, without pain, there is no success.” banks, shipyards and energy assets.

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22 An air hub for poland Economics

An international airport with connecting railways and roads seems like a promising project that will propel Poland into the future, but not everyone thinks it’s a great idea.

Developed European countries are expected to have reliable, fast and convenient transportation and infrastructure to move travellers and cargo from city to city, border to border. As Poland strengthens its economic position, it aims to compete with its western neighbours by taking advantage of its central position and construct a new airport hub along with modern railways that connect major cities to that hub. In theory, this concept seems simple, but in reality the financing, logistics, design and implementation are complex, not to mention land acquisition and political considerations that have to be taken into account.

Monica Zielinski is Poland Today’s online editor and social media manager. She is a Polish-American with a journalism degree from Southern Connecticut State University in the US. She moved to Warsaw in 2016 to reconnect with her Polish roots and work in her field.

She is also currently earning a master’s in English Studies at the University of Warsaw.

Promising prospect The proposed multi-billion złoty plan to build a central airport called Solidarity Airport in Baranów, 45 km west of Warsaw, drew international attention when it was approved by the Polish government in November 2017. Set to be completed by 2027, the 45-million capacity passenger airport - with possible expansion to accommodate 100 million a year in the future - would be the largest transportation hub in the CEE. Rail and highway links are also an integral part of the plan, allowing passengers to reach the hub in 2.5 hours or shorter, and in the final stage a majority of Poland’s longhaul trains will pass through the airport.

According to Secretary of State Mikołaj Wild, the government plenipotentiary for the project, the total investment is expected to cost 80bn zł.

Despite the plethora of unanswered questions, some experts believe that the project – formally known as the Central Transport Hub (or Central Communication Port) - will be successful. Agnieszka Gajewska, a Partner at PwC specialising in infrastructure financing in the CEE, said that although there are many risks, if prepared and developed in a right way, it absolutely has a chance to be profitable and economically beneficial; however, “it’s the government’s job to consider the economic viability and make sure all the boxes are ticked before the actual procurement starts.” She added that PwC is closely monitoring the progress and it’s not everyday that a project of this scale is happening in our part of the world.

Bottomline, Gajewska stated that the project if properly scoped and developed would help make Poland one of the central destinations in Europe, so the hub can capture the CEE market and not just Poland alone. “Of course we are not operating in a vacuum and there are many wellconnected airports across Europe that will not remain passive,” said Gajewska, “but it’s a good idea to look at Poland as the heart of the region that can benefit from increased traffic flow in the future.”

The key question, of course, is how it will be financed.

Gajewska said the project involves different components which may benefit from different financial models.

“Infrastructure projects usually find funding and there are many interested parties, both public and private, so financial risk isn’t the highest risk. There are many risks during the

project cycle that the government needs to address.” Adrian Furgalski, Vice President of TOR Transport Consultants Group, has doubts about the project and the government’s ability to deliver it, mainly due to a lack of experience in constructing such gigantic investments, but also because of factors such as labour shortage, environmental problems, and insufficient EU funding. Furgalski said Poland should focus on decentralising air traffic because point-to-point flights are on the rise. The need for a giant hub, he said, is arguable.

He added that Warsaw Chopin Airport should be expanded as a cheaper alternative to the hub in conjunction with joint management of Warsaw Modlin Airport. In an official statement, Warsaw Chopin Airport said it is “approaching its capacity limits, although it will be modernised.” The statement goes on to seemingly condone the construction of the new hub. “Poland must get in the game when it comes to airport infrastructure. We must put Poland on the main communication routes of Europe” said the statement.

Many ideas have been proposed for the development of airports in Mazovia, said the Marshal of Mazowieckie Voivodeship, Adam Struzik. In his opinion, “the most sensible solution is the development of existing airports, including the one in Modlin.” After a troubled start, the airport, located 40 km north of Warsaw's city centre, has turned out to be a successful investment for such a young airport (opened in 2012) with over 3 million passengers annually and serving 50 destinations. “Currently its development is being withheld by Polish Airports’ State Enterprise and this airport is essential,” claimed Struzik. “As the board of the voivodeship we will do everything to develop this airport.”

A basic requisite for the success of the new hub is reliable railway connections. Furgalski is sceptical when it comes to new lines connecting the hub: “Since 1989, we [Poland] have built 48 km of railway lines. Now we have to build 1,300 km of high-speed lines in 12 years. There are no foreseeable funds for railways in subsequent EU budgets for Poland and it’s problematic to allocate funds to proposed lines because many of them do not lie in EU transport corridors.”

‘The project is feasible and would make Poland a central destination in Europe’

No turning back The government is determined to move forward with the plans, however. If and when completed, the investment would put Poland prominently on the global transportation map, opening its doors to ever newer markets and attracting talent and international businesses from further around the globe to the region. According to Gajewska, a lot of sectors nowadays are supported by logistical transportation hubs, with the services and innovative industries particularly attracted to these ‘airport cities’ which offer convenient travel and amenities. These sectors, as well as others, will benefit from strong logistical support and improved infrastructure.

The impact of the hub on different industries will be direct, but there may be a much broader impact on the local market as a whole. by Monica Zielinski

The Central Transport Hub

will be located in the district of Baranów in the very centre of Poland, between Warsaw and Łódź.

Communication network in Poland as planned for 2030 - Motorways: - Expressways: - High speed railways: - Central Communication Port: - Main cities:

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Economics

(source: GDDKiA, Ministry of Infrastructure)

For the construction of the new airport to make eco-

nomic sense, it will have to be extremely well- connected by rail and road, which is why much of the projects budget is directed to new connecting transport infrastructure.

Between 2010-2016, Poland recorded the 2nd highest growth rate in Europe for number of air passengers after Lithuania, with a rate of 10.7%, compared to the EU-28 average of 3.6%. In 2016 there were 32.2m air passengers in Poland, compared to 15.1m in Romania.

Top 5 busiest airports in Poland (2017): 1. Warsaw Chopin Airport 2. Kraków Airport 3. Gdańsk Lech Wałęsa Airport 4. Katowice Airport 5. Warsaw Modlin Airport

photos: Domink Werner (Forum), Andrzej Bogacz (Forum), Kacper Kowalski (Forum)

growth of air transport in europe

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Secretary of State for the Ministry of Infrastructure, Mikołaj Wild, the man responsible for implementing the government’s planned Central Transport Hub, answers the most frequently asked questions about Poland’s immense investment.

photo: Marek Wiśniewski (Puls Biznesu / Forum)

Economics

Centrally connecting continents

less than Western Europeans, but that’s partly because we don’t have sufficient airport infrastructure. We want to change that.

Why was the location, in the district of Baranów, 40 km west of Warsaw, the one finally chosen?

The location is determined by the role that the new airport will play.

If we only wanted to build a new international airport servicing Warsaw, several locations nearer the city would be possible. However, we want to combine air traffic and rail traffic to ensure country-wide accessibility and intermodality. Passengers will be able arrive by train not only from Warsaw, but also from Kraków, Gdańsk, Katowice and Wrocław, rather than having to fly in.

Therefore the existing railway network and the potential paths for high-speed railways help determine where the new airport should be located. The ideal location is both near a motorway junction and intersections of the planned high-speed railways. It is a place where new railway connections from each region of Poland can be made most effectively. Additionally, the location is not in a Natura 2000 protected area, so the environment will not be excessively affected and environmental protection will not block the investment process.

What are the expected synergies resulting from this intermodality? Is there any freight traffic planned for the new airport?

MikołAJ WILD In addition to being the Secretary of State in the Ministry of Infrastructure, Mikołaj Wild is also the Government Plenipotentiary for the Central Transport Hub. Previously, he was the Chief Advisor to the Prime Minister, the Secretary of State in the Chancellery of the Prime Minister and Undersecretary of State in the Ministry of Treasury. As the former Deputy Minister of the Treasury, Wild supervised companies in the aviation sector, including Polish airline LOT SA.

‘We are talking about providing passengers with the possibility of convenient transfers from Poland to anywhere in the world’

How did you become the government plenipotentiary of the Central Transport Hub project, which includes Solidarity Airport?

When I became the Deputy Minister of the State Treasury at the end of 2015, I noticed that one of the biggest limitations for the development of the Polish aviation market is the lack of an airport that can handle the growing air traffic in Poland. Such growth is really unheard of. The number of passengers is expected to double from 40m in 2017 to 80m by the year 2030, according to the Urząd Lotnictwa Cywilnego (the Association of Civil Airports). If we continue to grow at this rate, after 10 years we would need an airport equivalent in size to the world’s largest airports to meet such demand. Of course, this (figure) won’t be reached because the trend is changing and Poles tend to fly significantly

The new airport is, above all, a venture aimed at passenger service.

Therefore, when we talk about intermodality, we are talking about providing passengers with the possibility of convenient transfers both within Poland and from Poland to anywhere in the world. The construction of the new airport will also have a natural impact on cargo traffic because building new railway routes allows us to free old routes and re-assign them to transporting goods. We will be able to introduce a separation of freight traffic from passenger traffic, which is quite necessary in the Polish transport market.

Why is this needed?

High-speed trains currently run up to 200 km/h on the same tracks as freight trains, whose average speed ranges from 30-40 km/h. Logistically speaking, this is very inefficient for coordinating schedules.

How much do you expect the whole hub to cost?

It all depends on how the project is defined. The construction of the new airport itself, which would be the first step to building a whole new railway

limited EU funding According to the Ministry of Investment

and Economic Development, Poland will apply for EU funding for the road and rail infrastructure for the Central Transport Hub, although the main site may be privately funded. Due to regulations, the construction of airports can not be funded by the EU but the government will try to obtain EU support for the railways and roads while the airport would be partially financed by commercial investors.

amounts are not much different. Over the next three years almost 70bn zł will be spent on railway modernisation, for example. It’s also worth noting that the cost of the Family 500+ programme, which was considered unserviceable, is 25bn zł a year. So when we break down (the cost of the CTH project) over 13 years, it’s an attainable amount in our budget.

Are you also looking for private investors, and do you expect support from the EU?

and air system in Poland, will cost up to 35bn zł. The sum consists of 20bn The new hub has to be profitazł for the construction of the new air- ble, which means we include private port, 8-9bn zł for construction of a new investors in our thinking. Individual railway route between Warsaw and profit-oriented investments aside, Łódź, and the inclusion of this route we are providing benefits to the entire in the extension of the central railway economy. Poland’s economy is becomline to Kraków and Katowice. This cost ing more attractive because it is posaccounts for a sufficient catchment area sible to get to any big city in two hours. for the airport, provision of services to We are increasing the competitivethe Warsaw and Łódź agglomerations, ness of the Polish economy by setting and quick, convenient connections with ambitious plans for the next 13 years. southern Poland via the central railway This increases business predictability. line. In addition, 7bn zł is needed for Railway investments in accordance with the development of the road network. EU law are not allowed to be profitable For the new rail routes, which were - the EU's goal is to ensure the widest recently accepted as a feasible option, possible access to communication on we are looking at a cost of about another a competitive basis. The EU invests 40bn zł for the expansion of 1,300 km heavily in rail networks, and we are of railway routes. Not all of this will counting on EU funding. And this be new routes, but also an integration is already happening - the Central of the railway network into one system. Transport Hub has entered the EU Even today, Poland still has the rail- Connecting Europe Facility and is part way map of Austria-Hungary, Prussia of the European rail network covered and the Russian Empire, 100 years after by this regulation.

Poland regained its independence.

Is the timeline of the railway investment the same as the timeline for the new airport?

As decisions regarding the railway investment are not affected by the new airport, our target is 2035.

How much has been built over the last 30 years?

Several dozens of kilometres.

We have gained a lot of experience and knowledge on the construction of roads and highways. Also, highly advanced railway upgrades are virtually turning them into new routes.

We are fully capable of proceeding, but we have to redirect investment efforts to the expansion of the railway network.

So the total investment costs amount to around 80bn zł?

Yes.

How will it be financed, with the projected deadline only 10-12 years from now?

We are spreading the investment out over a period of 13 years. If we compare it to other strategic government plans such as the National Rail Programme or the National Roads Construction Plan, which can reach 100bn zł, the

What is the planned size of the airport zone?

It is too early to give a definitive answer. However, we are sure that the airport itself will be up to 35 sq km, five times larger than Warsaw Chopin Airport. In the first stage, the airport will have two runways, and ultimately four.

This airport will be a showcase for the country, so we cannot afford to make any hasty or random decisions. It must be a well-organised urban organism.

What could cause delays to the project?

There are several risks. There are the technical risks associated with the integration of all the components and institutions involved in the project’s success. The most basic challenge is the organisational effort needed to integrate the many investments, and what's more, this has never been done in Poland. So there is the risk associated with innovation: the risk of being a pioneer. But we analysed other similar projects in the world and they rarely failed because of innovation; it was usually because of management errors or flawed execution.

What is the current status of the project?

We are in the preparatory phase, which will continue until the completion of work on the feasibility study next year. After that, we will start work on the project.

25

Economics

Has the land been purchased for the 1,300 km railway construction plan?

We are constructing new railways that will grant access to major cities in under two hours, so before we can decide on what plots of land we need to obtain, we need to carry out a comparative analysis of several variants.

interview

by Monica Zielinski & Bartosz Stefaniak

In a referendum in Baranów, 84% of residents voted ‘no’ to the new airport. What is your reaction to this?

In June, 1,555 people voted against the construction of the new airport in a referendum. Naturally, this is a challenge because you have to convince the people who said ‘no’. However, public investments often create fear, especially at the beginning, and even more so if they are located in one’s own neighbourhood. We have to find a balance between national interest and the interests of the residents, and we are willing to provide fair compensation.

What will happen to existing airports serving Warsaw?

According to the feasibility study carried out in 2010 and in accordance with the strategic plans adopted by the Masovian Voivodeship, the most effective solution would be to transfer all traffic to the new airport. Recently, however, there were some who said that it is possible for both the Chopin Airport and the new airport to function at the same time. We do not ignore these voices.

Wouldn’t the two airports “cannibalise” each other?

Well, this is one of the risks. The decision on Chopin airport has not been made - we will make it after collecting all the data. For us, providing maximum comfort to people flying to and from Warsaw is the most crucial goal.

How will you ensure the airport is not a soulless monostructure?

We will carry out a study of what is needed and what kind of infrastructure there should be. It won’t just be an airport. It will be a perfect place to put a company headquarters in the heart of Poland because any city in Poland will be reachable in two hours. It won’t just be a location for the infrastructure that usually accompanies airports, such as hotels, logistics centres or offices servicing the airport. It has the potential to become more attractive than locations around the central train station in Warsaw. Also, for cities like Grodzisk, this investment can generate huge growth.

Horizon 2027

According to the official plan, direct railways will allow access to the Central Transport Hub from 120 cities and all the residents of Poland will be within range of a railway station no more than 30 km from their place of residency.

26 a change in status ECONOMICS

Poland has been upgraded as an investment market – at least in the opinion of a leading global index provider. We cast a quick eye over some of the media coverage, both domestic and international, of this significant event in the country’s economic development.

FTSE Russell’s

Richard Stephens

founded Poland Today in 2012 to help bring Poland to the world and the world to Poland. Before this he was editor of Eu­ robuild CEE magazine in his first stint with the company, and then returned to conceive and establish The Eurobuild Awards, organising the first two editions. He has a degree in Theology & Religious Studies from Bristol University in the UK.

recent announcement that Poland has could offer funds something different to that which is already been reclassified from ‘Advanced Emerging’ to ‘Developed’ available: “We hope that our high-dividend yield, combined market status made a big impact in both the Polish and with the strategy of quickly increasing our return-on-equity the international financial media. The country is the first ratio, creates a unique investment story in developed marto be thus promoted for almost 10 years – since South kets,’’ Krupinski said. Like Kaineder, he also emphasised the Korea in 2009, a year after Israel in 2008 – and the first ever educational role companies such as his now need to play in the CEE region. The promotion was broadly recognised as to investors who may be less familiar with the country: a major achievement by a country which, less than 30 years “Our business model makes us a barometer for economic ago, was a total economic basket case. Poland leaves the com- activity in Poland, therefore we focus on explaining the fundapany of countries such as Turkey and the Czech Republic to mentals of the Polish economy during our investor meetings.’’ join the 25 most advanced economies in the world, placing it comfortably within the top 15% of global markets. Although The same field of play as Apple journalists and commentators welcomed the upgrade – while Polish financial news website bankier.pl, while acknowledgpointing out that it was not an overnight decision, having ing the upgrade as being “a huge success”’ and “historic”, been announced at the end of 2017 – many also flagged the concentrated its analysis on the potential pitfalls. Whether potential pitfalls that the move entails for Poland. the tiny share of Polish companies in the index will increase, Katie Martin of the Financial Times called it a ‘mile- the article said, depends on their condition and behaviour stone’ and quoted Marek Dietl, President of the Warsaw in relation to that of the companies from the other 24 counStock Exchange, as saying: “The development…represents tries in the Advanced group. “Here, for the time being, we a fundamental change in the perception of Poland among are pallid – in 2018, the indexes of the largest companies global investors. Poland’s reclassification will spark the inter- in all developed countries, according to FTSE, performed est of new investors in Polish issuers and open enormous better than WIG20. So now we are on the defensive and opportunities for the entire capital market. I do believe that in not on the offensive.” (Ed. The WIG20 is a capitalisationweighted stock market index of the the long term it will attract bigger capital inflows.” The FT noted that, while 20 largest companies on the Warsaw Stoxx – part of the Deutsche Boerse Stock Exchange). Daily business newsGroup – also upgraded Poland, MSCI paper Puls Biznesu echoed bankier.pl kept it in the emerging-market catin emphasising the very small proporegory, thereby “helping it to straddle tion of the index that the largest listed two investor bases.”

Polish companies represent, highlighting that the likes of PKO BP, KGHM, LPP Smaller fish, larger pond and PGE are now playing in the same After being big fish in a less competitive league as titans such as Apple, Amazon, pond, Konrad Krasuski of Bloomberg JP Morgan and Exxon. Gulp. pointed out that Poland’s stocks A shared achievement will now be “minnows” in the FTSE Developed All Cap Index, with a proIn perspective, the upgrade would have jected weighting of 0.154% com- firms included been dismissed as a pipe dream no more pared to the previous share of 1.33 in ftse indexes: than 30 years ago, when the present in the emerging market group. Krasuski Large Cap: PKO Bank Polski; Mid Cap: PKN, site of the Warsaw Stock Exchange was highlighted the different approach of PZU, Santander Bank Polska, PGNiG, Pekao, occupied by the Central Committee KGHM, PGE, MBank, LPP, CD Projekt, Cyfrowy the ‘passive’ funds, which automatiof the Polish United Workers Party.

Polsat, Lotos, Dino Polska; Small Cap: Bank cally recalibrate once a market is reclas- Millennium, AmRest Holdings, Bank Handlowy, Even wPolityce.pl, which usually praises sified, to that of the ‘active’ funds, JSW, Alior Bank, CCC, Play Communications, the government to the detriment of all which – he stated – “may need some Orange Polska, Grupa Azoty, Enea, Tauron, other political parties, acknowledged Kernel Holding, Kruk, Asseco Poland, Budimex, persuading.” He spoke to two senior that the achievement was a combinaEurocash, Ciech, Energa, PKP Cargo, figures from companies whose stocks LW Bogdanka, WSE, Boryszew, Neuca tion and culmination of the policies have been affected, and who will be at and good sense of a succession of postthe forefront of those making the case for Poland. Peter communist stewards of the economy by quoting Dietl: “Usually, Kaineder, the Chief Strategy Officer at AmRest, said that the markets are working (for such a promotion) for about 50 reclassification creates enormous opportunities to broaden years – the last two reclassifications of Israel and South Korea the investor base, and that “the main thing is for local com- – and it took us 27 years. (…) The capital market has underpanies to give new investors a solid education on specific gone a large transformation, which is due to many heads features of the Polish economy and politics.” Also cited in of stock exchange, but also to the Commission of Financial Krasuski’s article was Bank Pekao’s Chief Executive Officer Supervision, NBP, finance ministers. This is an (effect) of a conMichał Krupiński, who said the bank was looking to diver- sensus, which clearly cuts across political divisions, to make sify its shareholder base to include investors from Asia and it work and today we can observe the effects.” In today's the Middle East to complement its existing European and US political climate, words such as these are rare, but welcome.. fund managers. Krupińśki, reported Krasuski, felt that Pekao

by Richard Stephens

‘The development represents a fundamental change in perception’

photo: Clerkenwell

28

economics & politics

COP24: Poland’s challenge, the world’s credibility test Poland will host the climate summit for the third time, leading it for the fourth time, and has invited negotiators, ministers, as well as heads of states and governments from around the world, to Katowice.

This year,

the Paris Agreement implementation rules will be outlined, which is of fundamental importance to the functioning of global climate protection system. In addition, the Talanoa Dialogue, held in Katowice, will reflect on the global climate efforts since COP21 in Paris, and discuss future ambitions.

The climate summits, referred to as Conferences of the Parties (COPs), are part of the global negotiating process under the United Nations Framework Convention on Climate Change (UNFCCC). In this process, governments strive to agree on global actions which will limit the average global temperature increase and the resulting climate change.

The COPs are organised annually in different countries and in 2018, Poland, as the representative of the Eastern European Group, will host COP24 in Katowice on 3-14 December.

Representatives of 196 governments and the EU will gather for the negotiation process. More than 20,000 participants will join the negotiations and witness the international effort to adopt long-term decisions impacting the global climate change policy landscape. Due to the level of complexity of the negotiations and their political implications, Poland will face the challenging task of delivering a successful outcome to the summit.

Main goals Two key goals for this summit are adopting the rulebook – a detailed guideline for the implementation of the Paris Agreement - and organising the high-level facilitative (Talanoa Dialogue) meeting to sum up current climate actions and encourage more ambitious climate actions in the future.

All decisions taken at a COP are unanimous. With 196 governments representing their national interests and other, non-governmental, stakeholders trying to influence the process, reaching a global agreement is a formidable challenge. The stakes are high as the implementation of global goals will take place on regional and national levels.

It is therefore clear that, with time, COP decisions will have a tangible effect on European and Polish legislation, in the energy sector in particular.

illustration: Frank Ramspott

Implementing the Paris Agreement The rulebook is a set of over a dozen highly interconnected, technical and, at times, political decisions which need to be agreed unanimously by all parties to the Paris Agreement. In other words, these are the actual implementation rules which will make the new, post-2020 worldwide climate protection system work in all areas: emission reductions (so-called mitigation),

adaptation, capacity building, technology transfer and financing. The rulebook will indicate in detail which actions, in what form, on what basis, when, and by whom, should be taken under the Paris Agreement - meaning the whole post-2020 period. In addition, the Talanoa Dialogue, a process which began in January 2018, will have its high-level finale in Katowice. Its aim is to review the to-date actions against climate change as a whole (emission reduction targets, innovative policies and solutions), assess their results, and encourage parties and non-state actors to do more, both before and after 2020.

Financing

participate in the climate-related meet- ble for the general atmosphere before ings throughout the year, take part and during the negotiations, which in negotiating formal and informal is often referred to as an “atmosphere meetings and deliver information and of openness and trust”. This means that work on relevant documents and strat- the governments and observers can egy. For every global negotiating meet- freely participate in the negotiations ing the Polish government prepares with their rights observed and needs a negotiating instruction which states catered for. This atmosphere can detethe main points of Polish interest. riorate easily, as a lot of tension accuIt provides conditions and guidelines for mulates before and during the summit. the possibility of changing the Polish The cardinal rule for the COP presiposition during the course of the nego- dency is that of impartiality. While the tiations. The Polish delegation is obliged success of the summit depends mainly to follow these instructions at all times. on the will of the delegates to agree, In order to promote its interests the presidency is expected to be unbiin Europe and at a global level, the Polish ased and help to reach this agreement. national delegation not only discusses Negotiations in Katowice will be diffiissues in coordination with EU, but also cult and complicated. However, Poland organises and participates in numer- should develop an action plan that will ous multi- and bilateral meetings. These have a positive impact on the atmosmeetings can relate directly to nego- phere of the negotiations. It should tiations but can also have a “business” be perceived positively by all particicomponent – presenting Polish compa- pants, showing efforts to transform nies, technologies and programmes. It is its energy sector. It could underline worth noting, due to the requirement action to invest offshore, develop elecof impartiality, that such an approach tromobility, fight air pollution in cities would be completely unacceptable and transform electricity. Actions aimfor the COP24 Presidency team which ing to improve the air quality in cities is expected to focus on ensuring pro- are particularly important, and not only to Poles - it is a problem which affects gress in negotiations. many countries around the world.

One of the most difficult issues to discuss has always been the financing of climate action. The current goal is $100bn climate finance per year by 2020 to be mobilised by the developed countries to support developing countries. For the post-2020 period, a new one will need to be agreed upon.

The new climate finance target will certainly be a decisive bargaining chip at COP24, and a part of a political agreement sealing the implementation package. Apart from the above, the discussion on climate finance is also con- The EU has one voice ducted on multiple other levels. Over The EU member states and the EU The stakes of the play the years, the discussions have included agreed to fulfil climate targets together The final negotiations at COP24 are an increasing number of non-govern- under the Kyoto protocol and the Paris expected to be very difficult due to the mental representatives from the worlds Agreement. The EU itself is classified complex level of interlinkages between of banking, business, industry and other in the negotiation process as a regional the topics, and their long-term signifiinstitutions dealing with investments. economic integration organisation, cance for global climate policy. The Before COP21 in Paris, many of these which is party to the Convention, Kyoto changes in the implementation rules institutions announced their own inter- protocol and the Paris Agreement, and may lead to actual changes in the clasnal or external initiatives and targets. is represented by the delegates from sification of countries. For example, Their interest in the negotiating pro- the European Commission. These indi- countries, which in the past were not cess, including formulation of the defi- viduals are mainly representatives of obliged to undertake specific actions, nition of climate-responsible financing, the EU Presidency and designated like financing or detailed reporting, is expected to further increase. main negotiators with relevant experi- may be asked to accept new responence and skills. This is why Poland itself sibilities as part of the general bargain.

Three roles for Poland does not speak at the global level, as This means that the core of negotiations At COP24 Poland will be present in the its position is clearly expressed during is the change of the system and its negotiations in its three roles: a party the internal EU coordination process. old (1992), simplistic division between to the convention, member state of the During COP, the daily morning EU coor- the developed and developing countries European Union and COP24 Presidency. dination is led by the EU Presidency to reflect the variety of socio-economic Poland’s national delegation is usually (Austria in the second half of 2018) situations. The new one will need to be lead by the Minister of Environment as which is also responsible for organising more flexible so as to take into account the head of delegation. The core nego- the coherent and efficient functioning current and possible future changes tiating team consists of experts from of the whole EU member states dur- in the global economy. the Ministry of Environment, Ministry ing and between the UN climate negoThe current climate negotiations have of Finance, Ministry of Foreign Affairs tiation meetings. This includes finding a chance to influence not only climate and the National Centre for Emissions internal compromises in regard to the and energy policy all over the world, but Management (KOBiZE). These experts EU’s position, presenting it publicly, and the whole UN system. This may happen showing initiative in international rela- by showcasing how countries can go tions. Similar to the COP Presidency, beyond their formal developmental What not to the EU Presidency needs to be impar- classification in other areas of internaexpect at cop24 tial and make a substantial effort tional policy. The Paris Agreement can in moderating the internal EU discus- actually be a successful example for all It is unlikely that new emission reduction targets will be announced by governments sion: the EU’s position cannot be pre- other multilateral processes. However, at COP24. The country delegates will focus sented publicly unless it is agreed by for that to happen, it has to be fully on securing good results in the rulebook negoall member states and the Commission. implemented and start functioning tiations and the Talanoa Dialogue discussions. no later than 2020. The achievement Impartial Presidency In addition, it’s unclear what position the US The third role of Poland, as the host of this goal relies, to a great extent, will take but it may have a significant impact on the atmosphere of this year's climate summit. country, is the presidency. The COP on the results of COP24 in Katowice. president and his team are responsiby Lidia Wojtal & Paweł Mikusek

29 economics & politics

COP24 will take place in Ka-

towice from 3rd to 14th December 2018.

30000 participants from almost 200 countries will arrive to decide about the most important directions of climate protection.

COP24 will be attended by the representatives of governments, diplomacy, NGOs and researchers, business and other groups interested in solutions to climate changes.

Lidia Wojtal is a

former Polish diplomat and expert with more than 10 years’ experience in the global and European climate negotiations, highly familiar with all aspects related to the organisation and running of UN climate talks. Worked for the Polish COP14 and COP19 Presidency and led SBSTA (advisory body under the Climate Convention) as its Chair at COP21 in Paris.

Paweł Mikusek

is the communication coordinator of Forum Energii, Warsaw-based think tank. He was also the spokesman to COP19 Presidency in 2013.

30

31

For a long time Poland had no luck.

In the aftermath of a detrimental conjunction of factors, the once mighty Polish-Lithuanian Commonwealth ceased to exist in 1795, dismantled by Russia, Prussia and Austria. Although Poles have done a lot to preserve their identity under foreign occupation, for over a century all their attempts to restore political independence eventually failed. With the outbreak of WWI in 1914 Poles found themselves conBartosz Stefaniak scripted into the armies of the partitionis Poland Today's ing powers in a war that was not theirs. co-founder and Furthermore, they were often forced creative director. He to fight each other, since the armies has cooperated with of Germany and Austria-Hungary Le Monde and Agence France Presse among were allied against Russia. The major other media. Bartosz turbulence that engulfed those three has also worked with countries, however, also opened an Poland's Ministry of Foreign Affairs unprecedented window of geopolitical on different projects. opportunity for the cause of Poland's He runs a blog about independence. Polish statesmen saw the balance of power in international relations in advance the emerging chance and (facebook.com/3wojna). knew how to make use of it. Thanks to For more information their efforts, on 11 November 1918, after go to madeinPolska.eu 123 years of foreign occupation, Polish statehood was restored over the ruins of the German and Austro-Hungarian monarchies which lost the war, and Tsarist Russia which collapsed under the communist revolution.

Back in 1918, when Poland rose from the ashes, nothing was granted except for the formal recognition of the new Polish state by the victorious Allied Powers. Today, one hundred years later, Poland is experiencing what appears to be its best time for centuries. The following pages show the events which have made Poland the country it is today.

1918 11 November 1918:

Poland re-emerged as an independent political entity after 123 years of foreign occupation.

independence had been successfully pitched to the Allied Powers in Paris by Roman Dmowski (below left) and Ignacy Paderewski (below centre). As a result, the claim for Poland's independence was included as part of the peace negotiations with the Central Powers. In the Armistice terms imposed on Germany, all German forces were forced to stand down in Poland and other occupied areas. As the war ended, the Germans sent Józef Piłsudski (pictured right, in the centre), then under arrest for disobeying their orders, back to Warsaw. On 11 November 1918, with the formal end of WWI, Piłsudski took control from the puppet government the Germans had set up in Warsaw a few weeks earlier. This act marked the begining of Poland's sovereignty.

Although formally independent, all Poland had at that time was the recognition of its statehood by the Allied Powers. Everything else had to be won, including the state's borders, or built from scratch. The new country required its own institutions, its own legal and monetary system as well as its own infrastructure.

Right: Józef Piłsudski

Above: Ignacy Jan

selection by Bartosz Stefaniak

100th anniversary of independence

By the end of WWI, the concept of Poland's

Above: In 1915,

Roman Dmowski, convinced of Russia's impending defeat, began campaigning on behalf of Polish independence in the capitals of the western Allies.

In 1917, in Lausanne, he founded the Polish National Committee, recognised by the Allied Powers as the legitimate representative of Polish interests until late 1918, when the first Polish government took control of the country.

Paderewski was a pianist and composer.

His worldwide musical fame granted him access to diplomacy and the press, which eventually made him a major spokesman for Polish independence.

In 1918, Paderewski played an important role in persuading US President Woodrow Wilson to include the question of Poland's independence as part of the peace negotiations with Central Powers. A few months later, he was chosen as Prime Minister of the newly reborn Poland and represented the country at the Paris Peace Conference in 1919.

correctly predicted the outbreak of a major war, the Russian Empire's defeat by the Central Powers, and the Central Powers' defeat by the western Allies. Concluding that Poland's independence would have to be won militarily, a few weeks after WWI began he formed the Polish Legions, a military force that fought alongside AustriaHungary against Russia and later became the backbone of the Polish Army. In 1917, with both AustriaHungary and Russia faring poorly in the war, Piłsudski withdrew his support for the Central Powers.

In November 1918, when Poland regained its independence, he became Head of State.

Between 1919 and 1921, he commanded Polish forces in six border wars that shaped the country's territory until 1938. Pictured right is Józef Piłsudski with his officers shortly after the end of WWI.

Poland’s century See pages 32-53 for a selection of facts and events by Bartosz Stefaniak

photos: Narodowe Archiwum Cyfrowe, Wikipedia

In 1918, with the end of WWI and the collapse of the three empires that had wiped Poland off the map in 1795, Poland re-emerged as a sovereign state. Here's what came next.

1919 1928 Decade of emerging from chaos.

The reborn Polish state faced the challenge of unifying disparate regions which had been part of different countries since the late 18th century and therefore had little or no infrastructural or economic links. This all took place while Poland faced unstable internal and external conditions.

100th anniversary of independence

Above: Although Poland's independence

had been legitimised by WWI's victorious powers through the 1919 Treaty of Versailles, most of its territory had to be won back in a series of border wars fought from 1918 to 1921 under the command of Marshal Józef Piłsudski. Most notably, victory against the USSR prevented the loss of the newly-gained Polish independence but also the potential spread of Soviet revolution into West Europe.

Pictured above: Polish soldiers with captured banners of the Red Army.

Above: The Polish-Soviet War (1919-21)

shaped Poland's eastern border and, as a result, Ukrainians and Belarusians became the bulk of the population in the country's eastern voivodeships. According to a 1921 census, the total population of the country totalled 25.6m people, of whom only 69% were of Polish nationality. The biggest ethnic minority groups were Ukrainian (15%), Jewish (8%), Belarusian (4%) and German (3%). Pictured: Ukrainians in Eastern Poland in their traditional outfits.

Left: After 123 years

of non-existence, the Polish state re-emerged as a parliamentary democracy.

However, it was marred by constant internal tensions and political instability that resulted, for example, in the assassination of Poland's first president, Gabriel Narutowicz in 1922, just five days after his appointment to the office.

Left: The newly

independent Poland inherited the remnants of three different economic systems and five different currencies from its previous occupiers. Following hyperinflation and monetary chaos in the years after WWI, the Polish złoty was reintroduced as Poland’s currency in 1924.

Left: The reborn country gained access to the Baltic Sea but lacked any coastal infrastructure so, in 1920, the government began building its flagship military and trade port in Gdynia.

The new port started operations in 1923 and eventually became Poland's window to the world – by 1938 it was servicing 80% of Polish exports and 65% of Polish imports.

Above: Polish

national radio station Polskie Radio began making regular broadcasts from Warsaw in 1926.

Mass media had a great role in building a sense of national unity and awareness among people living in distant parts of the country.

Left: The first regular airline in Poland was

photos: Narodowe Archiwum Cyfrowe, Wikipedia

created in 1922. Aerolloyd - operating under the name Aerolot since 1925 - had a fleet of 17 planes and maintained a 100% safety record throughout its existence. The service was nationalised in 1928, becoming the core of LOT Polish Airlines, Poland's flagship carrier to this day. Pictured are Aerolot's planes in Warsaw's airport, 1927.

On the right and above: Poland's young parliamentary democracy, proving unstable and erratic, met its end in 1926 when Marshal Józef Piłsudski seized power in a coup. For the next decade, Piłsudski (pictured left) dominated Polish affairs as strongman of an authoritarian centrist regime.

His personal authority was widely recognised in the nation for his previous merits as one of the country's founding fathers and its victorious military commander. Pictured right: the army on the streets of Warsaw during the coup. Pictured above: a crowd gathering over the body of one of the 600 casualties caused by the coup.

1929 1938 Decade of crisis and consolidation.

100th anniversary of independence

Poland was heavily affected by the Great Depression, yet it successfully overcame it, consolidated its potential and began growing impressively.

Unfortunately, dark clouds were already gathering on the horizon, as the international situation became increasingly tense towards the end of the decade.

Left and above: The 1929 financial crash se-

verely affected Poland as the inflow of foreign capital dried up. As a result, between 1930 and 1933, the country suffered a decline of over 20% in GDP. The worst year for the Polish economy was 1932: total industrial production was around 40% lower than in 1928 and unemployment (beyond farming) was estimated at 44%. Above: a donation certificate for a winter help fund for the unemployed. Left: a damaged storefront after a crowd of unemployed triggered riots in the city of Poznań (1936).

Left and right:

The ideologically centrist military regime established in 1926 by Piłsudski outlived its founder. At the cost of suppressing democratic mechanisms, the authoritarian regime prevented Poland from slipping into internal instability at a time when extremism was becoming increasingly popular on both the right and the left of the political spectrum.

Pictured right is the funeral of Piłsudski in 1935 in Warsaw. Pictured left are political prisoners deepening an irrigation canal (mid-1930s).

Left: In the interwar period, Poland was one of the most dynamic centres of the avant-garde in Europe, with artists such as Władysław Strzemiński, Katarzyna Kobro, Henryk Stażewski and Henryk Berlewi.

The abstract sculptures of Katarzyna Kobro are some of the greatest examples of Polish Constructivism (pictured).

In 1937–1938 the Soviet NKVD

carried out a mass operation against Polish nationals living within the boundaries of USSR: 140,000 were sentenced for alleged espionage, of whom 110,000 were executed.

Left: Luxtorpeda,

a single, first-class only railcar built in Poland starting from 1936. It was fueled with a diesel engine and was able to achieve a maximum speed of 120 km/h. The railcars operated on the most important rail routes of Poland.

Below: The Polish

economy returned to growth by 1934 and grew by over 19% in 1937. Unable to attract sufficient capital from abroad, the government sought to internally accumulate capital by turning to statism, creating a huge investment programme in public works and stimulating private initiatives.

Industrial production (index of 100 in 1928) grew from 45.5 in 1932 to 125.8 in 1939.

Pictured is a leaflet of Poland's long-term national investment plan, a continuation of the government’s 1936 short-term plan.

The ambitious plan was never finished, due to WWII.

Left and below: Ur-

ban development in interwar Poland was based on modernist principles. Left is the Prudential, Europe's second tallest building (66 m) at the time of its opening in 1933.

Below is a modernist complex in the mountain resort of Krynica.

Above: One

of the biggest economic projects of interwar Poland was the establishment of the Central Industrial District in 1936.

The concept consisted of the development of both civilian and military industry in a strategically secure region that was relatively remote from the country's western and eastern border (as Poland was expecting possible Nazi or Soviet aggression). However, only a few of the intended projects were completely operational before WWII broke out. Pictured are the ironworks in Stalowa Wola.

photos: Narodowe Archiwum Cyfrowe, Wikipedia

Below: Interwar Poland had colonial ambitions, yet they were never fulfilled.

Pictured is a procession of the Maritime and Colonial League, an organisation that had around one million members on the eve of WWII.

Right: In late 1938, Poland took advantage of Nazi Germany’s land grab of Czechoslovakia and seized the disputed area of Cieszyn Silesia (roughly the size of Warsaw), previously a theatre in a border conflict in 1919 between the two newly-created states.

1939 1948 Decade of calamity. WWII was an

100th anniversary of independence

unprecedented disaster for Poland. The country lost not only most of what it had achieved in the previous 20 years, but also lost 16% of its pre-war population - the highest rate of all states involved in the conflict. Poland was at war from the moment it broke out in Europe until its final day; yet the war did not end for Poland with the fall of the Nazi regime. Although the country was formally among the victorious Allied states, it fell into the Soviet zone of influence following a series of agreements between the USSR, USA and UK, eventually becoming a puppet state of one of its 1939 invaders.

Left: WWII started in September 1939 when

Nazi Germany invaded Poland from the west, followed soon after by the USSR from the east in accordance with the Ribbentrop-Molotov pact, concerning the partition of Eastern Europe. Pictured are Red Army troops chatting with Wehrmacht soldiers during a joint victory parade in the Polish town of Brześć Litewski, where the two invading armies met on 22 September 1939.

Above: Both invaders

started a campaign of expulsions and ethnic cleansing on the conquered territories.

Pictured is one of the mass graves of the 22,000 Polish officers executed

by Soviet forces in 1940 in the forest of Katyń.

The Polish intellectual leadership was the primary target for both the Soviets and the Nazis.

Right: As the country was unable to withstand

two totalitarian regimes at once, the Polish government fled west in late September 1939 with a significant number of troops, while all its structures in Poland went into in conspiracy mode. The Home Army - estimated to have 400,000 members at its peak - carried out direct actions against the invaders, but the underground state was not purely military in its structure. It also provided various civilian functions such as education, civil courts, culture and social services. It is estimated that Polish agents provided British intelligence with over 50% of its data from the continent.

Left: According to

the Nazi ‘Generalplan Ost’, ethnic Poles were second after Jews in the queue to extermination. Ultimately, 85% of Polish nationals were to be eliminated, while the remaining 15% were to be left as slave labour. Pictured are Germans during an execution of civilians in the town of Bochnia (1939).

Above: Pre-war Poland was home to

the biggest Jewish population in Europe (around 3.3m people), thus occupied Poland became the major site of the ‘final solution’ orchestrated by Nazi Germany. Around 90% of the local prewar Jewish population did not survive the Holocaust, making up half of Poland's total six million loss in population.

Pictured is the German death camp in Auschwitz, built in 1940 initially for ethnic Poles, where over 1.1m people (mostly of Jewish ethnicity) lost their lives until its liberation by the Red Army in January 1945.

Above: The first

official account of the Holocaust was a report addressed to the United Nations issued in 1942 by the Polish government-inexile. It was based on intelligence data from occupied Poland gathered by Jan Karski.

Internal ethnic tensions, although present

in prewar Poland, broke out anew during WWII, often orchestrated by the Nazis. It resulted in multiple pogroms of Jewish population by their Polish neighbours, as well as in the massacre of Poles in Volhynia carried out by Ukrainian nationalists.

Right: In the aftermath of the Nazi attack on

USSR, Stalin agreed to release thousands of Polish prisoners in an attempt to use them against Hitler.

As a result, in early 1943 the Soviets established the Polish People's Army, a military force under strict Soviet command. They also created the Union of Polish Patriots, which later became a communist puppet counter-government to the Polish government-in-exile operating from London. Pictured is the signing of the Sikorski-Mayski Agreement (London, July 1941) which recognised Poland and USSR as formal allies in the struggle against Hitler and paved the way for the release of Poles detained in Soviet Gulags.

Below: Poles fought not only at home but

also on all European fronts and beyond. Polish soldiers took part in campaigns in France (1940), Norway (1940), the Battle of Britain (1940), the Battle of the Atlantic (1939-45), Northern Africa (1943), Italy (1944-45), the Western Front (194445) and the Eastern Front (1943-45). Over two million Poles took part in the fight, be it within regular army units or partisan units. Pictured is a soldier of the Polish People's Army holding a Polish flag above the Victory Column in Berlin (May 1945).

Above: The fall of Berlin in May 1945

did not mark the end of WWII for Poland.

Due to agreements signed in Yalta in February 1945 between the USSR, USA and UK, Poland fell into the Soviet zone of influence.

Although the Soviets managed to install a loyal government in Warsaw, its authority over the country had to be enforced, as most did not view it as a legal successor of Poland's pre-war government. A new wave of arrests and deportations took place, similar to those during the Soviet occupation of eastern Poland in 1939-1941. Despite the fact that WWII had formally come to an end, the new Soviet-backed Polish authorities had to face armed anti-communist insurgency groups known as ‘cursed soldiers’ that carried out raids on communist prisons and encampments. They killed scores of Soviet agents and freed countless political prisoners.

The last known ‘cursed soldier’ was killed in an ambush as late as 1963, almost 20 years after the Soviet takeover of Poland. Pictured above are Churchill, Roosevelt and Stalin during the conference in Yalta.

Above and above right: The most notable act of partisan warfare undertaken by the Polish Underground State was the Warsaw Uprising in August 1944. It was part of Operation ‘Tempest’, attempting to seize control of areas occupied by the Nazis while they were preparing their defenses against the advancing Red Army. Polish underground authorities aimed to take power before the arrival of the Soviets and thus prevent a Soviet puppet government from being installed. The uprising lasted 63 days and eventually failed at the cost of an estimated 150-200,000 civilian casualties and Warsaw being razed to the ground.

photos: Narodowe Archiwum Cyfrowe, IPN, Muzeum Historii Polski, Wikipedia

Left: Compared to

Above: In March 1945, the Soviets invited

16 leaders of Poland's wartime Underground State - including the Home Army and civil authorities - to Moscow to negotiate their possible participation in the Soviet-backed provisional government of national unity for post-war Poland. The Polish politicians were presented with a warrant of safety, but instead they were arrested and given a show trial, having been charged of illegal activity against the USSR. Pictured is General Leopold Okulicki, head of the Home Army, after being arrested by the NKVD.

Poland's borders

in 1948 compared to 1939: – territorial loses in red, – territorial gains in green.

its pre-war borders, post-war Poland was moved west by Stalin into formerly German territories. Meanwhile, Poland lost its pre-war eastern provinces, which were predominantly populated by Ukrainians and Belarusians. The border shift included the expulsion of two million Germans from the newly acquired territories, as well as a forced resettlement of three million Poles living in the areas that became incorporated into USSR. Post-war Poland lost 19% of its prewar territory, yet it became almost entirely ethnically homogenous.

Above: By 1946, the newly established

Soviet-backed provisional government held a fraudulent national referendum that approved economic nationalisation, land reform and a unicameral parliament. A pro-regime coalition of left wing parties was established to participate in the first parliamentary election in postwar Poland in 1947, eventually winning it by fraud. By 1948, the victorious coalition morphed into the single communist party (PZPR) which kept control of the country for the upcoming decades. Pictured is a propaganda poster promoting the referendum.

1949 1958

Below: Post-war Poland under Stalin's rule became a totalitarian state with omnipresent terror and paranoia of counter-espionage executed by the ministry of public security. Soviet advisers were placed in every arm of the government and state security as a guarantee of the pro-Soviet influence of the state. The communist rule was also backed by tens of thousands of Red Army troops that remained in Poland after WWII. In 1953, at the peak of Stalinism, the secret police totalled 32,000 officers and 85,000 secret agents hidden within the society. No one felt safe, even in the highest ranks of the communist regime itself.

Pictured is a trial in 1951.

Decade of totalitarianism and relief.

After the Soviets installed their administrative structures in Poland and removed any meaningful armed resistance, they transformed the country into a smaller version of the USSR under Stalin's rule. This involved all aspects of social activity. Stalinist influence lasted beyond Stalin's death.

Liberalisation from hardline and partial autonomy from the USSR only became possible in 1956, after Nikita Khrushchev broke away from Stalin's legacy.

Above: By 1949,

100th anniversary of independence

Above: Soviet-style centralised state planning

was introduced in the Six-Year Plan, which began in 1950. The plan called for accelerated development of heavy industry and forced collectivisation of agriculture. The state also took control of nearly all commercial and industrial enterprises, leaving only family-run shops in the private sector that were harassed by bureaucratic requirements set by the government. Pictured is the construction site of Nowa Huta steel mill, the biggest of all investments approved by the plan, which included also a whole new residential district for Kraków.

Above: The

Stalinist regime was particularly eager to persecute anyone who was involved in Poland's wartime Underground State. Pictured is the English edition of a book by Kazimierz Moczarski, head of Bureau of Information and Propaganda of Poland's wartime partisan Home Army.

Jailed by the communist regime, he shared his prison cell with the Nazi war criminal Jürgen Stroop, against whom he fought just a few years earlier.

Right: Bolesław

Above: A new constitution based on the

constitution of USSR was imposed in 1952.

The new framework broke the tradition of separation of powers and established the worker– peasant alliance as the leading force in Polish society, exerted by the communist monoparty, PZPR. Pictured is the first draft of the constitution in Russian, with personal revisions

by Stalin and his handwritten remarks.

Bierut, a pre-war Polish communist, NKVD agent and protégé of Stalin, was Poland's leading figure under Stalinist rule. From 1947, he served as president of Poland until the abolition of the presidency in 1952. Then, he served as Poland's prime minister until 1954 and was also the first secretary general of the ruling communist monoparty PZPR from 1948 to 1956.

He mysteriously died during a visit to Moscow in 1956, three years after the death of Stalin. Pictured is a propaganda poster with his mentor.

the USSR concluded a treaty of friendship, cooperation and mutual assistance with Poland, which, among other things, granted the Soviet Union the formal right to a continued military presence on Poland's territory. By 1955, the countries under Soviet occupation signed a treaty of collective defense in Warsaw known as the Warsaw Pact, which was created as a response to NATO. In 1956, Poland and the USSR signed a dedicated treaty to fully regulate the Soviet military presence in Poland. Red Army troops in Poland were, however, exempt from any Polish oversight.

Left: The regime

aimed to enhance the rise of labour productivity by promoting competition between workers and awarding the best of them with the title of ‘Model Worker’, which was seen as the vanguard of the communist movement.

Right: Named after

the city of Warsaw, FSO Warszawa was the first car produced in Poland after WWII. The vehicle was built under Soviet licence and was identical to the GAZ-M20 ‘Pobeda’.

Production started in 1951 and lasted until 1973. Over 250,000 were built in total.

Left: Hope for liber-

Left and above: Post-

alisation within the Soviet-imposed regime arose following the death of Stalin in 1953, yet real change only occurred in 1956 after the events known as the Polish October. Pictured is a newspaper announcing Stalin’s death.

photos: Narodowe Archiwum Cyfrowe, IPN, Wikipedia

Right & below:

Below: Early on, the communist government avoided persecuting the Catholic Church, and instead sought to stir up anticlerical sentiment within Poland’s traditionally religious society.

On the other side, the Polish Catholic clergy denounced the atheism of the regime. In 1949, the Vatican's excommunication of Catholics involved in the PZPR brought open hostility from both sides, including direct repressions against church officials. Pictured is Cardinal Stefan Wyszyński leading a Corpus Christi procession in Warsaw in 1957, shortly after his release from a three year conviction.

The thaw came in 1956. Workers protests in Poznań (right) involved tens of thousands and were brutally squashed (below right), but highlighted the general dissatisfaction of the people. A few months later, taking advantage of a change of policy inside the USSR, a reformist faction led by Władysław Gomułka (below) came into power in Poland and eventually abated the pervasive Stalinist terror. Many political prisoners were released as part of a general amnesty.

Repressions, censorship and propaganda still shaped Poland's internal politics, yet became less intense.

Left: The loosened

censorship resulted in, for example, the creation of ‘Ashes and Diamonds’ (1958), a masterpiece of Polish cinema directed by the future Oscar winner Andrzej Wajda, about the neglected and persecuted soldiers of the wartime Home Army.

war modernisation was fashioned according to the principles of socialist realism, an artistic style characterised by the glorified depiction of communist values and a romanticised vision of a perfect future society. Other artistic styles were banned because they were considered to be ideologically inspired by the hostile and decadent capitalist West. Socialist realism shaped the whole realm of visual arts, from painting to architecture.

Pictured is the Palace of Culture and Science, which dominated the landscape of post-war Warsaw. Opened in 1955, it is the most notable example of socialist realism in Poland.

1959 1968

Left: Józef Franczak, the last known of the ‘cursed soldiers’ who took to anti-communist partisan warfare after WWII, was killed in an ambush in 1963, almost 20 years after the Soviet takeover of Poland.

Pictured is Franczak as a young corporal on the eve of WWII.

Decade of increasing stagnation.

Left: ‘Knife in the Water’ (1962) was Roman

Polański's debut as a movie director. The drama features three characters in a story of rivalry and sexual tension and was nominated for Best Foreign Language Film at the 1963 Academy Awards, the first Polish motion picture to receive this kind of recognition.

100th anniversary of independence

After the initial post-war development boom in the 1950s, the ineffective centrally planned economy began stagnating. This led to a general dissatisfaction with the performance of Władysław Gomułka's regime and a growing demand for reforms.

Afraid of destabilising the system, Gomułka was, however, not inclined towards any social or economic changes and eventually turned to a more rigid and authoritarian policy.

Below: After socialist realism has been repudiated as the dominant style in visual arts, Poland again embraced modernist principles in architecture. Pictured is the Za Żelazną Bramą estate in Warsaw, raised between 1965 and 1972.

Left: The establishment of the National Festival of Polish Song in Opole in 1963 was one of the milestones that led to the emergence of modern Polish pop culture.

Pictured is the ‘Alibabki’ band performing a show during the third edition of the festival in 1965.

Above: Official state celebrations of the millennial jubilee of Polish statehood.

Pictured are people taking part in a parade in Warsaw, 22 July 1966.

Right: Polish bishops addressed their Ger-

man counterparts in an open letter in 1965, asking for mutual forgiveness and inviting them to celebrate together the millennial anniversary of Poland's adoption of christianity in 966. The letter eventually became a groundbreaking factor in the reconciliation between Poland and Germany following the tragedies of WWII. One year later, the millennial anniversary of the baptism of Poland also recognised as the establishment of Polish statehood - became an opportunity for the people to manifest patriotism in opposition to the official secular celebrations organised by the regime. Pictured is an open-air mass in the city of Kielce in 1966, celebrated by Archbishop of Kraków, Karol Wojtyła, the future Pope John Paul II.

Above and left:

photos: Janusz Sobolewski (Forum), Jan Morek (Forum), Tadeusz Zagoździński (PAP), Narodowe Archiwum Cyfrowe, IPN, Wikipedia

General dissatisfaction with the political performance of Władysław Gomułka's regime (pictured above with Leonid Brezhnev) led to a political crisis in March 1968 when a series of major student, intellectual and other protests took place. Gomułka could not risk a Soviet invasion similar to that in Czechoslovakia and managed to handle the crisis internally.

It resulted in the suppression of student strikes by security forces (pictured left) in all major academic centres across the country and the subsequent repression of its participants.

Above: The jubilee of

1,000 years of Polish statehood in 1966 was commemorated by the authorities with the construction of over 1,400 schools across the country, contributing greatly in raising the availability of education. Pictured is one school in the rural area of Węgierska Górka.

Right: In a desperate act of protest against

Poland's participation in the Warsaw Pact's invasion of Czechoslovakia, Ryszard Siwiec, a Polish accountant and former Home Army resistance member, committed suicide by selfimmolation in front of tens of thousands spectators during a national harvest festival taking place on 8 September 1968 at the national stadium in Warsaw.

Above: Following

Israel's strategic pivot towards the US and Soviet withdrawal of diplomatic relations with Israel in the aftermath of the Six-Day War, a power struggle erupted within the Polish communist party in early 1968. Its Jewish faction began to be portrayed as internal enemies by the party's nationalist wing. As a result of an anti-Jewish campaign, at least 13,000 Poles of Jewish origin were forced to emigrate from Poland. Among them were not only party officials and secret police functionaries but also many non-partisan academics and people of culture. Pictured is an anti-semitic propaganda rally in 1968.

Below: In 1968, Poland took part in

the Soviet-led invasion of Czechoslovakia aimed at suppressing the events known as the Prague Spring. After an attempt by Czechoslovak reformists to partially decentralise the economy and democratise the country, half a million soldiers and over 5,000 tanks of the Warsaw Pact from the USSR, Bulgaria, Hungary and Poland entered the country to restore the previous order. The intervention killed 137 civilians and seriously wounded 500 more. Pictured is a burning tank on the streets of Prague.

1969 1978 Decade of miracle on credit. The un-

100th anniversary of independence

solvable problems of the centrally planned economy resulted in a rolling deterioration of the availability of basic goods. Protests against a rise of consumer prices which erupted in 1970 in the cities on Poland's Baltic coast were forerunners of a change in power. Edward Gierek, the new First Secretary of the communist party replaced Gomułka and promoted the idea of a new opening with the west and an intensive modernisation programme fuelled by unsustainable foreign loans. After the initial boom, the ineffectual centrally planned economy faced growing difficulties in handling debt payments, which ended with a major crisis by the end of the decade.

Above: In the treaty with West Ger-

many, signed in December 1970 at the end of Gomułka's period in office, Germany recognised the post-World War II borders, establishing a foundation for future peace, stability and cooperation in Central Europe.

Pictured is West German Chancellor Willy Brandt kneeling in front of the Monument to the Ghetto Heroes in Warsaw.

Above & right: The downfall of the Gomułka regime in December 1970 was triggered by a protest of shipyard workers in Gdańsk against drastic price rises of basic goods. When strikes spread from Gdańsk to other Baltic cities, security forces responded with brutal force. During the clashes, several dozen workers were fatally shot. The tragic events forced Gomułka's resignation and retirement. In a generational replacement of the ruling elite, Edward Gierek (pictured right) took over Party leadership and the price increases were rescinded and tensions eased.

Pictured above are demonstrators in Gdynia carrying the body of one of their fallen.

Above & right:

Since the riots that brought down Gomułka were caused primarily by economic difficulties, Edward Gierek promised economic reform and instituted a program to modernise industry and increase the availability of consumer goods. His reform was, however, based primarily on unsustainable large scale foreign borrowing, without any major systemic restructuring of the centrally planned Polish economy. Pictured is the construction of Huta Katowice steelworks in 1976, the flagship investment of Edward Gierek's administration.

Above & left: Edward Gierek opened up

Poland to Western influence not only by taking loans from abroad but also by purchasing licenses for different consumer goods. One example was the Italian Fiat 126, which became the first car available for an average Polish family. Production in Poland started in 1972 and lasted until 2000, with a total production of over 4.5 million cars.

Another licensed consumer good was Coca-Cola, production of which started in Poland in 1972.

Pictured above are brand new Fiats on the factory lot in Tychy, 1978. Pictured left are bottles of CocaCola leaving the production line in Warsaw in 1972.

Right: As time passed, Poland’s economic

Below: In the aftermath of the June 1976 protests, the Workers' Defence Committee (KOR), was established in September to help persecuted worker protesters. The organisation was the first major anti-communist civic group in Poland, as well as in the whole of Eastern Europe. Pictured are KOR members during a hunger strike in the Holy Cross Church in Warsaw (1979). From left to right: Anna Kowalska, Antoni Macierewicz, Jacek Bierezin and Adam Michnik.

situation worsened and the regime returned to the idea of raising prices of basic commodities. It resulted in a new wave of workers riots in June 1976. The largest demonstrations took place in Płock, Ursus, and Radom. Pictured is the local communist party office in Radom set on fire by the protesting crowd.

Below: Poland finished third at the 1974 World

photos: Andrzej Wiernicki (Forum), Mirosław Stankiewicz (Forum), Krzysztof Pawela (Forum), Stanisław Kokurewicz (Forum), Jan Morek (Forum), Narodowe Archiwum Cyfrowe, Ośrodek Karta, Bundesarchiv, Wikipedia

Cup. Pictured is the tournament's top scorer Grzegorz Lato (left) and Brazil's Marinho Chagas during the match in Munich that gave Poland its place on the podium.

Right: The standard of living increased mark-

edly in Poland in the first half of the 1970s, and, for a time, Edward Gierek was hailed as a miracle-worker. The investment boom, fed by foreign loans, obscured the need for deeper reforms.

The ineffectual centrally planned economy eventually proved unable to handle the debt payments and the spiral of debt drove the country into an economic crisis. The centrally controlled production of goods was no longer able to fulfil demand and, near the end of the decade, basic goods started disappearing from store shelves.

Pictured is a grocery store in Warsaw, 1977.

Left: The investment

boom of the first half of the 1970s gave birth to a specific socialist version of consumerism. First local consumer brands and adverts started appearing. Pictured is a fashion photo shoot in 1974 in Warsaw under the newly built 111m tall hotel Forum.

Left: The social atmosphere precedessing

the upcoming crisis of the 1980s was portrayed by the ‘cinema of moral anxiety’, a new wave in Polish cinematography that emerged around 1976. The characteristics of those films usually included a small-town setting, realistic depiction of socio-political tension in late Gierek's period, and themes with a general sense of helplessness (against both oppressive power and common moral bankruptcy). Pictured is the poster of Amator (English title: Camera Buff ), a 1978 movie by one of the most notable Polish film directors, Krzysztof Kieślowski.

Right: Richard

Nixon became the first US president to visit Poland when he traveled to Warsaw in 1972. It was also the first presidential visit behind the Iron Curtain since Roosevelt's visit in Yalta in 1945.

Pictured is Richard Nixon during talks with Edward Gierek.

Right: Chosen from

among almost 500 other Polish pilots, Mirosław Hermaszewski became the first Pole in space. In June 1978, he flew to the Soviet Salyut 6 orbital station, where he carried out various geoscience experiments over eight days.

1979 1988

Left: Choked by

unsustainable debt, in the late 1970s, Poland's economy fell into a crisis. The centrally controlled production of goods was no longer able to fulfil market demand.

A rationing system was introduced to prevent food shortages.

Pictured is an empty grocery store in 1981.

Below: In October 1978, Polish cardinal Karol

Wojtyła was chosen as the new pope. Taking the papal name John Paul II, he soon became Poland's major advocate on a geopolitical level and the main authority for Polish people.

His visits to Poland attracted vast crowds, eager to find hope and inspiration from his words and example. Not long after his first visit in 1979 (pictured), during which he encouraged Poles to take their fate in their hands, the first independent trade union in the Eastern Bloc was established.

Decade of bankruptcy. As the crisis

100th anniversary of independence

grew, so did the number of protests. In the wake of negotiations with the regime, an independent trade union known as Solidarność was established and became a mass opposition movement with 10m members. The outnumbered communist party reacted by declaring martial law.

In response, the trade union adopted a policy of non-violent resistance, bringing the nation to a standstill, which only deepened the economic problems. Meanwhile, the Soviet Union was increasingly distracted by its own issues.

Unable to control the situation, the regime in Warsaw was eventually forced to back down and negotiate with the opposition.

Below & right: By August 1980, economic

hardship and worsening social conditions led to another series of strikes in cities all over the country. Negotiations between a representation of striking workers and the government which took place in Lenin Shipyard in Gdańsk under the leadership of Lech Wałęsa (pictured right) resulted in the birth of Solidarność, the first independent trade union in the Eastern Bloc.

Pictured below is Lech Wałęsa on a fence, addressing the crowds gathered around the shipyard during the strike in August 1980.

Below: In August 1980, unlike previously in

June 1976, Edward Gierek decided to negotiate with the workers instead of suppressing the strikes by force. What paved the way to the birth of the first mass legal opposition movement in the Eastern Bloc, gave Gierek himself infamy within his own ranks. Shortly afterwards, in early September 1980 he was removed from power. Unable to handle the deepening crisis, and fearful of a potential Soviet invasion, the party eventually adopted a hawkish approach under the leadership of general Wojciech Jaruzelski. Pictured is Jaruzelski declaring martial law on 13 December 1981.

Right: Soon after its establishment in late

August 1980, the Solidarność trade union became a broad platform of political opposition against the regime. One year later, on the eve of its first nationwide congress, Solidarność counted 10m members, in contrast to the 2m members of the communist party. Pictured is the cover of Tygodnik Solidarność announcing the congress in September 1981. The trade union's official weekly magazine had a print run of 0.5m copies and was the first case of free press behind the Iron Curtain.

Its free license granted by the regime expired with the declaration of martial law a few months later.

photos: Chris Niedenthal (Forum), Ireneusz Sobieszczuk (Forum), Scanpix (Forum), Marek Radzikowski (Forum), Witold Kulinski (Forum), Wojciech Krynski (Forum), Bogdan Jankowski (Forum), Janusz Fila (Forum), Piotr Cieśla (Forum), Sławek Biegański, Wikipedia

Left: In February

1980, Leszek Cichy and Krzysztof Wielicki became the first two climbers in history to reach the summit of Mt Everest in winter. Pictured left is the Polish expedition with Mt Everest in the background.

Below & right: In 1983, Lech Wałęsa was

awarded the Nobel Peace Prize in recognition of his leadership of the only mass opposition movement behind the Iron Curtain. Although released from prison in late 1982, Lech Wałęsa decided not to attend the ceremony in Oslo, fearing that communist authorities may not let him back into the country. Pictured below is Wałęsa's wife Danuta in Oslo on December 1983 receiving the Nobel Peace Prize on behalf of her husband. Pictured right is Lech Wałęsa at home in Gdańsk, listening to the awards ceremony live on the radio.

Right: The new gov-

ernment attempted to destroy Solidarność by declaring it illegal and imposing martial law on 13 December 1981.

The army was ordered into the streets, detaining around 10,000 opposition members, and a campaign of political repression was carried out across the country.

During the initial imposition of martial law, several dozen people were killed. In the deadliest incident, nine coal miners were killed by paramilitary police during the strike-breaking at the Wujek coal mine.

Others were also killed and wounded during a massive second wave of demonstrations in August 1982.

Left: Imposing martial Above: Founded in law efficiently extinguished the immediate challenge to the regime posed by Solidarność.

It did nothing, however, to resolve the longterm crisis. Solidarność adopted a policy of civil resistance, which only worsened the economic problems and halted the nation.

Unable to control the situation, the regime was eventually forced to negotiate with the union. Although martial law was lifted in July 1983, many of the political prisoners were not released until a general amnesty in 1986. Pictured is a banner demanding the release of Wałęsa from detention, Warsaw 1982.

1980, the festival of alternative music in Jarocin was tolerated throughout the 1980s as a ‘safe outlet’ by the regime. It was by far the biggest festival of its kind in the Eastern Bloc and the birthplace of Polish counterculture. Pictured is a gig by ‘Siekiera’ punk rock band in 1984.

Right: The first suc-

cessful heart transplant in Poland was performed in 1985 by professor Zbigniew Religa (pictured).

His patient lived another 30 years after the operation, outliving Religa himself.

1989 1998

Below & right: The Round Table talks re-

sulted in the first partially free parliamentary elections in the Eastern Bloc in June 1989. Pictured below is a display of voting results. By the end of August, a Solidarność-led coalition government was formed under Prime Minister Tadeusz Mazowiecki (right). One year later, in December 1990 Lech Wałęsa was elected President of Poland.

The first fully democratic parliamentary elections took place in 1991, but by that time the once united anti-communist opposition was already divided.

In effect, the country was torn by political instability until the snap elections in 1993.

Decade of transformation. Nationwide

100th anniversary of independence

strikes in 1988 paralysed the country and forced the communist government into open dialogue with Solidarność. The negotiations paved the way to the first partially free elections in the Eastern Bloc in June 1989 and a peaceful transfer of power in their aftermath.

The new paradigm resulted in a transition to liberal democracy and free-market economy. Despite multiple changes of governments, that direction was kept throughout the whole decade and eventually resulted in Poland's accession to western structures.

Above & right:

The bankrupt economy led to a massive wave of strikes all over the country in September 1988. Unable to handle the socio-economic situation, by February 1989 the regime sat down at the negotiation table with the opposition in what eventually turned into stipulating its terms of surrender.

The Round Table talks were the very foundation of the upcoming shift towards democracy and free market.

Pictured above are negotiations in April 1989.

Pictured above right are the opposition leader, Lech Wałęsa and the communist party leader, general Wojciech Jaruzelski, March 1989.

Right: Once united

against the communist regime, the former opposition began to split up in the new political reality. Pictured right is Jarosław Kaczyński posing with Lech Wałęsa during the elections in 1989. Pictured further right is Kaczyński leading a protest against Wałęsa in 1993.

Below: In 1990 Polish intelligence aided the US in successfully extracting several CIA and DIA operatives from Iraq on the eve of operation Desert Storm (pictured). In recognition of that act, the US government urged other governments to cancel half of Poland's foreign debt taken out two decades earlier by Gierek. This, together with the help provided during the secret transfer of tens of thousands of Jews from USSR via Poland to Israel (1990-92), helped build Poland's credibility within the western intelligence community after a long period of hostility. It was one of the factors that later opened the doors to Poland’s membership in NATO.

Right: Following

the 1945 expulsion of the Nazis by the Soviet army, the latter remained in Poland for decades to enforce communist rule.

Forty-six years later, upon the collapse of the Soviet Union, Red Army units began withdrawing from Poland. It is estimated that 59 Soviet garrisons were positioned around the country in 1991 with 58,000 Red Army soldiers within. The last Soviet soldier left Poland in late 1993.

Pictured are Red Army troops leaving by cargo train the Soviet base in Borne Sulinowo, April 1991.

Left & right: The Bal-

cerowicz Plan, named after Finance Minister Leszek Balcerowicz (pictured left), was the first ever attempt to switch from centrally planned economy to free market. The shock therapy was adopted in late 1989 and caused a temporary drop in economic output. Growth in GDP was eventually achieved by 1992 at Below: After it was a cost of a drastic rise closed in 1939, the War- of unemployment and saw Stock Exchange a wave of bankruptcies was re-established of state-owned monopin April 1991. Only olies, initially modeled five companies were to service the centrally listed on the first day planned market. After of trading (pictured). being privatised, those Seven brokerages took companies were set by part in the trading, and their new owners to there were 112 buyface free market comand-sell orders with petition. Pictured right a turnover of $2,000. is a bankrupt clothing factory in Żyrardów.

Below: The ineffective state owned companies, were privatised in favour of foreign investors or, often in shady circumstances, in favour of a new breed of oligarchs well-connected with politicians. Meanwhile, the grassroots potential of divine free market was also unlocked. For the first time since WWII, average Poles could start accumulating their own capital. Individual initiatives started flourishing all over the country on an unprecedented scale. Stalls filled the streets of Polish cities. Pictured is a street market improvised in Warsaw's midtown (1996).

Above: The state

structures were adapting to the new circumstances much slower than society. The chaos of transformation to free market, and the wide range of new possibilities lying within, resulted in a significant rise of crime and corruption. Torn by constant political crises, the young underfunded country was unable to respond properly to those threats during the whole decade of the 1990s. Pictured is Bogusław Linda in ‘Dogs’, a Polish thriller directed by Władysław Pasikowski (1992) about former communist secret service officers who became the backbone of organised crime.

photos: Jerzy Kośnik (Forum), Aleksander Keplicz (Forum), Erazm Ciołek (Forum), Artur Hojny (Forum), Chris Niedenthal (Forum), Wikipedia

Above: In 1991,

Poland, Czechoslovakia and Hungary set a regional platform of cooperation called the Visegrád Group.

The same year Poland, Germany and France established a similar platform called the Weimar Triangle. By 1994 Poland applied for membership in the EU and by 1997 in NATO.

Right: Amid the gen-

eral political instability of the early 1990s, the snap elections of 1993 were won by the former communist PZPR party, relabeled now as SLD. It formed a coalition with the agrarian PSL which remained in power until the next elections in 1997.

In 1995 Lech Wałęsa proved unable to secure his second term as President of Poland and lost the presidential elections to the SLD's candidate, Aleksander Kwaśniewski (pictured). Despite post-communists being in power, the country continued its path towards membership in western structures.

Right: A genuine

Polish mix of disco and folk music emerged with the transition to capitalism. Despite its kitschy style and poor promotion, it won Polish hearts. In the mid 1990s, disco polo was by far outclassing the sales of any other musical genres. Pictured is a cassette cover (1995).

Left: In 1997 Poland's

Third Republic adopted a new constitution upon a national referendum. The new legal framework for the country replaced the temporary amendments put into place in 1992 to reverse the effects of the communist dictatorship.

1999 2008

Below: After the dissolution of the Warsaw

Left: Although

Pact in 1991, Poland saw membership in NATO not only as an assurance of its security, but also as long overdue recognition of its rightful place in Europe. The country applied for membership in 1997 and two years later, in March 1999 became a member state of the alliance. Pictured is Poland’s Minister of Foreign Affairs Bronisław Geremek signing the Act of Accession to NATO as US Secretary of State Madeleine Albright stands behind.

Poland formally became a member state of the strongest military alliance on the planet, the country had yet to prove its practical value as an ally. In 2003, Poland took part in the US led invasion of Iraq, and eventually kept a task force there until 2008. In 2004, Poland joined the ISAF mission in Afghanistan and remained in the conflict zone until 2014. During both those engagements, around 20% of Polish military personnel gained combat experience.

The training acquired there changed the Polish army dramatically. Pictured is the arrival of Polish troops in Iraq, 2003.

Decade of new order. Ten years after the shift of 1989, the young democracy was united enough to successfully tackle the dysfunctions that were restraining it during the early years of the transition. The country complied with new standards required by membership in NATO and EU. Eventual access to both organisations moved Poland to a completely new reality and was a critical factor for further development.

Right: The establish-

ment of the Central Bureau of Investigation (CBŚ) in 2000 and subsequent changes of the legal system, such as enablement of turn state's evidence, resulted in a significant decrease of organised crime. Street gangs, strong in the 1990s, were now in decline.

100th anniversary of independence

Above: Backed by

AWS, a coalition of entities rooted in Solidarność, the centre-right cabinet of Jerzy Buzek (pictured) marked an end to the political fragility of the 90s and was the first government after 1989 to rule during an entire parliamentary cadence (1997-2001).

Buzek's government carried out four major, yet unpopular, reforms of education, administration, health and retirement systems, which caused the AWS coalition to lose the 2001 elections.

Soon afterwards, AWS dissolved. A few years later, Jerzy Buzek became President of the European Parliament.

Right: The elections

of 2001 saw another revival of the postcommunist SLD. It formed another coalition with the agrarian PSL and governed the country until 2005, at a time of the highest unemployment rate since 1989, reaching 20%. Pictured is Leszek Miller, Prime Minister of Poland between 2001 and 2004.

Above & left: Following a long process of nego-

tiations and required adaptation on many fields, Poland signed the treaty of accession to EU in April 2003. A national referendum was held soon after, with 77% of voters approving the country's entrance into the union. Poland became a member state on 1 May 2004. This marked the end of the process of joining western political structures and an entirely new reality for Poland. Ironically, it happened under a postcommunist cabinet.

Pictured left is the campaigning before the referendum in 2003. Pictured above are the crowds on the night of Poland's accession, Warsaw 2004.

Above: In mid-2002, Lew Rywin, a movie

producer well connected within the ruling postcommunist SLD party, solicited a bribe from Adam Michnik, the editor of Poland's most popular newspaper, in exchange for amendments to a media bill that would have enabled the paper’s parent company, Agora, to enter the television business. Michnik recorded Rywin's proposal on tape, which led to the biggest corruption scandal after 1989, and subsequently, SLD's loss during the elections of 2005. Pictured is Lew Rywin (centre) in 2001 at a time when he produced Polański's ‘Pianist’.

Right: Dissatisfaction

with the output of the systemic transformation resulted in the emergence of the first populist party after 1989, Samoobrona.

After the elections in 2005 it became the third biggest parliamentary force. Pictured right is Andrzej Lepper, Samoobrona's leader.

photos: Peter Andrews (Reuters), Studio69 (Forum), Michał Sadowski (Forum), Piotr Malecki (Forum), Piotr Combik (Forum), Adam Chelstowski (Forum), JP Pool (Reurters), Łukasz Ptak (Forum), Grzegorz Jakubowski (Forum), Maciej Figurski (Forum), CBA, Wikipedia.

Left: In 2006,

the Central AntiCorruption Bureau (CBA) was set up as an undercover service equipped with special legal tools, such as the controlled bribe. Soon Poland started noting a decline in the annual Corruption Perceptions Index by Transparency International.

Right: Jarosław

Kaczyński was in charge of the government only until the snap elections in 2007, won by PO under Tusk's leadership.

PO eventually formed a coalition with the agrarian PSL and Donald Tusk became Prime Minister (pictured after his opening speech).

Above & right: Disgraced by Lew Rywin's scandal, the postcommunist SLD was eventually pushed out in 2005, when the conservatives from Law & Justice (PiS) won the parliamentary elections by calling for a moral revolution that would put an end to corruption and the rule of cliques, with liberal-conservatives from Civic Platform (PO) winning second place.

The two parties attempted to form a coalition, but negotiations failed, which led to a durable split between them. PiS eventually formed a fragile coalition with the populists from LPR and Samoobrona. PiS and PO, both having roots in the anti communist movement of the 1980s, eventually became the main rival opposing forces on Poland's political scene. The same year, PO's leader Donald Tusk lost the presidential election to Lech Kaczyński from PiS. Meanwhile, in mid-2006, Lech's twin brother Jarosław formed his government. At that point, both twins were in charge of Poland's two main governing institutions. Pictured above are Donald Tusk (left), Lech Kaczyński (centre) and Jarosław Kaczyński (right) in the parliament shortly before the elections of 2005.

Pictured right are the electoral posters of Lech Kaczyński and Donald Tusk during the presidential campaign of 2005.

Below: Poland's entrance into the EU opened new opportunities for trade and investment. The value of Poland's foreign trade doubled between 2004 and 2008. Pictured is the production line of the General Motors plant in Gliwice, 2006.

Left: The death of

John Paul II in April 2005 brought the country to a standstill, including the suspension of regular media broadcasting, for a whole week of mourning. Pictured are the crowds in Warsaw attending a live transmission of the pope's funeral.

Right: Given the

difference in earnings between Poland and the western countries of the EU, an estimated 2m Poles took advantage of the open borders and moved abroad after Poland's access to the Union. Pictured are Polish workers in London (2007).

2009 2018

Left: Benefiting from

a depreciated currency exchange rate, large domestic market, relatively low public, private and corporate debt, and a stimulative fiscal and monetary policy, Poland was the only economy in Europe to avoid falling into recession during the global crisis that started in 2008. Over 25 years of uninterrupted growth has made the country a star performer among the transition economies. Pictured is Prime Minister Donald Tusk in 2009 during a press conference on Poland being the only country in Europe to post growth during the turmoil.

Decade of lift off. Since the fall

100th anniversary of independence

of communism in 1989, the 1990s was a decade of chaos and building from scratch, making an aquarium out of fish soup, as was famously put.

The 2000s was the decade of consolidation, reaching basic standards for business and economic operations, and building confidence.

The 2010s have seen the country take off, a trend that continues in 2018, despite the ongoing political divide within Polish society.

Above & left: On

the morning of 10th April 2010, the nation awoke to a tragedy of seismic proportions.

The plane carrying the Polish President, Lech Kaczyński, his wife and a whole raft of senior officials and aides, had crashed near the Russian city of Smolensk, en route to a memorial service for those murdered at Katyn. The country was numb with shock and for a while there was unity in mourning. But it did not last – sadly its legacy has only exacerbated the political divide. Pictured above is the site of the crash. Above left are the coffins after their arrival in Warsaw a few days later.

Above & right: In the years following Poland's

accession to the European Union, the body's structural funds became a significant facilitator in the massive development of new infrastructure.

Polish bureaucracy proved to be better prepared than the other CEE countries for the wave of money, achieving the highest absorption rate of EU funds in the region. The initial phase of the boom came during preparations for the EURO 2012 football championship and has continued unabated until today. Pictured right is the junction of A2 and A4 motorways, while the above picture shows the refurbishment of a 100 years old plant in Łódź into a multifunctional centre.

Left: When Poland was chosen, alongside

Ukraine, to host the UEFA EURO 2012 football championship, few Poles believed that the organization of the event would be a success. How wrong they were. The country excelled, and as well as providing a welcome boost to national self-esteem, Poland found itself with vastlyimproved infrastructure and some state-of-theart stadiums. Pictured left are crowds of foreign football fans on Polish streets during the final match. Poland did not succeed in the tournament but managed to draw the world's attention, helping to put the country on the tourist map.

Above: Poland

Today was founded in August 2012, publishing the first issue of its award-winning Poland Today magazine in October of the same year. The aim of the company was, and remains, to promote Poland and Polish business internationally.

Right: In 2014, after

Right: Poland has

seven years as Prime Minister, making him the longest-serving PM in modern Polish history, Donald Tusk resigned to take up the Presidency of the European Council, a position he was re-elected to in 2017. He is pictured in 2014 with his predecessor, Herman Van Rompuy.

become a paradise for summer music festival lovers with a huge variety of vibrant events offering all types of music to choose from, such as the Open'er in Gdynia (pictured) or the Pol’and’Rock festival, the biggest rock festival in Europe.

Left: Since Poland

joined the EU in 2004, some 2 million Poles have moved west for work. More recently, however, there has been an influx of immigrants to Poland, particularly from neighbouring Ukraine. Poland is now the second largest issuer of ‘first residence permits’ in the EU after the UK, handing out 586,000 permits in 2016, of which almost 90% went to Ukrainians. Ukrainians are attracted by the low unemployment rate and higher wages than back home. According to a recent poll, 48% of Ukrainians in Poland plan to stay here for good.

photos: Eunika Sopotnicka, Sergei Karpukhin (Reuters), Marian Zubrzycki (Forum), Cezary Piwowski (Forum), Michal Kazmierczak (Forum), Dominik Werner (Forum), Łukasz Dejnarowicz (Forum), Adam Chełstowski (Forum), Francois Lenoir (Reuters), Yves Herman (Reuters), Petr Josek (Reuters), FIlip Błażejowski (Forum)

Above: Andrzej Duda’s election as Presi-

dent in May 2015 came as a surprise to many, not least to the man he replaced, Bronisław Komorowski, who had been elected in 2010.

Since assuming the presidency, Duda has had to counter allegations that he defers decisions to Jarosław Kaczyński, who many observers believe is the real power behind the throne.

However, Duda remains popular, with opinion poll numbers that are the envy of most politicians, among them Kaczyński himself. Pictured are Bronisław Komorowski and Andrzej Duda after a TV debate during the elections in 2015.

Right: After the

decline of home-grown industrial and financial capabilities in the early 1990s and consecutively over two decades of globalization, Polish companies such as PESA (right) have now gained enough knowhow and capital to start exploiting the potential of the global market.

Above: Given uncer-

tainty over Russia's growing assertiveness, American troops were deployed to Poland in 2017 as part of a NATO build-up in Eastern Europe. Since the deployment is provisional, Polish authorities are campaigning for a permanent US presence.

Right: In September 2018 global index

provider FTSE Russell upgraded Poland from ‘advanced emerging’ to ‘developed’ market status, immediately moving the country from the basket with countries such as Turkey and Czech Republic to the pool which includes the USA, UK, Switzerland, Germany and Norway.

While the move brings its own challenges and a period of adjustment is to be expected, the decision is seen as validation of the country’s rapid transformation from economic basket case to a rugged and vibrant market. Pictured are skyscrapers in Warsaw's midtown.

Above: The big-

gest story in recent politics has been the resurgence of the conservative PiS party, masterminded by Jarosław Kaczyński.

Having won the 2015 parliamentary elections, PiS formed the first government since the fall of communism to be able to rule with an outright majority.

This time however, Jarosław Kaczyński refused to act as PM. In October 2015 Beata Szydło became Prime Minister, replaced two years later by Mateusz Morawiecki (pictured), a former banker and previously an economic adviser to Donald Tusk.

54 looking

consistently pushes boundaries in business, creative production and development, the nature of the country’s future certainly appears to be a rich one, bolstered by ever-growing innovation and international cooperation. In the year of the 100th anniversary of Polish independence, Poland Today spoke with a variety of opinion-formers and leading industry representatives for their take on where the country is headed over the next ten years, and whether recent progress will continue. Poland’s economic development is often, and quite rightly, emphasised in international media, which has exploded across the European stage.

For the first 20 years after 1989, Poland’s economic growth was the largest of all nations which had belonged to the former Soviet bloc. This was a development which stood the country in good stead to navigate the tumultuous financial crisis of 2008: Poland was the only country in the EU which avoided recession. Dr Marcin Piatkowski, the author of Europe’s Growth Champion: Insights from the Economic Rise of Poland, sees in the nation a unique financial model in Europe: “Over the last more than a quarter of a century, Poland has become Europe’s growth champion and the fastest growing middle-high income economy in the world, beating even the Asian Tigers. There are no major reasons to believe that this remarkable performance will stop anytime soon. I am convinced that Poland will continue to grow at a respectable pace and by 2030 achieve a level of income per capita close to 80% of the level in Western Europe.”

forward

Poland has come a long way over the last century, but there is room for improvement and although foreseeable challenges lie ahead,there is hope for the future.

Strength and unity is a must

illustration: Uzenzen

leader

In a Poland which

Poland’s development over the last decades is undeniable, but it raises questions of what the country must do next to sustain its progress. Kamil Pakosz, Business Development Director at retail and leisure investment company PFI Future and head of start-up tourism business Hello Poland, reiterated how far Poland had come since 1989, but warned that the future for the country was more complex. “There are many internal and external threats that can disrupt the fragile balance that we have been trying to achieve for the last 29 years. Our ability to win those fights depends on how strong and integral we are as a country.

My concerns are that without hard work on building a strong and unified society we could lose.” Most notably, interviewees stressed Poland’s recent tumultuous relations with the EU as a cause for concern. Poland joined the EU in 2004, catalysing the growth of a modernised society: the country received £56bn in development funds between 2007 and 2013, which were

invested in infrastructure, and its GDP soared from $255bn in 2004 to an estimated $614bn this year. However, all has not been rosy. Artur Kazienko, CEO of Kazar Footwear, believes a lot more could be done to support the nation: “I hope that Poland will use the potential of the EU in the coming decade.

Strengthening the role of our country in the international arena, as a valued member of the European community, would bring tangible results not only in terms of business or politics, but also for society and the economy.”

Common sense is a challenge For David Dolhomut, an acting trade commissioner in Warsaw, the issues are more specific: “As Poland keeps growing as a nation there will be a couple of challenges in the coming 10 years.

Since Poland’s entry into the EU, it has been the largest recipient of EU funds. After 2020, the country will have to start thinking on how to sustain itself.”

With sustainability in mind, Dolhomut also raised concerns about Poland’s development in terms of energy sources, stressing that the country needs to move away from Russian gas and local coal. An extension of this idea came from Piotr Sawicki, an architect, planner and consultant in the real estate market since 2003, and co-designer of the Warsaw Royal Route redevelopment. “Sustainable transport, bike use, electric cars, high energy efficiency, use of renewable energy sources or wise water treatment and smart city concepts are starting to gain some real interest and wide use in Poland. However political decisions may change this and ruin it if we keep on financing the coal plants and paying the ensuing fees to the EU budget. It’s a challenge to make the economy and common-sense fit with ideology.”

The best designers are here

tion of international cooperation across industries is one which would involve a national effort to unwrap opportunities: “I am afraid that we will keep closing up to other cultures in the future.

Some countries already consider us as a nation which rejects international collaboration. If we do not change our approach it will block our development.”

Art investment as a norm Though Poland has been making progress to achieve EU green targets over the last year, most recently improving recycling quotas and embracing renewable energy, the lack of consistent transnational cooperation threatens any permanent progress. Indeed, individuals overwhelmingly suggested that technological advancement on an international scale should be promoted to a greater extent; a message which stretched across varying industries. For Beata Niemczuk, partner of Aurabilia – a firm of contemporary art business consultants – technology is a central medium through which Polish art can expand its potential: “Investment in art as a class asset will become a norm in Poland just like in mature markets.

Social media like Instagram, Snapchat and technology-driven solutions and services (like blockchain or cryptocurrency) will do a major job of democratising art among the younger generations.”

In other creative industries, like startups, similar ideas were suggested.

Karol Nowalski, Chief Product Officer of two Polish tech startups, believes that Poland is increasing its potential: “Many influencers in tech industries are already looking at Poland as a potential European hub of new business development. As long as we manage to keep this up, it’s going to become a fountain of opportunities.” However, Bartosz Dobrowolski, a Member of the RICS Advisory Board and Founder of Proptech Poland – a network of professionals who aim to digitally transform the property industry in Poland through innovation – warned: “While in the financial services industry Poland is one of the most innovative, compared to the UK, USA or even Western Europe we are still a few steps behind when it comes to real estate digital transformation.”

Sustainability has been trickling into Poland for the last few years, a trend particularly seen in production industries such as fashion. Daria Lesniewska, Head of Online Marketing and PR at homegrown fashion brand RISK, stressed that current advancements promised a bright future: “Poland is a remarkable production base; the best designers, such as Chanel, Isabel Marant, Marc Jacobs and many Scandinavian brands have been and will continue International Polish to base their production in Poland. brands needed The growing sustainable fashion trend Jarosław Bator, CEO of co-working prois causing production to migrate from vider Business Link, and Wiktor Doktór, China mainly to Poland, which is a major CEO of Pro Progressio, an organisation chance for our development.” Yet she which supports entrepreneurial growth, admits to concerns that such progress particularly in the business services secmay be damaged by increasing polari- tor, agreed that a focus on the foundasation in society, an opinion echoed by tions of development needed to occur Jakub Luboński, the CEO and one of the before Poland could reach its potential, cofounders of Bin-e, which offers IoT- suggesting investment in local areas based smart waste bins. His prioritisa- to promote a better quality of life for

business trailblazers was of paramount importance. The idea that Poland is en route to a more mature development is undeniable, but the country remains stuttering towards progress, and complications were cited as being principally the result of the nation’s inward-looking attitude. Hermann Simon, founder and Honorary Chairman of business consultancy Simon-Kucher & Partners, and the only German in the Thinkers50 list of the most influential international management thinkers in the world, suggested that the Polish state should promote itself to a far greater extent: “A big challenge is branding. There is not a single Polish brand among the global 100.”

A similar sentiment was relayed by Joanna Plaisant, Country Manager for international real estate standards organisation RICS, who suggested that the central development needed was in Poland’s international renown – a factor which has the potential to open up the country’s progress ever-further: “We are strong in terms of economic growth, but for investors the reputation of the country is equally, if not more important. The FTSE Russell index has reclassified Poland from Advanced Emerging to Developed market status from September 2018. We strongly hope that this will help in terms of how we are perceived.” Plaisant also stressed that Poland still required outside investment, even down to human capital – following the nation’s accession to the EU, around two million Poles went abroad, draining the country of talent and labour.

Plaisant suggested that Poland now needs to encourage trends to reverse: “The biggest concern currently is human resources. We need to think of a way to bring workers to the market, including from abroad.” For Katy Carr, an award-winning British-Polish recording artist, such development should begin with history, building a brighter future on a reliable past: “Poland is still a young country and has to continue to celebrate the richness of her culture and history. I hope that Poland stays strong to her identity, heritage and creativity without losing her traditions.”

Despite being a young nation, Poland has demonstrated considerable growth over the past number of years, cementing its position in the EU and globally with increased development and innovation. The world’s key players in business and economics, among others, acknowledge Poland’s progress and emergence on the global stage. There is still a way to go, but, as Dobrowolski maintained, the country remains “the bridge between the East and the West.”

The extent to which Poland capitalises on these connections in the years ahead will reveal just how bountiful the country’s development can become.

by Liam Frahm & Juliette Bretan

55 leader

Leading global index provider FTSE

Russell reclassified Poland as one of the 25 most advanced global economies including the USA, UK, Germany and France. Poland is the first CEE country to be upgraded to Developed Market status.

56 leader

‘Biggest challenge for Poland is to improve public services including health & education’ Carlos Pinerua: World Bank Country Man-

ager for Poland and the Baltic States. An economist by training, with professional expertise in banking and financial sector issues, Carlos comes from Venezuela and was previously Country Manager in Zagreb, Croatia

As the incomes of Polish people rise,

Poland Today

reached out to professionals and opinionformers from a variety of sectors about their thoughts on Poland’s future and the main challenges, opportunities that are in store, as well as their personal hopes and concerns for the country in the next 10 years.

so do their aspirations. Demands for better, more transparent, and client-oriented institutions are growing sharply, so the biggest challenge for Poland is to improve public services, including health and education (both basic and higher), to allow Polish people to fully achieve the living standards enjoyed in Western European countries.

After so many years without an independent state, Poland is now one of Europe’s most dynamic societies and people are hungry for success.

They want to expand their individual qualifications, set up new companies and improve their lives. Building on this spirit, Poland has a chance to fully catch up with its neighbours to the west in 10 years.

Only a few countries in the world have witnessed as consistent a growth – both fast and stable – as Poland has in recent years. I hope Poland will be able to continue down the development path that helped it achieve highincome status in record time. Being the largest economy in Central Europe and having well-educated and very entrepreneurial people positions the country to prosper in the future.

My biggest concern is Poland’s demographic situation. Poland is one of the fastest ageing societies in Europe – 35% of the population will be over 65 by 2030. This will have a tremendous impact on social spending, the country’s institutional framework, and the economy. Also, global protectionism is on the rise at the same time as the EU is facing turbulent times.

This could negatively impact countries like Poland that are very well connected internationally and, thus, dependent on others.

‘Open access to the whole European market is the main asset the opportunity can only be exploited if Polish entrepreneurs are aggressive and ambitious in their expansion plans’ Witold Orłowski: Professor of economics,

Chief Economic Advisor to PwC Polska. Former economic advisor to President Aleksander Kwaśniewski, member of the National Development Council of President Lech Kaczyński, member of the Economic Council of Prime Minister Donald Tusk, and author of 12 books and over 200 scientific publications.

Society needs to digest the effects of the fast economic and social changes over the past decades. The economy is open to the world, but society not so much. Economically, the main challenge is to shift from the growth model based on cheap labour to the knowledge-intensive growth model based on innovation. Another challenge is how to increase of the saving rate, which is necessary to finance the investment. As ever, open access to the whole European market is the main asset. Obviously, the opportunity can only be exploited if Polish entrepreneurs are aggressive and ambitious in their expansion plans.

Although Poland will not be able to match the Western European living standards and productivity levels over the next 10 years, I hope that it will become a highly dynamic economy, with society in general proud of the country’s fast development. I also hope that the period of mistrust in the market by a significant part of society, including the younger generation, is over.

My main concern over the next couple of years is connected with Poland’s relations with the EU. Polish internal politics, determined by the current turbulent powers, will lead to an accumulation of problems. I hope that the tensions will calm down before any critical situation arises.

Tony Housh: Chairman of the American Chamber of Commerce. He has over twenty five years of experience in Poland and Central Europe as an advisor, public company board member and manager. He is currently an executive in the aerospace and defense sector.

Poland is continuing a strong growth path and I believe that it will continue over the coming decade. While exact GDP growth numbers are difficult to predict more than a year or two in advance, Poland’s ongoing growth, development of its FDI pool and effective use of remaining EU funding mechanisms bode well.

The challenges for Poland will be to establish itself in the front line of EU countries and to meet the rising expectations of its citizens on income, quality of life, healthcare and education while maintaining a robust economy. In the security sphere, it's important that Poland retain its active role in the collective defence of Europe through NATO, further develop its partnership with the US and deliver on its ambitious modernisation plans for the armed forces.

During the next 10 years, I hope that Poland will grow its high value-added sector in the economy, continue to welcome foreign direct investment and evolve the tax and legal environment to accelerate the further development of an innovative ecosystem for companies, both large and small.

The future is not without challenges.

Poland needs a prosperous EU and the EU needs a prosperous Poland anchoring Central Europe in the single market.

Maintaining a strong voice in the s critical for long-term growth and stability.

The investment and operating environment for investors – foreign and domestic – must be cared for and, where possible, improved. Innovation, new technologies, and jobs require private investment and increasing the level of investment internally from all sources will be needed to maintain strong growth and meet the challenges of raising GDP per capita closer to the levels of our western neighbours.

Poland will face the challenge of providing the right type of labour force to meet the expected demand while supporting a growing number of pensioners. Productivity and technology will address this challenge, but more people will be needed to allow the country to fully take advantage of this historic growth and development opportunity.

Economically, the decade ahead should be prosperous for Poland. As Poland approaches 30 years since the transition of 1989 it's remarkable to look at the extraordinary changes in the country and its regional environment. My hope is that the coming decade will be one where politics will not trump good policy so that Poland will be secure and prosperous in its European home.

Dorothy Dabrowski-Winterscheid:

Managing Director of the American Chamber of Commerce in Poland since 2002 where she is responsible for keeping the organisation active, esteemed and well-networked. She has served on the Executive Council of AmChams in Europe and was a founder of the Polish Professional Women Network (PWnet).

I expect the next 10 years to be good years as Poland continues on a trajectory of growth and development. This is the most dynamic country in the region and an impressive contender across Europe. In my view, the main threats for Poland come from the outside – political and economic instability from our neighbours or globally.

Although there are concerns about decisions of the current government, relative to what is happening in other countries around the world, Poland’s issues look less dramatic.

As someone who works with global corporations, we see how easy it is for investors to move quickly to the best markets around the world. Not so long ago, Poland was competing for investors with the likes of Egypt, Turkey, and India. That competition has gone and Poland stands out as a stellar investment destination for many investors.

Investment funds are particularly sensitive to matters of perception so this is an area that could gain investment if the country’s PR were improved.

A growing challenge since EU entry has been the confrontation of migrants into Poland. The recent migration crisis has only exacerbated the situation and Poles need to deal with the challenges of a changing society in a country that has long been homogenous and insular.

I am concerned about the next generation of workers. The generation nearing retirement in a decade was the generation that made Poland the success that it is, often with much sacrifice, though with much opportunity as well.

Will the new generation find the motivation to work nearly so hard? Does prosperity stifle ambition?

To this end, I am concerned about the future of education in Poland. On the one hand, we need to maintain the highest standards to compete and be ready for the fast-paced and digital future; on the other hand, we should go back to solid vocational training to make sure we have the basic professions that the economy needs.

My hope is that in these dramatically changing times, Poland finds its voice vis-a-vis the EU and the US; that Poland finds the right balance between promoting its own values and ambitions, while staying open to the world.

‘My hope is that we will build a new brand of Poland as a transformation nation’ Tomasz Rudolf: CEO of The Heart, corpo-

rate center for digital ventures, located on 38. floor of Warsaw Spire. He works with leading multinationals that join forces to accelerate their digital transformation, find & integrate technologies from the startup ecosystem and co-create new businesses.

The war for talent will

be the biggest challenge in business. As corporations and startups work on building new processes, products and businesses for the new digital era, the demand for skilled designers, programmers, data scientists and many other creative professionals will be rising. The shortage of human resources will force new approaches to immigration, re-skilling people from industries that went through increased automation, and leveraging the ‘silver workers’.

Poland is already a shared services powerhouse. As corporate IT centres turn into agile hubs of digital innovation, Poland can become a hotbed for B2B and enterprise spin-offs and startups, supplying businesses globally with new technologies. As new industries are created, our digital ‘hidden champions’ can leverage the increased access to venture capital and IT talent to build new scalable ventures.

My hope is that we will be able to build a new brand of Poland as a transformation nation, recognised for its ability to change, entrepreneurship and our rebel hearts. I hope that Polish entrepreneurs will stop feeling inferior to their international colleagues, and courageously build and scale their companies worldwide.

I am concerned about our education system – we need to reinvent it for the 21st century. As automation of many jobs will rise, we need to build the ability of future generations to work in diverse teams, rather than memorise facts; challenge rules rather than sit quietly from 9 to 5. We need to break the boundaries between subjects and faculties to encourage project-based, experiential learning.

Leszek Baj: Senior Analyst for Business Af-

fairs at Polityka Insight, where he is responsible for monitoring the activities of ministries, business institutions and companies. Previously he worked as an economic journalist and next as a deputy head of business desk at ‘Gazeta Wyborcza’ newspaper.

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The media industry in

Poland has had a difficult time in recent years. Media outlets are subject to global trends of readership decline in the printed press and the struggle to maintain viewership in TV. Television stations face growing competition from new tech companies like Netflix and YouTube. So I would say that main challenges for media are: to keep growing and searching for new sources of income; to fully transform from analog to digital; to diversify sources of income; to reduce dependence on the advertising of state-owned companies; to keep their independence; to improve the quality of content I think that technology can be the biggest opportunity. Media industry can use new technologies to develop new products, but for that we need people who understand the world of media and technology. A huge opportunity for media is the growing Polish economy, which is catching up with the European economies. Growing wealth and consumption offers the chance that people will spend more money in media.

I hope that Poland can be more united and not divided as it is now.

I hope that there will be no major crisis that can harm the Polish economy and the Poles, and I hope that in the future Poland will be a stable economy and strong country within the EU. However, there are many problems ahead of Poland such as demography – if nothing is done there will be fewer and fewer Poles. Companies have huge problems with the deficit in the labour force. Without employees, companies will not invest and GDP growth could slow down. Then there are the divisions in society. This is a growing problem connected to politics which affects the daily life of Poles.

Poland is growing fast and transforming its economy, but there are still many things which need to be addressed, healthcare being a prime example. There’s also the potential middle-income trap. Until recently our economy was growing and increasing in efficiency mostly due to the inflow of foreign direct investment. We have to move forward. Poland needs to increase R&D spending in order to create new technologies that can be exported globally. We need more global companies with Polish capital – private not public – which will be able to create global products.

A recent Reuters

report revealed that 86% of Poles get their news online, including social media, while only 27% use print as a news source. Despite the high number of online readers, only 16% pay for online news. The top social media sources for news are Facebook and YouTube.

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Andrew Wrobel: Head of Content Strategy

& Research, and Founding Partner of Emerging Europe, a London-based think tank committed to boosting the social and economic development of 23 countries of Eastern Europe and raising awareness about the region.

The biggest challenge

Poland's unemployment rate

is the lowest it’s been in 28 years at just 5.8%. This was the lowest since October 1990, when it was 5.5%. While the unemployment rate was expected to remain unchanged at 5.9%, it decreased in August. Last year, the jobless rate was 7% according to Statistics Poland.

‘The future for infrastructure development in Poland still looks bright’

that I see will be demographics. The unemployment rate has been going down since the 1990s, even if we take into account the economic cycles or the global financial crisis, and is currently the lowest in the country’s history. Further devel- Agnieszka Gajewska: Partner at PwC opment will require additional talent, and the Leader of Capital Projects & Infrastructure practice in Central & Eastern despite automation and digitalisation.

Europe. She is also an author of the first There are only two ways of addressing comprehensive book on Public-Private that, either by attracting talent from Partnerships in Poland (2007). abroad or utilising the labour force in the country more efficiently.

One of the main challenges for infraPoland has a huge diaspora – it is structure development will most probestimated that about 20 million Poles ably be reduced EU financing stream live outside the country – and some from 2022 onwards. If we want to conof them might decide to come back. tinue with the investment level we will However, they have become used to need to look for alternative sources different lifestyles and they will want of finance, including private financto see further social and economic ing. Also, the infrastructure industry reforms. The current political narrative is undergoing significant changes due doesn’t support immigration and the to increased level of innovations such relatively easy access to the Ukrainian as 3D printing, AI, drones, self-driving labour market could soon be exhausted. vehicles and modular construction.

I believe the labour force at home is not These will impact the way infrastrucused to its full potential and again, the ture is designed and developed, creatpopulist measures the government has ing both opportunities and challenges taken recently – lowering the retire- for construction companies. ment age or the 500+ programme – The future for infrastructure develhave encouraged a lot of people to stay opment in Poland still looks bright. home instead of developing their skills. Despite significant progress, the marPoland is the biggest economy ket is still far from saturated. A number in the region and the second larg- of megaprojects are currently in preest country after Ukraine – and as of paratory phase, including the Central recently, the first developed market in Transportation Hub which – if develthis part of Europe. Unlike any econ- oped properly – could give a boost for omy in the Old Continent, Poland has the economy far beyond the infrastrucgrown continuously since the begin- ture sector. There is also significant ning of its transition. It boasts well- potential for optimisation in how infraeducated and industrious talent. Just structure is operated and maintained, to give one example, at the inaugural opening opportunities for the business, Emerging Europe Awards earlier this including specialised newcomers to the year, we looked at global champions market.

I hope that Poland will maintain its in our region and Poland has produced the largest number of them by far. development pace, further bridging Interestingly enough, almost all of them the gap between Poland and Western were created in the early 1990s, not sev- countries. Another wish is to continue all eral decades ago like many German, or the good work towards the creation of French or British companies. a well-established position in the interI hope that Poles will develop a new national arena as the largest economy in definition of patriotism that matches the Central and Eastern Europe and a safe 21st century, without nationalism and harbour for international investors.

Two key concerns come to my mind chauvinism. It is clear that all people, everywhere, have the very same right which I believe may play a critical role to life, liberty, the pursuit of happiness over the next 10 years: the political and respect. As Theodore Roosevelt, environment and the workforce marthe 26th US president said over a cen- ket. Prolonged political strains will tury ago: ‘Here is your country. Cherish eventually affect Polish businesses and these natural wonders, cherish the nat- may impact our development. And ural resources, cherish the history and with dynamic changes in the economy romance as a sacred heritage, for your due to digitalisation and innovation, children and your children’s children. Poland will have to find a way to attract Do not let selfish men or greedy inter- and retain talent. ests skin your country of its beauty, its riches or its romance.’

Marcin Klammer: BNP Paribas Real Estate CEO for CEE. Before this he was the European Sector Leader in Arcadis, a leading global consultancy and design companies. He is a licensed architect, member of RICS and the Professional Chamber of Architects.

Above of all, the main challenge will be to find and retain talent. We see a big outflow of the best people out of Poland, not only in my industry but across the sectors. This also impacts the prices of assets in real estate, the availability of construction companies and their capacity to undertake new projects. The country needs not only to remain attractive for foreign direct capital as an investment destination but also to remain attractive as a place to live for young ambitious people. This needs to be taken into account by politicians – at all costs.

The other challenge concerns the credibility of Poland and the region as a destination for FDI. On the other hand, with the growing maturity of our country yields will get closer to those in the west. This means that the returns anticipated by foreign investors may not be as attractive as in other developing countries.

We need to make the protection of the environment a much higher priority than it is now, not just for the government and local authorities, but for individuals. For example the smog greatly affects the quality of life.

I suspect that people already choose where to live based on the quality of life – and this starts with the quality of air. Accessibility of good healthcare for everyone – especially for the elderly – will be increasingly important. Here Poland, unfortunately, has a long way to go. Another challenge is the instability of policies. Changes in legislation and taxes create anxiety among investors, both domestic and international. From the tax standpoint, Poland remains relatively competitive, but the instability and unpredictability of the system represents a big threat.

A major opportunity is the availability of land to develop new projects in order not only to catch up with more developed countries, but to exceed them.

Another opportunity is the improvement of infrastructure. Due to the future reduction in EU funds, Poland must create a system of financing infrastructure projects based on sustainable solutions including the private and public partnerships projects, private finance initiatives or other forms of hybrid financing.

My hope is that Poland will become tightly integrated and united with the EU through its values and economy.

Politically, we should look for strong allies closer to our borders. Our leaders must understand that respect and efforts to find mutual understanding will strengthen Poland's position.

Robert Dobrzycki: CEO of Panattoni Europe, Robert oversees the company’s operations in the United Kingdom, Germany, Poland, Czech Republic and Slovakia. Dobrzycki opened Panattoni CEE’s operation in 2005. In 2018 the company was named as largest developer in Europe by PropertyEU magazine.

Access to

qualified personnel and thus the search for employees, will be the biggest challenge for the industrial real estate industry in the years ahead.

This is directly related to the dynamic growth of the e-commerce sector, the specificity of which – especially regarding handling orders – requires intensified human labour. We are already observing an increased interest in warehouse investments in emerging markets, which is caused by the search for workforce and, at the same time, a trend of being closer to employees.

The global development of the e-commerce sector will be a chance for Poland in the context of the industrial real estate industry. This, and the servicing of our western neighbours, is a driving force behind investment in Poland, and we are happily seeing increased activity in the domestic market. The development of road infrastructure will also be crucial, allowing the influx of new business, especially in Eastern Poland, and improve the status of smaller Polish cities.

Above all, Poland should take advantage of its strategic location in Europe, also in the context of the onshore part of the New Silk Road, Belt and Road Initiative (BRI) to start a promising economic cooperation with Asia. Secondly, we should continue to develop the infrastructure that will allow us to become an essential part of BRI and at the same time connect with the West. I am also convinced that there is a need to pursue more intensive Polish marketing on the international arena, which will not only result in better economic and business development, but will also provide an influx of new investors.

As a country, we cannot boast of many domestic enterprises with global influence. Our business sector plays a subordinate role in relation to other world economies. And although such companies as LPP or Inglot are becoming more and more successful, I would like to see additional strong Polish brands that have their own strategies and are able to develop abroad, the more so because Poles are extremely creative and able to rise on a worldwide scale.

‘The way we live, work and travel has changed over the last 10 years, which has also changed the way we look at and plan new developments’

Gerard Schuurman: Project Director

of the Imperial Shipyard in Gdansk, which is transforming the historic, industrial waterfront location into a new urban, mixed-use district.

Gerard has over 10 years of experience in managing large scale mixed-use and residential projects in Amsterdam.

One of the main challenges for the real estate industry will be to meet the demand for affordable housing. In TriCity it’s difficult for local inhabitants to buy. Our mission for the coming decade is to build a district where people can afford to live. In the city centre, apartments are increasingly rented out on a short-term basis, like a hotel. While this creates an income-stream for the owner, it disrupts the quality of life in the neighbourhood. Amsterdam has seen the ‘Airbnb-ification’ of some areas and, having lived there for 12 years, trust me – this is not what you want.

The way we live, work and travel has changed over the last 10 years, which has also changed the way we look at and plan new developments.

One of the biggest opportunities I see is to continue the urban revolution, and create sustainable mixed-use developments – all-inclusive neighbourhoods – where people live, work and rest, all in close proximity. This is one of the pillars in our plans for the revitalisation of the Imperial Shipyard.

I hope that Poland will not lose the speed of the economic growth and adjust its potential to the new reality, with less EU funding being available. I meet a lot of positive-minded Polish people, so I trust we will get there. Alongside the economic growth, Poles have started to demand better wages and government services. Due to the lack of both, many people left the country, including many young, well-educated employees. In the longer perspective this is a major concern.

Robert Mołdach: Co-founder and President

of the Board of the Institute of Health and Democracy, a forum for democratic discussion on health, Robert is an economic expert specialising in the organisation, financing, efficiency and safety of healthcare.

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The aging population

and rising costs of healthcare is the straightforward answer. We need to focus on the solution, not the problem. We know the solution, but it is a huge challenge. We need to include social spending in the total cost of care, redirecting the budget so that the pyramid of care is based on prevention and primary care, also coordinating care when diagnosing and discharging the patient. The network of hospitals needs to be redesigned so it is based on patient needs rather than personal, political or historical concerns.

Doctors’ tasks need to be outsourced to nurses, and nurses’ tasks to other medical personnel. An ecosystem needs to be created which supports the development of innovative medicines in Poland.

These are just a few examples. But which government will be brave enough to corner the bull?

The opportunities are in e-health, telemedicine, mobile apps, integrated health records and AI-based health advisory solutions. The muchdemanded integration of public registers would immediately open endless opportunities in cost management and value-based healthcare, while expiring patent rights for innovative medicines will bring the costs of care down and make it more accessible.

I hope that different parties and political movements will finally and collectively consider healthcare as an area of profit for the national economy, rather than a cost in the national budget.

Although Prime Minister Morawiecki declares healthcare to be the paramount priority, in reality it remains treated the same way as the police or the military forces – as a cost item. The declaration to grow healthcare spending to 6% of GDP shows that the focus is there, but the paradigm in healthcare must shift. I actually believe we are quite close to understanding this.

The nation has often been torn apart in its history – in the 18th century between three superpowers, then in WWII, and then by the division of the world after the war. The tensions and differences that we see in politics today are a simple consequence of wounds that have never fully healed.

This makes us weaker than we should be. In order to cope with our challenges, we must focus on our common objectives. Having said that, our international allies need to make more effort to understand our way of perceiving reality. Thankfully, business remains smart, keeping its eye on the economy.

Prime Minister

Morawiecki spoke about healthcare spending at the Economic Forum in Krynica in September 2018. The president signed a law that would gradually increase healthcare spending by 2024 to 6% of GDP, up from 4.78 this year.

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62 Building business

blocks

photo: Is Magilov

PKO Bank Polski implements blockchain transaction platform

Earlier this year, PKO,

Poland’s largest bank announced plans to utilise blockchain technology in recording client transactions. Coinfirm, the company behind the technology, is a Polish startup and is an influential leader in the blockchain and RegTech field. Grzegorz Pawlicki, head of innovation at PKO, said, “Blockchain meets the key requirements for durable media, guaranteeing confidentiality and integrity of the documents delivered to clients, which additionally increases the attractiveness of this technology for the banks.”

The bank has trialled Coinfirm’s Trudatum platform for over a year and is preparing to implement the technology in line with its current systems.

With the large growth in public awareness of cryptocurrencies like Bitcoin and Ethereum over the last decade, it is no surprise that innovation utilising blockchain, especially in the financial sector, has become increasingly of interest to more and more people. However, the technology remains confusingly complex for some. In order to clarify some of the ins-and-outs of the technology, Poland Today spoke to Alexander Audet, Head of Technology & Development at BANG Mining in the US, a cryptocurrency mining farm that assists data centres in attracting clients by providing publications on the production of mining hardware.

“It’s easiest to explain blockchain by breaking down how we trust banks to be the trusted third party to facilitate transactions for us,” said Audet. “Every time you swipe your debit card, a bank checks each party’s balance before approving the transfer. If we could not trust the bank to oversee the transaction, then one solution would be to make everyone the “bank” by allowing anyone to check the balances for transactions. This is the solution blockchain presents. By creating this public network of computers as nodes, blockchain creates a way of sending information without going through a third party, like a bank, for example. This can be done because each user becomes the a trusted third party; each computer in the network is called a ‘node’ and each node keeps a complete, unchangeable ledger of all blockchain transactions.”

Audet continued, “every time a transaction occurs, a node – nicknamed a ‘miner’ – handles the transaction, packing all of these into a block.

Every miner then attempts to solve a complex mathematical problem, and the first miner that finishes the problem adds their block of transactions to the ledger. Some miners process as many as 50,000 attempts, or hashes, per second. The process is lengthy and tedious, however, this is intentional to prevent malicious users from spamming transactions. The miner that solves the math

problem first, gets a reward in newly minted cryptocurrency. This process is how miners get paid. Each block added to the chain contains an ID, the ID of the previous block and a timestamp. Any attempt to insert an old transaction in a new block falls foul to the security of the chain - there would effectively be two chains of blocks: the current long one and the alternative, bad one. All of these measures ensure that data stored in a blockchain is immutable. The key here lies in that the power to change the ledger is decentralised, where a centralised authority could quickly change a ledger that is not visible and has complete power over it.”

An innovative platform Blockchain’s immutability is the basis for Trudatum. The system was created at the end of 2016 as a supporting technology for Coinfirm’s AML (Anti-Money Laundering) platform before becoming more widely implemented by the firm.

Paweł Kuskowski, Coinfirm CEO and co-founder, described the platform: “It’s a user-friendly tool for the registration and verification of data, solving the problem of the management and safe flow of documents between organisation and client. It is an innovative platform designed to ensure secure transaction of documents that the bank sends to the client. Let’s imagine that all the documents sent to clients could be automatically verified and have additional value attached in the public blockchain. Everybody can validate the document and confirm that it’s not corrupted. Trudatum improves many processes in organisations like banks, financial institutions and insurance companies by delivering a new standard of assurance, efficiency, and security on the market. Truth be told, Trudatum could be applied in almost every business.”

The project has been more than a year in the works, with Coinfirm working together with PKO and MIT’s Enterprise Forum Poland. According to Kuskowski, the “implementation of Trudatum by PKO is the first big commercial implementation of the blockchain technology by a bank in Europe, and potentially in the world. Thanks to Trudatum, PKO has gained the agility and increased the efficiency of the process of communication with the client. Our experience in cooperation with the banks gives the full picture of their needs. The financial sector is very demanding in terms of the documentation quality. We are very proud to be working with PKO. It was an exciting journey from the start of the project to see its final implementation.”

Expanding the platform Coinfirm began operation in April 2016, although its co-founders had been

involved in blockchain for years before changing client needs and to keep up that from backgrounds as diverse with the development of technology. as cryptocurrency marketing and min- Insurance companies are very reguing to compliance and fraud investiga- lated and Trudatum can be a solution to tion. From day one, Kuskowski states, some of their requirements. Of course, the firm “worked from the philosophy there are other sectors as well – such that cryptocurrency and virtual cur- as retail, production or pharmaceutirency are here to stay and that they cal – where processes include many will need processes like AML or KYC actors and organisations are required (Know Your Customer) to fully par- to communicate with their clients. This ticipate in the global economy. Our is where blockchain can excel. There are diversity gives us the power to act and hundreds – if not thousands – of appliwe share the same passion – it makes cations for blockchain, even in this early us a strong and supporting team. I find stage. There are certain characteristics our work really exciting. Within just of the blockchain technology – such two years, we have grown spectacu- as its immutability – which allow for larly – we now hire nearly 100 people a new level of transparency. This has a and work with clients from markets all massive potential for application – effiover the world. There are a lot of oppor- ciency in the exchange of data is crutunities in the blockchain space, but we cial for a business – and we are going are focusing on tools for blockchain. to see a lot of implementation in payWe are expanding our platform into ana- ment, bonds and stocks as well as nonlytics and a wider application, so there financial industries.” is a very exciting roadmap for the Huge potential Trudatum development.”

PKO’s work with Coinfirm began Indeed, this sentiment is shared by through MIT Enterprise Forum Poland, Audet, who stated, “blockchain’s smart a method that other financial insti- contracts can play a crucial role in AI tutions are following. According and genuinely autonomous robots. to Kuskowski, “we are seeing banks and The most prominent role it can play is financial institutions creating innovation letting those in more rural countries labs, specialised units within organisa- receive financial services typically tions focusing on finding innovative privy to only those with good credit solutions. We can also see that – both or those from a more developed counin Poland and abroad – many insur- try. For example, there are generations ance companies are beginning to use of people living on the same piece smart contracts – this is where con- of land that lack a title deed to prove tracts are converted to computer code ownership. This prevents them from and stored on a system supervised collateralising it for a loan to create by the network of computers that run a business. Modern banks may not trust the blockchain. This is a good signal these people, but blockchain can allow that the whole market is moving in this them to access the world of finance direction. In Poland, big international without the need for a bank. This may banks are of course beginning to build be idealistic for sure, but the technoltheir own blockchain units, combining ogy does allow for the possibility to be with the experience and ideas of young actualised. Cryptocurrency won’t supcompanies. However, we are also see- plant modern fiat currency, but it is the ing a trend of local banks creating their next evolution of how money should own solutions – Alior Bank, for exam- work. It needs regulation that won’t ple, has a team which delivered its own kill the creativity of software engisolution based on Ethereum, the public neers but equally allows for companies open-source blockchain network.” to stretch their wings.”

This clearly shows that blockchain’s Blockchain has huge potential. potential is not limited to banking. In shipping, IBM is working on a platFor Coinfirm, Kuskowski predicts that, form called Wetrade that'll allow “the next sector is insurance. Digital shipping companies to save trillions transformation in the economy is of dollars by allowing intermediaries forcing insurance companies to meet to share data and track product movement. In the music industry, blockchain could help musicians retain ownership of content, while technology could even assist countries with a less stable political climate, by decentralising voting through the creation of incorruptible voting ledgers. The difference for PKO and Coinfirm is that the step has already been taken. The implementation of the Trudatum platform has moved from discussion of the potential that blockchain technology holds into real world implementation. by Liam Frahm

‘It's the first big commercial implementation of blockchain by a bank in Europe’

63 business

Liam Frahm is Poland Today’s editorial co-ordinator and is based in the United Kingdom.

He currently studies politics, philosophy and economics at Oxford University and is interested in current and international affairs.

64 Saving a nation business

by multiplication With the lowest fertility rates in Europe, Poland encourages family growth.

“We rabbits know how

Annabelle Chapman is a Warsaw-

based journalist. Her articles from Poland and Ukraine have featured in The Eco­ nomist, Foreign Policy, Newsweek and Foreign Affairs, among others. In Warsaw, she is also English-language editor at Polityka Insight, a think-tank.

She has a degree in Politics, Philosophy and Economics and a masters in Russian and East European Studies, both from Oxford University.

to ensure numerous offspring,” centage points since 2016, the year that 500 Plus was introsays the voiceover, as fluffy rabbits cavort in a vegetable duced, while increasing in most of the other countries. patch. “If you ever want to become a parent, follow rabbits’ example.” This video, released by the Ministry of Health Financial family planning in November 2017, is part of the government’s efforts In the first two years after 500 Plus was launched, the govto get Poles to multiply. The demographic situation is serious: ernment handed out 42.6bn zł to 3.7 million children from 2.4 the country has one of the lowest fertility rates in Europe, million families. For many parents, not least single mothers around 1.4, below the EU average of 1.6. Despite the increase or fathers, an extra 500 zł or two can go a long way, in labour migration from Ukraine in recent years, Polish especially outside the big cities. Child poverty has fallen companies are already struggling to find workers. The con- dramatically, too. This summer, over 1.25 million children tinued labour shortage could have a negative impact on attended summer camps in Poland or abroad, with the high number attributed in part to 500 Plus.

Poland’s economic growth, the World Bank has warned.

The benefit has also enabled poorer Since winning the elections in families to afford a holiday by the seaOctober 2015, the socially conservaside. More seriously, the benefit has tive Law and Justice party has introhelped parents reduce debt and start duced new welfare policies, notably saving. One single working mother for families with children. “Children and in a town east of Warsaw said that the family are the foundation of Poland; receiving the 500 Plus benefit for her we must ensure that families are safe, two sons enabled her to start savlive in dignity and that increasingly ing money for their future for the first time. The benefit’s impact on the birth more children are born in Poland,” said Deputy Prime Minister Szydło, prerate is more difficult to assess. Over senting at a PiS convention in Warsaw 400,000 children were born in Poland on 14 April. “This is our biggest challenge in 2017, around 20,000 more than today,” she added. As far as upping the previous year. However, the benefit the birth rate is concerned, PiS’s flagwas coupled with broader economic factors such as low unemployment ship policy is the “500 Plus” programme, launched in April 2016. It involves and rising wages. a monthly payment of 500 zł (around The broader economic conse€120) per child, from the second child quences of 500 Plus are only gradually onwards. In poor families, it begins with emerging. Critics of the programme have warned that it will encourage the first child. The payment continues until the child reaches the age of 18. women to drop out of the workforce.

One particularly large family living near There have been some signs of this.

The Institute for Structural Research Oświęcim, in southern Poland, reportin Warsaw examines the impact edly received 6000 zł a month, with the 13 of the 15 children, ranging from Childcare benefit of the benefit in a working paper entitled a few months to 23 years old when “The ‘family 500 Plus’ child allowance According to the Ministry of Family, 500 Plus was introduced, qualifying for Labour and Social Policy, the Family 500 Plus and female labour supply in Poland”, published in March. It estimates that the benefit. programme is an untaxed 500 zł per month some 100,000 women were absent 500 Plus fits the PiS government’s for each second and subsequent child until 18 years of age. Low-income families will also broader emphasis on social solidarfrom the labour market in the first half receive support for the first or only child. of 2017 due to 500 Plus. The effect was ity. A new report entitled “Capitalism – Every family can apply for benefits including strongest among women with low levthe Polish way” published by the new legal guardians, single parents, and parents government-linked Polish Economic of adopted children. els of education and in medium-sized Institute argues that the Polish econtowns, it highlights. “Looking into omy has moved towards greater the future, it will be interesting to assess “solidarism” in recent years, with 500 Plus playing a sig- whether the effect strengthens further, as it did between nificant role. Poland now spends 2.5% of its GDP on family 2016, when the benefit was introduced, and 2017 or whether policy, putting it in 6th place in the EU and eighth among effects level off,” its authors write. The Institute’s findings the rich countries surveyed, the report notes. Another are supported by a simulation by the European Commission report by the Organisation for Economic Cooperation comparing the “inactivity trap” in different EU member states and Development (OECD) published earlier this year found – in other words, the financial incentives to move from inactivthat Poland is the only one of its 35 members where fami- ity and social assistance to employment.

In Poland, the figure is one of the highest in the EU. Since lies receive more in state handouts than they pay in tax.

For a single-income average-wage Polish family with two 500 Plus launched in 2016, it has risen sharply to double children, the net personal average tax rate is -4.8%, compared the EU average. The way that 500 Plus is allocated, this to an OECD average of 14%. In Poland, it has fallen by 5 per- makes sense. If a woman in a low-paying job quits work after

‘The Polish economy has moved towards greater ‘solidarism’ in recent years, with 500 Plus playing a significant role.’

85% of Poles consider family

to be the most important thing in their life and the main factor contributing to their happiness. (as of March 2018)

Be fruitful and multiply: 49% of

Poles want to have two children. 26% of them want to have at least three children. (as of March 2018)

having a child, her family’s income might fall enough to qualify it for the 500 zł for their first child, which is restricted to poor families. With nurseries often limited or expensive, this saves the family childcare costs, as well as other costs spent on going to work, such as work clothes, meals outside the home or money spent on commuting. In contrast, a well-earning woman would have much less of an incentive to quit her job, especially if she derives satisfaction from her work, beyond her monthly paycheck. While leaving the labour force might make sense to the first woman now, the longerterm implications are not so rosy. Once her children get older, she could struggle to return to work. After years of absence from the labour force, her pension is likely to be lower, too.

Politically, though, 500 Plus seems here to stay. Initially critical, the opposition has accepted it too, with Civic Platform, the largest opposition party, even suggesting that it should be offered from the first child onwards. PiS, too, has reassured Poles that it plans to keep 500 Plus, without introducing an upper income threshold above which families no longer qualify. According to the draft budget for 2019, the government plans to spend 21.2bn zł on the programme next year, up to 3bn less than in 2018, which it attributes to the improving economic situation, which means that fewer families qualify for the benefit for their first child.

Meanwhile, PiS plans to build on 500 Plus with further measures. In April, it announced a package of “Mama Plus” proposals prepared by the Council of Ministers’ Social Committee. One of the key provisions is a “bonus giving birth to a second child quickly”, potentially within 24 months of the first. Minister for Family, Labour and Social Policy Elżbieta Rafalska has suggested that this could take the form of additional paid leave for mothers. New mothers can currently choose between staying at home for six months after giving birth while receiving 100% of their salary, or for a year, receiving 80% of it. Other measures proposed by PiS as part of the “Mama Plus” package include a minimum pension for women who gave birth to at least four children, even if they were not employed, support for student mothers and free medicine for pregnant mothers.

As PiS prepares for parliamentary elections in 2019, it may add these policies to its repertoire. This would further entrench PiS’s image as the party that looks after families, even if it means encouraging a traditional arrangement in which women stay at home, while the father is the breadwinner. (This vision of the family also leaves little space for non-traditional families, such as single mothers or fathers, or gay parents.)

Time will tell what effect 500 Plus has on the Polish economy and society – and whether it leads to more births long term.

by Annabelle Chapman

photo: Flair Images

Long-term plan

66 Business

Boosting global growth of Polish tech startups Masters & Robots aims to empower visionaries to build the technological solutions of tomorrow in preparation of the Digital Transformation Era.

Poland Today is a media patron

of the Masters & Robots conference in Warsaw on 13-15 November 2018.

The Masters & Robots Conference,

Auleytner’s work involves representing entrepreneurs in cases of intellectual property and technology, while she also runs a consultancy project, DZP FUTURE, to encourage trans-national development of Polish entrepreneurial ideas. “DZP FUTURE is a space for co-operation between Polish and foreign investors and startups. Within DZP FUTURE we initiate and strengthen relations and connect innovative projects of Polish entrepreneurs with entities that are interested in technological and financial engagement in new undertakings.” DZP FUTURE exemplifies Auleytner’s belief that new Polish businesses are drawing on technological progress above all other sectors, advancing a growing reputation for global startup successes.

With the Masters & Robots Conference also encouraging development in this area, improvements in Polish technology are undeniable. “Startup activity in Poland is focused mainly on a broad understanding of the technology sector. Research shows that the greatest interest lies in information retrieval, advertising and online trading technologies. This is because activity in these technologies is suited to the digital realm – easily accessible and not requiring significant outlay at the initial phase. Practice shows that in Poland, most startups are focused on the B2B (Business to Business) model, as this is the area in which it is easier to sell solutions and find business partners.”

set to take place in Warsaw 13-15 November, promises a wide variety of panels and lectures to stimulate discussion on technological progress in the modern world.

The conference, which is in its second year, will host experts from over a dozen countries and is partnered with the Ministry of Investment and Economic Development. The event is organised

by Digital University, which provides education in the field of innovative technology, holding workshops for children and adults. Dr Aleksandra Auleytner, a Polish lawyer focusing on techno- Speakers from abroad logical development, who has been The conference will inspire cooperaworking closely with Jowita Michalska, tion between technological developpresident of the Digital University and ers in Poland and abroad, with a focus the Singularity University, shared her on adapting the business world by views on the importance of the con- bringing together individuals from ference. For her, the impact has the large and small companies. Last year’s potential to not only alter Polish devel- conference featured nearly 1000 paropment, but also global growth. “I am extremely interested in events organised by Singularity University, whether digital university in the USA or in Poland. In my view, they The education foundation supports the play a key role in popularising knowl- development of digital skills by organising edge about the effect of new technol- events, fostering the integration of future ogies on the modern economy. They leaders in innovation technologies and helping young people discover possible career paths are also very important for predicting in IT. The foundation works in cooperation future development trends connected with professors from the Warsaw School of with the development of new technol- Economics, SWPS University of Social Sciences ogies, particularly artificial intelligence and Humanities, Harvard Business School and Singularity University. and blockchain.”

ticipants and 29 speakers, with similar levels of involvement hoped for the coming event. “This year’s Polish edition of Masters & Robots includes around 30 foreign speakers from Silicon Valley in the US, The Netherlands, Switzerland, Israel and Singapore,” said Auleytner.

“They are elite expert scientists who have been working for years on a daily basis in the most dynamic technological centres around the world. I think that it will bring an interesting and important exchange of ideas with Polish entrepreneurs. It will also be a sort of continuation of the Global Summit in San Francisco, a meeting in August this year organised by Singularity University, which gathered together over a thousand entrepreneurs from all over the world in order to discuss the effect of new technologies on the global economy.”

For Auleytner, Polish startups are themselves a product of an increasingly international focus on technology, bolstered by state support and education. “It seems to me that the feature characteristic of startup activity in Central and Eastern Europe is that, to a great extent, it is supported, meaning financed, by the state or public sector entities. Polish startup creators are usually well-educated 30-somethings, often with doctorates, or having completed post-graduate courses, who know how to obtain EU funding and talk to investors. They have frequently studied or gained experience working abroad and now they want to bring this experience and knowledge home to Poland,” said Auleytner.

Yet, despite general progress, Auleytner drew attention to one central cause for concern in Polish technology: a lack of female involvement. Though 10 of the 29 speakers at last year’s conference were women, Auleytner agrees that the female demographic in Polish technology remains wanting. Her colleague, Jowita Michalska, was one of the panelists during a ‘Women in Tech: Coffee and Conversation’ event organised by the US Embassy in Poland in August 2017 to break down gender biases and encourage more women to develop technological skills, but Auleytner agrees that more needs to be done. “The number of startups founded by women is still low. Various studies have shown that it is fewer than a third of all startups in Poland. What is interesting is that this is despite a range of initiatives aimed at increasing the participation of women in business, especially IT.” The hope is that the conference will not only promote Polish startups and entrepreneurial developments to an international audience, but also support a more comprehensive interest in technology.

by Juliette Bretan

To insure or not to insure…?

illustration: Tim Arbaev

That is indeed the question.

Transaction insurance should be a last resort, not a first port of call, in real estate transactions argues Janusz Dzianachowski, Partner at Linklaters law firm.

Most of us

don’t realise how com- that in case the title holder loses the title plex legal work can be when it comes (either to the property or to the shares to purchasing commercial real estate. in the property-owning company), Lawyers spend long hours working the insurer would compensate the on due diligence, presenting issues loss. It is a guarantee quite general in to the client, drafting and negotiat- nature and will (or at least should) work ing contracts, obtaining consents regardless of the seller’s contractual and approvals – and we do many other liability. The W&I insurance works difthings of greater or lesser interest ferently, as it mirrors the seller’s liability and importance. When parties finally under the purchase contract. So in case reach an agreement and the transac- the seller is guaranteeing that certain tion is signed, the champagne corks warranties relating to the property are fly and everyone relaxes. But that does true, the W&I insurer assumes the sellnot mean the transaction is completed er’s liability in the same shape (again once for all. Sometimes discussions – legally W&I insurance is a third party guarantee contract and not a defined have to reopen.

As in every transaction, not only insurance policy).

These days, a fair amount of transacin real estate, there may be some postcompletion discussions, or even dis- tions are designed to be based on insurputes, between the parties. Most often, ance. The sellers want to have a quick the purchaser raises claims against and clean exit and not spend time the seller, stating that some contractual and money discussing the post-closing warranties were not true, or there were liability regime. This I can understand, other issues which popped up after and indeed such transactions are usuthe transaction closed. In the old days ally slightly faster as the lawyers do not the seller would have ensured that one spend time on warranties and liabilityof its parent entities would provide related provisions, knowing that “it will proper guarantees securing such claims. go under insurance anyway”. The lendIn recent years, however, the market has ers are also happy to see the title or W&I deviated from that and corporate guar- insurance instead of either seller’s antees have been successively replaced guarantee or the seller resolving issues. by transaction insurances such as title Transaction insurance has become insurance or warranties and indemnities an institutional grade transaction prodinsurance (W&I insurance). uct. But does it actually deserve to be?

But what exactly is transaction From my perspective as a transacinsurance and why would you need tion lawyer, I have a feeling that we to use it? In a nutshell, transaction sometimes give up important things too insurance is a contract between the quickly, with that notorious statement insurer and the purchaser under which “we are getting insurance anyway”, the insurer effectively takes over cer- in mind. People believe that everytain post-closing liabilities of the seller. thing can be insured and that whatever Such insurance allows the seller to exit risk is identified, they can just call the from the investment with a “clean” insurer and try to cover this with the account, with no residual risks, while title policy. But this should not (always) the purchaser believes it is protected be the case. In some instances, lawyers at least as well, as if the seller remained should not agree too quickly on insurpart of the deal. ance and should rather expect certain issues to be resolved by the seller A closer look before the transaction is completed.

In real estate transactions there are usu- And the seller needs to accept that. ally three different transaction insur- In the end, the client wants to buy real ance products: title insurance with estate that operates, and not real estate respect to the property, title insurance that has issues which can be insured. with respect to shares in the property- I don’t think anyone has heard about owning vehicle, and W&I insurance. a situation in which a transaction insurer In some cases there is only title insur- would have to pay out full compensaance, in other cases, it is a bit of both: tion. We need to remember that the real title and W&I insurance. Title insurance estate transaction is predominantly caris in fact an abstract guarantee stating ried out between two parties; the seller and the purchaser. Introducing a third party such as an insurer may of course be beneficial but should be a “last resort” rather than a “first call”. Otherwise, neither the seller nor the purchaser will feel fully responsible for the transaction and the risks which it may create.

‘A fair amount of transactions are designed to be based on insurance’

by Janusz Dzianachowski

67

real estate

Janusz Dzianachowski

is an attorney-atlaw (radca prawny) and a partner in the Warsaw Real Estate Practice of Linklaters, one of the world’s leading law firms and a member of the Magic Circle. Janusz has over 15 years of experience in advising international and domestic corporations, investors and developers on major real estate transactions in Poland and in the CEE region.

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real estate

Mindspace is a

photos: Mindspace

Partner of the Future of Warsaw film

Mindspace Koszyki: co-working catalyst A haven of home, work and community in the heart of Warsaw.

Co-working offices are increasingly common on the professional urban scene. In early 2018, the average share of flexible office space in Europe’s office stock reached 7.5%, almost three times higher than in 2016. Warsaw alone is now home to over 100 co-working locations, with Mindspace being one of the first and biggest. This summer, Poland Today dove straight to the core of the Warsaw office and talked to its Senior Community Manager.

Michał Kwinta didn’t know what to expect when he first arrived at Mindspace. Fresh out of law school, he had taken a sharp change in career paths when he decided not to become a lawyer. Mindspace was still a young company, just three years old at the time, and the location in Warsaw was still under construction — two weeks away from its grand opening. At first, Kwinta found himself surrounded by builders, designers, vintage furni-

ture, tools, and paintbrushes. He was amazed by the workers’ ability to finish the project on time and bring radiant life to a previously dull building. He fell in love with Mindspace instantaneously.

“It was the busiest two weeks I’ve ever had in my life,” he recalled. “The team was very focused on the opening. They gave us amazing vibes, and we knew that we were doing something outstanding and unique because it was the first location in Poland.” Mindspace

was a growing company with eight locations worldwide when Kwinta joined the Warsaw branch in 2017. Since then, expansion has continued at an impressive rate — the business now boasts 27 locations worldwide.

Mindspace’s global philosophy

Mindspace locations. Mindspace’s “A place where you like to be, and where Warsaw branch has hosted a great you want to be. You feel more like deal of successful events, from “Yoga you are at home.” Often, people prefer for work-life balance,” an in-office yoga to sit in the social lobby and interact workshop for stress relief, to “Kawka with other members, which gives them o eCommerce,” an event created for a chance to blend networking and probrainstorming eBusiness and global ductivity all in one place. Having previbusiness ideas. To encourage a sense ously worked in sales and accounting of international collaboration, English for airlines and hotels, Kwinta explained, language is another important element “I’m treating this space as a 5-star hotel, of the Mindspace community. “Most and every office is a different part people speak English; that’s why we of the hotel, and everything has to be print our event posters in English,” of the highest possible level... and it is.”

Kwinta explained.

Mindspace is known for its “co-working space.” Its website advertises it as “gathering a myriad of startups, freelancers, and businesses of all sizes under one roof in a shared environment, Collaborations and which promotes creativity, the crea“fortunate introductions” tion of a community, and the sharing An “at home” vibe of ideas.” It offers a variety of mem- “This is the future,” Kwinta said confi- Mindspace’s co-working design allows bership plans and office sizes tailored dently. At Mindspace, you don’t have its members to work in unusual busito meet the unique needs of every to sign an agreement for a five-year ness settings. As a freelancer, you business from one-man startups lease; you can rent the office for one could work next to the head of a global to large corporations. Members also month and be more flexible with your company and learn new skills on receive access to all Mindspace loca- plans. It is a unique space outside the a daily basis. “You can meet people tions around the world if traveling for corporate world — in Kwinta’s words, from completely different environbusiness. The attitude of “collaboration” ments, completely different companies, is written not only into the company’s or completely different worlds,” said mission statement, but also in its aesKwinta. The Mindspace Warsaw branch thetics. Upon entry, one is immediately displays a huge diversity of companies, greeted by a modern lobby clothed in from small agencies like Deaf Respect, hipster street art murals and textured a company that works to promote greater surroundings — in other words, the awareness and respect for deaf individutrendiest coffee shop in town. Floors als, to international government agenof offices stack together like layers, cies like the British Embassy Warsaw’s but no two layers are the same. Each Department for International Trade. level glows with different colours, difThe future ferent furniture, different artwork. One of Mindspace level houses the communal coffee bar, where a barista makes free drinks upon British Embassy Warsaw’s Kwinta predicts that the future of Mindspace will see a growth in marrequest for all Mindspace members. Department for International Trade: an international government branch in MindThe offices themselves range in size — ket and international reach. However, space. Russell Towlson, Joanna Czeczelewska, there are solitary desks for single-per- Kaja Szczygieł, Magdalena Matykiewiczhe doesn’t believe that everything son operations, and businesses with make up the British Embassy Warsaw’s Depart- will change. “We’re still going to have 2-11 employees receive enclosed spaces ment for International Trade in Mindspace. the same vibe as it is right now,” Their division is a part of the British governwith glass walls. Special accomodations he said. “That vibe is family atmosment set up to help British companies export can be made for offices with up to 100 goods and services to Poland. The department phere and creativity.” Mindspace mememployees. A few sections of glass are works with diverse companies across various ber and founder of Deaf Respect, Aga frosted for privacy, but a great deal sectors, from small electronics to heating and Osytek, agrees. “When I got here for the ventilation to agriculture. “They won’t all go of wallspace is purely transparent, addfirst time, I was amazed by this space, into export, but our job is to help as many because I knew other co-working areas ing a distinct element of “co-working” of them as we can,” said Towlson. Towlson to the collaborative atmosphere. For is optimistic about his team’s progress under in Warsaw which were cool, but this quieter interactions, there are sound- the Mindspace co-working canopy. “How place... I just felt it — good energy that successful have we been since we started comes not only from the way this place resistant cubicles (often called “teleworking here? So far, I think pretty successful. phone booths” for people who wish to It’s also, have we been successful while workis designed, but from people. I could make private phone calls) and confer- ing in this space and I think we have.” feel those vibes from them as well.” ence rooms open to all members. Each Regarding Mindspace, Russell Deaf Respect: a small agency thriving in Towlson from the British Embassy floor also offers comfortable social Mindspace. Deaf Respect is a research and marareas — lounge sofas or armchairs keting agency that collaborates with companies Warsaw’s Department for International encircling sleek, polished coffee tables to build social awareness of deaf people, a social Trade, shares Osytek’s positive opinion and linguistic minority. “The deaf are amazing — “we love the design, the atmosphere atop beautifully patterned rugs. people who are not understood. Their perspecis quite relaxed, it’s comfortable, it’s tive is not considered very often,” said Aga The flexibility conducive to creative thinking. We’ve Osytek, founder of Deaf Respect. Her agency of Mindspace also collaborates with companies that want held an event downstairs already, In addition to providing office spaces, to adjust their customer service programmes and we don’t normally do events. It’s to accommodate deaf people. “People say the Mindspace also hosts events. Its social certainly made us think a little bit outdeaf are disabled,” Aga explained, “although spaces and meeting rooms provide a I don’t like this expression; I prefer ‘differentside-the-box in terms of what we were convenient atmosphere for business abled’.” Most deaf people don’t consider themdoing before. Just having people around meetings, networking events, invita- selves as disabled, but as a cultural and linguisand seeing what people are doing gives tic minority, or foreigners in their own country. tional gatherings, and celebrations. you ideas.” The chill atmosphere, mixed Mindspace even offers a special “event” with urban decor and comfortable furnimembership for individuals who don’t ture makes Mindspace the perfect place need an office but still wish to take to work and meet like-minded people. part in community events across all

by Taylor Chin

‘Mindspace’s design allows its members to work in unusual business settings’

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real estate

Mindspace membership

includes 24/7 office access at any location worldwide, fast and secure internet, event space, phone booths, coffee bar, networking events and fully furnished spaces including a kitchen and lounge area.

Cities with Mindspace locations worldwide: London,

Munich, San Francisco, Washington DC, Berlin, Hamburg, Tel Aviv, Warsaw, Frankfurt, Amsterdam, Utrecht, Bucharest and more.

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real estate

Every building has its story As gleaming towers emerge on Warsaw’s skyline, Agnieszka Krzekotowska, Director of Real Estate Management Services, Colliers International, advocates renovating and restoring pre-war structures to their former glory.

Agnieszka Krzekotowska,

is the Director of Real Estate Management Services at Colliers International.

Agnieszka joined Colliers International in 2009 and has over 12 years of experience in the commercial real estate market. She is also a member of RICS.

Colliers International is a Partner

of the Future of Warsaw film

What do you enjoy about managing renovated buildings in contrast to managing new buildings?

Managing historic buildings is a fascinating adventure. Each building has its own history and unique character. While managing such a property often requires greater commitment, it is amply rewarded by the satisfaction of dealing with a unique building with a “soul”, by the unmatched class and prestige, and by the opportunity to create a special ambience in the office space.

What are the challenges of managing renovated buildings?

photos: Colliers International

A historic building has a certain structure, which determines the spatial arrangement to some degree, and sometimes the architect's vision must be adapted to the requirements of the property. This challenge must also

be faced by the property manager.

As far as maintenance is concerned, repair or renovation of a given element often requires the services of a qualified contractor, specialising in such work.

We have to reconcile modern technology with the historical character of the building and look for solutions tailored to the character of this unique place, as well as to the needs of the tenants.

to Franciszek Brauman's design. They belong to a very small group of buildings in the former Jewish quarter that have survived. They miraculously escaped demolition after the war but remained vacant for years. Though added to the list of historic monuments in the mid1980s, they gradually fell into disrepair.

Today they are used as a unique office building, attracting tenants who look for classy premises. Le Palais blends Are there any significant differharmoniously with modern architecture ences for tenants between renoof the 21st century and meets all the vated buildings and new buildings? requirements of the tenants of modIn most cases, historic buildings are ern office space while remaining one in no way inferior to modern office of the architectural jewels of Warsaw. buildings. Systems and new technoloThe luxurious interiors of Le Palais gies – though they may not be immedi- retain old brick walls; door handles ately apparent – are equally advanced have been ornamented with a merand provide the same amenities maid motif, reconstructed on the basis and convenience. However, there of the discovered original. The offices are some aspects unique to historic look sumptuous with their decorative buildings. For example, any signifi- ceilings and frescoes, wooden wincant changes need to be consulted dows, mosaic parquet and stone balwith the conservator. Local conditions conies. Wiring and other installations or features of the construction may also are hidden under the floors, so as not impose special requirements, for exam- to spoil the unique interior decoration. ple, fire protection measures. There are The architects have managed to prealso restrictions on signage, so that ten- serve the original bright, ornate ants must agree to forego their original facades, constructed to Franciszek logo in favour of uniform monochrome Brauman's 19th century design, and signage approved by the conservator. to recreate many details, such as stuccoes and bas-reliefs.

Another interesting example of a sucWhat are the distinguishing elements of some of the cessful fusion of history with moderprojects and their history? nity is the property in 10 Miodowa Próżna Street, with the restored 19th Street. The street connects Krakowskie century Le Palais tenement house (cur- Przedmieście with Plac Krasińskich, cirrently an office building), is one of the cling the Old Town. Many important most attractive sites in Warsaw that Warsaw palaces are located there. One have been restored to their pre-war of these is the Młodziejowski Palace, splendour. The buildings along Próżna erected at the end of the 17th century.

Street, which begins at Grzybowski The damage it suffered during WWII Square and is 160 metres long, survived is estimated at 85 percent. It was decided the war. Le Palais is a unique and exqui- that its 18th century form would be reconsite investment, which delights with its structed. After renovation, the Palace has classical style, beautiful architecture, housed many prestigious organisations. attractive location and rich history.

It is a great illustration of what revitali- Why do you think it is important sation can do for two 19th-century neo- for Warsaw to renovate buildings Renaissance tenement houses, adapted and not only build new ones? to modern market standards. Thanks The capital of Poland is a regional to the efforts of the architects to ensure leader in the CEE, and one of the best that Le Palais becomes a showcase locations for business. Old architecture of the historic part of Warsaw, the and modernity are closely intertwined classical soul of the buildings has not in this city. Massive destruction during been lost. The Le Palais office build- WWII shaped its present appearance and ing consists of two reconstructed ten- layout. It is estimated that over 85% of the ement houses, erected in 1895-1898 historic centre of Warsaw was destroyed.

Some parts of the city were almost completely razed to the ground. Clearly, recent years have seen dynamic growth, with many high-rise buildings going up in the centre as a symbol of the city's aspirations. However, it is important that the capital grows in a sustainable manner, and that space for pre-war architecture is preserved because such places remind us of the city's history and, above all, create its unforgettable atmosphere.

‘Old architecture and modernity are closely intertwined in Warsaw’

interview by Richard Stephens

71 Poland Today in association with the City of Warsaw presents a video production

the future of warsaw

See how new and planned developments are transforming Poland’s capital city from October 2018 at poland-today.pl

72 history

Eyewitness: Memories spanning over a century Poland Today profiles two of the country’s oldest living citizens.

photos: Klaudia Piłat and Józef Woźniak's family collections

‘At 106 years old, Klaudia and Jozef have experienced two World Wars’

As the 100th anniversary of Poland

Surrounded by generations of fam-

ily members, Klaudia Piłat celebrated her 106th birthday this year.

Above: For 37 years after WWII, Józef Woźniak was the mayor of Wola Buczkowska. Pictured is a portrait of him and his wife.

regaining its independence approaches in November, photos from that time are becoming an increasingly familiar sight in media. The grainy images depicting men wearing high-plumed military hats and sporting walrus moustaches seem to belong to a different era.

Yet for Józek Woźniak and Klaudia Piłat, both 106 years old, this landmark event took place in living memory.

When Marshall Józef Piłsudski declared that Poland was free from the imperial rule of its Austrian, German and Russian neighbours, they were little children, . Little did they know that they would be witness to more turbulence than could be expected in several lifetimes. Most Europeans, thankfully, take safety, comfort and national identity for granted. But Klaudia and Józef have experienced two World Wars, a resetting of national borders, almost half

a century of communism, and finally freedom. Józef Woźniak was born on 11 November 1911 in the village of Wola Buczkowska outside of Łódź. Now this is of course Independence Day but back then such a day did not exist, as this part of Poland was under the control of the seemingly all-powerful Russian Empire. When he was a young man he was taken captive by the Germans in 1939, and spent the rest of the war in Germany. After returning to Poland he was mayor of Wola Buczkowska for 37 years, and during that time was active in the Voluntary Fire Brigade as well. He remembers that people paid contributions for the reconstruction of Warsaw – for the Palace of Culture & Science, for the building of the national stadium and for schools. Like many elderly people, he feels that people were more neighbourly during the communist period. Now, he believes, people are more inward-looking, more out for themselves.

Klaudia Piłat was born less than two months later than Józef, on January 3, 1912, in Utica, New York, to parents Józef and Marianna Pawlik who had traveled by ship from Hamburg to Ellis Island in 1909. They returned to Poland In 1914, unwittingly right before WWI. With the money they saved in the United States, they bought land near Sandomierz, but unfortunately the war wiped out their savings. Now Klaudia lives in Szczecin near her daughter, granddaughter, great granddaughter and great-great granddaughter – as well as her two great grandsons. Although her physical health has deteriorated, she still sings and recites prayers and texts from her youth. She also likes numeric exercises, so her eight-year old great-greatgranddaughter Patrycja gives her math exercises, which she solves in her head.

by Klaudia Syczek

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74

Love in a Cold War climate

culture

Polish film by internationally acclaimed director depicts a couple defying the odds in a world of conflict.

Cold War, the latest film by acclaimed

on the cusp of tensions between the Polish director Paweł Pawlikowski, is a personal and the general, tiptoetale of love, in a landscape where love ing around a love affair between two cannot prevail. The film was a Polish- individuals, Wiktor and Zula, who are French-British co-production, financed from differing backgrounds and temby the Polish Film Institute, Film4, British peraments. Behind their own feelings, Film Institute, CNC, ARTE France, Canal however, is the far greater impossibility + Poland and the Eurimages fund, with of the European political situation. a total budget of 22m zł. Filming took The picture’s quasi-discordant place in Łódź to provide a Parisian soundtrack of Polish folk music coupled landscape, including in the back of the with jazz and traditional Parisian songs Grand Hotel, the Grand Theatre and Sports Hall. Wrocław, which doubled up as Berlin, also hosted the team, as Paweł Pawlikowski well as Warsaw and Croatia.

The Warsaw native moved to Great Britain at the age of 14 with his mother where he went Cinematic success on to study literature and philosophy at Oxford On the second weekend after the University and later pursued a career in filmmaking. In the 1990s, he garnered acclaim release – onto 291 screens – the film was for a number of award-winning documentaries watched by 63,500 viewers, assigning and films including Last Resort and My Sumit to second place in the Polish box mer of Love, both of which won a BAFTA. office. The film is set to be released In 2015, his film Ida won the Academy Award for Best Foreign Language Film. in the US two weeks before Academy Awards nominations are announced and the rights to the film have already been purchased by Amazon Studios.

Pawlikowski achieved international renown with an Oscar-win for his chilling Ida, and Cold War certainly promises the same resonant exploration into stifling contention: the film was nominated for the Palme d’Or at Cannes, where it won Best Director.

With a backdrop of the Cold War in the 1950s and 1960s, the film exists

Juliette Bretan

photo of Paweł Pawlikowski: Stephane Mahe (Reuters)

studies English Literature at the University of Cambridge and also works as a freelance journalist, specialising in Polish current affairs and culture.

mimics their own inharmonious journey in love, which is portrayed in a fractured manner from the moment Wiktor meets Zula. The film operates with silence rather than clichés of heartbreak or passion, opening up tensions between the couple’s romance and their careers and Pawlikowski leaves much to the imagination.

The director used his parents as the models for the couple, even going as far as naming the characters after them. Theirs is a unanimous view of love in a world of conflict, and of existence in a totalitarian climate.

As time passes over a period of nearly 20 years, both characters are torn apart by circumstance, and face increasing hardship alongside professional success.

Sapped of energy and vibrancy, the film’s message is simple: above everything, it is only the couple which remain.

by Juliette Bretan

‘Cold War is a tale of love, in a landscape where love cannot prevail’

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76 culture

The Vodka Legacy While the apparent facts of Polish Vodka are well-known, the history and heritage they represent are less so. Warsaw’s Polish Vodka Museum is changing that.

Warsaw’s

Polish Vodka Museum, which opened earlier this year, is a testament to the rich, potent legacy of the Polish beverage which has taken the world by storm. Housed across five floors of the old Warsaw Vodka Factory ‘Koneser’ distillation plant, the museum oozes history: within its neo-Gothic facades, where the flagship brand of Polish vodka – Wyborowa – used to be refined, the building now transports visitors to those very production lines, introducing an untold story of vodka little known beyond the factory floor.

The first steps towards the creation of this museum were made as early as 2004 when representatives from the Polish spirits industry were invited to Edinburgh by the Scotch Whisky Association. Inspiration from a palpable Scottish pride in whisky history, promoted by the Scotch Whisky Heritage Centre, prompted the idea to establish a Polish variant. By 2006, when a new Polish law (amended in 2013) officialised geographical vodka identification, interest grew even further.

The decision was quickly made to establish the museum in the 'Koneser’ plant, a choice based on the worldrenowned vodka which once emerged from its doors, says Andrzej Szumowski, Spokesperson and the Director of External Affairs for Wyborowa Pernod Ricard, and President of the Board of the Polish Vodka Association since its founding in 2006. The factory was revitalised with the help of 2.5m zł (€585,000) from the European Union and includes elements of the old factory’s design, such as old vodka barrels, alongside modern exhibits. “We felt that we owe to generations of Polish distillers and to the Polish vodka tradition that we should build the museum.

And the owners of the Koneser vodka distillery, established during the time of the Tsar, felt it was the perfect place to create the Polish Vodka Museum,” he added.

photos: Polish VOdka Museum

National treasure

“Polish Vodka”

must be made solely from traditional grains of rye, wheat, barley, oats and triticale, or potatoes, which must be grown in Poland, (a hybrid of wheat and rye) and the production process must take place in Poland.

Szumowski has been an ambassador of Polish vodka on the international stage for 15 years, supporting efforts to raise awareness of its lucrative market. The museum follows a lengthy list of his collaborative projects, facilitated by Wyborowa’s own renown: “Wyborowa is the queen of Polish vodkas, the most recognised brand in the world. For example, Mr Wally Olins (British practitioner of corporate branding) was preparing a project looking at how to promote Poland internationally. He said Poland is well known for the three W’s: Wojtyła (Pope John Paul II), Wałęsa and Wyborowa. He said that Wyborowa is the only Polish brand recognised as such globally.” Yet, in Szumowski’s own words, it is Polish vodka in gen-

eral which has saturated “every square inch of ground” on which the museum lies. Its mission is to educate visitors on the definition of Polish vodka and all elements of the Polish vodka industry, explaining the differences between varying types of vodka and their origins, all across a 500-year history.

It differentiates between Polish rye, wheat and potato vodka, with exhibitions on the process of vodka creation, even down to the precise amounts of alcohol produced by different grains, as well as giving a glimpse into the vodka produced over different centuries.

It also reveals that only 5-10% of vodka production in Poland are Polish vodkas, exploring the often-contentious national influences over the product.

Szumowski himself is fiercely defensive regarding Poland’s role in the vodka industry: “I have bad news for our Russian colleagues – the cradle of vodka is Mother Poland. If we go back to the 16th century, all the good things that happened in Russia were because of imports from the West, and Poland has always been west of Moscow. The first modern vodka distillation factory was built in Lviv, today in Ukraine but back then in Poland in 1782.

In Polish tradition, vodka has existed forever – almost forever.”

However, visitors, accompanied by a guide on tours which start every 20 minutes, will also see international takes on the Polish tradition, hearing legendary quotes from Napoleon regarding drinking like Polish men and exploring the Wyborowa bottle design by American architect Frank Gehry.

Na zdrowie (cheers!)

At the end of the tour, there is also an option to taste different vodkas, with visitors given a half-shot of three varieties. Staff suggest novel methods of ingesting the vodka too – instead of gulping, the recommendation is to swill the vodka around one’s mouths like tasting wine, to pick up the flavours.

Storing vodka at room temperature, instead of ice cold, is also encouraged.

Aside from the pleasure of testing different Polish vodkas, the museum’s role is an important one in a Poland rapidly gaining international acclaim.

Featuring interactive exhibits, a wide variety of historical artefacts and countless titbits of information, the museum will eventually belong to a larger complex in the area, complete with bars, hotels, shops and offices. But it is vodka that remains the foundation for all, as Szumowski explains: “For Poland vodka means heritage, tradition and history.

It’s a part of Polish DNA. It’s a part of our culture. We feel very proud and responsible for the history and heritage of Polish vodka, today and in the future.”

by Juliette Bretan

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Poland Today aT MIPIM 2018

Warsaw’s future projects shine bright in Cannes

Left: Poland Today's

photos: MiPiM

programme at MIPIM started off with the 'Faces of Emerging Europe' panel discussion.

MIPIM is a fourday international real estate exhibition, conference and networking event hosted in Cannes, France every March, that attracts 24,000 international property professionals.

Poland Today premiered its first film at the MIPIM 2018 real estate fair. The movie was the centrepiece of an ambitious and varied programme which consisted of four panel discussions, a cocktail party and a rooftop lunch.

You would be forgiven for thinking that you had stumbled into the glamourous Cannes Film Festival rather than the 29th edition of the world’s leading property event if you entered the ‘Ruby Room’ on the 5th floor of the Palais de Festivales on Wednesday 14th March. For up on the big screen was a film. The film in question was ‘The Future of Warsaw’. But rather than Hollywood actors and actresses, upcoming real estate schemes in Poland’s capital city were the stars.

improve its standards and provide a good quality of life to encourage Poles to return.

However, the difference in salaries is the key factor driving people to western cities. Ukrainian immigrants make up a significant portion of the workforce in Poland, stated Jaśkowiak, to which Klitschko responded by saying this is also a huge challenge for Ukraine and in order to encourage people to return to their homeland, there need to be well-paid jobs.

As for Romania, the country has experienced fast growth, said Olga Melihov, Country Head at BNP Paribas Real Estate Romania, which is helping to make an impact on salaries and bringing talented people to its cities. E-commerce in particular has seen a great need and demand for space and told the audience that interFaces of Emerging Europe national names are building B2C projects The film was the culmination of Poland as well. Another challenge, Brexit, may Today’s programme in Cannes, but it was actually be a mistake that creates opporkicked off by its first panel, ‘Faces of tunities for competitors if smart politiEmerging Europe’, moderated by Andrew cal decisions are made, claimed Robert Wrobel, Head of Content Strategy and Dobrzycki, CEO of Panattoni Europe.

Publishing at Emerging Europe think tank, Partnerships with other corners of the which tackled the tough question: ‘What world also present an “opportunity and are the CEE region’s biggest challenges?’ risk, but the One Belt One Road initiaStepping up was former heavyweight box- tive is a chance for Poland, as well as for ing world champion and current Mayor Ukraine, to cooperate with China.” of Kiev, Vitali Klitschko, who admitted that his country struggles with corrup- Poland as Transformation Nation tion, but promised any investor willing There has been a transformation in Poland to invest in Ukraine that he will act as and investors still feel good about the a personal bodyguard. country, stated Courtney Fingar, Editor For Poland, one of the biggest problems in Chief of fDi Magazine and moderais preventing educated people from leav- tor, as she began the panel discussion ing the country, said the Mayor of Poznań, which focused on the future of the Polish Jacek Jaśkowiak, so the country must economy. Undersecretary of State in the

Above: Tomasz Trzósło, Managing Director, JLL Poland, spoke on the panel ‘ How Proptech and Digital Transformation can Dramatically Build your Company’s Competitive Edge.’

Ministry of Enterprise and Technology, Tadeusz Kościński, started by saying that Poland is actually moving from transformation into revolution. To give perspective on what’s happening, he provided a brief history of the restructuring of Poland after regaining independence: creating jobs and increasing reliance on foreign capital. Presently the government is currently making it easier to start a company in Poland and encourage foreign and domestic investors to invest in all corners of the country, not just in the bigger western ones.

Tomasz Rudolf, co-founder and CEO of The Heart, a European centre for corporate-startup collaboration in Warsaw, said that it’s a slow process, but Poles are starting to build multinational companies.

“On the startup side, the ecosystem is waking up,” he said, and is building innovation for the whole world. He admitted, however, that Poland lacks the ability to present ideas as good business models and needs to improve its storytelling.

To invite visitors, inhabitants and investors, Łódź had to develop a story on why it’s attractive, said Adam Pustelnik, Director of Investor Service and International Cooperation Bureau at the City of Łódź. The market developed a trust in revitalisation so the city built a monumental ecological business district and a number of revitalised projects that preserve the city’s industrial history.

From an American perspective, what attracted Otis Spencer, President of Peakside Polonia Management, to Poland was its energy, and he and his

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Left: Proptech panel

included Tomasz Trzósło, Managing Director, Poland JLL; Sascha M. Donner, Co-founder, EVANA; Erik Fossum Faerevaag, CEO, Disruptive Technologies; Aaron Block, Cofounder & Managing Director, Metaprop NYC; Bartosz Dobrowolski, Founder, Proptech Poland; and moderator Julia Arlt, Innovation Real Estate Director, PwC Europe and StartUp Mentor, MetaProp NYC.

Left: Robert

Dobrzycki, CEO Europe, Panattoni Europe

Above: Vitali Klitschko, Mayor of Kiev and

former heavy-weight champion of the world.

Right: Andrew Wrobel, Head of Content Strategy and Publishing, Emerging Europe

Above: Jacek Jaśkowiak, Mayor of Poznań Left: Tadeusz

Kościński, Undersecretary of State, Ministry of Enterprise & Technology

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Poland Today aT MIPIM 2018

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Poland Today's

programme at MIPIM consisted of four panel discussion sessions, a cocktail party, a lunch and the premiere of the film created together with the City of Warsaw.

The film ‘Future of Warsaw’ had

its world premiere at MIPIM.

family decided to move to Poland instead of London because of the quality of life.

He admitted, however, that Poland still has a problem with infrastructure and the lack of human capital is a rising concern. He added that the country needs to do a better job of attracting people from around Europe and provide support and consistent policies.

Although Poland has supported the Polish diaspora worldwide, Minister Kościński said that more should be done to connect businesses operating abroad.

He appreciates people who left 20 years ago and have found success elsewhere and doesn’t expect those Poles to come back, but they invest in their talented children, so he’d like to see the next generation return to Poland where the cost of living is lower and the quality of life can be better than in more developed countries.

Proptech creates buzz, but does it solve problems?

Five years ago, ‘proptech’ was not discussed at any MIPIM panel but this year the industry game-changer managed to pack a room even during lunch time on a perfect Cannes day. The key takeaway of the session was that integration between management systems and devices is crucial, startup companies should focus on creating solutions to real problems and proptech is a part of the technology revolution. Moderated by Julia Arlt, Innovation Real Estate Director at PwC Europe and StartUp Mentor at MetaProp NYC, the panelists were asked what proptech means to them and what it means for the real estate industry.

Tomasz Trzósło, Managing Director at JLL Poland, said there are various technologies available that make businesses more profitable and productive, but these systems usually do not work together.

The biggest milestone will be when these technologies will be integrated into one to allow for easier management of multiple buildings. In response to Trzósło, Erik Fossum Faerevaag, CEO of Disruptive Technologies, said building managers have different products which require dashboards, hardware and drivers, but they are beginning to use virtual value chains which can allow for integration in the future.

The reason for the lack of integration currently, Bartosz Dobrowolski, Founder of Proptech Poland explained, is because manufacturers of these systems protect their application programming interfaces (APIs) – just as banks did before the fintech boom. Proptech startups should be wary, however, of creating technologies that solve no problem, partially because companies don’t communicate what those problems are, claimed Dobrowolski. In order to understand the real estate industry, the German company

EVANA creates digital data models based said the location is surrounded by proon artificial intelligence and algorithms. tected heritage buildings so developing Its co- founder, Sascha M. Donner, stated around them was challenging, but they that proptechs are moving fast and have designed a unique project that creates provided new ideas for the industry over an intimate yet public space. the last few years but there needs to be Marcin Mostafa, Chairman of a holistic and integrated approach to tech- the Board at the architectural firm WWAA, said, “The quality of architecture nology in the industry.

Investors are looking at proptech has an impact on the quality of life of the from different perspectives, said Aaron inhabitants in the city. It’s about the relaBlock, co-founder and managing director tion between the space’s function and at MetaProp in New York City. They look the users of these spaces.” He added that at the cultural evolution of companies, Soho Factory in Praga is a space for creavendors and clients and need to be ahead tive businesses such as WWAA and conof the game because they’re afraid of tains gastronomy and residential spaces “functional obsolescence”. Entrepreneurs that embody the ‘Work, Live, Be’ motto.

Another important part of city life invest when it’s good to buy low and sell high, he claimed, so “if you believe that are the markets and bazaars, accordthis industry is going in the same direc- ing to Aleksandra Wasilkowska, founder tion that financial services went, it’s a very of Pracownia Architektoniczna good time to be investing in proptech.”

Aleksandra Wasilkowska, who said that they are like magnets for attracting resRevitalisation is key idents to schemes. One such bazaar at Warsaw discussion is the oldest and most famous outdoor The final panel was hosted by the City marketplace in Warsaw, Różycki Bazaar of Warsaw and moderated by Richard in Praga-Północ, which is marked for Stephens, founder and editor of Poland modernisation. Multiple mixed-use facilToday magazine, Marlena Happach, ities, world-class skyscrapers and outDirector of the Architecture and Spatial door meeting places are planned to break Planning Development, said that in order ground in the next few years, which supto utilise the city’s full potential, the strat- ports Happach’s notion that the “city egy will be to revitalise existing build- is living and changing all the time.” ings as was done with Hala Koszyki and The panel was followed by the famous Hala Gwardii, for example, but also to City of Warsaw cocktail party at their concentrate on the other side of the river stand, a tradition which – somehow – in the Praga district. She said that before attracts more people every year, filling the Koneser and Soho Factory projects, the Poland area to bursting point. Long they were forgotten spots until architects may it continue. recreated them as unique destinations.

Even the untouched area surrounding the Palace of Culture and Science will see new developments – with the upcoming Museum of Modern Art on Plac Defilad to be surrounded by accessible public space.

A highly anticipated cultural project, the Sinfonia Varsovia concert hall, will also be located in the Praga district and its creator, Thomas Pucher, founder of Atelier Thomas Pucher,

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Right: Richard Stephens, Founder & Editor-in-Chief of Poland Today Below: ‘Transformation Nation: The Future of the Polish Economy’ panel

Above: Thomas

Pucher, Founder, Atelier Thomas Pucher

Left: Courtney Fingar, Editor-in-chief, fDi Magazine moderated the panel ‘Transformation Nation’

photos: MiPiM

Left: Architects discussed upcoming projects during the panel: ‘Warsaw, the Largest Metropolis in CEE - New Areas for Development’.

Below: Adam

Pustelnik, Director of Investor Service and International Cooperation Bureau, City of Łódź was a speaker on the panel ‘Transformation Nation: The Future of the Polish Economy.’

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The best of the CEE region on London’s global stage

photos: Sabrina Bouchaala

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EMErgIng EuroPE awards 2018 In london

The next edition of the Emerging Europe Awards

will once again be in London in June 2019.

For more information please go to www. awards.emergingeurope.com

The inaugural edition of the Emerging Europe Awards, co-organised by Emerging Europe & Poland Today, took place at the European Bank for Reconstruction and Development (EBRD) Headquarters in London. The results took even the organisers by surprise. “It was a fantastic success, massively exceeding even our highest expectations,” said Richard Stephens, Poland Today’s founder and editor, and director and co-founder of the event.

“This was the very first edition of the Awards and we were blown away by the reach and engagement that the programme attracted,” said Emiliano Ramos, founding partner of Emerging Europe.

“Over the course of three days, posts with the hashtag #EEAwards were seen over 3 million times on Twitter alone. As far as we’ve been able to track, over 80 websites and media vehicles from more than a dozen countries have written about the Awards, including Gazeta Wyborcza in Poland, Delfi in the Baltics, Georgia Today, and Belarus’ leading portal, tut.by,” he said.

Business leaders, heads of Investment Promotion Agencies (IPAs), senior city and regional authorities, ambassadors, embassy officials, entrepreneurs and social movements from across the Emerging Europe region and Western Europe gathered in the UK capital to debate key issues and recognise excellence in the region. The event was also an opportunity to emphasise and advance Emerging Europe’s core aim of bringing the countries of emerging Europe closer together, especially on the global stage.

Right: Peter Stracar,

President & CEO of GE Europe and Olga Grygier-Siddons, CEO of PwC Central & Eastern Europe participated in the business leaders fireside chat led by CNN news anchor Samuel Burke.

Right below:

Andrew Wrobel, Founding Partner & Head of Content Strategy & Publishing, welcomed nominees, partners, and government officials to the House of Commons in the Palace of Westminster.

“The region can better leverage its strength – and is a more attractive proposition to international investors and businesses – if it projects a united front and coordinates internally,” said Andrew Wrobel, founding partner and head of content strategy and publishing at Emerging Europe.

Of the 10 awards categories, two were won by Polish nominees. The City of Wrocław won the FDI Strategy of the Year Award and Solaris won the Global Market Champion of the Year Award. “Poland was well represented, although it didn’t dominate,” said Stephens. “I believe that Poland needs to be engaged in the CEE region, which is why Poland Today helped to start the event and will continue to co-organise it. The country needs to be an active regional leader.”

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Left: Richard Stephens, Editor of Poland Today and Director of Emerging Europe Awards, led the awards ceremony.

Below: IPA heads and other business leaders from across the region added their voices to the ‘Destination Investment’ breakout session.

The City of Wrocław, Winner of City FDI Strategy of the Year.

The list of companies which have settled in Wrocław over the last few years is a living testament to the effectiveness of the city’s investment attractiveness. They include the following blue-chip firms: Volvo, Toyota, BASF and Mercedes-Benz in automotive, LG, Whirlpool, and Electrolux in whitegoods, UTC Aerospace systems, Bombardier, and Balluf in mechanical engineering and automation, 3M, USP, and PPG in chemicals and pharmaceuticals and a strong service sector to boot (BPO, SSC, IT) which includes companies such as Nokia, McKinsey, Capgemini, BNY Mellon, Google, HPE, Credit Suisse and IBM, to name but a few.

“Today, with many advanced technologies, sophisticated operations and new processes being carried out in Wrocław, the focus has moved to attracting talent,” said Karolina Grzyb, director at ARAW, the Wrocław Agglomeration Development Agency. “We hope that winning the Emerging Europe Awards will make Wrocław even more popular among experienced professionals and lure talent to actually come and live here.”

(Source: Emerging Europe)

Below: Günter Verheugen former European Commissioner for Enlargement (centre) was the recipient of the first Emerging Europe Lifetime Achievement Award.

Solaris Bus and Coach, Winner of the Global Market Champion of the Year Award The Polish bus manufacturing company has had a momentous summer. Two weeks before winning the Emerging Europe Award in London, beating other well-established regional brands such as Wizz Air, airBaltic, LPP Group and Avast, it entered into an investment agreement with CAF, the Spanish manufacturer of railway vehicles and equipment. The agreement places Solaris in an even stronger position to taken on new international markets. “I strongly believe that CAF has the right vision for the company and will be able to develop Solaris’s potential on a global basis,” said Solange Olszewski, owner and CEO of Solaris. To pick up the prestigious prize was Dariusz Michalak, deputy CEO and the company’s director of Research and Development. “We are proud that Solaris is a brand which enjoys global recognition and appreciation. The Emerging Europe Award is a wonderful confirmation of this fact and caps an exceptional year for our company, which has become the European leader on the market of e-mobility and low- and zeroemission vehicles.” Solaris is a family business founded in the 1990s by Solange and Krzysztof Olszewski. The company has grown to over 2,300 employees. In 2017, 70% of sales went to international markets and vehicles are currently sold to 32 countries.

Left: Young professionals contributed to a riveting discussion in the breakout session ‘Social Innovation & Dynamic Entrepreneurship’.

Below: The Emerg-

ing Europe awards provided a fantastic opportunity for networking and promoting the CEE region in London.

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The European Economic Congress (EEC) in Ka-

towice hosted over 11,500 participants, 700 journalists and over 900 speakers from around the world. The three-day event is recognised as a major forum for discussions on the future of Europe.

EuroPEan EconoMIc congrEss In KaTowIcE

Tomorrow’s leaders in the room The jubilee edition of the European Economic Congress in Katowice focused on the future of the European and Polish economy; prospects for growth and competitiveness, the technological revolution, environmental responsibility and economic cooperation in the free market.

A record number of attendees and experts attended keynote speeches, panel discussions, meetings and networking events at one of the largest business events in Central Europe.

Over 150 sessions took place during the three-day event where 900 speakers, including experts from abroad, discussed a number of current issues such as “Industry 4.0” – the fourth industrial revolution and the EU energy policy in the context of the upcoming UN global climate summit (COP24) in Katowice.

Additionally, a number of panels were dedicated to economic relations between Poland and China, Germany, USA and even West Bengal.

Representatives of regional authorities, including the Marshal of the Silesian Voivodeship, Mayor of Katowice and Chairman of the Board of the Silesian Metropolis, opened the Congress. During his welcoming address, Wojciech Kuśpik, initiator of the EEC and CEO of the organising company PTWP Group, said the event “responds to a real need for an open debate and that we are still able and willing to talk to one another.”

With an emphasis on European solidarity while tackling Brexit, climate change, trade wars and the migration crisis, the experts on the opening

panel of the Congress shared their views city, which is why they are building a new on ‘New Europe’. The technological rev- shopping centre, Galeria Libero, as well as olution was also a theme of the discus- office complex Face 2 Face. sion and Jadwiga Emilewicz, Minister of The debate on mining was led by Entrepreneurship and Technology, said Grzegorz Tobiszowski, Deputy Minister 30% of all occupations in today’s market of Energy, who stressed that the govare expected to disappear, so an active and ernment would accept a programme for creative approach to education is required the brown coal sector in the near future to adapt to the changes. and that as a result of reforms over the last The new law on supporting direct two years, there is an operational vision investments and the strategy of extend- for coal mining, meaning that the situaing economic zones to the whole of tion is “stable, efficient, safe and effective.”

Poland was also discussed and Janusz European Start-up Days, an event Michalek, president of the Katowice accompanying the Congress, included Special Economic Zone, said the Congress a keynote speech by Poland's Prime provided a valuable contribution to the Minister, Mateusz Morawiecki, who said, discussion about the new opportunities “In 10 years Poland will be a high-tech for entrepreneurship and innovation to country. There are future leaders of the develop the industry 4.0.

Polish economy in this room.”

Nicklas Lindberg, President of the Management Board of Echo Investment, said the Congress in Katowice is not only an excellent opportunity for business meeting and market summaries, but also a chance to show the impressive development of the capital of Silesia. Echo Investment has been present in Katowice for years and Lindberg said the company believes in the power and potential of the Above: Participants helped identify the most important changes in digital technologies, environmental issues, geopolitics and the global economy.

Left: Poland’s Minis-

Above: Speakers

during the discussion panel "Drones in the Polish economy" agreed that drones are devices that give many possibilities, but they can also pose a threat.

photos: European Economic Congress

ter of Foreign Affairs, Jacek Czaputowicz, was one of the key representatives of the government at the congress.

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InnosHarE

Harnessing the diaspora in Warsaw

Right: During the

photos: innoSHArE

three-day congress, participants heard from prominent speakers from around the world, pitched their ideas to investors and established contacts with representatives of companies and universities.

Left: Each day featured a diverse

range of panels, presentations, competitions, and workshops to help stir the pot of creative energy and vast networking.

In June, the Palace of Culture and Science in Warsaw was alive with the buzz and chatter of over 600 young innovators attending innoSHARE 2018, a conference on developing and expanding innovation in Poland.

“I will compare my thoughts with the talks on subjects like business and startup development, and try to see where my ideas are compared to a typical startup. I want to find a way to interest someone with my ideas,” said Jakub Zdroik, a researcher for the Institute of Oceanography at the University of Gdańsk.

The first day, “Startup & spin-off,” was dedicated to the success of startup companies. The second day, “Science, innovation, & business,” focused on marketing novel science and technology ideas.

The third day, “Biotech forum,” was an in-depth examination of biotech culture and strategies. Both local and international figures spoke, many from the Polish diaspora — the conference included representatives from the United States, Mexico, Canada, Sweden, Great Britain, Germany, Switzerland, the Netherlands, Australia, and Singapore.

“A lot of what I plan to do in Poland in the next five, 10, 20 years depends on what comes out of this trip, spending time at this conference, and also the networks that I develop. I want to explore Poland because I want to look at things globally,” said Philip Link, an innoSHARE speaker from Australia who is currently the managing director of EnergyLink Services.

by Taylor Chin

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Below: Simon Sinek

is a renowned leadership expert and bestselling author who teaches leaders and organisations how to inspire people.

Below right:

Agnieszka Orłowska, Director, EMEA Customer Experience and Head of Wroclaw Site, VP ABSL, provided her insights at the panel ‘Enterprise Forward - creating total workforce agility.’

annual aBsl confErEncE In Poznań

The importance of empathy in business leadership Poznań, a city open to business and investments, welcomed ambitious and highly qualified experts, representatives of global companies, as well as national and local authorities to the 9th edition of the ABSL conference. This year’s event, which was organised by the Association of Business Services Leaders, attracted nearly 1,100 guests and featured Simon Sinek, a worldwide famous leadership guru, as its guest speaker.

Three themes were the focus of the conference: people, technologies, and business & markets. The first was dedicated to exploring today’s talent sourcing methods, team management and fostering cultural diversity in global corporations. The second theme concentrated on the business services sector’s technological revolution from blockchain to artificial intelligence with speakers such as Karolina Marzantowicz, CEE Chief Technology Officer at IBM and experts Carole Murphy and Piotr Grzywacz of Capgemini, a business consulting corporation. The third topic was devoted to discussions about Poland’s investment potential, the competitiveness of its cities, and business development which was led by speaker Jennifer M. Johnson, President, Franklin Templeton Investments.

After a full day of discussions and networking, Sinek took to the stage with a riveting speech about the successful running of companies, and how both business leaders and employees are responsible for a healthy company culture. In essence, he said that the key is empathy, and not being afraid to show ‘weakness’ by admitting to one’s difficulties, be it at work or at home.

It was a lesson for those supposed ‘Alpha’ leaders who believe they have to present an image of professional perfection. They don’t have to, said Sinek, they just have to be honest. by Monica Zielinski

Below: The panel ‘Rethinking city competitiveness’ focused on the implications of disruptors such as technology, global sourcing centres and how developers can cooperate with cities to create an environment that can attract talent.

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quis rem estotate pa vollo commodias ellecupta dolorempel illati volores spicius, exerum fugiasit ad molute offic tem sinatiur sam qui nonet rem essitam essimus et eost, ulparchil ilit

photos: ABSL

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28TH KrynIca EconoMIc foruM

A gathering in the mountains

Left: Prime Minister

Mateusz Morawiecki disclosed Poland’s challenges regarding the health economy in the context of economic development.

Below: Jerzy

Kwiecinski, Minister, Ministry of Investment and Economic Development; Teresa Czerwinska, Minister, Ministry of Finance; Lukasz Szumowski, Minister, Ministry of Health

The Krynica Economic Forum

this year was visited by almost 4,500 guests and over 600 journalists from 60 countries. For nearly 30 years, the Forum has been a place for discussions regarding development and universal challenges.

Right: Andrew Wro-

bel, Editor-in-Chief of Emerging Europe and Poland Today’s partner in CEE, moderated the panel ‘Barriers, Challenges and Perspectives for European Financial Sector after Brexit.’

photos: Economic Forum

You know the summer has ended when Krynica Economic Forum rolls around, but at least it means participants are full of energy and ideas. In the same week that children return to school after the long summer holidays, their parents – or at least those with leadership positions in Polish businesses, plus an assortment of foreign business people, academics and journalists – head to the Polish mountain resort of Krynica Zdrój for the annual Krynica Economic Forum. Other than the perennial discussion on whether the event is gaining strength or heading for the skids, it has been remarkably resilient to date and still attracts the most senior government figures, including Prime Minister Mateusz Morawiecki.

The event, organised by the Foundation Institute for Eastern Studies always presents a plethora of topics for discussion Below: Richard and this year was no different. Under Stephens, Editorthe banner of ‘A Europe of common in-Chief of Poland Today with David values or a Europe of common inter- Lidington, Minister ests?’, some of the themes that attendees for the Cabinet were able to acquaint themselves with Office and Chancelincluded: Between Economy and Politics. lor of the Duchy In Search of Recipes for Economic Growth; of Lancaster.

How to Effectively Build an Innovative Economy? Experiences – Inspirations – Strategies; Europe – Yesterday, Today and Tomorrow; Brexit and the Future of the European Union; Europe in Search of Values; and Investments in Health and Health Economy – Health Challenges of the State in the Context of Economic Development.

The winner of this year’s ‘Man of the Year 2017’ prize (note to organisers: shouldn’t it be ‘Person of the Year’?) was Lithuanian Prime Minister Saulius Skvernelis due to his fostering of relations between the two countries. Notably absent were senior city officials, in large part because many of the mayors are not (ruling party) PiS-supporting. It will be interesting to see if it will be similar this time next year, after the upcoming municipal elections. by Richard Stephens

EVENT rEViEw

EVENT rEViEw

warsaw HEad 2018

Making waves on the Vistula River

Above: Crews from AGH University

of Science and Technology and University of Wrocław wait at the start.

Left: The rowing regatta came to a close with an award ceremony and afterparty at Cud nad Wisłą bar.

Below: TWDW Rowing Club women's 8

posed for a team photo during the event.

Thirty rowing crews from Poland, Czech Republic, Germany, Hungary, and Great Britain converged on Saska Kępa Beach for the first Warsaw Head International Rowing Regatta. On a Saturday in June, spectators and athletes alike crowded on the sand, enjoying the sunny day and the sight of boats on the Vistula River. TWDW (Towarzystwo Wisła Dla Wioślarzy) Rowing Club organised Warsaw Head’s debut, along with co-organisers Warsaw Rowing Club, a competitive rowing club in the Żerań district of Warsaw, and Pro Bono Foundation.

“We were inspired to enter this competition because it sounded like an interesting opportunity to come to Poland and row on a new river,” said Darcy Weaver, a representative of the Cantabrigian Rowing

photos: Michał Sętorek and Zbigniew Biernacki

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Club in Cambridge, UK. “We thought it’s a good teamwork exercise. We’re not here to win; we’re here to take part in a competition, to be on the water with others,” said Małgorzata Dezor, the head of marketing of the Linklaters in Warsaw.

The host, TWDW Rowing Club, was founded in the Saska Kępa district of Warsaw in 2016 by rowing enthusiasts and University of Warsaw rowers including Jacek Ojrzyński, Poland Today’s key Since then, only professional rowing has account manager. Currently, TWDW prevailed in Poland, and it was TWDW’s is home to about 100 members, and all are dream to break that barrier down welcome regardless of age or experience. and reestablish recreational rowing. With Before WWII, rowing was popular in nearly 350 participants, including 30 rowPoland however, after the war, rowing ing crews, in Warsaw Head in its first was associated with aristocratic origins, year, the growth of recreational rowing and the Communist Party did not allow in Poland will hopefully continue to leap the continuation of amateur rowing. forward. by Taylor Chin

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Lech Ignatowicz: a disease-fighting man in lycra

Impressions

A Polish med-tech CEO finds a new sense of adventure in Stockholm.

first years expected contribution on the invite in Sweden were spent doing lab to a graduation party.” Aside from research for his PhD work. “I looked most that, Swedish life was relatively of the time like Dustin Hoffman in The easy for Lech to adapt to, and Outbreak. Chasing rogue mice in an iso- he approached the small diflation chamber is not a sport, but gives ferences with a positive mindset. you a great workout,” he joked. Lech “Lack of sunlight in winter and trivial received the Marie Curie Fellowship from things can be a nuisance, but if you the Karolinska Institutet in Stockholm in live by the Swedish saying ‘there’s his final year of master’s studies at the no bad weather, only bad clothing,’ University of Warsaw, which urged him to you’ll be okay.” pack his Polish roots into a suitcase and When asked about his strangest fly them over the Baltic Sea to Sweden. or most surprising experience abroad, In addition to Poland and Sweden, he Lech replied, “Being almost hit by lived in Belgium for a year as an Erasmus a jumping deer in the middle of the city Exchange participant, where he was an while cycling from work in the winter active underwater hockey player (which at -20°C. The deer was scared by an is, indeed, a real sport).

80-plus-year-old lady who was crossCurrently a long-term Stockholm res- country skiing in the woods with her tiny ident, Lech is the CEO and co-founder dog. Just another day in Stockholm!”

In his free time, Lech is quite active. of Biopromic, a med-tech company that develops low-cost, fast-diagnostic “I love cycling, and Scandinavia tests for infectious diseases. “Imagine is a road cyclist heaven. During the wina pregnancy test but for tuberculosis, ter we switch to long Nordic skates and malaria, or pneumonia — that’s what we hit the lakes. I used to dance a lot, a bit do,” Lech explained. “I’m also involved on the stage. I cycle fully embracing the in a few other biotech startups as MAMIL stereotype — a middle-aged man a founder, investor, or board member, in lycra. I can jump into freezing water.” but everything revolves around techAlthough Lech misses his family nologies focusing on disease eradica- and friends, he’s grown attached tion, especially in a low-resource setting. to life in Sweden. “I can call Sweden my Other ventures included mosquito traps home now and I don’t plan to relocate using chemical compounds produced soon. Sweden broadened my horizons by malaria parasites, a human milk and taught me to think about tomorrow bank system, veterinarian tests, and rather than yesterday.” by Taylor Chin placenta-derived stem cells. Sounds crazy, but has very solid science behind it — it’s geek fun.”

One of the most noticeable changes for Lech was the difference in work culture between Sweden and Poland.

“Sweden has a very flat management structure, which I think is probably the biggest advantage the Scandinavian economy has over the rest of the world,” he said. “The roundtable discussions with all the members of the team are the norm where everyone has the opportunity to speak. It does sometimes lead to indecision (‘let’s have a meeting to discuss the next meeting’ is a common phrase), but in the end it leads to better teamwork.”

Another surprising aspect of Swedish life is that you are expected rather than encouraged to pay your share of a bill — “forget about buying rounds of beers and don’t be surprised to see the bank account number and an

‘I can definitely say that Sweden broadened my horizons and also taught me to think about tomorrow rather than yesterday’

Lech Ignatowicz has lived in Sweden

for 12 years and is the CEO and co-founder of Biopromic, a med-tech company that develops low-cost, fast-diagnostic tests for infectious diseases. He has a Master’s degree in microbiology from University of Warsaw and a PhD in infectious disease immunology from Karolinska Institutet, Sweden’s largest institution for medical academic research.

Best way to enjoy

the nordic summer isto hop on a bike and explore the endless country roads.

photo provided by Lech Ignatowicz

Lech Ignatowicz’s

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Foreign impressions

Wrocław welcomes a Turkish delight Relocating from the Mediterranean seaside to a Polish city presented a set of challenges, but with a growing business and recent nuptials, the Turkish native is here to stay.

Elvan Gazi was born in Gaziantep, Turkey

and spent most of her life in Mersin, a seaside city in southern Turkey. While earning bachelor’s degrees in business administration and public administration, Gazi spent six months of Erasmus studies at the Wrocław University of Economics where she later earned an MBA. After working as an analyst at Hewlett Packard in Poland and then Euro Bank, Gazi decided to start her own marketing business in Wrocław where she’s been living for over 11 years.

What did you know about Poland before you came for the first time?

We learned world history in school and I remember reading about King Sobieski. I knew Poland and Turkey had a good political and historical relationship. There is a Polish village in Istanbul called Adampol where around 5,000 Poles live. There is a statue of of Adam Mickiewicz and you see signs written in Polish.

Why did you decide to come to Poland for Erasmus studies?

When I came in 2008, Poland was still a new member of the European Union which was an interesting subject for me. I wanted to research how Poles were living and ‘life in the EU’ because Turkey also wanted to join and it was a case study at my university.

photo provided by Elvan Gazi

Was it difficult to learn the language?

Before coming to Poland, I only knew how to say ‘hello’, ‘good morning’ and ‘yes’ or ‘no’. I think Polish is one of the most difficult languages in the world. I didn’t need to learn Polish until I worked for a Polish bank as a sourcing manager and needed to do tender requests for Polish providers so I took a six month language course at the University of Wrocław. After that, I met my husband who didn’t speak English and because of him, I really had to learn Polish.

Why did you decide to leave the corporate world to start your own business?

I first arrived in Poland in February and to be honest it was a hard winter compared to Mersin where temperatures don’t drop below +15 degrees so imagine how hard it was to adjust to -10 degrees and lack of sunshine in Poland.

Apart from the weather, I was impressed by the architecture in Wrocław and the greenery – the city’s character made me feel happy to live there.

I travelled to 25 countries during the eight years that I was working and in each country I visited, I saw different ideas but one of them, which is my lovely product, was not in Poland. This idea – Wet Wipes with own logo – was totally missing so I decided to create this kind of advertising medium, a gadget for hotels, restaurants, transport companies, catering companies, wedding or event organisers. Now we are in a time where hygiene is very important, so we combine hygiene with advertisement.

What are the cultural similarities between Poles and Turks?

Was it difficult to start a business in Poland?

Poles are as hospitable as Turks – they don't let their guests leave their home without eating something. One more similarity is that old ladies wear scarves like Turkish old ladies. I see them a lot in small towns, even where I live now. Maybe it is a symbol of their morality, religion or ethics and it makes me feel like we are similar.

My company, Gazi Marketing, is a marketing and advertising company and it was difficult at first because it is a new idea, and Poles don’t know what it’s used for. In Turkey, every kebab shop and restaurant gives customers these wipes with their own logo to add prestige and cut costs of cleansing products. Most places don’t have bathrooms for customers to wash their hands so this would be a great product to have in such shops.

What were your first impressions of Poland?

Did you have any strange experiences in Poland?

‘I was impressed by the architecture in Wrocław and the greenery – the city’s character made me feel happy to live there’

still searching for those ladies with my photo.

When I was a young and beautiful student (laughs), I had long hair and looked like the famous singer Shakira.

While I was walking, everybody was looking at me and one day, two women stopped me and asked for my autograph and a picture with me. I didn’t speak Polish so I couldn’t ask what was going on but I agreed to pose for the photo. That was really funny and I’m

Besides business, is there anything keeping you in Poland now?

Of course, I can say love. I have a Polish husband and in the middle of September we got married with a wedding reception in Turkey and then we will return to Poland to have the wedding in the Catholic Church. So apart from business, love keeps me here.

interview by Monica Zielinski

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The CEE Summit 2018 Investing in New Europe: cities, sectors, development and capital markets 8th-9th November, Radisson Blu Hotel, Warsaw

Conference Day 1: Thursday 8th November 09:00-12:00 A guided property tour for international attendees, open to all participants, of key assets, developments & future projects in and around Warsaw.

12:00-13:00 Registration & Lunch 13:00-13:15 Welcome Richard Betts, Head of Events & TV, PropertyEU Richard Stephens, Founder & Editor, Poland Today 13:15-13:45 Keynote presentation: The new political landscape in Poland By this time the results of the city elections will only just be known. How will the balance of political power across the country be affected?

Marek Matraszek, Chairman, CEC Government Relations 13:45-14:15 Keynote presentation: Poland, CEE & the global business view What can we expect from global capital flows and which sources are targeting the CEE? Sabina Kalyan, Co-Global Head of Research and Global Chief Economist, CBRE Global Investors

SPONSORS

14:15-15:00 Keynote panel: Poland & CEE – the investors view What are the decisions behind investing in Poland & CEE? What factors are taken into account, and how are the different sectors and locations viewed from the perspective of key investors?

15:00-15:45 Networking coffee 15:45-16:00 Presentation: China’s Belt & Road Initiative – investment boost for the CEE? A USD 900-billion investment programme sees the Chinese amassing thousands of kilometres of railway lines and a portfolio of ports across Europe. What are the impacts and the outlook for the CEE region from a logistics perspective?

Frank Schuhholz, Founder, FMS Advisers B.V., Netherlands 16:00-16:45 EPRA panel discussion: Taking the long-term view in property The view from international listed company on the future value of real estate 16:45-17:30 Speed dating session In depth insights combined with networking on all the latest trends and alternative subsectors that are having a rising impact on the real estate market.

17:30-18:15 Breakout session: Locations across the CEE & SEE From Warsaw and Poland’s regional cities, through mature markets like Prague, Budapest and Bucharest, to discussion about Baltics states and SEE. What are the risks, returns and the opportunities for cross-border investment?

18:15-19:30 Networking cocktail 19:30 Celebration Dinner: Honouring the 100th Anniversary of Polish Independence 100 years ago Poland re-emerged as an independent nation state after 123 years off the European map. On this 100th anniversary occasion, the real estate market joins the celebrations and takes its own stroll down memory lane, with early market pioneers taking to the stage and recounting memories and anecdotes from the early days.

An occasion not to miss.

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ORGANISERS

theCEEsummit.com Conference Day 2: Friday 9th November 9:00 Registration & Networking Breakfast 09:30-10:00 Keynote speech: Urban development & renewal What can we learn from the perspectives of major cities around the world on the successful re-generation of urban landscapes.

How to create cities that meet the challenges and needs of the next generation in an ever changing, dynamic world.

10:00-10:20 10 Top developments in CEE – multi-media presentation Leading developers from across the CEE highlight 10 development opportunities.

What are the best upcoming developments in the region?

Speakers Andrew Brooking, Director, Java Capital

trends and strategies are blowing away the old established certainties and transforming the CEE market?

Paweł Dębowski, Partner, Dentons, CEE

12:15-13:00 Panel discussion: Strategies for success Key international investors share their experiences of investing in CEE, the successes, the challenges and the opportunities. How does international capital read the future for the market? Where the is the market heading and which strategies are likely to boost performance?

Martin Erbe, Head of International Real Estate Finance Continental Europe, Helaba Dr. Walter Hampel, Head of Real Estate Finance International Clients & CEE, pbb Deutsche Pfandbriefbank Adam Irányi, Head of Investment Europe II, Union Investment Real Estate GmbH Sabina Kalyan, Co-Global Head of Research and Global Chief Economist, CBRE Global Investors Robert Martin, Founding Partner, Head of Central Europe, Europa Capital

13:00 Networking Lunch & close of conference

10:20-11:00 Panel discussion: Cities – building the vision Poland & CEE city leaders and international urban development experts discuss the global trends influencing cities, what this means for development, renewal, growth and the role of investors and developers in creating sustainable investment in cities.

Frank Schuhholz, Founder, FMS Advisers B.V.

11:00-11:30 Networking coffee

Petr Boruta , Marketing Manager, Spaceflow

11:30-12:15 Breakout sessions: Sectors Office, retail, logistics & warehouse, hotels or residential – each of the sectors has its own dynamics and creates its own development and investment opportunities. How global

Tobias Steinmann, Director Public Affairs, EPRA

Michael Siefert, Managing Director, Madison International Realty Craig Smith, Head of Research & Property, Anchor Stockbrokers

Wouter de Vos, CEO, Atterbury Property Investments

BREAKOUT SESSION SPONSOR

LOCATION SPONSOR

MEDIA PARTNER

PATRON

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The CEE Summit 2018 Investing in New Europe: cities, sectors, development and capital markets

8th-9th November, Radisson Blu Hotel, Warsaw

� Celebration Dinner marking 100th anniversary of Poland regaining independence � Delegation from South Africa – meet the investors � First event after the Polish city elections – what do the results mean for your investments?

EARLY BIRD REGISTRATION Register now and secure your special discounted attendee rate €425 €325 theCEEsummit.com