POLAND TODAY magazine #18

A city for all: the new mayor of Warsaw shares his vision for the capital. page 46

Can China’s trillion dollar Belt & Road initiative offer opportunities for Polish business? page 20

Was a Polish economist, not John Maynard Keynes, the true pioneer of macroeconomic theory? page 76

A Nation of Cities

Poland’s thriving network of urban centres is the backbone of its economic success

PRICE: 50 PLN / 12 EUR

pages 40-62

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

H1 2019 issue no. 18

'The Curse of Abundance'

photo: Krupa Gallery

was filmed in the Yasuní National Park in Ecuador which holds one-third of the country’s oil reserves.

With China as a major stakeholder in the new oil deals, drilling has resumed, causing a threat to the Yasuní ecosystem and its indigenous tribes.

Standing up for rights and freedoms Gaining respect for the dignity of the individual is no easy feat.

The Helsinki Foundation for Human Rights is one of the oldest and largest human rights organisations in Europe. The HFHR was established in 1989 at the initiative of the Helsinki Committee in Poland. The HFHR operates primarily in Poland, in the EU and in countries formed after the collapse of the Soviet Union.

The HFHR’s aim is to develop a culture of freedom and human rights, both in Poland and abroad.

Each year, HFHR organises the international film festival ‘WATCH DOCS Human Rights in Film,' which combines the most poignant documentaries with discussions involving filmmakers, activists, and experts. The 18th edition of the festival included the ‘Curse of Abundance’ by Polish director Ewa Ewart. The film sheds light on the Yasuní-ITT Initiative, which aims to protect the Amazon jungle and its indigenous inhabitants from further drilling in the rich oil fields of Yasuní National Park in Ecuador. To find out more about HFHR, please visit: www.hfhr.pl

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5

6

table of contents

editorial

8

in focus

24

Green shoots emerging

10-16

The government has been slow to respond, but a collection of outliers is sustaining hope in the green energy and electromobility sectors in Poland.

Economics & politics

26-28

18

Inside S&P’s ratings calculator BBB+, A- or A? What’s next for Poland along the sovereign-risk roller coaster?

Frank Gill, Senior Director at S&P Global Ratings, provides answers.

20

A world of difference

The road to an ecological revolution is long, but Polish companies are determined to reduce the carbon footprint one light bulb and tyre at a time

30

Poland Speaks: Attitudes on environmental issues

32

Poland and Australia: Two unlikely allies in the quest for sustained economic growth

Poland & CEE: The buckle on the Belt & Road?

34 PT Live: All Bison, No Bull

Want to know the secret to continuous economic growth? Easy, just ask Poland and Australia. From two different angles, they have somehow come to similar conclusions about sustaining economic growth.

Table of contents

Will Poland and the CEE truly benefit from the Belt & Road Initiative launched by China’s president? Two renowned experts on global transport and logistics divulge what this investment could mean for the region’s businesses

Poland Today has gone live. Our media and communications and media organization has entered new territory this year by adding online broadcasts to our services. This is a step forward in our mission to bring Poland to the world and the world to Poland.

A General Theory of Michał Kalecki. page 76

Poland & CEE: the buckle on the Belt & Road? page 20

leader

40

A Nation of Cities

Poland's thriving network of urban centres is the driving force behind its dynamic economy

42

Spirits of diversity

In the economic success story that is modern Poland, its many cities are the country's lifeblood - and they are spreading a message of openness and tolerance

44

Cities push back

Politicians are gearing up for another crucial election and the parties’ abilities to mobilise urban voters will have implications for the country’s political trajectory in the years ahead.

46

Creating a city for all

As the new guy on the block, Mayor Rafał Trzaskowski talks about attracting investments, improving daily life, and his vision for the city of Warsaw.

48-59

In the next few pages Poland Today presents a selection of schemes, both commercial and municipal, in some of Poland's most vibrant cities

60

Between noise and silence in Poland

The assassination of Paweł Adamowicz shattered Poland to the core, both in the nationwide mourning and the recrimination that erupted shortly after. In this election year, Poland looks for answers amongst the shards.

A world of difference. page 26-28

Real Estate

64

Records just keep tumbling

Poland’s real estate investment market posted its highest ever transaction figures in all three major sectors last year, and the hotel industry got a look in too. What’s behind the property spending sprees?

66

Moving mountains for a revitalising deal

Transforming an industrial factory in the city centre is a risky business but Capital Park is confident it will provide the community with a landmark mixed-use scheme in a once neglected Warsaw district.

68

The CEE Summit 2018

Post-event report: 'New Europe' remains a hot destination for investors

Culture & hiistory

76

A General Theory of Michał Kalecki

John Maynard Keynes single-handedly revolutionised economic theory in the ‘30s and inspired the economic miracles that followed the war. Or did he? It turns out he might not have been alone.

78

Tokarczuk’s ‘Flights’ reaches a whole new level

The first Polish writer to win the Man Booker International Prize brings a historical quality of Poland to life while weaving images of ancient religion and culture into her plots.

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80

For the 5th year running we are leading the Poland conference content at the world's most prestigious real estate fair in Cannes

Warsaw’s Neon Muzeum captures the story behind Poland’s unique neon signs and artistic designs that have become urban icons of the communist era. It’s also an Instagram photo op not to be missed.

Poland Today at MIPIM ’19

#NeonMuzeum: an Instagram-able flash from the past

Impressions

84

Outside looking in

Building a strong country brand opens the door to limitless possibilities in terms of business and growth potential.

So how is Poland perceived abroad?

86

‘I didn’t choose Poland; Poland chose me’

A life-threatening surgery motivated British filmmaker Patrick Ney to create meaningful content that helps others. He’s a man driven to uncover Polish history with a foreigner’s twist and an Englishman’s humour.

88

Under the hot Dubai sun

A digital marketing consultant booked a one-way ticket to Dubai and quickly realised she wasn’t in Poland anymore.

90

South African experiences Poland with newborn eyes Greater differences aside, it turns out that South Africans and Poles have at least two things in common: their love for beer and sausages.

82

Resourcefulness sparks ingenuity

By combining cultural practices and experimental identity, Tomek Rygalik is rapidly establishing a name for himself as an icon of modern Polish furniture.

PT Live: all bison, no bull. page 34

Resourcefulness sparks ingenuity. page 80

A Nation of Cities. page 40-62

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table of contents

8

editorial

‘The country has enjoyed 27 years of continuous growth. Poland’s cities, as magnets for talent and investment, have been the backbone of this tremendous accomplishment.’

Polish cities have a vitality

Richard Stephens

Editor’s Note

Founder & Editor, Poland Today

that is striking, something that foreigners tend to notice immediately upon arrival. To some extent, this can be put down to their low expectations (usually pretty quickly dispelled). But it’s more than that. It’s a vitality that stems from a confidence and openness to the outside world. At a time when global headlines about Poland can be negative, this provides a counter-balance to that narrative, as well as a welcome breath of fresh air. This year is the 30th anniversary of Poland’s first free parliamentary elections and a good time to reflect on the immense role played by the country’s great cities in ensuring that Poland’s modern economic and social history has been a success.

As Carlos E. Piñerúa of the World Bank, our first guest on PT Live – Poland Today’s new online broadcasting stream – emphasised, the country has enjoyed 27 years of continuous growth (and counting), one of only two major economies in the world to achieve this feat. Poland’s cities, as magnets for talent and investment, have been the backbone of this tremendous accomplishment. As Professor Gorzelak, an expert on urban issues quoted in our article about Polish cities on page 42 says, Poland is lucky to have these cities. This is one of the messages we’ll be emphasising to business and economic journalists from around the world when we host them in Warsaw in September.

At a time when the spotlight will be on politics due to the parliamentary elections taking place soon after, Poland Today will highlight the extraordinary business and economic achievements of the country. This is part of our mission, which is to promote Poland as a business destination. It’s an objective we’ll be stepping up in the months and years 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

Client Relationship Associate Key Accounts Manager

Małgorzata Stankiewicz Jacek Ojrzyński

Contributors

Annabelle Chapman William Hastings Burke Sylwia Ziemacka Juliette Bretan Taylor Chin Bartosz Stefaniak

Copy Editor

Aiman Baloch

Photographs

Polska Agencja Fotografów Forum, Getty Images

Photo output

Oleh Diakon

Printing house

ArtDruk Zakład Poligraficzny ul. Napoleona 4, 05-230 Kobyłka Poland Today Magazine is printed on Munken Print Cream ecological paper © 2019 Poland Today International reproduction without permission is prohibited

Magazine layout

Bartosz Stefaniak www.madeinPolska.eu

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nazwa działu

10 in focus

compiled by Monica Zielinski

What does the world’s media say about Poland as a tourist destination? We have put together a compilation.

Europe The Independent (UK)

Global news review

Gdańsk Guide: Where to eat, drink, shop and stay in Poland’s coastal gem

“One of the most scenic, cultural and historically significant cities in the country,” declares Ronan J O'Shea from The Independent. The gem on the Baltic Coast, as the article continues, has a lot to offer history buffs. The European Solidarity Centre and the Museum of the Second World War are marked as must-see museums.

The beautiful Old Town is as an essential part of any visit and St Mary’s Basilica provides the best view of the city. O'Shea also notes that Gdańsk is home to the Globe Shakespeare Theatre, which hosts troupes from around the world. The former village is known for its fresh fish and regional dishes, which are sure to satisfy any taste bud.

The Sunday Post (Scotland)

Travel: A roadtrip through Poland should be top of everyone’s list

Despite some bumps on the road on a twoday 1,000 km trip around central Poland, The Sunday Post’s David Gordon says the destinations were well worth it. From staying at the 100-year-old Grand Hotel in Łódź, which hosted Himmler and Robin Williams, to deeply historic Kraków with its Oskar Schindler’s factory and Jewish Quarter, the holiday left him wanting more. He said, “Whilst brief, the trip to Poland was an education and has left me looking forward to returning to see more of the country soon.”

National Geographic Spain

Poland, the surprise of central Europe

The article takes us on a circular journey around Poland, discovering the wonders of what the country has to offer. The trip starts with Warsaw, a city that “despite its painful past, always transmits enthusiasm” and moves on to Łódź where textile factories are transformed into cultural centres. Scenic roads bordered by fruit trees and small villages lead to romantic Wrocław, which is famous for its gastronomy and Gothic churches. Kraków exhibits ancient beauty with a cosmopolitan

pulse while exploring the natural wonder of the Tatras mountain region is highly recommended, before ending the trip in Lublin or the dense forests of Polish Galicia.

Asia Kênh14 (Vietnam)

A visit to Poland would not be complete without trying these special dishes

Not only does Poland’s natural beauty attract visitors, but so does its diverse cuisine. That’s Kênh14’s main 'takeaway' as the article explores Poland through the taste buds. A number of popular dishes are listed as must-tries for those seeking authentic recipes. Bigos is at the top of the ranking of traditional dishes for its unforgettable taste. It’s made with meat, sausage, pickled cabbage and spices. Chłodnik soup is a cold dish made of beetroot and kefir and is a bright pink colour. Pierogi are similar to Vietnamese pillow cakes, but they’re filled with cheese, potatoes, meat, cabbage and other flavours. Żurek is a hot soup that’s served in a bread bowl and contains mushrooms, sausage and boiled eggs.

Sina.com (China)

Travel guides: Poland's past and present

After a longer second trip, Chinese travel blogger Realchi was pleased to discover that there’s more to Poland than just dumplings and jam doughnuts. He was particularly interested in its history. He tells his Chinese readers that Warsaw’s reconstructed Old Town is a World Heritage site that’s colourful and still boasts a great patriotic spirit. The Warsaw Uprising Museum tells the story of people who rose against their aggressors during WWII to free their city. He makes mention of other historically significant attractions, including Wilanow Palace, the Palace of Culture and Science and the Maria Skłodowska-Curie Museum, which is located in the former residence of the double Nobel Prize winner. For other cultural experiences, there’s the Polish Vodka Museum where visitors can taste a variety of vodka, or the Chopin Museum which is dedicated to the legendary Polish musician.

Rambler.ru (Russia)

What may surprise tourists in Poland

Rambler.ru reached out to a Polish cultural centre in Kaliningrad for a list of 12 things which may surprise tourists about the country.

The facts range from practical to bizarre but provide an insight into life in Poland. For one, most shops are closed on Sundays and on religious holidays. Also, people in Poland love to travel and transportation is cheap. Considering natives also love a tasty and satisfying meal, portions in restaurants are large. In Warsaw, a popular meeting spot for locals and tourists is the huge artificial palm tree, which was a temporary art installation that became a part of the city.

Americas CNN (USA)

Poland's most beautiful places CNN Travel tells the world that the central European country is “as expansive as it is beautiful” and shares a list of the country’s 11 most beautiful locations that should be included on every itinerary. Of course, there’s

Kraków, the ancient Polish royal capital, as well as Gdańsk with its colourful Old Town, and the post-socialism industrial town of Łódź.

Toruń, the author points out, is actually the UNESCO-protected birthplace of Nicolaus Copernicus and is known as the capital of gingerbread. Poznań also made the list for its photogenic Market Square with rows of painted burgher houses and an impressive Renaissance City Hall. The small town of Kazimierz Dolny and Białowieża National Park are also deemed picturesque.

The Boston Globe (USA)

Wrocław, Poland’s hidden gem

The Boston Globe’s correspondent sums up the appeal of Wrocław, Poland’s fourth-largest city, as being a high tech hub, cultural hotspot and historical centre in one. Dubbing the city the “Polish Venice,” the author draws our attention to the city’s more than 100 bridges, as well as the fact that it was declared the European Capital of Culture in 2016 and the World Book City by UNESCO. The article then invites us for a 'Dwarf hunt,' where we uncover the pint-size brass dwarfs that are hidden among the remnants of the city’s medieval history. We are told that these mischievous gnomes, now a favourite among tourists, began as a political art project in the 1980s before becoming the “the darling symbols of the resistance movement to communism."

Toronto Sun (Canada)

Kraków: The heart and soul of Poland

Rick Steves from the Toronto Sun likes to think of Kraków as being the “Boston of Poland," with its charming architecture, a strong sense of history, unforgettable sights and streets animated with ‘fun-loving college students." It’s a city, writes Steves, made for aimless strolling, shuffling through museums or just soaking up the “folksy intimacy."

Aside from the Old Town, churches and castles, visitors can also plan a side-trip to the Holocaust concentration camp, AuschwitzBirkenau. Millions of North Americans can trace their roots to Poland, but you don’t have to be Polish to fall in love with Kraków.

Africa The South African (South Africa)

Travel: Visiting one of Poland’s biggest surprises

During a surprising and memorable trip to Wrocław, Len Rutledge from The South Afri­ can, visited the Museum of Architecture, the National Museum and the Panorama building with its famous cycloramic painting depicting the Battle of Racławice, before reaching ZiegelBastion, which was part of the fortifications of the city. Another point of interest is the Four Denominations District, which includes three churches of different denominations and a synagogue. Wrocław’s townhouses range from Gothic to Art Nouveau styles and the Market Square is filled with restaurants and bars, live music and entertainment throughout the year.

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news nazwa round działu up

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in focus

A part of the final 4 km section of

the second line of Warsaw’s metro (M2) on the north-eastern side of the city. At present there are seven open stations and the final stop on the eastern side is Wileńśks, but by the end of 2019 three more stations should have been opened heading northeast: Swedzka, Targówek Mieszkaniowy and Trocka. A further two passenger stations and one parking station should be opened by early 2023 latest: Zacisze, Kondratowicza and Bródno. On the western side, in the direction of Wola, where the line currently stops at Rondo Daszyńskiego, three stations are due to be opened by the beginning of 2020: Płocka, Młynów and Księga Janusza, bringing the total to 15 passenger stations by 2023.

Photo by

Snapshot

Adam Chełstowski (Forum)

The assassination of Paweł Adamowicz shattered Poland to the core, both in the nationwide mourning and the recrimination that erupted shortly after. In this election year, Poland looks for answers amongst the shards. see page 60

Happy Birthday PKO BP

Amidst rising global political tension,

The largest bank

delegates from more than 60 countries gathered in Warsaw for a controversial conference on Peace and Security in the Middle East. The event was instigated by the Trump administration but only given token acknowledgement by key EU countries. Participants from Middle East countries, EU member states and the US discussed the conflicts in Syria and Yemen, humanitarian Mole on mars problems, the proliferation of weapons of mass destruction, terrorism, and One mission by NASA’s space probe energy security. Polish Foreign Minister InSight on Mars was one giant leap for Jacek Czaputowicz also met with US Poland’s developing space industry. In Secretary of State Mike Pompeo to dis- cooperation with several companies cuss security and foreign policy, specifi- and research centres, Polish company cally the enlargement of the US military Astronika developed a soil digging presence in Poland and energy secu- mechanism dubbed “Mole” that is part rity regarding the Russian-German gas of the HP3 (Heat Flow and Physical pipeline. Pompeo re-asserted Poland’s Properties Probe) device. The “Mole” position as one of the US’s closest will drill 5 metres into the surface of Mars European allies, especially in defence to measure the heat flow of the planet’s and security. Just before the confer- interior for the first time in history. With ence, the Polish government purchased a little Polish flag fixed on its exterior 20 US-made HIMARS rocket launchers among other national flags, the HP3 and US Vice President Mike Pence said started operating on Mars in January the US would “stand behind Poland.” 2019 and will send data over the next Iran was not invited to the conference few months. The InSight robotic spaceand Pence urged European countries to craft landed on Mars last November withdraw from the nuclear deal between and Bartosz Kędziora, Management Iran and world powers. The UK, France Board Member of Astronika, said, “Our and Germany, however, continued participation in the InSight mission efforts to facilitate trade with Iran. proved that Astronika is among the first league of producers of technologically advanced instruments for planetary missions. I’m glad that for the 100th anniversary of Poland regaining independence, thanks to us, this little Polish flag has successfully landed on Mars.”

by Monica Zielinski

in Central and Eastern Europe celebrates its 100th birthday this year. At a celebration for the state-owned bank’s centennial, Prime Minister Mateusz Morawiecki said it was an important market player and that: “One of the key challenges of economic policy is savings, and PKO BP has been one of the pillars in building savings.” Established on 7 February 1919 by order of the Chief of State, Józef Piłsudski, less than three months after Poland regained its independence after World War I, the bank has since accumulated an estimated 10 million clients, including individuals, enterprises, corporations and local councils. Over the last 10 years, the capital group’s assets have doubled in value to reach over 300bn zł. The historical savings bank is focusing on the future with its internet banking services and technology. In 2018, its mobile application IKO was recognised as the number one mobile app out of 100 banks from around the world

by Retail Banker International. The ranking included giant competitors such as Bank of America, UBS, Lloyds and Barclays.

photos: Kacper Pempel (Reuters), NASA, Wikipedia

Between noise and silence in Poland

US-led summit in Warsaw

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in focus

Fawning over avifauna Inspired by Poland’s rich wildlife and

an industrial factory in the city centre is a risky business but Capital Park is confident it will provide the community with a landmark mixeduse scheme in a once neglected Warsaw district. see page 66

A football star is born At the start

of 2019, Polish striker Krzysztof Piątek joined AC Milan for about €35m, replacing Argentine superstar Gonzalo Higuain. The 23-year-old signed a deal until 2023, after becoming the first Serie A player since 194950 to score eight goals in his first six top-flight football games. Piątek scored 19 goals in 21 games for his former club Genoa after joining in July 2018.

His performances seem well worth the hefty price with the young, lethal finisher comfortably filling the large shoes of new Chelsea recruit, Higuain.

In his first four games at Milan, Piątek scored four goals and is promised a cash bonus for every five goals. From Marco van Basten to George Weah and Andriy Shevchenko, Milan has historically reared top strikers, and it seems the young Polish star will be next in line to earn a spot in the hall of fame.

by Monica Zielinski

Hello Google Serial

entrepreneur Marta Krupinska will focus on diversity and supporting under-represented founders as the new Head of Google for Startups UK. Krupinska will oversee projects at London’s Google for Startups Campus in Shoreditch which reopened in March 2019 after a complete renovation. Her top priority is building an inclusive ecosystem. “It’s about creating a tech community that represents the community in which we live,” said Krupinska.

Following her success as the co-founder of the global fintech company Azimo, which raised over $70m in VC funds and attracted over 1 million users, Krupinska also co-founded a debt prevention platform called FreeUp. As a prominent figure on the UK startup scene, Krupinska was recognised by Forbes 30 Under 30. “We must ensure [tech companies are] sustainable, fair and diverse, and build a world in which we will all want to live,” said Krupinska. “I’m so excited to lead Google for Startups in the UK and use the vast resources of both Google and London’s tech scene to make this a reality.”

photos: twitter.com/mmeentrepreneur, WXCA, Wikipedia

Moving mountains for a revitalising deal. Transforming

cultural symbolism, the design teams of WXCA and Bellprat will create the Polish Pavilion for Expo 2020 in Dubai.

The winning scheme beat out over 30 other proposals with their idea to build an “open, tree-like modular structure” that will feature “kinetic flocks of birds floating over visitors’ heads." According to the prize winners, the integrated exhibition is meant to represent the migratory birds which flock to Poland from around the world and inspire legends. The pavilion will unfold into the surrounding public space and WXCA said, “Inviting visitors to accompany this journey and abundance of Polish avifauna is an opportunity to develop an intriguing, multi-layered story about the beauty of Polish nature, international exchange, mobility, the export of ideas and technologies.” The motto of the international expo, which will take place in October 2020, is “Connecting Minds, Creating the Future." Over 130 countries have confirmed their participation.

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ONliNE BROadCastiNg

Poland Today presents:

PT Live is Poland Today’s online TV broadcasting service.

From our studio in Warsaw we talk to major business and economic leaders about topics and issues of importance to Poland, from an international perspective.

Hosted by Richard Stephens, Founder & Editor of Poland Today, each broadcast is short and to the point.

For more information go to poland-today.pl/pt-live

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Economics & politics

Inside S&P’s ratings calculator Frank Gill, Senior Director at S&P Global Ratings, opens the bonnet to S&P’s ratings machine to reveal Poland’s sovereign risk outlook.

right budgetary surpluses – that is, using the current good times to pay down public debt – then that would very likely push up the rating further. In our view, the good times will not last forever. Risks on the horizon include the possibility that the US government slaps tariffs on European auto exports.

We are already seeing a marked slowdown in GDP growth in large European economies, including Germany.

Frank Gill, Senior Director, S&P Global Ratings

According to some sources, Poland is still a developing market.

To others, it is already a developed market. How would you explain this disparity in assessment?

Frank Gill is a Senior Director in the Euro-

pean Sovereign Ratings Group. He is currently responsible for analytical coverage for Poland, South Africa, Turkey, Greece as well as other EMEA sovereigns. Before working for S&P Global Ratings, Gill was a macroeconomic analyst focusing on European markets for Fortress, a New York-based hedge fund. His earlier professional experience included over eight years as an analyst focused on Russia, Eastern Europe and Turkey for Ideaglobal in London. Frank holds a Post-Graduate Diploma in Economics from the London School of Economics and a M.I.M. from the American Graduate School of International Management.

S&P rated Poland at A- in 2007.

That rating was maintained until early 2016 when it was downgraded to BBB+. Last October, S&P brought Poland back up to A-. You maintain that this doesn’t mean Poland is back to where it was before the downgrade, but rather the decision reflects a major structural change in the Polish economy. Can you elaborate on this?

Interview by Bartosz Stefaniak,

Poland Today's co-founder and creative director.

For starters Poland´s surplus in net services exports skyrocketed from 1.5%/GDP in 2012 to just under 4%/ GDP last year, reflecting rapid expansion of the business, transport, and financial service export sectors. That is an unusually high services surplus for a large country that is not a major tourist destination (and we have seen similar surging of services surpluses across Central Europe). Also, the overall size of the export sector during that same period (2012 to 2018) increased by 10 percentage points of GDP to 55%/GDP last year. Poland, particularly for its size, is a very open economy, as well as a very diversified economy. Now a lot of those exports are sales of components and other machinery primarily to Germany, given Poland´s integration into the Germany capital machinery supply chain (which includes autos). If, due to an escalation of global protectionism, German exports suffer, that will also weigh on the Polish economy.

Economically, Poland is now the healthiest it has been over the last 30 years. The country has high and balanced growth, decreasing public

There is no magic number that transforms an economy from a developing to a developed one, but here are a few benchmarks. Does a country issue all of its public debt in its own currency, and do global central banks allocate a portion of their reserve holdings into assets denominated in that currency? Is there an actively traded equity market, which also serves as a source of capital to startup companies? Is the economy competitive because it is cheaper on a relative basis compared to other economies, or is the economy competitive because the goods and services it produces are of higher quality, and therefore command greater pricing power?

What is the quality of public outputs, in particular of health and education?

‘Poland’s surplus in net services exports skyrocketed from 1.5% of GDP in 2012 to just under 4% of GDP last year. That is an unusually high services surplus’ debt in relation to GDP, a very low unemployment rate, wages rising faster than ever, etc. What should the country do to move beyond A-?

There is no question that Poland´s economy is booming. However, in our view, potential growth is lower than recent GDP growth. This means that the underlying fiscal position is weaker than the low headline deficits suggest.

If, however, Poland were running out-

In that context, how do you see the potential adoption of the euro currency playing out for Poland?

In such a scenario, most of Poland’s debt, if not all, would be issued in euros, yet the country would no longer have control over its monetary policy. That brings in mind the fate of Greece. Do you think the adoption of the euro would bring Poland closer to a developed market?

In our view, there is not a strong impetus among decision makers in Poland to join the common currency area, certainly not over the next decade. Whether or not Poland joins the single currency area does not, by itself, imply more or less economic development. One benefit would be access to deeper capital markets. But Poland could improve the depth of its own local currency markets, if it moves ahead with current pension reform plans, and finds other ways to stimulate domestic savings.

As shown in the accompanying chart, since the global downturn of 2008, Poland’s currency has weakened inversely proportional to economic growth. Despite being Europe’s growth champion, Polish GDP counted in dollars at current prices is now roughly in the same place as it

was in 2008 – that is, for the last decade, it has been floating around the same level as it was in 2008. What’s going on with the Polish currency?

First of all, according to our estimates, Poland´s dollar-denominated GDP, which remained fairly close to $525bn (+/-) between 2011 and 2015, increased by over 10% in 2018 to (our estimate) $585bn. That jump reflects a combination of factors: a) a step up in EU transfers and b) rising real wages, and rising employment, as Poland´s economy shifts away from the production of goods towards the production of services. As a rule, services are both more labour intensive, and higher wage sectors. So purchasing power in foreign currency may have turned a corner.

However, the bad news is that labour productivity growth – that is, output per worker – remains underwhelming. So most of the growth over the last few years was a function of more jobs, rather than more productive jobs.

Ultimately, weak productivity growth will tend to mean a weaker currency.

How to fix the productivity challenge?

Provide more education and training to workers. And give Poland´s dynamic private sector the opportunity to compete with public sector companies.

But isn’t productivity by definition the share of GDP per hour worked?

When you measure GDP by purchasing power parity (PPP), you see growing productivity, but when you measure GDP by its current value in USD, you see stagnation. Same goes with wages: the purchasing power of Polish wages grows steadily in the domestic market but is lower in USD compared to 2008. Yet Poland’s current workforce is neither less skilled nor puts in fewer hours than in 2008.

Does this long-term currency depreciation provide proof that Poland is stuck in the mid-income trap?

Look, Poland is getting richer, but so is the rest of the world. You look at productivity growth to determine relative competitiveness gains of Poland versus its trading partners. Here, as I said, the news is a bit more disappointing since most of the strong GDP growth over the last three years has been about putting more people (including mostly Ukrainian immigrants) to work, rather than increasing individual output. But it is important to stress that productivity per person is becoming tougher and tougher to measure, as economies become more services oriented. I remain an optimist about Poland, not least because of a strong legacy of education, and hence a skilled labour force. Going forward, educational policies will determine whether Poland´s skills edge can be maintained.

interview by Bartosz Stefaniak

Data source:

Poland's gdp Poland's GDP growth looks markedly dif-

ferent depending on the method of measurement used. When measured by the standard of purchasing power parity (PPP), the Polish economy has been growing steadily since 1992, even during the post-2008 global downturn.

However, by calculating GDP in PLN and then converting to USD at current exchange rates, GDP growth has been erratic since 2008 and indeed negative in some years.

International Monetary Fund (World Economic Outlook - Oct. 2018)

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Economics & politics

1,300 bn

GDP based on purchasing power standard

1,200 bn

(in international dollars) 1,100 bn

1,000 bn

900 bn

800 bn

700 bn

600 bn

GDP based on current market exchange rate of the Polish złoty

500 bn

(in US dollars)

400 bn

300 bn

200 bn

100 bn

1990

2000

2010

20

Economics & Politics

Poland & CEE: The buckle on the Belt & Road?

Two experts disclose what the investment could mean for the region.

It’s just over five years since

the Belt & Road Initiative was launched by China’s President Xi Jinping, but it’s still unclear whether Poland and the wider Central & Eastern Europe region will truly benefit from it, or if the area will be consigned to ‘corridor’ status between China and the ‘Blue Banana’ part of Central-Western Europe. Ahead of Poland Today’s major new conference in Warsaw about what the initiative means for Poland and CEE, we Richard Stephens talk with two renowned experts on is editor of Poland To­ global transport and logistics to find day, which he founded out what Poland must do to be a leader, in 2012 to help bring not a bystander.

Poland to the world It was in Germany’s inland port city and the world to Poland. He also runs of Duisburg in 1585 that Flemish carand moderates confertographer Gerardus Mercator published ences on a variety his new collection of maps – the first of topics in Poland and abroad. He has a global atlas – known as the ‘Mercator degree in Theology & Projection.' This publication revoluReligious Studies from tionised the way maritime navigators Bristol University in of the time saw the world and helped England them in the never-ending quest to get goods from source to destination in the quickest time possible.

Despite the almost-infeasible advances in global connectivity since then, the essence of trade has changed little. It’s still a matter of getting cargo from A to B as fast as possible, at optimum efficiency, and at lowest possible cost. Modern Duisburg has now asserted its role as a lynchpin in the global supply chain, particularly that of the 21st century ‘Silk Road.' The port, which lies on the junction of the Rhine and Ruhr rivers, is the first European stop for about 80% of trains from China.

Poland could learn a lot from Duisburg, says Wolfgang Lehmacher, former Director and Head of Supply Chain and Transport Industries at the World Economic Forum – and keynote speaker at the upcoming Warsaw conference in June: “Duisburg has reestablished itself as a hub,” he states.

“In the same way, the benefits from Belt & Road for Poland lie in the opportunity to become an important hub.”

Frank Schuhholz, a logistics expert with a particular interest in the Belt & Road Initiative – and another keynote speaker at the conference – agrees: “Duisburg has managed extremely well not only from the hard perspective, in that the city has well-developed infrastructure, but also from the soft perspective,” he

says. “The Germans were in China very countries – and still has a lower cost early talking about their infrastruc- base. Therefore, it is a favourable ture, their location and their connec- place to set up operations and manutivity towards other European regions facturing. There, we have seen the whilst serving as a key hub for trains transport, logistics and warehousing connecting China with Europe and vice market prospering over the last decversa. This led directly to President ades. However, between the 12 or so Xi Jinping visiting Duisburg to open countries of Central & Eastern Europe, the first official corridor between connectivity is not so well developed Chongqing and Duisburg.”

– not only in respect to road, rail and air Poland, Schuhholz points out, is links, but also digital connectivity.” roughly 1000 km closer than Duisburg Schuhholz concurs: “Up to 90% of to China, and should be the more current cargo flows traveling by rail obvious choice to be a logistics hub between China and Europe and vice supporting distribution and supply versa go through Poland, so other EU concepts. “Poland has to step up and and CEE countries see the country as a show that it is not only a transit coun- competitor to their own ambitious plans try, which it is at the moment, but that and go directly to China to show themit can be the important node connect- selves as the future hub for the Chinese,” ing north to south and east to west,” he he claims. “China notes all this, gathers says. “There is not much value in just the information, and then uses it for its being a corridor,” adds Lehmacher. own advancement. It’s important for “The real value is in becoming an intel- these countries in the CEE region to ligent and well-connected node in the get together to coordinate their policies flow. The CEE’s prosperity could be sig- and approaches towards the Chinese. nificantly accelerated with better north- Whilst I understand the underlying south connectivity. There is no reason motivation for each country’s reprewhy trains couldn’t stop in Poland first.” sentatives, I feel that it’s not good for these countries to develop separate Overcoming local rivalries plans. A more coordinated approach So, what should Poland do to ensure would reap more benefits,” he says. that it becomes this ‘connecting node’?

Lehmacher agrees: “Many in the There are several elements, according region consider countries like Poland, to Lehmacher. “It needs good infra- Slovakia, Hungary and the Czech structure – not just hard infrastructure Republic as small entities. I say, these like roads, ports and rail links, but also digital infrastructure. It also needs qualified personnel – people who can work About the Belt in logistics. And it needs smart rela- & Road Initiative tionships with its neighbours – both The Belt & Road Initiative (BRI), originally soft and formal. For example, Katowice known as One Belt One Road (OBOR) and is a very industrial region. What rela- sometimes referred to as ‘The New Silk Road,' is a $1tn global development strategy conceived tionship does it have with the indusby the Chinese government to better link China trial regions of the Czech Republic, – and Chinese goods – to the rest of the world, Slovakia, Hungary and Romania? These involving infrastructure development and kinds of things are important to build a investment in countries in Europe, Asia and Africa. The ‘belt’ represents overland corridors strong industrial cluster and ecosystem (including roads, rail and bridges) while the that requires major logistics hubs.” ‘road’ – somewhat counter-intuitively – refers Both Lehmacher and Schuhholz to maritime shipping lanes. Announced by strongly agree that it’s essential that China’s President Xi Jinping at the end of 2013, the aim of the initiative, according to China, is local competitors put aside their rival“to enhance regional connectivity and embrace ries and work together and build an a brighter future.” Sceptics see it as an attempt aligned position, especially when fac- at ‘economic imperialism,' a projection of 21st ing the monolith that is China. “Poland century China’s power and a counter-balance to US global influence. is very well situated between the western European countries and the Asian According to the UK’s The Guardian, “Beijing’s nations plus Russia,” states Lehmacher. multi-billion-dollar Belt & Road Initiative “It has strong economic growth – has been called a ‘Chinese Marshall Plan,' a state-backed campaign for global dominance, stronger than more established EU a stimulus plan for a slowing economy, and a massive marketing campaign for something that was already happening – Chinese investment around the world.” It is believed that Chinese companies have secured more than $340bn in construction contracts along the Belt & Road at the expense of local contractors in partner countries. Compounding this atmosphere of mistrust is the ongoing deterioration in trade relations between the US and China, and the exclusion of Chinese companies from the 5G rollout due to concerns about security exposure. It’s in this environment that the Belt & Road Initiative operates, adding to the challenge of successfully implementing the project.

‘Poland has to step up and show that it is not only a transit country’

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Economics & Politics

China Railway Express contain-

ers at the Europort terminal in Małaszewicze, Poland near the border with Belarus.

Transit times from China to Europe, including

photos: Kacper Pempel (Reuters)

pre-carriage (the movement that happens before the container is loaded on the ship) and oncarriage (the movement that happens after the container is discharged from theship): - by air: 4/6 days - by rail: 14/18 days - by sea: 40/45 days

22

Both logistics experts, Wolfgang

Lehmacher and Frank Schuhholz, will be keynote speakers at the upcoming Poland Today conference entitled ‘Central & Eastern Europe: Co-building the Belt & Road’ in June.

Economics & Politics

countries are only small if they see themselves in isolation and not as part of the EU, one of the largest economic blocs in the world,” he asserts.

From enthusiasm to pragmatism

were going from China to the Czech Republic, for example, full of goods, but there were no backloads. It was a oneway corridor with a total imbalance of trade due to the fact that at that time the silk route was not as well-known as it is today. But 10 years on and we still see this trade imbalance. From this point of view rail is no different to deep sea maritime transport, but on a much smaller scale. We as Europeans have to look at it from a pragmatic point of view: can we make the business case work? In other words, can we establish east and westbound rail products which are able to cover their costs and still generate profits? Will these connections be sustainable in the future?

Will the partners along the transport chain be able to make logistics work so that customers from various industries can rely on fast and stable transit times?

It is expected that the funding of trains by the Chinese authorities will disappear at some point in time, most probably in 2021-2022, and we have to see if service providers will be capable of offering economically sustainable pricings to make the business case work by then. And for it to work, we have to see trade not only from China to Europe, but the other way around as well.”

Lehmacher is, in broad terms, positive about Belt & Road. “It’s the largest area development project of all time,” he says. “We have gone through various stages since I wrote my article for the Financial Times back in September 2015, ‘Hurdles along the New Silk Road.' Back then the world was trying to understand the idea. What does ‘One Belt One Road’ (the original name of the initiative. ed.) actually mean? We were impressed by the numbers: [An initiative] covering countries totalling more than 50% of the world’s GDP, more than 70% of the world’s population and about 25% Missing connections of global trade. This is a great resource To the question: ‘Can Poland and CEE and potential growth engine. Then we be the buckle on the Belt & Road?’ moved to being impressed that China Schuhholz states emphatically that it’s set up the investment vehicles and put all about “infrastructure, infrastructure, the initiative in motion. More than 60 infrastructure. We see bottlenecks at countries committed to the concept the eastern border of Poland. We see and signed on for a long list of invest- that the railway network is not yet ment projects. I call this the phase of developed to the stage where seamenthusiasm. Then in 2017 we entered less flows of cargo by rail are possible. the phase of pragmatism. Countries At the moment the cargo is stuck at the realised that although there were cheap various border points because of cusloans available, sound analysis of costs- toms issues, change of gauges and versus-benefits and thorough business the lack of high-performing, efficient plans are needed to ensure a win-win terminal infrastructure. And on top of situation in the long run, and that the that there are still missing sufficient debt can be repaid.” north-south connections.”

It seems clear that there is still a long Lehmacher and Schuhholz identify two main challenges regarding way to go until the Belt & Road initiathe Belt & Road concept in relation to tive is truly a two-way street, and that Poland, the CEE and, in fact, the whole Poland and CEE countries still have of Europe. One is infrastructure, and much improvement to make before the the other is the balance of trade – or region can present itself as a true transit rather, its imbalance. “The west has to hub. But the rewards, if this improvefigure out what else the Chinese can ment can happen, are potentially sigbuy, and make the proper value propo- nificant. by Richard Stephens sitions,” states Lehmacher. “This needs to be factored into an economic development plan to make the initiative more beneficial for the transportation sector and countries along the Belt & Road.”

Building a two-way street Schuhholz picks up the thread.

“Looking at it from a rail and logistics perspective,” he continues, “back in 2008-2009 the first regular trains

‘The Belt & Road is all about infrastructure, infrastructure, infrastructure’

Frank Schuhholz

is a global expert on logistics, with a particular focus on the Belt & Road Initiative.

He has been tracking Chinese activities and interests in Europe for 10 yearswhile working for the A.P. Moller Maersk Group.

In 2016 he set up FMS Advisers in order to assist business leaders who believe that rail can play a far more important role within their company’s supply chains in the future then it does today. Frank is a co-organiser of the June conference in Warsaw.

Wolfgang Lehmacher is

a thought leader in global transport, logistics and supply chain. Until recently the Head of Supply Chain and Transport Industries for the Geneva-based World Economic Forum, Lehmacher now works as a nonexecutive board director and strategy consultant who is an ‘industry and technology evangelist and polymath, offering advice and support to stakeholders across the global supply chain ecosystem – ranging from start-ups, to investors, to Fortune 50 companies.

The biggest challenges facing the

transport and logistics industry today, according to Wolfgang Lehmacher:

- Global uncertainty around international trade caused by trade tensions and Brexit - Digitisation: how to harness the potential of the Fourth Industrial Revolution to establish end-to-end visibility and design new business models - Cyber risk: this moved to the CEO agenda when APM Terminals and TNT were hit by NotPetya in 2017 - Insufficient and poorly maintained transport infrastructure, including roads, railway networks and ports - Shortage of labour, for example truck drivers and pilots - Customs clearance: a diverse landscape of customs regulations across the world

Sectors and types of business that could benefit from the Belt & Road Initiative, according to Frank Schuhholz: - E-commerce companies, using their location in Western European markets to link their operations with Chinese supply and distribution markets - Automotive sector: the supply and distribution of finished vehicles to and from Europe - Logistics Service Providers, which can benefit from the increasing volume streams to and from Asia by rail in form of warehousing and value-added services - Commercial Real Estate companies: the need for more state-of-the-art infrastructure in the form of warehouses or freight villages to satisfy the needs of growing trade being routed via rail between Europe and China, plus the additional consultancy and brokerage-related services

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conference & cocktail party

Poland & CEE: co-building the Belt & Road 11-12 June 2019, Warsaw

What business opportunities are there for Polish and CEE companies in the largest global trade and infrastructure initiative ever launched?

Find out from leading international figures what Belt & Road means for this region.

Keynote speakers: Wolfgang Lehmacher, thought leader in global transport, logistics and supply chain, recently the Head of Supply

Chain and Transport Industries for the Geneva-based World Economic Forum

Frank Schuhholz, global expert on logistics, with a particular focus on the Belt & Road Initiative.

Registration and more information: poland-today.pl

Economics & politics

Despite the government dragging its heels, some notable Polish companies are joining the fight against climate change.

the interna- Road to electromobility tional spotlight at the end of last year There is plenty going on in the area of when the United Nations Climate electromobility in Poland. The Polish Change Conference (COP24) landed in Development Fund (Polski Fundusz Katowice – which just happens to be the Rozwoju, PFR), set up in 2016 to invest historical heart of Poland’s coal mining in sustainable social development and industry. While the international com- national economic growth, is supmunity discussed measures to com- porting and promoting the country’s bat climate change around the world, fledgeling E-Bus and Electromobility Poland carried out its own conversation. industry. Along with various ministries, Inconvenient questions were raised, PFR signed a letter of intent with 41 namely about Poland’s dependency on Polish cities and towns, which together carbon-intensive power generation. It account for 45% of the country’s total came just as the Polish Supreme Audit bus fleet. The purpose of this agreeOffice (NIK) raised doubts over whether ment is to develop Poland’s electric the country could achieve its stated tar- public transportation system. At preget of generating 15% of its total power sent, only 31 electric buses are in operafrom renewable resources by 2020. At tion throughout Poland’s largest cities. the same time, private corporations The programme aims to add another and consumers alike have called out 1,000 electric buses by 2021. A sigfor transparency, certainty and action. nificant portion of the fund has also To shine a light on companies which been allocated to technical and techare leading Polish efforts for a more nological development, including in the sustainable energy-oriented country, private sector.

Poland Today reached out to Trendy The Rafako Group, the largest manw Energetyce (Energy Trends), a lead- ufacturer of power generation equiping industry portal that tracks market ment in Poland, has become an unlikely trends in the energy sector in Poland. new player in the industry. Sensing Scratch the surface, they say, and it an opportunity to diversify and grab might not be all coal-black. Although a piece of the multi-billion dollar world there is a mountain to climb, there are market, the company decided to apply some companies which are starting the its engineering expertise to producascent, with multiple commercial and ing its own e-bus. It’s a classic example governmental initiatives coming along. of cross-fertilisation, with Rafako bringHere is what they had to say. ing a truly out-of-the-box approach to the design. The design team presented their prototype at COP24 Katowice to considerable fanfare.

The e-Car-Sharing industry is also becoming more prominent. The energy company Tauron announced its arrival on the e-Car scene by providing 10 electric cars for the use of COP24 participants in Katowice. In February last year, Innogy Polska, a nationwide energy provider, released their e-CarSharing app, which allows users to rent electric cars by the minute. The company later announced that they hope to expand the service and network of charging stations should their market research bring positive results.

PKN Orlen, Poland’s state-controlled oil refiner, has followed its international counterparts by adding electric charging stations alongside their petrol bowsers. With a station already in operation on the Katowice-Warsaw highway, the company plans to open 150 extra charging stations by the end of 2019.

The big international providers have also arrived in Poland to take advantage of the new green wave. In June last year, the city of Warsaw received 61 hybrid electric buses from MAN Truck & Bus Polska, which is part of the mega Volkswagen Group. Five months later, Toyota began production of hybrid transaxles at its Walbrzych plant in Lower Silesia. Mercedes-Benz announced this January the opening

Poland fell under

‘Global brands have taken the initiative to transition into green energy’ Participants take part in the ple-

nary session during COP24 UN Climate Change Conference 2018 in Katowice, Poland.

Climate activists

attend the March for Climate in a protest against global warming in Katowice, Poland, as the COP24 UN Climate Change Conference takes place in the city.

photos: Lukasz Dejnarowicz (Forum), Maciej Jarzebinski (Forum), Kacper Pempel (Reuters), forumgwiazd.com.pl, Olren

24

Green shoots emerging

of a new battery pack factory in Jawor in West Poland, which is expected to create 300 jobs.

Companies go green

25

Grażyna Wolszczak sued

the State Treasury in 2018 for failing to deal with the smog problem and the court ruled in the actress's favour.

A number of other Polish celebrities have joined coalitions and actions to fight for better air quality.

A number of global brands operating in Poland have themselves taken the initiative to transition into green energy and technology. Apart from the future costsavings on offer, these companies have begun to factor in ecological considerations when choosing power providers.

A good example of this is the PepsiCo Group, which has chosen PGE Obrót’s special offer called ‘Naturalnie, że energia’ (Naturally, that’s energy). The special contract guarantees the supply of electricity sourced mainly from wind farms. The corporation is also planning to cut its greenhouse gas emissions by 20%. “According to the PepsiCo strategy ‘Performance with a purpose’, we are continuously seeking solutions that will allow us to significantly reduce our environmental impact and limit our carbon footprint”, said Michał Jaszczyk, PepsiCo Poland General Manager.

Energa, another energy operator based in Northern Poland, offers a similar green-energy package to its corporate clients, whereby participating clients are given a 100% guarantee that the electricity supplied is generated from renewable sources. IKEA is another global brand turning to ecological measures in Poland. Just a few years ago, the IKEA Group purchased its first wind farm in the country, the idea being to generate as much renewable energy as consumed by all IKEA stores, shopping centres, factories, distribution centres and offices. The same company also offers its Polish clients photovoltaic installations.

But it’s not just the private sector pressing ahead. The government has started several initiatives to develop and promote green energy. For example, the new national energy strategy Kraków applied for EU support to demands that the core of the nation’s develop its metropolitan heating sysenergy needs be fulfilled by renewa- tem and improve the thermal insulation ble energy sources, such as photovolta- in its public buildings, as well as variics and offshore wind farms. Initially, the ous other energy efficiency upgrades.

Energy Ministry had planned to gradu- These funds have been used to modally discontinue onshore wind farms. ernise more than 35 public buildings.

However, recent developments in the The city made the pledge to increase ministry have suggested a change the energy efficiency of over 90 public of tack, opening the way for the con- buildings by 25% within two years. struction of new onshore turbines.

There's still a lot to be done in the fight against smog; however, there Cities strike back is light at the end of the tunnel and Poland’s issues with smog are well it is lit by city dwellers themselves, who known. Year after year, a number of are standing up to fight for their right Polish cities rank among Europe’s to clean air. Actress Grażyna Wolszczak, most polluted. But local governments sued the State Treasury for not satisaround Poland have begun to fight factorily protecting citizens against polback. The Warsaw City Council allo- luted air. This year the court found in cated 300m zł to replace nearly 17,000 her favour. A precedent has been set outdated boilers by 2022. This initiative and the people of Poland are beginis further complemented by a 135m zł ning to voice their concerns – and their tree-planting campaign. The city of voices are only getting louder.

Economics & politics

Left: Photovoltaic

farm built by Energa Group on the border between Gdańsk and Przejazdowo. The power plant with over 6,000 panels and a total area of ​​nearly 10,000 sqm is able to meet the demand of about 720 average households.

Above: Presentation

of electric buses with the participation of, among others President of Katowice Marcin Krupa.

Below: PKN Orlen, Poland’s state-controlled oil refiner, has added electric charging stations alongside their petrol bowsers.

The company plans to open 150 charging stations by the end of 2019.

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Economics & politics

World of a difference

Syntoil Discarded tyres are a global issue so a start-

up created a safe and cost-effective method for processing rubber waste. By improving the thermal treatment, Syntoil developed recycling systems that use the continuous pyrolysis process and subject rubber granules to high temperatures in cylindrical reactors. These systems function continuously and do not allow poisonous gases and harmful dust to escape, unlike traditional reactors.

The road to an ecological revolution is long, but Polish companies are determined to reduce the carbon footprint one light bulb and tyre at a time.

by Monica Zielinski

Saule Technologies A team of 20 scientists from 10 countries developed versatile solar energy harvesting technology. As one of the first companies in the world working on the commercialisation of perovskites in the new generation of photovoltaic cells, Saule Technologies uses ink-jet printing to produce flexible, light-weight solar modules. Its application in the construction industry can lower energy costs and transform buildings into sustainable structures.

Airly

SEEDiA

Air pollution is one of the world’s largest environmental health risks. Airly monitors and informs people about air quality. With over 2,200 sensors installed and real-time data gathered at street level, it detects the main sources of pollution. The system is fully integrated – from equipment to software – and advanced analytics, forecast and comprehensive maps are available on the website and mobile app.

Low-battery and no Wi-Fi are #firstworld-

problems that SEEDiA aims to solve with its innovative solar-powered furniture. The company designs and produces intelligent, urban infrastructure with features such as USB mobile chargers, Internet hot-spots, and sensors which monitor smog, weather and usage.

Outdoor benches and info kiosks powered by renewable energy decrease the use of electricity and CO2 emissions in the atmosphere.

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Economics & politics

Bin-e An automatic waste-sorting device takes the guesswork out of recycling. Bin-e is a smart bin that segregates and compresses refuse to save space and decrease the frequency of waste removal. When an item is tossed into the bin, Bin-e identifies the type of waste using AI and image processing and automatically separates the materials. An IoT platform is used for waste management operations.

PRE Edward Biel

LUG Light Factory

In line with the push toward electromobility, PRE Edward Biel is the first Polish producer of electric car charging stations. Instead of plastic elements, the stations are solely made from ecological materials such as aluminium and hardened glass. The EVB stations are fitted with a GPS localiser, safety camera, Wi-Fi access point, and connection to the 112 emergency line.

Lighting in public spaces is essential but drains electricity. LUG aims to reduce energy consumption with LED and IoT technology to increase efficiency while lowering CO2 emissions. With remote management and diagnostics of lighting systems, energy consumption can be reduced by up to 70% compared to conventional light technology. LUG’s smart lighting solutions improve safety and comfort while making public spaces more attractive.

Górażdże Cement In partnership with Skanska, Górażdże Cement developed a concrete pavement which reduces air pollution at the Generation Park office complex in Warsaw. The pavement breaks down harmful NOx particles from car exhausts into neutral nitrogen compounds. This concrete is currently being tested and will be implemented at all new Skanska office projects in the CEE where air quality is poor due to smog.

Hi location on HigH street

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30 Economics & politics

Poland speaks: Attitudes on environmental issues 72% support abandoning harmful sources of energy

A majority of Poles perceive

climate change as a threat, according to a 2018 Polish Public Opinion poll

by CBOS. In less than 10 years, there has been a significant increase in support for the opinion that climate change is an urgent issue that requires immediate action.

50% think that the problem of climate change should be addressed, but remedial measures should be introduced gradually to reduce costs

source: CBOS.pl

54% perceive climate change as a threat

Prepare for impact A significant portion (38%) of respondents who do not negate the reality of climate change are already noticing its significant impact on people's lives. Over a quarter (28%) believe that its effects will be felt within several years at most, and another 14% think that it will be felt in the next 20-30 years. Only 10% of respondents think that climate change will have a significant impact on people's lives in Poland in the more distant future, and every twentieth (5%) is not sure whether its impact will be felt at all.

34% say that appropriate action must be taken immediately 29% believe that climate change is one of the greatest threats to modern civilisation

28% say the effects of climate change will be felt within several years

seeing is believing Three-quarters of respondents who are aware of climate change (75%) believe that it is primarily the result of human activity, and less than one fifth (18%) point to natural causes. We can see a clear trend: an increasing percentage of respondents see the causes of climate change in human activity. The growth of this view is slow but stable.

1% claim that climate change does not exist

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Economics & politics

Poland and Australia: Two unlikely allies in the quest for sustained economic growth

15563.97 km

On just about every level, Poland and Australia are poles apart, but somehow they share the same economic success story: 27 years of uninterrupted economic growth. What’s their secret?

7%

6%

5%

4%

3%

William Hastings Burke is an Austral-

ian writer based in Warsaw. In 2010, he brought the WWII-rescue story of Albert Göring to the world in his book ‘Thirty Four’ and the BBC documentary ‘Goering’s Last Secret’.

He has studied in the US and Australia, ultimately obtaining an Honours degree in Economics (Soc. Sc.) from the University of Sydney. He has lived in Poland since 2014, researching and writing, among other projects, his second WWII epic.

2%

1%

0%

-1%

Real GDP growth:

(y/y percent change) Poland: Australia:

-2%

(source: International Monetary Fund)

-3%

-4%

-5%

-6%

-7% 1990

2000

2010

2020

and one hemisphere separate Warsaw and Canberra.

Factor in environment, language, culture, sport, history and pierogi, and the divide is even larger. But there is one number that unites both countries, a figure no other national economy in the world has ever reached in the history of capitalism: 27.

For 27 years and counting, these seemingly disparate economies have been growing without registering two consecutive quarters of decline in a calendar year. They have both persevered through three decades of economic turbulence. Australia weathered the Asian Crisis in 1997, the Global Financial Crisis (GFC) in 2008 and the recent resources downturn, while Poland successfully negotiated its transition into a market economy in the 1990s, EU accession in 2004 and the 2008 crisis. The Polish economy has shown no signs of slowing down, with a growth rate of 5.1% registered for 2018, up 0.3% on the previous year.

Australia’s current growth trajectory might not be as stellar, but the Reserve Bank of Australia (RBA) still expects a figure of around 3% by the end of the fiscal year in June. This, of course, begs the multi-billion dollar question ...

What’s their secret?

It was the very question that came up on Poland Today’s inaugural PT Live discussion with Carlos E. Piñerúa, World Bank Country Manager for Poland and the Baltic States. “I mean, the whole momentum of growth is there,” he said, commenting on the current state of the Polish economy. “Unemployment is very low. Wages are growing very fast. In terms of policies, very much like in 2008. I think the policy framework in Poland is very strong. Very low deficit, very strong certain positions. So, all in all, at least in the short term to medium term, I think Poland is going to do well.”

Piñerúa then reinforced Poland’s outlook by returning to its solid past.

“In 2008, for example, the government was able to spend its way out of the recession because they hadn’t spent a lot of money before and they had the buffers, if you will. They could go ahead and spend more, expand monetary policy, let the exchange rate be more flexible …And I think there is a success story here to be told.” Although Piñerúa was specifically talking about Poland, he could well have been talking about the Australian economy, too.

In fact, according to the experts, both economies might be more similar than they first appear. To further explore this unlikely nexus, Poland Today called in the help of two Polish and Australian pundits with ties to both economies.

Andrzej Rzońca is a professor of economics at the Warsaw School of

Economics (SGH) and former member of the Monetary Policy Council of the National Bank of Poland (NBP), who travelled to Australia in 2016 on a research grant on behalf of the Australian Institute of Polish Affairs (AIPA), and Anthony Weymouth is the Senior Trade Commissioner for Central and South East Europe at the Australian Embassy in Warsaw.

Quitting while ahead

‘The general recipe to avoid a crisis is quite simple: a country has to avoid booms.

A crisis is most often a result of previous excesses.

Both Poland and Australia heeded this maxim’

“The general recipe to avoid a crisis is quite simple: a country has to avoid booms. A crisis is, most often, a result of previous excesses,” said Andrzej Rzońca. Both Poland and Australia heeded this maxim in the years leading up to the 2008 GFC. As expected, Poland’s accession into the EU in 2004 ushered in a flood of foreign capital, along with the inflationary pressures that inevitably follow such a large influx. In close cooperation, the government at the time and the NBP were quick to react by tightening both fis- Snapshot of economy cal and monetary policy respectively, on the eve of crisis: as well as instituting a regime of tight In September 2008, the official interest financial supervision. For example, to rates for Australia and Poland were 7% and 6% reduce exposure to international cur- respectively, allowing both central banks to engage in rapid and deep monetary loosenrency markets, a limit was placed on the ing. Australia’s general government gross debt issuance of home loans denominated was a miniscule 11.8% of GDP while Poland’s in foreign currencies (FX loans). The (46.30%) was also respectable, especially government had also managed to cut compared to the average rate of 77.8% for other advanced economies. general government debt from 55.5% in 2003 to 51.1% in 2007.

As a result, Rzońca said, “the credit up confidence. Meanwhile, after almost boom in Poland before the crisis was ten years of monetary tightening, the very short-lived. It started only in late RBA sat on the enviable cash rate of 2006 and was over in 2008 after the 7.25%, giving the central bank an ample Lehman collapse.” Rzońca also pointed amount of room to manoeuvre when out that these policies allowed the NBP the GFC hit. Within six months the RBA to fully utilise the floating exchange had cut the rate by 3%. rate to cushion the blow. “If the stock “Luck matters for economic perforof FX loans in Poland had been larger, mance. However, cautious policies are the floating exchange rate could have needed to take advantage of good luck,” acted not as a damper but as an ampli- said Rzońca. The GFC hit Australia fier of the shock.” Down in Australia, at a particularly auspicious time. The the government and the Reserve Bank country was three years into one of the of Australia (RBA) had taken perhaps biggest and longest resources booms an even stricter line to fiscal and mone- the world had ever seen, thanks largely tary policy. From Q2 1991 when it began to industrial revolutions taking place in to grow again to the GFC in 2008, the China, India and other Asian neighbours.

Australian economy had been booming By 2007, the boom was deep in the on the back of a programme of trade investment phase. At its peak, mining liberalisation and labour deregulation investment amounted to around 8.5% in the 1980s, as well as the beginnings of GDP, compared to 3.5% in the previof the resources boom. The (Prime ous boom during the 1970s.

This was not any old gold rush. This Minister) Howard government in 1996 capitalised on the vibrant conditions boom was driven by bulk commodito deliver one budget surplus after ties (iron ore, LNG, metallurgical and another and pay off public debt along thermal coal), essential resources that the way. General government debt fell the hungry economies of Asia could from 55.4% in 1996 to 28% in 2007, just not forgo. Hence demand was assured in time for the 2008 crisis. despite the ructions in international For this reason, the subsequent Rudd markets. Fortune had also arrived in government had a war-chest of funds to Poland at a timely hour. In 2007, the inject into the economy through infra- Polish government had passed a series structure investment and cash bonuses. of tax reforms with an implementation They were also in a position to guaran- date of 2009. Whether it was happentee deposits and bank bonds to shore stance or an act of great foresight is

up for debate, but there is no denying that the tax cuts provided just the right amount of fiscal stimulus at just the right time. On top of that, Rzońca added, “The stimulus was amplified by a large increase in government investment financed mostly by an inflow of EU funds.”

33

Economics & politics

Two giants on the doorstep “Poland is a remarkable story. It has successfully leveraged its location and size over the last few decades to position itself as the key player in Central Europe and one of the most important new players in the EU,” said Anthony Weymouth.

It certainly helps to be a member of a common market with a population of over 500 million consumers commanding a purchasing power of €25,000 each, not to mention neighbouring the fourth largest domestic economy in the world. And Poland takes, as Weymouth suggests, full advantage of this strategic location. Intra-EU trade represents 80% of Poland’s exports with Germany (27%) receiving the bulk. Poland also benefits from the 36 trade agreements that the EU has enacted with more than 60 countries. Meanwhile, Australia sits in a regional economy that is expected to account for 45% of the world’s GDP by 2022 – that’s more than two times more than in 1982. China and India alone are set to take up 30% of the worldwide pie. And guess who is Australia’s largest trading partner? China receives 30% of Australia’s exports, while Asia in total accounts for 66%.

“From my perspective, Poland’s key strength is its diversified economy.

No one sector dominates, and this protects the economy from downturns (like the GFC),” said Weymouth.

The Australian economy takes a similar shape, although not necessarily in geographic or industry terms.

Services might account for over 70% of Australia’s GDP, but the sector is broken up into 19 different segments, which are relatively evenly sized. For example, there is only a 6.8% difference in real gross value added (GVA) between the highest contributor (Financial and Insurance Services, 9.4%) and the lowest (Accommodation and Food Services, 2.6%). What’s more, two different economies (the mining industry and the rest) were effectively operating simultaneously in Australia when the GFC hit. Poland, on the other hand, is truly a nation of cities, as this Poland Today issue would have it. Out of the 923 cities and towns that make up country, 23 contain a population of more than 100,000 and 16 with more than 200,000. 55.8% of Poles work in services, 30.4% in manufacturing and 11.5% in agricultural, forestry and fishing.

This all makes for an extremely agile economy. by William Hastings Burke

Australia and Poland have both persevered through three decades of economic turbulence. Austalia survived: Asian Crisis (1997), Global Financial Crisis (2008), while Poland transitioned into a market economy (1990s), EU accession (2004) and the 2008 crisis.

34 PT Live: economics & Politics

All bison, no bull

Poland Today has gone live. Our media and communications organisation has entered new territory this year by adding live online broadcasts to our services.

Don't miss an

episode of #PTlive.

Follow Poland Today on Facebook, Twitter and LinkedIn for alerts and new content.

Broadcast on social media under the handle PT Live, Richard Stephens, Founder and Editor of Poland Today, is joined by a spectrum of influential guests to tackle major issues facing the country. “There’s a good reason why we came up with the slogan ‘all bison, no bull’,” says Richard. “We want to let people speak directly to our international audience. And on a more literal level, some people think our logo is a bull, when in fact it is – clearly – a Polish bison!”

In the first three broadcasts, PT Live

talked economics with the World Bank, discussed Poland’s labour shortage crisis with the Polish HR Forum and explored the potential for Polish companies to engage in the world of humanitarian missions with the Polish Ministry of Foreign Affairs.

There is a success story here to be told PT Live went

straight to the top for its first show and invited Carlos E. Piñerúa from the World Bank for his views on the current state of the Polish economy. He has spent the last two years working closely with different regions around the country, offering advice to all levels of government, from ministers to mayors. ”It has been a privilege to go around and see all of Poland: beautiful cities, beautiful history – everything you can imagine.”

Piñerúa says he has been particularly surprised and impressed by the entrepreneurial spirit so evident in Poland, which complements the country’s famous resilience. The same, he felt, could be said for the economy, which is entering its 28th year of continuous economic growth. “Global conditions are changing. They are changing relatively quickly… But I think Poland, certainly in the short term, is going to do well. I mean, the whole momentum of growth is there. Unemployment is very low, wages are growing very fast.

In terms of policies, it’s very much like in 2008. I think the policy framework in Poland is very strong.”

For similar reasons, Piñerúa believed that Poland’s fiscal and monetary framework is also in good shape to weather any future shocks. “Poland is prepared and it has the tools. Many countries don’t have the tools to face a crisis right now, even rather large countries. They don’t have the policy instruments to deal with the problems that may come their way. What Poland does well is that it has a vision of what it wants to do with its country.” The discussion moved on to two topics that have taken up a lot of airtime in Poland of late: credit ratings and the family-support programme ‘500+.’

Introduced in 2016 to promote population growth, the programme provides Polish families with a monthly payment of 500 zł (around €113) for their second and each subsequent child (and is likely to expand to include the first child as well). Both issues seemed to be entwined when the credit rating agency Standard & Poor's (S&P) reduced Poland’s rating from A- to BBB+ in 2016.

Piñerúa says S&P had justifiable con-

cerns at the time since it was only the start of the government’s phase of fiscal loosening. “But I think the government has done very well in managing those extra costs by tightening taxation, for example. That is, collecting the tax that should be collected. So there hasn’t been any impact on the fiscal position of the country. It validated the government’s position that they could finance these additional expenditures without generating any risk for the budget.”

But he still has some reservations about its effect on female participation in the workforce. His comments echo new research from the Institute for Structural Research (IBS) that found in 2018 that female participation would have been 2.5-3% higher by mid-2017 had the programme never been implemented. Though cautioning that it’s still too early to make any substantive assessments, Piñerúa says there are key interrelated questions that need to be addressed. “Is it creating incentives for women, in particular, to step out of the labour market…Particularly when you see the issues of early retirement and the demographics of the country.

The problem is not so much whether women step out of the labour market, but whether they come back. That’s the hardest thing to measure right now.”

Piñerúa returned to the same demographic questions when the issue of immigration and the skills gap came up. “I think the important thing to recognise is that [immigration] is a reality.

Poland doesn’t only need additional people now, but in the medium term it will need more people because it’s ageing very quickly.” Piñerúa stressed that a holistic approach is required and any response needs to be carried out in an orderly way. “What are the skills that Poland needs? From where are you going to get them?”

One of Poland’s biggest issues, Piñerúa says, has nothing to do with any economic indicator or sovereign risk issue. The country is essentially facing a PR crisis, illustrated by a 2018 Harris Poll carried out in the US which showed that 64% of respondents believed Poland was still an agrarian-based economy.

“I think Poland has been too humble about its own experience. I think the country has to go out and tell the world why it is so successful. There is a success story here to be told.” Piñerúa concluded by sharing an anecdote from when he was preparing to take his post in Poland. “When I told someone that I was going to Poland, she said ‘poor you’. Poor me? This is one of the greatest economic stories in the world.”

35

economics & Politics

‘Poor me? This is one of the greatest economic stories in the world’ world bank Carlos E. Piñerúa is World Bank Country

Manager for Poland and the Baltic States, overseeing operations in Poland, Lithuania, Latvia and Estonia. Prior to this, he was the Country Manager for Croatia and Slovenia, and earlier held the position of Country Coordinator for Private and Financial Sector Development Issues in both Indonesia and Turkey. He received his B.A. and his M.A. in Economics from Florida International University and is a candidate PhD in Economics at Indiana University, where he was a Fulbright scholar.

Mr Piñerúa is based in Warsaw.

36

They are coming back as senior managers

economics & Politics

‘A good forklift driver should be proud that he is really good in his field.

Now we are coming back to vocational education, but it will be very difficult to rebuild people’s mindsets’

adecco poland Anna Wicha, General Director of Adecco Poland and President of the Board at Polish HR Forum, started with Adecco at the same time as the company was established in Poland, becoming General Director in 2007. In 2014 strategic responsibility for Romania came under her responsibility as well. She is also President of the Polish HR Forum and a member of the board of the World Employment Confederation.

‘The Race for Global Talent: Can Poland Compete?’ was the next big issue under the microscope on PT Live. Anna Wicha, General Director of Adecco Poland and President of the Board at Polish HR Forum, was up for the challenge. The discussion first addressed the elephant in the room, which is Poland’s lacklustre performance in attracting foreign talent. In fact, for the second year in a row, Poland has fallen down the rankings in the Global Talent Competitiveness Index (GTCI), which measures how countries and cities attract, grow and retain talent. Overall, Poland is currently 42nd – only one better than Azerbaijan.

This is a curious phenomenon given the demand side of the Polish economy. Economic growth was registered at 5.1% for 2018 and wages are rising as the economy approaches near full employment. Poland is hungry for talent and it would seem it has the money to pay for it. Wicha agreed but offered one caveat. "We have a severe shortage of candidates and there isn’t one programme or activity in the pipeline that would safeguard us against demographic changes in the future.”

A lot is said about Poland’s burgeoning knowledge-based economy, but what Poland really needs now, Wicha argued, are people to fill the essential yet unglamorous positions in manufacturing and construction, such as machine operators, forklift drivers and mechanics. Even well-equipped sectors like IT could grow larger with extra talent at their disposal. Wicha says that these sectors still had the capacity to incorporate “hundreds of thousands” of extra workers.

On the other hand, Wicha emphasised that Poland does well in other areas in the index, especially in preparing its ‘human capital’ before entering the labour market. “Our formal education system was ranked 27th out of 120 countries. We can also be proud that we are able to help women develop, which is not the case everywhere in the world.” The irony is that Poland’s high-quality education system may be one of the key drivers behind the brain drain and explain why so many Poles have been recruited abroad. The country seems to be a victim of its own success. “They are so self-confident that they feel they can find a job almost anywhere,” she said, adding: “In some cases, they are coming back as advanced managers and they are contributing to the growth of Poland.”

The discussion returned to the main theme of the broadcast: the race for global talent. In this area, Wicha says, a collection of individual cities are leading the way in recruiting foreign talent.

She singled out Gdańsk, Wrocław and Kraków. “Gdańsk has a department that records the number of foreign workers in their city and monitors their conditions: how they are accommodated and how they are treated in the workplace.

In terms of tax and the legal side, they have a welfare officer to help them in case their employer fails to do so. This is a big help, especially when you are alone. You have a number to call to find help.” Essentially, the city council wants to tell prospective immigrants that a rewarding job and life not only awaits them in Gdańsk, but they will be well cared for when they arrive. And the city believes that the best people to deliver this message are those already on the ground. But Wicha says that it’s not the same case on the state level. The country lacks a cohesive national labour recruitment and management strategy.

"We have a lot of people who come to Poland without specific competencies or with competencies which are not really needed. Switzerland, which is ranked no. 1 in the index, manages this issue in a clever way. They are open to foreigners but only target the ones they really need. This is connected to the vision of the country, business objectives and the country’s growth profile.” What can Poland do to improve its overall position? Wicha offered education as an area where Poland can make effective and achievable changes. Particularly, the country needs to address the age-old debate in Poland of rote learning versus analytical development. "We are teaching people how to remember dates and people, but we're not giving them the chance to use this knowledge. We are not teaching people soft skills, about our mentality, our ability to change, what we're good at.”

But she warns that Poland should be careful not to throw out the baby with the bath water. There are some elements of the old that should be maintained or in fact, reinstated, starting with pride in one’s vocation. “A very good forklift driver, for example, should be proud that he is really good in his field…We produce millions of students and we are not able to use them in a proper way later. Now we are coming back to vocational education, but it will be very difficult to rebuild the mindset of the people: that if you are very good as a painter, forklift driver or mechanic, you can be proud and your job is guaranteed."

‘Procurement officers in big NGOs are looking for new solutions and proposals. There is always room for business to come forward with ideas.’

Opportunities for responsible business at Humanitarian Expo On 11-13 June the Ministry of Foreign Affairs (MSZ) is organising the first Warsaw Humanitarian Expo, an international event that will bring together global decision-makers in the world of humanitarian and development assistance, as well as producers and service providers who engage – or could potentially take part – in humanitarian projects around the world. The aim of the trade fair, co-organised with the National Chamber of Commerce (Krajowa Izba Gospodarcza) and uniform services provider Lubawa SA, and which takes place at PTAK Warsaw Expo, is to help create a better understanding of the business aspect of humanitarian and development assistance, as well as highlight the numerous opportunities open to a wide variety of companies.

“The event is made up of a number of elements,” says Ambassador Ponikiewski. “There’s a regular fair for companies which can present their merchandise. It’s open to companies from anywhere, especially from the wider region. It’s an event with international scope, not only for Polish companies. The second component is the conference, with many very interesting and highlevel people. One confirmed speaker is Mark Lowcock, Under-SecretaryGeneral for Humanitarian Affairs and Emergency Relief Coordinator, and a guru on this subject.”

The third component, says the Ambassador, is the ‘carrot for business’ part, to answer the broad question of why businesses would want to get involved in humanitarian affairs. “We have to tell companies what the opportunities are for their businesses in this massive sector,” he adds. “Of course,

there are certain standards which businesses have to operate under – they have to operate responsibly. This is the stick part. It really is a huge market – and a very secure one too, as you’re dealing with international bodies like the UN, the EU and the Red Cross.

Unfortunately, Polish companies are involved in only a very small way. We have tried to understand why this is the case. One element is certainly the cultural barrier, in that the tenders and procedures have to be done in English and there can be no mistakes. Companies have to invest the time and they have to invest in people.”

A significant part of the event is the Warsaw Procurement Forum, in which around 30 procurement agents representing global organisations will be involved, including from the UN, EU, NATO and the International Red Cross.

“These experts will discuss in a practical way how companies can participate in the projects,” says the Ambassador.

These bodies, he says, are keen to find new solutions to their needs.

“Procurement officers in big NGOs, UN agencies or other institutions which provide aid are looking for new solutions and are open to new proposals.

They are constantly interested in being provided with new solutions. There is always room for business to come forward with ideas.” This need, believes the Ambassador, opens the door to an area in which Poland is increasingly active: the startup industry. “They can really get involved as they have innovative, and often easy, solutions.”

ministry of foreign affairs Ambassador Wojciech Ponikiewski is

deputy head of the Department for Economic Cooperation at the Ministry of Foreign Affairs.

His career with the Ministry has seen him take on a variety of roles, including as Poland’s chief negotiator of the Kyoto Protocol (signed in December 1997). In 1998 he became director of the Department for the United Nations Economic and Social Affairs. In 2001 he was appointed as Minister Plenipotentiary, Head of the Political Section at the Embassy of the Republic of Poland in Rome. On his return to Warsaw, he served consecutively as head of two departments: for Foreign Economic Policy and for the Americas. In 2010 he was appointed as Ambassador to Italy and Malta. He then headed the Department for the UN and Human Rights.

At present, he serves as deputy head of the Department for Economic Cooperation.

37

economics & Politics

PT Live broadcasts are hosted by

Richard Stephens, Founder & Editor of Poland Today. For more information go to poland-today.pl/ pt-live

38

39

40 A nation leader

of cities

Poland's thriving network of urban centres is the driving force behind its dynamic economy Sources: Statistics

Poland has several large cities with

Poland, Eurostat (according to the last available data)

varying histories, but all offer a wide array of business opportunities and cultural activities.

7.

1. Warsaw City population: 1,764,000

(3.1m people in the whole agglomeration) Unemployment rate: 1.5% Average salary: 6,059 zł / €1,460 Institutions of tertiary education: 70 Students in tertiary education: 230,000

6.

1.

4.

5.

3.

60.1% of Poles live within administrative boundaries of towns and cities.

That makes an urban population of 23.1 million people.

2.

Nation of Cities

Poland's capital city, and its most important business and economic centre. Almost entirely destroyed during WWII and rebuilt over the second half of the 20th century.

2. kraków

3. Katowice

4. Łódź

City population: 767,000

City population: 296,000

City population: 690,000

(1.4m people in the whole agglomeration) Unemployment rate: 2.4% Average salary: 4,966 zł/€1,196 Institutions of tertiary education: 21 Students in tertiary education: 143,000

(2.5m people in the whole Silesia conurbation) Unemployment rate: 1.6% Average salary: 5,290 zł/€1,274 Institutions of tertiary education: 11 Students in tertiary education: 57,000

(0.9 m people in the whole agglomeration)

Unemployment rate: 5.5% Average salary: 4,462 zł/€1,075 Institutions of tertiary education: 22 Students in tertiary education: 72,000

Capital of Poland from 1038 to 1569. Considered the cultural capital of Poland, it is famous for its historic sites, including Wawel Castle.

Poland's southern industrial hub, historically known for coal mining. Katowice is the main city of the Silesia conurbation which consist of 14 cities of the region.

Located in central Poland. Mostly known for textile production in the 19th century. Now famous for its film school and its 150 years old industrial architecture.

5. Wrocław

6. Poznań

7. Gdańsk

City population: 638,000

City population: 538,000

City population: 464,000

(0.8m people in the whole agglomeration) Unemployment rate: 1.8% Average salary: 5,070 zł/€1,221 Institutions of tertiary education: 25 Students in tertiary education: 114,000 Located in south-western Poland, at various times the city has been part of Poland, Bohemia, the Austrian Empire, Prussia, and Germany.

(1m people in the whole agglomeration) Unemployment rate: 1.2% Average salary: 5,062 zł/€1,219 Institutions of tertiary education: 24 Students in tertiary education: 110,000 Located in west-central Poland, it lies close to the country's first capital. Poland's first rulers are buried there.

(1.1 m people in the whole Tri-City conurbation)

Unemployment rate: 2.6% Average salary: 5,312 zł/€1,280 Institutions of tertiary education: 13 Students in tertiary education: 67,000

Home of Poland's shipbuilding industry and the birthplace of the Solidarność movement. It is also the main city of the Tri-City conurbation.

41 leader

Poland's biggest urban areas:

Poland boasts 5 metropolitan centres with populations of 1 million people or above.

- Warsaw agglomeration: (3.1 m pop.)

- Silesia conurbation: (2.5 m) - Cracow agglomeration (1.4 m) - Tri-City conurbation (1.1 m) - Poznań agglomeration (1 m) - Łódź agglomeration (0.9 m) - Wrocław agglomeration (0.8 m) - Toruń/Bydgoszcz agglomeration (0.8 m)

16 cities have a population bigger than 200,000 people: - Warsaw (1.76 m pop.)

- Kraków (0.76 m) - Łódź (0.69 m) - Wrocław (0.63 m) - Poznań (0.54 m) - Gdańsk (0.46 m) - Szczecin (0.40 m) - Bydgoszcz (0.35 m) - Lublin (0.34 m) - Katowice (0.29 m) - Białystok (0.29 m) - Gdynia (0.24 m) - Częstochowa (0.22 m) - Radom (0.21 m) - Sosnowiec (0.20 m) - Toruń (0.20 m) (population in administrative boundaries)

Polish cities by size of population:

In total there are 923 towns and cities in the country.

339 towns have a

population smaller than 5,000.

218 towns have a population bigger than 20,000.

584 towns have a

84 towns have a

405 towns have a

39 towns have a population bigger than 100,000.

population bigger than 5,000.

population bigger than 10,000.

population bigger than 50,000.

(population in administrative boundaries)

> 1,000 thousand 700-1,000 thousand 500-700 thousand 400-500 thousand 300-400 thousand 200-300 thousand 150-200 thousand 100-150 thousand 50-100 thousand < 50 thousand

Poland’s population density:

123 people / km2

Poland is unique in its region in that the country’s population is not mostly concentrated around a single city.

42 Spirits of Leader

diversity

In the economic success story that is modern Poland, its many cities are the country's lifeblood - and they are spreading a message of openness and tolerance

Richard Stephens

is editor of Poland To­ day, which he founded in 2012 to help bring Poland to the world and the world to Poland. He also runs and moderates conferences on a variety of topics in Poland and abroad. He has a degree in Theology & Religious Studies from Bristol University in England

Poland is generally regarded as having had more than its fair share of bad luck down the centuries, the last 30 years notwithstanding. In at least one significant respect, however, the country is naturally fortuitous: it has several large cities spread fairly evenly around the country. “Polish space – if I can put it like that – is one of the best socio-economic spaces in Europe,” says Grzegorz Gorzelak, Professor of Regional and Local Government at the University of Warsaw. “There are many large and medium-sized cities – it’s a positive historical heritage." (The vagaries of Poland’s past are exemplified in his next comment: “We lost Vilnius and Lwów, of course, but we gained Szczecin, Poznań and Wrocław,” referring to the redrawing of the national borders at the end of WWII.) No one city dominates, says the professor, in the way that Budapest and Prague dominate in Hungary and the Czech Republic. Warsaw has the 3rd lowest population share for a capital city in the EU relative to the national population after Berlin and Rome, at 8.7% of the population. In contrast, Prague has 24.2% while Budapest has 30%. In fact, the Warsaw metropolitan area has a population, at 3.1m, not much bigger than the Katowice conurbation of about 2.5m.

This network of large urban centres has been the backbone of the country’s economic transformation in the last three decades, says Professor Witold Orłowski, Chief Economic Advisor to international consultancy PwC: “Twelve Polish metropolitan areas are inhabited by 42% of Poland’s population, produce around 60% of GDP, host 89 out of 100 best Polish academic institutions, and are where roughly 75% of Poles with higher education live.” The result has been a renaissance of city life in Poland since the end of communism and especially since accession to the EU in 2004, arguably without parallel anywhere else in the world – a rebirth which has drawn businesses, visitors and students from around the globe. Whereas even 10 or so years ago it was relatively rare to hear a foreign language spoken in streets or restaurants in Poland, even in large cities such as Warsaw, Poznań or Wrocław, it’s now a common part of life. “I was sitting in a cafe in Rzeszów last week,” said one Polish businessman recently, “and I heard Spanish, French and German being spoken. I was thinking ‘what are they doing in Rzeszów in the winter?’” Comments such as this are regularly shared amongst Poles, illustrating that it is still a new phenomenon which causes surprise, tinged even with an element of disbelief, such is the speed at which this has happened.

Nation of Cities

Faith in city authorities Cities are successful in another key way: trust. City and municipal authorities are trusted more than any other institution in Poland, says Professor Gorzelak, a statement backed up by figures from social opinion research centre CBOS, whose 2018 survey found that 65% of respondents trust their local authority, 5 points ahead of the second most trusted institution, the Presidency, at 60%. In contrast, 53% trust the EU, 44% trust the government and 34% trust Parliament.

“In the same way that Poland is lucky with its cities, it’s also lucky with its mayors,” says Professor Gorzelak. Wiktor Doktor, President of Pro Progressio, an organisation which supports the growth of entrepreneurship in Poland, particularly in the modern business services sector, agrees. “We have wonderful city mayors,” he says. “My favourites are Hanna Zdanowska of Łódź and Krzysztof Matyjaszczyk of Częstochowa. The mayors are usually supported by excellent teams from the investor support offices which promote the cities and attract investors.” The success of these teams over the last few years has contributed to a business boom in the cities which shows no signs of abating: “In Q1 2018, a total of 1,236 (Polish and foreign) BPO, SSC, IT and R&D services centres were operating in Poland, employing a total of 279,000 people,” states the latest annual report by ABSL, an association of business services leaders based in Poland, entitled ‘Business services sector in Poland 2018.’ “Of the 831

On Gdańsk’s doorstep is Gdynia, and its proximity to its companies with their own services centres, 10% (83 investors) were Fortune Global 500 companies in 2017. In the period neighbour is something the city is not shy about emphasisfrom the beginning of Q1 2017 to the end of Q1 2018, 91 new ing. “We offer all the pleasures of living in a very big city services centres began their operations, of which 20 were while remaining a compact city that is extremely comfortable launched in 2018. As every year, foreign centres dominated to live, walk or spend leisure and holiday time in,” says Mayor the new investment category (86%). The share of the three Wojciech Szczurek. Ambition is a trait they unselfconsciously largest business services locations: Kraków, Warsaw and share with their larger neighbour. “We are a mid-sized city Wrocław (Tier 1 cities in terms of employment in the sec- but our ambition is like that of a big city,” he states, adding tor and its maturity) in the number of new centres was 40%, that 90% of Gdynia citizens are happy with their quality of life much like the share of Tier 2 locations (Tri-City, Katowice – the highest figure in the country.

Agglomeration, Łódź, Poznań). Other new investments (20%) were placed in Tier 3 cities (Bydgoszcz, Lublin, Rzeszów, Post-industrial transformation Szczecin) and others (Tier 4).”

Two cities which have transformed themselves over the last decade, and which share a strong post-industrial heritBastions of inclusivity age, are Katowice and Łódź. Katowice is the capital of one This influx of international companies, complemented by of the largest and most dynamically-developing agglomeraa growth in the strength and confidence of domestic Polish tions in Europe. Its aspirations are exemplified by its modand local businesses, is supporting not only the local econo- ern International Congress Centre, the largest in the country, mies of the cities in the form of increased demand for things which regularly plays host to major international events, most such as restaurants and private schools, but is also contribut- recently COP 24. Katowice is also proud of its new cultural ing to flourishing cultural and arts scenes. With quality of life attractions, the Polish National Radio Symphony Orchestra increasingly a major factor in attracting businesses, skilled concert hall and the Silesian Museum, which, like the congress employees and university students, the importance of ‘livabil- centre, were built on former industrial land. “Together, these ity’ is an important element not lost on investments form the largest cultural city authorities. Added to the mix is the zone in Poland. They have a very signifrise in influence of local voices, individuicant impact on building the Katowice brand,” says Mayor Marcin Krupa. ally and through citizens’ groups. “Our Łódź points to the fact that several vision (for the development of the city) was inspired by the citizens of Wrocław,” major office and mixed-use developsays Mayor Jacek Sutryk. “In 2016 we ers have recently invested as evidence of the potential in the city, developers asked them what priorities the city should have over the next 10 years such as Ghelamco, Echo Investment, HB and the results were as follows: a proReavis, Skanska and MMG. “Commercial ecological policy, including better air developers believe in Łódź because they see that we consistently impleprotection and increased green areas, revitalisation of degraded areas of the ment our growth strategy to make Łódź city, developing public transport and supporting local entre- a beautiful city and a great place to live in,” says Mayor Hanna preneurship.” Wrocław, says Mayor Sutryk, is a unique city: Zdanowska. One of those companies, Echo Investment, has “Here everyone is from somewhere else. Residents who set- demonstrated its faith in the future not only of Łódź – where tled in Wrocław after WWII had to build a city from scratch. it has just announced a major new revitalisation on the site Not only the buildings but also its identity. The wisdom of of the 8-hectare site of the former factory of 19th century industrialist and textile manufacturer Karol Scheibler – but Wrocław results from these difficult experiments.”

A spirit of tolerance and diversity is something that most of several Polish cities, committing to the development cities openly encourage and espouse. “We will continue of over 250,000 sqm of office space in Warsaw, Wrocław to focus on openness,” says the mayor of Poznań, Jacek and Kraków – having already developed a significant amount Jaśkowiak. “Poznań must be friendly and tolerant – it must of office and retail space in Katowice. “I think that in the be a city for everyone, regardless of gender, origin, colour, larger cities, broadly speaking, it’s the expansion of internareligion or sexual orientation.” With Polish cities being so tional companies driving demand, and in the smaller cities, forward-thinking and open, and with there being so many it’s Polish companies,” says Rafał Mazurczak, a board memof them, it raises the question of why the country as a whole ber of the company responsible for the office department. has tilted in a more conservative direction of late. This, says “Our recent leasing transactions have shown big international Professor Orłowski, is partly down to population spread: brands wanting space for 1000 desks or more.”

The Cavatina Group is another developer committing to “It’s normal that urban populations are more liberal-minded, entrepreneurial, progressive and open to the world than rural the future of Polish cities. The company will deliver 75,000 ones,” he says, “with obvious results for political preferences. sqm of office space to the Warsaw, Kraków and Wrocław Poland is different from the majority of Western countries markets in 2019 and launch new multi-functional projects in that rural areas contain 40% of the population, in contrast in Katowice, Bielsko-Białą and Gdańsk totalling over 150,000 to The Czech Republic with 26%, Germany with 23%, France sqm. By 2022 they expect to deliver around half a million sqm. with 19% and the USA and UK with 17%. Therefore, the politiIt goes without saying that not everything is perfect cal impact is stronger in Poland”. This spirit of openness and for Polish cities. Some are doing better than others. Issues tolerance is most poignant in Gdańsk, which is still reeling such as depopulation and suburbanisation are a problem from the senseless murder of its mayor, Paweł Adamowicz. for many. The increasing strain on urban transportation sysThe new mayor, Aleksandra Dulkiewicz, reinforces the city’s tems is another. Other positives also have their downsides. values with a mix of passion and defiance – but also of burn- The improbably low urban unemployment rates mean there ing ambition: “We stand for an open Gdańsk. A city that looks is a lack of qualified talent – an issue facing companies large and after everyone, where everyone – from a child to a senior small, international and domestic, on a daily basis. However, citizen – feels good. It is not only about the social aspect, but with the government’s messaging to the outside world quesalso about investments that serve everyone. Under Paweł tionable at best, it’s true to say that most cities in Poland Adamowicz we talked about the city of our dreams – a city are playing an outsized role in projecting an image of the that will move from the first league to the champions league country that is modern, vibrant, open and welcoming to all. of European cities. This is the dream and the goal we pursue.”

by Richard Stephens

‘We are a mid-sized city but our ambition is like that of a big city’

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There are a total of 1,236 BPO, SSC,

IT and R&D business services centres spread across cities and towns in Poland, of which 840 are foreign (68%). From the beginning of Q1 2017 to the end of Q1 2018, 91 new services centres began operations.

(Source: ABSL)

44 cities push back leader

As politicians gear up for another crucial election year, all eyes are on urban voters.

Since the Law and Justice (PiS) party

Annabelle Chapman is a Warsaw-

Nation of Cities

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.

came to power in 2015, Poland has moved in a rightward direction.

The party has presented itself as a defender of traditional values and a Europe of nation states while declining to take in refugees from the Middle East as part of the EU’s relocation scheme. In the meantime, it has tightened its grip on institutions from the judiciary to the public media. Yet below this monolithic surface, cities have been pushing back, becoming what Warsaw’s new mayor Rafał Trzaskowski has described as “islands of freedom.” With elections around the corner, these cities will become important focal points for the centrist opposition in the months ahead.

Unlike countries such as Hungary, Poland has a large number of important cities spread across its territory, from Szczecin, Poznań, Wrocław and the Katowice agglomeration in the west, to Białystok and Lublin in the east. With their own history, these cities have increasingly cultivated their own sense of identity that is at once Polish and distinct – for example, Gdańsk as a port city open to the world or Wrocław as “the meeting place." Economically dynamic and relatively affluent, these cities draw people to study and work. Unsurprisingly, the biggest cities have the highest percentage of high earners, whereas rural areas have the lowest. When it comes to poverty, these proportions are reversed. Money aside, there are differences in lifestyle and worldview, which affect how people vote. In addition to the often-cited split between eastern and western Poland (the former tends to vote PiS, the latter PO), the urban-rural and city-small town dimension matters too.

This was highlighted by Poland’s municipal elections last autumn, which showed the limits of PiS’s appeal. This pushback was clearly visible in Warsaw, where Rafał Trzaskowski of the centrist Civic Platform (PO) party defeated PiS’s candidate Patryk Jaki, a 33-year-old deputy minister of justice, in the first round with over 56% of the vote, compared to Jaki’s 28%. Warsaw had already had a PO mayor since 2006. Still, the swiftness of Trzaskowski’s victory was surprising: most observers had expected that he would need a second round to beat Jaki. His win reflects the strong level of mobilisation among liberal urban voters; in Warsaw, the voter turnout was almost 67%, up from 47% in the previous local elections in 2014, indicating that 250,000 more people voted this time. More generally, PiS failed to win over urban Poles. In almost all the 107 cities in Poland where the mayor is known as the 'president,' the mayoral election was won by the independent or opposition candidate, in some cases in the first round, like in Warsaw.

PiS mayors were elected in just four cities: Chełm, Otwock, Stalowa Wola and Zamość. The largest of these, Stalowa Wola, in south-eastern Poland, has around 73,000 inhabitants; hardly a metropolis.

In Poland’s polarised political landscape, liberal mayors have become counterweights to the PiS government. Though their jurisdiction is limited, they have the power to influence the political debate by speaking up about issues shunned

by the government. A key example is Gdańsk’s long-serving mayor Paweł Adamowicz, who died in January after being stabbed at a charity event. (The attacker’s exact motives are unclear). Prior to his death, Adamowicz, who was reelected mayor of Gdańsk in autumn 2018 as an independent, was known for standing up to PiS’s anti-immigrant stance.

In 2017, he was one of a dozen mayors to sign a declaration on the “friendly admission of migrants,” for which he was criticised in far-right circles.

Solving social issues Another area where mayors have pushed back is on women’s and gay rights, amid PiS’s emphasis on the traditional family. In Poznań, Jacek Jaśkowiak, who was re-elected for a second term last year, opened a 24-hour gynaecological point where women can get a free check-up and seek advice on reproductive health and contraception. Since it opened in October 2018, it has received over a thousand visits. Meanwhile, Trzaskowski is increasing subsidies for IVF treatment in Warsaw (PiS suspended them nationally after coming to power). In February, he signed an “LGBT+ declaration” that seeks to foster tolerance and protect sexual minorities against violence and discrimination. More broadly, Polish cities have become places to try out new policies. One such example is the “network of progressive cities” formed by a dozen cities and towns. These include smaller towns like Wadowice and Sejny, a far cry from Warsaw and Wrocław. Yet in recent years, they have cooperated on issues from increasing participation to combating air pollution, reflecting a desire to look beyond national-level solutions and implement solutions at the municipal level.

With Poland in a crucial election year, parties’ ability to mobilise voters in cities will have implications for the country’s political trajectory in the years ahead. This mobilisation will be particularly important in the European Parliament elections in May, which are widely seen as a forerunner of Poland’s parliamentary elections this autumn. In the previous European elections in 2014, turnout was highest in Polish cities with over 500,000 inhabitants (33.6%) and lowest in villages 18.6%, which tends to benefit the opposition.

A new force to watch is the new left-wing Wiosna (Spring) party recently launched by Robert Biedroń, himself a former mayor, which will make its political debut in the European elections. As the mayor of Słupsk from 2014 to 2018, Biedroń became known for his progressive policies, with an emphasis on transparency, participation and environmental awareness.

Since its launch in February, early polls have his party in third place, behind PiS and the PO-led European Coalition.

As Poles head to the polls this year, PO and its allies will seek to capitalise on its advantage over PiS in the cities, drawing on the popularity of mayors like Trzaskowski in Warsaw and the legacy left by Adamowicz in Gdańsk.

Yet over-focusing on Poland’s cities, while ignoring the needs of voters in small towns and villages, could ultimately play into PiS’s hands. by Annabelle Chapman

‘Liberal mayors have become counterweights to the PiS government’

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In the 2018 local elections, rural

photo: Michal Dyjuk (Forum)

areas and smaller towns showed strong support for the ruling party while big cities stayed with the opposition.

This was the highest nationwide turnout in the history of local elections in Poland.

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a city for all

The new mayor of Warsaw, Rafał Trzaskowski, shares his plans for Poland’s capital and what he hopes to achieve during his term.

What is your vision for the city of Warsaw?

I set out my vision for Warsaw last year, at the very beginning of the electoral campaign. ‘Warsaw for all’ – that was the title of my political manifesto.

It is three words long, but it reflects what I aim to do. I want to transform Warsaw into a city that helps and protects all its citizens, regardless of their age, occupation and origin. I want to make sure that Warsaw becomes a city that provides a better quality of life for everyone. For many years, Warsaw was focused on building and improving city infrastructure, and rightly so: we desperately needed new metro lines, trams, new streets and water-treatment plants.

Now, with so many crucial investments completed – thanks to my predecessor Hanna Gronkiewicz-Waltz’s remarkable achievements – it is time to add a new accent. We need to focus on better schools, free access to nurseries and kindergartens, air quality, tailored assistance to the elderly and better health services. I’m not saying I’ll stop infrastructural investments – there will be many new projects, including very substantial ones like the new metro and tram lines. But the quality of everyday life will be my top priority.

When foreigners talk about Warsaw, what do you want them to say?

I want them to say: ‘Wow, it’s such a vibrant, dynamic and welcoming city.'

I hope they can see how Warsaw has changed over the last decade. I’ll be satisfied when they notice, bit by bit, that Warsaw is becoming a smart city, digitalised and data-driven, endeavouring to be a regional innovation leader.

photos: Darek Golik (Forum), Prokreacja.com

What makes Warsaw unique – how is it different from other capital cities around the world?

First, it is the people who make Warsaw unique. They have always been the essence of the city. Second, it is the city’s painful history. Few other European capitals went through similar experiences. It is easy to forget about the past when looking at the gleaming skyscrapers in the centre of Warsaw, state-of-the-art metro stations, revitalised parks or the picturesque Old Town.

Yet our past is there, invisibly shaping the city. It was almost entirely razed to the ground during World War II. The Old Town was nothing but a sea of rubble. Then, the dark decades of communism came, imposing monolithic structures of social realism architecture.

The Palace of Science and Culture – now considered to be one of the most recognised symbols of Warsaw – is one of them. It was Stalin’s gift to communist Poland and now it is home to the democratically elected Council of Warsaw.

I appreciate the symbolism.

I will focus on making everyday life in Warsaw better, for all citizens, in each and every district of the city.

I want public education in Warsaw to be on par with the education offered

by Stockholm; public transportation as good as in Paris, quality of housing comparable to Vienna, cultural life as abundant as in London. I will make every effort possible to improve the quality of air and to make Warsaw a sustainable city, as much as a smart city.

What are the major challenges facing you as Mayor, and facing Warsaw as a city?

The list is long. Like all big cities in Europe, Warsaw faces a similar challenge, from adapting to climate change to the problem of ageing and the efficient inclusion of immigrants. Warsaw is home to thousands of Ukrainians. They are now a part of the social picture, they work hard and pay their dues, so I will do everything I can to make them feel at home. Every district has its own problems which we need to solve urgently.

For Ursynów, where I live, the lack of schools and public kindergartens is the most important; for Białołęka and Wilanów, the fastest-growing districts of Warsaw, struggle with inadequate transportation systems. Praga Południe and Północ, the two districts on the right bank of the Vistula River, need further revitalisation and incentives for business creation.

‘We should build on people's dynamism.

The citizens of Warsaw are well educated, young, hardworking, ambitious. Warsaw is a city-magnet attracting the best and the brightest’

Do you see other Polish cities as competitors in terms of attracting investment, business and skilled talent to Warsaw, or as your partners in attracting all that to Poland?

I do (see other Polish cities as competitors). The competition is fierce, other mayors strive to attract investment too. As much as I like them, we do compete. Having said that, Warsaw has some obvious advantages. Simply said, we are not only the economic engine of the country, generating 10% of Poland’s GDP, but also a comfortable place to live too. 40% of Warsaw’s area

What would you like to see from commercial real estate developers building office buildings in Warsaw?

What kind of contribution to city life do you want to see from them?

I believe that commercial real estate developers should devote more attention to the idea of integration of their development into the local context.

I made it clear in my electoral manifesto, endorsed by the majority of citizens: new commercial property should not lead to the creation of isolated islands, fenced-off quarters which are inaccessible to their neighbours.

We will impose this philosophy from the planning stage. Sustainability, ecofriendliness and energy-saving must be taken into consideration, too. So should transportation needs. Warsaw invests a lot in improving its public transportation system. New metro and tram lines, electric buses – we should make sure their potential is fully exploited, location-wise. Private underground parking should be more integrated with the city network of car parks. This is a win-win situation.

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Rafał Trzaskowski

is speaking at the MIPIM international real estate fair in Cannes on 13 March as a guest of Poland Today.

Warsaw's revenue

in 2019 is expected to amount to 17bn zł and expenditures will reach over 19bn zł. The city’s largest expenditure will be allocated to education at 4bn zł followed by 3bn zł for transport and communication, and 2bn zł for healthcare and social assistance.

The murder of Mayor Adamowicz was a terrible tragedy, of course overwhelmingly for his family, but also for the country. As a fellow mayor, what conclusions do you draw about the nature of politics and public service in Poland?

What are the major opportunities?

We should build on people’s dynamism. The citizens of Warsaw are welleducated, relatively young – compared to many other Polish cities – hardworking and ambitious. Warsaw is a citymagnet attracting the best and the brightest. And it will continue to be, as our universities are the best in the country. The opportunity we should seize is this: the future of Warsaw must be built upon the foundation of the knowledge-based economy. There are many initiatives in this particular field that I plan to kick-start.

is covered with parks and gardens. We are said to be the safest city in Poland, the seventh safest capital in Europe. It is not by a stroke of luck that Warsaw has become the regional centre of the business services sector: there are, in total, 215 shared services centres in Warsaw, employing over 50,000 people.

Warsaw's new mayor Rafał Trzaskowski, who is a member

of PO (Platforma Obywatelska - Civic Platform party), was elected Mayor of Warsaw on 21 October 2018, receiving a total of 505,187 votes to beat the PiS (Prawo i Sprawiedliwość - Law & Justice party) candidate Patryk Jaki in the first round with a total share of 56.67% of the vote. He assumed office on 22 November.

Trzaskowski was previously a member of the European Parliament from 2009 - 2014. He also served in Prime Minister Donald Tusk’s government as Minister of Administration and Digitisation (2013 - 2014) and as Secretary of State in the Ministry of Foreign Affairs (2014 - 2015).

Paweł Adamowicz was not only my fellow mayor, the president of the city of Gdańsk. He was also a symbol of modern, liberal and democratic local government. He profoundly transformed his city, modernising it, enriching its cultural and public life. He was stabbed to death while addressing the citizens of Gdańsk at a national charity event, the famous ‘Wielka Orkiestra Świątecznej Pomocy’ (Great Orchestra of Christmas Charity). We all know that Paweł Adamowicz suffered from an orchestrated campaign of intimidation led by the governmentcontrolled public media. I can only hope that his death will lead to the taming of hate language, to the toning down of the aggression that characterises the Polish political scene. Politically speaking, Polish society is deeply divided. Let us hope that Mayor Adamowicz’s example and his ultimate sacrifice will help us all – politicians and citizens together – to embark on the path of conciliation.

interview by Richard Stephens

Nation of Cities

What are your priorities as Mayor of Warsaw?

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City of Łódź Population: 690,000

(0.9 m people in the whole agglomeration)

Unemployment rate: 5.5% Average salary: 4,462 zł/ €1,075 Institutions of tertiary education: 22 Students in tertiary education: 72,000 Hanna Zdanowska, Mayor of Łódź:

Nation of Cities

"We are at the beginning of the largest urban regeneration project in the history of Łódź.

It is a major challenge not only from the invest­ ment side, but also from a social and economic standpoint. The scope of works is wide, as it ap­ plies to both the revitalisation of entire quarters of the city and numerous other complemen­ tary projects. We will restore tenement houses, redevelop entire streets, modernise parks, plant trees and reduce traffic in the city centre. We will also invest in culture, renovate historical monuments and improve public transportation.

Commercial developers believe in Łódź because they see that we consistently implement our growth strategy to make Łódź a beauti­ ful city and a great place to live in.”

Above: EC1, former power plant transformed into a science, cultural and artistic centre

Right: Piotrkowska

Street, the main artery of Łódź and one of the longest high streets in Europe

Above, left & right:

Manufaktura, a centre of arts, leisure and retail created in the revitalised 19th century post-industrial complex

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Left: Łódź Fabryczna office project by JJ Invest, according to the concept of the Dutch studio MVRDV

Left & below:

Concept of Kobro Square, a major part of the new Centre of Łódź

Above:

Hi Piotrkowska 155, mixed-use development in the centre of Łódź by Master Management Group

Right: Newly built Łódź Fabryczna underground railway station

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City of poznań Population: 538,000

(1 m people in the whole agglomeration)

Unemployment rate: 1.2% Average salary: 5,062 zł/ €1,219 Institutions of tertiary education: 24 Students in tertiary education: 110,000 Jacek Jaśkowiak, Mayor of Poznań:

"I strive to make Poznań a truly European city with suitable infrastructure, efficient public transportation, accessible culture, attractive places for rest and recreation, and above all, an active civil society. The fact that inhabitants want to help us create an open Poznań, where everyone can feel good, is something that I care about. The city is for all people and their needs and expectations are the most important guidelines for me when planning both individual investments and for the entire development strategy.”

Above: Poznań's Old Town

Below & right:

Bałtyk, an office building designed by the Dutch MVRDV studio, known for its uncompromising urban taste

Right: Cobbled

Nation of Cities

streets of Poznań's Old Town.

Below: Concept

of Saint Martin Street as part of the new city centre

Above: OkrÄ&#x2026;glak, an office building

by Immobel

Left: Housing estate Portowo by Vastint at the Warta River

Right: Concept

of the new district, Wolne Tory

Left & below:

Stary Browar, a contemporary centre for shopping as well as culture and education

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City of GDynia Population: 246,000

(1.1 m people in the whole Tri-City conurbation)

Unemployment rate: 2.4% Average salary: 5,045 zł / €1,215 Institutions of tertiary education: 5 Students in tertiary education: 11,458

Wojciech Szczurek, Mayor of Gdynia:

"Nearly 90% of Gdynia’s citizens are satisfied with living in the city, which is an exceptional result on a national scale. The comfort and qual­ ity of life that Gdynia offers are really unique.

Gdynia is part of a bigger agglomeration [and region] which houses 1 million people. We offer all the pleasures of living in a very big city, while staying a compact city that is extremely comfort­ able to live, walk, or spend vacations in."

Nation of Cities

Above: Bulwar

Nadmorski, the most popular walking route in Gdynia

Right: Concept of Gdynia Waterfront II, mixed-use complex in the new Sea City

by JEMS Architekci for Vastint Poland

Above & Right:

Polish Oceanic Lines Headquarters and the Pręczkowski Tenement House, examples of modernism in Gdynia

Left: View of Marina Gdynia at dawn Below:

Waterfront offices

Above:

Pomeranian Science and Technology Park

Right: Concept

of the Sea City Fishing Pier

Left: Concept

of the new Central Park

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City of GDAŃSK Population: 464,000

(1.1 m people in the whole Tri-City conurbation)

Unemployment rate: 2.6% Average salary: 5,312 zł / €1,280 Institutions of tertiary education: 13 Students in tertiary education: 67,000 Aleksandra Dulkiewicz, Mayor of Gdańsk: “(We stand for an) open Gdańsk.

Nation of Cities

A city that will look after everyone, where everyone – from a child to a senior citizen – will feel good. It is not only about the social aspect, but also about investments that serve everyone. In the previous campaign under Paweł Adamowicz we talked about the city of our dreams – a city that will move from the first league to the champions league of European cities. This is the dream and the goal we pursue.”

Above & right:

European Solidarity Centre, a state-of-theart cultural institution that honours the victorious Solidarity movement

Above, right & left:

Granaria by Immobel, a comprehensive urban concept, which will include apartments, commercial and service facilities and a modern hotel

Right: Olivia Star,

the flagship office tower of Olivia Business Centre, a prestigious business park located at the very heart of the Gdańsk metropolitan area and the largest business centre in Northern Poland

Left: Museum

of the Second World War

Below: Concept

of Nautilus Gdańsk

by PFI Future S.A., the multifunctional building for recreation and leisure located next to Energa Gdańsk Stadium

Left & below:

Gdańsk's historical Old Town is located at the Motława River

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Left & below:

'Culture Zone' created on the grounds of a former coal mine, now home to the Silesian Museum and the International Congress Centre

leader

Below: Visitors and

residents can enjoy the large contemporary space in the heart of the city, just 5 minutes from the Main Square

Nation of Cities

City of katowice Population: 296,000

(2.5 m people in the whole Silesia conurbation)

Unemployment rate: 1.6% Average salary: 5,290 zł / €1,274 Institutions of tertiary education: 11 Students in tertiary education: 57,000 Marcin Krupa, Mayor of Katowice:

"Katowice is the capital of one of the largest and most dynamically developing agglomerations in Europe. The huge urbanised area, of which [Katowice is] the heart, includes 41 cities and towns with more than 2.5 million inhabitants.

Katowice is a strong brand in the eyes of entrepreneurs, based on a number of factors, such as: access to qualified employees, excellent location and extensive support systems. Today, we are also looking at the scientific, economic and infrastructural potential of the entire metropolis. Katowice is business-friendly – and this is confirmed by companies that have decided to invest in us. It's a win-win model.”

Left: Silesia Business Park by Skanska

Left & below:

The International Conference Centre in Katowice, where many top level events take place, such as the recent COP24

Left: The Silesian Museum with the prominent mine shaft hoist tower of the former Katowice Coal Mine

Left & below:

Cavatina's recently announced Global Office Park project

Right: Concept of KTW Tower by TDJ Estate, which will be the tallest skyscraper in the city

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City of Wrocław Population: 638,000

(0.8 m people in the whole agglomeration)

Unemployment rate: 1.8% Average salary: 5,070 zł / €1,221 Institutions of tertiary education: 25 Students in tertiary education: 114,000 Jacek Sutryk, Mayor of Wrocław:

Above & left:

Wroclaw, the city of bridges and little islands at the Odra River

Nation of Cities

Left: Residential

complex called 'Manhattan,' one of the icons of Wrocław built in the first half of the 1970s

Right & below:

Wrocław Główny, the recently renovated main railway station

"Wrocław is a unique city – here everyone is from somewhere else. Residents who settled in Wrocław after WWII had to build a city from scratch. Not only the buildings but also its iden­ tity. The wisdom of Wrocław results from these difficult experiments. The city is famous for its hospitality, organisation of great cultural and sports events, a vibrant market and favourable climate for entrepreneurs. "

Above: Sagittarius Business House by Echo Investment

Right: National Forum of Music

Left: Concept of Er-

goCity by PFI Future SA, created following a new philosophy for building housing developments, which are places for living, working and resting

Below: Concept of Carbon Tower office building by Cavatina

Left: Commercial centre Renoma

Below: The city, in-

cluding the beautiful Old Town, is characterised by architectural eclecticism

Left: Diamentum Office by Cavatina located in the business district

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Between noise and silence in Poland Poland came to a standstill in January after the assassination of the popular mayor of Gdańsk, Paweł Adamowicz. In a decisive election year, the country has begun to ponder his legacy and search its collective conscience for answers.

William Hastings Burke is an Austral-

Citizens of Gdansk

mourn the death of their mayor, Paweł Adamowicz, who was stabbed during the charity concert on 19 January 2019 in Gdańsk, Poland.

photos: Maciej Moskwa (NurPhoto via Zuma Press), Łukasz Dejnarowicz (Forum)

ian writer based in Warsaw. In 2010, he brought the WWII-rescue story of Albert Göring to the world in his book Thirty Four and the BBC documentary ‘Goering’s Last Secret.'

He has studied in the US and Australia, ultimately obtaining an Honours degree in Economics (Soc. Sc.) from the University of Sydney. He has lived in Poland since 2014, researching and writing, among other projects, his second WWII epic.

Hello darkness, my old friend I've come to talk with you again Because a vision softly creeping Left its seeds while I was sleeping And the vision that was planted in my brain Still remains Within the sound of silence

to his injuries the following afternoon on 14 January. He was 53 years old, survived by his wife Magdalena and two daughters – and a divided country in shock and distress.

It was a surprisingly mild January evening on the Baltic, three degrees above, the clock about to tick over to 8 pm. Just as they have done for the past 27 years, a crowd of thousands had assembled on Targ Węglowy Square in downtown Gdańsk to celebrate the annual finale of the Great Orchestra of Christmas Charity (Wielka Orkiestra Świątecznej Pomocy, WOŚP).

It is a nationwide charity that raises funds for hospitals to purchase essential medical equipment.

Leading the way on stage was the bear-like figure of their mayor, Paweł Adamowicz, whom since 2002, they had voted in five times by a majority.

He had just lit up the crowd with a few heartfelt words: “This is a wonderful time to share all that is good. You are all so lovely. Gdańsk is the most wonderful city in the world.” Just as the crowd sang out the countdown to the ‘Lights to Heaven’ fireworks show, a man appeared on stage without seemingly causing alarm and proceeded to attack Adamowicz with a knife, stabbing him multiple times in the upper body. With fireworks now blazing in the background and the crowd waving their smartphones in the air, the man seized a microphone and announced to the world: “Hello! Hello! My name is Stefan, I was jailed but innocent. ...Civic Platform tortured me, that's why Adamowicz just died.”

Adamowicz was resuscitated at the scene and rushed to the University Clinical Centre where he underwent five hours of surgery on his heart, diaphragm and other internal organs.

Despite the best efforts of the medical staff and hundreds donating blood, Paweł Bogdan Adamowicz succumbed

Paweł Adamowicz Paweł Bogdan Adamowicz was born on 2 November 1965 in Gdańsk. As a law student at the University of Gdańsk, he was an active member of the ‘Solidarność’ movement in the 1980s, distributing underground literature and participating in the 1988 Strikes.

In 1990, he became a city councillor and after four years as chairman, he was appointed Mayor of Gdańsk in 1998. Over his 21-year tenure as mayor, he was an outspoken (and sometimes controversial) advocate of a diverse range of causes, earning him the appreciation of the Catholic, LGBTQ, Jewish, Muslim and Kashubian communities, as well as the ire of the Law and Justice party and various other conservative groups. Most notably, he responded to the 2016 migration crisis by establishing a task force to develop an immigrant integration model for Gdańsk. He was the recipient of numerous awards, including the Pro Ecclesia et Pontifice in 2001, the French Legion of Honour medal in 2012 and the Polish Cross of Freedom and Solidarity in 2014.

When Adamowicz’s life support was switched off, a palpable silence shuddered throughout Poland, rolling into a pall of national grief that seemed to transcend party, religious and ethnic lines. The crowds flooded the city streets of Poland, laying flowers and candles in silent vigils. Flags flew at halfmast and thousands signed condolence books in municipal buildings. Bars and cafes handed out free tea and coffee to passers-by. In the following days, processions against hate and intolerance sprung up in Gdańsk, Warsaw, Kraków and other cities around the country.

Donald Tusk, the current president of the European Council and founder of opposition party PO, returned to his hometown of Gdańsk to tell the crowds: “I want to promise you today, dear Paweł, that for you and for all of us, we will defend our Gdańsk, our Poland and our Europe from hatred and contempt.” From the other side of politics, President Andrzej Duda and Prime Minister Mateusz Morawiecki shared similar messages. “Hostility and violence have brought the most tragic result and pain. This is something we must not accept,” said President Duda after attending Adamowicz’s funeral mass in St Mary’s Basilica where multifaith prayers were also performed.

Prime Minister Morawiecki later reached out to politicians, commentators, intellectuals and the media to plead, "make our public life better and the political debate calmer, wiser and filled with due mutual respect … We very much need national reconciliation and accord."

Much conjecture

has already been spread, and with an investigation underway, any talk about a motive would be imprudent at this stage. Nevertheless, a few fundamental case points have been released by the authorities. The assailant has been identified as Stefan W, a 27-year-old native of Gdańsk with a long criminal history, including bank robbery and violent assault.

He was sentenced to prison in 2014 and released in December last year.

‘Poland’s grief, Poland’s hope’

‘Contrary to what is often repeated in public that people hanker for heated political debate, we have reached the maximum of political fever and it is time for it to break’

Poland’s grief quickly spilt over into the world’s consciousness. From Auckland to Madrid, Tokyo to Rio de Janeiro, Chicago to Jerusalem, Fox News to The Guardian, the world’s press covered the attack, death, funeral and aftermath.

“Mayor Adamowicz was a deeply courageous, moral leader who showed the way in helping refugees and migrants to integrate,” said Montserrat Feixas Vihe, the UNHCR Regional Representative for Central Europe. “He received hate mail for his pro-refugee stance, but he did not weaken in his belief.”

The American Jewish Community of Central Europe lamented on Twitter: “He was a true friend & ally in countering xenophobia. We must confront hatred in the public sphere.”

From the Vatican, Pope Francis sent rosaries to the Adamowicz family along with his prayers and thoughts. Across

Nation of Cities

Lights to Heaven

leader

And quiet flows the Vistula

...So contemplated

the thousands assembled on Long Market in the port city of Gdańsk, just hours after learning that they had lost their treasured mayor, Paweł Adamowicz. In the frigid January night air, the people of Gdańsk turned to Simon and Garfunkel’s eternal words for warmth, hoping to make sense of the horrific attack from the night before. Now with the parliamentary elections coming up in autumn, Poland as a whole has joined Gdańsk in reflecting upon Adamowicz’s legacy and whether it might usher in a shift in public discourse – or indeed, bring ‘solidarity’ back to Poland.

61

62 leader

Interestingly,

Nation of Cities

when the people of Gdańsk listened to ‘The Sound of Silence’ on the evening of Adamowicz’s death, they did not hear the dulcet tones of Simon and Garfunkel. They instead opted for a cappella version released in 2015 by Disturbed, a heavy metal band from Chicago.

town in Rome, La Repubblica featured Seemingly not afraid to make uncomBut it did not take long before the an old interview with Adamowicz from fortable decisions, his political career unified wall began to crumble. The 2017. As though tragically portend- was defined by a constant state of evo- state-broadcaster, TVP, quickly came ing his own death, Adamowicz said, lution. He entered politics as a freedom under fire for its less than favourable “Physical abuse is normally preceded fighter, settled into the ‘90s as a mem- coverage of Adamowicz and his politiby verbal violence … When the lan- ber of the Conservative People’s Party cal career in the past, as well as for the guage of the elites violates the limits (SKL) and embraced the new millen- treatment of the WOŚP charity and its imposed by decency, it causes more nium as a leading liberal figure in PO. founder, Jerzy Owsiak. A multi-party and more physical violence.” This And just last year, he broke away from coalition of MPs then called for a boymessage was echoed by the editorial the political establishment altogether by cott of TVP and the resignation of its boards of The New York Times and founding his own local party, ‘Wszystko chairman, Jacek Kurski. Members of Financial Times. They each called out dla Gdańska’ (Everything for Gdańsk). the ruling coalition promptly reminded the toxic environment of hate that has Though not without his detractors, he the boycotters of the treatment they marred political discourse in not only generally enjoyed a broad and diverse had themselves received in opposiPoland but also around the world. base of support, from the LGBTQ world tion before 2015, especially in the Underneath the headline ‘Poland’s grief, to the local Catholic Church, as well period prior to the assassination of Poland’s hope’, Der Spiegel reminded as the Jewish and Muslim communi- Marek Rosiak. And in scenes reministhe world about a day in June last year ties. Somehow, he could carry out this cent of the recent government shutwhen Adamowicz joined a select group conversation directly with the world, down in Washington, the Polish Senate of Polish mayors in Warsaw to loudly despite the direction pursued by suc- debated over the official wording to declare “No to hate." cessive governments in Warsaw. And honour the late mayor.

The people of Poland, however, have by the reaction to his death, it seemed ‘The end of the already shown signs that they have had the world had listened. age of innocence’ Lastly, Adamowicz’s brutal murder enough. Internal polling by the governMany parallels have been drawn in the occurred on a cherished date in the ment has suggested that people are wake of Adamowicz’s brutal murder. Polish calendar. For at least one day of sick of hearing about ‘liberals’, ‘castes’ The first case seized upon was the 1922 the year, Poles from all walks of life and and ‘elites.' Political scientists have also assassination of Gabriel Narutowicz, the politics come together in the depths picked up a similar message from the first democratically-elected president of winter to raise millions of dollars for latest IBRiS poll, which recorded a sigof Poland. His murder in the Zachęta hospitalised children and the elderly. nificant shift in voter intentions. “This National Gallery in Warsaw came at It is a day when people literally wear poll reflects a return to a balance in the height of a brutal nationalist cam- their hearts on their sleeves with each political discourse,” Prof. Ewa Marciniak, paign against him. Next came the more donor receiving a red heart-shaped a political scientist from the University recent attack on Marek Rosiak, an aide sticker. As Olga Tokarczuk, the winner of Warsaw, told Rzeczpospolita. from the Law and Justice (PiS) office in of the Man Booker International Prize, “Contrary to what is often repeated in Łódź who was murdered in 2010 during wrote in The New York Times, “It has public that people hanker for heated another toxic period in Polish politics. enabled Poles – a gloomy people on political debate, we have reached the International commentators also noted the whole – to warm themselves at the maximum of political fever and it is time the fracture and vitriol preceding the fire of community. I would have noth- for it to break.” assassinations of Israeli Prime Minister ing against the Orchestra declaring Yitzhak Rabin in 1995 and British MP itself a nation unto itself; I would hap- ‘Within the Jo Cox during the Brexit referendum pily become a citizen.” It’s perhaps why sound of silence’ in 2016. But none could quite explain Bogusław Chrabota, the Editor-in-Chief Just before Father Wiśniewski had the present tragedy. Three key factors of the centrist Rzeczpospolita newspa- stirred up the funeral congregation, make Adamowicz’s murder stand out per, declared that Adamowicz’s murder Magdalena Adamowicz, the mayor’s and perhaps help to explain the depth will be remembered as “the end of the widow, had brought the crowd to tears, including two old political warand magnitude of grief that ensued. age of innocence”.

The location of the tragedy is parhorses in the front row, Lech Wałęsa ticularly significant. Gdańsk has long The sound of disquiet and Aleksander Kwaśniewski. Flanked been a city marked by its ethnic, reli- At Adamowicz’s funeral, Father Ludwik by her 15-year-old daughter, Mrs gious and cultural pluralism. “For most Wiśniewski, an anti-communist hero Adamowicz cast a resolute gaze over of its history, Gdańsk was a multina- and family friend, held the 45,000 the crowd and said, “Today we need tional city, a kind of united Europe in inside and outside St Mary’s Basilica in silence, but silence does not have to miniature, where different nation- awe. “We must end hate. We must end mean quiet, because quiet is too close alities lived together in peace,” Jerzy hate speech,” he said. “We must end to indifference ... We must examine Limon, professor of English at the contempt. We must end baseless accu- our conscience, like we did when evil University of Gdańsk, told The Guardian. sations against others.” In the direct was once upon us.”

The city was, of course, the birthplace aftermath, in most areas of society It remains to be seen as to how of Solidarność (Solidarity), a movement and the media, the Dominican priest’s Poland might interpret her message. that was founded and guided by both wishes were largely upheld. The coun- That is, what will fill the silence in the sides of today’s political divide. try came together just as it had done coming months, especially in the lead after the 2010 Smolensk air crash. up to the parliamentary elections in Living neither Hate was the first target with a autumn. Yet some have already read her rashly, nor timidly largely bipartisan finger doing the words as a call for positive action, a plea Adamowicz himself had fought for the pointing. As mentioned earlier, the for national harmony from a sacred site Solidarity movement as a law student at prime minister and president joined in Polish history, where both sides of the University of Gdańsk in 1988, lead- their colleagues from the other side of the current divide once fought together ing a student strike with the shipyard the house to call out hate. Marking a under one banner, Solidarność. The last workers. He was a proud son of Gdańsk new age of zero tolerance, the police time that occurred, as Mrs Adamowicz who lived by her motto: nec temere, quickly arrested suspects for dissemi- alluded, Poland defeated communism. nec timide (neither rashly, nor timidly). nating hate speech on the internet.

by William Hastings Burke

63

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An escape from communist Poland led Stash Pruszyński to Radio Free Europe in Munich. page 68

While other countries cut back on defence, Poland is spending more. page 24

H2 2017 issue no. 15

A testament to the Jewish contribution to Polish history opens. page 58

The changing face of Silesia, above and below the ground. page 68

Does Donald Tusk have the political will to force through healthcare reform? page 30

(04) may/jun 2013

Maritime trade and improved transport links boost Pomerania. page 40

Poland's unlikely role model as it seeks to maximise BPO potential. page 50

World Press Photo winner Chris Niedenthal shares his memories of transformation. page 30

(05) SEPT/OCT 2013

Jan Cienski reports from Ukraine on how the country's divisions have made it vulnerable. page 42

A Polish startup that makes 3D printers has landed a huge deal with computer giant Dell. page 54

An exclusive interview with President Bronisław Komorowski. page 22

(06) mar/apr 2014

MIPIM 2015: Extended in-depth real estate coverage for the fair in Urban Issues. pages 68-84

Canada in focus: Canadians want to share their experience in spurring innovation. pages 37-48

Expert level: Polish video games are being recognised for their quality worldwide. page 98

Former President Kwaśniewski talks about Poland’s chance for unity in an exclusive interview. page 24

Q2 2015 issue No. 09

Expo Real 2015: Special focus sections on commercial real estate and the hotel market. pages 29-48

Polish scientists are helping the police catch drunk drivers with innovative use of lasers. page 54

Storm clouds gathering?

Prospects for the CEE’s largest economy. page 20

The quiet charm of Sandomierz, one of the country’s lesser known tourist delights. page 64

Door to the future

A summer to remember

page 26

page 30

Uniting business and academia will unlock Poland’s potential

illustration: Shen Akindo

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Politics and business go hand in hand. Where is the economy headed under PiS? page 22

01/2012

Are businesses in Poland ready to take advantage of the Internet of Things? page 48

The day Muhammed Ali beat a Pole to gold at the 1960 Rome Olympics page 72

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The economy needs a caffeine kick, claims top economist in an exclusive interview. page 30

H2 2016 issue No. 13

Startups are beginning to be recognised by the mainstream, but could do a lot better. page 64

The Rolling Stones played Warsaw in 1967 and most had never seen anything like it. page 88

A picture of tomorrow’s Polish economy What are the sectors Poland should focus on to ensure an innovative future? page 16 Magazine • Portal • Conferences • find out more at www.poland-today.pl

The aims and implications of Deputy Prime Minister Morawiecki’s plan. page 24

H1 2017 issue No. 14

Poland’s exporters and their success despite challenges in trade with Russia and the EU. page 30

MIPIM 2016: (sun, sea and) the world’s largest international property exhibition. page 49

The Polish effect shines on

Vote of no confidence?

Poland Today presents an analysis of the country’s political environment ahead of critical parliamentary elections

How the country has fared since the election, and what lies ahead page 16

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How Warsaw’s passion to blend old with new is driving a nationwide real estate renaissance pages 36-51

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Capital Ambitions

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An emerging confidence: Poland’s place in the current hierarchy of nations. page 14

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Russia’s information war: What are the risks for Poland, and how should the country respond? page 60

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q1 2016 issue No. 12

64

real estate

With MIPIM in the air, Poland Today

casts a quick glance over the highlights of an extraordinary year in real estate investment and takes a brief journey down the warehouse memory lane.

Records just keep tumbling Poland’s real estate

investment sector in 2018 reached new highs, according to international investment consultancy JLL. Total investment transaction volume exceeded the previous record from 2006 by €2.2bn, reaching €7.2bn, continuing a 4-year growth trend. “2018 was a unique year in Poland for many reasons,” said Tomasz Trzósło, Managing Director, JLL Poland. “It saw a noticeable yield compression in most asset classes. There were almost 100 transactions concluded throughout the year including the biggest retail portfolio sale in the history of the Polish market for €1.0bn, the largest number of portfolio transactions traded in a single year in the industrial sector – seven, and the highest investment volumes reported in the key sectors: €2.75bn in the office sector, €2.47bn in retail and €1.84bn in industrial assets. It’s the first time in the last few years when office investment volumes outperformed retail and became the first-choice asset class in Poland.”

And a new trend crystalised: Asian investors entered the market in a significant way, with Asian capital volumes reaching 20% of market volume.

What’s driving this record demand for investment product in Poland, and the confidence that underpins it? “It’s the effect of the sustained growth of the Polish economy and continuously increasing confidence in the country, not only on the macro level but in particular on the HR level with more businesses and more sophisticated functions being transferred to Warsaw and regional cities from abroad,” states Piotr Mirowski, Senior Partner and Head of Investment Services in Poland at Colliers International. Not everyone can be a winner, of course: “The growth is a combination of new entrants expansions and tenants upgrading their office space, which in our opinion will ultimately result in the more obsolescent stock becoming uncompetitive and getting converted to other functions such as residential, hotel, co-living, student housing or other purposes.” About the wave of Asian investment, Mark Robinson, also of Colliers but based in Prague, where he is CEE Research Specialist, said: “The sources of capital from Asia purchasing commercial real estate in CEE are widening to include countries such as the Philippines. The sheer size of the crossasset capital pool in Asia suggests that this diversifying trend will continue in the coming years.”

top transactions

10 changes in 10 years

These are some other significant transactions that took place in Warsaw in 2018:

To mark its decade on the market, real estate consultancy and brokerage firm Axi Immo published 10 striking facts about the Polish warehouse market that have changed over this time

– The acquisition of Wars Sawa Junior, a prime retail asset located in the centre of Warsaw, along the Marszałkowska high street, by Atrium European Real Estate from PFCEE, a fund managed by CBRE Global Investors, for €301.5m.

– The acquisition of Gdański Business Centre (Buildings C and D) from HB Reavis by SIM on behalf of EPF for slightly above €200m.

– The purchase of Skylight and Lumen office buildings from Unibail-Rodamco-Westfield

by Globalworth for ca. €190m.

– The acquisition of CEDET by GLL on behalf of an Asian client for almost €130m.

– The sale of Warsaw Spire Building C

by Ghelamco to CA Immo for nearly €100m.

– The acquisition of Plac Małachowskiego office by Generali Real Estate from White Star Real Estate and Europa Capital for ca. €94m.

The two biggest transactions in other Polish cities were: – The acquisition of three office buildings in the Skanska office portfolio (in Wrocław, Kraków and Łódź) by Swedish fund manager NIAM for almost €173m.

– The purchase by Warburg-HIH Invest Real Estate of Sagittarius Business House in Wrocław from Echo Investment for ca. €69m.

In the industrial sector, the following key transactions were completed in H2 2018: – The Encore Portfolio acquired

by Mapletree from Hillwood for ca. €320m – A Prologis Portfolio acquired

by Mapletree for ca. €260m – The Och-Ziff Portfolio acquired

by Griffin/Redefine for ca. €195m – The Azurite Portfolio bought by Blackstone from Goodman for ca. €190m – A Hines Portfolio purchased by Blackstone for ca. €140m. (source: JLL)

– 1. The supply of warehouse space in Poland increased three times from 5.1m sqm to over 15.7 million sqm at the end of 2018.

–2 . In 2009, 765,000 sqm of warehouse and production space was leased across Poland.

In 2018, the figure reached over 4m sqm.

– 3. The share of e-commerce in the market has increased from below 1% to over 10%.

–4 . In 2009 the vacancy rate reached 16.3%.

Today vacancy is at a record low of 4.5%.

–5 . In 2008-2009 average logistics rental rates ranged from €2.3 to €2.8 sqm, with headline rents at €3.3-3.5 sqm. The current upward trend in rents visible on all markets is causing a return to the level from previous years, with headline rents at €3.3-3.6 sqm.

– 6. 10 years ago warehouse product was rated much weaker than office or retail product.

In 2009 transaction volume amounted to €175m. In 2018 it was just over €1.8bn.

– 7. The length of expressways and motorways has increased almost five times from 765 km then to 3730 km now.

– 8. In 2009, the rental market was mainly in Warsaw, Upper Silesia, Poznań, Central Poland and Wrocław. Today locations such as Szczecin, Tri-City, Kraków, Bydgoszcz, Eastern Poland and the Lubuskie region each have over 250,000 sqm of space.

– 9. Access to the road network used to be the prime concern for the industry. Today it’s the availability of staff. Unemployment was at 12.1% then. Now it’s around 7% lower.

– 10. The sector used to be dominated by bigbox investments at major road nodes. Today, in addition to these, urban developments, cross-dock, BTS and BTO projects are appearing in greater numbers. (source: JLL)

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66

real estate

Moving mountains for a revitalising deal Tackling a large mixed-use restoration project is no easy feat, but Polish developer Capital Park plans to transform a former factory into a buzzing commercial and community space.

Capital Park is

converting a former factory into a vibrant mixed-use scheme with office space, internal shopping streets, a bio-food bazaar, and a food hall in the Wola district of Warsaw.

There’s a popular video

online which shows – speeded up – a building being moved about 15 metres to the side. The 900-ton structure is the westernmost relic of the former factory house of Edward Luckfield, a manufacturer from Berlin, dating back to the 1850s – part of the 2-hectare revitalisation project of the former Norblin, Bracia Buch and T. Werner factory on Żelazna street in the very heart of Warsaw’s Wola district. Its movement from its original position and then back again (in order to dig the underground car park) epitomises both the immense challenges of the scheme and the total dedication of its developer. The former Norblin factory scheme is the latest, and by far the most challenging, project by Polish developer Capital Park. With 16 years of experience in the Polish real estate market and a portfolio of properties worth 2.5bn zł covering 304,000 sqm in cities across Poland, that’s saying something.

The aim of the project is to convert the industrial interiors of the former silver-plated metals factory into a vibrant mixed-use scheme featuring 40,000 sqm of office space, internal shopping streets with over 70 stores, a bio-food bazaar with almost 100 units, a 2000-sqm food hall (part-inspired by the Time Out market in Lisbon, except here the focus will be on chefs rather than restaurant brands), a boutique cinema, modern entertainment concepts and a health and beauty zone – for both men and women. Capping it all will be a large open-air restaurant on the roof. All around the complex will be an open-air museum displaying original factory machinery and artefacts, many donated by owners from around the world. “Everywhere you walk you will feel the history of the place,” says Marcin Juszczyk, Board Member of Capital Park. “There will be no wall around the scheme – it will be open to visitors 24 hours a day, seven days a week.”

Capital Park bought the plot of land back in 2008 when market conditions were very different from what they are now. For starters, Wola – despite being so close to the city centre – was a neglected district. Only the Hilton Warsaw Hotel and the Warsaw Trade Tower had ventured there, two lonely

‘Everywhere you walk you will feel the history of the place. There will be no wall around the scheme – it will be open to visitors 24 hours a day, seven days a week’

outposts in a semi-deserted postthe latter in the former Vodka distillindustrial urban landscape. The global ery in Praga – they plan a ‘red brick road’ (Szlak Czerwonej Cegły) route economy had tanked and there was along the east-west metro line (each no clear indication yet that Poland project is within a hundred metres would become the famous ‘green island’ of Europe, the only EU country or so of a metro station – in Norblin’s not to go into recession. The national case, between two metro stations at Rondo ONZ and Plac Daszyńskiego). confidence-boost of EURO 2012 was still four years away. But the company “Visitors could start with us and end up fell in love with the site and its possiat the Vodka Museum,” says Joanna Zielińska, Investor Relations Officer bilities. “We were so keen to do it,” says at Capital Park, smiling. “We want to Juszczyk. “We contacted our shareholders and I will never forget the reply offer both city inhabitants and tourists we received: ‘For a good deal, we will another Warsaw experience – each promove mountains,’ it said. It took two ject has a lot to offer,” she adds. weeks from getting that email to receivCapital Park has a track record of individuality, and from each proing the money for it in the account.”

Now Wola is transforming in front ject, they gain important experience. of the city’s eyes, and the office market One such example is their over-36,000in Warsaw is booming. Despite frequent sqm Royal Wilanów office scheme in the southern-Warsaw residential predictions of office oversupply over district of Wilanów, next to Wilanów the last few years, demand has kept up Palace and about 10 km from the with supply, especially for new projects, city centre. “When we built the proleading to record take-up rates. “2018 was a record year in all senses,” says ject everyone said it was in the midJuszczyk. “There were €7.3bn of comdle of nowhere,” says Juszczyk, “but mercial real estate investment transacwe believed in the location, and now it tions in Poland. Investors are buying is almost 100% leased. What we learned office buildings at cap rates of below from Royal Wilanów is how to create 5%. It’s similar in prime retail. And what’s and manage a public space. It is always good is that it’s no longer just Warsaw thriving, especially in summer, when we – international investors are buying have a summer cinema and put on conin several cities across the country.” certs. We even constructed a tempoJuszczyk believes the potential in the rary squash court, snow park and ice Wola district is enormous. “When they skating rink. We learned that it’s vital were developing Warsaw Spire, people we are fully involved.” Another examsaid 100,000 sqm in one project was Joanna Zielinska Marcin Juszczyk ple is the conversion of the Hampton is a Board Member too big. That was proved emphatically is the Investor

by Hilton project in Gdańsk, where they Relations Officer of Capital Park. wrong. In fact,” he says, “space in Wola learned about converting a former cinat Capital Park. continues to be leased. City Centre ema into a modern hotel.

West is a whole new district – there’s You might think that taking on the going to be over a million square metres former Norblin factory scheme is there. There are currently about 30,000 enough for the time being, but in fact, office employees, and in the next five there’s another large-scale revitalisayears, there will be about 60,000 tion opportunity on the horizon, this more. The good thing about our part time in Silesia, where private investors of the district is that we really coopturned to Capital Park to transform erate with our neighbours. When a massive 48-hectare site into an ecoSkanska bought the plot next door from “of how a city can develop by revitalising logical mixed-use district. “The owners Impexmetal, we met the next day to see old, underdeveloped spaces without fell in love with our vision and we have what we could do together – we want eating into new ones.” Before the EIB’s agreed on terms for cooperation. The our projects to fit together.” involvement, the sole lender support- idea is to create a carless district comThe Former Norblin Factory pro- ing the project was Polska Kasa Opieki bining residential, commercial and leiject took a significant step forward SA, which initially committed close to sure elements. We will probably invite in January 2019 when the European €160m, but as a result of the EIB loan, other developers to develop the resiInvestment Bank (EIB) signed an €60m the Polish lender has reduced its com- dential part, and we will handle the comloan deal to help finance the conver- mitment to €99.3m. mercial elements,” says Juszczyk.

Capital Park plans to integrate with Transforming brownfield sites into revision from brownfield site to a mixed-use scheme, which represented the bank’s the city in several different ways. For talised multi-functional schemes is a first transaction in Poland with a real example, only a limited portion of the growing trend in Poland, he observes, estate investor under a project financ- 4-level-underground, the 720-space and he is delighted to see it. “It’s great ing scheme. The project, said Vice- car park will be dedicated to the exclu- that these opportunities are coming up, President Vazil Hudák, responsible for sive use of office tenants. The rest will and that others are thinking in the same EIB operations in Poland, “is very much be open to the public at all hours of way as us. A great example is Echo in line with the Urban Agenda approved the day and night. And, in coopera- Investment’s planned conversion of the at EU level in May 2016 through the Pact tion with the city authorities and the Karol Scheibler factory in Łódź. In some of Amsterdam, a pact which calls on dif- developers of EC Powiśle and Koneser, regards, they are a competitor, but we ferent players to work together to stim- two other urban regeneration projects wish them all the very best with the proulate growth, livability and innovation, in Warsaw – the first on the west bank ject.” Capital Park’s priority at present, and tackle social challenges in Europe’s of the River Vistula, under develop- however, remains the conversion of the cities.” It is an example, he continued, ment opposite the Copernicus Museum, former Norblin metals factory in Wola.

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Capital Park is

Poland Today's partner for MIPIM 2019.

If you hear a buzzing sound near

Capital Park’s Royal Wilanów or Eurocentrum office projects, that will be the bees on the roof, busy making honey. The company runs two apiaries as part of the ‘Office Plus’ programme, an initiative which organises environmentallypositive activities.

real estate

The Cee SummiT 2018

‘New Europe’ remains a hot destination for investors Central Europe is undergoing a series of transformations, with technological advances, lifestyle changes and political shifts, which is attracting international interest across sectors. For the fifth edition of The CEE Summit, Poland Today and Investment Briefings invited global investors and CEE market leaders to explore this ‘New Europe’ and discuss what’s ahead for investments, cities and the real estate sector.

Assessing investment risks requires brushing up on the current political situation so Marek Matraszek, Chairman at CEC Government Relations, navigated Poland’s new political landscape and presented an analysis of what the results of the recent election could mean for Poland’s future. With a record voter turnout in local elections, the main question is – who won? Matraszek said both the ruling party and the opposition won in a way, considering Law and Justice (PiS) won small, rural districts while Civic Coalition (KO) votes were concentrated in large, urban cities. The balance is shifting between Eastern and Western Poland, but the bigger problem is the divide between urban cities and rural areas. PiS is struggling to win in large cities and even midsized towns. Matraszek predicts that this election will embolden Donald Tusk to come back and campaign for the opposition party in the parliamentary elections and even presidential elections in 2020.

From an economic standpoint, no market is unobtainable because of political risk if investors are prepared, said Sabina Kalyan, Co-Global Head of Research and Global Chief Economist at CBRE Global Investors. She said that it’s always possible to find a good deal on a bad market but a company must believe in the investment.

Impressive investments in the CEE Richard Stephens, Founder and Editor of Poland Today, asked investors what factors they take into account when deciding to invest in Poland and CEE. Wouter de Vos, CEO of Atterbury Property Investment in South Africa, said his company has a “bottom-up approach” – they have good partners in certain regions and are opportunistic. “We stick to what we know and if opportunities come up, we go with it.” Mr de Vos participated in the property tour around Warsaw earlier that day and said, “What we saw was really impressive. I must say that what we saw really excites us.” Factors to watch out for include politics, EU relations, labour market and domestic investments, according to Robert Martin, Founding Partner and Head of Central Europe at Europa Capital. Martin said he’s interested in the hotel sector because tourism is growing worldwide and hotel occupancy in Europe is increasing, so this is one area worth investing in. Kirsten Felden, Senior

Investment Manager for CEE Region at Union Investment Real Estate GmbH in Germany, said Poland is doing well from an investment and economic point of view and said she’s impressed by how Warsaw is growing and how professional the city is becoming; however, she’s worried about the rental stability long-term. In addition to offices, she said Union Investment is investing in shopping centres and logistics in Poland because it’s a dominant market with room for investments in secondary cities. Martin Erbe, Head of International Real Estate Finance Continental Europe at Helaba in Germany, would also invest in all of the sectors, but he is cautious about the office market because supply is creating the demand and older locations and buildings are suffering. He did say politics should be taken into consideration because changes in tax or bank laws, for example, can affect clients’ financing. As for the new skyscrapers causing concern, Janusz Dzianachowski, Partner, Real Estate at Linklaters, said yes, more business is coming into Poland and most of it is owned by foreign investors, but there are new players or ones returning after years of inactivity from all over the world.

Additional interest in the region is coming from the East, with the development of China’s Belt & Road initiative. Frank Schuhholz, Founder of FMS Advisers B.V. in The Netherlands, outlined the $900bn investment programme and how it will affect the CEE countries. Poland will remain a main transit country because it has the shortest connection to main hubs in Western Europe and has upgraded railway infrastructure. Meanwhile, Hungary has Adriatic connections and will become a key hub for Southeast European container flows, and Slovakia will be a transit country with a border point terminal in Dobra as a key connecting point.

Rising REITS regime Shifting from infrastructure to financing, Tobias Steinmann, Director of Public Affairs at EPRA in Brussels, shared his insights about real estate investment trusts (REITs) and concluded that European REITs demonstrate strong long-term performance and are a transformative force for countries. He said, “REITs offer access to a large palette of investment strategies and a large number of high-quality assets and sectors while offering higher liquidity.”

During the panel discussion, speakers talked about their experiences with REITs in their countries and the impact they make on the real estate sector.

Katarzyna Kopczewska, Partner at Baker McKenzie, said REITS is very desired on the Polish market, which is currently dominated by foreign investors. Polish capital is at the level of 2% market share in real estate, and what is missing is a legal

Below: Martin Erbe,

Head of International Real Estate Finance Continental Europe at Helaba, Germany

photos: BindUp Photo

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Left: Richard Stephens, Founder & Editor of Poland Today with Richard Betts, Managing Partner at Investment Briefings

Left: Andrew Brook-

ing, Director at Java Capital, South Africa

Above: Robert Martin, Founding Partner and

Head of Central Europe at Europa Capital, UK

Below: Craig Smith, Head of Research &

Property at Anchor Stockbrokers, South Africa

Above: Sabina Kalyan, Co-Global Head of Research and Global Chief Economist at CBRE Global Investors, UK

Left: Karina TrojaĹ&#x201E;ska Chief Financing & Operating Officer at Panattoni Europe

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The Cee SummiT 2018

real estate

Beware: challenges ahead Moderated by Financial Times correspondent James Shotter, a panel of experts discussed what the future holds for Poland and the CEE in terms of prospective investments and the effects of geopolitical developments across Western Europe and the US. With positivity, Dorota Dąbrowska-Winterscheid, Managing Director of the American Chamber of Commerce, said American companies have had 28 years of successful investment in Poland and it continues to be a hot destination for investors. Although there have been rising concerns about what is happening in Poland in recent years, it’s mostly based on impression rather than reality, she said. Poland needs better PR to help its image. In contrast, Przemysław Krych, Founder of Griffin Real Estate, said that at face value, Poland looks like it’s in good shape, but a number of challenges lie ahead – energy policies, the labour market, slow growth of public investment and declining consumer confidence – and he doesn’t think this government even understands what it’s facing. President

of Globalny Lider, Marcin Bużański, said that what’s more challenging is predicting how Europe will face these challenges, from migration waves, to Brexit, to EU budgets and other issues. Poland is a resilient country, but coupled at the same time, the stress level and resilience can go down. Krzysztof Sakierski, Director at PwC, added that people are seeing areas that they’re cautious about, but in terms of prospects on the CEE level, people are wondering if there will be a slowdown or plateau of markets. Overall, the real estate landscape is stable, but investors need more ways to invest in development, and legislative stability is key.

To wrap up this year’s CEE Summit, the final panel was all about ‘Strategies for Success’ and key international investors shared their experiences of investing in CEE and revealed where they think the market is heading. Adam Pustelnik, Director of the Investor Service and International Cooperation Bureau at the City of Łódź, said the one factor needed to achieve success is an idea and scale. He used Łódź as an example by explaining how they converted a big weakness – huge post industrial infrastructure – into an asset with the development of a €1bn big revitalisation project. Definitely be opportunistic, stressed Tim Norman, Managing Partner at Chayton Capital, but don’t be stupid. Being brave is important, but so is risk assessment, due diligence and not cutting any corners. Dr Walter Hampel, Head of Real Estate Finance International Clients and CEE at pbb Deutsche Pfandbriefbank said that despite what’s happening in Europe, the economic effects are still positive, and he hopes international interest will not slow down, but there’s a shift in where funds are coming into the region – less American money, more Asian money. Luckily, there is still potential in the growing logistics market and Chief Operating and Financing Officer in Poland at Panattoni Europe, Karina Trojańska, said e-commerce, supply chains and online shopping trends have changed the picture in Europe dramatically due to cultural changes and the new generation of consumers. Since these changes are not dependent on the business side, she said her company takes a good look at the market, diversifies its products as much as possible, and looks for new opportunities in logistics. Craig Smith, Head of Research and Property at Anchor Stockbrokers, said there are some large REITs who are active in the region from South Africa and there’s significant capital flow over the last five years.

There are different strategies to expand, but for investors, it’s important to have liquidity and scale, and continued investment in the region is likely from existing players who have proven track records.

by Monica Zielinski

Below: Andrzej Szu-

mowski, Chairman of the Management Board at Polish Vodka Association

Above: Tim Norman, Managing Partner at Chayton Capital

photos: BindUp Photo

platform for investors to put into real estate. Andrew Cox, Head of Investment Relations and Corporate Development at Globalworth, said if there is a REITs regime in the region that is attracting capital, it would be positive because critical mass is very important. He added that most countries have national real estate champions and it’s that permanent capital that provides retail space, office and logistics, so you have to welcome companies in all markets to add a good feature to the landscape and raise the investment profile.

Mark Robinson, CEE Research Specialist at Colliers International, commented that when you have many companies listed, there is a case of ‘survival of the fittest’ to compete for capital investment on the sector and it drives these companies to think about financing.

In honour of Poland’s 100-year anniversary of re-gaining independence, the first day of the summit concluded with a celebration dinner which included a riveting vodka tasting led by Andrzej Szumowski, President of the Board of the Polish Vodka Association and a founder of the new Polish Vodka Museum in Warsaw. In addition, Deputy Mayor of Gdynia Katarzyna Gruszecka-Spychała, presented the emergence of Gdynia from the seaside port to the buzzing city it is today. On a less serious note, after-dinner guests were invited to the stage for an informal panel to talk about their greatest successes and mistakes in their real estate careers, and those from abroad recalled their earliest experiences in Poland. The celebration was filled with laughter, candid anecdotes and spontaneous toasts to 100 more years of independence.

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Right: Frank Schuhholz, Founder of FMS Advisers B.V., Netherlands

Left: Margarida Caldeira, Chair of the EMEA Board at Broadway Malyan, Portugal

Below: Kirsten

Felden, Senior Investment Manager for CEE Region at Union Investment Real Estate GmbH, Germany

Left: Tobias Steinmann, Director of Public Affairs at EPRA, Brussels

Above: Monika

Rajska-Wolinska, Managing Partner at Colliers International, Poland

Left: Dr. Walter

Hampel, Head of Real Estate Finance International Clients & CEE at pbb Deutsche Pfandbriefbank, Germany

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real estate

conference & cocktail party

Poland Today at MIPIM 2019 The world's leading real estate fair | 12-15 March 2019 | Palais des Festivals | Cannes, France

For the 5th year running, Poland Today is leading the Polish conference content at the world’s most important real estate event in Cannes.

Featuring a mayor, a minister, a New York proptech guru and major figures in the business and real estate community, we are delighted to bring you a fascinating look at the Polish property market and beyond.

Richard Stephens

Founder & Editor, Poland Today

Poland Today is once more playing a leading role at the world's biggest property event

Right: On stage

interview with Rafał Trzaskowski, Mayor of Warsaw

Tuesday 12 March 16.30 – 18.00 Verriere Grand Auditorium

Regional Leader: The Vibrant Polish Real Estate Market

Panel followed by Cocktail Party, hosted by the Polish Investment and Trade Agency (PAIH) What makes Poland the most dynamic real estate market in Central and Eastern Europe?

Gain an insight into finance, investment, real estate and economic policy from both private and public sector experts. Meet them to discuss Poland’s market outlook, success stories and growth perspectives. Join PAIH Influencers for a panel discussion and cocktail party.

– Richard Stephens (moderator), Founder & Editor, Poland Today – Marcin Juszczyk, Member of the Management Board, Capital Park S.A. – Tadeusz Kościński, Undersecretary of State, Ministry of Entrepreneurship and Technology – Krzysztof Senger, Acting President, Polish Investment and Trade Agency (PAIH) – Monika Rajska-Wolinska, Managing Partner, Colliers International – Brent Watson, Managing Director, Goldman Sachs Poland Services – Tobias Hemmann, CREM Special Projects & Asia Pacific, Daimler

14.00 – 15.30 Ruby Room (5th floor)

The Future Is Smart: How The Digital Revolution Will Impact The Urban Development Of Poland’s Great Cities Hosted by Poland Today

Poland is blessed with many natural advantages but one asset stands above all other – its many large, dynamic and independent-minded cities in which business is booming and investment is pouring in. How are these cities meeting the opportunities and challenges thrown up by the growth in businesses, advances in proptech, the sharing economy, and social, economic, transport & infrastructure changes?

Welcome:

– Richard Stephens, Founder & Editor, Poland Today

'The Future of Polish Cities' film trailer On stage interview:

Wednesday 13 March 12.30 – 13.30 Gare Maritime

European Logistics Investment: Trends, Issues, Challenges & Opportunities

hosted by Investment Briefings & Poland Today The logistics sector is at the vanguard of the 4th industrial revolution, undergoing massive and relentless change. What does this mean for investors, developers, service providers and end users? Listen to leading market experts from across Europe discuss how they are meeting the challenges and taking advantage of the opportunities arising from this 'positive disruption'.

Real Estate MIPIM 2019

– Robert Dobrzycki, CEO Europe, Panattoni Europe – Dr. Wulf Meinel, CEO & Managing Director, Frasers Property Europe – Frank Schuhholz, Founder, FMS Advisers – Joseph Ghazal, Managing Director, Chief Investment Officer, Prologis Europe

– Richard Betts (moderator), Group Publisher & Co-Founder, Real Asset Media, Investment Briefings & TV – Renata Osiecka, Managing Partner, AXI IMMO Group

organisers

partners

patrons

– Rafał Trzaskowski, Mayor of Warsaw

Presentation:

– Tomasz Trzósło, Managing Director, JLL Poland

Panel:

– Julia Arlt (moderator), Global Digital Real Estate Leader, PwC, Startup Mentor, MetaProp NYC, Co-Founder, FUTURE:PropTech – Aaron Block, Co-Founder & Managing Director, MetaProp NYC – Sean Tompkins, CEO, RICS – Jacek Wachowicz, CEO, Immobel Poland – Nicklas Lindberg, CEO, Echo Investment 15:45 - 16.30 Verriere Californie (5th floor)

The CEE Summit at MIPIM Networking Drinks - Connect with CEE and International Investors hosted by Poland Today & Investment Briefings

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real estate

Left: Aaron Block,

Left: Brent Watson,

Co-Founder & Managing Director, MetaProp NYC

Right: Jacek Wachowicz, CEO,

Right: Joseph Ghazal, Managing

Above: Frank Schuhholz, Founder,

Left: Krzysztof Senger, Acting

Right: Renata Osiecka, Managing

Echo Investment

Undersecretary of State, Ministry of Entrepreneurship and Technology

Managing Partner, Colliers International

Right: Sean Tompkins,

Europe, Panattoni Europe

Left: Tadeusz Kosciński,

Left: Monika Rajska-Wolinska,

of the Management Board, Capital Park S.A

Right: Robert Dobrzycki, CEO

Partner, AXI IMMO Group

Above: Nicklas Lindberg, CEO,

Left: Marcin Juszczyk, Member

President, Polish Investment and Trade Agency (PAIH)

FMS Advisers

Managing Director, Frasers Property Europe

Right: Julia Arlt, Global Digital Real Estate Leader, PwC, Startup Mentor, MetaProp NYC, CoFounder, FUTURE: PropTech

Director, Chief Investment Officer, Prologis Europe

Immobel Poland

Left: Dr Wulf Meinel, CEO &

Managing Director, Goldman Sachs Poland Services

CEO, RICS

Left: Tomasz Trzósło, Managing

Director, JLL Poland

Left: Richard Betts, Group

Publisher & CoFounder, Real Asset Media, Investment Briefings & TV

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76 history & culture

A general theory of Michał Kalecki

photo: Edmund Uchymiak (PAP)

John Maynard Keynes has been celebrated as the father, but could a self-taught economist from Łódź be the true pioneer of macroeconomic theory?

It’s the dead of winter

in Stockholm, most likely late February man of economics 1936. Michał Kalecki, 36 years old, Michał Kalecki was born on 22 June 1899 lies sick in bed. This is the first leg of in Łódź (Congress Poland). He rose to promihis Rockefeller Travelling Fellowship nence in the 1930s through his theory on capithrough Europe. Not exactly the start tal accumulation cycles, which, in conjunction with Keynes’s General Theory, would form the he had hoped for. He reaches for basis of macroeconomics. In the post-war years, his briefcase and retrieves a gift his he focused on development economics both Swedish colleague had handed him in the UN Secretariat in New York and later as the day before. He unwraps the parcel an economist in Communist Poland. His wife Ada was the sister of Ary Sternfeld, co-creator to reveal a sturdy hardback still smellof modern space science. ing of fresh ink. The author is a certain economist from Cambridge named that will form the basis of the economic John Maynard Keynes. And the title: wonder years to follow in post-war ‘The General Theory of Employment, Europe and America. Kalecki contemInterest and Money’. plates his predicament. Plagiarism Kalecki sits up in bed, thumbing or coincidence? What should he do? through the pages. The material is very “Then I thought – Keynes is more known familiar. In fact, he had himself devised than I am,” Kalecki would later recount. and published a selection of the main “These ideas will get across much tenets in a paper three years earlier. quicker with him and then we can get Though unknown at the time, these on to the interesting question, which are the very macroeconomic principles is their application. Then I got up.”

Made in Łódź Every great theory begins with a foundation and Kalecki’s starts in Łódź, Congress Poland. Here he was born on 22 June 1899 into an assimilated Jewish family with petty bourgeois pretensions. His father Abram owned a small spinning mill in the city, which at the time was the bustling and grimy heart of Poland’s textile industry. In many ways, Kalecki’s Łódź was very similar to Friedrich Engels’s Manchester, both in the dire industrial conditions surrounding them and the lens through which they were observed. Kalecki never spent a day in university studying the Marshall Curve, the Marginal Cost Curve or indeed any curve in economics. He was instead drawn to mathematics and physics, beginning and abandoning two engineering degrees: first at the Warsaw University of Technology in 1917 and then at Gdańsk Polytechnic from 1921 to 1925. While his first exmatriculation was brought on by war, his second came as a result of an acute failure of capital, with the bankruptcy of his uncle’s shipping business forcing Kalecki to seek gainful employment in Warsaw. It was around this time, while working as a credit appraiser, that he was introduced to economics. He was particularly taken by the ‘unorthodox’ literature of Mikhail Tugan-Baranovsky and Rosa Luxemburg. It did not take long before he began to contribute articles himself to various economic periodicals in Poland. His output ended up earning him a job at the Research Institute of Business Cycles and Prices in 1929, just in time to observe the unfolding Great Depression.

Here Kalecki made two key contributions. First, he and the economist Ludwik Landau managed to estimate the national income of Poland for the key years of 1929 and 1933 – which was one of the first attempts to calculate what now is considered a country's GDP. And then in January 1933, the 33-year-old self-taught economist published Próba teorii koniunktury (An Essay on the Theory of Business Cycles), which mathematically proved his theory of effective demand.

Published three years before Keynes’s General Theory, this seminal work laid out the theoretical foundations behind macroeconomics, a paradigm shift that would dominate economic thought and policy-making for the next 40 years.

Kalecki continued to develop his theory on capital accumulation cycles through a series of essays before assembling all the parts in an article published in the journal Polska Gospodarcza (Polish Economics) in 1935. “He opens by attacking the orthodox theory at the most vital point,” wrote Joan Robinson, a leading macroeconomist who worked closely with Kalecki in Cambridge.

“The view that employment could be formal economic education, but what reduced by cutting money wage rates.” he did study was largely Marxist theInstead, he showed how an increase ory. Although Keynes’s theory offered in investment in technology or infra- a departure from the orthodoxy, he still structure by a private enterprise could remained faithful to the fundamental increase overall employment. levers behind laissez-faire capitalism.

A keen observer of the mass infra- Kalecki, however, took a more political structure programme occurring in Nazi view. For most of his career, he mainGermany at the time, he extended tained that political motives would this logic to posit that unemployment always undermine and corrupt the free could also be reduced through deliber- movement of capital. These philosophiate government policy, which would, in cal differences seemed to also infuse turn, lead to an increase in overall con- their contrasting scholarly contribusumption. It was not quite as polished tions. And yet Keynes not only invited as Keynes’s Multiplier, but the frame- Kalecki into his Cambridge team but work was there. "Its sharp and concen- also supported his research.

On Kalecki’s part, he never brought trated statement,” Robinson reflected some 33 years later, “provides a better up his claim to first authorship or any introduction to the general theory of other considerations of ego. “The interemployment, interest and money than esting thing is that two thinkers, from any that has yet been produced. But sta- completely different political and inteltus, language, nationality and even eth- lectual starting points, should come to nicity would conspire against Kalecki in the same conclusion,” added Robinson. the mid-1930s. His theory was not met “For us in Cambridge it was a great comwith the same enthusiasm as Keynes’s fort.” In this environment, surrounded world-changing opus, although his by the sharpest minds in economics, 1933 presentation to the Econometric Kalecki added the last touches to his Society in Leyden contributed to his theory in 1939. His book Essays in the winning the Rockefeller Scholarship. Theory of Economic Fluctuations casts Nazi Germany threatened from across a dark shadow over his very own theory the border, while at home, his closest of capital accumulation cycles, namely colleagues at the institute were cen- its likelihood of sustaining endless ecosured by the authoritarian ‘Sanacja’ nomic growth. He all but concludes that regime in Warsaw. Kalecki resigned out prosperity can never last. of protest and left in January 1936 for Kalecki saw out the war years at the Stockholm with his wife Ada. Oxford University Institute of Statistics, helping out the war effort by researchTwo peas in a pod ing war financing, rationing and the After his epiphany in Stockholm, Kalecki mobilisation of labour and matériel. boarded the next ship to England. Britain had provided the Kaleckis refHe arrived in Cambridge almost out uge, for had they remained in Poland, of the blue. No one had heard of him. they would have almost certainly perBut he was quick to make an impres- ished in the Holocaust. After the war, sion with his quirky ways. “He cared Kalecki returned briefly to Poland little for party manners or small talk before taking up the role of Assistant and plunged directly into the sub- Director in the Economic Department ject,” Robinson wrote. “As we talked, of the UN Secretariat in New York.

I felt like a character in a Pirandello He held that position until 1954 when play, I could not tell whether it was his supposed leftist leanings were quesI who was speaking or he.” tioned under the wave of McCarthyism.

Keynes, on the other hand, was And so he left the American Dream for said to be less enamoured by Kalecki’s the revived communist experiment takarrival. He would fuss over semantics ing place in post-Stalin Poland. in Kalecki’s methodology or prose.

He was appointed as an economic The feeling seemed to be mutual. At adviser to deputy Prime Minister Hilary one stage, Kalecki and his wife were Minc and held various posts in the invited to tea at the Keyneses’ home Planning Commission until his resignain Bloomsbury, London. There they tion in 1963. He was forced out after were charmed by Mrs Keynes, the criticizing the outrageous economic renowned prima ballerina Lydia Lopokova. Afterwards, Kalecki purportedly described the meeting as follows: "The tea was good. Mrs Keynes was like a Cambridge don, and Mr Keynes like a prima ballerina." Perhaps, they were never destined to get on. They were, after all, very different personalities with completely different backgrounds. Keynes was a highly-educated, urbane Englishman from the upper tiers of society. Kalecki, a Polish Jew, had no

‘Mrs Keynes was like a Cambridge don, and Mr Keynes like a prima ballerina’

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growth targets demanded by successive five-year plans. The final straw came when First Secretary Władysław Gomułka responded to his analysis on history & the Eighth Five-Year Plan (1966–1970) culture with an anti-intellectual rant: “Professors with titles, grown-up people, instead of conducting research, or helping, write nonsensical theses.” He retreated to the School of Planning and Statistics in Warsaw (Szkoła Główna Planowania i Statystyki: SGPiS). But not necessarily to teach. “Kalecki was not a very good teacher,” says Prof. Jerzy Osiatyński, who studied under Kalecki at SGPiS. “Not being an academic, he would give courses only on what he had himself developed.”

Two lectures in the academic year were apparently too much of a distraction for the master economist. He compromised by filling half of his lectures with Q&A sessions. “In the course of the lectures, when he was asked a question, he would simply repeat what he British econohad said before,” continues Osiatyński. mist John Maynard Keynes once said, “And if the person who asked said “Capitalism is the that they still did not understand, he astounding belief that would repeat the same a second time. the most wickedest of However, in personal contact, he would men will do the most wickedest of things go to great lengths to explain what for the greatest good he meant and why. Here, he was very of everyone.” patient and very committed.”

After a heart attack in 1965 and just when his health began to further deteriorate, he and his work came under fire during the student unrest in March 1968.

His own students at SGPiS accused him of being non-Marxist and bourgeois.

And when that was not enough, he was swept up by the ensuing anti-Semitic furore that was stoked by Interior Minister Moczar and Gomułka. Having been declared too ‘red’ for America and not ‘red’ enough for the Planning Commission, he had now become, it would appear, too Jewish for Gomułka’s Polish Republic of Poland. Two years later he died on 18 April 1970. It was said to be his heart that failed him in the end.

Discussion and conclusion On his 70th birthday, one year before his death, Kalecki received a letter from J. K. Galbraith, the eminent Canadian economist. "I wonder if you realise how much those of us in the world around have owed to the intellectual capital you have provided over these past decades,” Galbraith wrote. “I believe that your position in the world is unrepeatable." Perhaps, Kalecki himself better summed up his life and relationship with the world in the conclusion to his second major tome, Essays in the Theory of Economic Fluctuations.

“Doubtless many people will consider this theory paradoxical. But it is not the theory which is paradoxical, but its subject – the capitalist economy.”

by William Hastings Burke

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Tokarczuk’s Flights reaches a whole new level

Culture & history

For the first time in history, a Polish writer won the Man Booker International Prize in 2018. Olga Tokarczuk and her translator Jennifer Croft were awarded £50,000 prize for Tokarczuk's novel Flights. Tokarczuk, who was born in Sulechów in 1962 and graduated from the University of Warsaw with a degree in psychology, describes her writing as "constellation novels" because of her tendency to present the stories in a way that allows readers to find their own interpretation from the content. A recipient of many other literary awards, a few of her notable achievements include the Nike literary award in 2008 (as well as being a four-time nominee) and the Uznamska Literary Award in 2012. Her books have been translated into over 15 languages worldwide. The Guardian recently quoted Tokarczuk's opinion on the difference between the literature of Western and Central Europe: “Reading English novels I always adore the ability to write without fear about inner psychological things that are so delicate. In such a form you can develop a story in a very linear way, but we don’t have this patience. We feel that in every moment something must be wrong because our own story wasn’t linear.” The novelist's books bring a historical quality of Poland to life while delicately weaving images of ancient religion and culture into each new plot she writes. by Taylor Chin

photos: Matt Crossick (PA Wire)

Polish author Olga Tokarczuk (left) pictured with translator Jennifer Croft after winning the Man Booker International Prize 2018, for her book Flights, at the Victoria and Albert Museum in London.

An award-winning Polish author has claimed an international literary prize for her novel.

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80 culture & history

#NeonMuzeum: an Instagram-able flash from the past Warsaw’s Neon Muzeum captures the story behind Poland’s unique neon signs and artistic designs that have become urban icons of the communist era.

Tucked away in Warsaw’s east side is

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.

a brick building that’s buzzing with remnants of post-WWII Polish urban art.

A first of its kind in Europe, the Neon Muzeum has preserved Cold War era neon signs and electro-graphic designs.

Founded in 2005 by Ilona Karwińska, Neon Muzeum Director, the institution prides itself on documenting and saving the last surviving pieces of the ‘great neonisation’ campaign which spread across the former Communist states of Central and Eastern Europe. The permanent collection has found a new home in the Praga District in the middle of the industrial and creative space of Soho Factory where numerous bright neon signs glow seven days a week. At the start of the tour around the museum, visitors learn that Karwińska was fascinated by the neon signs still flashing in Warsaw in 2005 which she said were “remnants of another time, curiously still denoting good, services, and products long since gone.” So she began a photographic documentation project entitled ‘Polish Neon’ and this inspired her to continue her journey throughout Poland in search of these illuminating creations, which, in turn, would spark the idea behind the museum. With thousands of tagged posts on Instagram, the museum is quite the destination for taking artsy photos. However, the cultural institution provides more than

just a colourful urban backdrop. The museum hosts special events, workshops, educational programs, film screenings, guided tours, and special after-hours tours. From the discovery of the chemical element to becoming an intrinsic component of 20th-century Polish design, the Neon Muzeum is a brilliant addition to the capital’s attractiveness in every sense of the word.

by Monica Zielinski

‘The neon signs were remnants of another time, denoting products long since gone’

photos: Neon Muzeum

The Neon Muzeum is

open seven days a week and offers private guided tours by reservation.

It is located at Building 55, SOHO Factory, ul. Mińska 25, Warsaw.

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Resourcefulness sparks ingenuity By combining cultural practices and building its experimental identity, a designer is strengthening Poland’s brand.

With a penchant for

resourceful creativity driven by a focus on utility, Tomek Rygalik is rapidly establishing a name for himself as an icon of modern Polish furniture design. He established Studio Rygalik 13 years ago and has since supplied projects for Cappellini, Ghidini, Heineken, Ikea, Moroso, Polin Museum, Siemens and his recently established brand Tre Product.

Operating out of Warsaw, Rygalik puts a spotlight on the interaction between design, space, and function – ideals which have formed the foundations of his career. Rygalik’s family background was in engineering, and it was a combination of this and his keen interest in social issues which prompted an interest in design – he studied architecture and urban planning at the Technical University of Łódź, and Industrial Design at the Pratt Institute in New York, where he was awarded the Pratt Circle Award for outstanding achievement in his field. Despite obtaining a position at the Royal College of Art, upon earning his MA, Rygalik eventually chose to pursue an independent career, valuing the importance of fresh, innovative design and new approaches.

In fact, it was his observations in childhood of his father forging items hard to obtain in Communist Poland that led him to conclude that overcoming difficulties should be essential features of design. Above all, though, his work is site-specific. Studio Rygalik – which he runs alongside his partner Gosia Rygalik – interacts with the needs of its users and with attention to production and commercial potential. And, as it stands, this approach is certainly paying off. The studio has been featured in international magazines such as Icon, Wallpaper, Blueprint, New York Times, Financial Times and Forbes.

Tomek Rygalik's

studio deigns an assortment of furniture and limited edition products. From skilfully constructed solid structures to artistically thoughtprovoking creations, Rygalik’s team blends cultural influences with minimal modernism. Tre Product, a brand established

by Rygalik, encompasses the notion that simplicity is key and aims to produce simple, honest products that are timeless solutions for everyday life.

by Juliette Bretan

photos: Studio Rygalik

Over the last few years, pieces by Stu-

dio Rygalik have been exhibited in Berlin, London, Milan, New York, Tokyo, Paris, Valencia and Vienna.

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impressions

Outside looking in Building a strong country brand opens the door to limitless possibilities in terms of business and growth potential.

So how is Poland perceived abroad?

To gain some perspectives on how the rest of the world views Poland, we contacted some journalists in Europe to gauge their opinions.

photo: JazzIRT; illustration: cosmaa

Poland has been

hasn’t experienced recession over the last decade and is outpacing the euro region in terms of growth. Real GDP increased by 4.6% year on year in 2017, the highest result since 2011, and is set to be confirmed at around 5% for 2018.

The Polish economy is now in a sweet spot with almost full employment.

Regarding business services, 36% of Americans do not believe that the job market in this sector is the fastest growing area of the Polish economy.

In recent years the business service sector has become one of the largest employers in the country, employing over 270,000 people. According to ABSL, the Association of Business Service Leaders in Poland, the number of employees in the Polish business services sector is expected to exceed 300,000 in early 2019.

too humble in telling its story according to Carlos E. Piñerúa, the World Bank Country Manager for Poland and Baltic States.

In a recent PT Live interview, Piñerúa said, “Poland has to go out and tell the world why is it so successful. There’s a success story here to be told and it is important to let people know why Poland is where it is.” He is not the only one. Brent Watson, Managing Director Making the grade at Goldman Sachs Poland has seen the The study also revealed that in terms country change in terms of technology of education, 91% of Americans do not and infrastructure over the last 20 years believe Poland ranks in the top five for and is struck by its drive for change educational attainment, as confirmed and innovation. “Poland has become a by OECD data. And 31% of Americans key source of skilled talent that global believe that Poland's population is not firms have recognised and invested in,” well-educated. The study also found he said. “It’s been amazing to see.” that more than half of US adults (51%) These are not just individual com- do not know that US financial instituments which show that the world’s per- tions are outsourcing jobs to Poland. ception of Poland is very different from Contrary to this belief, as a result of modern reality. A survey conducted in its highly-educated workforce, Poland the US – a great friend of Poland with is one of the most attractive markets a large Polish diaspora of 10 million peo- for outsourcing. Today in Poland there ple – leads to exactly the same conclu- are more than 500 foreign companies sion. The Harris Poll commissioned by with Business Process Outsourcing PZU, the largest financial institution in (BPO), Shared Services Centres (SSC) Poland and CEE region, surveying over and Research and Development (R&D) 2,000 US adults, showed that a majority hubs, including US financial institugrossly underestimates Poland’s inno- tions such as City and JP Morgan Chase plus high-tech companies like vation, education levels and economy.

Google, Facebook or Amazon.

Misconceptions “Building a nation brand is not an Nearly two-thirds of US adults (64%) easy task but the good thing about believe that Poland’s economy is heav- Poland is that the success story is really ily based on agriculture. The facts are here,” says Richard Stephens, Founder quite the opposite – in 2017 nearly 58% and Editor of Poland Today, emphasisof the total number of employees in ing that the company – as an EnglishPoland worked in services, 31% in indus- language independent media – is often try and only 11% in agriculture, accord- approached by foreigners, both busiing to European Employment Services. ness people and journalists, who want According to the survey from 2018, to better understand Poland. “This close to half of Americans (47%) think shows that there is still a lack of proper there are not a lot of job opportunities communication abroad about Poland in Poland. However, Poland is actu- but there is an appetite for this knowlally the only European country that edge.” by Sylwia Ziemacka

Rob Savelberg De Telegraaf, Netherlands Rob Savelberg is a correspondent for

De Telegraaf as well as Elsevier Weekblad in Amsterdam.

Poland is perceived as the biggest and most important country in Eastern Europe. It has a dynamic, growing economy, with beautifully re­ stored cities, good restaurants, and vivid cultural life. The Netherlands will not forget how Poland suffered in World War II and under communism.

Solidarność in the 80s was the first big step toward freedom and democracy in the former Soviet bloc. But now there are serious concerns about the dangers to democracy and freedom in Poland. The attacks against independent judges and the media provoked a strong counter-reac­ tion in Poland and Europe. Hate speech in poli­ tics – plus the state-controlled [press] and social media – brings a strong polarisation in society.

The murder of the Gdańsk mayor was a tragic event that should be a wake-up call for Poland.

Friedel Taube Deutsche Welle, Germany Friedel Taube is an editor and reporter for Deutsche Welle, Germany´s international broadcaster. He is based in Berlin.

Even though Poland is our neighbour and Berlin – where I am based – is located only 80 km from the German-Polish border, our neighbours [Po­ land] don’t seem to have a top priority for Ger­ man journalists and their news outlets. On the one hand, journalists in Germany are impressed

by Poland's economic performance throughout the last decade, but on the flip side, with the Law and Justice party coming into power in 2015, there are also rising concerns regarding racism, xenophobia and the rule of law in Poland.

Włodzimierz Wodo Freelancer, Lithuania and Russia

Hilbrand Rozema Nederlands Dagblad, Netherlands

Włodzimierz Wodo is a former Baltic

Hilbrand Rozema is from Groningen, Netherlands and is an author of four volumes of Dutch poetry, as well as a journalist. He is a reporter and columnist for the Dutch daily, Nederlands Dagblad.

and CEE correspondent of the Russian political and business daily, Kommersant. He currently resides in Vilnius, Lithuania.

Because of the historical past, Polish-Russian relations have always been complicated. Despite all this, companies from both countries do their business, and Polish-Russian film and song festivals are held. Most Russians consider Poles as Slavs and, for that reason, 'almost Russians.'

Martin Ehl Hospodářské Noviny (Economic Daily), Czech Republic

In the Netherlands, there is a high and mostly positive awareness of the very many Polish workers in the greenery, agro and flower bulb sectors. On the extreme populist right side of the spectrum in our parliament, Poles are sometimes painted in shrill tones by populist politicians.

But on the whole, the many newcomers, several of whom are staying on for longer and have families, are welcome. There is some worry about isolation from society and Dutch language skills in these families, and it seems the parents work so much they hardly see their kids. Slowly, Poland is becoming more of an interesting and culturally rich place for a holiday or city trip destination.

For example, my Dutch friends went to Gdańsk and saw the legacy of Solidarność; others went searching for 'barnsteen' amber, along the seashores and cycling. I also visited Białowieża Forest, and my wife Petra and I celebrated the New Year with friends in Bielsko-Biała area, in Jaworze! We walked in the Beskid Mountains and visited Wisła.

Martin Ehl is the Chief Analyst of the

Czech economic daily Hospodářské noviny.

He also has a regular column on Central Europe for Transitions Online and is the co-editor of Visegrad Insight magazine.

The popular view is that Poland is a trouble­ making neighbour who is exporting food of bad quality and the conservatives and Catholics govern the country, which is hard to com­ prehend. Knowledge about Poland is much lower among Czechs than general knowledge of Poles about Czechs. There are very few journalists who follow Poland closely and who have a broad idea of what is going on there.

Luca Veronese Il Sole 24 Ore, Italy Luca Veronese is responsible for the

foreign affairs section at Il Sole 24 Ore and covers Spain, Portugal, Hungary, Serbia, Croatia, Albania and now Poland.

In general, Poland is perceived as a reliable coun­ try, an interesting tourist destination and a great economy with excellent relations with Italian companies. The political line of the current rightwing government – in Europe and in the man­ agement of power at home – is, however, raising some doubts about the democratic stability of Poland by the press.

Þórður Snær Júlíusson Kjarninn, Iceland Þórður Snær Júlíusson is the editor-in-chief of Kjarninn, a digital media company in Iceland that focuses on in-depth writing. He previously worked for Iceland´s largest daily newspapers Morgunbladid and Frettabladid.

Poland is perceived in a complex manner.

It is seen as a country doing better economically in recent decades but also as a country that is taking steps backwards regarding civil liberties, and intolerance towards minorities and basic democratic practices.

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impressions

Bogdan Nedea Foreign Policy (Romania) and Balkan Insight, Romania Bogdan Nedea is an independent analyst based in Bucharest and a contributor for the Romanian version of Foreign Policy magazine, as well as Balkan Insight.

I am based in Romania and there is a perceived closeness towards Poland. Both countries escaped communism approximately at the same time and started their democratic path. Furthermore, the fact that both countries are essential in the defence structure of NATO in Eastern Europe, and that we have a strategic partnership, weighs heavily in the relationship between the two countries. Last but not least, the speech in Ro­ mania that Mr Tusk, President of the European Council, delivered in Bucharest on the occasion of the beginning of the Romanian presidency of the EU Council, left an important impression on both the public as well as the media.

In 2014, Poland Today flew journalists from around the world to Warsaw to attend our 'Poland Transformed' conference marking the 25th anniversary of the modern market economy in Poland.

In September 2019 we will once again bring international journalists here for the 30th anniversary.

Here are some of the journalists who participated in the original tour.

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impressions

Under the hot Dubai sun Booking a one-way ticket to Dubai required a leap of faith but resulted in a new life in the ultimate man-made City of Gold.

Sabina Sienko is a digital marketing consult-

ant specialising in social media management.

She grew up in a small village near Rzeszów and moved to Lublin where she earned an MA in Pedagogy from John Paul II Catholic University, along with a postgraduate degree in HR management from the University of Economics and Innovation. She is the author of a blog that documents her life and unique experiences in Dubai. When she’s not blogging or practising yoga at the beach, she loves nothing more than to try out new cuisines or attend the ballet and opera.

the driver lets women go before men.

On the metro, there are separate pink railcars for women and children only. In some places, there are even separate queues for women. "From the perspective of a white European woman, I really can say that I am treated far better here than back in the UK," she said.

It’s not all fun in the sun, however.

The constant air conditioning and the risk of sun exposure are a constant concern. The salary bias based on ethnicity walked, she was stopped by four cars is also quite confronting. But all in all, asking if she needed help or wanted Sienko has very few complaints about a ride. The driver of the fourth car living in Dubai. In fact, she has been kindly pointed out that she was walk- pleasantly surprised by the culture of ing alone in 41-degree heat without a tolerance and peaceful coexistence hat or sunglasses. "I still didn't accept that she has found in her diverse workhis offer, and managed to get to the place. In an office of 20 people, the mall,” Sienko recalls. “I was all red and group consists of 12 different nationaliextremely dehydrated. When I think of ties and six religions. Sienko describes it now, I laugh every time as I realise it as an "atmosphere of understanding how funny it must have looked to all of and mutual respect.” She also loves those people who stopped and to oth- the variety of global cuisines on offer in Dubai – it’s ranked number eight in Sabina Sienko was no stranger to ers passing by." living abroad. She had lived in the UK the world for food diversity accordfor four years and travelled the world. Culture shock ing to an analysis of restaurant data in But she never imagined she would The weather was not the only startling Google Maps published by Bott + Co. end up moving to Dubai when she first change in Dubai. "I know that Dubai is Her favourite place for local Emirati stepped off the plane in May 2015. A branded as a shopping hub," Sienko food, specifically a dish called ‘mathweek-long trip to visit a friend was all it says. "But [sometimes] you want to just lootha,’ is a restaurant called Sama took for her to make up her mind. After go inside the shop and wander around Al Bawadi in Abu Dhabi. "I only have further encouragement from her friend, as you can in Poland. In Dubai – espe- it from time to time, but there is no Sienko booked a one-way ticket to the cially in perfume or cosmetic shops – other local dish that I enjoy more.”

United Arab Emirates (UAE), hoping you can't do this. You walk in and then While Dubai is a wonderful place to work there for about a year. One bam! Ten sales assistants surround you for both Sienko and her husband to year quickly stretched into almost four. at once." Another difference she has live together, Sienko hopes to return to During that time, she fell in love with noticed is a reassuring sense of safety Poland eventually. "It has been almost and married an Egyptian man. everywhere, from the streets to the eight years since I left Poland, and "The first noticeable change for me bus to shops. "I felt it right away when I don't know whether I will be back at all," was the weather, of course," she says. I moved here. You can leave your phone she says. "In October last year, I went "In Dubai, it's either summer or very hot in the middle of a shop and come back with my husband to Poland and he was summer." In a funny anecdote, Sienko a few hours later and you will certainly really amazed by our golden autumn explains that she once tried to walk get it back." Finally, one of the biggest and the food, so I am hoping we could for 15 minutes to the shopping mall. At differences Sienko has observed dur- move back there one day. ‘Inshallah’, as first, she didn't see anyone else out- ing her time in Dubai is the way that they say in the UAE, ‘if God is willing.’” side but thought nothing of it. As she women are treated in society. On buses,

by Taylor Chin

‘Dubai is branded as a shopping hub, but sometimes you want to just go inside the shop and wander around but you can't’

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INTERNATIONAL PRESS TOUR

Poland: from Emerging to Developed.

After 27 years of uninterrupted rise, Europe’s fastest growing economy levels up to join the 25 most developed countries of the world.

Starting from October 2018 Poland is classified as Developed Market in FTSE Russell’s global equity benchmarks. Thereby it is the first country to achieve a status promotion from Emerging to Developed by the global index provider in nearly a decade.

To learn more, join our

INTERNATIONAL PRESS TOUR

in September 2019

More information: poland-today.pl

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IMPRESSIONS

‘I didn't choose Poland, Poland chose me’ Loved by some, disliked by others, British filmmaker Patrick Ney’s internet videos promote Poland in impactful, sometimes controversial, ways.

‘The films that I make have to in some way help other people and just create love’

In honour of Poland regaining its

independence 100 years ago, Patrick Ney filmed a special video titled “Sto Lat Polsko! Wiadomość od obcokrajowców do Polaków” (100 Year Poland! A message from foreigners to Poles). In the video, Ney aims to show that immigrants are a part of Poland and celebrate the country alongside natives.

After eight years of living in Poland, Patrick Ney has built quite an internet reputation. His Facebook videos on Polish history and culture have garnered millions of views. Occasionally people recognise him on the street and say, “Hey, you’re that guy from YouTube!”

Born in Reading, UK, he graduated from Nottingham University with a degree in politics. Most of his jobs in Britain were civil servant roles: he worked for a member of Parliament, a senior minister he describes as "formidable" and "hugely intellectual," and in various government ministries. Ney visited Poland many times for holidays before deciding to permanently move to Warsaw to be with his then girlfriend. After various roles at the British Embassy, the British Polish Chamber of Commerce and in business, he is now a full-time filmmaker with over 100,000 followers on Facebook and YouTube.

One month he covers the selfless death of Maximilian Kolbe, the Franciscan monk who traded his life to save another in Auschwitz, the next he makes a video about the strange differences in animal noises between the English and Polish languages. His most popular film to date has been a short biography of Witold Pilecki, the Polish soldier who volunteered to go into Auschwitz, which got 9.5 million views.

But his personal favourite is a guerilla marketing film for Poland, ‘Poland is COLD and BORING and NOTHING ever happens’, which received 2 million views... at no cost. "Thank you for this beautiful video, and thank you for showing the true history of Poland.

It is amazing that you uncover small pieces of Polish history," writes one fan. “Go back to England” says another.

Although a large proportion are positive, these two comments summarise the polarisation among his viewers and, in a larger sense, in Poland. One theme remains constant: his love for his newfound country. In his recent TEDxKazimierz talk he said: "I always felt that I didn't choose Poland; Poland chose me." That love for this country was sorely tested when he suffered a serious fracture of the skull in an attack by an unknown assailant in the centre of Warsaw. He regained consciousness in a Polish neurosurgical ward and had to make a difficult choice whether to have an operation on the major blood swelling compressing his brain, or leave it be.

"All of the stuff that I was doing, all of the work that I was obsessed about before this attack… none of that mattered at that particular moment. The only thing that mattered were the people I loved," he shared with his TEDx audience. "Now the films that I make … have to in some way help other people ... and just create love." He now focuses on his films'

production with a renewed energy and hopes that at the end of his life, all his work will have been worth the effort.

Interview with the PM "My name is Patrick, I'm a filmmaker, today is Friday, and I've just found out that I've got an interview with the Polish Prime Minister on Sunday. I haven't got very long to prepare," said Ney in a short video-documentary detailing his preparation process for the most important interview of his career. Unfortunately, not everyone responded as enthusiastically as Ney to the final interview, and the internet exploded with criticism from enraged viewers. "My mistake was that I kind of presented him as if he was a World War II hero, and I probably should have had a little bit more journalistic rigour," Ney said. Morawiecki’s statements that he was arrested and beaten whilst active in the Solidarity movement were derided by many viewers – unsurprising given the polarised political scene in Poland – and clearly hurt Ney. Despite admitting he didn’t push Morawiecki as a journalist would have done, he is adamant that he didn’t set out to conduct a ‘political’ interview. He was evidently fascinated by Morawiecki’s story: "He's the teenager who became the rebel who became the business owner who became the bank owner who became the prime minister. That's a story." His frenetic work rate sometimes costs him personally. He broke a promise to his family to spend the weekend with his two daughters, Zofia and Mia, to interview the PM. "I said to my wife, 'After the birth of our daughter, I will make no more films until the end of the year.'

Within a week, I was already working on my next film." Asked if he'll ever retire from creative endeavours, he replies, "Never, ever, ever. Forever, and ever and ever… Maybe it'll be singing, or books, but I'll be creating something right up until five minutes before I pop my clogs, 100%." He has big plans: he aims to start a new channel to show Polish history in a non-partisan way, focusing on major figures who he sees as heroes, and he is in talks to make a short series covering 350 years of history, with a focus on World War II. Whether he will have an impact on Polish history remains to be seen, but it’s clear that Ney is a man with several plans. by Taylor Chin

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90 impressions

South African experiences Poland with newborn eyes From the change in scenery to the daunting task of learning a Slavic language, Kershen Naidoo embraced his journey towards establishing a new life in Warsaw.

Kershen Naidoo was born in Durban,

a coastal city in eastern South Africa, which is known for its African, Indian and colonial influences. The history of Kershen’s Indian roots began with his great-great-grandfather, who was taken from India to work as an indentured labourer in South Africa. Kershen grew up in a segregated neighbourhood in the 1980s and didn’t identify racial differences until he left his large Indian community. Despite the inability to interact with people of other colours during his childhood, Kershen developed empathy for non-native English speakers through his travels abroad. Bitten by the IT bug, Kershen finished his computer science studies in South Africa and travelled to the UK before moving to Spain and visiting other European countries as well as the United States. After working for an international AIDS/HIV conference and a healthcare organisation which allowed him to see the world, Kershen relocated to Warsaw where he lives with his wife Joanna and 3-year-old son Jeremy. He currently works as the Business Development Manager at e-point, a leading internet software house.

Do you remember your first day in Poland?

I arrived on the 5th of May 2014, a year after meeting Joanna and five days before my birthday. The weather was nice; it wasn’t hot, but the sky was clear and the temperature was cool. It was an interesting experience because I came without knowing anything about the country. I just wanted to see it like a baby with newborn eyes and not tainted by reading things on the internet.

What was your first impression of Poland?

My first impression was that Warsaw was very clean. I felt that it was organised and it was really flat, compared to South Africa which has lots of hills and wide roads, but it’s not as claustrophobic as cities in France or Spain or Italy, which is nice. The architecture is also quite interesting and really unique.

Did you struggle with the language barrier?

I’m a very empathetic person and I can read the person’s body language and during my travels abroad, that never scared me until I heard someone speaking Polish and I realised I wasn’t picking up anything. My wife never spoke Polish to me, so to me, I’ll use this analogy: it’s like tuning a radio and first, you get the static and suddenly you pick up a word or two. That’s how Polish is to me.

What are some similarities between Poland and South Africa?

Drinking. South Africans drink a lot of beer and a favourite pastime is hosting a ‘braai’ which is like a barbecue or campfire. Poles have similar charcoal grills and spend time with close friends.

It’s enjoyable and everybody has a great time. They also love sausages

‘I’m seeing a lot of people of colour in Poland everywhere and it’s a great sign’

called ‘boerewors,’ which have cloves, coriander, and other spices.

Have you had any strange experiences in Poland?

So, I started running marathons when I came to Poland because, in South Africa, you have to be careful where you run in public and stay on the safe side because of crime. When I moved to Warsaw, I decided to go for a run one day and I passed another runner going in the opposite direction and he waved at me. Another runner passed and did the same thing, so I wasn’t sure if I should wave too. My wife said they probably wave to give each other motivation. Two weeks later, I was running on the side of the road in the rain and a car pulled up beside me and the guy was talking to me in Polish and gesturing if I needed a lift, but I said ‘no’ and continued running. It was interesting to me because for the most part, Polish people don’t really look at you in the eye or worry about you. But as a runner, I suddenly made a connection with another human being in Poland.

Have you encountered any difficulties as a foreigner?

It’s difficult to be a person of colour in Poland. Don’t get me wrong – it’s not that there’s racism everywhere but you tend to worry about how people perceive you. Being this skin colour, it’s easy to mistake me for an Arab, or from the Middle East or even Latin America.

I remember going to the supermarket for the first time in Poland and I spent over an hour trying to figure out labels on products and I could tell people were staring at me and I felt like the only person of colour in this place. Nowadays, I see a lot of people of colour in Poland in the supermarkets and everywhere, and it’s a great sign. It’s a sign that the country is changing and moving forward.

What are your plans for the future?

Currently, we really like living in Poland. I think that Poland is at this precipice of change. There’s a lot of international businesses looking to invest in Poland. I think if they get the pollution sorted out and if the country continues to grow in the right way, it’s very possible that we will stay here longer. interview by Monica Zielinski

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