Polish market No. 12/ 219/2014

PU B LISHED SIncE 199 6 No. 12 (219) /2014 :: www.polishmarket.com.pl

pearLs poLish economy

of the

finance innovation export

Artur Borowiński President of ComPensa

zaufanie

bezpieczeństwo

wygoda inwestycje szybkość

nowoczesność www.mazowieckie.com.pl

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Law&Taxes

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Iwona Sroka, PhD, President of the Management Board of the Central Securities Depository of Poland: 2014 Success in the difficult year.

Innovation

Paweł Tamborski, President of the Board of Warsaw Stock Exchange: Poland - a good investment opportunity in Europe

Izabela Leszczyna, deputy minister of finance and government commissioner for information and financial education: 2014 and prospects for the year ahead Krzysztof Pietraszkiewicz, president of the Polish Bank Association: We need stronger mechanisms for building confidence between business and the state.

Artur Borowiński, President of Compensa TU SA Vienna: Stable & credible Prof. Elżbieta Mączyńska, lecturer at the Warsaw School of Economics (SGH), president of the Polish Economic Society: Ethos in economics and finance 25 years of transformation Prof. Małgorzata Zaleska, member of the Board of the National Bank of Poland: Changes in Polish exports Maciej Proliński: New measures supporting development needed

Marcin Petrykowski, Managing Director and Regional Head for Central and Eastern Europe, Standard & Poor’s Ratings Services: An almost mature market.

Anna Stasiak-Apelska, director of the Warsaw office of the Gajewski Trawczyńska I Wspólnicy Law Firm: What can be an object of cession?

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Events

Finance

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From The Government Information Centre

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Export

10

From The President’s Press Office

Pearls of the Polish Economy

Our Guest

SPIS TREŚC CONTENTS

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Piotr Liszek, Deputy President of the Board of Petrax Sp. z o. o.: We are making ad hoc adaptations to ever-changing conditions.

With or without the euro?

12th Pearls of the Polish Economy Gala The 63rd World Exhibition of Innovation, Research and New Technologies BRUSSELS INNOVA 2014 Andrzej Soldaty, General Manager, Festo Sp. z o.o.: Experts in industrial automation solutions Hanna Krajewska, President and CEO of Municipal Water Supply and Sewerage Company in Warsaw JSC (“MPWiK”): People matter most We are doing a good job The driving force in the preparation of new technologies Waldemar Giersz, President of Modecom: Modecom the top quality Lekam - one of the fastest growing pharmaceutical companies in Poland 20th Energy Conference EuroPOWER Katowice Special Economic Zone has been steadily building its competitive advantage 7th European Economic Forum The Heritage Trade Fair – conservation and restoration of art collections and monuments Marek Sawicki, minister of agriculture and rural development: Food exports – a pillar of the Polish economy 12th Congress of Polish Exporters

Polish Market, a monthly magazine, which has for 18 years served Poland by promoting its economic accomplishments, successful entrepreneurs and splendid culture, wishes You a happy Holiday Season and a prosperous New Year.

polishmarket.com.pl

Cultural Monitor Senator Józef Pinior: When politics means calling...

Maciej Proliński: A great story and its “barefooted listener” Maciej Proliński: Royal Castle a museum without barriers Maciej Proliński: A guide through Iran Małopolska’s delicacy: The region’s showcase Economic Monitor

Okładka / Cover: Artur Borowiński Zdjęcia w numerze / Photos on issue: www.shutterstock.com

SPIS TREŚC CONTENTS

Culture Food Industry

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December /2014

President: Krystyna Woźniak-Trzosek

Writers/Editors: Maciej Proliński, Jan Sosna, Sylwia Wesołowska- Betkier, Grażyna Śleszyńska, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz,

Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła

Contributors: Agnieszka Turakiewicz

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Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Marcin Haber m.haber@polishmarket.com.pl Managing Editor: Rita Schultz rita.schultz@polishmarket.com.pl

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Editorial

Favourable prospects

T

he year 2014 was quite good for the Polish economy, although many predictions and forecasts, both pessimistic and optimistic ones, did not come true. The latest figures, however, inspire optimism and come as a surprise to most analysts. But they also raise further question marks over the future.

Here is a handful of figures. While preparing the 2014 budget bill, the government assumed that the GDP would grow by 2.5%, inflation would stand at 2.4%, wages would increase by 3.5% in nominal terms, employment would fall by 0.1% and private consumption would rise by 4.6%. After the GDP growth rate reached 3.5% in the middle of the year, “realists” started to revise their forecasts. They expected, however, that the pace of growth would slow. Some members of the Monetary Policy Council were ready to revise up their projections to 3% for the full year, or even 3.3% in … 2016, to justify their opposition to a further relaxation of the central bank’s monetary policy. The European Commission’s view was similar. In May, it projected that Poland’s GDP would grow by 3.2% this year and 3.4% next year. In September, the Commission announced that Poland’s economic growth would slow from 3% this year to 2.8% next year due to the situation in the euro zone and tensions beyond the eastern border.

But the expectations that the Polish economy would slow or stagnate were proved wrong by facts. The Central Statistical Office (GUS) reported that in the first three quarters GDP grew by 3.3% and said the figure for the full year would most likely stay at the same level. Importantly, domestic demand, including private consumption, contributed the most to this good result. Private consumption is now growing at a strong rate of over 2.5%. It is driven by a 3.5% rise in wages and by deflation – a decrease in the general price level – noted in Poland for the first time in 58 years. Investments, which grew by 14%, performed surprisingly strongly in this situation as did employment, with no seasonal drop recorded at the end of the year, which is usually the case.

Gloomy predictions that Polish exports would slump as a result of the Ukrainian crisis and sanctions on trade with Russia also turned out premature. The September balance of payments data were stronger than expected because the current account deficit was only EUR235 million against the EUR645 million forecast for September and the EUR887 million recorded in August. However, this report somehow escaped the attention of the media and some analysts.

It seems to me that the most interesting of the current commentaries is the one in the November projection by analysts of the Union Bank of Switzerland (UBS). Their opinion is that Poland has more diversified economic base than other countries in the region and that its economy has a potential to grow by 3.5% in the long term. UBS also points to the fiscal correction, strong investment trend and good financial condition of exporters. The analysts forecast that domestic demand, the main factor of growth in 2014-2016, will be rising in response to positive trends on the labour market and a solid increase in wages. UBS expects that an improvement in prospects for the euro zone will give a boost to Polish exports.

The European Investment Bank (EIB) is also optimistic about the Polish economy, which is reflected in its decision to grant Poland EUR700 million in loan for key investment projects in the area of research, development and innovation supporting a knowledge-based economy, and the development of e-government.

Investment is key to the future of the Polish, regional and global economy. This is stated clearly in the October report of the International Monetary Fund (IMF) entitled “Legacies, Clouds and Uncertainty.” The “legacies” are the still felt consequences of the global financial crisis while the “clouds” mean the poor investment climate which has persisted in most developed countries.

According to the IMF, the optimism of financial markets and growth in equity prices on stock exchanges are not translated into a rise in investment. President of the European Commission Jean-Claude Juncker wants an investment package to be adopted

by February 2015. It would enable acquiring EUR300 billion within three years from public and private sources for investment, for example in transport, energy and Internet. Polish Minister of Finance Mateusz Szczurek believes this is not enough to revive investment in the EU and proposes setting up a European Fund for Investment with assets worth 5.5% of the EU’s GDP, that is around EUR700 billion.

The Foreign Expansion Fund is to become our domestic example of how to stimulate the real economy rather than the virtual one. It will make part of the Polish Investment programme. It will soon be available to small and medium businesses which want to invest abroad. It is estimated that 39% of Polish small and medium businesses plan expansion on foreign markets in the next two years. More than 90% of the Polish businesses which carry out such expansion plans finance them from their own resources.

The Fund would respond both to their real needs and to the paradoxical dilemma of the global economy in 2014: We have plenty of money, but we lack projects on which to spend it.

Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd. December 2014 polish market

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President

President approves National Security Strategy

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resident Bronisław Komorowski has approved the National Security Strategy for Poland. The strategy is the most important Polish document devoted to security and defence issues.

“It is an essential document setting forth the guidelines and courses of action that are important in a situation in which we have found ourselves as a country, as a nation as a result of perturbations occurring east of Poland, east of NATO, east of the EU.” He stressed that the document was publicly available, and orientated changes to the national security strategy. It contains important guidelines for the armed forces, but also for other elements which codetermine the military capacity of Poland.

“I am sure that through a joint effort we will have this strategy implemented as effectively as possible,” Bronisław Komorowski said. He added that with the approval of the strategy a certain stage was completed.

Now, further documents and decisions will be made with respect to the armed forces, our defence system and security, and one of them will be a secret Defence Directive.

“All that work is in progress, because together we draw conclusions from what is going on east of Poland, where an area emerged marred not only by instability, but also fearsome changes, which are not temporary, but – by all appearances – durable and worsening the security constellation east of our borders,” Bronisław Komorowski said.

The President pointed out that one of the elements that influence Poland’s security is the ability to cooperate in this area. “Such an ability must be in common for the highest state authorities – and that is the case in the relationships between the president, the government and the parliament. And so it should be with other elements organising our social and national life,” he noted.

Bronisław Komorowski stressed that the ongoing process of a deep modernisation of the Polish armed forces will be pursued.

Talking about security with the new head of EU diplomacy

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resident Bronisław Komorowski has met with the new head of the European Union’s diplomacy, Federica Mogherini. They talked about the challenges ahead for the European Common Security and Defence Policy.

At a press conference in the parliament, Bronisław Komorowski said that Federica Mogherini was working towards an EU defence policy summit next year. “It will be an opportunity to review the security situation in the vicinity of the EU, as well as to bring up the issue of building a European Community Security and Defence Policy,” he said.

According to Bronisław Komorowski, amendments to the European Security Strategy in force since 2003 should also be considered at this

summit. “A lot has changed in the security environment since then, and it should be reflected in the new arrangements, something I strongly encouraged the High Representative for Foreign Affairs and Security Policy to do,” he added.

The new EU foreign minister, Italy’s Federica Mogherini, was on an official visit in Warsaw on 6 November. It was her first trip after taking office.

President celebrating the Independence Day amily, economic competitiveness, military security and integration with the West – these are the components of the lasting formula for Poland’s independence, presented by President Bronisław Komorowski at a ceremony held on the occasion of the Independence Day. First of all, family. For parents, Komorowski said, their children are most important. What they create throughout their life, they create primarily for the children. He encouraged Polish people to take advantage of this unique time in Poland’s history, when the work and efforts of successive generations accumulate, to make our homeland richer and safer for our children.

Secondly, economic competitiveness. According to the President, the solid economic foundations, fast economic growth, and the financial well-being of Poles are what makes our independence strong. “Although we have already gone a long way, and our prosperity is at its 500 years’ highest compared to the West, we should seek to modernise the economy to make it ever more competitive and innovative,” he said. Bronisław Komorowski added that the more effective we are in competing the more new jobs and life opportunities we create.

The third pillar of the formula for the lasting independence is military security, which is correlated with the economic development and prosperity, as well as with the country’s international clout. Speaking of the security, the President said that Poland should and can increase its defence spending to 2% of GDP in 2016. “Further strengthening and modernisation

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Photo: Łukasz Kaminski

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of our armed forces will bring us straight to Europe’s forefront in terms of defence capacity,” Bronisław Komorowski stressed.

The fourth and final factor is our willingness and ability to enhance relationships with the Western world. Elaborating on the importance of that component, Bronisław Komorowski spoke of strengthening the leverage and solidarity of NATO and the European Union, but also of tightening transatlantic links between Europe and the United States.

Prime Minister

Norwegian funds have a positive impact on Poland’s development and modernisation

T

he head of the Polish government, Ewa Kopacz, has talked to Norwegian Prime Minister Erna Solberg about Ukraine, economic cooperation and the results of the programmes financed by the Norwegian government.

Prime Minister Ewa Kopacz emphasised that an important topic of the talks was aid for Ukraine and EU sanctions against Russia, which Norway joined. “We talked about how Poland and Norway could support Ukraine and its people. We would like to do as much as possible in this respect, because we are aware of the fact that a stable, modern and prosperous Ukraine also means safety for the whole region,” Ewa Kopacz pointed out.

Another issue discussed was the approach of the Norwegian authorities to the numerous group of Poles who live and work in Norway. “It is really

important for us that Poles enjoy warm and hospitable welcome from the Norwegian society and authorities, and that they are appreciated for their positive contribution to the development of the Norwegian economy. We should take actions which will upkeep these positive relations,” the Prime Minister said.

Prime Minister Ewa Kopacz also thanked for the fruitful cooperation in the implementation of the following programmes: Norwegian Financial Mechanism and EEA Financial Mechanism, as part of which projects worth over EUR 534 million were completed in Poland in the years 2009-2014.

“The Norwegian funds have a positive impact on Poland’s development and modernization,” Prime Minister Ewa Kopacz said, enumerating the buildings of key cultural institutions modernised from the Norwegian funds: • Royal Łazienki Museum, • Castle Museum in Malbork, • Castle in Łańcut, • Juliusz Słowacki Theatre in Kraków, • Music Academy in Katowice, • National Library in Warsaw.

A visit of the President of Israel

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rime Minister Ewa Kopacz has met with Israeli President Reuven Rivlin.

The talks in Warsaw concerned, among others, next year’s 25th anniversary of the resumption of Polish-Israeli diplomatic relations. Ewa Kopacz and Reuven Rivlin discussed the possibility to step up efforts to bring the two nations closer to each other, including bolstering youth exchange programmes and building awareness of the millennial history of coexistence of Poles and Jews.

An agreement on cooperation in the field of research and development in the industrial sector was signed as a result of the Israeli President’s visit to Poland. It marks an important step in strengthening economic cooperation between Poland and Israel.

Another issue raised during the meeting was strengthening bilateral military cooperation and initiating cooperation in the field of IT security. The Polish Prime Minister and the president of Israel have discussed the problem of the Middle East peace process and the risk associated with the Islamic State.

This was the first visit of President Reuven Rivlin to Poland. During his stay in Poland the President of Israel, together with Prime Minister Ewa Kopacz and President Bronisław Komorowski, took part in the official opening of the Museum of the History of Polish Jews.

Reconciliation is a fruit of courage, but, first and foremost, of long and laborious work

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n November 1989, symbolic Polish-German reconciliation took place in Krzyżowa. On the 25th anniversary of that event, Prime Minister Ewa Kopacz met German Chancellor Angela Merkel in the same place.

The Prime Minister recalled the circumstances that surrounded the reconciliation gesture in Krzyżowa in 1989. “The moment when Tadeusz Mazowiecki and Helmut Kohl gave each other the sign of peace became a strong signal demonstrating the willingness to reconcile and create new, better relations between Poles and Germans,” she said. The head of the government pointed out that at that time, a united, democratic Germany was for Poland the best guarantee for the future, whereas what was in the Germany’s interest was a politically and economically stable Poland.

Prime Minister Ewa Kopacz emphasised that what influenced the shape of today’s Polish-German relations was numerous achievements and initiatives, such as the Foundation for Polish-German Cooperation and the Krzyżowa Foundation for European Agreement. “Thanks to cooperation between local governments, universities and non-governmental organisations, as well various types of economic relations, we meet in Krzyżowa as neighbours, partners and friends,” she stated.

The head of the government pointed out that we should together make efforts to transmit reliable historical knowledge to the young generation of

Poles and Germans. “Young people who visit Krzyżowa should have an opportunity to get to know and understand our common past,” Prime Minister Ewa Kopacz said. She added that textbooks must never stop teaching about a difficult path both nations walked to finally achieve what unites us today.

During the meeting in Krzyżowa, the Polish Prime Minister and the German Chancellor opened the “Courage and Reconciliation” exhibition prepared by the Polish History Museum. The exhibition is located on the premises of the Krzyżowa palace complex and is in the form of a maze which shows changes in the Polish-German relations from the World War II to the Reconciliation Mass in 1989.

Prime Minister Ewa Kopacz and Chancellor Angela Merkel attended an ecumenical mass at the Peace Church in Świdnica. The meeting in Krzyżowa was an opportunity to talk about the situation in Ukraine and European issues.

Krzyżowa (German name: Kreisau) is an estate once owned by the von Moltke family, a place where the anti-Nazi group, which is known in history as the Kreisau Circle, had its meetings. Since 1990, the Krzyżowa Foundation for European Agreement has operated there.

December 2014 polish market

7

Our Guest

Poland - a good

investment opportunity in Europe

Paweł Tamborski, President of the Board of Warsaw Stock Exchange, talks to “Polish Market”.

The year 2014 is slowly coming to a close. Was it good for the Polish finances and the Warsaw Stock Exchange (WSE)?

It was an eventful year. Historically, WSE has grown backed by healthy and stable economy, steady flow of public offerings, and constant access to capital from open pension funds (OFEs). But recently Warsaw had to answer the big question of how the market will look like after the reform of the pension system. That has now been resolved, we know the result and it’s better than many people expected. OFEs will still be active! More than 2.5 million individuals, mostly those well-off, have chosen to stay with them and we can safely assume that they will be cash positive for the foreseeable future. Their activity might change a bit, as they will be probably looking more often for larger and dividend paying companies. Having this issue resolved gives us an excellent opportunity to approach potential listing candidates, as well as investors, and tell them that Warsaw is back in business.

On the other hand, we have witnessed uncertainty related pm

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to the situation between Ukraine and Russia. As strange as it may sound, this conflict underlines Poland as a favourable investment destination. We are seen by investors as a safe haven in the region, a good investment opportunity in Europe.

Of course this year has also brought a change in the management board due to the end of term. But one of the most important events that will influence the future of WSE is the revision of our strategy – GPW.2020.

According to the “Updated Strategy GPW.2020”, one of the main goals of the Warsaw Stock Exchange is “to be the trading platform of first choice for investors and issuers in Central and Eastern Europe”. How do you intend to attract them?

When it comes to investors, we have in mind a series of specific initiatives encouraging their activity on WSE. We will continue to promote and educate individual investors.

We are working on special investment programmes geared just for them. On the other hand, we want to attract to the pm

Our Guest

market new domestic and foreign institutional investors.

Firstly, we want to attract international investors which are still absent in Poland, for example, by organising Polish Days in different world financial centres. Secondly, we will have special services for specific kinds of investors, for example we already have implemented the High Volume Provider (HVP) programme for investors active on the cash and derivatives market. We also want to join forces with banks in order to acquire clients for WSE in developing the debt market. Moreover, we plan to expand use of our trading system, by offering foreign investors the capabilities they are familiar with, but which have been unavailable in Poland yet. It is also our responsibility to initiate legislative changes which will facilitate investors and issuers’ activity on the market – we’ll work with public administration on that.

In regard to issuers, we aim at the Central and Eastern Europe, as this is our niche. We offer them access to every emerging Europe investor as well as to Polish capital from the pension funds, the rapidly expanding mutual funds sector and the very active retail sector. For issuers in countries that are outside the EU, we can serve as a gateway, from a capital markets perspective. We’re constantly meeting with foreign issuers interested in listing on WSE, but we intend to be even more proactive about approaching potential listing candidates. Thus, we’re going to be on the road a lot.

What is the condition of the Warsaw Stock Exchange in comparison to other European stock markets?

Over the years the Warsaw Stock Exchange has become one of the fastest developing exchanges in Europe and at the moment it is the biggest marketplace in Central and Eastern Europe. WSE’s capitalisation is almost equal to the combined capitalisation of the stock exchanges in all the other CEE capital cities and the trading volume per session in Warsaw is 30% higher than the total trading volume on other regional stock exchanges. WSE is also a CEE leader in terms of size of the market, liquidity and number of IPOs. In 2013, with 65 new issuers listed on our equities markets, it became the second most active exchange in Europe with regard to new listings. Since the beginning of 2014, almost 50 companies had their IPO on our markets. As of November 26, 2014 there are nearly 900 companies listed on WSE, 60 of which are foreign companies from all over the world, including USA, Israel, and China.

But nothing is set in stone - our position is not given forever. We compete globally for issuers and investors and face challenges. We have to work hard on sales, on unblocking liquidity and adjusting our services to the growing expectations of investors and market participants. We need to show private companies from Poland and the whole region that stock exchange has attractive services for them. We also need to look for new types of investors. pm

The year 2014 was abundant in anniversaries. It also marked 25 years of the free market economy in Poland.

How do you think Poland’s economy has changed from the point of view of the WSE? Since 1990, when far-reaching reforms took place in Poland, making it possible to introduce free market principles in the economy, the country has experienced steady pm

economic growth. And since then we have not had a negative GDP growth, even during the financial crisis that shook the European and global economy. In 2008-2013 our accumulated GDP was over 20%, an absolute record among EU countries. Poland’s efforts to meet EU membership criteria helped restructure the Polish economy. Then, since its entry to the European Union, Poland has benefited for example from its effective use of EU structural funds, which allowed for infrastructural development. Our preparedness, work we have put in, and favourable external conditions helped Poland to flourish. The dynamically developing domestic economy created demand on the IPO and SPO markets. And well-developed market infrastructure as well as sound and secure regulatory environment in full compliance with EU standards facilitated WSE’s steady growth. It gradually increased contribution of foreign investors to equity trading on the WSE and nowadays they generate around 50% of equity trading on our Main Market. Nowadays, Warsaw offers investors access to benefits of a developing-economy on one hand, while on the other, safety of the EU-regulated capital market.

WSE is a very good proxy for the Polish economy, which remains one of the brightest spots in Europe, offering the stability of an EU regulated market with the benefits and potential of an emerging market. But we should not stop here.

We must open a new chapter and continue working to develop our markets further. We have shown our ideas for the Warsaw Stock Exchange for the next six years in the updated strategy GPW.2020. We want to see the stock market competitive in terms of quality and price and we want to achieve that by turning towards our customers and better tailoring • our services to the needs of the market.

We need to show private companies from Poland and the whole region that the stock exchange has attractive services for them.

December 2014 polish market

9

Our Guest

2014

Success in the difficult year

2014 Iwona Sroka, PhD, President of The Management Board of The Central Securities Depository of Poland (KDPW)

It has been 20 years this November since the inception of the Central Securities Depository of Poland. Has it been difficult in the past few years to ensure safety of trading on the capital market?

What is key for us as the institution responsible for safe clearing and settlement of transactions is that in the last two decades, even during the deep crisis after 2008, there have been no incidents on the Polish market which would have undermined the safety or quality of operation of the post-trade infrastructure. This proved to be the best test for the quality of KDPW Group’s work. This has been possible due to the continuous development of KDPW, which follows global trends in post-trade services. It seems that the major systemic changes have taken place in the last years when we implemented a number of revolutionary projects. The key of these include the launch of the new IT system kdpw_stream; the modification of the clearing guarantee system; limiting the contribution of participants into the system in the clearing guarantee system; establishment of an independent clearing guarantor followed by the professional clearing house KDPW_CCP with a high own capital which can be used in the event of participant default. And having regards to the recent actions - we have launched new OTC derivatives clearing services for banks. We have expanded a range of services which facilitate the operation of the market. These include securities netting, partial settlement, the negotiated anonymous securities lending system, the development of corporate action services, repo settlement and collateral management. pm

pm

How did the Polish financial market do in 2014?

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It was clearly a difficult year. Changes to the pension system, a weak sentiment on the exchange market, global and local changes and their influence on economic situation: all of this has caused much uncertainty on the market. If there is anything the capital market dislikes, it is turbulences. Naturally, not everything looks so pessimistic. Our company is very proud of its successes in 2014: the European authorisation of KDPW_CCP and the registration of the Trade Repository KDPW_ TR by the European regulator. For a year now, we have operated as a numbering agency issuing LEI codes which identify entities trading in derivatives.

How did the weaker position of pension funds affect the market?

Following the changes imposed by the new regulations and the reduction of assets managed by pension funds, their role on the financial market is changing while the funds are adjusting their investment strategies. The market has to get used to their new role. Prospective pensioners have reacted in a very positive way to the changes to pension funds.

Around 2.6 million individuals have decided to continue their participation in pension funds, compared to 16.4 million pension fund members at the end of 2013. According to analysts’ estimates, pension funds will remain a net provider of capital, supporting the stability of the Polish financial market. pm

What is the position of Poland’s economy compared to European economies?

With a population of 38.5 million and a GDP of over EUR 382 billion, Poland is the biggest economy in CEE and 8th biggest economy in the EU. We have stable public finances: Poland pm

ranks 11th among the EU Member States with the lowest level of public debt to GDP. According to the Federation of European Securities Exchanges, the capitalisation of the Warsaw Stock Exchange (WSE) is nearly equal to the total capitalisation of exchanges in the other countries of the CEE region. However, we are still a developing economy: we need strong drivers of growth in order to develop, become affluent and catch up with the European leaders.

Can Polish financial institutions co-operate to help the local economy grow?

In my opinion, there can be no support for growth without such co-operation. It is natural for interest of different groups to clash in the market; however, consensus and common sense are necessary for everyone to win.

Therefore, the KDPW Group strategy puts a strong emphasis on co-operation with all stakeholders of the financial market. Without active engagement of market participants we would not have been able to implement so many projects in the past years, which already puts us among the well-developed markets in the area of post-trade services. Similar opinions have been voiced by the new Management Board of WSE, which published its new strategy several days ago. pm

In your opinion, what is the outlook for Poland’s economy in 2015?

Global economic growth may be weak and uneven this year and next, according to expectations of the International Monetary Fund.

As for Poland, however, most economists project stable growth at 3 – 3.5%.

• pm

Finance

December 2014  polish market

11

Our Guest

2014

and prospects for the year ahead Izabela Leszczyna, deputy minister of finance and government commissioner for information and financial education

A

lthough there is still one month to go before the end of the year, it is already possible to say that 2014 was a very good year for Polish finances, despite an unfavourable external environment. In the second quarter of 2014, the pace of GDP growth slowed both in the euro zone and the European Union economy as a whole, after a relatively good first quarter, with economic figures worse than expected. At the same time, some of the risk factors associated with the situation in Ukraine for EU growth prospects materialized. The economic result is a reduction in trade between Russia and EU countries. Given that the share of Russia and Ukraine in Polish exports is relatively small, the direct impact on the Polish economy of sanctions on trade with Russia should not be strong. And the impact is being offset by a growing share of Polish exports in other export markets. The influence of the sanctions on the economic figures of the European Union will be more significant. Considering that the EU is the largest trading partner for Poland, this is where the risk for Poland’s economic growth prospects may materialize in the coming years.

At present, we project that Poland’s GDP will grow in 2014 by 3.3% in real terms. This means that the growth will be two times faster than last year, which is mainly due to the acceleration of domestic demand in connection with a rapid increase in private investment and private consumption. There are also positive signals from the national budget. The 2014 budget deficit will probably be lower by PLN15 billion than planned and will stand at around PLN30 billion.

It is worth remembering that the 2014 budget has been prepared in keeping with the stabilizing expenditure rule, although under Polish

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law it is obligatory since 2015. The rule, which may seem complicated in its structure, is very simple in operation, with an expenditure ceiling set for every year. The rule goes much beyond the national budget – it applies to almost the whole of the central and local government sector. As a result, it will lead to a reduction in the sector’s deficit and its stabilization, and consequently to a decrease in public debt. A significant advantage of the rule is that it is countercyclical. It constrains budget spending in the years when economic conditions are favourable so as to allow higher public spending at a time of economic slowdown.

The year 2014 also witnessed changes to the capital part of the old-age pension system. The worries of some experts and commentators, who had argued that the changes to the OpenEnded Pension Funds (OFE) would have an adverse impact on the Warsaw Stock Exchange, turned out to be groundless. The reform made contributions to OFE voluntary, removed the idle circulation of money by doing away with the bond part of the scheme, and introduced truly market mechanisms, which enable real competition among the pension funds. Earlier, the funds had observed each other’s behaviour and were taking the same investment decisions, which were not always favourable for OFE members.

The reform was carried out smoothly, had a favourable influence on the level of public debt, reduced the debt service cost, and consequently resulted in a reduction in general government deficit. At the same time, we support families through very favourable child tax allowances, cheap kindergartens and wider access to crechès so as to counter negative demographic trends.

Thanks to these two measures – the stabilizing expenditure rule and thorough reform of OFE – coupled with an earlier reform of bridge pensions and a gradual rise in the retirement age, we managed to secure the stability of public finances in the long run.

We have also improved Poland’s business environment. In the latest “Doing Business 2015” report, Poland ranks 32nd in the World Bank’s league table of 189 countries assessed in terms of the ease of conducting business activity. The league table shows that facilitation measures which improve the business climate in Poland make the country a leader in Central and Eastern Europe. In “Doing Business 2008,” Poland ranked 74th, which means it has moved up 42 places over this period.

We project that – thanks to a consistent economic policy, with an equilibrium between the need to maintain the stability of public finances and the Polish peoples’ needs, expectations and aspirations – the general government deficit will fall this year to 3.3% of GDP. In the past 20 years, it was only three times that Poland had a lower general government deficit.

And next year, the deficit is expected to fall below 3% of GDP, making it possible for Poland to leave the EU’s excessive deficit procedure. This is another challenge for Poland – we have to permanently reduce the deficit, which we are obliged to do, and to remember at the same time that consolidation measures should not constrain the growth of the Polish economy.

I am optimistic because we have experience in doing so. After all, Poland has been the leader in economic growth among EU countries for the • past seven years.

Our Guest

December 2014  polish market

13

Finance

We need

stronger mechanisms

for building confidence between

business

and

the state Krzysztof Pietraszkiewicz, president of the Polish Bank Association, talks to Marcin Haber.

The year 2014 will soon end and time has come for summings-up. In your view, what was this year like for Polish finances?

I think that the year was quite good for the whole country and economy, although it was full of economic and political uncertainty due, first of all, to the international situation – especially developments outside Poland in the east and south of Europe. The political uncertainty is associated with the situation in Ukraine, but also with integration problems and regulatory measures in the European Union. I mean solutions, difficult to negotiate, undertaken in the final phase of the operation of the European Commission and the previous term of the European Parliament. It pm

14  polish market 

is important that individual segments of the regulations on the banking union, resolution mechanism, and tax solutions disciplining European Union and eurozone countries have come into force.

The results recorded by Polish financial institutions this year turn out to be relatively good. One reason is that the Polish economy has achieved better results than other countries. This year, we have again noted a decrease in unemployment. We are one of the few countries where in the past six years unemployment fell by more than 3.5 pct. points. I think these positive results were also possible thanks to an almost 7% increase in bank deposits year on year. Lending to the Polish economy rose by nearly 5%,

Finance including financing under mechanisms aimed at supporting Polish enterprise. This is very important because businesses generate new jobs and additional receipts for the national budget.

We are talking on the eve of the Monetary Policy Council’s decision on interest rates. Experts argue that the Council will cut interest rates. What impact could this have on the economy and its growth?

The Council’s decisions are always independent and preceded by a careful analysis of the economic situation.

I think another interest rate reduction in such a short time is not certain. However, if the Council took this decision the lower interest rates would undoubtedly be an incentive for businesses and retail clients to take more loans for development and for consumer purposes. It is important, however, that the scale of the new debt stimulated by interest rate cuts should be reasonable. A diminishing influence of monetary policy instruments on the pace of economic growth is becoming visible in many countries. Effective mechanisms for building confidence between business and the state turn out to be of key significance. I mean a system of credit guarantees and the launch of many investment packages, with a share of public funding in them, associated with the implementation of development programmes agreed by Polish regions and the Polish state with the European Commission, and development programmes of the government. Confidence in the financial system on the part of businesses and their conviction that development and investment projects are more secure are very important factors supporting economic growth. Our economy needs constant modernization, which will be impossible without a favourable investment climate and a higher propensity to take risk, which businesses will be able to share with other market participants. The experience of the recent years shows that countries which have highly competitive businesses, able to offer services of high quality and modern products on the international market, cope much better in a time of crisis. Our economy should be aiming at achieving this state and in the years ahead we should put more emphasis on raising not only productivity and efficiency but also competitiveness based on increasingly high product quality and attractiveness. I believe that the coming years will be a time of stimulating closer relations between Polish businesses and universities and scientific research centres because this is what innovation, something which Poland needs so much, is based on. This process is not quick and easy, but the important thing is that it has begun and goes on. pm

At what level, in your view, is the Polish economy relative to other European economies? Are Polish banks able to work with each other to support the development of our economy?

Polish banking, even in the time of a deep crisis on international financial markets, served the economy well and continues to serve it well. In 2008-2013, Poland ranked second among the 28 EU countries in terms of a rise in loans granted to households, small and medium businesses, and large companies. Importantly, these market segments noted a nearly 40% growth in less than six years from 2008 to pm

2013. In the same period, lending activity shrank considerably in most EU countries. For example, Ireland was at the other extreme, with a 41% drop. Poland maintained the highest growth in gross domestic product in the EU at an annual average of 3.9%. Exports from Poland expanded by over 6.3%, putting us among leading European Union countries. Imports to Poland rose by a touch more than 5.3%, which means that the changes were favourable for our trade balance. Growth in the public debt to GDP ratio in the period of economic turbulence was below 10%, being also among the lowest in the EU. Poland has sound and

The Polish banking sector developed very rapidly in the period of transition – it is stable and sound. stable foundations for further development and it is expected that in 2014-2019 Poland will rank third in the EU in terms of GDP growth.

The favourable condition of the Polish economy is coupled with a good situation in banking. This is reflected, among others, in Polish banks’ ability to meet the needs of households, with a simultaneous slowdown in the pace of financing in the form of consumer loans and a gradual increase in financing for small and medium businesses. It is also important that the quality of the loan portfolio has systematically improved for six quarters. We have to do with a very interesting situation – with the expansion of the scale of lending activity, the quality of the portfolio has improved not only in relative terms but there has also been a drop in the nominal value of distressed assets by several billion. I think this is a very good starting point for coming years. The Polish banking sector developed very rapidly in the period of transition – it is stable and sound. But I am afraid that the system is too small given the growing needs of our economy. This is why we will have to work out and consistently carry out a programme for developing the financial system, a programme able to mobilize the still untapped potential of domestic savings and enable a rise in non-credit financing for the development of businesses. Otherwise, it will be more difficult to finance the • development needs of the expanding economy.

December 2014 polish market

15

Finance

Stable &

credible

Artur Borowiński, CEO of Compensa TU SA Vienna Insurance Group, talks to Rita Schultz.

The Pearl of the Polish Economy award for Compensa honours its activity over almost 25 years.

What does this award mean to the company?

It was quite recently that Compensa celebrated the 20th anniversary of its presence on the Polish insurance market. Then, looking from a more distant perspective – from Romania where at that time I held the post of member of the Board of one of the insurance companies making up Vienna Insurance Group – I spoke about Compensa’s long road and deep change that it had undergone to become a stable and credible insurer. I am happy that we can enter another jubilee - in March 2015 – with our head held high and enjoying recognition from business communities, which appreciate our contribution to the development of the Polish economy. The award Compensa has received, as the only company among the over 30 non-life insurers, is a sign of recognition for the determination with which my predecessor Franz Fuchs and a team of experienced managers and staff led Compensa to become one of the top five insurance companies on the market. And for our clients the Pearl of the Polish Economy title is a confirmation that they take out insurance from a company with solid expertise and financial base. pm

How do you assess these 25 years of the insurance market?

The changes on the insurance market reflect those which have taken place in the Polish economy over the past 25 years. It was a period of big change in the clients’ mindset and the organization of the insurers’ market. At the beginning of our activity, the Polish market was dominated by a single player. In the following years it was becoming diversified. Today, there are almost 30 life insurers and over 30 non-life insurers operating in Poland. They offer a full range of insurance products, allowing clients to select solutions which are the pm

16 polish market

Finance most optimal for them and tailored to their specific needs. Since 1990, the beginning of Compensa’s activity, the insurance market has become much more competitive and our main shareholder, Vienna Insurance Group (VIG), has consistently strengthened its position in Poland.

At present, VIG ranks fourth in Poland in terms of property insurance and third in terms of life insurance, with a market share of respectively 9.2% and 8.6%. VIG owes much of this success to Compensa whose contribution to VIG Polska’s premium is the highest, accounting for almost 50% in non-life insurance and almost three fourths in life insurance. I think that the expansion of Vienna Insurance Group in Poland is an excellent example of the deep change the Polish market underwent over the past 25 years.

Compensa makes part of Vienna Insurance Group. Does this relationship help or hinder the functioning of the company on the Polish market?

A strong financial base and business support from the shareholder can hardly be overestimated, especially at the time of a slowdown caused by increased competition and legislative changes, something with which we now have to deal with on the Polish market. Vienna Insurance Group has operated for many years in more than 20 countries of Central and Eastern Europe and is the only insurance group in the region consistently holding the A+ rating from Standard & Poor’s. The knowledge resulting from this vast experience is translated into practical business solutions, which the group takes into account in its strategy depending on market conditions. It is this experience that the strategy of selective growth we try to carry out at a time of slowdown comes from.

I mean insurance for large companies, and small and medium businesses, and group life insurance, which are becoming increasingly popular due to their open format and simple structure.

Concentration on selected business lines enables us to maintain high competitiveness and at the same time acquire clients for new segments by, for example, exploiting the potential of selling additional insurance to clients satisfied with our after-sales service. pm

Your products are targeted at both individuals and businesses. Which group of clients is easier to attract these days? Which of them is loyal to your company?

Winning over new clients is quite a challenge on a market where a few dozen insurers, many of them with wide experience and well-established reputation, actively operate. For this reason, we attach great importance to the structure of our products. We try to make sure that they include solutions tailored to the specific needs of individuals and institutional clients. pm

In our case, innovation means providing modern solutions to our sales partners, who are our ambassadors in contacts with clients.

However, the loyalty of clients, irrespective of which group they belong to, depends on their satisfaction with the after-sales service they have received after a chance event. Secondly, we attach very great importance to the quality of insurance claims handling and we regularly invest in this area. We use services of a leading, in terms of quality and size, network of experts and loss adjusters. The our network of experts not only has one of the most reliable call centre services, offering simplified loss settlement with compensation paid out in up to three working days, but also the shortest time on the market for vehicle examination after damage. All this is designed to make the service provided to the client easier and faster at the unpleasant time when they have suffered damage. A survey conducted for us recently shows that seven in ten clients would choose our insurance company again. I think it is a good result, though of course we are not going to rest on our laurels.

We are doing a lot to meet our clients’ expectations and encourage them to sign an insurance contract with us for the next period. Next year, we want to additionally smooth the claims handling process by launching a dedicated loss portal and instant damage assessment on the site of examination.

What importance, in your view, does innovation have for the development of businesses in our country?

Innovation drives the development of businesses and contributes to the competitive

pm

advantage of insurers. In our case, innovation means providing modern solutions to our sales partners, who are our ambassadors in contacts with clients. We are traditionalists in this respect. We believe that, in order to provide the best insurance coverage to our clients, direct contact is needed between those who want to get insured and the agent who can help them choose an optimal and individualized solution.

But returning to innovation, I would like to say that in recent years Compensa has invested a lot in IT solutions supporting sales and I think our portals are among the best, if not the best, on the market. I would like to point to an equally important factor – stability, not only financial one, but also in terms of staff. I think Compensa’s strongest point is its professional and strongly motivated team, who have had many successes to their credit over the past years.

Vienna Insurance Group is a growing giant.

What plans do you have for the group’s expansion in Poland? What are Compensa’s plans for the near future?

Vienna Insurance Group has been present on the Polish market for a dozen or so years. I remember my joining Compensa in 2000. It was then one of the group’s two companies in Poland. The firm’s sales did not exceed PLN250 million and we were very much in the red. Today, VIG Polska having premiums on year 2013 in the amount of 4,8 bn PLN has six companies and Compensa is among the largest non-life insurers on the market. All the credit for this success goes to Franz Fuchs, who was Compensa’s CEO for many years and coordinated all operations of Vienna Insurance Group in Poland.

I am not going to hide that it is a great challenge for me, as a new CEO, to continue this effective management at Compensa. But responding to your question about plans – in the near future, we will be focusing in life insurance on solutions enabling building up savings with a guaranteed rate of return. And in non-life insurance, we are going to continue expansion in the segment of institutional clients by developing products for large companies, and small and medium businesses. We want to build the company’s value on the market and make it credible in the eyes of an increasing number of clients.

In the long run, I want Compensa to become one of the three largest insurers on the Polish market and in Vienna Insurance Group, and at the same time a company of choice rendering the best services to its clients, and business and sales partners.

As Christmas is approaching, I would like to wish you and your nearest and dearest the best possible insurance coverage giving you peace of mind in this special festive time and in the • New Year. pm

December 2014 polish market

17

Finance

Ethos in economics and finance

Prof. Elżbieta Mączyńska, lecturer at the Warsaw School of Economics (SGH), president of the Polish Economic Society

O

ne of the highly consequential errors in the modern understanding of economics, devastating for the social and economic life, is to assume that it is the art of making money – “chrematistics.” It is dangerously false. Adopting such a definition would mean that all actions are permissible and desirable as long as they make a profit. Although such a perception of economics was unfortunately favoured over the past few decades of dominance of neo-liberalism as a doctrine shaping the social and economic life in many Western countries (to a large extent also in Poland), it was spectacularly negated by the economic reality, especially the global crisis. And so was the famous “greed is good” statement. The research conducted by the American sociologist Michael Sandel, the author of the book “What Money Can’t Buy,” does negate such an approach, too.

Many economists are concerned with a misrepresented understanding of economics, and especially its translation into practice. Such concerns were voiced in 2008, the year which marked the beginning of the global crisis, by Nobel-Prize winning Edmund Phelps, who said that “economics is not about making money. It is about the relations between the economy and social life.” Economics studies behaviours of people in the process of management. Separating economics from morality is, in a sense, tantamount to desecrating the idea of Adam Smith, the 18th century’s Scottish philosopher considered to be the founding father of economics. For Adam Smith, free market and morality were absolutely intertwined. His first work, “The Theory of Moral Sentiments,” laid the groundwork for the theses set out in “An Inquiry into the Nature and Causes of the Wealth of Nations,” Smith’s magnum opus. The neo-liberal free market concept lacks such a symbiosis, creating fertile ground for unethical actions which, if intensified, increase the risk of a financial meltdown. This was spectacularly confirmed by the recent global recession.

The free market economy requires a sensible economic governance framework, but also, and perhaps above all, a set of ethical and moral principles underlying the system of law. It needs an ethos taking into account the importance of social and human factors, freedom, but also responsibility and morality. Ethos denotes a set of values, norms and behavioural patterns adopted by a group of people. In this sense, ethos and economics, understood as a study of people in the process

18 polish market

of management, are inseparable. In practice, however, such a separation unfortunately occurs, more and more frequently.

As laureate of the Nobel Prize in Economics, aptly pointed out, Joseph E. Stiglitz, “economics had moved, more than economists would like to think, from being a scientific discipline into becoming free market capitalism’s biggest cheerleader.”

Fostering and respecting social values are necessary to counterbalance a destructive anomie and a confidence crisis, to improve life quality and well-being of society. Suffice it to study the very etymology of the concept of anomie to realise its destructive features. Derived from Greek (a = without, nomos = law), this word literally means the absence of law. It is not, however, to be confused with lawlessness. The Ancients already warned that “the more corrupt the state, the more laws.” Anomie stands for contradictions, disorganisation, disintegration, chaos and mismatches in the system of social values, in the system of norms and rules governing the social and economic life in its various forms.

Economics is a social science, which compels economists to care not only for economic, but also (and perhaps primarily) for social and ethical aspects of life. After several decades of marginalisation of these issues in economics and finance in line with the principle that “greed is good,” fortunately more and more economists have come to address these issues in their works and studies. One example is “Finance and the Good Society” (Princeton and Oxford: Princeton University Press, 2008) by Robert J. Shiller, last year’s Nobel Prize winner in economics, one of the few economists to have predicted the outbreak of the US financial crisis in 2007/2008. This book is primarily intended to restore the ethos of economics and finance, which has been severely eroded in the past few decades, as drastically evidenced by the crisis itself. In his book, Robert Shiller highlights the role of ethics in finance and social functions to be performed by economics.

Therefore, economics and finance need changes; they need to be somehow reinvented. Certainly, positive changes can be nurtured by studying the academic literature reporting on the latest research results, reflections and recommendations. Shiller’s “Finance and the Good Society” is one of such works. The Polish Economic Society will soon release its Polish version as part of the “Economics Nobel Prizes” series. I am deeply con• vinced that it is worth reading.

POLISH ECONOMIC

SOCIETY Nicholas Barr, Peter Diamond

PENSION REFORM: A SHORT GUIDE

The book should be a mandatory reading for anyone who wants to deepen their knowledge about the nature and forms of pension systems and their transformations. This publication should in the first place attract attention of MPs, social and economic policymakers at central and local levels. It is a very useful reading for practitioners, experts, including economists, lawyers, sociologists, demographers, economic historians and students of these disciplines. This book should be of interest to all those who care about securing a dignified life for retirees, but also the welfare of the country and its citizens.

Scientific Editor : Elżbieta Mączyńska

ECONOMICS FOR THE FUTURE. FUNDAMENTAL PROBLEMS IN ECONOMIC THEORY AND ECONOMIC PRACTICE

This monograph deals with one of the major aspects of the ongoing economic debate: a debate on economic theory, its practical utility and compatibility with the current and future requirements of a rapidly changing social and economic reality. (...) This book is addressed to readers in the hope that its contents will make for a better understanding of different trends of economic theory, as well as for an objectified assessment of the practical utility of these trends and their reasoned application in practice. Texts included in the book are the aftermath of several years of preparation for the 9th Congress of Polish Economists that was held on 28-29 November 2013.

Scientific Editors: Marian Gorynia, Stanisław Rudolf

POLAND IN THE EUROPEAN UNION AND IN THE GLOBAL ECONOMY

The common theme of this collection of articles is a broadly understood place of Poland in the world economy, with a particular consideration of certain aspects of economic cooperation with foreign countries.

Changes on the global economic arena, invariably progressive, often very fast and intense, create many opportunities but also a variety of risks.

On the one hand, foreign competitors are increasingly interested in a relatively fast-growing Polish market, on the other hand, Polish companies are ever more eager to start and develop business operations in foreign, sometimes very distant, markets. Texts included in the book are the aftermath of several years of preparation for the 9th Congress of Polish Economists that was held on 28-29 November 2013.

A full offer of PTE publications is available in the Societyʼs on-line bookshop: www.ksiazkiekonomiczne.pl Books can be ordered by Internet, in scientific booksellers and in the Polish Economic Societyʼs bureau at 49 Nowy Świat Str., 00-042 Warsaw, tel. (+48 22) 55 15 401, e-mail: zk@pte.pl

Finance

“25 years of transformation” through the eyes of President Bronisław Komorowski

O

Photo: Maciej Górski

n 19 November, the Warsaw School of Economics (SGH) hosted a conference titled “25 Years of Transformation,” which brought together the elite of Polish economists, rectors of universities of economics, professors and politicians involved in the process of Polish transformation. The special guest of the conference was President Bronisław Komorowski. After opening addresses

by Prof. Tomasz Shapiro, rector of the Warsaw School of Economics, and Prof. Marian Gorynia, Chairman of the Board of Rectors of the Polish Universities of Economics and rector of the Poznań University of Economics, President Komorowski shared his feelings associated with the time of transition.

During his speech, Bronisław Komorowski recalled the chain of events of 25 years ago. He estimated that the people of Solidarity, the then oppositionists, were not sufficiently prepared to proceed with a thorough transformation of Poland’s economic system towards a free market economy.

“Therefore, human resources coming from today’s SGH (ed. note: formerly SGPiS) were priceless,” said the President.

He recalled Tadeusz Mazowiecki who used to say that of it had not been for the ability to attract people from very different political horizons, we would not have managed to get started with this great work.

President Komorowski explained to the audience the specificity of that time: “At that time of profound change, we had not only to win over the public opinion, the people, but first of all we had to instil in ourselves – Solidarity activists, people who believed in that great reform and wanted to participate in it – the conviction that it was the

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only direction that made sense.” The President thanked all those who supported the great economic reform and those who put it in place. “I want to thank this university for changing our way of thinking, right after having changed its own way of thinking,” he said.

Speaking to Leszek Balcerowicz, the architect of Poland’s transition towards the free market economy who was also present at the conference, President Komorowski said that we would not have succeeded without strong-minded people who had a deep conviction of doing the right thing and the courage to confront their views with unstable public moods.

Speaking at a university, President Komorowski could not omit to make reference to the tasks facing higher education in Poland. “The key to success lies in a deep reform of the system of education and research to make it able to meet global challenges,” the President said.

“We can be and we are proud of the way we have gone, but we have to clearly set ourselves goals to ensure that the next 25 years will be no worse, that the economic growth will be sustained, that Poland will keep up the pace of catching up with the European leaders. And this means strengthening the competitiveness of the Polish economy, it also means changes, which are not always easy, continuous modernisation and readiness to address the most difficult issues,” Bronisław Komorowski stressed.

Among the participants were: Leszek Balcerowicz, Lajos Bokros, Bogusław Fiedor, Jacob Frenkel, Stanisław Gomułka, Christopher Hartwell, Jerzy Hausner, Oleh Havrylyshyn, Ulrich Karpen, David Kemme, Ali Kutan, Anna GizaPoleszczuk and Lucjan Orłowski. •

From left: Prof. Leszek Balcerowicz, President Bronisław Komorowski, Prof. Tomasz Szapiro, Prof. Jerzy Hausner

Finance

Changes in

Polish exports Prof. Małgorzata Zaleska, member of the Board of the National Bank of Poland The author is a member of the Board of the National Bank of Poland (NBP), a full professor at the Institute of Banking Warsaw School of Economics (SGH) and vice-president of the Committee on Financial Sciences Polish Academy of Sciences.

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special year is drawing to a close, a year marking the 25th anniversary of the start of Poland’s economic transition. Over this period, we celebrated bigger and smaller successes, but were also forced to cope with challenges and failures. Let us leave the latter aside and focus on one sphere – exports. It can be regarded both as one of the significant achievements of the Polish economy and one of the future challenges.

Twenty five years ago Poland had a centrally planned economy and economic relations were determined by political factors rather than economic ones. In 1990, Polish exports were worth USD14.3 billion. Exports to the USSR accounted for more than 15% of the total. Last year, the value of Polish exports was USD206 billion, which represented a 15-fold increase. For years Germany has been the biggest importer of our products – one fourth of our exports goes to that country. At the same time, over 50% of Polish exports goes to eurozone countries. None of our remaining trading partners has a bigger share in our exports than 7%. We are not as much dependent on economic conditions in a single region as before, but looking for new markets is still very important for us. Market diversification is equally important, or even more important, than strengthening one’s position on markets which have already been conquered.

The years 1999-2013, in particular, saw a relative increase in the exporting activity of new members of the European Union, including Poland, with a simultaneous loss of export markets by old EU countries (EU-15).

Among the latter, UK, France and Italy recorded the biggest drops.

It should be noted that not all export parameters look as good in Poland. One example is the per-capita value of exports. According to Eurostat data, in 1995 Poland’s per-capita

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work Poland’s entry to the eurozone may be a moment of truth... exports were worth only EUR600. And although the value has increased to reach EUR 4,800 in 2013, it was still one of the lowest in the European Union. Only Romania, Croatia and Bulgaria had lower per-capita exports. As a comparison, the EU average was EUR11,600 in 2013 and the figure for Germany was as high as EUR16,900.

It should also be noted that our exports are competitive in terms of price and of good quality, but we still do not have final products and global brands with excellent reputation as “Made in Poland.” One of the reasons is

that Polish firms are not innovative enough, which in turn is a consequence of low spending on research and development (R&D). The ratio of R&D spending to GDP is less than 1% in Poland while the eurozone average exceeds 2%. Additionally, the structure of R&D spending is unfavourable because the share of the private sector is low. Improving cooperation of the business sector with universities and other research centres is still a challenge. It is impossible, of course, to do so overnight – you need at least several years of work from the ground up.

The development of innovation is also hampered by administrative barriers, including the time and procedures involved in starting up a business. Having an idea is not enough – you also have to put it into practice.

Meanwhile, according to the “Doing Business 2015” report, it takes on average 30 days to set up a new business in Poland and four procedures are involved. This puts Poland in 85th place in the world. The situation is much better when it comes to access to credit - Poland ranks 17th in this respect.

But in the future Poland may lose the ability to compete in costs and offer low prices.

Poland’s entry to the eurozone may be a moment of truth as it will be accompanied by an upward pressure on wages and consequently wage convergence. The above will mean the need to exploit non-price sources of competitiveness, which requires making the Polish economy more innovative.

Much has already been done in the area of exports, but there are still challenges to meet. Among them is enhancing innovation in the Polish economy, developing “Made in Poland” products and a further diversification of markets for Polish exports. This is important because exports are a driving force behind the economy, which is especially important when internal demand weakens. •

Finance

New measures supporting development needed Maciej Proliński

Henryka Bochniarz, president of the Lewiatan Confederation

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he Lewiatan Confederation has issued 13 recommendations for the government of Prime Minister Ewa Kopacz designed to sustain the fast pace of economic growth and boost job creation. The recommendations, published in Lewiatan’s “White Book Bis,” were presented at the “Poland 2015-2025” conference in Warsaw on November 19 by Henryka Bochniarz, president of the Confederation.

The recommendations include building a coherent system supporting innovation, making it easier to receive VAT refunds, do away with excessive constraints and duties in hiring employees, and enable patients to contribute to health benefits financed from public sources.

“Our recommendations are not designed as systemic projects difficult to implement, but as tasks which the government, in conjunction with the parliament, is able to undertake and carry out if management is efficient and priorities clearly defined,” Henryka Bochniarz said.

“The government should focus on enhancing the efficiency of public institutions and, as regards legislative activity, on completing work on the draft laws that have already been started

and are awaited by businesses.” She added that over the past 25 years the Polish economy has become competitive, but new measures supporting development were needed. She listed three important goals, with which the governors should deal in the coming 10 years. “Our GDP should grow by 50% in this period. Poverty should be reduced by half. And Poland should enter the euro zone,” she said.

Minister of Finance Mateusz Szczurek took part in the panel discussion “Economic Policy, Public Finances.” The questions of how realistic it is by 2025 to enter the euro zone, reduce public debt to no more than 40% of GDP, bring down the share of fixed spending items in the overall national budget expenditure to no more than 60% and ensure that the investment rate is not lower than 25% were discussed with Andrzej Klesyk, president of the PZU SA insurance company. The discussion also concerned ways to increase the part of expenditure set aside for development and investment purposes in total expenditure from the national budget while at the same time pursuing a policy aimed at gradually reducing the ratio of public debt to GDP.

“We are now in the middle of the worst stagnation in Europe in at least 100 years,” Minister Szczurek said. “Although this environment is extremely unfavourable for Polish entrepreneurs as well, we are growing at a rate faster than 3%. The growth is based on very stable foundations. Our ambitions do not end at a GDP growth of 3.3%-3.4%.” The panel discussion ended with conclusions about the benefits and conditions for Poland’s entry to the euro zone.

Minister of Labour and Social Policy Władysław Kosiniak-Kamysz participated in the second part of the conference. “We rank second in Europe, after Germany, in terms of job creation in the past seven years,” he said.

“September was a record month in this respect, with 115,000 job offers submitted to employment agencies. But there are also other conditions for the rise in employment to be translated into higher productivity. Adjusting the education system to the needs of the labour market and lifelong learning are among the most important conditions.”

In his view, young people do not lack ambition or will, but in many cases the programmes of study they choose do not correspond with the real needs of employers. The minister stressed the need for career counselling to help people since the beginning of their education to choose their career path.

Referring to the opportunities and challenges that the Polish labour market will be facing in the near future, he pointed to the inevitable demographic processes leading to population aging, which means the change of the labour market model from the employer’s market to the employee’s market. “This could be exploited, for example, by developing the ‘silver economy,’ which means services intended for old people,” the minister said. “These people are becoming increasingly aware and demanding consumers. In order to prevent a labour shortage, we should be thinking about attracting back to Poland those who have left abroad. This is easier than inviting foreigners.

But for this to happen employers have to start wage competition with foreign job offers.” •

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Finance

An almost

mature market “Investors are increasingly interested in our part of the world,” Marcin Petrykowski, Managing Director and Regional Head for Central and Eastern Europe, Standard & Poor’s Ratings Services, tells “Polish Market.”

As you started to establish Standard & Poor’s presence in Central and Eastern Europe in 2014, you chose Warsaw as location for the regional head office. What has been the scale of the office’s operations in the first year of its activity?

In Central and Eastern Europe, we now issue more than 80 ratings for sovereigns, corporations, financial institutions – banks and insurance companies – cities and local government units. We also assign ratings to financial instruments, like for example covered bonds, that are currently heavily discussed in Poland, and financial structures offered to investors in general. The number of our ratings is growing steadily. This year, we already issued three new ratings in Poland and are working to further grow our franchise. With a steady rise in the number of ratings, the character of our regional hub in Warsaw will be changing. We will look to complement the currently performed sales and management function with locally based analytical operations, all with the aim to expand our active contribution to the development of the capital market in the region.

We do not have locally based analysts in Poland yet, but will be working to change this in the mid-term. At present, we use S&P analysts – of whom some speak Polish – based in London, Frankfurt, Paris, and Moscow. There are around 30 analysts working to support our CEE regional operations. pm

But at S&P, as is the case everywhere, ratings are based on uniform standards.

The S&P rating model is a global one. In this part of Europe we do not have any local scale.

We are developing a local scale on some specific markets, but not in Poland yet. The model is based on a methodology adjusted to the pm

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sector or the type of customer. An S&P rating offers transparency to the investor who wants to invest in assets regardless of the geographic location and the type of issuer. Thanks to the standardized benchmarking system that we offer, the investor can receive support in his optimal investment decision. Our rating is a global point of reference, developed on the basis of a methodology which has been systematized for years, as the company has been on the market for 150 years now.

Let us remember who benefits from our ratings. The model adopted by a rating agency, like S&P, is that those who want to issue bonds on the international market, the issuers, pay for our work but it is the investor who ultimately uses the information that our rating provides. It is the investor who takes decisions, among others based on our rating. We work with international investors, for whom Poland is only one of the countries in a bigger investment basket. The ability to make such comparisons is of fundamental importance to them.

How, then, should we interpret Poland’s rating?

Poland’s investment rating is now “A minus,” which gives Poland a solid position in Europe. Countries in Western Europe saw relatively high rating downgrades following the financial crisis while Poland has maintained its rating flat for the last seven years. Only the Czech Republic and Slovakia have higher ratings in this part of Europe – “AA minus” and A respectively. Poland and Slovenia have “A minus” and the remaining countries in the region have lower ratings. The Czech Republic and Slovakia have higher per-capita GDP. We estimate Poland’s this year at USD14,500.

And under the S&P model, it would have to pm

exceed USD16,000-17,000 to make the upgrade of the rating highly likely, assuming all other parameters remain unchanged. We estimate that our country will reach this level in the next several years. And although prospects for the Polish economy are “stable”, according to the S&P classification, we see the growth of the Polish economy “positively”to be precise 3,1% GDP growth this year We appreciate Poland’s GDP growth, see the balanced improvements in exports, its diversification and diminishing dependence solely on the situation of the European Union economy; at the same time not overestimating the impact of the Russian-Ukrainian conflict.

How do investors respond to these ratings?

Investors have recently looked at our part of Europe through the prism of investing in bonds issued by “emerging markets.” Why? Poland and Central and Eastern European countries have for a long time been in the basket of “emerging economies.” What has changed in this basket? Its biggest economies – Brazil, Russia, India and China – do not show investors the expected level of security and growth. Within this basket, Central European countries, including Poland, stand out positively from the rest. This is coupled with historically low interest rates in Western Europe.

The results have already been seen this year.

For example, two large Polish IPOs – Play and PZU – have been very successfully placed on international markets. Synthos, PGE and several other companies from our region have also exploited this “positive” window of liquidity. Investors are increasingly interested in our part of the world because they regard it as a secure hybrid between developing and mature markets.

• pm

PKP CARGO became the European Union’s first and only national freight carrier to be listed on a stock exchange, when it went public in Warsaw exactly one year ago. Its IPO was a huge success not only for the Polish railways but for more than 25 thousand employees of PKP CARGO as well. PKP CARGO launches 1000 train connections every day in as many as nine countries all across the European Union. Our revenues amount to more than one billion euros each year. PKP CARGO creates a pulsating freight bloodline for the continent’s industrial sectors by operating Europe’s main transport corridors and offers its clients complex logistics solutions. PKP CARGO wishes to thank its shareholders and clients for their trust.

Law & Taxes

What can be an object of

cession?

Anna Stasiak-Apelska, director of the Warsaw office of the Gajewski Trawczyńska i Wspólnicy Law Firm

C

ession, also called assignment (Latin: cessio), means the transfer of a liability from the property of the original creditor (cedent, assignor) to the property of a third party (cessionary, assignee) under an agreement signed by these parties. All rights associated with the liability, including claims for interest, are transferred to the cessionary together with that liability. All accessory rights are attached to the liability and cannot exist without it.

Importantly, any liability is transferrable if it does not contradict the law, a clause of the contract, or the nature of the obligation. The legal consequence of cession is the transfer from the cedent to the cessionary of a liability together with all the rights and duties associated with it.

Apart from changing the person of the creditor, the transfer does not involve any change to the content of the liability. A consequence of the transfer is that the original creditor is substituted with a third party. The above is the definition. But what is liability transfer in reality?

A unilateral declaration of intent by one of the parties is not sufficient for ceding a liability. A declaration of intent made by the cessionary, or the reception of the transfer by the cessionary, is also needed. In principle, the civil code does not require the debtor’s consent to the transfer of the liability.

The object of liability transfer is the creditor’s right to demand a benefit from the debtor.

Every liability, both monetary and non-monetary, may be ceded if it is assignable and if none of the three conditions mentioned above is involved, in which case the transfer is not allowed.

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A provision of the law may directly ban the transfer, for example the right of redemption is not assignable. Statutory bans are strictly obligatory and if a transfer is made with their violation the transfer contract is invalid.

A ban on cession may be included in a cooperation agreement between the parties. Additionally, if the cession of the liability is banned by the contract the parties may make the cession dependent on the debtor’s consent or on other conditions, like for example a specific form of the cession contract. The inability to cede may also be due to the nature of the liability if it is personal in character. In this case, the creditor cannot cede his or her rights to another person. An example is alimonies, which are strictly personal in character.

Another characteristic of cession is that it becomes effective at the time of signing the contract. The parties do not need to perform any additional actions in order to transfer the liability to the cessionary.

The civil code does not require that a cession contract should have a special form. The contract may become effective in any form, in keeping with the relevant civil code provisions which define special forms for the validity of some actions.

The liability which is to be ceded should exist at the moment of signing the contract. It should also be defined in terms of the legal relationship from which it arises as well as the parties and object of the benefit. The cession of future liabilities is also permissible. Both the judicature and literature refer to the sale of existing and future rights. In the case of future

liabilities, one should take into consideration their division into conditional and fixed-term liabilities, and liabilities which do not exist at all at the time of signing the contract because not even the legal relationship from which they could arise has been established.

It is also regarded as permissible to cede liabilities arising from mutual obligations. This situation is quite special because the benefits of the parties are closely connected with each other as the very name – mutual benefits - indicates. However, the sale of such liabilities cannot be excluded. It may happen that if a liability from a contract is transferred a tripartite relationship may arise in specific cases, with the cedent remaining obliged to the debtor. This is the case when the cession is not coupled with the cessionary taking over the cedent’s debt.

In the case of security or mortgage transfer, the collateral may be ceded only with the liability which it secures. Cession regulations are applied to these limited property rights only when the provisions regulating these rights do not provide for different solutions. Additionally, if a cession contract is possible, in some cases – like for example ship mortgage – the contract has to have a required form and an entry in a relevant register has to be made.

Liability cession is also used to secure the liability. According to the judicature, a cession contract may include, as a security, the provision on a cancellation condition. Its fulfilment results ipso iure in the return of the ceded liability to the cedent’s property (Supreme Court ruling of October 18, 2002, V CKN 111/2001). •

Pearls of the Polish Economy

We are making ad hoc

adaptations to ever-changing conditions Piotr Liszek, Deputy President of the Board of Petrax Sp. z o. o., talks to Marcin Haber.

Let me start by referring to the financial results achieved by the company in recent years. Last year you won first place in the Large Pearls of the Polish Economy ranking and this year you were rated second. What is the key to such extraordinary results in the demanding fuel market?

We put people in the first place. Our company trades in diversified petrochemicals, and our employees play a vital role in this activity.

The Management Board sets the development directions, but, in practice, it is the carefullyselected staff to whom we owe most of our development potential. pm

Does the Pearl of the Polish Economy award act as an incentive to intensify efforts, or have you reached the level where awards merely constitute a bonus but do not influence the company’s operations?

This kind of recognition is an undoubted incentive. Last year we were rated first, and this year second, so we feel strongly motivated to return to first position. These awards are quite important to our further development.

The Pearl of the Polish Economy Diploma is pm

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displayed in a visible place and draws our guests’ attention. Our contractors congratulate us on this achievement.

Let us now concentrate on current affairs.

The present political situation, reflected in a clear-cut separation from the Russian market, which is one of the major fuel suppliers, has made it challenging to operate in this market. Has this also affected you?

We focused on the eastern market at the outset of our activity. Since Poland’s accession to the European Union, we have redirected our growth paths mainly towards the EU countries.

In 2002-2004 we supplied monthly around 20 thousand tonnes of crude oil from Ukraine to the southern Polish refineries. By the end of 2004, in view of the stringent EU requirements regarding fuel quality, the processing of crude oil was abandoned in most facilities of this kind. This was when we focused out attention on western markets. The products we trade in comprise mainly liquified fuels (liquid gas and fuel oil), along with biofuels, which we have supplied since their obligatory entrance to the Polish market, ordered by the European pm

Union. At the moment, given the unforeseeable nature of the eastern market, and especially the geopolitical situation in the East, we are only focused on the West. Furthermore, I don’t really believe in the complete isolation of Russia in Europe. Just think about the German-Russian, French-Russian or Hungarian-Russian relationship. Has anything changed as regards the supply of natural gas or crude oil? It is very likely that Russia will find it more difficult to operate without Euro than Europe without Russian supplies, which has already found confirmation in the Russian macro-economic results.

Do you think your business will remain stable if you limit yourselves to the western markets without supporting the eastern ones?

This is exactly what I think. Throughout our 15-years’ presence in the challenging fuel market we have learnt that the business mentality and attitude of the eastern and western European contractors are extremely dissimilar. Let us take, for instance, the payment mode for deliveries. The companies situated in the countries aligned to Russia demand advance payments pm

Pearls of the Polish Economy a month before delivery, although there is a wide variety of instruments securing the interests of both the buyer and the seller, which are commonly used in international trade.

The western development direction mainly entails the financial security of transactions and the diversified opportunities flowing from the central European location of Poland. Obviously, unreliable companies that seek to strike lucrative deals within their short-lived prosperity can be found everywhere, and Germany, Austria and the Czech Republic are no exception.

Moreover, the history of our company shows that an efficient business activity can be pursued by adjusting to the changeable environment and focusing on the viable areas and commodities. Currently these are western markets and biofuels. We operate under the “carpe diem” rule, which has proven 100% right.

In recent weeks we have encountered a phenomenon which was non-existent for many years before, namely the dropping prices of fuel deliveries to end recipients. Does this mark the beginning of a longer-term trend or is this a temporary price fluctuation?

You are aware that the prices of fuel oil, gasoline or gas are closely linked to the western commodity-exchange trends, and especially to crude oil prices. One may obviously speak of some conspiracy theories, according to which some fundholders have decided to teach President Putin a lesson by reducing the crude-oil barrel price to +/- 70-80 dollars. As reported

by Deutsche Bank, USD 100 per barrel is the break-even point for Russia as it is currently sustaining considerable losses. However, this is the effect of economic sanctions imposed by the West. Gasoline and fuel-oil prices follow those of crude oil, which is why they have dropped at petrol stations as compared to the previous year.

However, the fuel sector Act introduced this year imposes on such enterprises as ours the obligation to provide financial security towards possible future liabilities to the State Treasury, amounting to PLN 10 million. This results in a strong uncertainty as regards the fuel prices to be charged in the Polish market in the coming months. There are very few private companies that can afford such security. Undoubtedly, large corporations will benefit from this solution. In addition, last week the Ministry of Finance issued a warning concerning the fuel market, recommending that fuel prices should be set in relation to the refinery price levels.

The question of whose refinery price is to be applied, that of producers from neighbouring countries, or that of Lotos and Orlen, remains unclear. Why should the refinery price be dictated by market monopolists? I am not a fortune pm

teller or George Soros - predicting the future, but I fear that in a few months’ time, even if the price of crude oil remains low, fuel prices in Poland will actually be higher than would result from global transaction prices, because the large corporations will have no competition in the Polish market.

Are you suggesting that the State’s decisions are unfavourable to smaller enterprises?

Under the Act on Freedom of Economic Activity, the State is expected to provide equal assistance to all enterprises. The revenue earned by small and medium-sized enterprises constitutes a huge part of the GDP, and these entities provide a considerable number of jobs.

Had we been unable to obtain the additional financing at the level of PLN 10 million, we would find it extremely difficult to continue operating and remunerating our employees to whom we are committed, just like they are to their work. We feel responsible for providing them with adequate means to perform their professional duties.

My opinion is that the Polish market players will soon comprise only large corporations and some 7-8 private enterprises capable of dealing with foreign trade in liquid fuels. This may seem good news to us, as the State itself has “cut out” the smaller entities competing with us. Nevertheless, this is deeply unfair, as it places enormous barriers on market entrance, thereby reducing the competition. It further seems to me pm

We operate under the “carpe diem” rule, which has proven 100%right.

that the European Union is much more concerned about developing entrepreneurship in Poland than are our national institutions. I am mindful that we represent a strategic sector but 57 different control mechanisms within a year seems clearly overdoing it, does it not?

This year you are celebrating the 15th anniversary of your activity. Tell us how you have made it.

The origins of our company date back to 1997. President Sylwia Mikołajczyk worked for the crude-oil purchase section of Petrochemia pm

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Pearls of the Polish Economy Płock (currently PKN) whereas I was employed in a private enterprise and I cooperated with Ms. Mikołajczyk, delivering various semi-finished products for further treatment. At some point, we decided to pursue this cooperation by establishing our own company, which we named Petrax. We have built it from scratch and currently we are among the 500 largest enterprises countrywide. We have always been driven by trustworthiness, loyalty and honesty. Our company is based on those three principles, which has earned us trust from our domestic and foreign partners. Last week, a Tax Office worker told me that we are an exception in the fuel market with 15 years’ experience. I have no idea if this was intended as a compliment or not!

A Jubilee always brings memories of the past, but it also creates an opportunity to make plans for the coming 15 years. Have you come up with some new development ideas?

Whenever I am asked by banks to forecast the results for the coming year or five-year period, I always say “I don’t know”. Frankly speaking, I am unable to make such predictions, as no one could have been able to predict that our country would bring into force the PLN 10-million security instrument which I mentioned before. It has a considerable bearing on pm

the financial results and competitive power of the company. On the one hand, we are continually adjusting to the changing market situation. We are ready to change whenever necessary. We are willing to deal with inconvenient subjects that others fear to address. We are also extremely flexible, communicative, and willing to stay on the move and handle all matters without unjustified delay. On the other hand, we could hardly predict the events in Syria and Lebanon, or the dealings of other players on the crude oil market. We are making ad-hoc adaptions to ever-changing conditions.

Do you make any simulations?

No, we don’t. Please believe me that we are unable to predict what is coming. Who could have foreseen the revolution in Syria, the Arab Spring, or the economic crisis in 2008? Everyone has access to press and stock-exchange information but no one can predict future events.

We have established a development strategy but it evolves in line with the changing environment and us. For instance, biofuels constitute one of the prospective areas. We intend to acquire certain market segments that will provide a strong future feedback, including the esterification segment of plant oils and frying oil. pm

Let us return to your Jubilee. You have spoken about the beginnings of your activity.

Could you elaborate on the influence exerted by Poland’s accession to the European Union? .

I recall that we were invited to Crimea, Ukraine, by our suppliers and together we wondered how things would go after the 1st of May (2004 - the date of Poland’s accession to the EU - editor’s note) and how the Polish reality would change. Actually, the accession has had positive outcomes. Our western contractors perceive Poland and our domestic enterprises as trustworthy partners, and the economic results achieved by Poland in recent years place us high in the ratings. Then we organised the Euro 2012 football tournament. I was extremely satisfied when our German contractors, whom we invited to this event, entered the magnificent brand new Warsaw stadium. I was truly proud that we had been able to bring this investment project to completion at such a short notice. As regards the market, we have brought a breath of fresh air and novelty to Western Europe, introducing a new broader angle of looking at business activity. There are no problems we could not solve. In fact, we needed Europe as much • as it needed us. pm

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Innovation

or

With without

the euro?

Polish and British experts taking part in the debate “Inside - Out: Present and Future Challenges for Non-Eurozone EU Member States,” held in the Banker’s Club of the Polish Bank Association (ZBP) on November 4, talked about costs and benefits of staying outside the eurozone. Around 90 persons took part in the debate apart from the experts.

F

ormer Polish deputy Prime Minister and Minister of Finance Jacek Rostowski said the European Union had been unable to effectively counteract the financial crisis, which was merely temporarily fended off. He added the EU’s impotence had encouraged Vladimir Putin’s aggression against Ukraine, arguing that the crises in the EU and in the East give momentum to each other. Jacek Rostowski also said the European Union had not managed yet to create a political union, which is necessary for the eurozone to function in the right way.

In his opinion, without political integration and structural changes Europe faces the risk of three-zeros scenario: zero inflation, zero interest rates and zero economic growth.

Sarah Tiffin, deputy head of mission at the British Embassy in Warsaw, said Britain was very much interested in the eurozone’s being repaired and operating effectively but for the time being Britain’s adoption of the single currency was out of the question. She added the world was changing and the euro zone should also adjust to the new conditions, which was in Britain’s interest. In her view, the EU should focus on restoring economic growth, enhancing competitiveness and creating new jobs.

To ensure this, the reforms should lead to deregulation and the development of the single market. In response, Jacek Rostowski said he supported these views, but was worried about Britain’s demands to constrain free movement within the borders of the EU, the principle which is a pillar of the single market.

The remaining participants in the debate on the British side – Simon Nixon, “Wall Street Journal’s” main commentator on European affairs, Gergely Polner, head of EU affairs of the

British Bankers’ Association, and Petros Fassoulas, chairman of European Movement UK – said eurozone membership was a long-term problem for Britain because it is one of the three countries, together with Denmark and Sweden, not obliged to adopt the single currency. This means that at some point in time almost the whole of the EU will be integrated within the eurozone while countries outside the zone will be peripheries with a limited capacity to decide about development directions for the EU. Britain and Poland are now the only large EU economies staying outside the eurozone. The British participants in the discussion stressed that London’s City supported the currency union and that many banks in the City already conduct operations in the euro.

Vice-President of the Polish Bank Association (ZBP) Mieczysław Groszek pointed to the emerging banking union as one of the EU’s new pillars, alongside the fiscal, political and energy union. He stressed these were no longer merely slogans, but issues the EU was already working on while the construction of the banking union was the most advanced.

He also argued in his presentation that Poland already more than met all requirements of the banking union, in particular those in the area of banking supervision and deposit guarantees.

Prof. Tomasz Grosse of the University of Warsaw said the eurozone could follow either the “German path,” that is enhance financial discipline and make structural changes, or the “Italian path,” which means saving the economic situation through interventions of the central bank, which would be buying debt securities, including government bonds, to an unlimited extent.

Prof. Stanisław Gomułka, chief economist of the Business Centre Club (BCC), said that, apart from financial discipline, it was also important to discipline banks and states through the market by creating conditions where they would really risk going bankrupt.

Deputy Marcin Święcicki, chairman of the European Movement Forum said that, despite the financial crisis, more and more countries were entering the eurozone. “Slovakia adopted the single currency in 2009. After Estonia and Latvia, which adopted the euro in 2011 and 2014 respectively, Lithuania will join the eurozone on Jan. 2015 as the last Baltic state. Staying outside the eurozone, Poland is becoming less and less attractive for investors and will be losing its competitiveness,” he added.

President of the Polish Bank Association Krzysztof Pietraszkiewicz said that restoring public confidence in the European currency required openness in debate about eurozone problems. Maria Dunin-Wąsowicz, member of the Board of the European Movement Forum, said membership of the eurozone meant combining the macroeconomic and financial dimension with international security. In the opinion of Prof. Katarzyna Żukrowska of the Warsaw School of Economics (SGH), eurozone countries will not solve their problems if they limit themselves to fighting for their national interests at a time of the globalized market. And Ryszard Petru, head of the Polish Economists’ Society, spoke about Poland’s strategy for eurozone membership preparations in the context of British preparations.

•

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Pearls of the Polish Economy

12

Pearls of the Polish Economy th

Gala 32 polish market

Pearls of the Polish Economy

• The 12th edition of the Pearls of the Polish Economy Gala, a very special event organized by the publishers of the English-language monthly “Polish Market,” was held in the Ballroom of Warsaw’s Royal Castle on November 7. Deputy Prime Minister and Minister of the Economy Janusz Piechociński, President of the Polish Academy of Sciences Prof. Michał Kleiber and Rector of the Warsaw School of Economics Prof. Tomasz Szapiro were patrons of the Gala.

Twelve years ago Krystyna Woźniak-Trzosek, editor-in-chief of “Polish Market,” initiated cooperation between the monthly and scientists – professors of economics. The result is research into the condition of Polish enterprises published in the form of the Pearls of the Polish economy ranking. She said at the Gala: “The past quarter-century was one of the best periods, or perhaps the best one, in Poland’s history.”

Krystyna Woźniak-Trzosek, Editor-in-Chief of “Polish Market”:

“This year’s gala coincides with important developments in our cou n try, i m porta n t anniversaries, including celebrations of the 25th anniversary of our freedom. I have to tell you that “Polish Market” also has its small jubilee this year. We have turned 18 and, as editors and journalists of this magazine, we have a feeling that we have been granted an opportunity to take part in something absolutely exceptional – after all, the past quarter-century was one of the best periods, or perhaps the best one, in Poland’s history. Over these years, “Polish Market” editors – steering clear of “Polish-Polish wars” and several-day sensations” - proudly showed to the world the most important and biggest achievements of Polish culture, science and economy.

In this way, we made our contribution to promoting the country, and building brand Poland and Poland’s position in the world.

An anniversary is a time of debates, conferences and meetings, at which we ask ourselves the questions: “What next for Europe?, What next for Poland?, What about our economy?, What about our security?” Recently, we have been asking these questions in the context of change in European Union leadership and the change of leadership in Poland. What we expect from politicians is, first of all, to create good and friendly conditions for the development of enterprise, and for the development of innovative and creative businesses. We want EU money to be utilized wisely. We want to have security guaranteed. And politics, as deputy Prime Minister Janusz Piechociński said aptly, serves people well only when it serves the economy.”

Janusz Piechociński, deputy prime minister and minister of the economy:

“What joy it is that we are meeting again here, at the Royal Castle - we are all present. Among us are spiritual guardians – people representing our Church, science, culture and arts. There a re e n t re p re n e u rs and citizens. There is self-government and a community. And we can look at each other, at businesses, products and services – at the entirety of our attitudes towards the changing world and ourselves.

These days, a special “good”, which many contemporary people lack so much, is confidence. And we - strongly rooted in relations and culture, including the culture of business, aware that the world needs Polish energy and Polish friendliness, well tried in the times of the great Polish change associated with the Solidarity movement – express our thanks with full confidence today to all those who have won the award for what they have achieved, by presenting them the Pearl of the Polish Economy.

The economy needs leaders among entrepreneurs, able to build strong and recognizable bands, entrepreneurs who will be directing their firms onto a path of expansion and growth. But these thanks of ours include a call for them to become even better.

I often repeat that good politics serves people only when it serves the economy. It is not only products that are made in the economy. We all go to work not only to ensure income for our families, but also to become fulfilled - as people, as managers and as those who create joint responsibility for themselves, their family and their homeland. I wish to thank the editorial board of “Polish Market” for forcing us to reflect on this.”

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Pearls of the Polish Economy Prof. Tomasz Szapiro, rector of the Warsaw School of Economics (SGH):

all, every company cites the ranking in which it has come out well. So, what kind of rankings, ratings and assessment methods are really important?

Three conditions have to be met. The rankings have to be well known – because we talk about these assessments with each other. Secondly, they have to be read and, thirdly, they have to be awaited. If a ranking is not good and does not meet such conditions it can cause very much damage because the public notices only the winners, sometimes also silver and bronze medals. But further places may be doomed to being unnoticed. Meanwhile, standing out against the market is a necessary condition today.”

Prof. Michał Kleiber, one of

promotional purposes. The award plays a great role in creating heroes of our times. We have a problem with giving publicity to our successes. It is worthwhile for us to show this kind of examples to ourselves.”

“When I came here several minutes before the beginning, you could feel emotions in the air. And undoubtedly there was curiosity behind these emotions about who would turn out the best. Such a curiosity may be empty. We are built in such a way that when we get to know something our needs become satisfied.

I have been given the task to show that this is not empty curiosity, that it exists because it allows us to learn about something important, something which is very difficult to achieve singlehandedly. It is difficult to select the firms to be granted the Pearls award because they can be assessed according to many different criteria: for example, how much every zloty returns after a year or three years, or to what extent the firms meet the needs of the region. And how to combine this all? This is what rankings and people who compile them are for. There are many myths about rankings, mainly that they are objective, and that they are simple or very complicated. This seems strange – for how can it be possible that a ranking is not objective? This problem of assessment requires being very carefully examined and allow various subjectivities to function because it is not only about curiosity. It is also about benefits incomparably more notable.

Rankings have started to surround and overwhelm us. There are so many rankings that the question arises which to choose. After

I

the patrons of the Gala, asked by us a moment before its beginning whether receiving such a distinction was a factor motivating entrepreneurs to work harder, replied: “I am sure of that.

People rarely emphasize this in their addresses after receiving these awards, perhaps for the sake of modesty, but see in practice that the entrepreneurs are proud and use the awards for

“The award plays a great role in creating heroes of our times.”

Prof. Michał Kleiber

•

Pearls of the Polish Economy

From left: Krzysztof Król, Krzysztof Kwiatkowski, Prof. Andrzej Rottermund, Elżbieta Radziszewska, Janusz Piechociński, Krystyna Woźniak-Trzosek, Edward Trzosek, Prof. Michał Kleiber, Teresa Sukniewicz-Kleiber, Prof. Tomasz Szapiro

Special Pearl for a Global Company A Special Pearl for a Global Company was awarded to KGHM Polska Miedź SA. The award was collected by Herbert Wirth, president of the company.

Receiving the award, President Herbert Wirth said: “I am very pleased that KGHM Polska Miedź SA has received such an honourable title - of a global company. It happens that yesterday I also received a distinction awarded by President Bechelet. This would not have been surprising if it had not been for the fact that the distinction is not merely for our investment, but also for a very innovative and pro-social project carried out in the Atacama. I wish to sincerely thank you once again and let me stress again what the deputy prime minister said. When you look at Poland today, after 25 years of transition, we really need more confidence.

Confidence is the foundation of good business. Without it, a technological concept will achieve excellence, but people will be atomized. I wish to thank you again and appeal: Let us trust each other.”

The results of the Pearls of the Polish Economy ranking were announced during the Gala. In the Grand Pearls category the winners were: •

PGE Polska Grupa Energetyczna

•

Totalizator Sportowy Sp. z o.o.

•

Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji w m. st. Warszawie

In the Large Pearls category the winners were: • • •

Grupa GPEC

Petrax Sp. z o.o.

AC SA

In the Financial Institutions category the winners were: •

MetLife Towarzystwo Ubezpieczeń na Życie i Reasekuracji

•

Santander Consumer Bank

•

Herbert Wirth receives a Special Pearl for a Global Company

Compensa TU SA VIG

The ranking was compiled thanks to cooperation with the Decision Support and Analysis Unit at the Institute of Econometrics Warsaw School of Economics.

It should be stressed that the survey in which business took part was fully free of charge.

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Pearls of the Polish Economy

the winners of the ranking •

the grand

Pearls category 1st place - PGE Polska Grupa Energetyczna SA, Marek Woszczyk, President of the Board

2nd place - Miejskie Przedsiębiorstwo Wodociągów i Kanalizacji w m. st. Warszawie (MPWiK) Hanna Krajewska, Member of the Board

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3rd place - Totalizator Sportowy Sp. z o.o. - Wojciech Szpil, President of the Board

Pearls of the Polish Economy

1st place - GPEC Group - Igor Wasilewski, Member of the Board

3rd place - AC SA - Katarzyna Rutkowska, President of the Board

the Large

Pearls category 2nd place - Petrax Sp. z o.o. - Piotr Liszek, Vice President of the Board

•

the Financial Institutions category

1st place - MetLife Towarzystwo Ubezpieczeń na Życie i Reasekuracji SA - Łukasz Kalinowski, President of the Board

2nd place - Compensa TU SA VIG - Ireneusz Arczewski, Vice President of the Board

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Pearls of the Polish Economy

3rd place - Santander Consumer Bank SA - Arkadiusz Wiktor Przybył, President of the Board

From left: Ireneusz Arczewski, Arkadiusz Wiktor Przybył, Łukasz Kalinowski

•

Award for promoting

ecology

Janusz Krajmas AND Michał Rzytki - Director, Organic Farming Department, Ministry of Agriculture and Rural Development

Krystyna Woźniak-Trzosek, Janusz Krajmas and Kazimierz Stańczyk

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Krystyna Woźniak-Trzosek, Janusz Krajmas and Jerzy Antoni Sobociński

Janusz Krajmas and Andrzej Parafinowicz

Pearls of the Polish Economy

Progress 2014 Pearls of Innovation awards were also presented during the Gala. In the Enterprise category, the award went to Eco-Sol SA and LfC Sp. z o.o. The National Centre for Nuclear Research received the award in the Innovative Research Unit category.

And the award in the Inventor/Scientific Personality category was presented to Assoc. Prof. Danuta Ciechańska.

the Enterprise category

Eco-Sol SA - Sebastian Bogusławski, President, Sławomir Górecki, Vice President, and Ireneusz Piskorz, a son of the inventor of the vertical-axis wind turbine

the Innovative Research Unit category

National Centre for Nuclear Research - Grzegorz Wrochna

LfC Sp. z o.o. - Izabela Cęcek, Director, and Jacek Cęcek, General Director

the Inventor/Scientific Personality category

Prof. Danuta Ciechańska

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Pearls of the Polish Economy

Honorary Pearls The Jury of the Honorary Pearls award Chairman of the Jury: Prof. Janusz Lipkowski, Head of the Department of Physical Chemistry of Supramolecular Complexes Institute of Physical Chemistry Polish Academy of Sciences Prof. Jerzy Buzek,

Chairman of ITRE Committee, former President of the European Parliament and Polish Prime Minister Tadeusz Donocik,

President of the Chamber of Commerce

and Industry in Katowice

Grażyna Jaskuła , Vice-President of Oficyna Wydawnicza Rynek Polski Prof. Ksawery Piwocki,

former Rector of the Academy of Fine Arts in Warsaw Prof. Andrzej Rottermund,

Director of the Royal Castle in Warsaw

Adam Szejnfeld,

member of the European Parliament Janusz Steinhoff, PhD,

former deputy Prime Primer and Minister of the Economy, Chairman of the Council of the Polish Chamber of Commerce Prof. Andrzej Wiszniewski,

former Minister of Science and former Rector of the Wrocław University of Technology Krystyna Woźniak- Trzosek, Editor-in-Chief, President of the Rynek Polski Publishers Co. Ltd.

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H

onorary Pearls awards were presented at the Gala for the ninth time. The awards are granted by the Award Committee composed of Prof. Jerzy Buzek, Tadeusz Donocik, Grażyna Jaskuła, Prof. Janusz Lipkowski, Prof. Ksawery Piwocki, Prof. Andrzej Rottermund, Adam Szejnfeld, Janusz Steinhoff, Prof. Andrzej Wiszniewski and Krystyna Woźniak-Trzosek. This very special award is intended for outstanding persons and institutions who, thanks to their achievements, experience, prestige, undisputable personal values and unblemished reputation, may be called ambassadors for the highest Polish values.

Pearls of the Polish Economy

ECONOMY CATEGORY The award in the Economy category went to the Polish Chamber of Commerce (KIG).

“We are honoured, the more so as this prestigious award has been granted to us on the eve of our 25th anniversary. The fact that the distinguished Award Committee has appreciated our modest efforts will be motivating us to further and even better activity aimed at raising the competitiveness of the Polish economy because this is our mission,” Marek Kłoczko, vice-president and director general of the Polish Chamber of Commerce, said upon receiving the Honorary Pearls statuette.

Adam Szejnfeld, member of the European Parliament, sent special congratulations to the Polish Chamber of Commerce: “In the course of over two decades since its inception, the Polish Chamber of Commerce has supported Polish firms from almost all sectors and industries, helping them to promote their products outside our country by organizing, for example, international exhibitions not only in Europe, but also elsewhere in the world. The Chamber has pursued this goal with iron consistency over the past years and the effects of this activity are visible today. Not only Poland, but also many Polish brands are already known and recognizable across the world, and the words ‘Made in Poland’ have become synonymous with good quality. The Institute of Brand Poland, set up by KIG, has made a lot in this area. It has supported Polish firms in building and strengthening the image of our country and enterprises for over 20 years.

Supporting, helping and promoting Polish enterprises and Polish brands abroad, and encouraging foreign companies to invest in Poland prove the Chamber’s long-term and comprehensive approach to the prospective needs of the socioeconomic development of our country.

On the occasion of receiving the Pearl of the Polish Economy award, I wish to sincerely congratulate the Polish Chamber of Commerce, all its member organizations and workers on this prestigious distinction. Wishing them success in the years ahead, I also want to thank them for the many years of work so far and commitment to the problems of entrepreneurs doing business in Poland and outside our country.”

“The fact that the distinguished Award Committee has appreciated our modest efforts will be motivating us to further and even better activity aimed at raising the competitiveness of the Polish economy because this is our mission,” Marek Kłoczko

National Chamber of Commerce - Marek Kłoczko, General Director, and Andrzej Piłat, Vice President

Deputy Prime Minister Janusz Piechociński and Marek Kłoczko

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Pearls of the Polish Economy

SCIENCE CATEGORY In the Science category the award went to Prof. Henryk Samsonowicz and Prof. Andrzej Pawlak.

Prof. Henryk Samsonowicz, a historian and former minister of education, said when thanking for the award: “As great ancient sages used to say, memory is a great power. I belong to the group of people who try to remember and create memory, without which there is no community, neither a family nor a national, ideological or religious community.

Therefore, I understand that this award has been granted to ensure that memory always accompanies our activities, that it is present when we create something new.”

“...memory is a great power.”

Prof. Henryk Samsonowicz

Prof. Henryk Samsonowicz with his wife

Krystyna Woźniak-Trzosek, Prof. Janusz Lipkowski and Prof. Henryk Samsonowicz

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Prof. Henryk Samsonowicz speaking

SCIENCE CATEGORY Pearls of the Polish Economy

Prof. Andrzej Pawlak, an inventor called a genius of innovation and the holder of over 150 patents, said: “I would like to thank the Award Chapter for this distinction and for noticing my efforts to support Polish universities, institutions and, recently, also regions. The Pearl I am receiving will be a pearl in the crown of all the awards I have collected over the years – this one is the dearest to my heart because it is from Poland. I would like to say that you have chosen a unique place for granting such a Pearl because the Royal Castle is a symbol of Polishness and the Polish Crown. This makes the honour I have received even greater.”

“The Pearl I am receiving will be a pearl in the crown of all the awards I have collected over the years” Prof. Andrzej Pawlak

Prof. Andrzej Pawlak and Prof. Tomasz Szapiro

Krystyna Woźniak-Trzosek, Prof. Janusz Lipkowski, Prof. Henryk Samsonowicz and Prof. Andrzej Pawlak

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Pearls of the Polish Economy

Promoting Patriotic Values CATEGORY Cardinal Henryk Gulbinowicz and Jerzy Koźmiński received the award for promoting patriotic values.

Cardinal Henryk Gulbinowicz, archbishop metropolitan of Wrocław, said:

“I do not deserve this Pearl. I admire “Polish Market” for having the people who search for such old persons as me, in the 92nd year of life. I am pleased by this award and would like today to draw your attention to the fact that I come from the eastern borderlands of the Polish Republic, and that after the Second World War many people like me came here from those parts. They came to Lower Silesia or to Warsaw. And here there were ruins. But they did not sit down among the ruins to cry. They got down to work instead. And today I am witnessing this great joy that so many outstanding people are receiving awards for their efforts, their wisdom and their hearts. Let these treasures multiply and let them contribute to the further development of our homeland, just as it deserves. I have received the life motto from my mother: ‘If you receive something try to respond in a proper way.’ In 1999, I witnessed Wrocław celebrating the 1,000th anniversary of its diocese. Today, I would like to give the papal signet ring associated with this event to the ‘Polish Market’ board.”

“If you receive something try to respond in a proper way.”

Cardinal Henryk Gulbinowicz Cardinal Henryk Gulbinowicz, Krystyna Woźniak-Trzosek, Senator Józef Pinior and Janusz Steinhoff

Krystyna Woźniak-Trzosek, Archbishop Celestino Migliore and Cardinal Henryk Gulbinowicz

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Senator Józef Pinior and Cardinal Henryk Gulbinowicz

Promoting Patriotic Values CATEGORY Pearls of the Polish Economy

The award statuette was presented to Jerzy Koźmiński by Krystyna Woźniak-Trzosek in the company of Katarzyna Kacperczyk, deputy minister of foreign affairs, and Stephen Mull, US ambassador to Poland.

Katarzyna Kacperczyk emphasized the great diplomatic experience of the laureate and pointed to him as an example of work for others. “As a deputy minister in the Ministry of Foreign Affairs and a career diplomat, I feel very attached to Mr Ambassador Koźmiński personally. As a member of the younger generation in the Ministry, I can say that you have always been and will always be an example for us.”

US Ambassador Stephen Mull said: “It is a great honour for me to have an opportunity to present the Honorary Pearl award, granted by the ‘Polish Market’ magazine, to Jerzy Koźmiński for promoting patriotic values. Ambassador Koźmiński is one of the greatest statesmen in today’s Poland and a real friend of the United States.”

Jerzy Koźmiński, former ambassador, former deputy minister of foreign affairs and active participant in the negotiations leading to Poland’s entry to NATO: “It is a great honour for me and a source of great emotion that I have an opportunity to stand here today in front of you by a decision of the Honorary Pearls Award Committee. I am doing this with a sense of humbleness in the face of such eminent personalities making up the committee and those who have been honoured with the awards today and in the past. If those who have taken the decision wanted to associate my person with the effort towards Poland’s NATO membership I would like to speak about the circumstances thanks to which I could become a noticeable part of that process. Firstly, being aware of a great goal, a great challenge, released additional reserves of energy in everyone who took part in building a secure place for Poland in the new international order which was taking shape then. Secondly, despite frequent changes in the nation’s leadership at that time, Poland’s foreign policy was pursued in a sure, stable and matter-of-fact manner. As the changes were really frequent, during my six-year stay in Washington I had four foreign ministers, five defence ministers, four prime ministers and two presidents. Thirdly, and finally, an enormously important role in the efforts to anchor Poland within the North Atlantic Alliance was played by the Polish-American community, including such eminent figures as Prof. Brzeziński and Jan Nowak-Jeziorański, but also our American friends, including Ambassador Stephen Mull, a guest of this evening and a person very friendly to Poland. (…) I would like to thank you once again for the honour I have been granted today and for your kind attention.”

“It is a great honour for me and a source of great emotion that I have an opportunity to stand here today in front of you...”

Jerzy Koźmiński

US Ambassador Stephen Mull and Jerzy Koźmiński

Deputy Minister Katarzyna Kacperczyk, Krystyna Woźniak-Trzosek, Jerzy Koźmiński and Stephen Mull

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Pearls of the Polish Economy

Promoting social Values CATEGORY Irena Koźmińska received the award for promoting social values.

The award for promoting social values went this year to Irena Koźmińska, the founder and president of the ABCXXI - All of Poland Reads to Children Foundation. In 2001, she initiated the social campaign under the slogan “All of Poland Reads to Children.” Its main goal was to encourage parents, teachers and other adult people to devote at least 20 minutes a day to reading to children. She said: “I feel very awkward today. When initiating the campaign ‘All of Poland Reads to Children,’ I was guided by the words of the American author of ‘Read-Aloud Handbook,’ Jim Trelease: ‘A nation, which reads little, knows little. The nation, which knows little makes wrong decisions - at home, in the market, in the courts, at the ballot boxes. Finally, the whole nation bears the consequences of those decisions.

The uneducated majority is able to outvote the educated minority - which is a very dangerous aspect of democracy.’

Polish people who read account for slightly over 30%. More than 60% of Poles do not read. “It is impossible to persuade a 15-year-old, or 50-year-old, to read if they do not have the reading habit. But we can arouse love for reading if we read to the child since the youngest age. Our foundation has recently prepared an internationally unique project for mothers in most maternity hospitals in Poland – “My Child’s First Book.” It is a book to be read to children since their birth. Research into the brain tells us that the brain should be stimulated since birth and that early language education is the best way to bring up an educated, moral and wise person. A single copy of the book costs less than PLN8 including VAT. But for every mother throughout Poland to receive the book we need as much as PLN3.5 million. We have still been unable to raise the money. But I believe there are people in this room who would like Poland to have increasingly wise children because they will grow to form a wise society.”

“we can arouse love for reading if we read to the child since the youngest age.”

Irena Koźmińska

Krystyna Woźniak-Trzosek and Irena Koźmińska

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Krystyna Woźniak-Trzosek, Deputy Speaker of the Parlament Elżbieta Radziszewska and Irena Koźmińska

Krystyna Woźniak-Trzosek, Irena Koźmińska and Elżbieta Radziszewska

Pearls of the Polish Economy

CULTURE CATEGORY In the Culture category the award went to: - Prof. Leon Tarasewicz - Painting - Biuro Projektowe JEMS Architekci Sp. z o.o. - Applied arts - Sinfonia Varsovia - Music

Painting Prof. Leon Tarasewicz, a professor at the Academy of Fine Arts (ASP) in Warsaw and one of the Polish painters known outside Poland the best. He said: “I feel very surprised at receiving this award. Painting has won and this is probably the great power of art.”

“Painting has won and this is probably the great power of art.”

Leon Tarasewicz

Leon Tarasewicz speaking

Krystyna Woźniak-Trzosek, Prof. Andrzej Rottermund, Prof. Ksawery Piwocki and Leon Tarasewicz

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culture CATEGORY

Pearls of the Polish Economy

Applied arts

Jerzy Szczepanik-Dzikowski of Biuro Projektowe JEMS Architekci, one of the first private architectural practices operating on the Warsaw market, said: “It is of course a great honour to be part of the eminent group of laureates of this award – both those who have received it in the past and this year. It is a very special award for us because business and culture go here hand in hand.

In this room, these two aspects of public life, which are often divided, have been excellently combined. We represent a profession which generally has a uniting function. This is our main skill. It is especially important for us and for our community that we have found ourselves in the group of people whom the award committee decided to place in the Culture category. The more so as we have lived in the “culture community” for years, but there are many who still do not perceive us in this way. This success is a success of the firm, a success of a team of a few dozen people and a success of our families.

I wish to thank the award committee for this choice.”

“ It is a very special award for us because business and culture go here hand in hand.”

Jerzy Szczepanik-Dzikowski

Krystyna Woźniak-Trzosek, Prof. Ksawery Piwocki, Leon Tarasewicz and Jerzy Szczepanik-Dzikowski

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culture CATEGORY

Pearls of the Polish Economy

music

Waldemar Dąbrowski, director of the Grand Theatre – National Opera, presented the Pearls statuette to the third lau-

reate in this category, Sinfonia Varsovia. He said: “What a wonderful evening we have in the Royal Castle today. (…) The Sinfonia Varsovia orchestra is an extraordinary institution. And at the top of this fabric is a phenomenal artistic level, which entitles the orchestra to appear in the world’s most magnificent concert halls and with the best conductors. I wish to once again heartily thank the orchestra for that.”

Janusz Marynowski, director of the Sinfonia Varsovia orchestra said: “In April 1984, as a student of a school of music, I listened to this orchestra with dreams in my head to have an opportunity to talk for a moment with the musicians. The dreams have come true because I have been Sinfonia Varsovia’s ‘insider’ since 1987. I played in the orchestra for 17 years as a double bass player. I also worked as an inspector – someone who stands between the directors and musicians. I was assistant to the late Franciszek Wybrańczyk. In 2004, I became director of the orchestra. I know this team well and the work gives me a lot of satisfaction. I have never worked elsewhere.

I am truly a very happy man.

My next dream is to continue ‘conveying music,’ in line with our motto ‘Music Is for Everyone.’ I invite you to Sinfonia Varsovia’s concerts and to our seat on Grochowska Street in Warsaw, a place visited by the most wonderful audiences. (…)

I would like to thank you once again for the honour I have been granted today and for your kind attention.”

“I am truly a very happy man.”

Janusz Marynowski

Waldemar Dąbrowski and Janusz Marynowski

Krystyna Woźniak-Trzosek, Waldemar Dąbrowski and Janusz Marynowski

Janusz Marynowski and Waldemar Dąbrowski

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Pearls of the Polish Economy

Special Pearl award Prof. Michał Kleiber, president of the Polish Academy of Sciences became the laureate of the Special Pearl award.

The Special Pearl was handed out following a laudation by Prof. Marek Krawczyk, Rector of Warsaw University of Medicine: “Ladies and Gentlemen, talking about Prof. Michał Kleiber is a special task. We have a lot of extraordinary individuals in Polish science, but Prof. Kleiber is a very special one and the Special Pearl goes in the most right hands. It is not only an individual who can be described in the various rankings which Prof. Shapiro spoke of and which are sometimes unpredictable. Michał Kleiber is also a distinguished scientist, renowned by major universities and institutions. The number of honorary doctorates granted to him is a proof of his prominence in Polish science. He also creates science in terms of organisation. He led the first institution to assess research grants - the State Committee for Scientific Research (KBN). He did it very well, and those who succeeded him could learn a lot. From the early years of scientific work, he was a member of PAN’s presidency, and he is leading that group of more than 360 scientists for the second term now. In recognition of his numerous achievements he was awarded the Pearl award. I have no doubts - the decision of Mrs. President and the Jury is the most right!”

Prof. Michał Kleiber said: “I am moved and feel uneasy at the same time. This is due to many reasons. One of them is that at these annual ceremonies I have usually congratulated the winners rather that received awards myself. But the second reason is different. When you receive a distinction in the presence of such an honourable group of people you have to ask yourself the question: What have I done to be honoured in this way? After all, there are so many people in Poland who promote our country, have great successes and certainly deserve this award. So why me? I will try to think about it aloud because I am thinking about a few things that unite everyone here and allow us to be optimistic about the future. When practicing my profession

“it is impossible to predict the future, we should invent the future by ourselves and then pursue it. We will achieve success if we have a common goal. Thank you.”

Prof.Michał Kleiber

Krystyna Woźniak-Trzosek, Prof. Marek Krawczyk, Janusz Piechociński and Prof. Michał Kleiber

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Pearls of the Polish Economy

Special Pearl award I always had two problems – two questions consumed my mind. The first one was: What do I and my colleagues do to have the right to aspire to someone helping us financially from public sources? The second question which worried me – it was my great care and, in a way, also my complex – was that my life took such a course that I lived abroad for many years, in nearby, more distant and very distant countries, met many people from different states and, staying with them in various circumstances, including social meetings, I started to envy them. My colleagues from Germany listened to compliments that the Mercedes was such a wonderful car and that their economy was so solid. I heard only compliments about the Japanese – electronics, culture, national discipline. All of my acquaintances had an opportunity to listen with satisfaction to this kind of remarks. And I waited for someone to say something about our country. It was a long time ago, before our political transition, and I could not wait. Of course, the names of Nicolaus Copernicus, Maria Skłodowska-Curie and our pope, now a saint, John Paul II were sometimes mentioned. It was some consolation. But, with all due respect for these great people, I still had the impression that as a country we were underestimated. I wondered whether we really did not deserve this, or did not know how to promote ourselves. I am more at peace today about both of these issues. As regards the first one, concerning the validity of funding scientific research, I have absolutely no doubt. Because of the character of this meeting – the Pearls of the Polish Economy Gala – I have to start by saying that today building a modern state and a modern economy has to be based on modern ideas. There is no other way. Here, cooperation between scientists and business is key to our success. I regret that we still cannot speak about it in a loud voice, that people who have achieved true successes based on innovation are still not invited to the programmes which are most watched and listened to, that they are not asked the question: ‘Everyone complains and you have achieved such a success. How have you done it?’ But science has a much broader scope, which – I am convinced – deserves public respect and public support. It is with the greatest satisfaction that I have received today the news that one of the Pearls went to Prof.

Samsonowicz, a Polish humanities scholar. Research is part of national culture, a part which is the most valuable because it directly brings our culture to global culture. (…) When presenting various awards I always say: ‘Do not look how big the statuette is, do not even look whether there is any attachment in an envelope. Look who gives you the award.’ I am saying so to express my thanks because ‘Polish Market’ has created its own community over the years. Recognition from this community is a great honour for everyone, and certainly for me. Let us remember one thing: it is impossible to predict the future, we should invent the future by ourselves and then pursue it. We will achieve success if we have a common goal. Thank you.”

After handing out the prize, the floor was taken by Janusz Piechociński, Deputy Prime Minister and Minister of the Economy: Krystyna Woźniak-Trzosek, Prof. Marek Krawczyk, “Mr Professor, on behalf of the Janusz Piechociński and Prof. Michał Kleiber world of politics, I would like to pay you a tribute... Not for your scientific work, not for heading the Polish Academy of Sciences (PAN), not for having introduced a large group of successors. But for your attitude, humanity, ability to live a public life, for setting yourself goals the best Polish intelligentsia have always do.”

The General Patron of the Gala KGHM Polska Miedź SA.

The strategic patrons

Laudation by Prof. Marek Krawczyk

Totalizator Sportowy Sp. z o.o., BSH Sprzęt Gospodarstwa Domowego and Provident.

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Pearls of the Polish Economy

the Polish Economy

Marek Kłoczko and Andrzej Piłat (KIG)

Deputy Minister Dorota Podedworna-Tarnowska

Krzysztof Król, President’s Office

Cardinal Henryk Gulbinowicz hands in a Papal signet to Krystyna Woźniak-Trzosek

Elżbieta Radziszewska, Deputy Speaker of the parliament

US Ambassador Stephen Mull

Archbishop Celestino Migliore and Cardinal Henryk Gulbinowicz

Prof. Marek Krawczyk

Gala

Deputy Prime Minister Janusz Piechociński and Krystyna Woźniak-Trzosek

Edward Trzosek and Janusz Piechociński

•

52 polish market

Krzysztof Kwiatkowski (NIK)

Pearls of the Polish Economy

Krzysztof Kwiatkowski, Krzysztof Król and Waldemar Dąbrowski

Tadeusz Donocik (RIG Katowice)

Deputy Minister Katarzyna Kacperczyk

Prof. Leszek Rafalski, Prof. Danuta Ciechańska, Prof. Jerzy Kątcki

Grażyna Jaskuła, Krystyna Woźniak-Trzosek, Archbishop Celestino Migliore

Krystyna Woźniak-Trzosek, Janusz Piechociński and Herbert Wirth (KGHM)

Dorota Podedworna-Tarnowska, Katarzyna Kacperczyk, Jacek Piechota

Presentation of Eco-Sol

Wojciech Szpil and Waldemar Dąbrowski

Witold and Monika Zaraska

Jerzy Koźmiński and Stephen Mull

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Pearls of the Polish Economy

Jerzy and Irena Koźmiński

Sinfonia Varsovia

Michał Wiśniewski

Andrzej Parafiniuk, Stephen Mull and Kazimierz Stańczyk

Artis Sonus choir under direction of Jacek Sykulski

Edward Trzosek with Alicja and Aleksandra Wolniewicz

Prof. Jerzy Bralczyk

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Kamil Czeszel

Marcin Petrykowski with an accompanying person

Agata Zakrzewska

Pearls of the Polish Economy

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Pearls of the Polish Economy

Krystyna Giersz, Prof. Tadeusz WinklerDrews, Daniela Winkler-Drews, Krystyna Woźniak-Trzosek Beata Sobocińska

Senator Józef Pinior, Waldemar Dąbrowski, Prof. Michał Kleiber, Teresa Sukniewicz-Kleiber

Krystyna Woźniak-Trzosek and Edward Trzosek

Anda Rottenberg and Prof. Karol Myśliwiec

Zbigniew Nowak and Robert Rostek

Jacek Drzewicki and Edward Trzosek

Editorial board of “Polish Market”

Guests at Arkady Kubickiego

From left: Iwona Drzewicka, Ewa and Przemysław Federowicz with family

Guests and the editorial board of „Polish Market”

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Katarzyna Niedużak and Błażej Grabowski

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Innovation

The 63rd World Exhibition of inventions, Research and New Technologies BRUSSELS

INNOVA 2014 T

he 63rd World Exhibition Brussels Innova 2014, which ended on November 15, was devoted to technology transfer and technological progress implementation. This year’s edition featured solutions from 14 countries: Belgium, Croatia, France, Iran, Moldova, Malaysia, Morocco, Malta, Poland, Russia, Romania, Taiwan, Thailand and Italy.

On the first day of the fair, members of the Polish delegation were invited by Artur Harazim, Ambassador of Poland to Belgium, and Krzysztof Turowski, Commercial Counsellor, for an official meeting at the Polish Embassy. Prominent

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personalities from the world of science were awarded the Belgian and European Crosses of Innovation Merit.

Polish exhibitors showcased 96 inventions. They had an opportunity to present their solutions to Anna Komorowska, Polish First Lady, and to Ambassador Harazim who visited Polish stands on the second day of the fair.

Polish exhibitors showcased 96 inventions This year’s exhibitors were research institutes, universities, innovative companies and secondary school and university

Innovation

students. The solutions they proposed spanned various fields: ecology, medicine, security, aerospace, automotive and transportation, metallurgy, textile, machinery and equipment, chemistry, mechanics, engineering, electronics, agriculture and food, energy and IT science.

There were also promotional stands of the Polish Embassy in Brussels, Polish Agency for Enterprise Development (PARP), Polska Wschodnia (Eastern Poland) and the Łódzkie Province.

Awards for Polish exhibitors The jury awards medals in 4 categories. Top rated solutions receive gold medals with honours and special prizes.

This year, for the seventh time in history, a Polish invention was awarded the first prize by the international jury. The Grand Prix went to Prof. Aleksander Sieroń from the Silesian Medical University’s Department of Internal Medicine, Angiology and Physical Medicine in Bytom, and to the Faser company, for Oxybaria S - a device for simultaneous hyperbaric oxygen therapy and ozone therapy, which is an innovative method for the treatment of leg ulcers and diabetic foot. Oxybaria S is a combination of bacteriostatic ozone and hyperbaric oxygen treatment improving local oxidation.

Poles were awarded:

• Grand Prix • 32 gold medals, with a special mention of the jury • 24 gold medals • 35 silver medals • 5 bronze medals Two of these medals were awarded in the category “Young Inventor”.

The World Intellectual Property Organization awarded the fair’s Best Invention Prize for a dietary supplement, which uses short peptides to prevent Alzheimer’s disease.

The invention has been developed by the Mazovia Peptide Cluster in cooperation with the Polish Academy of Sciences’ Institute for Clinical and Experimental Medicine, Polish Academy of Sciences’ Institute of Genetics and Animal Breeding, Homeostasis Institute Sp. z o.o. and Industrial Chemistry Research Institute.

The highest prize for young inventors was awarded to students of School No. 6 in Jastrzębie-Zdrój. They have developed ESKONzO II, a system for the disabled and their assistants, intended to improve life quality and increase the mobility and security of people with disabilities. It allows to operate a computer mouse using the mouth or tongue.

The invention is being tested with disabled people.

The Electrical Apparatus Department of the Łódź University of Technology, in collaboration with hyper-highspeed hybrid circuit-breakers for vehicles of urban traction vehicles and related applications. The solution is a world novelty, essential to increasing the safety of passengers and improving traction traffic fluidity.

The Brussels Eureka award went to the Industrial Chemistry Research Institute for a new polyethylene oxide with

high impact resistance, derived from renewables. The polymer is characterised by high durability and stiffness, excellent thermal properties and dimensional stability, good chemical resistance and barrier properties. It is used in sectors such as: automotive, electrical and electronic, technical materials and packaging.

Awards of the Polish Ministry of the Economy for 3 inventions A satellite pump unit, developed by the Mechanical Department of the Gdańsk University of Technology, is an invention currently in the course of commercial deployment. It allows pumping various liquids, such as water, oil-in-water emulsions, vegetable oils and mineral oils. The invention has a very wide range of applications, namely in hydraulics, mine rescuing and firefighting, in the food and petrochemical industries, as well as in any other field involving pumping liquids under low or high pressures.

Another award-winning solution is an innovative process for the production of high quality meats with an original combination of pork and ostrich. These products have special quality characteristics (such as an increased nutritional value, health-oriented, controlled allergenicity, reduced fat, salt and no polyphosphates). The technology has been developed by researchers from the Warsaw University of Life Sciences (SGGW), in collaboration with the Institute of Genetics and Animal Breeding.

The Ministry also granted the award Katarzyna Chrapko, a 14-year-old secondary school student from Nisko, who won this year’s Young Inventor competition, organised by the Haller Pro Inventio Foundation for the project “Research into the use of infrasound for diagnosis and noninvasive treatment of disease-affected human organs.” •

Honorary Patrons of the Polish Pavilion:

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Innovation

Experts

in industrial automation

solutions

“Globally, there are 61 independent Festo companies, including in all the countries of East-Central Europe. How do we fare compared to them? Let me quote here Dr. Ansgar Kriwet, Member of the Management Board, Sales at Festo, who, congratulating us on winning the Large Pearl of the Polish Economy award, wrote ’Festo Polska is a true pearl, not only on the Polish market, but also within Festo,’” Andrzej Soldaty, General Manager, Festo Sp. z o.o., tells Jerzy Bojanowicz.

Which events would you consider milestones as far as the business activities of Festo Polska Sp. z o.o. are concerned?

Such an event was undoubtedly the formal establishment of the Company – a subsidiary to the Festo Corporation – on 13 December 1989. However, Festo’s presence on the Polish market has been much longer, as it dates back to 1970, when the Technical Information Office came into being, to be later transformed into the Commercial Office.

A stimulus for Festo to anchor for good in Poland was the possibility to establish its presence here as a business with full legal personality, meeting global standards in line with the Corporation’s operational concept. In countries with an appropriate level of industrial development, Festo sets up companies similar to ours, capable of transferring its technologies over to local markets and actively implementing Festo solutions. As regards the demand for automation, the Polish market is gaining in attractiveness, with more and more means of production becoming automated. The number of machinery and device producers which are pm

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adopting the latest technological solutions is growing too. Therefore I am pleased to conclude that our Company does have a substantial impact on boosting the potential of automation in Polish industry.

During our 25-year history we have been at the forefront of industrial automation on the Polish market. The Company’s development has been very stable – year after year we record a two-digit growth in turnover, which is a hallmark that distinguishes us from similar businesses which tend to fluctuate from “boom to slump”. Our portfolio of projects is highly diverse, from simple pneumatic actuators to complex drive and control systems.

Over the 25 years we have completed many large-scale projects which, again, constitute a distinguishing mark when set against our day-to-day activities. These projects are especially visible in the Process Automation field, with examples such as the full automation of the Warta waste-water treatment plant treatment plant in Częstochowa three years ago, and the building of an automation system for the SUW Mosina water treatment

plant in Poznań. Some of our more spectacular achievements also include the automation of installation processes for the recovery of petrol vapour in several dozen petrochemical facilities.

Our major focus, however, is on the automation of industrial and production processes. We have delivered automation concepts and solutions for the assembly lines of Polish car manufacturers and have been very active in providing equipment to the manufacturing plants of basically every manufacturer of car parts and components. Our solutions are widely used in the packaging and food sectors. But not only there – you can hardly find a sector of industry where Festo is not present.

What is your take on Festo’s statement on their being the leader in innovative solutions in the field of industrial and process automation? Is there any more room for innovation in this segment?

We often make summaries of our activities in a given area. A classic example here is the door-closing systems for passenger-train pm

Innovation carriages. The solutions developed 20-25 years ago are little like those present. Originally, the modules were based on “pneumatic logic”, whereby the system closed and opened the doors with a kind of overload protection. Now, however, the modules employ dedicated PLC controller with communication units and are made to the strictest rail standards, including with regard to safety functions.

Another ambitious project in this respect was the 2-3-year-long modernisation of the closing and opening systems in all the “Russian generation” carriages of the Warsaw metro. It brought major improvements to passenger comfort and safety, because the doors were fitted with safety restrictions and protection from being opened during travel, in addition to enhanced durability of the opening/closing system as compared to the original.

These solutions, on which we worked together with their direct users, were granted certification by the Railway Institute and the Rail Vehicles Institute.

I should also mention the products for the food and packaging sectors. It is to my great satisfaction that Festo is contributing to the growth of Polish companies by entering into technical partnerships with them to optimise their solutions. An example is PET blowing machines – devices giving the final shape for bottles popular drinks. The original, very simple, not to say primitive, manual solutions emerged

in companies that ushered in the new economic conditions back in the early 1990s. At present, our Polish clients offer products that are well on a par with those from the largest bottle-producing corporations. Our input here consists in active participation in the development and deployment of automation concepts.

Taking into consideration the presence of Festo on the market of Polish producers of machines and appliances, it is possible to say that we are party to the innovative solutions applied in the machines, with a substantial contribution to the improvement of the competitiveness of our clients on global markets.

and are constantly being developed, with our numerous successful applications in Polish industry.

In which sectors?

It is difficult to find one in which our technology is not present. Valve terminals are used both in machines carrying out handling operations, such as production lines for cars, cheese or packages, and in continuous processes, for instance in water-treatment stations. They are a universal solution, but each time are carefully adjusted to the requirements of a given facility. pm

The main hall of the Festo Poland main office office in Janki near Warsaw houses the educational model of a production line (the so-called AFB factory) with a number of Festo products, including one Mitsubishi handling device with a gripper made by Festo.

Does the Company cooperate with other global corporations?

The Festo business model is based, on the one hand, on a system of cooperation with business through participation in creating solutions, and, on the other hand, on the transfer of knowledge referred to as Festo Didactic. This is a domain which provides current and future users with an opportunity to develop knowledge on automation. We organise courses on the issue, and we have at our disposal special labs for teaching automation, called stands. Their purpose is pm

What are the Company’s flagship products?

One of them is the valve terminal, which is a solution integrating electric and pneumatic valves with electronic control unit and electrical input-output modules, fully assembled and tested, ready for installation in a machine or production line. Due to their modularity and rich selection of types and sizes, valve terminals facilitate machine optimisation. They are used for controlling a selected part of the production line. The in-built controller can be connected to the central controlling system through a bus, but it can also function as a separate control unit which, for instance, in the case of failure, takes over control of the part.

Valve terminals are a global innovation introduced by Festo in the second half of the 1980s pm

Our solutions are widely used in the packaging and food sectors.

But not only there – you can hardly find a sector of industry where Festo is not

present.

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Innovation to provide extensive education for productionline users. This is why the stands include items made not only by Festo but also by other companies, such as the Mitsubishi robot that you’ve seen, Siemens controllers, etc.

Collaboration with other companies depends on the complexity of a given project. For instance, for the automation of a power unit, our Company provides the motor elements, and Siemens the drive parts. Together we create a team that works on the solution. Depending on the issue, various configurations with partners – corporations or Polish subcontractors – are established.

Festo provides education services, that is training and consulting, but also educational systems. Who are they for?

Our educational package is a possibility of knowledge transfer starting from… the kindergarten. During “Open days for kids” they have an opportunity to become familiar with various technological solutions. And the next day they refuse to go to the kindergarten and prefer to come back to us!

This is just an example, as this knowledge transfer is mainly directed at technological universities and schools. Once a week students from various technological higher education institutions come to us for all-day workshops, during which, in the laboratories of the Application Centre, they have an opportunity to become familiar with our technologies and machines.

This is one of the distinguishing marks of Festo among other advanced-technology suppliers.

The Warsaw University of Technology has included the use of our laboratories in their curriculum. We also have entered into an official agreement with the Silesian University of Technology, and individual agreements have been made with lecturers who come with their students and implement a visit programme developed by us.

One of the most interesting applications of our laboratories is their use for purposes unrelated to mechatronics. As experts in operation control, we have oriented our services to serve students majoring in industrial control engineering, mechanical and electrical engineering, etc. One of the examples of the transfer of knowledge to domains which are not readily associated with technology are the visits by architecture students. We have prepared a pilot programme for them, in cooperation with the Faculty of Architecture of the Warsaw University of Technology, which has launched courses on the parameterisation of objects. Parameterisation is the development of space in such a way as to meet specific criteria, for instance, a concert hall, which must have superb acoustic properties. In order to achieve this, the walls must be arranged in an appropriate way, which pm

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involves using integrated elements which make up an optimum arrangement that needs suitable coordination. The students will have a chance to get to know this mechanism in order to be able to perform the parameterisation.

The transfer of knowledge to clients is also of vital importance. We regularly organise training sessions, presentations, and open days, during which participants learn about new solutions by getting to the core of the matter, as in order to achieve the efficiency of cutting-edge technologies it is necessary to get to know the fundamentals, to allow their optimum application in constructed or used machines and appliances. During practical classes the participants become familiarised with the mechanisms used, the rules for recognising defects, etc.

I don’t think General Managers participate in such meetings.

The training sessions are attended by operation-control officers, designers and engineering teams.

Meetings with General Managers and top managements are organised on different occasions. Among the events organised for them is the Business Revue, during which we discuss, among other issues, developement of partner collaboration focuses on increase of customer productivity. pm

And where did the idea to organise a competition for students come from?

The first competition was announced in 2010.

Its purpose was to create a simple and comprehensible project, with the use of Festo products, consisting of a work station for a selected process with an application in industry, or presenting the possible uses of Festo products from a chosen group.

How did we come up with the idea? Most of the students participating in our workshops show great interest in the matter. Inspired by the demonstrated solutions, they asked us for a follow-up. This is why, through cooperation with the scientific associations at the university we suggested that they work on the proposed topics, which poses a certain challenge.

Recently students of the Faculty of Mechatronics of the Warsaw University of Technology have proposed the so-called green valve, which can control utility flow without an external power supply, equipped with its own power feed processing solar energy into compressed-air energy. We have approved the idea and the valve is currently being constructed.

We are trying to utilise the creative potential of the students, who are people full of passion. The solutions suggested by them are so appealing that 4 years ago we launched a rather risky but successful experiment. Each year Festo participates in the Automaticon Fair in pm

Warsaw, and in 2010 we allowed our students to present their projects with the use of our solutions. Our booth enjoyed great interest among the fair visitors, and one of the products presented was awarded the Golden Medal of the Automaticon Fair.

The competitions are a gate way to a higher level – students with the highest achievements can participate in internships – half of them work in our Application Centre, and the other half in laboratories in Germany. I would also like to mention that some of the winners are still cooperating with us, and those who have joined other companies effectively implement the technology with various solutions.

What does the Bionic Learning Network programme consist of?

This is an initiative started by Festo, associated with further optimisation of industrial solutions through observing solutions present in nature and transferring them to technology. The project is being carried out by our main office in cooperation with many scientific centres and private foundations round the world.

One of the completed projects is the Bionic Handling Assistant, also called the elephant’s trunk, because the robot is modelled on this shape instead of the typical shape known from pictures. The robot is very user-friendly and has been awarded the German Future Award.

Another solution worth mentioning is Smartbird – a mechanical seagull that uses wings to move and consumes a very low amount of energy during flight. There is also the BionicKangaroo, showcased during Hannover Messe. Apart from the ability to move and accumulate energy, the artificial kangaroo, an interactive bionic robot, reacts to commands shown by the gestures of the trainer.

Of course these impressive examples are harbingers of solutions which are enjoying the interest of viewers. For instance during Hannover Messe Chancellor Angela Merkel brought her guests to the Festo booth. But attracting interest is not a goal in itself. We are not focussing all our efforts on producing artificial elephants, birds or kangaroos, but our aim is to transfer these solutions to industrial practice.

The kangaroo shows that it is possible to control a machine without its being separated from the operator. The machine will sense the operator’s intentions, which will prevent collisions, considerably improve security, etc… pm

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… which is in line with the laws created by Isaac Asimov stating that a robot may not injure a human being, or, through inaction, allow a human being to come to harm, and that a robot must obey the orders given to it by human beings …

Innovation

We are particulary proud that not only technology but also our organisational culture and values create our competetive advantages. … of course, but this is the future, although its origins are in the past.

The Company was established in 1925 in Esslingen am Neckar (the Stuttgart region) by Gottlieb Stoll and Albert Fezer. It produced machines for… wood processing. Stoll’s sons, having completed studies in the US and Austria, decided to automate these machines by means of pneumatics, which then was not applied in industry. In this way Festo has become the world pioneer in automation based on pneumatics.

Later automation, which began to be used in industry in the middle of 1950s, was supplemented with the application of electronics, the handling system and bionics. To put it briefly, Festo implements the vision of its owners whose passion turned a small mechanical workshop into a global corporation employing over 16,000 people worldwide.

Which products of the Company are made in Poland?

We are one of a few centres in the world with the status of Solution Engineering Centre for specific products that we work on and produce. Within agreements between Festo and pm

the largest corporations in the world, we supply dedicated solutions designed and assembled in the SEC Poland to the most demanding customers.

Our production focuses mainly on handling systems,that is handling devices, control cabinets for pneumatic units and functional modules, like for example for opening and closing doors in passenger carriages, all tailored to the specific needs of the client. The solutions created for the Polish market are usually unique, made for a specific client, which makes it necessary for us to customise our products. Of course we use certain subassemblies and modules, but it is impossible to take a ready-made product from a warehouse shelf. This is why our engineering section is highly developed. We are glad that Polish machinery producers are increasingly ordering our subassemblies for their massproduced machines and appliances, which enables us to increase productivity and manage the whole process of the design, logistics and prefabrication of modules.

Festo employs 110 people, excluding those hired by partner companies which participate in specific projects managed by Festo.

I must admit that it is very rewarding for me to observe that university graduates who are enthusiasts of this field of technology coming to work for us quickly find their place in the Company. Many new employees pay attention to the atmosphere, organisational culture and involvement of our employees. We are particulary proud that not only technology but also our organisational culture and values create our competetive advantages.

What are the plans for the future?

Based on our skills in education, together with the Katowice Special Economic Zone, we are going to create a Competence Centre for employees hired by new investors in the zone. We will prepare and conduct courses during which we will demonstrate how to effectively implement new technologies.

We put our motto “We are the engineers of productivity” into practice in particular actions involving Polish customers, contributing to their improved performance and competitiveness, not only on a local scale, but also • on global markets. pm

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Innovation

People matter

most

Hanna Krajewska, President and CEO of Municipal Water Supply and Sewerage Company in Warsaw JSC (“MPWiK”), talks to “Polish Market”.

How has MPWiK changed in the last 25 years compared with the time of the communist regime?

The year 1989 opened completely new prospects both in the social field and in business. We all felt like we were witnessing the advent of a new era, as those changes gave hope for a better future. And so we did in our company, which could, too, start over with sound principles and on its own account. On 1 January 2003, MPWiK was transformed from a municipal utility into a joint stock company whose sole shareholder is the City of Warsaw. From that moment on, we have been operating based on the free market rules and commercial law. 1989 was certainly a turning point. Yet the actual breakthrough of the last decades was Poland’s accession to the European Union in 2004. We did finally become a full-fledged member of the European community. And so we began to dream of grasping the historic opportunity to build the welfare of our country. In MPWiK, too, we embarked on a large modernisation programme of the company, which currently employs 2,240 people. pm

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What was it aimed at?

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We decided to modernise the organisation in three basic aspects: technological, economic, and the one that involves optimisation of the human potential because in a business like ours, it is people that matter most. They are an attribute of the company, accompanying it from the beginning of its existence, that is for almost 130 years. We launched a number of infrastructure investment projects worth several billion zlotys.

We hope to be able to use more resources in the new EU financial perspective. We are currently running the largest environmental programme in our part of Europe, which is co-funded by the EU (60%) and ourselves.

Could you tell us more about this programme?

Thanks to it, we have now access to ultramodern water and wastewater treatment technologies. As a result, we can today successfully compete with the best industry players in the world. Also, we have considerably improved the level of process automation. This has compelled us to adopt a different employment philosophy. We are no longer interested in average-skilled workers.

So what are the professional profiles sought

by MPWiK? We are mainly looking for industrial and automation IT professionals. Last year, in an effort to be more efficient, we introduced the system of management by objectives (MBO), which allows to motivate the team to be effective, as well as evaluate employees on task performance. Compared with to the one we know from the film made in the communist times with the plot set in our company and featuring people working rather sluggishly. Today all the devices are fully automated. The system is remotely controlled by one worker, using computers and optical fibres. As you can see we are in an utterly new era. pm

pm

Which of the investment projects now underway or soon to be implemented, co-financed by EU, do you consider as most important? Where does MPWiK source funds for these projects?

We are carrying out a large project called “Water supply and wastewater treatment in Warsaw”. Its three phases have already been completed, and the fourth one is underway. The purpose of this project is to ensure efficient water pm

Innovation

and wastewater management in Warsaw. The fourth phase involves technological development of our last plant. Like the others, it will work within a similar water treatment system.

Once the fourth phase is completed, the whole system will be technologically homogeneous.

What plants does MPWiK consist of?

The Central Plant consists of two parts: Filter Station in Ochota and Water Treatment Station in Praga. The best-known one, in Ochota, is now fully upgraded. The plant in Praga is undergoing modernisation, which is scheduled to be finalised by the end of next year. As a result, it will reach the technological level of “Filters”.

The Northern Waterworks Plant also uses modern, yet slightly different, solutions. In this plant, water is filtered from the Zegrze Lake. pm

We hope to be able to use more resources in the new EU financial perspective.

What are other important investment projects of MPWiK? Although the “Czajka” Sewage Treatment Plant was, officially speaking, only modernised, we practically built it from scratch. As a matter of fact, not much remained of the previously existing plant. Its technological facilities are brand new. The cost incurred amounted to approx. PLN 2 billion and was covered (at approx.

62.5%) from EU funds and our own resources. The modernisation of the second sewage treatment plant (“South”) remains to be done yet. When completed, both sewage treatment plants in Warsaw will meet the 21st century’s standards. In addition, we have purchased ultra-modern operational equipment. We are also building a 3-kilometer stretch of sewer (collector Burakowski-Bis) for left bank of Warsaw worth over PLN 190 million. These projects are mostly financed from EU funds. However, almost 40% of the expenditure comes from our own sources, which are current profits, credits, loans and corporate bonds.

Is there a chance for such a project to be financed from EU funds in the new financial perspective?

Absolutely, and it does inspire us. It will be a tremendous task, very important for Warsaw. Not everyone realises it. Usually, people only raise the issue after sudden thaws or heavy rains. These appear more and more frequently. It ceased to be something extraordinary, it happens in almost every season. Meanwhile, no one in the world builds sewage pipes allowing the free flow of water from heavy rains. If we were to carry out such a project, we would have to significantly raise the prices for our services. This is unrealistic. Such facilities are adapted by producers to average conditions, not to extremes. Hence the idea to build reservoirs for Warsaw. It will be the task spread out over years: a design, a series of expert opinions etc. pm

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What is the major task to be taken up by MPWiK in the coming years?

We are working on a concept of the fifth phase of the modernisation of water supply and wastewater treatment systems in the capital. We need to develop a system that will allow automatic management of wastewater to be treated during periods of heavy rainfall or snow melt. For this, however, retention facilities are necessary, and Warsaw unfortunately does not have them. pm

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How should a sewage retention programme be carried out in the capital?

Is there any other important task to be tackled by MPWiK in the coming years?

It is impossible to identify one specific investment project. We are striving to continually improve the quality of water supplied to consumers and ensure a sustainable wastewater management. The first aim has already been achieved. When it comes to wastewater treatment, the modernisation of “Czajka” solved the problem of discharging untreated sewage into the river. Every resident will recognise that the Vistula has become clean and urban water is of good quality and safe to drink straight from the tap. That said, our supply network requires further modernisation because tap water will not be good if in-house and urban plumbing is not maintained. Therefore, we are upgrading the existing network. At the same time, we are looking for ways not to have to dig out half of the city and to cause the inhabitants as little trouble as possible when replacing the old network.

We also intend to significantly improve the energy efficiency parameters. Many of our old systems run on relatively energy-intensive technologies. We are in the process of conducting an energy audit across the company. We will therefore make significant changes in technological areas that consume the most energy. We are one of the largest energy consumers in Warsaw, so we have a lot to do in this respect. The results of the audit will be available by the end of the year.

Reducing energy intensity will not be as spectacular as the modernisation of “Czajka”, but we will certainly keep doing it, because it is simply necessary. I think we will engineer a separate programme falling within the framework • of the low-carbon economy. pm

It is a very important programme. It will require the creation of reservoirs allowing to store wastewater whenever in excess, and to use maximum plant’s capacity without discharging that excess water to the Vistula. And in the time of stable weather, plants could operate on a optimum capacity basis. Therefore, it is not only about creating an electronic management system. There must be physically existing reservoirs. It is probably not time to talk of locations, but it is clear that these reservoirs should be dug in several different spots in Warsaw.

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Innovation

We are doing a good job A ten-year history of Koleje Mazowieckie (Mazovia Railways) could serve as a guide to what it takes to create a thriving local rail carrier. Mazowieckie province meet the transport needs of its residents is today an example of how to responsibly and effectively meet the communication needs of residents. 10 years is a short time, but long enough to make a modern railway dream come true.

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Innovation

W

hen Mazowieckie Province authorities decided to create the first local rail carrier in 2004, many people did not believe that such a bold initiative was feasible.

Today, 10 years later, Koleje Mazowieckie remains a national phenomenon and an example to follow by other regions. The beginnings were certainly not easy; Koleje Mazowieckie had 184 long-serving leased electric trainsets EN57 and 3 combustion railbuses VT627 and 628. The regional government held then a 51% stake in the company and the rest belonged to PKP Przewozy Regionalne. This changed in 2008 when Mazowieckie province authorities bought out the remaining 49% stake, becoming the sole owner of Koleje Mazowieckie, able to decide the fate of the carrier. Today, the company’s train fleet consists of 282 units of which 81 are new vehicles. The older rolling stock was thoroughly upgraded. Thanks to reasonable fleet management and effective use of EU funds, Koleje Mazowieckie is now the most modern regional rail carrier in Poland and second in terms of the number of passengers.

In the company’s 10-year history, there have been many development milestones that earned it a leadership position.

What has distinguished Koleje Mazowieckie from the very beginning is certainly its visual identification. Green-yellow-white trains with a distinctive sun-shaped logo make it impossible to confuse Koleje Mazowieckie with other carriers. And, what is important, there are more and more “suns” running on the tracks, which is thanks to the company’s purchasing policy. The entire fleet has been modernised over the last 10 years. 81 modern units were purchased to operate both double-deck coaches with Poland’s unique Bombardier-built push-pull locomotives that serve the most heavily-travelled routes, and railbuses that are best fit for non-electrified less busy, yet needed, routes.

Demand for rail transport in Mazovia is increasing, as evidenced in annual passenger number statistics. In its first

year, Koleje Mazowieckie handled approx. 40 million passengers, in 2013 the figure was more than 20 million higher, and looking at the first half of this year another success is to be foreseen. But what matters here is not only to have a large fleet, although it is obviously necessary in order to meet the needs of customers; it is also important to provide different groups of passengers with tailor-made services. Such was the idea behind the decision to start building a network of car parks “Park and Ride” in the province. It is a project dedicated to those passengers who want to commute using partly their own means of transport, and then continuing the journey by train. To date, there are 8 such car parks, and ultimately there will be 40. Another step taken to cater for to the needs of passengers was an agreement signed with Warsaw’s Public Transport Authority (ZTM), resulting in a joint ZTM-KM-WKD ticket that allows its holder to come aboard all three carriers with one single ticket. Public transport in the province has become integrated, modern and close to European standards.

10 years ago, even those who have made the greatest effort to put into effect the project called “Koleje Mazowieckie,” namely representatives of the regional government with its marshal Adam Struzik, probably did not think that the • reality would surpass all expectations. Well, it did.

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Innovation

new

The driving force in the preparation of

technologies

T

he Institute of Biopolymers and Chemical Fibres (IBWCh) in the central Polish city of Łódź is an R&D centre with a more than 60 years tradition.

In 2007, the Institute of Biopolymers and Chemical Fibers was merged with the Institute of Pulp and Paper. The history of both these units goes back to the late 1940s when they started as small labs within the structure of factories. Up to now, the Institute remains a leading Polish hub in applied sciences and development for the national economy in sectors like chemistry, biotechnology, textiles, pulp and paper, food, medicine and agriculture.

Works at the Institute are aimed at investigation: (1) for the chemical industry in the field of polymer synthesis, (2) for the producers of medical devices in the domain of functional dressings, absorbable implants and sealing of blood vessels, (3) for agriculture in the range of environmentfriendly plant protection agents and biodegradable agrotextiles, (4) for the producers of technical textiles in the sector of special and composite fibers and nonwovens, (5) for the needs of resins processing and (6) for the protection of the environment.

The Institute’s R&D projects include: • biopolymers - modification, processing and use • biomaterials for application in medicine, veterinary medicine, hygiene and agriculture • synthetic polymers and products made of them • biodegradable polymers - synthesis, modification and processing to fibres, nonwoven and composite materials • bioprocesses in synthesis and modification of polymers, fibers and textiles • nanotechnology in the forming and modification of textiles • new techniques and technologies for the pulp and paper industry • environment protection technologies for the pulp and paper industry

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Year by year, the Institute consolidates its position in the European Research Area by participating in numerous international research and implementation projects. The Institute is a founding member of the Paris-based European Polysaccharide Network of Excellence (EPNOE). In the national research area, the Institute plays a major role in strategic research projects within the Operational Programme Innovative Economy whose prime goal is to submit technologies to the Polish manufacturing sector.

The present position of the Institute brings about the chance of enhancing its image as an innovative centre where interdisciplinary investigations make the driving force in the preparation of new technologies.

The implementation of results of the R&D work to practice is among the main objectives of the Institute.

Here, two activities may be distinguished: the use at home and abroad of technologies prepared as a result of the Institute’s own R&D activity, and industrial implementation of processes that are an outcome of task projects.

For many years, the Institute has been striving to conduct research tasks important for economic and social purposes, and participates in a number of international activities. The Institute’s strategy in science and research is focused on: 1. A wide range of R&D projects in modern and advanced research domains referred to as BIO-NANO-TECH 2. Developing of a modern R&D infrastructure 3. Boosting cooperation with industry 4. Implement important national economic and social tasks 5. Strengthening its position in the international research area 6. Conducting activities supplementary to R&D like education, schooling, editorial, standardization and forming of associations 7. Marketing and market research for the commercialization of R&D results

Innovation

With modern research and measurement equipment in possession, the Institute renders scientific, analytical, advisory, schooling and lay-out services, and is active as an editor of scientific -technical information. Five accredited laboratories are functioning within the Institute’s structure offering services in (1) metrology and microbiology of textiles and medical devices, (2) biodegradability of textiles, polymers and biomass in aqueous, compost and soil medium, (3) metrology and analyses in environment protection, particularly monitoring of emissions. Laboratory of Paper Quality offers testing of raw materials, intermediate materials and paper products. Department of Certification issues certificates: ”Q” for quality, ”B” to witness conformity with standards and “UN” for packaging of hazardous materials.

The Team of Biomaterials, Team of Polymers and Fibers, and Physical-Chemical Laboratory conduct investigations in accordance with GLP (Good Laboratory Practice).

Investigations in the fields of physics, chemistry, biochemistry of polymers and enzymes are made in conformity with Directive 2004/10/EC of the European Parliament and European Council.

Many national and ministerial awards and distinctions bestowed upon the Institute as well as numerous medals received in international and national exhibitions of inventions and advanced technologies are a measure of the Institute’s high level R&D activity. In 2012, during the 11th. Edition of the Leader of Innovation Contest, the Institute of Biopolymers and Chemical Fibres received an award for its entire innovation activity and for inventions presented at national and foreign exhibitions.

The Interregional Science-Industry Centre (BIO)Polymers-Materials-Technologies Polintegra has been established to strengthen the cooperation between science and industry in the development and commercialization of modern technologies in polymers and biopolymers. The guiding spirit of the Centre is the managing Director of the Institute of Biopolymers and Chemical Fibers, Assoc. Prof.

Danuta Ciechańska who has acquired the role of coordinator of the new organization. The Centre was initiated by three Institutes: Institute of Biopolymers and Chemical Fibers, the Industrial Chemistry Research Institute in Warsaw, Warsaw and Institute of Heavy Organic Synthesis “Blachownia” in Kędzierzyn-Koźle.

It is worth to mention that Danuta Ciechańska has received this year “Polish Market’s” Progress - Pearls of Innovation award in the Inventor / Scientific Personality category at the official Pearls of the Polish Economy Gala.

The Gala took place on 7 November 2014 in the Ball Room of the Royal Castle in Warsaw gathering eminent personalities from politics, business, science, culture and mass media.

Polintegra the first platform of cooperation in Poland between companies from the sectors of polymers and biopolymers with R&D organizations support innovation.

The Centre’s goal is to organize cooperation between science and business to the benefit of developing modern polymeric technologies.

The Centre is an association of industrial partners, research institutes, institutes of the Polish Academy of Sciences and universities. In their collective tasks, the

Centre members cooperate on the basis of a maximal utilization of their own competence, expertise and infrastructure in science domains related to technology, chemistry, biology, agriculture and medicine. The Centre’s strategy is directed toward the creation of an inter-sector cooperation taking into account the principles of a consistent development, smart specialization, dynamic development and effective commercialization. At the start on October 27, the Centre embraced 33 research and 29 industrial units. The results of research made within the Centre have a good chance of implementation to practice in the chemical, biotechnological, textile, pulp and paper food, and electronic industry as well as in medicine, agriculture, civil engineering, the power sector and logistics.

The European Union offers support in that area seen as an innovative sector that contributes to the Union’s competitiveness. The development of the cooperation in the sector of resins will be a supported in the European Union financial period 2014-2020. The Centre was inaugurated on October 27 in the office of PwC, which is a leading business advisor to the newly created Centre. During the inauguration ceremony, Assoc. Prof. Danuta Ciechańska, Director of the Institute said: “By creating the Centre we refer to the best European practice in the R&D cooperation between science and business” and added that “Polymers and biopolymers are key raw materials in the processing of resins, in the chemical, pulp and paper and textile industries as well as in agriculture, electronics and other sectors. Poland possesses an immense potential that may support economy in the development of modern polymer technologies. The Polintegra Centre has the task of organizing cooperation in the sector, and in particular, giving support to the commercialization of modern polymer and biopolymer technologies”.

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Innovation

Modecom

the top quality

Waldemar Giersz, President of Modecom, talks to Marcin Haber.

Market research shows that desktop computers are being squeezed out of the market by mobile devices, including tablets and smartphones. Do you expect that, as a result of this trend, desktop computers are set to be used exclusively as office equipment?

Indeed, analyses of the situation on the IT market, especially in 2013, have indicated a drop in demand for desktop computers.

In their periodical reports, analysts tended to find correlation between the decrease in the popularity of desktop computers and pm

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a directly proportional increase in demand for mobile devices.

In the discussed period, interest in desktop computers was indeed lower than a few years before. But in my view, the relationship between demand for these two different types of devices is not as strong as the analysts believe. Smartphones and tablets have recently gained so much popularity mainly because of their mobility. Therefore, they are not in direct competition with desktop computers. In contrast, smartphones and tablets compete very strongly with portable computers, like laptops

and netbooks. If the two product categories are compared in terms of several key features, such as adaptation capabilities in various work environments, battery life and value for money, mobile devices come out better.

As regards the squeezing of desktop computers out of the market, I would like to say that this year we have witnessed again a rise in demand for such products as computer casings, power supply units and computer accessories. This undoubtedly signals that this market segment – which for several years saw sales levels unchanged - has started to grow

Innovation again. One of the reasons is that support for the Windows XP system has ended, which encouraged users of desktop computers with this operating system to replace their hardware. One should also mention the constantly growing market for game equipment - excluding consoles - where desktop computers reign supreme.

It seems there is no end to the potential of the market for mobile devices and personal computers to develop. Do you see any factor which could slow this development?

I agree that it is difficult to notice any factor which would mean an end to the development of this market. One can hardly overestimate the advantages of this technology, whose main strength is definitely global access to the Internet. Today, smartphones are used to run a business, conduct large-scale stock market transactions, manage bank accounts and control household equipment. By means of a mobile device and cameras you can see almost every place in the world, and for example check on your children, at any moment and from any place. The capabilities are endless and the applications depend only on the imagination of programmers and IT specialists.

This is of course coupled with technological development, especially the development of microprocessors, which enables me to look into the future of mobile technology with even greater optimism. We already have ultrafast and highly efficient tablets, which are an excellent alternative to portable computers. In its product line, Modecom has top quality tablets, which are adjusted to meet the needs of every client. As a result, the range of our multimedia tablets includes any kind of devices.

Each of them has been designed for a specific group of users. Simply, we give the client an opportunity to define their expectations in the most precise manner before they make the final choice. For example, if a client needs a handy mobile device with unlimited access to fast mobile Internet we offer 7-8” devices with a built-in ultrafast 3G modem and the data transfer rate of up to 21 mbs.

We also have to do with a steady development of personal computers, though slower than is the case with mobile devices. The evolution of the PC product group largely depends on the development of software, especially games. The games which are released at present do not have such exorbitant hardware requirements as several years ago. You no longer need to replace your computer every season to be able to play a new version of your favourite game. In my view, this is the only factor behind the slowdown in the development of personal computers. However, the development of mobile devices is governed pm

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by different rules. In this segment, in contrast to desktop computers, it is the hardware technology used that drives the development of software.

Modecom actively supports sports. You have signed, for example, an agreement on cooperation with Poland’s national football team. Do you think this is the direction in which contemporary business should go?

Today’s professional sport does not exist without cooperation with business. I am not saying whether it is good or bad, I am just stating the fact. These days, if a large sporting event is organized it is often more about the media and business than about sport sport stays in the background. At Modecom, we have undertaken such cooperation, but we always try to remember that sport is the most important. People come to stadiums pm

Simply, we give the client an opportunity to define their expectations in the most precise manner before they make the final choice. for the sake of sport, they do not come there to see advertisements. This year, Modecom has signed partnership agreements with the national team and the Legia Warszawa club, which now holds the Polish championship title. These two steps, very important in the company’s history, have resulted from our marketing strategy, which is to actively support sports based, just like our business, on the rules of fair play, team play, determination

in pursuing a goal and mutual respect. These rules, which apply to team sports in particular, are consistent with Modecom’s philosophy.

The code and hierarchy of the values which the company has used in its business model since its inception are based on the pillars of this philosophy. I strongly believe that in the near future we will see a further tightening of the relationship between these two spheres.

And the strategy that we carry out at Modecom will be a lodestar for other businesses.

Which of your products enjoy the biggest interest from clients at present?

At present, our Modecom FreeTab series of multimedia tablets attracts the biggest interest from our clients. The series is made up of over 30 models. Knowing well the special features of this market and the clients’ diverse requirements, we decided to expand this product group. Time has shown that the decision was right. Thanks to this decision, tablets with our logo again rank among the most popular mobile devices in Poland. It is worth noting that we have been developing recently a series of tablets based on the Intel platform and controlled by the Windows system. We are one of the first companies to have launched on the market a wide range of tablets based on the Intel platform and tablets with the Windows system complete with the full Office package at the lowest price on the market. Our tablets with the Intel® Atom™ processor are a product of our close cooperation with Intel. An important thing is that all components of these highly efficient computing devices have been optimized so as to use 100% of their capabilities. Interest in tablet accessories and smartphones has been growing in proportion to the rise in the popularity of tablets. Smartphones, just as tablets, offer their users - apart from the ability to install two SIM cards - extremely powerful HD graphics, the ability to take pictures in high resolution, long battery life and the fast processing of simultaneously started processes. The decision to add smartphones to our product line was a result of our consistently pursued strategy for the development of the mobile devices segment. The moment when we launched the devices on the market was also important. We decided to take this step at the time when technological progress enabled us to offer the latest solutions at affordable prices. In the near future, we plan to add to our line further smartphones. Our analyses show that they will enjoy as much interest from clients as the two models we now offer: Modecom Xino Z46 X4+ and Modecom • Xino Z25 X2. pm

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Innovation

LEKAM

one of the fastest growing pharmaceutical companies in Poland

LEKAM L

EKAM Pharmaceutical Company Ltd. is expanding both on the Polish pharmaceutical market and on international markets. LEKAM combines a homogeneous product portfolio, efficient leadership and highly skilled employees, that has allowed the company to quickly gain recognition in the pharmaceutical industry.

Presently LEKAM is one of the fastest growing pharmaceutical companies in Poland. A rapid rate of growth in terms of sales and revenues, combined with the top quality of products offered, has turned LEKAM into a phenomenon on the market. After 13 years of existence we became one of the top 10 companies on the Polish pharmaceutical market (based on IMS Data). LEKAM’s products have been honored with prestigious awards granted by both consumers and the medical community.

Our product portfolio is made up of a carefully selected Over The Counter (OTC) and Prescription Medicines (Rx) as well as Food Supplements (FS), Medical Devices (MD) and Cosmetics (COS). Our products have been on the Polish market from 2000 and have been exported since 2007.

LEKAM has currently a very strong position in many therapeutic fields and sees a rapid growth of production and sales. We have introduced onto the market and have been developing further the following therapeutic areas: • • • • • • •

Psychiatry Cardiology Pulmonology and Respiratory Medicine Urology Gastroenterology Allergology Surgery

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• • • •

Vascular Surgery Oncology/Hematology CNS / Neurology Endocrinology/Metabolism

The essential feature of LEKAM’s products is their high world-class quality. All of the products meet strict quality requirements set by the European Union. Our production methods hold a GMP certificate (Good Manufacturing Practice), whereas the ingredients for our clinical trials all abide by GLP (Good Laboratory Practice) guidelines and Quality Management Systems ISO 9001:2008 and some products meet all the legal requirements for the CE marking. What is more, the dossier of our all medicinal products has been prepared in CTD format (Common Technical Documentation). All of the above has only one goal – to meet the constantly rising demand for LEKAM products. What is more important, each increase in our production capacity goes hand in hand with the introduction of the most upto-date technologies.

LEKAM’s production facilities are located in Zakroczym, near Warsaw, the capital of Poland. The production plant together with the commercial office located in Warsaw make up LEKAM. The plant contains the production lines and laboratories to which the company owes its world-class generic medication. All our medicinal products have been developed by our in-house R&D department.

Our success is people – their knowledge, experience, talent, creativity and commitment to the company. All of our promotional and informational activities are conducted by a team highly qualified specialists. Presently, LEK-AM employs around 500 people.

The company’s employees have always abided by a number of values among which honesty,

credibility, trust, quality and ethical behavior are at the forefront. In the near future we are planning to combine our R&D activities with in-licensing opportunities. This will allow us to deliver many world-class medicines in a short period of time. In-licensing opportunities will enable us to present patients and the medical community, with a wide selection of new products while still developing them in our own dossier. All of LEKAM’s efforts have only one aim – to supply our clients with the best possible products. We are aware that LEKAM would not have been one of the leaders of the Polish pharmaceutical market if it had not been for the top quality medicines offered at very affordable prices.

Dynamic development on the Polish pharmaceutical market and a significant increase in the range of products offered, sparked our interest in foreign markets. LEKAM is actively developing the markets in the Middle East, Europe, Asia, Africa, the Americas and Australia. We have Representative Offices and cooperate with many business partners around the world. The Department of International Markets would like to double our turnover • in next years.

For more information please contact: Leszek Rymsza Director of International Markets email: leszekrymsza@lekam.pl tel. +48 22 635 80 41 ext. 506 mobile: +48 503 059 414 www.lekam.pl

M

Innovation

20 Energy Conference th

EuroPOWER

On 19-20 November 2014, Warsaw’s Westin hotel hosted the 20th Energy Conference EuroPOWER. The event was opened by Janusz Piechociński, Deputy Prime Minister and Minister of the Economy. The conference brought together representatives of energy and fuel companies, power plants, grid operators, public administration and businesses providing services for the energy industry.

“

The Polish Energy Policy until 2050 is almost ready. However, it will be subject to amendments, so as to reflect changes in markets, raw materials, processes and technologies. Energy is inextricably linked with industry and impacts its competitiveness. Energy solutions represent today’s fundamental economic challenges, the priority being to be able to produce energy based on domestic resources at affordable prices. That is why we are translating these conclusions into concrete actions, investment processes clear for the market, which will involve experts, entrepreneurs and administration,” said Janusz Piechociński in his inauguration address.

In the first thematic block key assumptions of the sector’s road map - “Polish Energy Policy 2050” were discussed. The introductory

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presentation was made by Janusz Michalski from the Ministry of the Economy. The panel discussion summarising the paper’s key points was attended by: Marcin Moskalewicz, Chairman of the Board of PERN Przyjaźń SA, Zbigniew Stopa, Chairman of the Board of LW Bogdanka SA, Paweł Orlof, Member of the Board for Corporate Affairs of Enea SA, Małgorzata Skucha, President of the National Fund for Environmental Protection and Water Management.

The second panel discussed the construction of the European Energy Market. Chaired

by Piotr Piela (EY), it featured the following speakers: Rafał Czyżewski, Chairman of the Board of Energa-Operator, Halina BownikTrymucha, Director for Market Development and Consumer Affairs, Energy Regulatory

Office (URE) and Piotr Rak, Member of the Board of PSE. The consequences of the liberalisation of the gas market were addressed by Maciej Bando, President of the Energy Regulatory Office, Jerzy Kurella, Vice-President, PGNiG and Piotr Ostaszewski, President of the Board, Energia dla Firm.

The first day of the conference culminated in a thematic block on energy as a source of innovation for the economy, attended by JeanAndre Barbosa from Areva, Piotr Muszyński from Orange Poland and Prof. Stanisław Wincenciak from the Warsaw University of Technology.

The second day of the conference opened with a discussion on distributed energy generation among representatives of the public administration, energy and technology companies as well as advisory bodies.

The conference ended with a panel discussion on the position of the Polish power industry on the capital market. Among the participiants were Paweł Tamborski, Chairman of the Board, Warsaw Stock Exchange, Ireneusz Łazor, Chairman of the Board, Polish Power Exchange (TGE) and Piotr Janicki, VicePresident, Enea Wytwarzanie.

•

You might wish to read the photo coverage, which can be found at: www.konferencjaeuropower.pl/europower/fotorelacja/ Please feel invited to the next edition of EuroPOWER, which will be held on 15-16 April 2015. The conference organiser is MM Conferences SA. For more information, please visit: www.konferencjaeuropower.pl.

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We provide: service delivery of spare parts technical support for the lifetime of the equipment

www. horus-energia.pl

Innovation

Katowice Special Economic Zone has been steadily building its competitive advantage

K

atowice Special Economic Zone (KSSE) offers unique conditions for investors who want to open production sites and BPO and/or R&D units in Poland’s most investment attractive region. Those investing in the Zone are eligible for public assistance in the form of Corporate Income Tax (CIT) exemptions ranging from 25% to 55% of the investment expenditure or 2-year labour costs of newly-employed staff.

Coming to an end soon, the year 2014 has been very successful for us in business terms.

During this period, the highest ever growth in investment projects was registered, with 58 new permits being granted to investors declaring having spent EUR 600 million on these projects.

Katowice Special Economic Zone has been steadily building its competitive advantage in two key areas: people and technology. We are aware that well-educated workforce and a focus on innovative solutions and production specialisations are crucial factors when choosing investment location. With this in mind, we are successfully implementing, in the framework of our automotive cluster

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“Silesia Automotive,” a composite platform project dedicated to the development of a highly-innovative technology for the production of structural components of automotive bodies on the basis of carbon fiber composites. This type of production opens up new possibilities for the automotive industry that meet the latest trends.

It is through such projects that we are constantly improving our competitiveness.

Our commitment to promoting innovation is evidenced by the fact that many of the investment projects run in the Zone can boast a high degree of technological modernity.

They include not only automotive, traditionally strongly represented in the zone, but also aviation and IT services.

But the technology development would not have been possible without valuable human resources. Katowice Special Economic Zone, being aware of the importance of highly qualified staff in the modern economy, is actively engaged in promoting vocational education in the region. We want to base our strategy in this area primarily on two pillars: creating a Competence Centre and supporting dual education development.

Our task is to create and implement cooperation between investors and vocational schools, leading to forming classes based on dual-mode teaching, with a greater emphasis on the practical side of education and preparing students for their future occupation. Thus, we meet the needs of employers as far as specific qualifications are concerned.

This year, Katowice Special Economic Zone has been extended to include new attractive investment areas. We offer: • More than 1200 ha of developable area • Plots of land with an area between 0.5 ha and 200 ha • Possibility to adapt the size of the plot to the investor’s needs • Areas very accessible from major Polish and European transport routes • Access to all utilities (water, electricity, gas, sewer) and convenient access roads • A-class office buildings in Katowice • Join the best!

For detailed information, please visit our website www.ksse.com.pl

Infrastructure

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Events

7 European th

Economic Forum

7 S

everal dozen meetings and discussions, plenary sessions, panel discussions, trade exhibitions, nearly 2,500 registered participants, many B2B meetings and a countless number of talks on cooperation, exchanged experiences and newly established contacts. This was the atmosphere during the two days of the 7th European Economic Forum – Łódzkie 2014.

Broadly-understood power engineering and renewable sources of energy were the main theme of this year’s edition of the Forum. We had an opportunity to get to know various opinions on the impact of innovative energy solutions on the construction industry and investments in renewable sources of energy in the context of current legal regulations. The discussions also revolved around energy security and electric mobility (Smart City). Many authorities from the energy market in Poland and worldwide took part in the dialogue. The following people added splendour to the 7th European Economic Forum: Olgierd Dziekoński, Secretary of State at the Office of the Polish President, and Ruta Baltause, Member of the Directorate-General for Energy of the European Commission – renewable energy sources and biofuels.

A vivid discussion revealed that the issues of renewable sources of energy and energy security are very current.

Traditionally, the European Economic Form provided an opportunity for many exceptional personalities from the world of economics to meet. The European Economic Forum was officially opened by Witold Stępień, Marshal of the Łódzkie Region. Professor Witold Orłowski presented his lecture on a very current topic: “How does the situation in Ukraine affect prospects for the Polish and European economy?”. The closing lecture was given by Professor Dariusz Rosati who focussed on presenting a summary regarding the economy of Poland and Europe.

This year’s Forum was hosted by economist Marek Zuber, a well-known economic expert.

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Łódzkie 2014 The organiser of the Forum – the Department of Entrepreneurship of the Marshal’s Office of the Łódzkie Region – focused on the industries that have priority significance for the Łódzkie Region based on the Regional Innovation Strategy LORIS 2030, such as: the textile and fashion industry, innovative agriculture as well as agricultural and food processing, medicine, pharmacy, cosmetics, BPO and IT/ICT. The trade exhibitions, which were hugely popular among Forum participants, were dedicated to those particular specialities.

Meetings with foreign delegations, representatives of companies and business-related institutions among others from Bulgaria, Belarus, Croatia, Moldova, Macedonia and the United Arab Emirates, were a very important element of the 7th European Economic Forum.

Doctor Manfred Kircher, head of the Advisory Board of CLIB2021 and KADIB, and Andrew Grill, the unquestioned global authority in the area of social business and social networking, gave speeches during the Forum.

A new trend appeared at the Forum, i.e. “Łódzkie Region promotes start-ups”, whose main objective was to present chances and opportunities to start-ups and thriving entrepreneurs, for example, to obtain capital for development and begin an international expansion. During this part Marek Borzestowski, founder of the first in Poland Internet portal Wirtualna Polska, presented the path of his professional career.

The official gala of the 7th European Economic Forum, traditionally accompanied by the ceremony of the Economic Awards of the Łódzkie Region, was the closing event of the first day of the Forum. The winners of the 9th edition of the Economic Awards of the Łódzkie Region this year were: • •

Master Pharm Polska Sp. z o. o. – Łódź in the Micro Enterprise category British Centre B. Ziemniewicz, M. Mikuś Spółka jawna in the Small Enterprise category

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•

•

•

•

Constantia Teich Poland Sp. z o. o. – Rogowiec and Pabianicka Fabryka Narzędzi Pafana S.A. – Pabianice in the Medium-Sized Enterprise category PGE Górnictwo i Energetyka Konwencjonalna S.A. – Bełchatów in the Large Enterprise category Gospodarstwo Rolne Państwa Jadwigi i Grzegorza Kurp located in Ciołki, Brąszewice commune - in the Family Farm category Ośrodek Hodowli Zarodowej Dębołęka Sp. z o. o. – Dębołęka in the Agricultural Enterprise category Izodom 2000 Polska Sp. z o. o. – Zduńska Wola in the Innovation category.

During the Gala, Special Awards of the Łódzkie Region were given to The Foundation for European Studies – European Institute – Łódź and MakoLab S.A. – Łódz.

Moreover, a very important jubilee for the Łódzkie Region was held during the Gala the Region is celebrating its 95th anniversa• ry this year.

Events

The Heritage Trade Fair –

conservation and restoration of art collections and monuments

More than 1,200 visitors flocked to the MT Polska Fair and Congress Centre to attend the 2nd Trade Fair of Conservation and Restoration of Historical Monuments, Protection and Equipment for Archives, Museums, Libraries - Heritage 2014. These three days gave an opportunity to get to know the products and services, including equipment, devices and services for archives, libraries and museums, showcased at over 50 stands. The event was accompanied by expert meetings organised in the framework of the Nationwide Days of Conservation and by dedicated conferences under the theme “Protecting museum, archival and library collections.” It was attended by over 700 people. In addition, there were exhibitions featuring works being undertaken to preserve the achievements of past generations. Heritage 2014, which took place on 7-9 October, was prepared in close cooperation with key industry bodies.

The official opening The opening ceremony of the second edition of Heritage 2014 was attended by a number of key industry institutions, including the sponsors of the event. Among the guests were Beata Oczkowicz, Secretary of State in the Ministry of Defence, Jacek Olbrycht, Director General in the Ministry of Culture and National Heritage, Jacek Dąbrowski, Director of the Department of Protection of Monuments, Ministry of Culture and National Heritage, Jacek Miler, Director of the Department of Cultural Heritage in the Ministry of Culture and National Heritage, Marek Czarnecki, Director of the Service Centre in the Chancellery of the President of Poland, Czesław Andrzej Żak, Director of the Central Military Archive, Prof. Aleksandra Skrabacz, Director of the

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Military Centre for Civic Education, Bogusław Wijatyk, Director of the Investment Department, North Atlantic Treaty Organization, Colonel Tomasz Kalina, Director of the Special Infrastructure Bureau in the Ministry of Defence, Prof.

Małgorzata Rozbicka, Director of the National Heritage Institute, Andrzej Biernat and Ryszard Wojtkowski, Deputies to the General Director of the State Archives, as well as many other individuals involved in the protection and conservation of monuments.

“The mission of the Ministry of Culture and National Heritage is a wide-ranging protection of national heritage. We are honoured to be able to patronise this event, along with various important institutions, something that shows the protection and conservation of monuments is a matter of national identity. (...) Our country, painfully affected by wars and difficult history, must close ranks to protect our

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Events

heritage, for which we are responsible. We are therefore delighted that so many people and institutions got involved in the project. (...) We hope that the fair will develop dynamically and that its subsequent editions will bring new systemic solutions,” said Jacek Olbrycht, Director General in the Ministry of Culture and National Heritage.

During the inauguration ceremony, a letter was read from Janusz Piechociński, Poland’s Deputy Prime Minister and Minister of the Economy, who could not make it in person to Heritage 2014. Janusz Piechociński mentioned, among others, that the fair is a key platform for the exchange of views and information between companies representing the sectors of the Polish economy dealing with culture and heritage. The ceremony ended with a ribbon cutting marking the official opening of the second edition of Heritage 2014.

PRODUCTS AND SERVICES SHOWN A diverse range of products and services was presented for conservators and restorers of historic buildings, as well as for museum curators, librarians and archivists, including products for equipment producers, distributors and specialised service providers.

“We offer a full range of conservation and restoration services for structures made of various materials: polychrome materials, paper, leather, stone or metal. We also make copies of monuments, especially for museums and archives. (...)

We appreciate that potential clients we meet at the fair are not ignorant, but have specific issues to tackle. It is an opportunity for us to cooperate,” said Bartosz Iwaszkiewicz from Rewars, one of the exhibitors.

There were also materials and tools for those involved in the regeneration of monuments. Visitors could talk with manufacturers offering electronic equipment for digitisation of archival and office resources, information management systems, as well as services and computer programs.

“We specialise in selling work scanners and we brought them to this year’s fair. In addition, we deal with digitisation of documents in archives and libraries. We are also increasingly active in museums. (...) We appreciate being close to the client, and the fair is attended by our target group, that is those who know what they need and with whom we can talk business,” said Beata Resler from Digital-Center, one of the exhibitors.

Among the exhibitors were also providers of professional furniture for archives.

“Many people were enthusiastic about the fact that the second edition of Heritage 2014 was extended to include conservation and restoration of monuments. The event’s public got enlarged. During these three days, the MT Polska Centre was visited by many librarians, archivists, but also specialists in restoration and preservation of monuments. They had an opportunity to get familiar with exhibitors’ products and services and talk business in a comfortable atmosphere. Many of them willingly benefited from numerous conferences accompanying the fair, which were a valuable source of information useful in their daily work,” said Bartosz Sosnowski, President of MT Polska, organiser of the 2nd Fair Heritage 2014.

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Conferences and Exhibitions This year’s Heritage 2014 was accompanied by conferences organised as part of the Nationwide Days of Conservation and meetings under the theme “Protecting museum, archival and library collections.” They were attended by over 700 people during the three days. In addition, visitors were able to enjoy many superb exhibitions relating to the conservation and protection of monuments. These included: “Protection of Polish cultural heritage abroad - restoration works funded by the Ministry of Culture and National Heritage,” prepared by the Department of Cultural Heritage of the Ministry of Culture and National Heritage; “Historical real estate in the Polish Army,” developed by the Special Infrastructure Bureau of the Ministry of Defence; “Wooden sacral architecture - collections, protection and maintenance,” presented by the National Heritage Institute.

Sponsorship and cooperation The Heritage 2014 Fair was supported by a number of key industry organisations. It was namely given an honorary patronage by: Janusz Piechociński, Deputy Prime Minister and Minister of the Economy; the Ministry of Culture and National Heritage; Hanna Gronkiewicz-Waltz, Mayor of Warsaw; Prof. Władysław Stępniak, General Director of the State Archives; Gen. Wiesław Leśniakiewicz, Commander-in-Chief of the State Fire Service - Head of the National Civil Defence; Wiesław Alojzy Mering, Bishop of the Diocese of Włocławek, Chairman of the Culture and Cultural Heritage Protection Committee under the Polish Bishops’ Conference; and His Beatitude Sawa, Archbishop of Warsaw and Metropolitan of All Poland. The patrons of the Nationwide Days of Conservation were: Piotr Żuchowski, both Secretary of State in the Ministry of Culture and National Heritage and General Conservator, and Rafał Nadolny, Mazowieckie Province Conservator. More than 20 institutions cooperated: the Ministry of Culture and National Heritage, Ministry’s of Defence Office of the Special Infrastructure, Polish Committee of the Blue Shield, Head Office of the State Archives, Central Laboratory for Conservation of Archives, National Heritage Institute, National Institute of Museology and Historical Conservation, Head Office of the State Fire Service, Mazowieckie Province Historic Preservation Conservator, Office of National Conservator, Warsaw City Hall, Culture and Cultural Heritage Protection Council under the Polish Bishops’ Conference, Inter-Academy Institute for Conservation and Restoration of Works of Art, National Library, Central Military Library, National Archives in Warsaw, National Museum of Archaeology, University of Cardinal Stefan Wyszyński, Elżanowski, Cherka & Wąsowski law firm, Gras Savoye Polska Sp. z o.o., Bank Gospodarstwa Krajowego (BGK), Association of Monument Conservators, Polish Librarians Association and Association of Polish Museum Workers.

More information at www.targidziedzictwo.pl.

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www.bccevents.pl on-site events (The Palace of the Lubomirski Family)

off-site events

BCC Events services include: • managing and assisting at anniversary celebrations, concerts, conferences, fairs, exhibitions, auctions •presentations, business and company meetings, seminars • workshops, staff meetings • public debates

Contact: Management of off-site events: tel. 22 582 61 50 e-mail: aleksander.polanski@bcc.org.pl

Management of on-site events : tel. 22 582 61 30 e-mail: andrzej.swiderski@bcc.org.pl

Export

Food exports – a pillar of the Polish economy

Marek Sawicki, minister of agriculture and rural development

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t is worthwhile to talk about the future of Polish and global agriculture in the 21st century because – according to forecasts made by various international institutions, including the United Nations – food production will have to be raised by at least 70% by 2050. The human population is increasing rapidly while the pace of growth in production capacity is much slower.

I would like us to know about the starting point at which we are now. Ten years ago, before Poland’s entry to the European Union, agriculture was called the basic problem of the Polish economy. Now, after these 10 years, I can say with full responsibility that agriculture is one of important ways of solving many problems of the Polish economy and Polish society. The expanding exports of agricultural products mean first of all additional jobs. We export products while jobs stay in the country. Let me remind you that not only many farms but also many enterprises benefitted from funding provided under the rural development programme in the EU’s 20072014 financial period, something which enabled them to develop and raise their financial position. I often call it “financial self-sufficiency.” More than 35,000 farmers benefitted from the Young Farmer’s Bonus programme, more than 73,000 farmers received structural pensions, a mechanism designed to increase the participation of young farmers in agricultural activities, and around 62,000 farms received PLN300,000 each for modernization. Overall, around 170,000 farms took part in these three small programmes. One should add to this very important value-added activities, that is investment in agri-food processing.

More than 1,000 businesses made such investments under the rural development programme. The Polish countryside has changed.

You no longer see here dirt roads and crumbling fences. Most of the roads are modern and with marked pavements. I am saying this to show that the 10 years of our EU membership and the EUR 50 billion Poland has absorbed and spent on investment projects, have produced substantial results. From a net importer of food in 2002 we have turned into a net exporter in 2014, with a surplus of over EUR6 billion. None of our neighbours who entered the European Union together with us has managed

to achieve such growth, not even in proportion with the scale of their agriculture and the value of production. This proves clearly that Poland has made a good use of the resources available to it under the Common Agricultural Policy, though of course one can always say that we could have done it better. We are drawing conclusions from the old financial period and at the moment we are at the start of a new project.

A very painful Russian embargo was imposed on Poland on August 1, 2014. According to European statistics, EU exports to the Russian market were worth EUR5 billion. I think, however, that this figure is greatly underestimated. If we take into consideration only two countries – Poland with almost EUR1.3 billion worth of exports and Germany with over EUR1.6 billion – we have nearly EUR3 billion.

Meanwhile, Italy, Holland and Belgium are also big exporters. So it seems to me that the EUR5 billion figure we publicly speak about in the European Union is at least two times smaller than the actual value. This has already started to have a strong impact on prices and the way farmers and agri-food processors react and behave. I would also like to say that the first nine months of the year were a favourable period for Poland when it comes to trade in agri-food products. Although we did not record a double-digit rate of growth in exports, as had been the case in the past several years, the growth was still above 5%. In the first nine months, exports were worth more than EUR15.7 billion and imports EUR10.7 billion, leaving a surplus of nearly EUR5 billion. If this trend continues in the fourth quarter it will be realistic for us to achieve last year’s results.

Because of the Russian embargo we are looking for new markets for our products and are going on many trade missions. This year, one of the missions was to Belarus and I personally took part in it. The Belarussians are very much interested in exploiting their potential and processing our products to sell them later to further markets. We have also taken part in fairs in Bucharest, Romania. It is an attractive country were we sell more than EUR500 million worth of food products annually, with imports being at an insignificant level. The country hosted this year the first in nine years agricultural forum of Central

The Polish countryside has changed.

You no longer see here dirt roads and crumbling fences.

exports

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European countries and China. In the past years, the forum had been held in China. We are also in the process of negotiations on exporting our pork to Chile and Singapore. Our pork is also sold to Australia and Vietnam. We have recently been on a trade mission to India.

There is quite a big interest in Polish food from that country. And we are preparing a mission to Algeria in December. Algeria is our strategic partner in the region.

Excerpts from a speech delivered at the conference entitled “Polish Agriculture in the 21st Century – How to Build a Competitive Advantage?” held on November 13, 2014 •

s

Export

12

The th Congress of Polish Exporters On 20 November 2014, the 12th Congress of Polish Exporters, organised by the Association of Polish Exporters, was held in the Pod Kopułą Hall at the Ministry of the Economy in Warsaw. The honorary patrons of the Congress were Janusz Piechociński, Deputy Prime Minister and Minister of the Economy, Eugeniusz Grzeszczak, Deputy Speaker of the Parliament, Marek Sawicki, Minister of Agriculture and Rural Development, and Province Marshals.

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Krystyna Woźniak-Trzosek receives medal from Mieczysław Twaróg

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Photo: Rafał Nowak

he leading theme of the 12th Congress of Polish Exporters was the pro-innovative export development in the EU financial period 2014 – 2020.

The 12th Congress of Polish Exporters was attended by about 300 people, including 200 exporters from all sectors and regions. Among the guests of honour were: Janusz Piechociński, Deputy Prime Minister and Minister of the Economy, Jerzy Pietrewicz, Secretary of State in the Ministry of the Economy, Andrzej Dycha, Undersecretary of State in the Ministry of the Economy, Tadeusz Nalewajk, Undersecretary of State in the Ministry of Agriculture, diplomats, MPs, representatives of the ministries of the economy, finance, agriculture and foreign affairs, banks, local governments, foreign diplomatic corps in Poland and Polonia Congress of Exporters, as well as many journalists.

The 12th Congress of Polish Exporters tackled the following topics: Prospects for exportoriented and pro-innovative development of the economy - by Janusz Piechociński, Deputy Prime Minister and Minister of the Economy;

Development opportunities for agri-food exports - by Tadeusz Nalewajk, Undersecretary of State in the Ministry of Agriculture; Activities of the Departments of Trade and Investment for the promotion of exports - by Jerzy Bartosik, Counsellor-Minister, Head of the Department of Trade and Investment in the Polish Embassy in London, Jacek Robak, Counsellor-Minister, Head of the Department of Trade and Investment in the Polish Embassy in Berlin, Konrad Zabłocki, Counsellor-Minister, Head of the Department of Trade and Investment in the Polish Embassy in Ankara, and Włodzimierz Sadzik, Counsellor-Minister, Head of the Department of Trade and Investment in the Polish Embassy in Bucharest.

A panel discussion on the absorption of EU funds in 2014-2020 for the export-oriented and pro-innovative economic development was held with the contribution of: Stefan Tkaczyk, President of FM BRAVO and President of the Central Council of Polish Exporters Association, Prof. Marian Gorynia, Rector of the University of Poznań, Jan Przystupa, PhD, from the Institute for Market, Consumption and Business Cycles Research, Prof. Andrzej Kowalski, Director of the Institute of Agricultural and Food Economics, and Ryszard Nowak, PhD, President of the Board of Lublin Wholesale Market SA in Elizówka near Lublin, Dean of Lublin Corps of Exporters.

It should be stressed that the debate was aimed to discuss the issues relating to the EU financial perspective 2014-2020 for the proinnovative export development, and in particular to assess: • the new financial perspective 2014-2020 for pro-innovative and competitive export development • effectiveness and efficiency of the financial instruments supporting exports • promotional tools focused on the priority and prospective foreign markets

During the Congress, A ndrzej Dycha, Undersecretary of State in the Ministry of the Economy, handed in awards to the winners of the competition “Outstanding Exporter of the Year 2014” sponsored by the Ministry of the Economy: 1st place - Lazur Dairy Cooperative in Nowe Skalmierzyce, Wielkopolskie Province 2nd place - Manufacturing-Service-Trade Enterprise Horus-Energia Sp. z o.o. in Sulejówek near Warsaw 3rd place - Skiba Meat Processing Plant in Chojnice, Pomorskie Province Tadeusz Nalewajk, Undersecretary of State in the Ministry of Agriculture, handed the Cup and Diploma of the Ministry of Agriculture and Rural Development for the “Outstanding Exporter of the Year 2014” in the agri-food sector - to Lublin Wholesale Market SA in Elizówka near Lublin.

Stefan Tkaczyk, President of the Central Council of the Association of Polish Exporters, announced the list of representatives of ministries, embassies, province marshals, universities of economics, research institutes and economic columnists honoured with the “Medals for services to Export.” Mieczysław Twaróg, President of the Board of the Association of Polish Exporters, awarded the medals to Janusz Piechociński, Deputy Prime Minister and Minister of the Economy, Jerzy Pietrewicz, Secretary of State in the Ministry of the Economy, Ilona Antoniszyn-Klik, Undersecretary of State in the Ministry of the Economy, Tadeusz Nalewajk, Undersecretary of State in the Ministry of Agriculture, Krystyna WoźniakTrzosek, Editor-in-Chief of “Polish Market,” Tadeusz Kucharuk, President of Podlasie Consulting Agency Rectus-WOC, and Wojciech Nalazek, Head of the Agriculture Department of TVP1.

•

International Relations

Nasza branża to ludzie 70% produkcji Teva w Polsce trafia na rynki eksportowe

Oferuje najszerszy asortyment produktów w kraju – ponad 500 preparatów

Każdego dnia jesteśmy obecni w życiu milionów ludzi. Każdy z nas potrzebuje czasami opieki medycznej lub leków. Gdy nadchodzi ten moment chcemy mieć pewność, że doświadczenia naszych pacjentów będą możliwie najbardziej satysfakcjonujące.

Produkujemu blisko 4 miliardy tabletek rocznie

Numer dwa w branży leków generycznych w Polsce

W każdej minucie 145 pacjentów w Polsce przyjmuje leki Teva

Ponad 80 lat działalności

August 2014 polish market

87 PO/GTV/14/0505

Cultural Monitor

In December’s Publishing Monitor I would like to recommend a few timeless pieces of music that would make great Christmas gifts. Although they differ in genre, their common trait is certainly value. CDs recommended by Maciej Proliński.

Komeda in Polish Radio Vol. 1 - the oldest recordings Komeda in Polish Radio Vol. 2 - ballet and film music - Polish Radio - CD

T

he beginnings of jazz movement in Poland date back to the second half of the 1950s. An extraordinary talent appeared then on the Polish jazz scene, leaving its mark on the musicians working with him, now the pillars of Polish jazz, like Tomasz Stańko and Zbigniew Namysłowski, as well as on successive generations of Polish jazz musicians.

It is Krzysztof “Komeda” Trzciński (1931-1969), a prematurely deceased self-taught pianist and composer (an ENT doctor by education). His music reflects the process of Polish jazz music growing mature and being influenced by the world jazz... “For Komeda, jazz was a metaphor of human life. It became a music that expresses a desire for personal freedom and flows from within, like a unique kind of experience, involving the discovery of oneself and the world through the art,” said Prof. Marek Hendrykowski, an outstanding Polish film historian.

The Polish Radio embarked on a new and precious initiative to publish a series of Komeda’s CDs with recordings kept in the radio archives, that is songs originally recorded for that institution, and not with a view to being released.

The first CD in the series contains Komeda’s oldest recordings arranged in seven different configurations (from a trio to a sextet). The second CD presents mainly studio recordings of Komeda’s quartet made in 1959 as part of the sound track for “Innocent Sorcerers,” a film by Andrzej Wajda, and Komeda’s trio with an excellent Swedish saxophonist Bernt Rosengren, recorded in 1961 for “Knife in the Water,” a famous film by Roman Polański. This music, still vivid and glorious, now also digitally remastered, is great to listen to. And it is worth delving into it, because, as Komeda said himself, jazz harmonises well with the atmosphere of psychological cinema.

The Marcin Wasilewski Trio - “Spark of Life” - ECM - CD

M

arcin Wasilewski, a composer and pianist who leads the trio, Sławomir Kurkiewicz (bass) and Michał Miśkiewicz (drums) can well be considered as ideological heirs to Komeda. It is the most famous Polish jazz trio in the world today. It is also Europe’s most important acoustic jazz band, which finds its way through any challenging configuration. “Spark of Life” is the fourth album recorded for ECM Records and the eight one in the musicians’ 20-year career. This time, Polish virtuosos invited an outstanding Swedish saxophonist Joakim Milder to play with them. They flawlessly play the leader’s compositions, but also deliver interesting interpretations of jazz compositions by Sting or Grażyna Bacewicz. And they lead you, from the very first note, through the graceful, lyrical, spontaneous and “infinitely jazz” music-making. Everywhere you can hear their thorough education and unbridled imagination. And their colour, something most beautiful after silence...

“Polish Radio Jazz Archives. Vol. 18.” - Free Cooperation - Polish Radio – CD

A

revamped CD by the great group composed of the most interesting improvisers who debuted in the 1980s and are today the pillars of Polish music, including: Antoni Gralak, Mateusz and Marcin Pospieszalski, Janusz Iwański, Wojciech Konikiewicz and Henryk Gembalski.

The band was certainly a sociological phenomenon, and its music still sounds fresh and avant-garde, while being a mixture of different genres - jazz, rock, reggae, which makes it difficult for the majority of critics to classify, to pigeonhole it. One thing is certain: the group, thanks to its multifaceted art, shaped awareness of many contemporary musicians, and is seen today as seeking and providing a personal style and sound. To sum up, “Archives of Polish Jazz vol. 18” is strong, fantastically united by many talents. And there is nothing else like it!

“Męskie granie 2014” (Men’s playing 2014) - Polish Radio - 2CD

I

nnovative interpretations, musical consolidations, intergenerational meetings and artistic challenges - all of these occurred as part of the fifth edition of the “Men’s playing” concert tour, which was hosted by the biggest Polish cities at summer weekends. “Men’s playing,” an original Polish product, not imitating the biggest Polish - but featuring mainly foreign stars – pop-culture festivals, has become since its first edition both an important and unpretentious rock event in Poland. The album “Men’s Playing 2014” is an extensive record of this year’s three concerts in Kraków, Poznań and Warsaw. A unique performance by top Polish artists: Men’s Playing Orchestra, was a project created specifically for the tour of, among others, Andrzej Smolik, its author, a renowned composer and arranger, Monika Brodka, Kasia Nosowska, Artur Rojek and bands: Luxtorpeda, Nowe Sytuacje, Illusion.

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Cultural Monitor – December 2014

Cultural Monitor

Voo Voo - “Dobry wieczór” (Good evening) - ART2 Music - CD

T

he Polish rock legend - Voo Voo celebrates its 30th anniversary with a 35th album.

An enviable regularity! But who knows if “Dobry wieczór” is not one of the most “shamanic” albums in the group’s discography. You can feel there trance, vibrations and so natural improvisation, but also melodic and meditative ballads.

I would lie if I said that it is hard to single out one particular song here. A real gem, which explains to me all that “good evening” thing, is “Gdybym,” a “Song of Songs” guest starring Alim Qasimov - the master of Mugham, a traditional Azerbaijani folk music - and his daughter Fargana.

To sum up, it is a CD for individual contemplation, remembrance and exploration, it being admitted that Robert Lowell (who inspired an acoustic, simple and beautiful finale) was a poet of the past and the future rather than the poet of the present time. And that he was a poet of love, not death. Even though he lived and worked as if “by surprise”...

Piotr Bukartyk - “Kup sobie psa” (Get yourself a dog)- Mystic - CD

P

iotr Bukartyk has been present on stage for more than two decades. Known for his cabaret and literary songs, like Wojtek Waglewski from Voo Voo, he set himself a goal that his future albums will be better and better, and more personal. “Everything here has a family character. On the cover you can see an old lady in the company of a dog. She once happened to be so nice as to give birth to me. We see her sit against the door, through which I went out into the world more than 30 years ago,” says the musician.

This album is a fascinating mix of some strictness and delicacy. And a fantastic sense of humour. Musically, it is embedded in rock and roll, with appurtenances (blues, reggae). And the lyrics? Bukartyk has always been a watchful commentator of our reality. In his latest album, as if by the way, he nicely proves to be the follower of his master, Wojciech Młynarski, as he tells us about himself, or others, about God, or a “corporate” Christmas Eve get-together. Intelligence, melancholy, charm, play with words, joke or punch line given at the right time and in an unobtrusive way - all this is the first rate piece of work and makes you want more and more of this album.

Renata Przemyk - “Rzeźba dnia” (The sculpture of the day) - Universal Music - CD

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enata Przemyk is rightly considered as one of the greatest performers of the so-called literary song.

She earned that well-deserved reputation already in the 1990s. In the new album, she decided, not for the first time, to enter the world of electronic sounds, and sometimes dance music. The album was produced together with a young recorder Jarek Baran. The outcomes of their cooperation are very interesting. More than a dozen new songs (with the majority of lyrics by Przemyk herself) combine the artist’s best: lyrics - intimate emotions, music - expressive melody, and performance - a powerful, operatic-like voice. A musician becomes prominent when they find their own tone, making them recognisable by one sound only. Przemyk found her tone already a long time ago, and recently, she has revamped it in an interesting way.

Irena Santor - “Punkt widzenia” (Point of View)- Polish Radio - CD

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he album was released on the occasion of the 80th birthday of one of the greatest ladies of Polish song. The repertoire was prepared, at a special request of the artist, by the leading Polish composers and songwriters (Seweryn Krajewski, Włodzimierz Korcz, Grzogorz Turnau, Wojciech Młynarski, Jacek Cygan). All songs were recorded by Irena Santor accompanied by Polish Radio Orchestra, and with arrangement done by Tomasz Filipczak and Krzysztof Herdzin. “Punkt widzenia” is certainly a stylistically diverse album, yet compact and very consistently executed. At times, you can spot in this “diary” traces that lead to the past - to the ballads Santor is associated with. In literary terms, the sense of humour harmonises with a deeper insight into the world of a mature woman. An impeccable voice and vocal interpretation, combined with the freshness of composition and arrangement ideas, make it one of the noblest albums of the ending year. This music reveals artistry, distance, but also life wisdom.

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Culture

When

politics

means a calling...

Senator Józef Pinior talks to Maciej Proliński.

We are meeting on the commencement of a several days’ long session of the Polish parliament. What kind of self-awareness have you been bringing to this place for the many years you’ve been here?

What does politics mean to you?

Politics is my calling and I often refer to the famous lecture given in November 1918 by Max Weber, a prominent political philosopher. I believe that doing real politics without passion or a clear-cut vision is impossible. Today, working for the Senatebased Human Rights, Justice and Petitions Committee, and for the European Commission, I am focussed on human rights and European policies. My biography has undoubtedly contributed to the perception of politics as my mission. In 1955, being a young man, I did not think of becoming a politician. By the end of the 1970s, while pursuing my academic studies, I clashed with the harsh reality and dictatorship of the Polish People’s Republic authorities. As did many people in those days, I strongly believed that there were certain things we could not resign ourselves to, such as censorship, the lack of pluralism, or a single list of agreed-upon candidates in the parliamentary elections. These were fundamental issues that eventually inspired my rebellion. I was a law student, and then a lawyer, but in June 1976, after the workers’ protest in Radom had been put down with violence, I realised that I could no longer identify with the system. This was when I decided to join the opposition movement.

I am recalling my entry to politics, being aware that the way I see it may now seem rather odd... These days politics has become trivial, brutal and often futile. pm

pm

According to Lech Wałęsa, “the previous shift left us with a strongly divided

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post-war world”. Today, by the end of 2014, the world again seems to have been set at variance, and so does our own country...

That is true, but our internal divisions are natural. They arise from the liberaldemocratic system which should intrinsically entail wise divisions, that is such that are not destructive. Divisions, debates, or even arguments may bring a new added value. Yet, not only Poland alone has been set at such diversity of views. If we look at the American politics, the Polish political scene appears rather calm. Let us take, for instance, the news reported before the recent presidential election - when Donald Trump offered a special prize for proving that Obama had not been born in the USA. Irrespective of our internal divisions, we are now dealing with the emergence of a new global reality, threatened by potential military conflicts in Eastern Europe. This is a new and very dangerous phenomenon.

I support the view that Polish politics should concentrate on securing peace and understanding in our part of Europe, in precise coordination with EU policies.

We are meeting in the time of considerable disturbances related to challenging the fairness of the recent local elections in Poland by some opposition members. What is your opinion on this matter? How can this impasse be overcome?

We are talking while standing inside the storm’s centre, in the Parliament House in Warsaw. As we speak, some political groups are preparing large-scale demonstrations challenging the fairness of the election. In my opinion, the fact that the National Electoral Commission has lost its reputation is indisputable. Let me quote editor Daniel Passent who said that “this election was pm

messed up by the Commission”. It was illprepared and conducted terribly, starting with the National Electoral Commission’s website - which was user-unfriendly and non-transparent - and ending with the fact that the Commission failed to provide an adequate electronic system to effectively monitor the election results. However, this does not mean the election was rigged and its results are unfair. At least we have no evidence to support such views.

This problem should be overcome by reforming the election system, and not by destroying the country. If we now put the fairness of the Polish elections into question, we will challenge the foundations of the Polish political scene, and hence our democratic victory in 1989. Instead, we should focus on the President of Poland and the Parliament, and reorganise the National Electoral Commission by preserving its structure, while changing the composition. We should also consolidate the election standards using modern means of communication, including computer systems. This can actually be done without much effort. In return, we would get the upcoming election conducted in line with binding standards, out of respect for our country and democracy.

Unfortunately, it should be borne in mind that the idea of a “rigged” is extremely destructive. Moreover, it certainly does not act in favour of such reform. On the contrary, it promotes chaos in the Polish political domain, which is what we should avoid at any cost. pm

This year has brought many anniversaries important to the Polish history.

How would you recapitulate those 25 years of freedom? Certainly, a number of things specific for your generation

Culture merit recognition. Do you think they have been adequately commemorated?

Unfortunately not. The underlying reason for this was that the post-1989 transformation was often unclear. The distinction between those who fought for our freedom at the cost of imprisonment, destroyed professional career, marginalisation or a lost life, and those who conveniently derived benefits from the communist system, has become blurred. We have all failed - not only the politicians, but also the media and schools - to commemorate this event a ‘new beginning’. As a result, we are now facing social disorientation and the lack of direction of our democracy. This often gives rise to such common beliefs as “everybody steals and everybody is dishonest”. In response to such comments, I say: “I don’t steal”. Today, we are establishing institutions dedicated to commemorating the Solidarity movement, such as the Gdańsk-based European Solidarity Centre. However, I can hardly recall any events being held at the outset of the 1990s to celebrate the Polish August 1980 developments which had begun the 10-million strong social Solidarity movement that eventually changed Poland, leading to the Central European Autumn of Nations of 1989 and the fall of communism.

On 7 November 2014, you attended the “Polish Market” gala, during which we awarded our Honorary Pearl to Senior Cardinal Henryk Gulbinowicz for promoting social values. What emotions accompanied you while giving a speech in praise of the awardee?

I was deeply moved that I could give a speech in praise of Cardinal Gulbinowicz whom I consider a true statesman. In the Polish language, when you want to stress that somebody is a great and noble politician, you call him or her a statesman. Under the Polish Peoples’ Republic regime, we did not have any democratic politicians that could legally operate in the country. In the Upper Silesia and Wrocław, this task was taken over by two cardinals - Bolesław Kominek, who was the prime mover and author of the ground-breaking visionary Polish bishops’ letter to German bishops, dated 1965, and Henryk Gulbinowicz. In 1981, following the introduction of the martial law, Cardinal Gulbinowicz set up the Cardinals’ Committee for Charity in Wrocław, with the aim to take care of internees, prisoners and the poor. The archdiocese building became a shelter and meeting point for the opposition members. This was also where I deposited the legendary sum of PLN 80 million collected through fees paid pm

by the Lower Silesian Solidarity members, which was withdrawn from the bank in 1981.

The withdrawal was signed by myself and Piotr Bednarz, Deputy President of the Independent Self-Governing Trade Union “Solidarity” in the Lower Silesia. We did this at the eleventh hour, as on 13 December 1981, the bank account was frozen by the communists. The authorities viewed our action as bank robbery and they undertook far-reaching measures in order to recover the money. However, it was carefully safeguarded by Cardinal Gulbinowicz. He kept it in his private chambers of the Bishops’ Palace. Following the introduction of the martial law, these financial resources contributed to building the Wrocław “underground”.

The cardinal also helped us save the money from inflation, as the church made it possible to exchange it into dollars. Let me just remind you that in those days, the Internet and mobile telephony were non-existent, and the closed borders prevented us from any travelling. The cardinal regularly met with us to disseminate information from the world and to assist us in contacting, among others, Zbigniew Brzeziński. Very few people know that the cardinal, being an extremely modest person, was the Vatican envoy for Eastern Europe. Last but not least, he was a great underground activist. I still remember our first meeting - when I came to him with the PLN 80 million packed inside three suitcases. I remember the spark in his eyes... He trusted me instantly, although he could not rule out the possibility that I was an inciting agent.

A few years ago, this event inspired Waldemar Krzystek to make a feature movie entitled “80 million”. What are your impressions about it?

Reading the script to this film invoked dazzling emotions inside me and my wife.

This process turned out far more difficult than surviving an election campaign. In my opinion, Waldemar Krzystek undoubtedly succeeded in showing Wrocław as it had been under Martial Law. We tend to think in images, and this film, in a way, resembles the famous painting entitled “Liberty Leading the People” by Eugène Delacroix, that praised the French Revolution. When we think about the Spring of Nations, we recall the girl that led people to the barricades. Krzystek’s vision is equally suggestive, which is why we may associate the Solidarity “underground” with images presented in his film, including the powerful scene of demonstrations at the Grunwaldzki Bridge. For Lower Silesia, this is an iconic classic that adds to our regional identity. pm

I realised that I could no longer identify with the system.

This was when I decided to join the opposition movement.

It can even be compared to the “Sami swoi” film trilogy directed by Sylwester Chęciński in the previous decades. The film is, nevertheless, an artistic manifestation of the director’s vision. I can recommend to the “Polish Market” readers a book entitled “ 80 Million” by Katarzyna Kaczorowska, where the actual facts are interlaced with the stories of the heroes and heroines of this event after 13 December 1981, including the price they had to pay for their engagement in the Solidarity movement. This is what cannot be found in the sensational, Hollywood-like film by Krzystek.

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December 2014 polish market

91

Culture

A great story and its

“barefooted listener” “The Green Table.” Pictured: Robin Kent and Aleksandra Liashenko Photo: Grand Theatre – National Opera

Maciej Proliński

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he first ballet premiere of this season was held at the Grand Theatre – National Opera in Warsaw on November 15, 2014. It was a “dance triptych” by choreographers Robert Bondara, Jiři Kylián and Kurt Jooss entitled “1914”. The subject of each piece is war – its causes, nature, course and consequences. Outstanding Polish choreographer Robert Bondara created the ballet “Nevermore?” to music by Prasqual, Paweł Szymański and Steve Reich. Bondara’s work was contrasted with “Soldiers’ Mass,” a classic piece of contemporary dance, choreographed in 1980 by Jiři Kylián to Bohuslav Martinu’s music, and Kurt Jooss’ famous ballet “The Green Table” of 1932. Soloists, the Polish National Ballet company, and the orchestra and men’s choir of the Grand Theatre – National Opera appeared on the stage.

The intention of the “Nevermore?” choreographer was for the ballet to encourage reflection over the nature and causes of armed conflicts from the perspective of an individual person, who is always helpless in their face.

“I wanted to take a general look at armed conflicts and how they were changing over the past 100 years,” says Robert Bondara, dancer, choreographer and teacher, artist of the Polish National Ballet, graduate of the State Ballet School in Łódź and the Frederic Chopin University of Music in Warsaw. His latest work does not depict a specific biography, it is

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more “a collage” of human fates. The ballet is composed of three parts. The first one shows life at a time of peace. In the second part, the audiences witness an armed conflict. In the third one, the conflict is already over, but still exerts influence on the people who have experienced it.

The second ballet, “Soldiers’ Mass,” is the title of a cantata by Czech composer Bohuslav Martinu. He composed his wonderful choral work after the German invasion of Czechoslovakia in 1938. But in fact it alluded to the tragic memories of the First World War. Famous Czech choreographer Jiři Kylián created on the basis of this composition a touching men’s ballet, in which young soldiers sent to the front die in senseless wars. Yvan Dubreuil, Kylián’s assistant, is responsible for the staging of “Soldiers’ Mass” with the Polish National Ballet. According to Dubreuil, the value of this choreography is that it evokes the memory – about the work, its structure, choreography and the times of war.

The last part of the “1914” ballet evening is the timeless “Green Table,” a strong work understandable to absolutely every person, choreographed by Kurt Jooss to the music by Friedrich A. Cohen for two pianos. Jooss’ legendary ballet, in the spirit of sharp anti-war political satire, was intended for a choreographic competition in Paris in 1932. It won the first prize and was later shown many times across

the world by Jooss’ company, after his emigration to London in 1933, and by other ballet companies.

Jeanette Vandersaar, an outstanding American dancer, who has danced in the United States, Switzerland and the Dutch National Ballet company, and is now a classical dance teacher and ballet mistress, took part in the Warsaw premiere of “The Green Table.” She is the only person in the world who has the right to hand down this choreography to ballet companies because “The Green Table” has to be staged in accordance with the original choreography, stage design, costumes and Friedrich Cohen’s music played on two pianos.

This “rigour” is justified – there is no need to change anything in the choreography. The greatness of the ballet is reflected in the simplicity of the concept, precision of gesture, beauty of stage images and music, and finally ingeniousness and the universal nature of the problems depicted, especially the ruthless and at the same time ludicrous negotiations conducted by diplomats, who do not take part in a war themselves, but send more and more soldiers to the front. A unique feature of this choreography is the concentration on small gestures and movements, which convey many important ideas and emotions.

Some of the readers will certainly find here associations with Witold Gombrowicz’s play • “History”.

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Culture

Royal Castle-

a museum without barriers

The Royal Castle in Warsaw – Museum is the main winner of the national competition, “The World Wide Web without Barriers”, organised by the Friends of Integration Association and the City of Warsaw. The award, in the form of a diploma and statuette, was presented on 6 November 2014 during the Great Gala of Integration with the participation of President of Poland Bronisław Komorowski.

Royal Castle Maciej Proliński

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he Royal Castle in Warsaw – the Museum acquired the right to use the title of the best accessible website among publicly financed cultural institutions. The jury justified its choice as follows: “The electronic service without the need to change the colour pattern is very easily accessible for visually impaired people. The content is well contrasted, with a good visibility of links, responsiveness, and no unexpected changes in context.” The contest’s organisers also found that the Castle’s website complies with the obligation to be effective as of 1 June 2015 to accommodate the needs of people with disabilities, in accordance with WCAG 2.0. (Web Content Accessibility Guidelines).

The new website of the Royal Castle: www. zamek-krolewski.pl, has been available online since June 2013. Refreshed graphics are dynamic and attractive, and modern technology allows a virtual visit of the Castle on computers, tablets and smartphones. You see the Castle from the front and from the side of the renewed facade on the Vistula River, as well as sumptuous interiors: the Senators’ Hall, the Throne Hall, and two paintings by Rembrandt. You can wander through the Castle’s galleries, browse through the Calendar section for upcoming events, watch some of the digitised collections, including paintings

by Marcello Bacciarelli and Canaletto. The

new website is fully compatible with the social media sites: Facebook, Twitter, YouTube, Google+ and Instagram. It is available in Polish and English.

The new website was created in collaboration with Squiz Matrix, which has worldwide experience in designing websites for museums and cultural heritage institutions such as the Victoria & Albert Museum, Westminster Abbey, and the National Museum of Australia.

The project was funded by the Ministry of Culture and National Heritage in the amount of more than PLN 11 million, by the Teresa Sahakian Foundation (more than PLN 130 thousand) and by the Royal Castle itself.

In the future, the Castle plans to resort to Squiz Matrix to facilitate access to and distribution of digitised collections (thematic service, additional information about collections), electronic payments and online distribution (tickets, publications, special offers).

The Royal Castle in Warsaw – Museum is in possession of more than 50 thousand exhibits and nearly 100 thousand archival units. All collections are to be digitised, including collections of the foundations operating within the Royal Castle Foundation: Ciechanowiecki Family (nearly 950 objects), Teresa Sahakian (almost 800) and Tomasz Niewodniczański (nearly 17 thousand).

“The digitisation of collections of the Royal Castle in Warsaw” is one of the tasks carried

out in the framework of the museum’s strategic plan for the years 2011-2015. It aims to facilitate access to cultural heritage for the wide audience.

The project was divided into several stages. In the first stage (2012-2013), the following tasks were completed: a photographic studio was set up and equipped, a self-service station was organised for scanning archival and library collections, a digital repository created, IT infrastructure was upgraded, digitisation procedures and instructions were introduced and a digitisation pilot programme was carried out. In the second stage, completed in June 2014, digitisation and development of infrastructure were continued in order to achieve the primary objective of the project, i.e. facilitating access to digital cultural heritage resources. The project involved complementing the existing technical infrastructure with a photographic studio and another scanning station, further conservation of collections, modernisation of telecommunications infrastructure, digital asset management, and development of the Castle’s own site with digital resources. Ultimately, the Castle will provide catalogue images and descriptions of digitised collections, as well as some archival and library collections, using a dedicated virtual directory, the ZOSIA system and the Europeana site.

• December 2014 polish market

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Culture

A guide through Iran

Artur Orzech, a well-known Polish music journalist and Master of Ceremonies, has written the book “Wiza do Iranu” (A Visa to Iran). Despite the fact that in Poland a number of brilliant report stories on Iran have been published, including “Szachinszach” (Shah of Shahs) by Ryszard Kapuściński, “Rewolucja w imię Allaha” (Revolution in the Name of Allah), and “Szatan wraca do Iranu” (Satan is Back in Iran) by Wojciech Giełżyński, “Wiza do Iranu” complements this essential genre of exploring other cultures.

The book offers its readers a range of basic information on the country of ayatollahs. It is a combination of a report on Orzech’s travelling through Iran, a tourist guide and an impression of the country and its residents.

Maciej Proliński

“

Wiza do Iranu” is the culmination of 30 years of fascination and numerous personal experiences by the author connected with Iran. This is because Orzech is a graduate in Iranian studies from the University of Warsaw, and previously was a translator and assistant lecturer in the Department of Iranian Studies at the University of Warsaw.

Although today he has little contact with his acquired profession, Iran is still among his major interests. Let us quote Professor Marek Dziekan from the Department of Arabic and Islamic Studies at the University of Warsaw, who said the book was “a journey with an exceptionally competent guide.”

The history of Iran could take up multiple volumes, yet Orzech decided to write a relatively-brief but fascinating overview of information on the country, every now and then enriched with an enticing detail. Orzech selected only a few major problems of this part of the world.

Nearly 300 pages contain the history of the country and language, a description of Iranian women and men, a discussion of Iranian law, and the attitude of the local people towards love, as well as the author’s problems with getting a visa. (You should apply for a visa to Iran 4 months before the planned departure; the author states that it is best to start with obtaining a visa and only then make any transport arrangements. You can also use the services of

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a travel agency which can assist you in obtaining a visa; the agency can be Polish or Iranian).

The book starts with the following passage: “Just in case, I don’t begin my story with the moments of victory in the Iranian Revolution. This is in order to preserve official contacts with Iranian authorities in the future and to be able to go there without any obstacles of a formal nature.”

As Orzech has accurately observed, the life of Persians is not only about politics. Social issues are equally important - the changing status of women, the grassroots women’s movement, and the symptoms of new hope arising from the activities of reformers. There are also extensive passages on the great Iranian culture - literature and cinema, which is still dominated by moral idealism. However, it does not manifest itself in pretentious statements that the world will be cleansed of all evil, but in the form of small ordinary acts of generosity and compassion carried out by simple people, who have often suffered a loss (of someone or something), by the poor, and, first and foremost, by children, who are full of light and grace.

The author is certainly trying to overcome numerous stereotypes about Iran. He is enchanted by the country, its culture, cuisine, and, first of all, by the people who are interested in getting to know Europeans.

Unfortunately, Orzech sometimes fails to avoid creating or reinforcing unnecessary

stereotypes (in this case about Poland). For instance, he quotes an interview for the “Polityka” weekly with Piotr Ibrahim Kalwas, a Polish writer who converted to Islam and moved to Alexandria, Egypt. In the interview, Kalwas makes the following comments about Poland: “I feel banished by the beer-drinking scum”, “the vulgar culture of feasts and vodka”…This is rather astonishing. In my view, the complete awareness of the value and greatness of Polish culture is a main factor contributing to my fully open attitude to foreign cultures and the willingness to learn about them… I suppose I’m not the only one of such opinion.

To summarise, I think that “Wiza do Iranu” was written for those who usually have little time for reading and need basic knowledge. For this reason the book is perfect for everyone who is just beginning their adventure with Iran or who feels their knowledge about Iran is unstructured and needs a work that will make it more organised. For obvious reasons, Orzech focusses on describing only major processes and events, so one should not expect a chance to discover some concealed mysteries or details. However, the advantage of the book lies in its accessible language, which readers who are not used to scientific discourse or are looking for something interesting to read will certainly appreciate. The book is definitely worth recommending to this group of readers.

•

Food Industry

Małopolska’s

delicacy: the region’s showcase Maurer juice extraction plant In 2002, Krzysztof Maurer, a farmer from the village of Zarzecze in southern Poland, renewed a family tradition of extracting juice from fruits with a hand press, which was first used for years by his grandfather, and then by his father. Over time, the process of cold pressing and pasteurisation was improved, and the range of tastes was enriched. In 2003, the Maurer juice extraction plant (Tłocznia Maurera) opened and Maurer Juice became a rarity and the region’s showcase. Currently, the plant produces juices in dozens of tastes, which are then pasteurised in a traditional manner.

Thanks to original recipes, all juices have excellent health benefits, contain many vitamins and microelements. Maurer Juice owes its original taste and flavour to the fruits it is made from. These are bought from local farmers of the Łącko valley, where they grow on mountain slopes and enjoy widespread recognition. Grown since the 12th century, Łącko apples made it to the List of Traditional Products in 2005, and they were granted the mention of Protected Geographical Indication in 2010.

Tłocznia Maurera specialises in the production of natural fruit and vegetable juices as well as fruit syrups, wines, spirits and cider. Its products have four main features:

: the juices are pressed, so all the valuable ingredients go directly to the bottle of Maurer Juice

Health

: the juices are pasteurised with no sugar, water or preservatives added

Nature

Tradition: the juices are pressed according to a family tradition

Taste: the fruits the juice is made from come largely from IPO (Integrated Fruit Production) organic farms in the Łącko region

The secret to a good juice is a selection of tasty and healthy ingredients. Our juices are made from fruits which: • are not grown on huge plantations, but mostly in small gardens and orchards in Łącko and its neighbouring communes, under the watchful eye of farmers who do care about quality, • have an intense taste and an excellent flavour due to the Łącko microclimate: after ripening in the mountain air, they have a pronounced juicy flavour, • grow on the slopes, near the Dunajec river and mountain

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streams, far from highways or factories (Małopolska is one of the ecologically cleanest regions in Poland), • enjoy an excellent reputation across the country and abroad.

Maurer’s Manufactory Continuing the long tradition of Łącko highlanders, Maurer’s Manufactory offers a selection of fruit aquavits and fruit wines in several flavours, naturally fermented, traditionally distilled, and properly matured. This makes them have a well-flavoured bouquet.

The basic raw materials for the production of wines and aquavits are organic fruits, ripering on mountain, sunny slopes. The completeness and reliability of the manufacturing process ensures that Maurer’s is a synonym of high-quality, which distinguishes it from other brands and makes it competitive. We make sure that the manufacturing process is in compliance with the procedures. Since the Middle Ages, the gardens of Łącko have been famous for ripe and healthy fruits. For years, these gifts of Mother Nature have been processed into various preserves according to old recipes handed over from generation to generation. The variety of wines and spirits produced is a real treat for all those looking for interesting and new flavours. Maurer’s wines and aquavits are very aromatic. Try, and feel the pronounced taste right after opening the bottle!

Numerous awards confirm, high quality and good taste of our juices. These include: • Pearl 2004 in the contest “Our Culinary Heritage” • Regional Specialty at the 20th Fair of Healthy Lifestyle and Food Ecolife 2004 • 1st place in “Małopolska Taste 2005” • 3rd place in the 6th national contest “Recipe for success 2006” • 1st place in the semi-finals of Małopolska Taste Contest, Nowy Sącz 2008 • Wiktoria Entrepreneur Quality Mark 2013 • Krakowski Dukat 2014 • Gold Medal in the category Percents and Permills at the 2nd Fair of Traditional and Regional Products “Regionalia 2014” for Łącko Śliwowica (Plum Aquavit).

• 1st place in the category Food Products at the Taste Festival 2014 for Gooseberry Wine in Gruczno • 1st place in the category Food Products at the Taste Festival 2014 for Łącko Morelowica (Apricot Aquavit)•

STĄD CZERPIEMY NIEZAWODNOŚĆ Jesteśmy w pełnej gotowości bez przerwy. Od Pomorza po centrum. Tu nad Bałtykiem, gdzie pogoda lubi zaskakiwać, nauczyliśmy się, że nie można czekać… Trzeba działać bez względu na przeciwności. Nasi fachowcy są doskonale przygotowani na to, by natychmiast reagować na awarie prądu. Pod tym względem Grupa Energa nie ma sobie równych.

Liczysz na więcej korzyści?

Uruchom kontaktzkorzyscia.energa.pl. *Wśród ponadregionalnych operatorów systemów dystrybucyjnych w Polsce Energa-Operator wyróżnia się najmniejszą liczbą przerw w dostawach prądu, według wskaźników SAIFI za rok 2013.

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