Polish Market No. 200/2013 DIAMONDS EDITION by Polish Market

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Economy

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Contents

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From The President’s Press Office From The Government Information Centre

Our Guest

Bury, Chairman of the Programme Board 44 Jan of the Innovations Forum, Vice-Chairman of

Jerzy Pomianowski, Under-Secretary of State for Non-European Policy and Democratization Agenda at the Ministry of Foreign Affairs; Polish diplomacy has a lot to offer

Jerzy Pietrewicz, Deputy Minister of Economy; Renevables- a better energy mix

DIAMONDS EDITION 200 POLISH MARKET

CSR Proliński; Polish Market supports Young Disabled People 29 Maciej Polish Market round table

30 Ewa Bałdyga, vice- president of Martis Consulting; Corporate social responsibility

32 NUTRICIA responsible business Innovation Wiecka, Managing Director of SAS Institute; 34 Alicja Innovation, competency, flexibility

the Parliamentary Group on Space; We should appreciate Poland and our achievements Ferenc, the Mayor of Rzeszów; 46 Tadeusz Innovation comes first

Marek Banaszkiewicz, PhD, Marta Wachowicz, PhD; 48 Prof. Space as an important part of the economy Bonacina, ESA, Spokesman for the Director General; 50 Franco International cooperation is not always easy

International relations Bochniarz, PhD University of Washington’s 52 Zbigniew Evans School; Change the climate in Poland 54 Wrocław Global Forum 2013 56 More than a hotel 58 Błażej Grabowski; The Regional Forum in Gdańsk

Energy Piechociński, Deputy Prime Minister and 60 Janusz Minister of the Economy; Time for a “bottom-up“ approach

Jerzy Buzek, Chairman of the Social Council 62 Prof. on Low Emission Economy Development; Social Council European sensation

36 Bring big data to life with visual analytics 37 Maciej Proliński; Warsaw has a new hospital 38 Bogdan Węgrzynek; Clusters as an EU priority Marzec, president of BGS Biside Global Services; 39 Wojciech We improve the quality of life 40 Ewelina Janczylik- Foryś; Poland has a lot to offer 43 A university that aims high 2 :: polish market :: 5 - 6/2013

63 Prof. Krzysztof Żmijewski; Energy industry– symptoms of collapse 64 SA; Ensuring the security and efficciency of the Polish Power System Henryk Majchrzak, PhD, President of the Management Board of PSE

Ecology

66 Prof. Maciej Nowicki; About green economy Skucha, President of the Management Board of the 68 Małgorzata National Fund for Environmental Protection and Water Management; An EFECT- oriented institution

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Contents

Construction Michałowski, President of the Polish Association of Construction 70 Marek Employers; Businesses generate losses Watzl and Wojciech Trojanowski, Members of the Management 72 Alfred Board of Strabag Sp. z o.o.; Strabag- company that likes challenges

94 96 98

Roni Einav, co-author of the book “Nordau to NOSDAQ”; The bright and the dark side of success Prof. Małgorzata Zaleska; Most wanted: Long-term bank financing Prof. Robert Gwiazdowski; Economy may be simple

Law Real estate

74 Jerzy Smolarczyk, co-owner of Pinus; Quality first! Skowroński, president of SABE 76 Andrzej Investments Sp. z o.o.; In Warsaw and on the Baltic coast 80 82 Gates, doors and fences by Wiśniowski the crown on your investment Kołodziejczyk, PhD, MBA, MEng, Senior Consultant, 84 Bolesław Valuation & Advisory, Cushman & Wakefield; Tomasz Panabażys, President of the Board of Dolcan; Condo system- a new fashion

EMEA office market in 2012

Konrad Heidinger, CBRE; Key trends in the office leasing market in Poland

Finance Fuchs, CEO of Vienna Insurance Group Polska, Compensa TU S.A. 88 Franz and Compensa TU na Życie S.A. Vienna Insurance Group; Challenging market Parkinson, President of Provident Polska; 90 David Proud of heritage, up-to-date with the market trends. Provident joins the WSE

Elżbieta Mączyńska; Mistakes in economic 92 Prof. measurement and in the quality of life

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Katarzyna Barańska, lawyer in Real Estate practice, White & Case; Doing business in Poland - a brief overview of the liability of participants in the investment process

Krześniak, PhD, Squire Sanders Święcicki 103 Eligiusz Krześniak sp. k.; What’s next for renewable energy?

Culture

104 106 108 110 111 112

Cultural Monitor Aneta Muszyńska, curator of the exhibition project “Spectra Art Space”; Where art meets its subjectivity Maciej Proliński; With a woman in the foreground Maciej Proliński; The Treasures of the Royal Library Nurturing the past More than a noble product ...

Events

114 European Executive Forum 116 Jubilee Silesian Quality Award Gala Food industry

118 Symbio Polska- stringent standards only Ziemann, head of the project promoting, the Association 120 Piotr of Polish Butchers and Producers of Processed Meat; No market thrives in a void

Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.)

Photographers: Jan Balana, Agnieszka Charuba, Łukasz Giersz, Rafał Nowak

Design and DTP: Lili Projekt project manufacture www.liliprojekt.pl

President: Krystyna Woźniak-Trzosek

Sales: Phone (+48 22) 620 38 34, 654 95 77

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Natalia Suhoveeva natalia.s@polishmarket.com.pl

Circulation: 8,000

Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła Adress: ul. Elektoralna 13, 00-137 Warszawa, Poland Phone (+48 22) 620 31 42, 652 95 77 Fax (+48 22) 620 31 37 E-mail: info@polishmarket.com.pl Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl

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

Anna Tywonek anna.tywonek@polishmarket.com.pl Public Relations: Joanna Fijałkowska j_fijalkowska@polishmarket.com.pl

Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. Nr KRS 0000080385, Sąd Rejonowy dla m.st. Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł. REGON 011915685, NIP 526-11-62-572 Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unsolicited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility what-soever for the content of advertising material. Reproduction of any material from this magazine requires prior written permission from the Publisher.

200 EDITION POLISH MARKET

utting the 200th issue of “Polish Market” in the hands of readers, we are wondering ourselves how we have managed to do that. Without a big publishing machinery, without large financial resources and without a political umbrella we have already survived for 17 years on the increasingly difficult and competitive media market. How was that possible? Seventeen years ago we were at the start of our negotiations for Poland’s entry to the European Union and NATO, and there was the question of “what our future partners know about us.” Of course the “founding fathers” of our magazine were not as arrogant as to believe that “Polish Market” would fill this multi-generational gap. But room for activity was there and we asked ourselves what our message should be. At that time foreignlanguage publications were appearing in Poland, with English having undisputed pre-eminence. But we were aware that our magazine should not be a carbon copy of the Polish press, which was then enjoying the first years of freedom. Our project had to reject any tabloid features and news hot for only one day. It had to refrain from dazzling readers with local Polish celebrities and single-season authorities. The instability of the Polish political scene at that time demanded our political neutrality. We also attached great importance to ensuring high quality content and form to our magazine so as to make it a pleasure for us to deliver it to the foreign partner. I think we have managed to achieve quite a lot of these goals and that we met the needs or our readers. We probably owe this success more to the intensity of developments making up the most recent history of our country, its economy, science and culture than to our own efforts. We tried to be witness to these developments and make sure that our journalists and copies of our magazine were present wherever something of vital importance for Poland was taking place. We accompanied all stages of Poland’s accession negotiations with the European Union – in Brussels and Copenhagen and then the final events in Athens and Dublin – debates of the Council of Europe, and tens of meetings associated with the Polish EU presidency. We were present wherever Polish economy and culture were presented – at all world exhibitions Expo held in the years 1998-2010, from Lisbon to Shanghai, big international fairs like CEBiT, Grüne Woche, ITB, Midem, Mapic, SIAL, Farnborough and many others as well as Poznań international fairs. We took part in all promotional campaigns organized by Polish diplomatic services in Germany, France, Spain, Austria, Sweden, Britain, Russia and Israel, supporting them with special issues of “Polish Market” published in the French, German, Russian, Arab, Hebrew and Chinese languages. One has to admit that history made the task we had undertaken as easy as possible. The past 20 years was the best economic period in the history of our country. Poland’s GDP and consumption doubled, and the country’s economic and social infrastructure is undergoing modernization. There is still a wide gap between us and the most developed countries, but it has started to narrow slowly.

We are aware that this process is not painless, but it is a great experience to be able to provide our foreign partners and readers with objective good news. We are glad that the number of successful Polish firms worth presenting to the international readership is growing consistently. Since our first issues we have presented the winners of the most important competitions and business rankings: the Economic Prize of the President of Poland, the Teraz Polska emblem, Business Leaders and others. It is with great pride that we have presented the winners of the Pearls of the Polish Economy ranking that “Polish Market” runs jointly with the Polish Academy of Sciences. The ranking of the best Polish firms is accompanied by the Honorary Pearls award granted to personalities who have rendered extraordinary services to Polish economy, science and culture. Speaking about important personalities, we should say a few words about the people thanks to whom we were able to publish the 200 issues of “Polish Market”. We know it is difficult for us to provide foreign readers with texts by authors they recognize. You have to admit that at the beginning of our activity in particular the Polish names such as Jerzy Buzek and Janusz Lewandowski did not mean much to you. Today, we are happy that the number of recognizable Polish names has increased and that articles and interviews with many of them can be found in the columns of “Polish Market”. We show you the points of view of leading Polish politicians, business people, scientists and artists. “Polish Market” means first-hand news and opinions. “Polish Market” also means a big professional adventure for a few dozen people whose work, in various periods, contributed to publishing the 200th issues. I think that all these people, me included, feel satisfaction about that and have a sense of being appreciated by organizations of employers and business, and the state authorities, irrespective of the political camp they come from, who have honoured us with distinctions. The title of Ambassador for Polish Business, European Medals and the Golden Griffon award for the best Polish printed product are only some of the moments that encourage us to redouble our efforts. We are facing new challenges. The most important one is migration to the world of electronic media. We hope we will be able to meet this challenge. :: Krystyna Woźniak-Trzosek Editor-in-Chief President Rynek Polski Publishers Co. Ltd.

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President

Good cooperation with Zagreb at the EU forum

resident Bronisław Komorowski and his wife have been on an official visit to Croatia, which accedes to the European Union on 1 July. The Polish President met President Ivo Josipović. At a joint conference with him, President Komorowski said that Poland derived great satisfaction from Croatia’s integration with the EU. He expressed his hopes for good cooperation with Zagreb at the EU forum. During the visit, the President was accompanied by the Head of the Chancellery of the President, Jacek Michałowski, and Minister Jaromir Sokołowski. The Polish Head of State also met the Speaker of the Sabor (Croatia’s Parliament), Josip Leko, and then jointly with the President of Croatia opened the economic seminar, during which a memorandum was signed on cooperation between the Polish Information and Foreign Investment Agency and the Croatian Investment and Competition Agency. Bronisław Komorowski attempted to persuade the Croatian partners to create an appropriate climate for increasing Polish investments in Croatia. He also pointed to the attractiveness of the Warsaw Stock Exchange, promoting it among Croatian entrepreneurs. ::

Poland opting for stronger cooperation with France

resident Bronisław Komorowski and his wife have paid an official visit to France, where they met President François Hollande and the President of the French Senate. In the Potocki Palace, the headquarters of the Paris Chamber of Commerce and Industry, the Polish President attended a meeting with French entrepreneurs. He stressed that Poland is one of Europe’s leaders on the foreign-investment scale. “Investing in Poland is simply profitable,” he argued. The President also pointed out that recently the structure of foreign investments in Poland has changed – already over half of them involve innovation and knowledge-based enterprises. “Poland attaches a lot of importance to enhancing Polish-French cooperation,” said President Komorowski after a meeting with President Hollande. He mentioned security and defence policies and also European cooperation. The President is counting on the strengthening of the Weimar Triangle as a formula of significance both for cooperation within the EU and for Polish-French relations.

The President of Hungary on a visit to Poland

he Hungarian President János Áder with his wife have been to Poland on a two-day visit. Besides Warsaw, the Hungarian guests also paid visits to Kraków and Tarnów, where both Presidents and their wives took part in the celebrations of the Day of HungarianPolish Friendship. After the official greeting ceremony the two delegations sat down for talks and the Presidents participated in a press conference. Bronisław Komorowski and János Áder took part in the closing of the Poland-Hungary Economic Forum. Summing up the Forum, President Komorowski said that the already satisfactory economic cooperation of both countries could be even better. According to President Áder, trade relations do not reflect the traditional closeness between the two countries. Mr Áder referred to historical events connecting Poland and Hungary. He stressed that Poland had always been Hungary’s strategic partner, but in recent years it had grown more complicated. “Unfortunately, less Hungarian exports reach the Polish market than the Slovakian one, which has only 5 million consumers. We sell more in the Czech Republic than we do in Poland, which is four times as big,” said Mr Áder. The Polish President expressed his conviction that the common membership of the EU, enhanced by the cooperation within the Visegrád Group, is a special opportunity for the two friendly countries that want to cooperate with one another to build bridges, even though the two share no border. He also emphasised that the Visegrád Group yielded excellent results in many respects. ::

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Mr Komorowski emphasised that owing to far-reaching changes, today’s Poland is a country that can actively participate in solving numerous EU problems. He also said that it was Poland’s will to enter the euro area, but only after all the requirements have been met, and after the Eurozone itself is put in order. He added that decisions in this respect should be made in Poland after the presidential and parliamentary elections in 2015. President Hollande spoke of the genuine friendship between France and Poland, which was forged in battle. “It needs to be said that our countries are linked by a genuine friendship. We have a shared history. A friendship forged in battle is what connects us,” said Mr Hollande at the press conference in Paris after the meeting with Mr Komorowski. “Today our friendly relations are fostering economic growth and benefitting Europe,” declared the French Head of State. He added that French enterprises were investing in Poland and that he would like to see an even greater presence on the Polish market. ::

Prime Minister

The Prime Minister meets the President and State Governors of Nigeria

rime Minister Donald Tusk went on a visit to Nigeria, where he met President Goodluck Jonathan. Talks with the Nigerian President involved, among other subjects, strategic economic cooperation, regional policy, including the involvement in the conflict with Mali, and the issue of fighting terrorism, as well as climate issues. The Prime Minister also met several State Governors of Nigeria. Nigeria is a federal country and individual states enjoy some independence in setting their local policies. The Governors and representatives who talked with the President came from several Nigerian states known for their crude-oil and gas resources. An agreement was signed on cooperation between the Polish Information and Foreign Investment Agency and the Nigerian Investment Agency. According to the agreement, the Nigerian Agency is to support Polish enterprises in establishing economic cooperation – it will provide information on investment conditions and potential state aid. An agreement was also signed regarding cooperation between the Polish Ministry of the Economy and the Nigerian Ministry of Industry, Trade, and Investment. Within the framework of the agreement, Poland and Nigeria have undertaken to engage in annual consultations at ministerial level with regard to investment projects and the plans of enterprises. ::

A meeting of the Prime Ministers of Poland and Italy

rime Minister Donald Tusk has talked with Enrico Letta, the Prime Minister of Italy, who was in Poland. The meeting of the Prime Ministers of the two countries focussed on methods of counteracting the economic crisis, the preparations for the EU summit and the EU budget for 2014-2020. “We have arrived at a consensus as regards the tasks that await Italy and Poland in Europe,” said Prime Minister Tusk. “We have agreed on intensive cooperation, also bilateral, towards specific projects, ”added the Polish Head of Government. The talks also concerned stimulating employment among young people, and industrial policy. “European projects, the use of European tools to increase the number of jobs for young people in Europe and individually in our countries, are issues of paramount importance,” declared Donald Tusk. “We also talked about the need for Polish-Italian cooperation for well-thought-out European integration,” emphasised Mr Tusk. This concerned joint actions for a single market and an agreement regarding actions to stimulate economic growth in the EU. “The use of European tools to increase the number of jobs for young people in Europe is an issue of paramount importance.” ::

A visit by the President of the European Parliament

rime Minister Donald Tusk has met the President of the European Parliament Martin Schulz. “In Poland we are awaiting a quick compromise between European institutions, starting from the European Parliament, and ending with the European Council, on the EU budget for 2013 and 2014-2020,” said the Prime Minister. “Reaching a compromise in a reasonably short time is our common goal,” he added. Donald Tusk pointed out that he and Martin Schulz would act towards budgetary agreement in the days to follow. “We are going to have talks with our various partners,” emphasised the Prime Minister. Martin Schulz assured Donald Tusk that the European Parliament was ready to take up negotiations on the EU budget immediately. The President of the European Parliament said that the legal basis necessary to adopt the EU budget for 2014-2020 will be ready by 1 January 2014. ::

Polish-Czech intergovernmental consultations in Warsaw

he Prime Minister of the Czech Republic, along with his ministers has paid a one-day visit to Warsaw. Prime Minister Tusk told the press that some of the subjects brought up in the talks involved connecting the Polish S3 and the Czech R11 roads. “I am positive that this meeting will speed up the work so that both roads can meet as soon as possible,” said Donald Tusk. The Polish Prime Minister also spoke of his plans to open the Gdańsk-Prague railway connection. “We will be working towards a reasonably fast development of a road map for the joint gas market in the Visegrád Group,” announced Mr Tusk. He added that Poland and the Czech Republic planned to develop the gas interconnector linking both countries. “We want to make use of all possible opportunities in connection with the gas terminal in Poland and the gas connection in Austria,” he stressed. On 16 June, during the last meeting of the Polish Presidency of the Visegrád Group, a road map for the joint gas market in the Group will be signed. “Both sides are going to adopt join actions protecting the reputation of Polish and Czech products,” said Prime Minister Tusk. He added that global food quality rankings placed Polish and Czech food very high. “We have nothing to be ashamed of in this field,” he said. Prime Minister Tusk also announced common inspections and procedures regarding the safety of food products. He added that he wanted the Czech Republic to be a partner at this year’s Polagra Food fair, to be held in late September. “The Czech side would like to invest and participate in privatising the energy sector in Poland,” said Mr Tusk. ::

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Our Guest

Polish diplomacy has a lot to offer Jerzy Pomianowski, Under-Secretary of State for Non-European Policy and Democratization Agenda at the Ministry of Foreign Affairs, talks to “Polish Market.”

During the Polish presidency of the European Union Polish Foreign Minister Radosław Sikorski spoke about plans to establish a European Endowment for Democracy (EED). Poland has contributed EUR5 million for this purpose. And what is the situation now? How is the EED supposed to work for democracy promotion? The European Endowment for Democracy is a flagship success of the Polish EU presidency. It was soon after the collapse of the democratization process in Belarus in December 2010 that Minister Sikorski said clearly for the first time there was a political need to launch the EED. The brutally suppressed demonstrations after the presidential election in Belarus meant the EU lost hope for a quick change in the country, our very important eastern neighbour. The first Arab revolution – in Tunisia – broke out only several weeks after the EED initiative had been put forward. The idea to establish the EED and criticism of European democracy promotion initiatives – criticism that Europe reacts too slowly and does not have a sufficient set of tools to support democratization processes, neither in its own backyard nor on a global scale - met with a very favourable response and gained much political support and popularity. A very real expectation emerged that one should create an instrument enabling a more effective response to such situations and meeting the need that the traditional financial instruments available to the EU were unable to address. A favourable circumstance was that Poland held the EU presidency and consequently was able to influence the character of discussion, its pace and subject because we often brought this topic to the agenda of talks. The process began of winning over our partners who were not immediately convinced about the idea. This was especially true of the European Commission. Thanks to the effort, at the end of the Polish presidency, we managed to agree on a joint declaration by all the pm

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countries and the decision was taken at the end of 2011 to launch the EED. The process of agreeing on the details concerning the shape of the institution lasted throughout 2012. It was given the form of a private foundation operating under Belgian law and based in Brussels, but funded from two sources – the European Commission and the own contributions by member states. As a private foundation, the institution is to some degree independent from EU structures, which means it does not have to fully comply with the rationale for and the rules of money spending by the EU. On the other hand, it is managed and has been set up as a result of a political process, which means it is managed in keeping with the EU’s ways. This duality gives the foundation some capabilities that other EU institutions do not have. The EED’s operating costs will be covered from European funds while its programmes will be financed from the member states’ own contributions. The money is subject to less procedural restrictions than the EU funds are. The latter are transferred too slowly. And this is what is new about the idea – to be an EU mechanism on the one hand and a mechanism that is quicker, independent and less bureaucratic on the other. What instruments does the EED have to promote democracy? The EED will be providing grants wherever they are needed. The foundation will resemble a Seed Money Programme in business. If a highly dynamic social movement emerges, but initially has problems with taking an official form, the foundation will support its initial consolidation. When the institution starts to operate effectively it will have the right to apply for EU funding, which is more difficult to access but is bigger. The EED will probably distribute its first grants in late August and early September. So far around EUR19 million, including the EUR5 million provided by Poland, has been collected as the member pm

states’ contributions. This shows that Poland has contributed significantly to this undertaking. It is also important that the money does not come from the national budget but from Counterpart Funds (CPF), that is the remaining part of the money Poland itself once received as aid. The money can only be spent on special programmes; it cannot be spend to finance current needs. The operation of the EED is an excellent example of such special programmes and of applying the principle of international solidarity. Is there a need these days to speak about democracy? One of the architects of American capitalism said that a business that does not grow is a business in decline. The situation is similar with democracy – if we do not take care of it, if it does not develop, it may become endangered and face destruction. Democracy guarantees neither prosperity nor an effective state. Democracy is merely the tool which enables us to enjoy the benefits of an effective state. pm

At the Wrocław Global Forum you will be taking part in the panel discussion on “Growing Democracy: The Future of US-European Cooperation.” And what is the future of Polish-American relations? Polish diplomacy has a lot to offer and this is visible at every turn. Poland and the United States are conducting a formal political dialogue - US-Poland Strategic Dialogue on Democracy. It has a form of regular political consultations where we discuss problems and weaknesses in supporting democracy promotion processes in various parts of the world as seen from the Polish and US perspective. We do not limit ourselves to Poland’s neighbours, but also talk about many other locations. For the Americans a partner that contributes to discussion the experience of their own successful transition is very valuable. :: pm

Our Guest

Renevables- a better energy mix Jerzy Pietrewicz Deputy Minister of Economy, Secretary of State at the Ministry of Economy

he development of renewable energy sources is one of the most important directions of Polish Energy Policy until 2030. It is intended to help increase diversification of supply, implement the energy-climate package, develop competitive markets and boost innovation and human capital. Furthermore, it should be remembered that the widespread promotion of distributed generation that uses mainly regional raw materials contributes to increasing energy security at the local level and to reducing transmission losses. Thanks to renevable energy sourses it will be possible to better balance Poland’s energy resources. Renewable energy sources represent an alternative to traditional fossil fuels, and can be considered inexhaustible, since they continue to renew themselves naturally. The use of renewable energy is also instrumental in curbing the environmental footprint of the energy industry, mainly owing to the reduction of greenhouse gas emissions.

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According to EU guidelines, unconventional sources should make up to 15 % of the future final energy mix. Poland has already largely fulfilled these commitments. But developing renewable energy sources is more than about meeting the EU commitments; it is in the best interest of Poland’s economy. Therefore, it is extremely important to prepare appropriate regulations. The primary aim of the law on renewable energy sources is to create a clear and effective support system for producers of green energy. We have proposed a number of innovative solutions with regard to micro- and small energy generation. We want to encourage those planning to invest in new power capacities based on distributed generation and resources available locally. I hope that individual energy consumers will also take advantage of such opportunities and will decide to put up installations for their own use, thus becoming both energy producers and consumers, that is prosumers.

The law drafted by the Ministry of Economy considers deregulatory measures, too, and envisages a number of innovative proposals aimed to reduce the burden for enterprises and to facilitate economic activity. The new regulations provide for the possibility to sell the surplus of energy produced in micro-units at a guaranteed price and with no need to set up a business for this purpose. Renewable energy means also new jobs, something that will have a positive impact on the development of regional communities, that will stimulate entrepreneurship and boost GDP. At the local level can we produce not only energy, but also innovative appliances for the power sector. Polish businesses already offer the necessary items of quality, such as biomass boilers, solar collectors for hot water production, automation devices, and a variety of elements for wind turbines. Business opportunities also arise for the companies operating in the construction industry and for the banking institutions that finance renevable energy installations. It is estimated that 66 thousand people will have been employed in the renewable energy sector by 2020. Moreover, thanks to the large domestic market, we can be more attractive to foreign customers. Poland harbours opportunities in respect of production of renewable energy installations, but also as regards research and development. Therefore, the new law on renewable energy sources is expected to contribute to strengthening international cooperation, exchange of experience and research results. This, in turn, will help create better conditions for the development of domestic renewable energy. The draft law on renewable energy has already been addressed by the Committee for European Affairs, and is being discussed by the Committee of the Council of Ministers. We hope that the legislative process will now speed up and Poland’s economy will embark on a new development drive. ::

200

DIAMONDS EDITION

POLISH MARKET

BEST COVERS POLISH MARKET, ISSUED IN THE YEARS 1996-2013 Published since 1996, Polish Market is a prestigious, English-language economics magazine. It is committed to promoting the Polish economy, business, and regions, and also Polish science and culture. Addressed mainly to foreign contractors and investors, Polish Market is a reliable and comprehensive source of information about the Polish economy. The magazine is distributed both across Poland and abroad. Its readership includes diplomats and politicians, businessmen, scientists, and people involved in broad culture from all around the world. Over the seventeen years of its existence, it has rightfully earned the title of a true Ambassador of Poland and the Polish economy.

POLISH MARKET

EDITION

1996

2013

POLISH MARKET

SPECIAL EDITIONS

200 EDITION POLISH MARKET Powiedzieli o nas z okazji 15- lecia “Polish Market “ Said about us on the occasion of the 15th anniversary of “Polish Market”

Zawdzięczamy Państwu nie tylko pomysł i wieloletnie prowadzenie konkursu Pereł Polskiej Gospodarki, ale także wielką pracę, jaką wykonują Państwo dla promocji Polski. „Polish Market” to kompendium wiedzy o naszym kraju, o możliwościach gospodarki, o bogactwie naszej kultury. Mają Państwo znaczący udział w tym, że wizerunek Polski tak bardzo zyskał na atrakcyjności. Nasz kraj przyciąga uwagę, pozytywnie zaskakuje, coraz bardziej liczy się w świecie. Cieszę się z tego razem z Państwem. Życzę Państwu satysfakcji z naszych wspólnych sukcesów. The “Polish Market” monthly is currently celebrating its 15th anniversary. We not only owe to you the idea for and multiannual running of the Pearls of the Polish Economy ranking, but also the tremendous work you perform for the promotion of Poland. “Polish Market” is a compendium of knowledge about our country, about the potential of the economy, the wealth of our culture. You have played a significant part in the fact that the image of Poland has become so much more attractive. Our country attracts attention, pleasantly surprises, and matters more and more in the world. I am as delighted with this as you are. I wish to all of you gathered here the satisfaction from our mutual successes and once again give you my best regards. Bronisław Komorowski, Prezydent Rzeczypospolitej Polskiej / President of the Republic of Poland

Wszystkie egzemplarze “Polish Market” są bardzo rozsądnie dedykowane właściwym osobom. Dlatego Firma “Polish Market” jest powszechnie znana wśród ludzi którzy decydują o losie Europy. 15 lat to odległość czasowa, o której warto dziś trochę pomyśleć. 15 lat temu wspólnie marzyliśmy o tym, byśmy mogli wysłuchać na stojąco „Ody do Radości” Beethovena – tak jak dzisiaj jej wysłuchaliśmy. To było na 2 lata przed rozpoczęciem naszych negocjacji członkowskich, a już wtedy “Polish Market” promował polską gospodarkę. Bo ta zależność tego wszystkiego, co się dobrego dzieje w Polsce od stanu polskiej gospodarki była dla tej redakcji oczywista. Dzięki temu można było promować także polską naukę, a może przede wszystkim polską kulturę! Zapominamy dziś czasem, że choć jesteśmy w kryzysie - mniejszym, większym, odnosimy sukcesy – mniejsze, większe, to tak naprawdę za 50, 100 lat przetrwa przede wszystkim to, co wytwarzamy w dziedzinie polskiej kultury. Dlatego składam dziś wielkie podziękowania redakcji “Polish Market”, który w oparciu o promocję polskiej gospodarki promuje polską kulturę. Dzisiaj jesteśmy przewodnikami w Unii Europejskiej. Dzisiaj jesteśmy w NATO. Dzisiaj Polska jako jeden z niewielu krajów w Europie oparła się kryzysowi. Mam wielki zaszczyt reprezentować nie tylko Unię, ale także wewnątrz Unii - Polskę. Firma Polska ma dziś ogromny wpływ na powodzenie europejskie. A z Polski do UE wieje dobry, orzeźwiający wiatr. Jedną z firm, które ten dobry wiatr w światowy obieg wprowadzają jest na pewno “Polish Market”! All copies of “Polish Market” are very shrewdly aimed at the right people. This is why “Polish Market” is widely known among those who make decisions concerning the future of Europe. 15 years is a time span that we should have a look at today. 15 years ago we dreamt together of being able to listen to Beethoven’s “Ode to Joy” standing up, just as we have just listened to it today. It was 2 years before our membership negotiations began, and “Polish Market” had already been promoting the Polish economy. It was because the correlation between all that’s good that happens in Poland and the state of the Polish economy was obvious to this editorial staff. Thanks to this it was possible to promote Polish science, or maybe, above all, Polish culture! Nowadays, we tend to forget at times, that although we are in crisis - smaller or bigger, and we achieve successes - smaller or bigger, in fact in 50 or 100 years the thing that will prevail will be mainly what we produce in the domain of Polish culture. Therefore, I would like to express my utmost gratitude to the editorial staff of “Polish Market” who, on the basis of promoting the Polish economy, promotes Polish culture. Today we are enjoying our Presidency of the European Union. Today we are a member of NATO. Today Poland is one of a few countries that have resisted the crisis. I have a great honour to represent not only the EU but also Poland within it. Polish companies are now important players determining European wellbeing, and there is a good, refreshing wind blowing from Poland towards the EU. One of the companies that directs that wind towards international circulation is certainly “Polish Market.” prof. Jerzy Buzek, Przewodniczący Parlamentu Europejskiego w latach 2009-2012 podczas Gali “Polish Market” President of the European Parliament from 2009 to 2012, at the “Polish Market” Gala

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200 EDITION POLISH MARKET Życzenia dla “Polish Market” z okazji 200 wydania. Wishes to “Polish Market” on the 200th issue Szanowna Pani Krystyna Woźniak-Trzosek Prezes Zarządu, Redaktor Naczelna “Polish Market” Z wielką satysfakcją otrzymałem informację o dwusetnym, jubileuszowym wydaniu miesięcznika „Polish Market”. To piękne i ważne wydarzenie. Całemu zespołowi miesięcznika i wszystkim współpracownikom składam serdeczne gratulacje. Państwa sukces cieszy mnie tym bardziej, że jeszcze jako Prezydent RP z satysfakcją witałem inaugurację Waszego wydawnictwa, pierwszego angielskojęzycznego periodyku ekonomicznego w Polsce. Było to w lipcu 1996 r., na początku mojej Prezydentury. Uważałem, że Wasza inicjatywa ma szansę się sprawdzić i odnieść sukces rynkowy, jak również istotnie wspierać strategiczne cele naszego kraju. Ostatnie siedemnaście lat potwierdziło moje ówczesne nadzieje. „Polish Market” z sukcesem zaistniała na polskim i międzynarodowym rynku, a Polska przez te lata ogromnie się zmieniła. W 1999 r. uzyskaliśmy członkostwo w NATO, w 2004 r. w Unii Europejskiej. Dokonaliśmy wielkich przeobrażeń polskiej gospodarki, przyciągając rekordowe ilości inwestycji zagranicznych. Zrealizowane zostało szereg ważnych reform strukturalnych, w tym szczególnie istotna reforma samorządowa. Z sukcesem wykorzystujemy środki z Unii Europejskiej, modernizując infrastrukturę, dbając o środowisko, wspierając cele społeczne. Miesięcznik „Polish Market” towarzyszy nam przez ten cały czas. Był i pozostaje ważnym źródłem informacji ekonomicznych. Jest ważnym narzędziem promocji Polski, polskiej gospodarki i jej produktów na rynkach zagranicznych. Sprzyja budowie marki narodowej „Made in Poland”, popularyzuje nasz kraj i jego wyroby, podnosi prestiż Polski i poprawia jej wizerunek międzynarodowy. Jest to szczególnie ważne w ramach jednolitego rynku Unii Europejskiej i coraz bardziej globalizującego się świata. „Polish Market” to obecnie dobra i sprawdzona marka. Poszukując informacji dla moich zagranicznych gości i partnerów, wielokrotnie kierowałem ich i kieruję w stronę Waszego magazynu. Dlatego cieszę się bardzo, mogąc dzisiaj życzyć całej redakcji i wszystkim współpracownikom kolejnych lat udanej działalność, kolejnych setek ciekawych i potrzebnych wydań.

Ms Krystyna Woźniak-Trzosek President of the Board, Editor-in-Chief of “Polish Market” Dear Ms Woźniak-Trzosek, It is with great satisfaction that I have received the news about the publication of the 200th issue of “Polish Market.” It is a great and important occasion. I wish to offer my sincere congratulations to the whole editorial staff and all collaborators. I am especially pleased with your success because, at the time when I was president of Poland, I welcomed with satisfaction the inauguration of your magazine, the first English-langue economic periodical in Poland. It was in July 1996, at the start of my presidency. I believed that your initiative had a chance to work and achieve a market success and to significantly support our country’s strategic goals. The past 17 years have shown that my hopes were well-founded. “Polish Market” has become successfully established on the Polish and international market. And Poland has changed enormously over these years. In 1999 we became members of NATO and in 2004 of the European Union. We have made big changes to the Polish economy, attracting a record amount of foreign investment. Many important structural reforms were carried out, including the local government reform, which was of special significance. We have been successfully using EU funding to modernize our infrastructure, take care of the environment and support social goals. The “Polish Market” monthly has been with us throughout this period. It has been an important source of economic information. It is an important tool in promoting Poland, the Polish economy and its products on foreign markets. It contributes to building our national “Made in Poland” brand, spreading information about Poland and its products, raising Poland’s prestige and improving its image. This is particularly important on the single European Union market and in the increasingly globalized world. “Polish Market” is a brand which has proven its worth. When looking for information for my foreign guests and partners, I have frequently referred them to your magazine. This is why I am very happy that I have an opportunity today to wish the whole editorial staff and all collaborators many more years of successful activity and success in publishing further hundreds of interesting and needed issues. Aleksander Kwaśniewski

Prezydent RP w latach 1995 - 2005 / President of the Republic of Poland in the years 1995-2005

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200 EDITION POLISH MARKET Jest mi niezmiernie miło przekazać całej Redakcji magazynu ekonomicznego “Polish Market” gratulacje i wyrazy uznania z okazji jubileuszowego, dwusetnego wydania pisma. Już od 17 lat “Polish Market” popularyzuje na świecie Polskę – jej regiony, naukę i kulturę. Miesięcznik ukazuje naszą gospodarkę jako dynamiczną i opartą na stabilnych podstawach, coraz bardziej innowacyjną i atrakcyjną dla zagranicznych partnerów. Wydania “Polish Market” wielokrotnie wspierały działalność promocyjną Ministerstwa Gospodarki. Magazyn towarzyszył polskim misjom gospodarczym oraz oficjalnym ekspozycjom na targach EXPO. Doceniamy również współpracę redaktorów z Biurami Radców Handlowych i Wydziałów Promocji Handlu i Inwestycji. “Polish Market” to coś więcej niż pismo. To marka, której działania na rzecz wsparcia polskich przedsiębiorców wykraczają znacznie poza papier i druk. Od 2003 r. magazyn wspólnie z Instytutem Nauk Ekonomicznych Polskiej Akademii Nauk prowadzi badania nad kondycją rodzimych firm. Ich wyniki poznajemy w corocznym rankingu Pereł Polskiej Gospodarki. Zaszczytnym tytułem Perły Polskiej Gospodarki nagradzane są najbardziej efektywne przedsiębiorstwa – koła zamachowe polskiej gospodarki. Co roku w zestawieniu “Polish Market” plasują się firmy, wyróżniające się na rynku pod względem dynamiki, płynności finansowej, rentowności, sprzedaży oraz wydajności pracy. Jeszcze raz wielkie podziękowania składam na ręce Pani Prezes Krystyny Woźniak-Trzosek za ogromne zaangażowanie w budowę i rozwój “Polish Market”, pisma, które reprezentuje nasz kraj i wspiera działania rządu na rzecz promocji Polski. It is my pleasure to congratulate and give my regards to the whole editorial staff of “Polish Market” magazine on the occasion of its jubilee two-hundredth issue. “Polish Market” has promoted Poland, its regions, science and culture in the world, for 17 years. The magazine presents our economy as dynamic, firm, increasingly innovative and attractive to foreign partners. The issues of “Polish Market” have many times supported the promotional activities of the Ministry of the Economy. The magazine accompanied Polish economic missions and official exhibitions at the EXPO Fair. We also appreciate the cooperation of the editors with the Offices of the Commercial Counsellors and Trade and Investment Promotion Sections. “Polish Market” is more than just a magazine. It is a brand whose efforts in supporting Polish business go far beyond paper and printing. Since 2003, together with the Institute of Economic Sciences at the Polish Academy of Sciences, the magazine has conducted research on the condition of Polish companies. The findings are made known in the annual Pearls of the Polish Economy ranking. The prestigious Pearl of the Polish Economy title is awarded to the most efficient companies which are the engine of the Polish economy. Every year, the “Polish Market” ranking lists companies that stand out on the market in terms of their dynamics, financial liquidity, profitability, sales and workforce productivity. My huge gratitude goes to President Krystyna Woźniak-Trzosek for her major commitment to establishing and developing the “Polish Market” magazine, a magazine that represents our country and supports the Government in promoting Poland. Janusz Piechociński, Wicepremier, Minister Gospodarki Deputy Prime Minister and Minister of the Economy Najlepszą polską marką jest kultura. Wraz z sukcesami, jakie nasi artyści odnoszą za granicą, stała się ona synonimem najwyższej jakości i cieszy się szacunkiem na całym świecie. Dzięki nim Polska jest dziś kreatywnym zagłębiem Europy oraz ważnym ogniwem międzynarodowego obiegu idei i wartości. Cieszę się, iż promocję naszej kultury konsekwentnie wspiera „Polish Market”. Co szczególnie ważne, o projektach i osiągnięciach rodzimych twórców dowiadują się nie tylko polscy czytelnicy, ale też m.in. pracownicy Parlamentu Europejskiego i zagranicznych ambasad umiejscowionych w Polsce. W ten sposób do tego opiniotwórczego grona od blisko 17 lat dociera pozytywny wizerunek naszego kraju i jego dziedzictwa. Z okazji dwusetnej edycji magazynu serdecznie życzę Państwu kolejnych udanych wydań. Culture is the best part of Brand Poland. With the international successes achieved by our artists, it has become synonymous with top quality and enjoys respect across the world. Thanks to these successes, Poland is now a creative part of Europe and an important link in the international flow of ideas and values. I am glad that “Polish Market” has consistently supported the promotion of our culture. What is especially important is that thanks to “Polish Market” it is not only Polish readers but also the staff of the European Parliament, foreign embassies in Poland and other foreigners that have an opportunity to learn about the projects and achievements of Polish artists. This way a positive image of our country and its heritage has reached this opinionforming community for almost 17 years. On the occasion of the 200th edition of the magazine I sincerely wish you success in publishing more of its successful issues. Bogdan Zdrojewski Minister Kultury i Dziedzictwa Narodowego / Minister of Culture and National Heritage 5 - 6/2013 :: polish market :: 17

200 EDITION POLISH MARKET Służba Polsce Najważniejszym celem władzy publicznej jest działanie na rzecz wzrostu zamożności i dobrobytu społeczeństwa. Nie da się zrealizować tego zadania bez wzrostu gospodarczego, rozwoju przedsiębiorczości i tworzenia nowych miejsc pracy. W dzisiejszych czasach globalnej gospodarki, polskie firmy więc, by mogły podołać stawianym przed nim wyzwaniom, muszą wzmacniać swoją pozycję konkurencyjną nie tylko na rynku krajowym czy nawet europejskim, lecz już na całym świecie. Jest to ważne zawsze, nawet w czasach koniunktury, ale szczególnie w okresach dekoniunktury. By tak się stało, władza publiczna w Polsce powinna promować wśród przedsiębiorców naszego kraju oraz państw trzecich zainteresowanie nowymi kierunkami współpracy gospodarczej, a zarazem, poza budowaniem instrumentów wsparcia, tworzyć także dobry klimat polityczny i dyplomatyczny. Tak się już dzieje i to z dobrymi efektami. Nie tylko jednak władza ma w tym zakresie swoją rolę do odegrania. Także organizacje pozarządowe, w tym skupiające ludzi biznesu, a także media. Należy promować nie tylko nasze osiągnięcia w gospodarce, ale również w kulturze, sztuce, nauce, czy sporcie. To wszystko bowiem później składa się na pozytywny wizerunek Polski, który pomaga w nawiązywaniu oraz rozwijaniu gospodarczych więzi bilateralnych. “Polish Market” funkcjonuje na niwie informacji o naszym kraju oraz promocji Polski w świecie już od lat. Jest też jednym z ważniejszych instrumentów, który może służyć do tego celu. Zresztą nie inaczej Wydawcy działali do tej pory. Dowodem sukcesu oraz realizacji ważnej misji w służbie Polsce jest dwusetne wydanie magazynu. Z tej okazji składam wielkie gratulacje i szczere życzenia dalszego, wspaniałego rozwoju.

In the service of Poland The most important aim of the public authorities is to promote the society’s well-being and prosperity. This task, however, cannot be accomplished without ensuring economic growth, business development and job creation. Presently, in the era of globalization, Polish companies, in order to be able to cope with the challenges they are faced with, must strengthen their competitive advantage not only on the domestic or even European market, but also globally. It is always important, even in times of prosperity, but especially in times of economic downturn. For this to happen Polish public authorities should encourage domestic and foreign entrepreneurs to explore new directions of economic cooperation, and in addition to building support instruments, create a favorable political and diplomatic climate. This is already happening and the results are good. However, it is not only the government that has a role to play here, but non-governmental organizations, including those gathering business people, and the media do, too. Polish achievements should be promoted not only in the economy, but also in culture, art, science, and sport. It is because all this makes for the positive image of Poland, which in turn helps build and develop bilateral economic ties. “Polish Market” has for years been providing information about our country and promoting Poland in the world. It is also one of the most important instruments that may be used to serve this purpose. And that is how the magazine has acted so far. Its bicentennial edition is the measure of success in fulfillment of such an important mission in the service of Poland. On this occasion I would like to express my congratulations and sincere wishes for further successful development. Adam Szejnfeld, Poseł na Sejm RP, były Wiceminister Gospodarki (2007-2009) Member of Parliament, former Deputy Minister of Economy (2007-2009)

Z okazji jubileuszowego dwusetnego wydania „Polish Market”, składam serdeczne gratulacje Redakcji, współpracownikom i sympatykom tego pisma. Proszę przyjąć wyrazy uznania za wszystko, co czyni „Polish Market” dla umacniania atrakcyjnego wizerunku Polski na arenie międzynarodowej, a zwłaszcza dla promocji naszych zdolności gospodarczych i rozwoju współpracy z zagranicznymi partnerami. Już od szesnastu lat „Polish Market” jest źródłem kompetentnej informacji o tym, co aktualnie dzieje się w polskiej gospodarce i w sferze finansów. Cieszę się, że czytelnicy z 48 państw– politycy, biznesmeni, ale także zwykli ludzie zainteresowani przemianami w naszym kraju–mogą poznać dzięki Państwu współczesne oblicze Polski. Przybliżają Państwo polską kulturęi tradycję, walory turystyczne, atuty poszczególnych regionów. Pomagają przyswoić przepisy polskiego prawa, wspierają ekspercką radą. „Polish Market” jest organizatorem cennego rankingu „Perły Polskiej Gospodarki”, który służy prezentacji naszych osiągnięć ekonomicznych, a zarazem informuje o kondycji największych polskich przedsiębiorstw. Państwa wytrwała praca przynosi efekty. Wiedza zaczerpnięta z „Polish Market” bywa często zachętą do inwestowania w naszym kraju, do nawiązywania kontaktów gospodarczych i wspólnych przedsięwzięć z polskimi partnerami. Najlepszym świadectwem Państwa dokonań jest prestiżowa nagroda „Ambasador Polskiej Gospodarki”, przyznana przez Ministerstwo Spraw Zagranicznych.

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200 EDITION POLISH MARKET

Polska staje się coraz ważniejszym uczestnikiem europejskiej i światowej polityki oraz unijnego i globalnego rynku. Sztuką jest odnosić sukcesy, ale warto również wyraziście je promować. Wizerunek kraju należy do sfery „soft power”, która w dzisiejszym świecie nabiera coraz większego znaczenia. Jest również Państwa zasługą, że potrafimy już zaskarbić Polsce uwagę i sympatię zagranicznych partnerów, akcentować polski potencjał gospodarczy, możliwości współpracy przemieniać w realne kontrakty. Magazynowi „Polish Market” należą się za to serdeczne podziękowania. Życzę Redakcji powodzenia w pełnionej misji, kolejnych wartościowych inicjatyw, a Czytelnikom – interesującej lektury.

On the occasion of the 200th edition of “Polish Market,” I offer my sincere congratulations to the Editorial Board, collaborators and supporters of the magazine. Please accept my words of recognition for everything that “Polish Market” does to strengthen an attractive image of Poland in the international arena, and especially to promote our economic potential and the development of cooperation with foreign partners. For 16 years now “Polish Market” has been a source of reliable information on what is happening in the sphere of Polish economy and finance. I am glad that readers from 48 countries – politicians, business people and the ordinary people interested in changes taking place in our country – have an opportunity to get familiar with the contemporary image of Poland. You tell them about Polish culture and tradition, tourist assets and advantages of individual regions. You help them to learn about Polish regulations and provide them with experts’ advice. “Polish Market” runs the valuable Pearls of the Polish Economy ranking, which serves to show our economic successes and provides information about the condition of the biggest Polish companies. Your relentless work produces results. Information derived from “Polish Market” often provides encouragement to invest in our country, establish business relations and pursue joint undertakings with Polish partners. The best proof of what you do is the prestigious Ambassador for the Polish Economy award granted to you by the Ministry of Foreign Affairs. Poland is becoming an increasingly important participant of the European and global policy and the European Union and global markets. Being successful is a feat, but it is also worth promoting the successes. A country’s image is its “soft power,” which in today’s world is increasingly gaining in importance. It is also thanks to you that we are able now to win for Poland the attention and friendliness of foreign partners, emphasize Poland’s economic potential and translate our cooperation potential into real contracts. “Polish Market” deserves sincere thanks for that. I wish the Editorial Board success in their mission and further valuable initiatives. And I wish the readers a pleasant read.

Sławomir Rybicki, Sekretarz Stanu w Kancelarii Prezydenta RP Bronisława Komorowskiego Secretary of State in President Bronisław Komorowski`s Office

“Polish Market” jest czasopismem znanym i od wielu lat obecnym w działaniach promocyjnych Polski. W każdej ambasadzie widoczne są egzemplarze magazynu. Jest to dowód na to, że takie narzędzie jest nie tylko potrzebne, ale i sprawnie działające. Życzę Państwu kolejnych 200 wydań, równie dobrych i równie skutecznie dystrybuowanych. “Polish Market” is a well-know magazine, which has contributed for years to activities designed to promote Poland. Copies of the magazine can be seen at every Polish embassy, which proves that this instrument is not only needed but also works effectively. I wish you success in publishing another 200 editions, ones equally good and effectively distributed. Jerzy Pomianowski, Podsekretarz Stanu ds. polityki pozaeuropejskiej i agendy demokratyzacyjnej w Ministerstwie Spraw Zagranicznych Under-Secretary of State for non-European Policy and Democratization Agenda at the Ministry of Foreign Affairs

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200 EDITION POLISH MARKET Z okazji dwusetnego numeru “Polish Market”, składam wydawnictwu serdeczne gratulacje i jednocześnie dziękuję za 17 lat współpracy w ramach Business Centre Club. Tak, od samego powstania, od 1996 roku, ten pierwszy polski anglojęzyczny magazyn ekonomiczny, na czele z Panią Prezes Krystyną Woźniak-Trzosek, jest członkiem BCC. Od początku wspiera kolegów klubowych i uczestniczy w akcjach BCC promujących na całym świecie osiągnięcia polskiej gospodarki. “Polish Market” od lat jest partnerem medialnym gal BCC, konkursów i przedsięwzięć na rzecz rozwoju przedsiębiorczości w naszym kraju. Jest również laureatem klubowych nagród: Medalu Europejskiego oraz tytułu Ambasadora Polskiej Gospodarki. W ciągu 17 lat udało nam się wspólnie stworzyć w klubie grupę najlepszych i najbardziej skutecznych przedsiębiorców, z którymi konsultowali się dotychczas wszyscy prezydenci, premierzy i ministrowie Rzeczpospolitej Polskiej. BCC stał się także organizacją międzynarodową, utrzymującą kontakty z instytucjami Unii Europejskiej, USA, Rosji i Kanady. Honorowymi członkami klubu są m.in. Tony Blair, George Bush i José Manuel Barroso. M.in. dzięki opiniotwórczej roli BCC – w której poczesną rolę pełni “Polish Market” - klub został uhonorowany w siedzibie Parlamentu Europejskiego w Brukseli nagrodą Europejskiego Komitetu Ekonomiczno-Społecznego za znaczący wkład w krzewienie integracji i tożsamości europejskiej. Jeszcze raz dziękuję, gratuluję jubileuszu i życzę następnych doskonałych dwustu wydań “Polish Market”. On the 200th issue of “Polish Market”, please accept my sincere congratulations and thanks for 17 years of cooperation within the Business Centre Club. From its very foundation, that is from 1996, this first Polish economic magazine published in the English language, led by President Krystyna Woźniak-Trzosek, has been a member of the BCC. From the beginning the magazine has supported other members of the club and has participated in the BCC campaigns promoting the achievements of the Polish economy. “Polish Market” has been a long-standing partner of BCC galas, contests and enterprises for the development of entrepreneurship in our country. The magazine has also received such club awards as the European Medal and the title of Ambassador of the Polish Economy. Within the last 17 years we have managed to gather in the club a group of the best and most effective entrepreneurs who have been consultants to all the Presidents, Prime Ministers and Ministers of the Republic of Poland. The BCC has also become an international organisation maintaining contacts with institutions of the European Union, the USA, Russia and Canada. Among the honorary members of the club are Tony Blair, George W. Bush and José Manuel Barroso. Due to the opinion-forming role of the BCC, with the essential contribution from “Polish Market”, the club was distinguished in the headquarters of the European Parliament in Brussels with the award of the European Economic and Social Committee for the substantial involvement in promoting European integration and identity. Again I would like to express my gratitude and congratulate “Polish Market” on its anniversary and wish you another two hundred issues of the magazine. Marek Goliszewski, Prezes BCC / President of BCC

Jest wiele powodów dla których odczuwam satysfakcję, że mogę dziś jako wieloletni patron rankingu Pereł Polskiej Gospodarki, a także Pereł Honorowych, napisać kilka słów z okazji jubileuszu magazynu “Polish Market”. Coroczna Gala Pereł Polskiej Gospodarki podsumowuje kolejny rok działalności znakomitego miesięcznika “Polish Market”, który wkroczył w drugą „piętnastkę” swojego życia. To miesięcznik, który – jak myślę – odgrywa znaczącą rolę w naszym życiu gospodarczym i w promocji naszej gospodarki za granicą. Wszystkim imponuje jego rzetelność, atrakcyjność, niebanalna refleksja, znakomita szata graficzna. Dlatego bardzo się cieszę, mogąc życzyć redakcji i jej współpracownikom kolejnych lat udanej działalności, setek ciekawych i potrzebnych wydań. There are many reasons for which I am satisfied that I can share a few words as the patron of the Pearls of the Polish Economy ranking, as well as the Honorary Pearls award, on the occasion of “Polish Market’s” jubilee. The annual Gala concludes another year of activities of the excellent “Polish Market” monthly, which has entered its second 15 years of existence. This is a magazine which, in my opinion, plays a significant role in our economic life and in the promotion of our economy abroad. What is impressive in everyone’s eyes, is its reliability, attractiveness, thoughtful conclusions and magnificent layout. This is why I am very happy that I have an opportunity to wish the editorial staff and collaborators many more years of successful activity and publishing further hundreds of interesting and needed issues. prof. Michał Kleiber, Prezes Polskiej Akademii Nauk / President of the Polish Academy of Sciences

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200 EDITION POLISH MARKET Szanowni Państwo, W imieniu swoim oraz pracowników Polskiej Organizacji Turystycznej składam gratulacje dla całej redakcji z okazji dwusetnej edycji “Polish Market”. Jest mi niezmiernie miło, że mogę razem z Państwem cieszyć się tym jubileuszem i sukcesem wydawniczym. “Polish Market” to pozycja na rynku wydawniczym unikatowa, poruszająca ważkie sprawy związane z gospodarką i turystyką - postrzeganą, jako jedną z jej ważnych gałęzi. Dzięki wnikliwej analizie procesów związanych z rozwojem polskiej gospodarki, magazyn zyskał nie tylko grono stałych czytelników, ale także rangę nieocenionego źródła wiedzy z zakresu gospodarczo-finansowego. Współpraca z Państwem jest dla Polskiej Organizacji Turystycznej nie tylko możliwością prezentowania zmian, jakie dokonują się w polskiej turystyce na łamach prestiżowego pisma, ale także dzięki jego profilowi, ulokowania turystyki w czołówce dziedzin ważnych dla rozwoju gospodarczego kraju. Ostatnie lata, to dla Polski czas przemian, które objęły wszystkie obszary, w tym turystykę. Rozwojowi tego sektora sprzyja także sytuacja na świecie i zachowania konsumentów. Nic dziwnego, że wiele państw, upatruje dla siebie szansę na wzrost wpływów z gospodarki turystycznej i aktywizację gospodarki kraju. Coraz więcej krajów intensyfikuje działania promocyjne, żeby zwiększyć swoją konkurencyjność na rynku turystycznym. Polska Organizacja Turystyczna od 10 lat prowadzi działania promocyjne, które pokazują Polskę, jako kraj intrygujący, oryginalny i inspirujący, mający unikatowe w skali Europy walory turystyczne, gościnny i stawiający na nowoczesne i kreatywne rozwiązania. Jestem przekonany, że bez wsparcia takich podmiotów jak “Polish Market”, udostępniający swoje łamy dla polskiej turystyki, nasze działania nie byłyby tak efektywne. Wizerunek Polski zmienia się cały czas, dlatego musi być cały czas wzmacniany pozytywnymi reklamowymi komunikatami, o tym, że Polska jest krajem tętniącym życiem i nowoczesnym a jego mieszkańcy są spontaniczni, gościnni i otwarci. Obecnie prowadzimy kampanie w Niemczech, Wielkiej Brytanii, Francji, Belgii, Holandii, Danii i Szwecji a także na rynku włoskim, irlandzkim, hiszpańskim, ukraińskim, rosyjskim i czeskim, chińskim, indyjskim i japońskim. Zmieniamy obraz naszego kraju za granicą, przełamujemy stereotypy na temat Polski i Polaków. Dlatego liczę, że dalsza współpraca z “Polish Market” będzie tak owocna jak do tej pory a kolejne edycje dotrą do jeszcze większej liczby odbiorców, czego serdecznie Państwu życzę.

Dear Editors, On behalf of myself and the employees of the Polish Tourist Organisation I would like to congratulate the whole editorial staff on the 200th edition of “Polish Market”. I am delighted to have the opportunity to celebrate this jubilee, and publishing success, together with you. “Polish Market” is a unique publication on the market; it brings up important issues connected with the economy and tourism, a function which is seen as one of its important fields. Owing to its thorough analysis of the processes connected with the development of the Polish economy, this magazine has won a body of loyal readers, but also the rank of an invaluable source of knowledge in the field of economics and finance. For the Polish Tourist Organisation, cooperation with you is not only an opportunity to present the changes that are taking place in Polish tourism on the pages of a prestigious magazine, but also, thanks to its profile, a chance to place tourism in the lead of the fields that are important for the economic development of the country. The recent years have been for Poland a time of transformation, which has encompassed every sector, including tourism. The global situation and consumer behaviour have also been conducive to the development of this sector. Therefore, it comes as no surprise that many countries see this as an opportunity to increase revenue from the tourist economy and stimulate their economies. More and more countries are intensifying promotional activities to increase their competitiveness on the tourist market. For 10 years now the Polish Tourist Organisation has been conducting promotional activities which show Poland as an intriguing, original, and inspiring country, with tourist values which are unique on a European scale. As a hospitable country that backs modern and creative solutions. I believe that without the support of such entities as “Polish Market”, which make their columns available to Polish tourism, our operations would not be so effective. Poland’s image is continually evolving, and so it has to be constantly bolstered by positive commercial messages stating that Poland is a modern country teeming with life, and that its residents are spontaneous, hospitable, and open. We are currently running campaigns in Germany, the United Kingdom, France, Belgium, the Netherlands, Denmark, and Sweden, as well as on the Italian, Irish, Spanish, Ukrainian, Russian, Czech, Indian, and Japanese markets. We are changing the image of our country abroad and countering the stereotypes of Poland and the Poles. Therefore, I believe that further cooperation with “Polish Market” will be as fruitful as it has been up to now, and its successive editions will reach an even greater readership, which I cordially wish for you. Rafał Szmytke, Prezes Polskiej Organizacji Turystycznej / President of Polish Tourist Organization

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200 EDITION POLISH MARKET Od pierwszego dnia istnienia Miesięcznik “Polish Market” szturmem wdarł się na rynek wydawniczy, błyskawicznie wypracowując sobie zasłużoną opinię jednego z najbardziej profesjonalnych, opiniotwórczych magazynów zajmujących się m.in. polską gospodarką, promujących na świecie polityczno-ekonomiczno-kulturalne dokonania naszego kraju, jego aspiracje i potencjał. Jesteście Państwo forpocztą polskiego biznesu poza granicami kraju, stając się często głównym źródłem informacji o polskim rynku dla zagranicznych inwestorów. Dlatego tym bardziej poczytuję sobie za zaszczyt fakt, że kierowana przeze mnie organizacja jest aktywnie obecna na łamach Państwa magazynu. Świadczy to o docenieniu roli, jaką odgrywają Pracodawcy Rzeczypospolitej Polskiej w dbaniu o wizerunek kraju jako miejsca życzliwego i przyjaznego wszelkiego rodzaju przedsiębiorczości. “Polish Market” jest pierwszym magazynem angażującym się w prezentowanie szeroko rozumianej polskiej gospodarki na arenie międzynarodowej, a Pracodawcy Rzeczypospolitej Polskiej są najstarszą organizacją polskich przedsiębiorców w naszym kraju. Dlatego pozwolę sobie na stwierdzenie, iż nasza współpraca jest czymś zupełnie naturalnym. Liczne nagrody i odznaczenia, jakie przypadły w udziale “Polish Market” dobitnie świadczą o wysokiej renomie, jaką cieszy się Państwa miesięcznik wśród gremiów zajmujących się szeroko rozumianą promocją naszego kraju. Warto podkreślić, że “Polish Market” nie tylko opisuje osiągnięcia polskich przedsiębiorców, ale także je nagradza. Wybierane przez profesjonale jury Perły Polskiej Gospodarki są niezwykle prestiżowym wyróżnieniem oraz znakomitą, rozpoznawalną w wielu krajach całego świata wizytówką, swoistego rodzaju pieczęcią potwierdzającą ich wyjątkowość, motywującą do dalszych działań. Jestem dumny, że wspólnie możemy budować pozytywny wizerunek naszego kraju za granicą, co przekłada się na stale rosnący prestiż Polski na arenie międzynarodowej. Nasze wspólne starania związane z tworzeniem jak najkorzystniejszych warunków dla rozwoju innowacyjnej przedsiębiorczości przynoszą spodziewane efekty. From the very first day of its existence, the “Polish Market” monthly took the publishing market by storm. It instantly achieved the well-deserved reputation of one of the most professional and authoritative magazines dealing with the Polish economy and promoting this country’s political, economic, and cultural achievements, and its aspirations and potential around the globe. You are the outpost of our business abroad, often serving as the primary source of information on the Polish market for foreign investors. For these reasons, I consider it an honour to head an organisation that is actively present on the pages of your magazine. This is a token of the recognition of the role that the Employers of Poland play in shaping the image of our country as a place that fosters and invites all kinds of entrepreneurship. “Polish Market” is the first magazine to engage in presenting the broad Polish economy on the international scene, and the Employers of Poland is this country’s oldest organisation of Polish entrepreneurs. Let me, therefore, take the liberty of stating that our cooperation is completely natural. The numerous awards and distinctions conferred on “Polish Market” are hard proof of the great repute enjoyed by your monthly among the bodies of experts dealing with the broad promotion of this country. It is worth noting that not only does “Polish Market” describe the achievements of Polish entrepreneurs, but it also grants them awards. The Pearls of the Polish Economy, awarded by a professional jury, constitute an extremely prestigious distinction and an excellent promotional vehicle recognised in many countries of the world, a one-ofa-kind seal of quality confirming a business’s outstanding achievements, and motivating it to take further action. I am proud that we can jointly build a positive image of our country abroad, which translates into Poland’s evergrowing prestige on the international scene. Our combined efforts for the development of innovative entrepreneurship are yielding the expected results. Andrzej Malinowski, Prezydent Pracodawców RP/President of Employers of Poland

Z okazji jubileuszowego 200 wydania miesięcznika „Polish Market” składam na ręce Pani Prezes Krystyny Woźniak-Trzosek serdeczne gratulacje. Od kilkunastu lat z uwagą obserwuję Państwa działalność wydawniczą, często czytam wywiady z ciekawymi ludźmi biznesu, ekonomistami, lekarzami, naukowcami i z zainteresowaniem śledzę opinie zapraszanych ekspertów. Rzetelne i ciekawe dziennikarstwo to dziś rzadkość, ale właśnie ono gwarantuje utrzymanie się na coraz trudniejszym rynku wydawniczym przez lata. Gratuluję! Dzięki Państwa pracy dziennikarskiej czytelnicy na całym świecie poznali i nadal poznają osiągnięcia polskiej gospodarki, sylwetki przedsiębiorców czy nowatorskie rozwiązania w dziedzinie zarządzania i finansów. Ogromny wkład Redakcji w upowszechnianie osiągnięć naszej nauki i techniki, promocję polskiej innowacyjności zasługuje na wyrazy najwyższego uznania. Miałem przyjemność gościć na łamach „Polish Market” wielokrotnie. To dzięki Państwu wielu czytelników dowiedziało się o pierwszych w świecie wszczepieniach implantu ślimakowego osobie dorosłej i dziecku z częściową głuchotą, które przeprowadziliśmy w 2002 i 2004 roku. Dziękuję, że pomagali Państwo rozpowszechniać zainicjowane i przygotowane przez nas założenia Konkluzji Rady UE dotyczące wczesnego wykrywania i leczenia zaburzeń

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200 EDITION POLISH MARKET komunikacyjnych u dzieci. Było to kluczowe wydarzenie ugruntowujące pozycję naszego kraju na medycznej mapie Europy oraz kończące działania realizowane podczas prezydencji Polski w Radzie UE w ramach priorytetu z obszaru zdrowia publicznego. Relacjonowali Państwo nasze konferencje naukowe i warsztaty, byli z nami, kiedy otwieraliśmy kolejne placówki: Międzynarodowe Centrum Słuchu i Mowy i Światowe Centrum Słuchu. Życzę, aby fakt umieszczenia nazwiska Pani Redaktor Naczelnej Krystyny Woźniak-Trzosek na pamiątkowej tablicy „Wspierającym nowe idee komunikacji międzyludzkiej – dziękujemy” był i będzie powodem do dumy. Państwa sumienność zawsze dawała i daje gwarancję, że czytelnik otrzyma informacje przygotowane z największą rzetelnością dziennikarską. Dziękuję, że przez kilkanaście lat pomagali nam Państwo edukować społeczeństwo i przełamywać stereotypy dotyczące osób niepełnosprawnych i ich problemów. Z okazji jubileuszowego 200 wydania miesięcznika życzę Państwu ciekawych wydarzeń do relacjonowania, satysfakcji z realizacji zawodowych pasji oraz wielu sukcesów w dalszym działaniu. I have a great pleasure to express my congratulations to Ms Krystyna Woźniak-Trzosek on the occasion of the 200th jubilee edition of “Polish Market”. For several years I have closely followed your publications, including interviews with interesting business people, economists, doctors, scientists, and expert’s opinions. Reliable and worthwhile journalism is a rarity today, but that is what makes for your continuous success on the challenging publishing market. Congratulations! Thanks to your magazine readers around the world have been learning about the achievements of Poland’s economy, Polish entrepreneurs and the country’s innovative solutions in management and finance. Your enormous contribution to the popularization of Polish scientific and technological achievements, as well as to the promotion of Polish innovation deserves the utmost recognition. I had the honor to be present in the columns of “Polish Market” many times. Thanks to you numerous readers learned about the world’s first cochlear implant surgeries in an adult and in a child with partial deafness, which were conducted in 2002 and 2004. I would like to express my gratitude for helping to publicize the EU Council’s conclusions, initiated and prepared by us, regarding the early detection and treatment of communication disorders in children. It was a major step pinpointing the place of our country on the medical map of Europe, and concluding the activities carried out during the Polish Presidency of the EU in the area of public health. You have been covering our conferences and workshops; you were with us when we were opening new centers: the International Center for Hearing and Speech and the World Hearing Center. The fact that the name of Ms Krystyna Woźniak-Trzosek, Editor-in-Chief, was inscribed on the commemorative plaque “For those supporting new ideas of human communication - thank you” should be the source of pride both now and in the future. Your diligence has always guaranteed that the reader receives information prepared in line with the highest journalistic standards. I would like to thank you that for several years you have helped us educate the public and break stereotypes about disabled people and their problems.On the occasion of the magazine’s 200th anniversary I wish you a great deal of events worth covering, professional satisfaction and further successful performance. prof. Henryk Skarżyński, założyciel Światowego Centrum Słuchu/ creator and founder of the World Hearing Center

Krótkie rozważania nad liczbą 200 Mój Boże – jak ten czas pędzi! Zdaje się tak niedawno świętowaliśmy ukazanie się setnego numeru “Polish Market”, a dziś pochylamy się nad numerem dwusetnym. Jednocześnie uświadamiam sobie, że to już 17 lat od dnia, kiedy to pismo zaczęło się ukazywać. Pewnie wówczas niewielu wróżyło mu trwanie na tym jakże trudnym rynku medialnym, jaki dziś jest wokół nas. A tymczasem “Polish Market” nie tylko przetrwało, ale rozwinęło się nad podziw. Ba, nie tylko stało się pismem promującym polska gospodarkę, ale także stworzyło środowisko ludzi związanych z polską przedsiębiorczością. Bowiem “Polish Market” promuje nie tylko instytucje, ale też – i może w pierwszym rzędzie - ludzi. Na stronach comiesięcznych edycji widzimy ich zdjęcia, czytamy wywiady z nimi i poznajemy tą podstawową prawdę, że o rozwoju gospodarczym decydują nie tyle zasoby naturalne, nie tyle urodzajna ziemia, ale przede wszystkim ludzie. Ich inicjatywa, ich pracowitość i przedsiębiorczość. A dla mnie ten wielki sukces “Polish Market” wynika także z tego, że pismo promuje zarówno gospodarkę, jak też działalność która ma nie mniejszy wpływ na nasze społeczne życie. Przyznając coroczne Honorowe Perły ukazuje wybitne postacie ze świata nauki, z obszaru kultury, ludzi którzy budują patriotyzm współczesnych Polaków i którzy służą społeczeństwu w działalności charytatywnej. W ten sposób pismo pokazuje wzorce osobowe znacznie wykraczające poza statystyki wzrostu PKB. Ale właśnie – sukces to ludzie. Tą osobą, która stworzyła “Polish Market” i która uczyniła zeń ambasadora polskiej gospodarki i życia społecznego jest Pani Redaktor Krystyna Woźniak – Trzosek. Dlatego też przy tym pięknym święcie dwusetnego numeru chciałbym wyrazić Jej moje najwyższe uznanie i podziw. I chciałbym życzyć kolejnych setek numerów tego pisma, kolejnych lat wspaniałego dalszego rozwoju. 5 - 6/2013 :: polish market :: 23

200 EDITION POLISH MARKET A brief reflection on the number 200 My God – how time flies! It seems we have just celebrated the 100th issue of “Polish Market” and today we are looking at No. 200. At the same time, I am beginning to realise that it has been 17 years since the magazine first appeared. Surely few people expected it to survive on the difficult media market that surrounds us these days. And yet not only has “Polish Market” survived, but it has actually risen to some prominence. Indeed, it has done more than just promote the Polish economy – over the years it has created a community of people connected with Polish entrepreneurship. “Polish Market” does not confine itself to promoting institutions – it also, and perhaps primarily, promotes individuals. Its monthly issues present photographs of, and interviews with, remarkable people, and remind us of the basic truth that economic development is not about natural resources or fertile land, but about people, their initiative, diligence, and enterprising flair. For me this great success of “Polish Market” also stems from the fact that the magazine promotes both the economy and businesses whose influence on our social life is equally big. With its yearly Honorary Pearls it highlights the outstanding individuals from the worlds of science and culture, people who boost the patriotism of contemporary Poles and contribute to society through their charity work. Thus, the magazine draws attention to role models who represent much more than just a factor in GDP statistics. Indeed - success is people. The person who created “Polish Market” and has turned it into an ambassador of the Polish economy and social life is Ms Krystyna Woźniak-Trzosek. That is why, on this wonderful occasion of the 200th issue, I would like to express my high regard and admiration for her. I wish you hundreds of future issues and long years of success and growth. prof. Andrzej Wiszniewski Minister Nauki w latach 1997-2001 Minister of Science from 1997-2001

The Polish media market is unique for several reasons. Not such a long time ago, it had to be built almost from scratch. Changing the communist system to a free-market, or the communist to a democratic ideology, if you will, required the redefinition of the whole press system. More importantly, though, it was essential to change the way of thinking about the media, freedom of speech, what can be said, how it should be said and, above all, about how the media are not a mouthpiece of propaganda, but the fourth estate, that should keep an eye on things instead. Despite retaining their titles, several newspapers and weeklies completely changed their graphic layouts and the style of journalism practised. Although “Rzeczpospolita”, a daily newspaper, and “Polityka”, a weekly, have undergone the most significant changes, “Gazeta Wyborcza” has grown into the largest player since the beginning of the transformation. Its founders are a group of people who formed the underground press to finally profess the stance that supports free elections. It has quickly become the number-one daily, both in terms of sales and opinionforming. “Wyborcza” needs to continuously fight for the position it once acquired, and strengthen it. The press market in Poland is undergoing changes and transformations on a regular basis. There are new players, and we’ve seen some foreign capital at work. Western media corporations do not cease in attempting to become popular here. The fact that the Polish press can boast a very high journalistic, editorial and graphic quality due to competition and relatively young teams of success-driven people turned out to be the strength of the Polish market. All those who tried to become known in Poland, with their ready-made solutions that worked well in other countries, did not pass the test. For instance, “Dziennik” and “The Times” have found out about this. Newspapers either went under very quickly or had to undergo a painful process of adapting to our formidable market, shaped by very picky and demanding readers. Therefore, despite the perceived economic crisis, new titles such as “Uważam, Rze”, “Sieci” or “Do Rzeczy” are still emerging. Not only can they easily stay on the market, but also are able to cope well financially, getting regular readership. What is unusual, for instance, is the fact that “Newsweek”, which has suspended the selling of its paper issues in the USA, has increased its regular weekly sales in Poland. It is also noteworthy that in Poland the entire segment of trade magazines is top-quality. Away from politics and current events, these papers consistently pursue their policies, i.e., to be an indicator and lodestar in the complexities of the world of business, the media, and the individual branches of the economy. The standards which were set very high from the beginning are being continuously raised. Therefore, such trade magazines as “Polish Market”, “Press” and “Bieganie” are of the highest level and can set trends across Europe. Although the Polish press is losing readers under the flood of all the media from television to the Internet, it remains to be an indicator of topics that are being discussed in the public arena and getting to the most demanding customers. So far, all the talk about the death of the paper media in Poland is greatly exaggerated and definitely premature. Marek Kacprzak, media expert, Polsat News

24 :: polish market :: 5-6 /2013

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CSR

“Polish Market” supports Young Disabled People

Festival for Young Disabled People

Maciej Proliński Songs from hearts to hearts. Ciechocinek – one of the most renowned Polish resorts – every year becomes the home of a unique event. In late July, early August, the town hosts “Impresje Artystyczne” (“Artistic Impressions”), a Festival for Young Disabled People organised by the Pro Omnibus Foundation. To date, 16 editions have taken place. “Polish Market” is the official patron of the festival, while Krystyna Woźniak-Trzosek, President and editor-in-chief, presides over the jury.

he summer festival in Ciechocinek is the largest event of its type in Europe, enjoying great popularity not only with young artists, but also resort patients, tourists and residents as well. It has grown to have its faithful audience, who applaud and support the young disabled singers. The participants are recruited from young people who, despite their disabilities, exhibit extraordinary musical talents and expend enormous efforts to unceasingly push their

skills forward. The awards won at the Festival come to serve as an inspiration for these young people to make the most of their talents, to “lose themselves in music”. Worth highlighting is the fact that the Festival Laureates have already performed several times during the official Gala concluding the prestigious ranking of the Pearls of the Polish Economy, organised by “Polish Market” and the Institute of Economics of the Polish Academy of Sciences. ::

Marek Michalak, Children’s Rights Commissioner of the Republic of Poland “What’s important is to remember that by no means are disabled children different from their healthy peers. They are all equally entitled to exercise their rights, also in the field of culture. The Convention of the Rights of the Child – an international treaty adopted by the United Nations General Assembly in 1989 – governing these matters, among other things, and the document devised by Poland – should serve as a positive driving force in implementing these issues. The global recognition of Poland as the “homeland of children’s rights” constitutes our joint obligation that we need to honour and keep on setting a good Polish example. The children performing in Ciechocinek not only prove they are not “worse”, but often even better than their able-bodied friends. And this truth becomes revealed in places such as this, and

Krystyna Woźniak- Trzosek, presiding over the jury at The Festival for Young Disabled People and Mirosław Satora, organizer, Pro Omnibus Foundation

through such foundations. What idea rests behind the Ciechocinek Festival? The young participants don’t come here just to sing - they build a unique community in the process. Every year they are given an opportunity to integrate and share positive emotions. And we should be aware of that. Personally, I would like the Festival to reach a broader audience. It will be a pleasure for me to take on the Honorary Patronage of this event, and if it needs any support, I will surely lend a hand. ::

5 - 6/2013 :: polish market :: 29

CSR

Corporate social responsibility Corporate social responsibility (CSR) continues to be a problematic term to a large part of business people, including heads of companies. Many of them associate the concept with charity, which is the proverbial “window-dressing”, an addition to the company’s core business activity. The market needs both education and evidence that this business model works in practice for the principles of corporate responsibility to become a standard.

Ewa Bałdyga, vice- president of Martis Consulting

any businesses are unconvinced that CSR is a management strategy that corresponds to contemporary business challenges. While this is not the rule, the principles of responsible business are known and accepted primarily by large companies operating in Poland, that is, branches of international corporations or Polish companies that compete with them on the global market. Yet the situation is very different in small and medium-sized enterprises. Many of them are guided in their actions by the ethical principles resulting from the convictions of owners or managers, but they are not always able to integrate this social sensitivity into their business activity to an extent sufficient to win a distinctive competitive advantage on the market in the long run. Full integration of CSR principles with business strategy is still rare, even in larger companies.

Dialogue as the basis for development

It has been proven by the results of a survey conducted by Martis Consulting during the “CSR Academy. The development of responsible business” initiative. As part of this project, a series of conferences was organised in autumn last year aimed at promoting corporate social responsibility, particularly among small and medium-sized enterprises. A particularly valuable element was the participation of companies that are the leaders in CSR in Poland, whose representatives shared their experiences in this regard with the participants. The presidents and members of the

30 :: polish market :: 5-6 /2013

boards of such companies as the Lotos Group, JSW or Zakłady Azotowe Puławy attempted to convince entrepreneurs about the fact that CSR requires making strategic decisions that have an impact on key areas of companies’ activities. Thus, they implemented one of the key principles of CSR that consists of sharing best practices with other market participants. The entire series of conferences was attended by over seven hundred participants, representing companies of all sizes. Their declarations show that only a small percentage of companies (about 20%) have their strategies for corporate social responsibility or sustainable development written down. Although such a document is not indispensable in a company, especially a smaller one, it is important that the activities it carries out in the field of CSR are based on its unique competencies and experience.

If not a strategy, then

what?

A number of tools, of which the analysis of the impact of individual stakeholder groups is the most basic one, can be used for identifying the key areas of involvement. This makes it possible to identify the opportunities and risks associated with the needs and expectations of the interest groups representing the company’s environment. The Competence Centre, whose coming into existence was initiated by Zakłady Azotowe Puławy, constitutes a perfect example of an activity resulting from such an analysis. In its creation, the company has established cooperation with, among others, a number of academic institutions and producer organisations. Its main purpose is to develop new

products and provide professional consultancy services to farmers. This considered action, through the wide involvement of different stakeholder groups and the use of the company’s competencies, contributes not only to developing Puławy’s business, but also the entire chemical industry. Another tool that definitely helps to systematise the area of a company’s social engagement, and thereby to increase its efficiency, is the ISO 26000 standard. It organises knowledge on CSR and constitutes a guide to the implementation of the principles of responsible business in a company. Reporting, that is the preparation of periodic reports on non-financial activities, is also an extremely valuable, comprehensive, and therefore more and more often used management tool. The primary value of this process, provided that it is carried out by the organisation in a diligent way, is an unbiased assessment of achievements to date and the identification of key opportunities and risks, whose proper use can contribute to the hammering out of specific actions that build value for the company and its environment. Developed reporting standards, of which the most popular is the one worked out by the Global Reporting Initiative (GRI), can be of invaluable assistance in this area. Our customers are encouraged to aspire to preparing so-called Integrated Reports that summarise both financial and non-financial operation results. Such an approach forces a company, in a way, to think of CSR as a method of implementing a business strategy, and thus facilitates its integration within the core activity of the company. ::

Powering Creation

Independent Poland’s chemical industry was born in Tarnów in 1927. Since then, history has come full circle. Polish chemistry is being reborn in Tarnów these days – conscious of its strength and fully secure. Grupa Azoty is the fusion of everything that we, the Poles, have been able to do best in this industry. We are ready to transcend new boundaries – because Grupa Azoty is a project focused on the future. This is the way it has always been. We’ve come a long way. We’ve changed. We are now competing with Europe’s largest chemical companies. And thanks to the recently completed great consolidation, we are prepared for this better than ever before. We have defined our aims in the strategy adopted for the years 2012-2020. Due to the Group’s well-conceived architecture, we are able to offer our clients an even broader product portfolio – from nitrogen and phosphorus fertilizers as well as constructions plastics to OXO alcohols, plasticizers and pigments. We have no competition in this regard as of today. We possess our own logistics infrastructure, as well as research, development and servicing facilities, which also allows us to provide services.

We want to use these assets in further building the Group’s value and that of the companies which form part of it – keeping our shareholders, employees and the local communities in which we operate in mind. The two main lines of our current strategy are taking advantage of the increased scale of operations and maximizing the effects of synergy – this means full use of the potential gained through consolidation.

We are chemists. We are the architects of matter. The architects of the future. We know what we are due to those who have come before us. We know what we owe to those who will follow us. We owe them a world which will be a better place to live.

grupaazoty.com

CSR

NUTRICIA responsible business

orporate social responsibility can not only bring to a company image benefits, but it can also strengthen the company internally, becoming a permanent element of organisational culture. Shared values, behaviour standards and the language used by all employees make cooperation easier. They integrate the team and enable to build a a feeling of a connection with the company, says Beata Sawicka, CSR Manager of NUTRICIA Zakłady Produkcyjne in Opole. NUTRICIA is a market leader in baby and child nutrition products in Poland. It provides products for children in all categories - from basic and specialist modified milks (Bebiko and Bebilon) up to a wide range of formulas for infants and toddlers (BoboVita). It is also a manufacturer of the nutritious formulas for over 40 countries of the world. The connection between the corporate social responsibility and the company’s organisational culture is of highest importance. Depending on the operating normative structures within a company, the organisational culture may either support or weaken the development of moral and ethical attitudes.

The CSR, understood as described above, allows to name the 3 areas, which make the foundations of the social responsibility in the NUTRICIA company in Opole. 1. People – who are the greatest asset to the company. All the activities that give to the employees and often to their families a possibility to keep the balance between their professional life and a private one. 2. Help to those in need. The company’s involvement in this respect focussed on the help to the children in need given as a result of the shared involvement of the employees. The employees’ participation takes in this respect a form of a corporate volunteering. 3. Environmental protection. As a production plant, the company spares no effort to make the lowest possible environmental impact and to build ecological awareness among its employees. Bearing in mind the above mentioned assumptions and implementing the CSR strategy adopted by the Management Board, the Company executes many programmes. These are the most important ones: The “Supporting Life” programme. At the beginning of each year, the Company em-

NUTRICIA Supply Point in Opole

Through the functions it fulfils in the company (integrative, adaptive, perceptive and motivational), it can be either a motive power for a change for better in a company, or it may slow down the socially responsible initiatives. In case of a proper management, it may become an element of an organisation. To achieve this, the CSR values must be articulated both in the official internal and external communication, but they also need to have a reflection in everyday operations of the company.

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ployees create a calendar of charity actions for the children from the local Children’s Home. They assign one action to each month and appoint a department to be responsible for the action organisation. We have focussed for years on the actions that not only consist in spending time with the children, but also help them acquire practical knowledge and skills. For example, we have created a tutoring programme for the children from the Children’s Home. Our employees do the voluntary tutoring in history, mathematics,

chemistry, physics, English and German. The major and most important effect of the tutoring programme is developing a habit of systematic learning among the children from the Children’s Home . The programme was joined by the Opole University students who also do the foreign language tutoring to the children. The HOPE volunteers programme allows each of our employees to create his/her own programme, implement it and support an institution or an organisation he/she wants to. The NUTRICIA volunteer programme leaders have completed 112 local projects since 2010. The company also runs human resources development programmes. “Health is trendy” is one of them. It promotes a healthy lifestyle. It is important to take care of oneself now in order to enjoy health and fitness in future. The programme entitled “In Nutricia we are eco” concerns the natural environment. We are fully aware that our everyday actions and decisions have a great impact upon the natural environment. A group of people was created to focus on promoting the environmental protection. For the Nutricia company, the CSR is a voluntary practice, a response to the social expectations, to the expectations of our employees and of the local community. It is a consequent action of the sustainable development. One may implement ready-made solutions. Nevertheless, one gets the highest value by carrying out needs and expectations analysis and designing one’s own programmes, considering its own potential. Sometimes, one may even exceed this potential. CSR has become trendy for the last 3-4 years. The company’s social involvement has been measured, counted and verified. Numerous rankings and competitions appear to which we are invited, but in my opinion not this is a real value and benefit from our execution of the CSR strategy. For me the employee involvement counts, what kind of team we are able to create, as well as what results we are able to achieve working together, and how this all translates directly into the development of the Company and into our personal development. These are the real measures of success for me and that’s how I can understand the CSR, says Andrzej Drosik, Plant Manager. ::

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Innovation

Innovation, competency, flexibility Alicja Wiecka, Managing Director of SAS Institute, talks to “Polish Market.”

In May, you received the Manager Award 2013 for your exceptional successes and effectiveness in management. What do you value most in your work? Customers are invariably interested in the outcome of our work which gives me immense satisfaction. What makes SAS stand out in their eyes is being a dynamic team of visionaries and enthusiasts with profound understanding of the role of analytics. For 21 years we have helped customers expand their businesses by offering significantly more than mere data storage systems. We have consistently offered the best technology complete with implementation and business consulting services based on expert knowledge and experience. For over two decades our expertise has grown with every new project. So has our flexibility, as in Business Intelligence propensity for change is an undisputed necessity. pm

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SAS in Poland, working hand in hand with Polish customers, develops innovative solutions which are ahead of what is offered in the United States and elsewhere in the world. We have proved this many times. One of our Polish innovations was the development of business solutions dedicated to individual industries such as telecommunications or banking. We invented the whole concept in Poland and developed first solutions locally in Poland. These products conquered global markets by storm. Within one year there were multiple implementations across the globe and the Polish research and development team was adding new functionalities enabling customers to be more and more competitive using SAS technology, business solutions and know-how. What helps is that staff turnover at SAS is low and we have been awarded many best employer titles.

Good relations with customers are certainly reflected in the company’s financial performance. For five years now we have recorded double-digit growth in software sales in Poland. Sales increased by 10% last year and even more in previous years, despite the fact that the past five years have not been easy for the market. In 2012 our sales reached PLN100 million. We have been on an upward trend irrespective of market conditions. pm

What is your recipe for growth? SAS solutions help companies cut costs and increase sales. As a result, they are needed both when the economy is booming and when it is slowing down. Savings are achieved by integrating Business Intelligence on the SAS platform and growth by providing endcustomers with better fitted, more closely pm

Innovation

adjusted products, irrespective of the size of the market, its saturation and the general economic situation. We are the market leader in Customer Intelligence solutions which help maximize the value of each customer interaction while raising customer satisfaction. The present position of Play, the fastest growing mobile operator in Poland, who since the beginning has based its Business Intelligence and Customer Intelligence strategy on SAS solutions, proves that it is possible to expand a seemingly saturated market by way of advanced analytics. Competition is what drives the market for our solutions. Although it is said that the economic slowdown is not yet over, our customers have not lowered their sales targets. Which SAS products are most popular? Data warehouses are the main pillar of our revenues. For years we have specialized in data integration, ensuring coherent management information and handling all analytical and reporting needs of the whole organization. Our latest product enjoying huge popularity with customers across the world is the SAS Real-Time Integrated Marketing Platform. Among the biggest customers using the system is Weve, a joint venture between the UK’s three largest mobile network operators. The SAS solution has been used at Weve to build a unique m-commerce marketing platform, accessible by a large number of business partners, such as banks, insurers and retailers. The platform enables them to launch many innovative services, like mobile POS, mobile payments, geotargeting and mobile wallet. The SAS Real-Time Integrated Marketing Platform makes it possible to make real-time decisions based on over 1,600 geolocation signals per second to provide “the right offer at the right time” for every Weve customer. A large Polish banks has recently become one of the world’s first users of this solution in the banking sector. The main goal is the bank’s strategic transformation into a new-generation bank – an Optimized Customer-Centric Organization – able to exploit the potential of internal and external Big Data. Among other SAS products which continue to be sought after by customers are Risk Intelligence, Fraud Detection, Optimization Solutions, the Management Information System and Sales Management Systems. pm

One could say that every company has already got a data warehouse. But SAS is still selling these solutions.

This element of Business Intelligence best shows our advantage over the competition. What is important is not merely to have a data warehouse, but to be able to use it in real life so as to improve the efficiency of the organization. This really makes a big difference. The SAS customers who bought our warehouses in the 1990s are still using them and are satisfied. The management information our customers need is provided on time, in every dimension and to each group of business users. The data is coherent and successive data sources are added without any problems. Foreign companies pay reference visits to Poland to see Business Intelligence platforms used by Polish SAS customers. Positive opinions about our solutions circulate among managers and we are approached by companies which once chose a different supplier and now still have only a data storage system. We work with them to put things in order. We know how to competently build flexible data warehouses ready to respond to the challenges of today, tomorrow and the day after tomorrow. This is what puts us apart from others. Is demand for Business Intelligence systems still growing? New sectors are beginning to use Business Intelligence and we like this diversity very much. The healthcare sector for example not only builds data warehouses, but also has a need for specialized fraud detection systems Sucha healthcare institution as the National Health Fund may serve as a good example. Demand for our solutions can be measured by the growing number of universities where students are offered courses in SAS systems. There are lots of people eager to attend these courses, many more than there are places. Students know that work with SAS systems will be attractive and that their qualifications will be sought-after. This shows that there is a growing demand for Business Intelligence and for solutions provided by SAS as the market leader. For years SAS has been surrounded by an exceptional community of people who are the engines of their companies’ innovation and development. pm

Last year, SAS presented new solutions and technologies: High-Performance Analytics and Visual Analytics. SAS analytics is readily available in technology offered by the SAS High-Performance Analytics Server, combining in-memory processing speed with the potential of SAS domain specific offerings for statistics, pm

Alicja Wiecka Originator, founder and Managing Director at SAS Institute Poland, a provider of analytical software, since its opening in 1992.

forecasting, econometrics, optimization, as well as data and text mining. SAS Visual Analytics is a new-generation tool based on inmemory processing technology. It enables business users of all skill levels to visually explore data taking advantage of SAS’ powerful reporting and analytics capabilities. Thanks to the SAS Mobile BI application, it is also possible to share results on mobile devices. Decision-makers of all organizational levels have been given the ability to analyze unlimited amounts of data independently of IT support. This is a breakthrough change which thoroughly redefines the information management process in an organization. :: 5 - 6/2013 :: polish market :: 35

Innovation

Bring big data to life with visual analytics Four industries, four ways to use data visualization

he future of business will be fuelled by big data. Just as coal gets liquidized to turn it into fuel oil, big data requires a final liquidation step that makes it usable too. For big data, that final step is visual analytics, which makes big data portable, transferable and easy to share. SAS® Visual Analytics takes billions of rows and, in just seconds, displays a visual that allows you to spot trends and opportunities. With one glance, you can explore massive amounts of data in real time to see connections among data that you never dreamed were linked, and suddenly you’re seeing your business in a whole new light. So, what does this look like in real life? Find out what four organizations in four different industries are doing with SAS Visual Analytics.

Telecommunications:Visualize how traffic demand impacts the network The largest telecommunications operator in Italy wanted to extend and reinforce the monitoring of its mobile network service as part of a programme to improve the customer experience. To support this objective it needed to define and analyze key performance indicators for mobile network voice and data traffic, comparing its own performance with competitors in some level of detail. However, this is a fast-changing market. The company must be able to respond quickly with new and improved product range to its customers, and must be able to analyze the impact of these products. With data visualization, the company can compare the performance between all competitors for key indicators on a single screen. In an instant, users can see an overview of areas of competitive strengths and weaknesses.

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Government: Visualize statistical patterns to understand and serve the public better If you’re wondering how to apply for a license, want to know what to do about water seeping into your flat or would like to report a fallen tree, whom do you call? In Hong Kong, you simply dial 1823 as a single point of contact for any question relating to public services. You’ll get an answer from live operators who respond 24/7. Each year, the Hong Kong Efficiency Unit (HKEU) responds to inquiries, suggestions and complaints that it receives in roughly 3 million calls and 98,000 emails. By bringing together massive amounts of information to uncover statistical trends, patterns and relationships in the data, data visualization software allows the HKEU teams to respond appropriately. For example, they can now identify the root causes of complaints, such as peaks in vehicle registration applications, higher-than-usual water tables or land subsidence.

Financial Services: Visualize customer trends hidden in social media data A leading UK-based financial services organization wanted to monitor and assess social media trends, attitudes and comments about its brands and services in real time. The problem? Data drawn from social media conversations is qualitative, unstructured and flows in 24/7 in massive amounts. The bank needed to repackage and present the data in ways that make sense. With the help of data visualization, the bank has uncovered new information on customer behaviour, enabling the bank to plan and react to customers’ needs based on a detailed understanding of what’s on their minds and current market trends.

Retail: Visualize new opportunities hidden in customer data SM Marketing Convergence Inc. (SM-MCI), an affiliate of SM Retail Group, operates one of the largest customer loyalty programmes in the Philippines, collecting massive quantities of customer purchase and spending data. In fact, SM-MCI’s current data exceeds 1 billion transactions. With data compiled from its customer loyalty programme, SM-MCI uses SAS Visual Analytics to understand buying patterns and identify trends, which leads to better service – and greater customer satisfaction. ::

What can you do with SAS® Visual Analytics ? BANKING: Calculate risk across entire portfolio: Analyze risk factors at every transaction level – in milliseconds instead of hours or days. RETAIL: Next best offer recommendation: Look at all sales data, purchase history, social media data and more to quickly create welltargeted offers. MANUFACTURING: Drive better yield, utilization and satisfaction: Proactively identify and resolve product defects, production issues and inefficiencies. TELCO: Faster action against churn: Quickly identify customers at the exact moment they consider switching to a competitor, and take the best action for retention. Bring m-commerce to lifethrough mobile marketing and advertising, payments, transactions, loyalty programmes and coupons.

SAS® Visual Analytics: www.sas.com/poland/va

Innovation

Warsaw has a new hospital A new private medical centre – St. Elizabeth’s Hospital – Mokotów Medical Centre – has opened in Warsaw. It is located in the renovated former building of the Sisters of St. Elizabeth. On 27 May 2013, the opening ceremonies were attended by representatives of the State and Church authorities. The hospital was consecrated by Cardinal Kazimierz Nycz, the Metropolitan Archbishop of Warsaw. Paweł Obermeyer, the head of the Medical Centre, stressed that the centre owns a NanoKnife device, the first of its kind in Poland, which is applied in the therapy of cancerous lesions which until recently were considered as inoperable. Maciej Proliński

Photos: St. Elizabeth’s Hospital

nna Komorowska, the wife of the President of Poland, sent a special letter to the participants in the hospital’s opening ceremonies. The letter was read by the President’s advisor, Maciej Piróg. “I am extremely glad that St. Elizabeth’s Hospital has been extensively transformed and is being opened in its new form today. On the one hand, the great tradition and history of the precursory medical accomplishments which took place within the walls of this building, impose obligations; on the other, they are certainly reasons for pride and sources of great satisfaction and inspiration for the future. Meanwhile, Warsaw is getting an institution which will satisfy the highest criteria and standards of contemporary medicine. The innovative diagnostic and therapeutic equipment will provide patients with an opportunity to receive medical service at the highest international level and doctors providing the comfort and tools for effective treatment and proper care. All of these facilities, which will now be applied by the specialists, create the means necessary to achieve the main goal, which is the well-being and sense of security for the patients, which is very important in struggling with serious ailments,” the First Lady wrote. Contrary to many private establishments in Warsaw, St. Elizabeth’s Hospital – Mokotów Medical Centre is counting on a contract with the National Health Fund (NFZ), since it also wants to treat patients on the basis of public insurance. The first patients will be admitted in mid-June. For now, these will be commercial services. The hospital has begun to seek a contract with the NFZ. The hospital has 146 beds and a modern operating block with five operating rooms equipped with state-of-the-art surgical and anaesthetic equipment. The institution places

the biggest stress on cancer treatment, including breast-reconstruction surgery. The hospital will have the following wards: Orthopaedic, Oncologic Surgery, Plastic Surgery, Gastroenterological, Laryngological, Nephrological, Proctologic, and Uro-oncologic. The scope of the open treatment is planned to cover specialist outpatients’ clinics and an admission room and offices adapted to providing procedures in the field of ontpatient specialist care, procedures of endoscopic diagnostics in the field of gastroscopy and colonoscopy, as well as chemotherapy in ambulatory conditions with associated functions. St. Elizabeth’s Hospital is Poland’s first institution which has a NanoKnife device. “Until recently, such devices were used in the USA and other EU States. Thanks to its innovative operating method, this device opens a new chapter in cancer treatment, providing opportunities for treating cancerous lesions previously considered inoperable and forcing

the patients to undergo palliative treatment. The device applies the innovative method of non-thermal ablation, operating on the basis of the irreversible electroporation of the cell membrane. This allows for permanent damage to the cancerous cells with simultaneous preservation of the functions of structures important to the human body, such as circulatory vessels, nerves and bile ducts. This method has been approved in the USA and Europe following successful attempts to treat liver, pancreas, prostate, and kidney lesions, which could not have been treated with any other method. The NanoKnife device constitutes a new generation of equipment for the local treatment of cancerous lesions. This is the first and only device available on the market which applies this innovative procedural technology,” emphasises Maciej Chwaliński, MD PhD, a cancer surgeon at St. Elizabeth’s Hospital. ::

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Innovation

Clusters as an EU priority The European Union supports the development and operations of clusters created in Polish regions. The idea of clusters is one of the crucial elements of EU economic policy and is among the priorities of the Europe 2020 Strategy. Bogdan Węgrzynek

he issue of clusters was specifically incorporated into one of the seven leading projects specified in the strategy, that is. “An integrated industrial policy for the globalisation era”. Within the project the European Commission undertakes, among other things, attempts to improve the business environment, in particular with regard to small and medium-sized enterprises, also through reducing the costs of business activity in Europe, supporting clusters and facilitating inexpensive access to funding. Among the most important documents concerning clusters in the EU policy is the Communication of the European Commission of 2008, aimed at creating effective conditions conducive to the development of cluster initiatives in Europe. The objective is to increase the number of clusters at the global level, to reinforce their innovative potential, and streamline international cooperation in the field of clustering. The document shows the significance attached by the European Commission to

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clusters in economic policy. This is related to the opinion that in the current socio-economic conditions, especially the growing competition in the global dimension, clusters are a significant factor of economic development. For this reason actions are planned and implemented at the Community level with the aim of creating optimum conditions for the development of clusters, which in turn will contribute to the competitiveness and innovativeness of the EU economy. The most crucial decisions connected with cluster-development policy are the areas of responsibility of particular Member States. However, the European Commission undertakes actions for the promotion of joint initiatives with the goal of improving the functioning of cluster initiatives and their internationalisation, which is becoming increasingly more significant in the context of globalisation processes in the world economy and European integration. The communication emphasises, among other things, the importance of grassroots initiatives in the creation of cluster structures,

in which the dominating entities are local enterprises directly integrated with the region’s economy. The State should only perform supplementary functions and concentrate on establishing an institutional infrastructure around clusters. Enterprises operating in clusters can apply for funding within the EU Innovative Economy Programme, activities for the purpose of supporting connections between enterprises, business environment institutions and scientific entities. In the years 2007-2013 the Polish Agency for Enterprise Development received within the programme EUR104.3 million (approx. PLN430 million) for the development of clusters; however, agreements with beneficiaries were concluded for only just under half of this amount. Entrepreneurs associated in clusters can also apply for funding from other EU programmes. ::

Innovation

We improve the quality of life Wojciech Marzec, president of BGS Biside Global Services, talks to Patryk Mirecki.

What are eco-innovation solutions and what is their purpose? We operate in the IT business. We promote, deliver and develop Business Intelligence solutions – we extract knowledge from data, a knowledge which is useful in practice. We operate in important sectors – from telecommunications to finance to medical institutions and production units, including the energy industry. The use of eco-innovation technologies is increasingly widespread in these sectors. And in any of the sectors – in order, say, to measure the amount of waste produced or the level of carbon dioxide emissions - one needs to use IT systems to calculate and model processes. We also deal with intelligent transport systems. pm

What are these systems about? If we can measure traffic intensity in a big city in real time we can reduce traffic jams by at least 15%. We are now implementing the system provided by the Spanish company BitCarrier. It means we do not need to install any cameras, inductive loop traffic detectors or lay underground wires. The only thing that is needed are small sensors, which scan the Bluetooth, Wi-Fi and other signals emitted by every cell phone and hands-free devices in vehicles. The BitCarrier system is revolutionary in that it makes it possible to determine the flow of vehicle and human streams. The system reduces traffic monitoring costs 10 time compared to systems based on conventional cameras. What is more, BitCarrier enables us to learn about people’s travel patterns – we are able to see for example that they first use a tram and then transfer to a bus. This makes it possible to plan stops better because cities are expanding while their transport systems do not adjust to the change as quickly as one would expect.

stops were situated close to them. But almost everything has changed since then – there are now new centres of business and many of them are located in new places. It is necessary to move the stops to meet the present needs of the population. The system we are applying helps to design the development of urban transport which takes into account the existing needs. If the transport system is designed better people are more likely to use it. This should be combined with traffic control. Traffic control systems installed in Barcelona and other European and South American cities have enabled a 15% reduction in travel times and traffic jams. This means that fuel consumption by vehicles also dropped by 15% and that the air in the cities is now cleaner by 15%.

Could you give an example? One example is the Upper Silesian conurbation. It has one of the largest tram networks in Europe. But the tram routes no longer meet the needs of the local population. In the past, there were large industrial plants, steelworks and mines in the area and tramway pm

What is the financial effect of such solutions for the companies which implement them and the users? If we count the average cost of travel needed to cover a specific distance over an hour and count the time that residents of Warsaw and other big cities spend in traffic jams we can see that thanks to our system they have more time for work and leisure. If it sometimes takes an hour to get from the district of Białołęka to the centre of Warsaw you have one hour less for the activities you have planned for that day. Demand for traffic control solutions has started to boom in Poland and elsewhere in Europe. Tenders for a traffic control system for the city of Koszalin have recently been invited and an expensive control system is being implemented in the coastal Tricity. In the city of Rzeszów, north-south traffic is dominant at present. But when the A4 motorway is completed in the vicinity of the city in one and a half years’ time the vehicle traffic patterns will change completely. If we get to know the details about the traffic thanks to the new system Rzeszów’s urban development and investment project planning will change accordingly. This will probably contribute to the construction of new housing estates. The city authorities will know where to build new crèches, kindergartens and schools. Such systems also help in planning pm

commercial projects – like for example new bank outlets, shopping centres and entertainment facilities. They reduce costs and raise residents’ satisfaction. They may provide information to your smartphone about the travel time needed at the moment to reach a specific place in the city, about free parking places, any obstacles and so on. Your company also operates in the healthcare sector. For more than 10 years the National Health Fund (NFZ) has collected and stored all data on services provided and medicines sold. But so far no one has used the data to optimize the services and detect frauds. The optimization of the system would make it possible to better distribute NFZ funding to individual hospitals and regions and provide the money to those who really need it. I assess that savings achieved in this way would reach several percent of the NFZ budget. It would be a significant amount of money given that this is a budget of many billions of zlotys. Additionally, waiting times for appointments with specialists would be shortened. pm

What else does your company deal with? Generally speaking, we deliver solutions which enable saving time and taking the right decisions on the basis of a huge amount of production and business data. We are introducing for example such innovative systems as voice recognition in relations with clients of call centres, banks and telecoms. We also deliver systems for reporting to the financial departments of companies. We offer systems monitoring the working time of teams and costs as well as various analytical solutions, like for example the ones for the Lux-Med medical network and for the producer of construction adhesives Atlas. We even deal with data analysis in the exploration of natural resources. We are trying to start operations on foreign markets - Norway, Albania, Lithuania and Ukraine. We actively cooperate with universities, research and development units and advisory centres. :: pm

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Innovation

Poland has a lot to offer The 4th Innovations Forum has recently been held in Rzeszów. A large group of panelists and invited guests proved to the organizers that it is always worthwhile talking about innovation in Poland. The leading theme of this year’s Forum was “Aviation-Space-Eco-Innovations”.

he opening ceremony was graced by Deputy Prime Minister and Minister of Economy Janusz Piechociński. The Forum was also attended by Deputy Ministers of the Treasury - Urszula Pasławska and Tomasz Lenkiewicz, Labour and Social Affairs - Elżbieta Seredyn, Sport and Tourism - Katarzyna Sobierajska, National Education - Tadeusz Sławecki, Health - Aleksander Sopliński and Justice - Wojciech Węgrzyn. The Parliamentary Group on Space was represented by Józef Zając, a senator, and Bożena Szydłowska and Małgorzata Szmajdzińska, MPs. The Forum and its dedicated City of Innovation were inaugurated by the organizers: Zygmunt Berdychowski of the Warsawbased Institute for Eastern Studies, Zygmunt Cholewiński, Deputy Marshal of the Podkarpackie Region, Tadeusz Ferenc, Mayor of the City of Rzeszów, Marek Ustrobiński, Deputy Mayor of the City of Rzeszów, Professor Marek Orkisz, Rector of the Rzeszów University of Technology, and Paweł Walawender, President of the Board of BD Center. Like in the previous years, the City of Innovation was open for the entire duration of the Innovations Forum. Companies and institutions prepared a variety of attractions

Janusz Piechociński,Deputy Prime Minister and Minister of Economy

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and competitions for the visitors of the City of Innovation. It was an excellent opportunity to get acquainted with the latest developments in satellite, aircraft and aerospace technologies. The City of Innovation was visited not only by the participants of the Forum, including Deputy Prime Minister Janusz Piechociński, but also by students. 60 panelists – prominent scientists, representatives of local governments and businesses – participated in 11 panel discussions. The special guest of the Forum was Scott E. Parazynski, an astronaut of Polish origin. The opening ceremony was accompanied by the Chopin - the Space Concert performed by Karol Radziwonowicz, together with the screening of the film produced by Adam Ustynowicz and shot by American astronauts during their space mission in 2010. “New technologies in the aerospace industry - innovation in thinking about space exploration is becoming more realistic and available not only do the super powers like the United States, Russia, and China, but also here in Europe. Poland became last year the 20th member of the European Space Agency, which has an annual budget of about EUR 4 billion and employs over 2,000 people. Membership in ESA gives Polish industry new access to the most advanced technology,” said Jan Bury, Chairman of Innovations Forum Programme Council, during the official opening of the Forum. Other speakers who took the floor to inaugurate the Forum were Zygmunt Berdychowski, Zygmunt Cholewiński and Tadeusz Ferenc. Zygmunt Berdychowski said:“Three years ago, we decided with Mr Bury to organize in Rzeszów Innovations Forum as part of the Krynica Economic Forum. It seemed to me that, although Rzeszów has a potential, it will take long to create and promote this event. I must admit that I am very happy when I look at Rzeszów today. I am sure we can

the Space Concert performed by Karol Radziwonowicz

already say that Rzeszów is a successful city.” The Mayor of Rzeszów, Tadeusz Ferenc, who was also hosting the meeting, said: “The Forum is a great instrument for “Rzeszów to fulfill the promotional slogan Rzeszów, the Capital City of Innovation.” We are committed to attracting companies and institutions involved in high-tech business and effective in implementing innovations. It is a way, for Rzeszów and the whole region, to accelerate development, unlock intellectual potential and encourage young people not to go to live elsewhere. I am convinced that the 4th Innovations Forum will open up new prospects for the development of our city. I am sure Rzeszów will be the best city in Poland. At the moment, we are rated fourth.” In his speech Adam Góral, President of the Board of Asseco Poland S.A., referred to the report “Innovation Union Scoreboard 2013”. “The EU report considers the world’s most innovative economies like the United States, South Korea and Japan. The European Union is also positioned quite high. And what place does Poland take in this report? We are at the tail end of the group of countries with modest innovation inclinations, only ahead of such countries as Bulgaria, Romania and Latvia. Moreover, the scale of Poland’s innovation

Innovation

index is 50% lower than in other EU countries, and in the last two years the position of Poland went further down”. The President of Asseco said, however, that the example of his business shows that there is no such disadvantage that could not be reversed. “In 2010 we held the 44th position in the innovation rankings. Today we come third. The Group’s sales in 2010 amounted to PLN 3.2 billion, and in 2012 to PLN 5.5 billion. We were ranked 8th among European software producers, and today went up to hold the 7th position. We employ 16,608 people. This was possible because in addition to a great deal of luck, there was a plan of action, the people, and of course the ambition. Money as such was never our primary goal; we had other motivations.” The President of Asseco enumerated aspects that are likely to make Polish economy more innovative. These are, of course, customers and transparent law. We should learn from the experience of other countries that occupied a similar position not so long ago, and today are innovation leaders. Equally important are new technologies that emerge as a result of research conducted by universities. On this occasion, it is worth mentioning the synergy between science and business. For Polish economy to be highly competitive, these two spheres must work together. And for all these aspects to co-exist in harmony, the state support is needed, with more promotional activities. Jan Bury, Chairman of Innovations Forum Programme Council, during the official opening of the Forum

The economic benefits

in the context of Poland’s entry into the European Space Agency The discussion panel inaugurating the Innovations Forum in Rzeszów touched upon the issue of Poland’s accession to the European Space Agency (ESA), an intergovernmental

organization, which has an annual budget of about EUR 4 billion and employs over 2,000 people. ESA is an exclusive club of the most developed European countries involved in space exploration both in business and scientific terms. Membership in ESA gives Polish industry new access to the most advanced technology. In addition to direct benefits due to participation in contracts, Polish industry will have access to technologies developed and applied by the ESA. Thanks to Poland’s accession to ESA Polish research institutes and enterprises gained greater access to contracts related to the European space programme. Previously, a portion of Poland’s contribution to the EU budget was used to finance space programmes in which we did not participate. And now we not only can, but we also have to get involved. The European Space Agency’s policy is based on the principle of geographical retur. This means that the country regains about 90 % of its contribution, namely in the form of industrial and scientific contracts, while the other part covers the costs of ESA’s operations and its infrastructural investments. This means that not only can we participate in European space programmes, but we actually have to.

The Polish aviation industry has been for over a century strongly related to the Podkarpackie region. Almost 100 companies operate here as part of the Aviation Valley association, accounting for 90 % of the Polish aviation industry production. There are also institutions located in the region educating staff for the aviation sector, including engineers, technicians and pilots. Poland’s accession to the European Space Agency will pave the way for Polish research institutions and businesses to participate in space projects. An important role will be played in this regard by the local aerospace companies, since they are well prepared for the production of space equipment. To make it successful, the close cooperation is necessary between the local authorities, science and business. The region is open to the challenges of the future and to new ideas. It is a region for ambitious and creative people.

The panel discussion

devoted to Polish space strategy was extremely important. In 2012, the government adopted the “Programme for the development of space technologies and the use of satellite systems in Poland.” Polish space policy is shaped in line with the European space policy. It is very important that Polish companies and institutions participate in joint European spatial initiatives. The aim of the “Programme for the development of space technologies and the use of satellite systems in Poland” is to guide the development of the Polish space sector until 2020. It namely provides for Poland’s greater involvement in the European and ESA’s programmes and projects.

The role of the Podkar-

packie region in the development of Polish aerospace industry

Forum guests

The panel discussion on role of the region in the development of Polish aerospace industry was daringly moderated by Ryszard Łęgiewicz. Among the panelists were: Prof. Assoc. Eng. Witold Wiśniowski., Zygmunt Cholewiński, Mark Ustrobiński, Andrzej Czarnecki, Ph.D. representing Pratt & Whitney, Freddy Geyer from Thales Alenia Space and professor Zbigniew Bochniarz from the University of Washington. The Innovations Forum offered not only panel discussions, lectures and presentations, but also significant networking opportunities. It is also worth mentioning that Business Innovations Awards, initiated by “Polish Market” and presented by Innovations Forum Programme Council and “Polish Market” statuettes, handed out by Jan Bury, Chairman of the Innovations Forum Programme Council, Zygmunt Berdychowski, Chairman of the Economic Forum Programme Council and Krystyna Woźniak-Trzosek, President and Editor-in-Chief of “Polish Market”, went to: 5 - 6/2013 :: polish market :: 41

Innovation

Patrycja Zielińska, Vice- President of the Board of Bumar- for the whole of the company’s activities in the field of innovation, especially in industrial optics technology; Prof. Witold Wiśniowski, Director of the Institute of Aviation – for the Centre for Innovative Air and Space Technologies in Warsaw, created to meet the needs of the aviation industry, with a special consideration of monitoring systems, construction safety and medical engineering; Marta Górak-Kopeć, Member of the Board of PZL Mielec – for the R&D Centre, built for the needs of the aviation industry; Andrzej Czarnecki, Communications Director at Pratt & Whitney Poland -WSK PZL Rzeszów – for the introduction of innovative IT systems facilitating repairs of aircraft engines and document management technology. The 5th Innovations Forum will be devoted to tourism, and its strategic partner will be the Ministry of Sport and Tourism as announced by Katarzyna Sobierajska, Deputy Minister of Sport and Tourism. ::

Gala of the Business Innovations Awards. From left: Prof. Witold Wiśniowski, Director of the Institute of Aviation; Patrycja Zielińska, Vice- President of the Board of Bumar; Marta Górak-Kopeć, Member of the Board of PZL Mielec; Andrzej Czarnecki, Communications Director at Pratt & Whitney Poland -WSK PZL Rzeszów; Krystyna WoźniakTrzosek (Polish Market), Zygmunt Berdychowski and Jan Bury

Pearls of Podkarpacie

zeszów-Jasionka Airport has emerged as one of Poland’s aviation leaders in terms of development. Since May 2012 it has operated a state-of-the-art passenger terminal, which offers plenty of space. The airport traffic control tower has also been completed. Year in year out the Airport has delivered services for a continuously-growing volume of passengers and cargo logistics. Passenger transport reached a milestone in November 2012, when Rzeszów Jasionka Airport saw its 500,000th passenger check-in. Rzeszów-Jasionka Airport has flown high in a number of national competitions and popularity contests, winning multiple awards and honourable mentions. Pasażer.com, an industry website, awarded Rzeszów-Jasionka Airport (jointly with the one in Wrocław) the title of The Friendly Airport 2012. Another feather in its cap was the first prize in the “Technical

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and Public Infrastructure” category won by the new Rzeszów Airport Passenger Terminal in the “EU Pearls of Podkarpacie” contest, organised by the Marshal’s Office, with a total of 40k votes cast. In both past and current investments, the Airport operator has benefitted from EUfunded projects under the Infrastructure and Environment Operational Programme and the Regional Operational Programme. Some of the landmark projects off to a flying start include the construction of the new passenger terminal, the development and modernisation of the airport infrastructure, the redevelopment and extension of the approach-lighting system, the extension of the technical facilities, and the construction of hangars and aprons for aircraft. Direct flights from Rzeszów-Jasionka Airport reach the following destinations:

Birmingham, Dublin, East Midlands, Frankfurt, London Luton & Stansted, Manchester and Warsaw (32 flights a week in the summer season). From late March, the seasonal connections to Barcelona-Girona and Bristol have been re-established. The summer timetable has welcomed new links to Glasgow-Prestwick, Oslo-Rygge, and SicilyTrapani. From 3 September, passengers from Podkarpacie will be able to enjoy the longawaited connections to Rome-Fiumicino and Paris-Beauvais. Regular flight operators on Rzeszów-Jasionka Airport include LOT, Lufthansa, Ryanair and Eurolot. In the summer-holiday period, the Airport invites passengers to take advantage of its chartered-flight packages, available from its reliable tour operators. This year, among holiday destinations on offer you will find Bulgaria, Egypt, Greece, Spain, Tunisia and Turkey. ::

Innovation

A university that aims high

n 14 and 15 May, the Rzeszów University of Technology hosted the Fourth Innovations Forum. It was the fourth time for the event in Rzeszów, but the first – due to this year’s topic – in the Rzeszów University of Technology. The Forum was dominated by issues concerning the aviation and space industries, as well as astronautics. The Rzeszów University of Technology, teaches its students aviation and astronautics, develops and provides solutions for the aviation and space industries, and initiates innovative ventures, the themes of which include space exploration. The choice of the Rzeszów University of Technology as the venue for the Forum was an additional driving force to embrace an analysis of cooperation between science and business in the fields of aviation and space exploration. “To me, the most important thing is to have the University of Technology specialise in something, to distinguish itself with something,” said Professor Marek Orkisz, Rector of the Rzeszów University of Technology, just before debates started. Currently, there are over 17 thousand students enrolled at the university. Its 6 Faculties provide 25 programmes of study, including over 100 specialisations in which we have been observing a growing interest for many

years. One of the most elite is pilotage – the specialisation of the aviation and astronautics degree programme. As one of the few in the country, the university develops civilaviation pilots, and has its own “aviation” research and training base – the Academic Gliding Centre in Bezmiechowa and the Aviation Training Centre in Jasionka, which has been implementing the programme of developing the “Subcarpathian Wings” aviation major, and the project for expanding and upgrading of the Centre, thanks to subsidies from the European Union. The Rzeszów University of Technology teaches future employees able to meet the needs of the economy, but also develops the minds of the students, who undertake numerous initiatives compatible with education in this institution – an example of this is the mission of the stratospheric balloon, the project of the Martian rover, or the model of the Eurolifter, which was prepared for the Air Cargo Challenge 2013 competition – and achieved numerous successes, like the third place at the Fourth International Sumo Challenge Robot Competition for the students of the ROBO Scientific Circle, and first place at the Aerodays international conference in Madrid for the unmanned PR-5 Wiewiór plane built by the members of the Student Scientific Circle of Aviators. The Rzeszów University of Technology is the largest and oldest public technical university in the Podkarpacie Province. This is a dynamically-developing university. As recently as 2012, it carried out two targeted projects and over 200 commissions as part of cooperation with companies, and a significant number of services were based on the preparation of opinions on the levels of the innovation of implementations, development of products or technologies. The

Prof. Marek Orkisz, DSc, PhD, Eng, Rector of the Rzeszów University of Technology

leader in providing such services is the Laboratory of Studies of Materials for the Aviation Industry, which signed almost 70 contracts last year. The Rzeszów University of Technology is also an important member of the Aviation Valley Association of Entrepreneurs of the Polish Aviation Industry, which encompasses over 100 companies operating in the field of aviation from Poland, and the leader of the Aero Net – Aviation Valley Centre of Advanced Technologies consortium, which brings together 12 universities and research institutes from the entire country. Implemented in the course of this cooperation, the project entitled “Modern material technologies applied in the aviation industry” enabled the Rzeszów University of Technology to win the “Quality of the Year” contest in the category of scientific and research projects, and receive the “Quality of the Year. Gold” title in 2012. All this shows that the university is successfully developing – the plans include the creation of a new degree programme space engineering – building on the tradition, it shapes the future. ::

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Innovation

We should appreciate Poland and our achievements Jan Bury, Chairman of the Programme Board of the Innovations Forum, Vice-Chairman of the Parliamentary Group on Space, talks to Ewelina Janczylik- Foryś about the Fourth Innovations Forum in Rzeszów and plans for next year.

such projects, projects sent into space, sent by rockets and circling the Earth. We have much to offer? We are not as powerful as the United States or Russia. Not today, but Russia and the United States of America also had to start somewhere. We are not starting from seratch, because our universities have aviation faculties, civil engineering faculties, engine construction faculties, etc. This means that we have the educational programmes and profiles, which educate engineers and specialists in the field of space. The Aviation Valley will invest approximately USD 1 million in new production lines and create about 3,000 new jobs associated with the space industry. In several years, we will be able to reach the level of the French, Germans, British, because we have to compete with those holding comparable technologies. pm

The Fourth Innovations Forum is over. Can you please summarise it? The idea turned out better than we expected. I will not hide the fact that we planned the Forum dedicated to the aviation industry and space with a certain anxiety. In this case, while there were no worries concerning the aviation industry since the Podkarpackie region is the cradle of aviation, it was not as easy when it came to space. pm

The region is mostly known for its Aviation Valley. Yes, which is confirmed by one of the panel discussion, where not only we were boasting of our success, but were praised by foreign guests. This is important. The region with 90 % of Polish aviation production can easily be compared with the Silicon Valley. This is actually a region where in every other houschold someone has worked, is working or will be working in the field of aviation, which is visible. But the space industry might really sound “way out”. It would seem that we do not have any experience in this field and must use the good will of other partners. However, as it turns out, institutions in Poland such pm

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as the Polish Academy of Sciences, the Space Research Centre, the Aviation Institute, the Military Institute of Aviation Medicine, the universities in Warsaw, Wrocław, Poznań, and Rzeszów have strong teams of scientists well-specialised in the area of space. The special guest of the panel discussion during the first day of the Forum was Scott Parażyński, an American astronaut of Polish descent, who has already been in space several times and is a fantastic person filled with passion. However, in the case of the Polish space industry, we should not forget about the assistance of our friends from the European Space Agency, the work of the Polish Parliamentary Group for the issues of space, and the Ministry of the Economy, which are responsible for the Polish space strategy. Poland’s entry into the European Space Agency was a great step forward. I believe that during this year’s of Innovations Forum we told ourselves: “Our own space industry – yes, it is possible.” I am convinced that by 2015 or 2016, Poland will be one of the top five partners in the European Space Agency. A partner who will propose own solutions, own patents, own ideas, as well as a realistic share of our industry in

What can we expect from, the Fifth, Innovations Forum next year? Are there any plans? The Fifth Forum will be dedicated to tourism and innovations in the industry, as well as agritourism and ecotourism. The strategic partner will be the Ministry of Sport and Tourism, therefore the presence of Katarzyna Sobierajska, the Vice-Minister of Sport and Tourism. I believe that this is an area we feel has already been discovered but is unattractive. Poles would rather go to southern Europe or visit other European countries, and they do not appreciate Polish tourist values. From the north to the south of the country, we can have a great time everywhere. We also have the wealth of our agritourism, landscapes, cuisine. We have an amazing cultural and sacral heritage, not only beautiful towns and cities. We have fantastic things to offer, but we do not know how to sell them, and this is a very prosperous industry. :: pm

Innovation

Innovation comes first Mayor of Rzeszów Tadeusz Ferenc talks to “Polish Market”

The Innovations Forum in Rzeszów is behind us. How would you summarise this event? What benefits has it brought to the city? For Rzeszów and the Podkarpackie region, innovation is a great opportunity for development. A few years ago, when we decided that our promotional slogan would be “Rzeszów – the Capital of Innovation”, many people smiled with surprise and said we were trying to bite off more than we could chew. No one is thinking like that today, and the fourth Innovations Forum in Rzeszów only confirms the fact that Rzeszów is a city of innovation. We are destined for success, thanks to the open minds of entrepreneurs, higher-education institutions, and institutions searching for innovative solutions. The main topic of the Forum was astronautics. It may seem that this is a distant subject, but the changes in technology going on right before our very eyes are happening so rapidly that we have to think about space today.

Interactive Picnic of Knowledge” in Rzeszów, the fourth edition of which will take place on 8th June of this year. Besides the promotion of science and technology, the event promotes the interactive model of knowledge transmission and informal education.

During the Forum, Mr. Jan Bury, the Chairman of the Programme Council of the Innovations Forum, mentioned several times that the Innovation Town, which was created in relation to the event, would stay in Rzeszów for a longer period. What are the chances of creating a second Copernicus Centre, this time in your city? From the very beginning, the Innovation Town gathered great attention from the Forum’s participants, and mainly among the young. The exhibitors want to show their latest accomplishments. This is the place to see innovative solutions from numerous fields. The crowds which have passed through the town are proof that there is great interest in the promotion of science. For several years, EXPLORES Association and POLIMEDIA Firm are organising the “Day of Discoverers.

What investment project are you planning in the near future? The implementation of the so-called “Transport Programme” valued at approximately PLN 415 million, is under way. In the near future, we are planning to purchase another batch of new buses, and we will also begin the construction of car parks on the outskirts. We are preparing the installation of an intelligent transport system. This year, we will also begin the construction of a new road and a bridge on the Wisłok River from the Kuronia roundabout to Lubelska Street. The construction of the new southern ring road from the S-19 Kielanówka junction to Sikorskiego Street will also be very important to the city. We are also beginning the construction of the road to the economic zone. We are counting that Rzeszów will once again expand starting from 1st January. We already hold the positive opinion of the governor, and we are awaiting the decision of the Government. pm

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Everyone knows the slogan promoting Rzeszów – “Rzeszów, the Capital of Innovation”. Its popularity is certainly influenced by enterprises. How do you support entrepreneurs and business? Rzeszów’s promotional slogan is mostly based on the innovative industries which are located in Rzeszów. The local entrepreneurs are extremely important to us – they are the reason for the great development of our city. The most important activities include the trips to trade shows abroad. We have been going to the ILA Berlin Air Show and the Le Bourget Paris Air Show aviation fairs, together with the Aviation Valley Association of the Entrepreneurs of the Polish Aviation Industry, since 2008. We have taken part in trade missions organised by PAIiIZ, together with pm

the entrepreneurs of the IT, food and plastic product industries, and we also organise industrial conferences. Our entrepreneurs go to cluster conferences as part of the Cluster COOP international project implemented by the city. These meetings allow us to establish trade contacts, as well as to gain new investors – such activities have brought several new companies to Rzeszów. The trade shows are not the only such activities. Each quarter, we meet our entrepreneurs to learn of their needs. In April, Rzeszów hosted the representatives of Gainesville, our partner city in Florida, USA. During the meeting with the entrepreneurs, they presented proposals for trade cooperation among our city’s companies. I am searching for ways to support our enterprises at every step. We now know that Rzeszów can boast a great number of students. A while back, the idea of creating the Little Rzeszów University for children was born in Rzeszów. Could you say something more about this project? Rzeszów is the birthplace of numerous initiatives, which bring the kids into the world of science and innovative technologies. The Little Rzeszów University of Technology has been active in the Rzeszów University of Technology for several years. It is addressed to children aged 6 – 12, who take part in lectures organised by the lecturers at the Rzeszów University of Technology, and external experts. Near the end of May last year, the Little Rzeszów University was launched to promote science and arts. The classes aim to develop the curiosity of the children, promote education, and encourage learning about the world. Both projects are extremely interesting and I am glad that our universities and local companies get involved in such ventures. The fact that Rzeszów has the highest proportion of active students in Europe – this was published by Eurostat, in March of this year– is very pleasing. There are 353 of them per every 1000 residents. :: pm

Innovation

Space as an important part of the economy Prof. Marek Banaszkiewicz, PhD, Marta Wachowicz, PhD

hy do we study space? Firstly, because it brings benefits to our society. Intercontinental telephone conversations, and reliable communication with ships and airplanes are the results of the development of satellite telecommunications. Also, thanks to satellites we can easily find our way to any address in the world using GPSbased maps. Investments in systems for observing the Earth bring us easily-accessible weather forecasts based on data from meteorological satellites and Google Earth satellite maps. Secondly, because satellite systems provide global security against an insane assault using ballistic missiles and against the negative impact of space weather and threats caused by space junk and asteroids on a collision course with the Earth. Thirdly, because it satisfies our cognitive curiosity. Space probes send us data about distant places in space, thanks to which scientists can attempt to answer essential questions on such issues as the genesis and evolution of the universe, and the operation of the most fundamental laws of physics. In the foreseeable future, the exploration of the Solar System and the observation of planets revolving around other stars, might help us elucidate such issues as the origin of the planets and the source of life. Space exploration also transforms the way we see Mother Earth and provides a different frame of reference that takes into account global environmental changes. In European countries, the space-studies sector is a strategic field, as it is a contributor to national defence and security. In space exploration both the political and economic aspects need to be stressed. A boom for space studies came in the second half of the 20th Century, and is believed to have originated with the launch of the Earth’s first artificial satellite in 1957. It is true that we are now long past the Cold-War era and the fierce rivalry in all fields between the USA and the USSR, which led to spectacular achievements in the field of space exploration. However, a closer look at the current global economic situation,

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including the roles of China and India, shows that space studies are becoming a crucial stimulus for growth and a means of achieving a good position on the international stage. The exploration of distant worlds, the observation of cosmic phenomena, and the development of space instruments and devices constitutes a major challenge for various fields of science and technological development. The requirements placed on instruments built specifically for space missions are very high, and due to the extremely difficult and distinct conditions encountered in space, these products must comply with stringent technical standards and employ original engineering solutions. Space studies are also unique when compared to other fields of study because of the very high costs of conducting research and investments, the special requirements of space-technology solutions, and the need for a dedicated infrastructure and highly-specialised engineers. The process of developing devices for space exploration is lengthy and requires the involvement of interdisciplinary teams. Devices for space studies and for the construction of satellite systems must measure up to structural and durability standards, which measure up to the extreme – from the Earth’s point of view – conditions of outer space. Very low temperatures and a high temperature gradient, depending on such factors as position in relation to the Sun, vacuums, different gravitational fields, cosmic-dust pollution, strong cosmic radiation – all these are ultimate tests for devices on space missions. All instruments, devices, and components are designed, tested, and installed with extraordinary precision, using specialist and dedicated equipment and under strictly-controlled conditions (as space engineering requires maximum durability). These are the main reasons why space technology, and its devices, components and applications provide such great potential for use on Earth as reliable, proven and innovative solutions. The Space Research Centre of the Polish Academy of Sciences (CBK PAN) is the only

institute in Poland whose entire body of activities is connected with studying circumterrestrial space, the Solar System, and Earth, using space and satellite technologies, as well as developing space devices. Since the Centre’s establishment in 1977, the institute’s research and engineering groups have built devices for and participated in experiments in over 50 space missions. Over the last twenty years the institute has participated in such important space endeavours of the European Space Agency missions as Cassini-Huygens, Mars-Express, Venus-Express INTEGRAL, Rosetta, Herschel, and Bepi-Colombo, the Russian Space Agency missions KORONAS-F, KORONAS-I, KORONAS-FOTON KORONAS-FOTON and Phobos-Grunt Russian Space Agency, or missions DEMETER and TARANIS of the French Space Agency. The Centre is also co-operating with NASA on the IBEX mission, and with India on the Chandrayaan mission. The contribution of CBK PAN to the Innovation Forum in Rzeszów makes reference to a new stage in the development of Polish space activity connected with Poland’s accession to the European Space Agency. We want to show how important space studies are for the economy and social development. The great potential of research and development, its innovative nature, and the high quality of space products finding applications on Earth – all this makes the space segment a driving force for the advanced technologies sector. CBK PAN is presenting the measurable benefits of satellite applications, including security, the monitoring of environmental changes, and satellite telecommunications. The Innovation Forum will serve as an excellent opportunity to present such activities of the institute as the use of satellite technologies in the monitoring of land surfaces and satellite observation of the EU’s borderlands, the use of GPS in crisis situations, the creation of integrated applications, and participation in European programmes for detecting and preventing cosmic threats. ::

Innovation

International cooperation is not always easy Franco Bonacina, ESA, Spokesman for the Director General

How did the idea come up of instituted an intergovernmental organization dedicated to the exploration of space? To answer this question let me recall a bit of “history of ESA”. After the Second World War, many European scientists had left Western Europe to work either in the United States or the Soviet Union. Although Western European countries could still invest in research and spacerelated activities, European scientists realised that solely national projects would be unable to compete with the major superpowers. At the end of the 50’s, Pierre Auger (from France) and Edoardo Amaldi (from Italy), two prominent members of the scientific community, recommended that European governments set up a ‘purely scientific’ joint organisation for space research taking CERN as a model. In 1960-1961 the Commission préparatoire européenne de recherches spatiales (COPERS) defined a scientific programme, an 8-year budget and administrative structure for the envisaged European Space Research Organisation (ESRO). In 1964 European nations decided to have two different agencies, one, the European Launch Development Organisation (ELDO), to develop a launcher -called Europa and originally launched from a launch site in Australiaand the other, the European Space Research Organisation (ESRO), to develop mainly scientific satellites . In 1966 ESRIN was set up as part of ESRO in Frascati, near Rome, Italy, and began acquiring data from environmental satellites in the 1970s. ESRIN is now known as the ESA Centre for Earth Observation, and is one of the five ESA specialised centres situated in Europe. In 1967 the Space Operations Centre (ESOC) was set up in Darmstadt, Germany. It has controlled and operated more than 60 pm

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satellites in almost 50 years of history. In 1968 ESTEC, the largest establishment of ESA and its “technical heart”, was set up in Noordwijk, near the Hague, in the Netherlands. ESRO is a very successful organization and soon established itself as a leader in space exploration, ELDO unfortunately suffered technological problems (the few Europa launchers that attempted lift-off were never successful), cost overruns and political dispute. The idea of a new single European space organisation was first discussed in 1972. ELDO was eventually downsized and dismantled in 1974. In 1975 ESA took its present form, merging ELDO with ESRO. There were 10 founding members: Belgium, Germany, Denmark, France, the United Kingdom, Italy, the Netherlands, Sweden, Switzerland and Spain. Ireland joined later in the year. In 1978 Canada became a Cooperating State. ESA is now a true “success story”. In 2014, ESA will celebrate its 50th anniversary and in almost 50 years of existence, ESA has doubled the number of its member states with Poland being the most recent “newcomer”. On 13 July 2012, ESA member states unanimously approved the accession of Poland to the ESA Convention. Poland started an internal ratification process and became the 20th full-fledged ESA Member State on 19 November 2012 just before a milestone ESA Council Meeting at Ministerial level held in Naples, Italy. The first satellite entirely designed and built by Poland, is today orbiting Earth after the successful maiden flight of ESA’s small Vega launcher in early 2012. Vega carried nine satellites, seven of them built by European universities. This group of ESA-sponsored educational CubeSats included PW-Sat from Poland , Goliat from Romania, and Masat-1 from Hungary.

Presently, the ESA has 20 members. What are the rules to join the organization? To allow a smooth process for new European countries that wishe to become ESA Member States, the Plan for European Cooperating States (PECS) was set up. The plan is designed to help particularly those countries that joined the EU after 2004. PECS is helping to stimulate relations with interested European countries, to expand their overall scientific and industrial base and to enrich ESA as a research and development organisation. To be a PECS candidate, a country must first have signed a Framework Agreement with ESA. If a country wishes to participate more fully with ESA, a European Cooperating State (ECS) Agreement is drawn up. The ECS Agreement, which allows a country to participate in ESA procurements and activities, should be complemented within a year by a PECS Charter, a five-year plan jointly agreed between ESA and the country concerned. During those five years, the country performs a number of activities, mostly in research and development, to help it develop expertise within its space industry. The five years spent under the PECS Charter enables a country to increase its knowledge of ESA and develop its space industry system, thus improving its chances of winning contracts. At the end of the five-year period ESA will assess the progress made and decide whether the country is ready to become a full member of ESA or whether another five-year plan should be drawn up. pm

We are proud, that we belong to the ESA. It’s a big chance for Poland. But, what do you think about that? Can Polish technology support the ESA? We are indeed very happy that Poland is today part of the ESA family. Poland’s cooperation with ESA is long-standing. In 1994, pm

Innovation

Poland was one of the first Eastern European countries to sign a Cooperation Agreement in the field of the peaceful use of outer space with ESA. A second step, the signature of European Cooperating State Agreement in 2007, paved the way for the Polish participation in several ESA research projects. Poland has a long aerospace tradition and has contributed to many scientific and technological projects. Poland has participated actively in several ESA science missions, such as Integral, Rosetta, BepiColombo and Solar Orbiter, and in Earth observation activities with Envisat and GMES. It is also working on ESA microgravity and exploration programmes, on EGNOS for navigation and on the Space Situational Awareness Programme (focusing on space weather), as well as in technology activities and educational projects. As I mentioned above, PWSat – the first Polish satellite, was launched by a Vega rocket in February 2012. ESA is made up not only of the European countries, but Canada, too. How is the cooperation with other countries like? One of the strengths of ESA is indeed International Cooperation beyond the boundaries of Europe. Knowing very well how to cooperate within Europe, it has been easy for us to “cross the borders” and go beyond the boundaries of Europe. Long-lasting partnerships established have been with the USA, Russia, Japan, India, China, South Korea. Cooperation exists also with South American, African and Asian countries and Australia. Let’s start with Canada: ESA and Canada have enjoyed a 30-year partnership that has led to many successful space projects. They have joined forces in telecommunications, Earth observation and Global Monitoring for Environment & Security (the GMES/Copernicus porgramme); navigation (Galileo) and related technologies, such as the General Support Technology Programme. The benefits of the ESA–Canada relationship extend beyond good cooperation between the two space agencies. European and Canadian companies have forged strong alliances, creating teaming arrangements and opportunities for new markets. The scientific and academic communities have developed a close relationship of their own that has enabled, for example, cooperation in utilisation of the International Space Station or the current discussion on the use of space data and services for the benefit of Arctic regions. “Beyond Europe: Cooperation with NASA” dates back to the origin of ESA. We have done many satellites together –and we still do- and we are Partners in the International pm

space station together with Russia, Canada and Japan. ESA and NASA have produced remarkable missions and space hardware like Spacelab, the laboratory that flew inside the Space Shuttle, the Hubble Space Telescope to study the origin of the Universe, Ulysses to study the Sun and its environment, and many many more. Russia is also a very strong partner: we have developed long- lasting ties in scientific missions, human spaceflight (first with the space Station MIR and then on the International space station). We are using Russian built Soyuz and Proton launchers for several of our spacecraft and Soyuz launchers are also currently launched from the Guiana space centre, the European Spaceport in French Guiana, alongside Arine 5 and Vega launchers. The future exploration of Mars with the ExoMars missions of 2016 and 2018 will be done in cooperation with Russia and then we will go on with joint missions to reach other planets like Mercury for instance.

The two ExoMars missions will investigate the martian environment, particularly astro-biological issues, and develop and demonstrate new technologies for planetary exploration with the long-term view of a future Mars sample return mission. ESA will provide the Trace Gas Orbiter (TGO) and the Entry, Descent and Landing Demonstrator Module (EDM) in 2016, and the carrier and rover in 2018. Russia’s space agency Roscosmos will be responsible for the 2018 descent module and surface platform, and will provide launchers for both missions. Both partners will supply scientific instruments and will cooperate closely in the scientific exploitation of the missions. Cooperation with Japan is also rather strong. India is also one of our partners together with South Korea. We have also shared some of our science missions with China. International cooperation is not always easy but it proves to be a winning exercise, the best tool to get where no single nation alone can get. :: 5 - 6/2013 :: polish market :: 51

International relations

Change the climate in Poland Zbigniew Bochniarz, PhD, University of Washington’s Evans School, talks to Błażej Grabowski.

The 4th Innovations’ Forum has been held recently in Rzeszów. How do you rate this conference and the place of the Podkarpackie region on the Polish and European map of innovation? I think the Podkarpackie region has taken a huge leap forward. It is still a relatively poor region by European standards, and it based its development on the industries that offer high value added, and therefore ensure faster growth than in other regions. Only investing in people, in unique services and products brings significant profits, which can be seen in the quality of life. Podkarpackie has invested in the development of the aerospace industry by capitalizing the aviation industry, whose beginnings date back to the 1930s. It also managed to gain a foothold in the global supply chain, which is a big achievement. The subsequent investors are at the door. This is a good example not only of business leadership, but also of the fruitful cooperation between the public administration, local governments and particularly with the municipal government led by the mayor. Rzeszów is the showcase of the whole region as far as it demonstrates how a poor provincial town can be converted into a modern European city, with green areas, a well-organized transport network, smartly rebuilt and maintained old town and a large number of investors. Another very important characteristic of the Podkarpackie region is an excellent cooperation of academic community with their business and public partners. Rzeszów University of Technology and other universities and colleges are strongly involved in regional economic development, by contributing not only new human capital, but also new technologies. One of the major drives of the region’s development is the Aviation Valley, an industrial cluster whose establishing was facilitated by EU regional funds. However, unlike many Polish clusters, which were often either “a jump for money” or a waste of money (according to PARP report), the Aviation pm

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Valley was created organically from the bottom up, even before the cluster initiative had emerged. For that reason it could serve as a role-model for other clusters in Poland. The strength of the aviation cluster and its relatively strong competitive position comes not only from human and technological capital but also from the exceptionally strong (in Polish conditions) social capital based on mutual trust and cooperation of major stakeholders. This way it offers vast development opportunities for the whole region, in addition to strengthening Poland’s competitive position in Europe. I think that the Aviation Valley serves as an inspiring example for the new EU members and contributes to boosting the competitiveness of the entire European Union. For many years you have been assisting Polish institutions, entrepreneurs and scientists in establishing contacts with their counterparts in the United States and in Western Europe. On June 13-14 Wrocław Global Forum will be held, a conference dedicated to relations between the European Union and the United States. How is Poland perceived in the United States, especially today, in times of crisis? Do American companies see the point in investing in Poland, opening its representative offices or making business contacts? I have lived in the United States for almost 28 years and I always encouraged American companies and American politicians to come and invest in Poland. Living for 22 years in Minnesota I had an opportunity to facilitate a trade mission to Poland, which was very a successful few years ago. Poland is an attractive country with its rich history and continuously growing economy, but also an interesting trade and investment market for many American corporations. Many of those who had invested have achieved high returns. The Aviation Valley, which I mentioned earlier, is recognized and visited by numerous pm

delegations. What is interesting is that Polish companies come to the United States not only to look for investors, but recently they seek investment opportunities. They want to buy small American companies because they need them as a bridge, as a starting point to market their products and innovations. I hope that this new trend will continue. It is depressing when I hear Polish politicians “advertising” Poalnd saying that “we are cheap”. It is not the way to make Poland a wealthy nation. We will not win wage competition with China because they are already losing this type of competition with Vietnam, Laos, Indonesia or Cambodia. This is the wrong way. The only way goes through innovation, by offering unique products and services because these have the highest value added and as such could get the premium prices. I think that in the Podkarpackie region business people, politicians and universities realize it better than ever. And this is the right direction for the whole of Europe, not only for Poland. Of course, European countries are at different stages of development, therefore each of them should find its own market niche. It is often difficult to create new original products or services, but competitive advantage in the 21st century relies not only on the original innovation, but also on the original use of already existing solutions. This is precisely a chance for Poland. Another issue is education, which is still mainly teacher-centreed and knowledge dominated with insufficient allocation of time for development of practical skills and social competences in Poland and Europe alike. I think that the focus should be on students-centreed education with a significant time invested in building practical skills – both technical and soft –and attitudes, which will lead to better communication and cooperation and this way to enrich social capital, which is poor in this part of Europe.

International relations

In addition to the scientific work, you conduct training programmes for entrepreneurs, managers, and local communities. Do you notice big differences between Polish entrepreneurs and their American colleagues, especially when it comes to doing business? What should Poles and Europeans change at home? The issue is very complex. As far as innovation is concerned, Poland still drags behind. There are many reasons for that. First, there is human capital, in terms of which we beat the world’s most competitive economies, such as Switzerland or Singapore. In other words, we have better indicators of human capital in international comparisons. Yet these are quantitative indicators that unfortunately do not translate into quality. The question is whether we educate properly. How many people with a university degree are able to contribute to the development of innovative products? Do we have the right proportions in enrollment structure in academia that is needed in innovative economy? As far as I understand, there is a shortage of engineers, ICT specialists, chemists. The fact that mathematics was taken off from the final high school exam (matura) will be taking its toll for many more years in Poland. What matters is the structure of human capital and its quality. Andrzej Klesyk, the President of PZU, once wrote: “We do not produce unemployment.” The problem is that what the economy needs and what Polish universities teach is completely divergent. Polish universities are governed under old almost feudalistic rules. Unfortunately, with the existence of professors’ democracy and the habilitation requirement people stay in disciplinary “siloses” and are reluctant to interact with each other cross disciplines, and this way resolve practical problems, which are mainly multi-disciplinary. Vocational education is underestimated, too. We need more well-prepared manual workers; qualified production line workers will always be much in demand. Knowledge is aging rapidly. What is the point of charging students with so much knowledge if what professors teach is often outdated? Students can today use the Internet to listen to lectures on line at the highest level from the world’s best universities. Things are repeated that are unnecessary, redundant, and do not build any skills. Instead, students should be taught how to apply knowledge. Professional problems are complex. It is necessary to get various specialists involved: psychologists, sociologists, pm

engineers, doctors. But then you will see that people do not want to share knowledge and collaborate. And solving problems is of paramount importance in order to be competitive. We need to promote the culture of cooperation, to build a social capital through networking and clustering. Human capital will be wasted if not coupled with an adequate level of social capital. Clusters are based precisely on social capital, which means that companies share knowledge and work together being still competitors. There is one more factor. Poland’s business has taken a giant leap in investing in human capital. Comparing the level of Polish and American businessmen, especially in large companies - presidents or CEOs of the largest Polish companies do not differ in any way from their American counterparts. They have often comparable knowledge, skills and charisma. Unfortunately, this is not the case with the vast majority of public administration officers. For many years, there has been a growing educational gap between business and public administration, creating barriers against improvements in efficiency and competitiveness and thus hindering economic development. A radical change is needed here, which, if not made, will make it impossible to unleash the enormous human potential in business either.

The conclusion is that the importance of the global Climate Change agreement should not to be overestimated, and the local and regional initiatives should be taken into accunt. Now is time for Poland to get involved in the development of lowemission economy. At the beginning of the transition period the country was very polluted, but due to smart governmental policies and institutions, not only major pollutants were reduced but also over 200,000 jobs were created and Poland became one of the leading exporters of products and services related to environmental protection. It is wrong to believe that nothing can be changed because Poland is a coal-dependent country. Switching towards environmentally friendly industry will prove advantageous. Some people think that shale gas or nuclear energy will be a miracle cure for energy and climate problems, but in fact it will not help at all if we do not start with the low hanging fruits, with saving energy and improving energy efficiency. We have to take care of the practical things. There is no public serious discussion on how the climate changes in Poland. It would be good if the issue is raised during COP19, involving with broadly defined business, and not just energy corporations. Let us hope thanks to this conference we will be able to talk about it without taboo. ::

In November, Warsaw will host the UN Climate Change Conference COP19. In what way does it matter that this conference will be held in Warsaw? Should any crucial environmental decisions be expected? I am happy that you asked this question, because I am very committed to environmental economy. Environmental protection is one of the most dynamic markets, with the annual growth rate of 10-15%. The topic is unfortunately not sufficiently debated in Poland. In the United States, in the Washington State where I live now, the climate change policy was approved about 15 years ago contributing not only to environmental quality improvemennts ant also to establishing thousands of “green” jobs. The mayor of my city - Seattle, upon consultation with businesses and the local community, launched in 2005 the slogan saying “To meet and beat the Kyoto Protocol,” and urged other cities to do the same. In 2010, my city reached our assumptions of the Kyoto Protocol. At the moment, nearly 1,500 cities joined the programme and they reduced more than 30% of the US obligations of green gases reduction by 2012. pm

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International relations

Wrocław Global Forum 2013 Jan Kulczyk, a businessman, Herbert Wirth, President of KGHM Polska Miedź S.A, Mateusz Morawiecki, President of BZ WBK S.A., and many other eminent guests. The meeting will be hosted by Rafał Dutkiewicz, Mayor of Wrocław, and organised by the City of Wrocław, the Atlantic Council, and the Polish Institute of International Affairs (PISM).

The Atlantic Council Freedom Awards

values, and providing security in the face of global challenges. Among the speakers at the Forum’s previous editions were Bronisław Komorowski, President of the Republic of Poland, John McCain, American Senator, Horst Köhler, former President of Germany, Vitali Klitschko, leader of the Ukrainian UDAR Party and former World Heavyweight Champion, former Presidents of the Republic of Poland Aleksander Kwaśniewski and Lech Wałęsa,

It is already for the fourth time that Wrocław will host, on June 13-14, leading European and American politicians and intellectuals at the Wrocław Global Forum 2013. The Wrocław Global Forum is always up to date and discusses here and now key issues regarding the international and transatlantic relations. Judging by the names of participants, the conference promises to be extremely interesting. The highlights of this year’s WGF include the following: transatlantic partnership, struggle for democracy in the world, global security, the world’s political crisis, oil markets and international financial markets. Previous editions of the Wrocław Global Forum created a unique opportunity for the leading European and American politicians, businesspeople and intellectuals to discuss the future of the transatlantic relations. And it will be no different this year. Topics of the Wrocław Global Forum 2013 will traditionally focus on the transatlantic partnership and its impact on political and business developments in Central and Eastern Europe. The Forum will be organized on the basis of three pillars: security, democracy and economy. Hundreds of visitors from all over the world will come to Wrocław: presidents,

prime ministers and ministers, politicians, diplomats and intellectuals, including Polish Foreign Minister Radosław Sikorski, former President of Poland Aleksander Kwaśniewski, former Prime Ministers Tadeusz Mazowicki and Jan Krzysztof Bielecki, Turkey’s Deputy Prime Minister for Economic Affairs Ali Babacan, former U.S. Ambassador to Poland Lee Feinstein, President of the Freedom House David Kramer, an independent energy expert, Nick Grealy. Traditionally, individuals and organizations that have contributed to the expansion of freedom and civil liberties will receive the Atlantic Council Freedom Awards. These will be presented, during a gala hosted jointly by the U.S. Ambassador to Poland Stephen D. Mull and Polish ambassador to the U.S. Ryszard Schnepf, to the European Humanities University in Belarus, to a Pakistani activist, Malala Yousafzai and to the former Polish Prime Minister Tadeusz Mazowiecki. A special posthumous award will be conferred on the former U.S. ambassador to Hungary Mark Palmer. I am not in a position to assure you that we will solve in Wrocław all the problems facing the world, but I want our city and our Forum to actively participate in this process.

Rafał Dutkiewicz Mayor of Wrocław

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Photo: Wrocław City Hall

or the fourth time now, Wrocław Global Forum is going to bring together political leaders, experts, and outstanding people from the world of business, who, for the two days of the Forum, will discuss the changing role of Central Europe both as a European player and a global partner of the United States. This year, the Forum will focus mainly on the methods of building a strong and resilient economy, promoting democratic

Like every year, the capital of Lower Silesia will see the granting of the prestigious Atlantic Council Freedom Awards honouring illustrious persons who fight for peace and the development of democracy in the world. Starting from 2010, the awards have gone to, among others, Jerzy Buzek, Javier Solana, John McCain, Władysław Bartoszewski, Las Damas de Blanco, Esraa Abdel Fattah, and Emma Bonino. In 2013, the prize-winners will include Tadeusz Mazowiecki, The European Humanities University (EHU) and Malala Yousafzai. ::

Invest in Katowice Special Economic Zone The Katowice Special Economic Zone (KSEZ) provides unique conditions for industrial and BPO/ R&D investors. Located in Poland’s most investment-attractive southern region Silesia, KSEZ offers investors public aid in the form of CIT reliefs equaling 40-70% of investment costs or 2 years of labour costs. The tax reliefs granted to KSEZ investors are in keeping with EU law. KSEZ is the leader among Poland’s 14 special economic zones with over 200 investors on its territory. Jointly the zone’s operators have invested EUR 4,8 billion, providing around 50 thousand jobs.

UJAZD

Sites offered to investors: • • • •

1 ,000 hectares of land Plots from 0.5 to 200 hectares Plots adaptable to investor needs Close to main national and European transport routes, convenient access; water, power and gas supply, as well as sewage disposal • Class A office building in Katowice

KSEZ closed last year with a good result – twenty six new investment projects to the tune of EUR 375 million, which will offer around eight hundred new jobs. In 2012 the Katowice Special Economic Zone was placed by the Business Financial Times FDI best economic zone ranking in second place in Europe and eleventh worldwide. Among the zone’s investors are GM Opel, Isuzu Motors, TRW Polska, Roca, Guardian, NGK Ceramics, Capgemini and Steria.

ZABRZE

TUCZNAWA

KSEZ also offers a unique opportunity — plots exceeding 100 hectares: • Ujazd – over 200 hectares on the border between the Śląskie and Opolskie provinces, adjacent to the A4 motorway. • Zabrze – 100 hectares, 4 kilometres from the A1 motorway. • Tucznawa – over 100 hectares close to Dąbrowa Górnicza, 6 kilometres from the DK1 trunk road, 24 kilometres from the A4 motorway.

For more details: www.ksse.com.pl

Katowice Special Economic Zone Co. Poland 40-026 Katowice, 42 Wojewódzka St. tel. +48 32 251 07 36 ksse@ksse.com.pl • www.ksse.com.pl

International relations

More than a hotel

“

The dynamic change in the way businesses are run means the need to offer a wide range of entertainment by present-day hotels,” says Justyna Ludwin, President of the LEO group, which owns Kliczków Castle, Tumski Hotel in Wroclaw, Barka Tumska Restaurant and Prince Manor Farm in Kliczków near the city of Bolesławiec. “We assume that a modern hotel today is not only a place where you can rest in a comfortable environment, hold a conference or eat well. This is also, or is especially so, a place promoting culture, a broad concept which is intended to attract whole families, friends and business groups to spend their time in an active way. In our programme you can find educational and also sports and cultural packages,” says Ludwin. Kliczków Castle and Tumski Hotel in Wroclaw have been the leaders of this innovative approach to the hotel trade for years. Only there are you offered a full spectrum of attractions and happenings which are arranged in a systematic and consistently-run schedule of events which is being continuously enriched with new options. So in Kliczków you can participate in the unique Knights’ May Picnic, spiced up with armour shows, knight

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fights,Mediaeval dances and juggling shows. You will also have a chance to participate in the annual carnival equestrian gala or to savour the most exquisite delicacies of the local Lower Silesia Wilderness cuisine during the open culinary “What a Pâté!” competition. All these attractions take place under the aegis and on the initiative of Kliczków Castle. Similarly, Tumski Hotel has been preparing and expanding its package with new propositions, paying special attention to the still-evolving needs of the customers. In cooperation with the Botanical Garden in Wroclaw Tumski Hotel organises the already extremely-popular Tumski’s May Picnic, where there are live music, a natural food and handicrafts fair, and many attractions for the youngest. The Dragon boat race, known as the Tumski Cup, is an annual sports event featuring representatives of educational, cultural and administrative institutions, as well as business people, cutting through the rapid waters of the Odra River in one-ofa-kind boats. Another place worth mentioning in the context of a creative approach towards the needs of customers is Barka Tumska, a barge moored at Tumski Hotel. It is the

only restaurant in Wrocław on the Odra River which serves not only delicious Mediterranean cuisine, but also offers educational cuisine called “Tastes and Flavours”, during which delicious food from different cultural areas is presented – each month a different area. Live music is frequently played aboard the charming Barka Tumska, with classical or jazz music concerts. The most excellent service has been the domain of both Kliczków Castle and Tumski Hotel. A huge conference area, with seven varied conference rooms as well as excellent road connections (the nearby A4 and A18 motorways and the expanded Wroclaw Copernicus Airport) attract customers from all over Europe to the castle in the Lower Silesia Wilderness. The peace and quiet and the location in the heart of the wilderness allows you to focus on the essence of your training, symposium or conference. Exquisite cuisine, the Wellness Centre and the pool in the old equestrian arena will let you escape from the hustle and bustle of city life. This year Kliczków Castle has expanded its conference and holiday programme with the newly-restored Prince Manor Farm. This place is used for integration training and trips, as well as educational workshops and field schools. The Tumski Hotel enjoys enduring popularity among business clients and individuals. Two well-equipped conference rooms, location in the heart of historical Wrocław, ideal road connections, wide culinary range (Barka Tumska Restaurant and the Mill Inn in Tumski Hotel) and the vast array of attractions wrapped in holiday packages, is the Tumski Hotel recipe for success. The package of Tumski Castle and Tumski Hotel affords leisure and entertainment at the highest level without the need to move away behind the welcoming walls of the castle or the area of Wrocław’s Ostrów Tumski (Cathedral Island). “The philosophy of openness towards the needs of various groups of customers has accompanied us since the very beginning of our business,” says President Justyna Ludwin. “We have proven that we are completely prepared for our guests. And, what’s more, we anticipate their expectations,” she says with a smile. ::

International relations

The Regional Forum in Gdańsk Błażej Grabowski

n 22 April 2013 Gdańsk hosted the 1st Poland-China Regional Forum, whose media patron was the “Polish Market” magazine. The forum was attended by such figures as the Marshal of the Pomorskie Province Mieczysław Struk, the co-organiser of the forum Li Jianping – Vice President of the Chinese People’s Association of Friendship with Foreign Countries (CPAFFC), Deputy Minister of Foreign Affairs Jerzy Pomianowski, the Polish Ambassador to Beijing Tadeusz Chomicki, a representative of the Shanghai authorities Ding Xuexiang, and the Vice President of Beijing Cheng Hong. The meeting was attended by representatives of more than 30 regions and cities from China and nearly all the Polish regions and provinces. In total, about 600 people came to the forum in Gdańsk, including nearly 200 visitors from China. In his address to the forum participants, Polish President Bronisław Komorowski, the Forum’s honorary patron, emphasised his hopes in connection with the development of bilateral relations at the regional level in the areas of the economy, science, and

Jerzy Pomianowski, Under-Secretary of State for non-European Policy and Democratization Agenda at the Ministry of Foreign Affairs

Chinese delegations before the forum

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Mieczysław Struk, Marshal of Pomorskie Province

culture. During his visit to China in 2011 President Komorowski and the President of the People’s Republic of China Hu Jintao signed a joint declaration establishing a strategic partnership between Poland and China. The initiative to organise a major conference of municipal and regional authorities was supported in 2012 during Premier Wen Jiabao’s visit to Warsaw. The Forum in Gdańsk is one of the elements in the implementation of this document. There are plans to organise the forum every year, taking turns between Poland and China as host. The event’s host – Marshal of the Pomorskie Province Mieczysław Struk – estimated that the coming 2-3 years will be decisive in terms of increasing the involvement of Polish companies in China and establishing cooperation, particularly in the fields of environmental protection and energy. At the press conference, Poland’s Ambassador to China Tadeusz Chomicki and China’s Ambassador to Poland Xu Jian emphasised the forum would contribute to closer cooperation between the regions of both countries, which will result in the development of Poland and China. The forum involved four workshops – economic, educational, tourist, and cultural. There were presentations of the most interesting examples of previous interregional cooperation between the two countries. To date, about 40 cooperation agreements have

been signed between the regions and cities of both countries. At the close of the Forum, awards for the most active Polish and Chinese regional and local- government Units were granted. The distinctions went to four partnerships – Pomorskie– Shanghai, Guangdong– Zachodniopomorskie, Liaoning –Śląskie, and Shenzhen – Poznań.

The Deputy Minister of Foreign Affairs said “the Ministry of Foreign Affairs would support direct contact between regional and local authorities. This is a new, extremely important, aspect of Poland’s foreign policy. ::

Photos: Sławomir Lewandowski

Energy

Time for a “bottom-up“ approach Janusz Piechociński, Deputy Prime Minister and Minister of the Economy Nowadays, transition to a low-carbon economy is not a privilege of highly developed economies: it results from the need to work dwindling of production and environmental resources into the economic model. Moreover, the rapid development of green industry indicates that this sector - after fulfilling certain conditions - can also become the driver of economic growth in Poland and create new stable and reasonable jobs.

owever, if we fail to innovate and develop our own technologies, we will be permanently stuck with the imitations of solutions adopted in developed countries. At the recent “St Petersburg Summit” of Baltic states, the German Minister for the Environment, Nature Conservation and Nuclear Safety signalled that in 2030, Germany will have 50% of renewable energy in its mix and in 2050, as much as 80%. So let us bear in mind that the German economy, which has the strongest links with the Polish one, has already made a huge effort in this area.

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To take full advantage of the growth potential brought by the low-carbon transition, the Ministry of the Economy is preparing the National Programme for the Development of Low-Carbon Economy (NPRGN) in cooperation with government departments and experts. The aim of the Programme is to stimulate changes in the Polish economy, while maintaining the principles of sustainable development. In other words, only those solutions which lead to emissions reduction and, at the same time, support economic growth and the quality of life of the society will be included in the Programme. This does not mean that the National Programme will offer only costless operations. The modernisation of the economy and improving its innovation have to cost, but the recipe for success is to spread these costs in time in such a way as to make the profit from one undertaking become the source of funding for the ones to follow. Therefore, all the activities to be included in the Programme will promote economic growth and, even if they require investment at an early stage of implementation, they will generate profits for the entire economy in the long run. Let us not forget that the programme must take into account the basic principles of functioning of the national economy today. Many of the goals set by the state and the public sector are carried out by business entities with different types of capital that have their own economic calculations. The example of the debate taking place out of the government that will soon be taken up by the government, regarding the decision of the Supervisory Board of a national energy giant not to

invest in one of the power plants shows very clearly what sharp differences there might be in the investment performance analysis from the point of view of an enterprise and of the national policy tasks.

Bottom-up approach.

The bottom-up approach which was selected for working on the Programme means that the reduction target achieved as a result of the implementation of the Programme has not been set in advance, and will be determined after identifying all the areas in which it is possible to reduce greenhouse gas emissions. This ensures that the emission reductions will not be achieved at the expense of the competitiveness of the economy. It is – and I stressed this at a meeting with the EU Commissioner for Climate Action – the main difference between the Polish approach and the perspective of the European Commission, which adopted a reduction target of at least 80% as the starting point when designing the low-carbon strategy for the EU in 2050. This working mode, though simpler to implement, does not shield economic growth from negative consequences, especially in the absence of a global agreement. For example, Europe’s overproduction in the steel industry is currently around 75 million tonnes. If we do not introduce new technologies, in 10 years it will turn out that it is not profitable to produce steel, but rather it will be more cost-effective to process billets imported from Asia or South America.

Energy

This shows very clearly that Polish activities keep common sense and constitute a consensus between the need for the re-industrialisation of Europe and achieving climate goals. In this situation, every burdening of European business entities results in the deterioration of their international competitiveness. That is why, in our opinion, at least until concluding a global climate agreement, we should, as the EU and Poland, focus on national actions tailored to the capabilities of individual economies.

The time for the EU’s

climate ambitions may come someday.

Now, however, we need to see if other countries are willing to follow us. It is enough to pay attention to the coal and coal power engineering ambitions of Asian countries. Last year, 79 million tonnes of coal were extracted in Poland and that was half of the production in Europe. Meanwhile, China extracted 3.5 billion tonnes. Moreover, India is planning to increase its production 10 times within the

next 10 years and increase its volume of electricity generated from coal as much. Furthermore, Turkey is activating its massive beds of brown coal. Even tiny Montenegro is returning to mining and coal power engineering. What’s more, Vietnam, with the support of the Polish know-how, also intends to mine its large and very favourably located coal beds. Therefore, if no agreement is reached in the field of emissionsrelated carbon power engineering, consider the proportion of the numbers - 79 million tonnes of coal from Poland and 3.5 billion tonnes of coal from China. This demonstrates that we have to define the dimension of social acceptance for these processes in the civic and democratic space, already in the upcoming elections to the European Parliament in May 2014 - since, on the one hand, we have very strong environmental movements, and on the other, a great anticipation and cry for jobs. Thus, at some level of our European Union, which

sets itself defined co-responsibility standards for today and even greater ones for the future, a new consent and social acceptance need to be achieved for decisions in this area. ::

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Energy

Social Councila European sensation It is quite natural that we want to live better, so it is about ensuring economic development, especially in the times of crisis. And in order not to compromise either aspect of our children’s and grandchildren’s security, we must maintain environmental standards. Transforming the economy into lowcarbon one appears to be particularly desirable for that purpose. Prof. Jerzy Buzek Chairman of the Social Council on Low Emission Economy Development, expert in economic law, tax law and economic governance

cting in the capacity of expertsvolunteers within the Social Council on Low-Emission Economy Development (SR RGN) we have identified about 300 areas in which we can formulate an opinion, and then expect it to be taken seriously by the government. This is very different from the procedure applied in the European institutions (and in state institutions) under which certain solutions are determined arbitrarily. While negotiating the Climate Package – in which I was strongly involved – we set up, together with a number of members of the National Programme for Development of Low-Emission Economy (NPRGN), an initiative aimed to “soften” the initial content of the Package. We have interviewed tens and hundreds of the “citizens” of Europe – from trade unions through business representatives to political parties. We have managed to change the proposed rules of the Package, which were completely abstract from the Polish point of view. And that was our bottom-up procedure, unique in Europe because aiming to identify problems from the bottom up and not by imposing arbitrary solutions. What do we expect from the Social Council in the near future? We need to decide in three cases. The first one is to deliver the

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energy balance, in particular in the National Power System (KSE) in 2015-2020. This is possible in five basic ways – by replacing the existing and adding new conventional capacities, building new capacities in cogeneration and from the renewable energy sources, initiating prosumer power generation, saving energy (energy efficiency) and importing electricity. The second issue is how to spend EU funds. We do not know what will be the result of the EU budget negotiations. There will probably be dozens of billions of zlotys to be used in the energy sector. These must be invested in the areas where EU funds are “earmarked”, that is in low-carbon economy. “Must” does not mean a punishment, because these funds can really do a lot of good. But there are also areas such as power grids, which are not recognized by the European Commission as improving energy efficiency. Here we have to identify areas recognized by the European Commission and those in which we also need to improve energy efficiency, but we can only rely on our own resources. We have already presented the Deputy Prime Minister and Minister of Economy with the Council’s initial stance on the content of the Operational Programme: Infrastructure, Energy Security and Environment. The third issue is to prepare the whole

procedure of the investment process. Of course we must know in which direction we want to go. There are high-performance energy sources, and low-carbon sources; there is also a question of how to dynamically manage smart grids while covering all the ICT procedures. In fact, unless we make use of all the recent achievements in electronics and information technology, we will not be able to manage grids in a dynamic and intelligent manner. It is extremely important to invest in transport (how much is to be spent on revitalization of railways?), in the construction industry and digitization (e-business, e-government), and energy efficiency. Sectors such as the cement industry benefit from the best European solutions and there is little to be done there. But many other industries require major upgrades. We intend all these analyses to be oriented toward legislation in a sense that they should lead on to specific legislative proposals. These proposals must focus on three questions: How to ensure the country’s energy balance? How to obtain investment funding? How to organize the investment process? Now the 300 areas identified by the Council are to be reviewed in respect of these three directions. We have loads of work to do. ::

Energy

Energy industrysymptoms of collapse Prof. Krzysztof Żmijewski

everal of the recent developments associated with the energy sector made Poland’s highest authorities - the president and the prime minister - aware of the serious problems of the industry. The prime minister proposed that a Ministry of Energy or another institution should be set up to deal with the problems. The Polish Economic Congress, organized recently by the Polish Employers association, was devoted exclusively to the state of affairs in the Polish energy sector. The following are the symptoms showing how serious the situation is: a) Investment in baseload power stations has virtually stopped, with the number of discontinued or suspended projects (Ostrołęka, Opole 5 and 6, Rybnik, Puławy and Opalenie power plants) being higher than the number of projects which are now underway (Kozienice, Stalowa Wola and Włocławek). Some projects are being reconsidered (Blachownia 850 MW and Turów 450 MW) while other are contending with administrative problems (Północ 780-1,050 MW). At present, one may only hope that the 910 MW Jaworzno III unit will be completed by 2018 and that 420-600 MW Grudziądz unit will be ready by the end of 2016. b) On the second front - units with a lower capacity, that is combined heat and power (CHP) and renewable energy plants- foreign investors are already quitting Poland (Vattenfall, Ibedrola and Dong) or are about to do so (Fortum, Dalkia, EdF and EdP). There is a sharp decline on regulated special generation markets – coal-based cogeneration sources (red certificates), gas-based sources (yellow certificates) and renewable energy sources (green certificates). There are no new investors knocking on the door while the existing ones are suspecting that the government has

Secretary general of the Social Council for the Development of Low-Emissions Economy intentionally manufactured the crisis in order to renationalize the investment projects. Personally, I think this is absurd, but I understand that this may appear to be the case. c) The replacement and modernization of distribution networks is hard going because of the absence of a law on corridors for investment projects, a law which would enable the projects to go smoothly, and because of insufficient creditworthiness needed to finance the projects. For example, the EBITDA of the Energa company is around PLN1.6 billion and its credit capacity is PLN6.4 billion. Meanwhile, over PLN12.5 billion is needed by 2020 to carry out the necessary investment projects for electricity networks. Energa wants to spend another PLN12.5 billion on the remaining projects. But where can the money come from? The situation of other energy groups is similar. d) The existing cross-border connections do not enable electricity imports in amounts sufficient to provide reserves for the national system. Only one such connection – one between Poland and Lithuania - is under construction. e) Independent experts and some institutions – PSE SA and the Energy Regulatory Office (URE) - are warning that there will be a significant shortage of capacity in the years 2016-2020. The government does not have plan B to deal with the problem. f) Poland lacks legislation supporting the development of new, innovative trends in the energy sector, like for example intelligent networks and distributed municipal and prosumer power generation. In this respect, Poland is far behind the developed European Union countries. g) The pace of the nuclear programme is behind the government’s schedule and the way of its funding is still undefined.

h) The pace of the shale-gas programme, with less that 50 wells drilled a year, is much slower than expected. With this pace, at least 10 years will be needed for shale-gas extraction to reach a level of any significance for the national power capacity. i) Poland’s energy policy has become largely outdated. A new policy is needed one taking account of all internal and external constraints, including EU energy policy. j) The biggest threat to the Polish economy is the inability of the state to enforce the application of guidelines of its own energy policy, which means translating the guidelines into specific undertakings and projects. This means that the state adopts an energy policy, but is then unable to ensure its application because appropriate instruments have not been created to carry out the policy 1. More problems may be listed, but the biggest one is the absence of a strategy to come out of the imminent crisis. At a session held to sum up the congress, Prime Minister Waldemar Pawlak warned that today’s cheap energy may mean a power shortage in the future, leading to very high prices. The main message now is that Poland needs a coherent energy policy and – let me add - effective mechanisms for its implementation. ::

1 One example is the situation on the green-certificates market. An excess of over 5,000 terawatt hours has been produced. The market should have been regulated to eliminate this excess. It would be enough to say that we do not need more wind farms to implement the policy and that more production licences will not be issued. But the URE president says that, despite the oversupply of green energy on the market (an excess of green certificates), he has no power to stop issuing licences to the organizations which meet formal conditions.

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Energy

Ensuring the security and efficciency of the Polish Power System Henryk Majchrzak, PhD, President of the Management Board of PSE SA

SE - Transmission System Operator in Poland is a company of special importance to the Polish Power System and to the economy of the country. As the TSO it has a number of obligations imposed by the legislature. The company is obliged in particular to: • ensure safe and effective operation of the electricity transmission network; • develop forecasts of demand for electricity in the power system to cover the consumers’ needs in different time horizons; • identify development requirements with regard to the transmission network and interconnectors, with account taken of adding new capacities from other generation sources (including renewable energy); • build cross-border connections and make them available in a non-discriminatory

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manner, in cooperation with operators from other countries. One of the main tasks of the trasmission system operator is to prepare short-and longterm electricity demand forecasts for the Polish Power System. These forecasts show that in the near future we will be facing a real difficulty balancing the system. Drawn up this year, in line with the latest forecasts of demand for and electricity and generation capacities, “Analysis of the balance of power in the Polish Power System for the years 2013-2018”, taking into account the change in demand due to both temporary economic downturn and efforts to improve energy efficiency, shows that adding new capacities is absolutely essential. Especially with the perspective of gradual withdrawal of many depleted, high emission generating units, which have worked more than 200 000 hours for the

past 40-55 years. Not only are they inefficient, but they simply do not comply with European environmental standards. It is estimated that in 2012-2020 facilities with a total capacity of about 6,600 MW will be shut down. In order to ensure the transmission network safety, PSE is taking a number of measures to minimize any potential difficulties in meeting the demand for power. It is particularly important to balance the system resources, while maintaining adequate power reserves during peak demand periods. In the worst- case national power balance scenario, with reserves being decreased to the minimum level, PSE has adequate remedies to keep up the required network parameters. The most significant of these include adapting the repairs schedule of PSE’s generating units, the use of power reserves in small but numerous facilities such heat and power

Energy

plants, hydroelectric plants and other facilities not managed by PSE and - in emergency cases – acquiring energy from transmission system operators in neighbouring countries. Following the implementation in Poland of solutions in use in the world, PSE provided for the possibility to reduce power consumption by large electricity consumers. As a result of a tender for the provision of services to reduce the demand, the first such contract was signed last March by PSE. In addition to the remedies currently available the purchase is planned of the so called “cold reserve” intervention service. These services will be provided by generating units, which for technical, economic and environmental reasons were to be permanently withdrawn from service after 2016, that is when the strict European regulations on gas emissions come into effect. Extending the lifespan of old units before the new ones are launched will be less expensive than building new intervention facilities. The cold reserve intervention service will be purchased by way of a competitive tender with the participation of units entitled to 17,500 hours’ derogation, as defined in the Industrial Emissions Directive (IED). The tender for the provision of intervention services will be announced soon. The aim of the transmission system operator is by definition not only to ensure the country’s energy security, but also to create electricity infrastructure providing all those concerned with the possibility to do business. From this point of view, it is essential to connect to the Polish Power System power generating units (power plants, wind farms, etc.) and its customers, as well as to extend crossborder connections. Therefore, the expansion and modernization of the transmission network is being performed within the Polish Power System. The largest investments in the coming years will focus on the construction and extension of the stations and high voltage power lines, and especially on the development of 400 kV lines, which have greater transmission capacity at lower energy losses. Key investment projects to be carried out over the next five years include, the construction of the power line between Poland and Lithuania, the extension of the Polish Power System by adding new generation sources in north-eastern Poland (conventional sources) and north-western Poland (conventional and renewable energy sources), as well as the further development of the central power hub

Henryk Majchrzak, PhD, President of the Management Board of PSE SA and Grzegorz Tomasik, a Board member, received the certificate on May 16, 2013 from Janusz Piechociński, Deputy Prime Minister and Minister of Economy, Andrzej Arendarski, Polish Chamber of Commerce (PCC) and Wojciech Henrykowski, President of the Polish Center for Testing and Certification.

with investment aimed at ensuring supply security, in particular in large cities. PSE’s priority project is to build an energy connection between Poland and Lithuania, the first stage of which is to be completed by the end of 2015. The power link between Poland and Lithuania is a joint project of transmission network operators from both countries - PSE and Litgrid. Its main goal is to connect electricity markets of the Baltic States (Lithuania, Latvia and Estonia) with the continental European market by the socalled Baltic Ring. The need to develop new interconnections is due not only to the creation of the common European market, but it is also important to ensure active participation of the Polish Power System in the EU internal market and to increase its capacity to exchange power with neighbouring systems. Therefore, it is planned to increase the number and capacity of cross-border connections, not only with Lithuania. The contract has also been signed with the German operator, for the construction of the third connection between the two countries. Technical possibilities are also analyzed to reconnect with Ukraine, using the existing 750 kV line Rzeszów – Khmelnytskyi. The tangible result of all activities undertaken by PSE is the continuity of supply. The

safety and reliability of the Polish transmission network is evidenced by the very high levels of availability calculated for transmission lines, transformers and protective devices. These indicators remain constant in the range of 98-100% and are among the highest achieved in Europe. A crucial element of the PSE strategy is the commitment to combine reliable and efficient operation of the power system and its harmonious development with due respect for the environment and the public interest. Such a commitment has been confirmed by the implementation of the Environmental Management System in accordance with ISO 14001. PSE also received the Certificate of Environmental Management System ISO 14001 and IQNet issued by the Polish Centre for Testing and Certification. Henryk Majchrzak, PSE’s president and Grzegorz Tomasik, a Board member, received the certificate on May 16, 2013 from Janusz Piechociński, Deputy Prime Minister and Minister of Economy and Wojciech Henrykowski, President of the Polish Center for Testing and Certification. The Certificate ceremony was held on the occasion of the 4th Conference “Best Practices for Management - Corporate Social Responsibility” at the Ministry of Economy. ::

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Ecology

About green economy Prof. Maciej Nowicki Minister of the Environment of the Republic of Poland (from 2007-2010)

he 20th century, especially its second half, was a time of unprecedented technological and social progress, but also a period of wasteful exploitation of the Earth’s non-renewable resources, a period which saw dramatic environmental pollution, biodiversity destruction and the spread of many lifestyle diseases. Towards the end of the century humankind started to get aware that in his uncontrolled expansion man had stretched the planet almost to the limit and that it was simply impossible to continue with this kind of development any longer because it threatened the very existence of human civilization, which would be increasingly suffering from conflicts resulting from this expansion. A conclusion drawn from these reflections was the idea of sustainable development, officially adopted by the international community at the Earth Summit in Rio de Janeiro in 1992. The shortest definition of sustainable development is the notion that we should hand down the Earth to our children in a state not

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worse that the one we have inherited from our parents. In the economic sphere, sustainable development means efforts to ensure that the consumption of non-renewable resources- energy and raw materials-for our production processes is as low as possible and that we put as little pressure on the natural environment as possible while producing goods which are durable, of value and meet man’s real needs. In the social sphere, it is necessary to shape consumer attitudes in such a way so as to raise the status of nonmaterial services, like culture, art, learning, entertainment and sight-seeing, in contrast to the existing attitudes, which favour multiplying material goods. Many countries, including Poland, have the idea of sustainable development inscribed in their constitutions. The same is the case with the basic declaration of the European Union. However, the idea of sustainable development was quickly forgotten, which was best noticeable at the Earth Summit in Johannesburg in 2002, with its participants talking about how to tackle the problem of poverty and making no mention of sustainable development. Of course poverty is a burning issue, but it is part of the global sustainable development programme. I am convinced that “green economy” or “green development” are just a slight modification of the sustainable development idea. The notion of sustainable development puts special emphasis on protecting non-renewable resources – mineral and natural ones. In contrast, in the case of green economy the main emphasis is placed on the need to improve people’s quality of life while maintaining a fast pace of economic development and adhering to the principles of environmental protection. Below are a few examples illustrating this idea in individual economic sectors: - Green energy is energy generated from renewable sources; it is not based on fossil

fuels, the resources of which cannot be renewed; - Green building involves the construction of buildings, which provide top living standards to their users while at the same time consuming a minimum amount of energy (passive buildings or even zero-energy buildings), water (water saving, use of rainwater and wastewater) and the full waste treatment; - Industrial greening means activities which enable saving energy, water and materials in production processes to the maximum and minimizing the impact of industrial plants on the environment; - Green transport means cheap, convenient and fast public transport in cities and the use of electric cars and hydrogen-powered cars if the energy they use comes from renewable sources; - Agricultural greening means measures taken to protect soil against erosion and desertification, the production of top-quality food free of substances harmful to human and animal health, and the protection of areas of natural value. The notion of green economy also involves the development of smart cities which carry out all the tasks mentioned above to ensure maximum living comfort to their residents. This short description shows that the idea of green development is largely convergent with the idea of sustainable development and results from it. Green development is now promoted by the European Union and the new EU financial plan for 2014-2020 will support undertakings that are in keeping with this idea or even help in putting it in practice. One has to admit that this idea serves people and this is why it is so much needed by every country and all humankind. If we follow this line the Earth may again become a green planet. It is worth doing everything to ensure that this indeed comes true. ::

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Ecology

An EFECToriented institution Małgorzata Skucha, President of the Management Board of the National Fund for Environmental Protection and Water Management (NFOŚiGW), talks to Maciej Proliński

Does your appointment as President of NFOŚiGW spell any major changes in the functioning of this institution? Is this the beginning of a road which can ultimately end in some sort of a revolution? Generally, I prefer evolution to revolution. This is because revolutions usually entail many casualties. And I would not like to harm anybody. Based on the action strategy adopted last year for the years 2013-2016 with a perspective to 2020, NFOŚiGW will pursue four priorities – the comprehensive resolution of problems in water management and water protection, the systemic approach to waste-management and earth-surface protection, broadly defined climate protection, and biodiversity. In our new strategy, we expect that environmental education and ecoinnovations will be developed horizontally. Another important element in this strategy is complying with the assumptions of the lowemission economy. We want the Fund to be EFECT-oriented and ecological. Let me just highlight that we have set a good example by acquiring a “green office” certificate. We also want to prepare for new challenges, namely the e-economy and e-administration. This year, for the first time ever, we will accept competition applications in e-form. The transformation into a revolving fund in the next few years remains an important element in our vision. By 2016, 65% of our assets are scheduled to be in the form of repayable financial instruments, and by 2018, 80%. It is also worth highlighting that these instruments include not just loans, but also capital entries and the possibility of a guarantee. We strive to adjust our organisational structure, which was slightly modified early this year, to the implementation of the new strategy. Another important objective is the pm

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preparation of new functions of the Fund for the disbursement of EU resources in this new financial perspective. Summing up – an evolution, not a revolution… Management should be transparent, with all people aware that they are pursuing the same goal. And the institution itself should clearly state the objectives and the strategy for achieving them. To me, one of key matters in this field is educated and competent people, able to recognise the institution’s mission. It is also important to ensure that managerial procedures are simple enough to allow the most efficient disbursement of public money. For several years now, we have been debating the new model of a power system in Poland. The development of renewable-energy production and an increase in energy efficiency are to play a vital role in this process. The question is – what do we have in store regarding this issue? We do not shape the State’s energy policy. We are an instrument of support for the Minister of the Environment in the achievement of the objectives of environmental policy. It is also important to conduct activities in respect of improvements in energy efficiency and renewable energy sources. In Poland, we can observe constant progress in the development of renewable technologies – both in wind farms and photovoltaics. Supporting them through the creation of a system of incentives should include actions at the national level, and also in enterprises. Even in a situation characterised by the lack of own resources, energy efficiency can be implemented by means of a partnership, for example through the ESCO formula, which is a good tool for improving energy efficiency. We still have much to do in this field – the Polish pm

economy is nearly twice as energy consuming as the economies of developed EU Member States. ESCO – the Energy Services Company – is a formula based on which a specialised company provides an energy service to improve the energy efficiency of the client, and participates in the benefits stemming from a decrease in energy-consumption costs. The company conducts feasibility studies concerning an improvement in energy efficiency in the form of a comprehensive energy audit which includes technical and economic analyses of the planned projects, prepares the appropriate documentation necessary for the implementation of these projects (depending of the adopted formula), funds the project or arranges for it to be funded on behalf of the client, and also supervises its implementation and utilisation, and monitors the results. We are still waiting for an Act on renewable energy sources, essential for investors on the one hand, while on the other allowing households to become prosumers, that is not just energy consumers, but also its producers. We have already engaged in educating individual investors about a crucial issue, that is energy-efficient civil engineering. I also hope that the programme of subsidies for the development and purchase of energyefficient houses pursued by NFOŚiGW will inspire the building sector towards energy efficiency. The Fund estimates that the resources earmarked for this purpose will allow the development of 12 thousand single-family houses and apartments in multifamily buildings. NFOŚiGW will devote for this purpose PLN300 million by 2018. The programme is aimed at individuals who are planning to build a single-family house or buying

Ecology

a house or a flat from a developer. Our proposal is worth considering, as after 2020 it will be difficult to sell a house that was not built in accordance with the new standards. According to the Fund’s suggestion, these new buildings will have to meet one fundamental condition – annual unit energy demand necessary for heating and ventilation cannot exceed 40 KWh per square metre for energyefficient buildings or 15 KWh per square metre for passive buildings. As of 1 July 2013, important changes to the regulations on the waste-management system come into force. Statutory changes spell first and foremost new obligations for local governments. Do you think that the municipality as an entity responsible for the organisation of this whole system will meet the challenge connected with the selective collection of municipal waste, its recycling, and with sealing the system, which should reduce the incidence of illegal dumping grounds? I think that we have done everything possible to help local governments. As early as in February 2011 we launched a discussion platform devoted to the matters of waste management. On www.odpady-dobre-praktyki. pl you will find, among other things, information on amendments to the Acts connected with waste management, presentations, studies, analyses, and links that take you to interesting corners of the cyberspace devoted to the issues of waste management. We have also launched a message board that facilitates the exchange of knowledge, experience, and opinions on waste management. We have also organised several educational competitions. Undoubtedly, this is quite a challenge, but I hope the local governments do receive the help they need. Today, of key importance is also to familiarise citizens with this issue. Regarding illegal dumping grounds, the new Act will probably limit their incidence. It will put an end to dumping waste in forests and the risk of hefty fines, as we will have to pay for waste collection one way or another. However, this Act will not eliminate the cumbersome and hazardous incineration of waste in domestic stoves, which is especially popular in the heating season. This because such unauthorised incineration yields energy.

in the field of investments and education on waste management, and also aid in designing plans and their implementation. NFOŚiGW also has in store resources for the financial support of projects funded from EU resources under the ‘Infrastructure and Environment’ Operational Programme. They will be the source of the substantial part of financial support the Fund plans to devote to waste management up to 2015. The Fund is also engaged in supporting education on waste management.

It is also worth mentioning that the Fund guarantees a comprehensive financial package focussed on waste management. By 2016, the Fund will offer local governments and municipal companies nearly PLN3.5 billion for waste management. We will offer local governments financial support pm

Right education equals innovation in every area. What place should environmental education occupy in the strategic documents of NFOŚiGW? Indeed. Ecological results cannot be obtained solely through innovations. This year, we have created the Strategy, Education, and Communication Department. Let me remind you that just 3 years ago the average value provided in applications submitted in competitions on environmental education equalled ca. PLN250 thousand. Today, it is not uncommon for projects to offer a broad scope of educational activities valued at more than PLN1 million. In the years to come, the Fund is going to spend around PLN300 million on broadly-understood education. This is a substantial amount. This year we also launched a new informational and educational tool – the ‘Ecology – Education – Eco-innovations’ forum. At regular meetings with representatives of various circles, which are taking place in our office, we not only present a new approach to environmental education in the NFOŚiGW’s strategic documents, but, more importantly, we strive to establish a dialogue with social and economic partners and acquire information important for the development of a coherent and coordinated strategy of environmental education. This strategy, along with cooperation with the Regional Funds for Environmental Protection and Water Management, will help us to use the funds devoted to education at the nationwide and regional levels in the optimal way. Environmental education and eco-innovations have been denominated as horizontal actions for all environmental priorities. pm

To sum up our conversation, can we now say that after such periods in history – and especially so in Europe – as plunder or industrial development, there is slowly emerging a “green” era, that is, an era of caring for our environment? I hope that for local governments, entrepreneurs, and all of us, caring for the environment will be defined as a great opportunity pm

for development. So not restrictions, but development, also at the economic level. One of examples here is GreenEvo – the Green Technology Accelerator, a competition the Minister of the Environment has launched and maintained for Polish entrepreneurs, which promotes the best technologies aimed at environmental protection, and supports their international transfer. To date, the results of this endeavour have shown that as many as a half the laureate companies have signed distribution agreements with foreign partners. It is worth juxtaposing these examples with a broader current – civil society. Here, especially in the consciousness of the younger generation, the understanding of more subtle relationships between the environment and the lives of human beings is constantly being consolidated. ::

E – ecological (respecting and promoting the rules of sustainable development) F – financing (providing effective financial support in respect of the environment and water management) E – elastic (adapting to the needs of users) C – competent (fulfilling the functions of a public institution in a competent and reliable manner) T – transparent (achieving its objectives in a way that is ethical, clear, and transparent)

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Construction

Businesses generate losses Marek Michałowski, President of the Polish Association of Construction Employers, talks to “Polish Market”

The financial standing of the construction industry risks to undermine the smooth functioning of many businesses. According to the data from the Central Statistical Office, 38 % of companies have suffered losses. Is the recession in the construction sector deepening? The Polish Association of Construction Employers estimates that the construction industry is in recession, and the statistics clearly confirm this. The last time such a poor performance was registered was in the early 2000s, and then it was in a deep crisis. Comparing the present figures with those of the year 2000, we can safely say that they are very similar. Last year, nearly 1,000 companies went bankrupt, including almost 300 construction companies. According to forecasts, there will be even more bankruptcies this year, businesses generate losses and lack liquidity. Financial institutions turn their backs on the construction sector because it carries high risk. It is very difficult to get loans or any guarantees. These figures show that it is legitimate to talk about the crisis, but what is incredible and sets us apart from the year 2000 is the fact that then it was a “normal” crisis. There was not enough money, investments were in short supply, and businesses had to restructure to face up to new challenges. And the present crisis seems to have come out of the excess of money. pm

Out of the excess of money? Is that the reason for the present crisis? There are two reasons. The first is that the only investor that matters these days is the public sector. Previously, there was a balance between the public and private sectors. Hotels, office buildings, apartments and shopping malls were built. At this point, it is clear that the private construction sector is at a standstill and does not grow any more, pm

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and it turned out that the conditions created by the public sector practically do not give a chance to make money. Tenders, especially where money abounds, that is in infrastructure, are settled in such a way that construction contracts simply do not bring profits. The second reason for the crisis is the principles guiding public tenders. Everywhere in the world there is one public procurement template contract prepared upon consultation with experts, whereas in Poland each investor drafts their own contract burdening the contractor with obligations and risks, and the only criterion for winning the bid is price. Is there a chance that the condition of the sector will change? I assume there is. I cannot imagine the current situation to continue indefinitely. After lean years there must be some better times ahead. We are approaching the next EU financial perspective, and therefore similar funds are expected as those budgeted in the previous one. What is important, however, is that the rules for the selection of contractors and the management of contracts change. pm

The programme “Apartment for the Young”, which will be launched in 2014, is expected to help the construction industry and housing market. The situation is not really good here, either. Developers cut down on investments. It should be remembered that the housing situation is always closely linked to the economic condition of the country. At the time of economic stagnation or recession, the unemployment rate is rising and there are no development prospects. Banks impose restrictions when granting mortgages, because they realize that the future, especially that of young people, is very uncertain. Poland is clearly entering a period of stagnation, unemployment pm

will continue to increase, and young people will have more and more difficulty finding work. Consequently, obtaining a mortgage will be increasingly difficult. The housing market will therefore not be an engine of growth in the coming years. Perhaps the new EU financial framework will help reverse the negative trend... There is a chance that new EU funding will make contracts profitable. It is necessary to ensure the proper management of contracts. It can be seen that the government has drawn some conclusions. Tenders worth more than PLN 30 billion are already being prepared based on the new EU financial framework. However, price should not be the only selection criterion. It can be one of the most important factors, but then I would suggest a two-stage tender. First, some of the best companies are selected that have sufficient experience and financial standing to ensure the performance of the contract, and then, in the second stage, the final criterion is price. And the most difficult aspect of the contract management is cooperation. The Polish Association of Construction Employers cooperates with SIDiR ZPBUI to work out a template contract based on the one drawn up by the International Federation of Consulting Engineers (FIDIC), which is characteristic insofar as it evenly distributes the rights and duties of the parties to the contract and places the risks on the party able to manage them. We intend to submit our proposal to the government and encourage it to implement the new terms while executing contracts in the future. The implementation of the above-mentioned proposal will most probably ensure the smooth performance of new investments and improve the situation of the construction industry. :: pm

Construction

Strabag- company that likes challenges Alfred Watzl and Wojciech Trojanowski Members of the Management Board, Strabag Sp z o.o., talk to “Polish Market”

Construction of the bridge in Torun. Poland’s first assembly of structural components in the river

The Board of Strabag Sp. z o.o. has a new structure. What was the reason for combining the areas of infrastructure construction with the general and engineering construction? Alfred Watzl: At the beginning of the year, the group decided to modify the structure of some of its agencies in Europe, including Poland, as part of Strabag’s plans to maintain its strong position in the demanding construction sector. We have combined two departments and a number of divisions, including the division for central purchasing, contract management and HR. They support seven regional departments – five road-construction directorates, each encompassing from two to four provinces, and two Polish nationwide directorates, namely the Engineering and Bridge Construction Directorate (DBIM) and the General Construction Directorate (DBO). Part of our efforts has also focussed on the organisation and development of the Russian division of Strabag. Wojciech Trojanowski: Already by late 2011, the construction market revenue was seeing a decline. This trend has continued, and according to our estimates, the revival will come no earlier than in late 2014. In consequence, we have decided to integrate our resources by a number of measures, including pm

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cutting down on the number of entities making up the Strabag group in Poland. The Company’s structure is now composed of such players as Hermann Kirchner and Polski Asfalt. During the time of our biggest corporate size, in late 2011, we employed over 8 thousand people, whereas a year later only about 6 thousand. In 2013 we expect further downsizing. The extent of this will, however, largely depend on the outcome of procurement procedures in which we are taking part. The Strabag family in Poland is made up of several brands. Which of them do you consider as true “jewels in the crown”? Alfred Watzl: The further growth of the Company heavily rests on our team of specialists at the TPA Technical Research Institute, which help us to work out ways to rise up to some really challenging working conditions we are confronted with. We are proud of the achievements of Heilit+Woerner, our company, which, in the light of the Forbes’ award, has proved to be a leader, not only in the Lower Silesia region, where it handles some major projects, but also nationwide. These are but two of a host of brands worth mentioning. The Strabag group and all its branches are committed to combining tradition with quality. As a result, the companies pm

which enter the Group and operate within it are market leaders, with each of them specialising in its own field. What about the completed contracts? Wojciech Trojanowski: We have managed to make our way with the contract for the construction of the A2 motorway between Nowy Tomyśl and Świecko. Its completion six months before the deadline was in many respects an unprecedented achievement in this country. But this is history now. Currently, the principal contracts we have in our portfolio concern two sections of the S8 expressway between Warsaw and Wrocław in the Łódzkie province, both of which are going to have concrete paving. We are one of only a handful of companies in Poland, which can deliver a top-notch concrete motorway surface. We pride ourselves on this. Other than that, we are being involved in the construction of the S3 expressway in the Lubuskie province and completing a section of the A4 motorway in the Podkarpacie region. We have also laid the foundations of another section between the Krzyż and the Dębica Pustynia junctions. In the first half of April we entered into a contract for the construction of the Szczecin Fast Tram (SST). We assumed the responsibility of picking up the pm

Construction

investment bill, exceeding PLN165 million, throughout the whole implementation period, that is two years. In the second of our primary areas of activity, building construction and civil engineering, we are carrying out one of the largest contracts in Poland – the construction of a retail park and the redevelopment of a railway station in Katowice. By the end of the year we will have commissioned a bridge in Toruń, the construction of which has been of interest not only to the city’s residents themselves but to the whole nation. Indeed, with successful projects all across Europe, we have paved the way for modern bridge construction. In Poland, it is still more of an innovation. We like being in the forefront, also when it comes to novelties introduced to the Polish technological market. As you said, recently, you have won several crucial contracts. How did you make it? Alfred Watzl: It was somehow different in each case. First of all, we put forward the optimum price, which is the primary determinant of success in Polish tender procedures. We were able to do so as we are present in all those locations, working on other projects, so the equipment and specialists are already there and they can be seamlessly delegated to implement the subsequent task. This is our distinctive asset as compared to other European groups – we don’t have to seek too many regional partners, since we are selfsufficient and we can leverage an extensive

Multifunctional Integrated communication and shopping center at the station A passenger Katowice

footprint across the country. As regards the S8 and the exit road towards Janki, the price was backed up with our expertise in Design & Build projects. For the General Directorate for National Roads and Motorways (GDDKiA) this is an opportunity to streamline projects, while also introducing superior quality standards. Similarly is in the case of the shopping center Gallery Felicity Lublin. Our leading position and experience let us build such a shopping center like Gallery Felicity Lublin (130 000 m2).

Do these procurement procedures herald the reversal of the slowdown in road construction? Wojciech Trojanowski: According to our estimates, the market is to experience a collapse well until the end of 2014. However, we are striving to take part in all interesting tenders. There aren’t many of them at the moment. According to GDDKiA, procedures are about to be initiated, also in the D&B framework, which de facto will postpone the disbursement to 2014-2015.

Wojciech Trojanowski Member of the Board, Strabag Sp z o.o.

How does Strabag Sp. z o.o. envisage itself in the nearest future? Alfred Watzl: We are committed to maintaining the leading position on the construction market in Poland. We have established ourselves as the company behind ambitious infrastructural projects, so in the upcoming financial perspective we will be interested in contributing to the completion of the system of motorways and expressways in Poland. If there is a project for the completion of the southern Warsaw ring road, we will apply for it. On the markets perceived by Strabag as strategic, the Company always makes its best efforts to make it into the top three construction companies, or even to be number 1. We are determined to keep it that way. In 2011, as the Strabag Group, we ranked first in terms of revenue. In 2012 it amounted to PLN5.5 billion. This year we expect to record sales of PLN4.0 billion, although our financial result will depend on some contracts being concluded between 2011 and 2012, which will only be fully settled in 2013, and on the settlement of some of our current projects. ::

Alfred Watzl Member of the Board, Strabag Sp z o.o.

5 - 6/2013 :: polish market :: 73

Real estate

Quality first! Jerzy Smolarczyk, co-owner of Pinus, talks to Maciej Proliński

Krzywy Domek (Crooked House) in Sopot

The producers of Polish windows and doors are our export marvel. How is Pinus doing in this competitive world? What is the company betting on? The Polish windows and doors industry is an industry with traditions, encompassing thousands of companies which are wellknown, reputable, large entities operating on the Polish and global markets. But our industry also includes those smaller and lessknown enterprises, equally-good companies which play a substantial role at the local and regional levels. Our industry is strong and is constantly developing. Pinus is a manufacturer of wooden windows for customers who especially treasure top quality and customised adjustments. We need to highlight that Pinus not only today, but always – this year we celebrate the 22th anniversary of our presence on this market – has focussed on quality. This has always been the company’s motto – to meet the challenges of the market and of our customers, demanding individuals. pm

Pinus means retail customers around the world. What do you think a customer needs the most? You have to answer the question where and at whom do we aim our products? From the very onset we have aimed at high- and customers, and not at mass consumers. The foreign customers who have found their way to us include individuals and architects with pm

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unconventional implementations. It was us who manufactured the doors and windows for the Krzywy Domek (Crooked House) in Sopot – the prize-winner of a competition in Chicago for the most unusual project and implementation in the world. Having seen what we can do on the Polish and German markets, our customers come to us and ask if we can do this or that. Many people perceive us as an organisation that looks forward to its future in the industry, that wants to be in its avant-garde, that is determined to achieve the quality-related objectives of its products and services, and that launches tailor-made projects to face the challenges and needs of the 21st Century. The Pinus brand is a clear signal for everyone that a high-quality product and producer has become the norm. These are products that are not only being manufactured in line with established standards and formal requirements. This is a guarantee of attention to detail and care for the customer. In Poland, we are currently building our surroundings anew, designing our future. Polish designers work for many companies that base their brands on design. How does this apply to Pinus? We are cooperating with a whole circle of excellent Polish designers, including Wojtek Musiał, Jacek Synkiewicz, and Wojciech Obłuski. They all have very interesting, non-standard projects. pm

Does the contemporary global economic slowdown influence Pinus’s product range? The crisis has afflicted our industry as well. This comes as no surprise. The windows and doors industry is essentially composed of two areas. The first area comprises the whole area connected with renovations, modernisations, and adaptations. The second area is new construction, both at the individual and developer’s levels. It is fairly obvious that the first half of 2013 is not the best in Poland. However, the quarters to come will show the true face of the Polish building sector. Pinus is also operating on the British, American, German, pm

and Russian markets. But these implementations are of an individual and incidental character. Our windows are held in high esteem in every country. We boast an established brand on the Polish market, where we employ 108 people. Unfortunately, bearing in mind the nature of our products and operations, we cannot create more jobs. But I regard the company’s situation as stable. How would you assess the progress in the industry in terms of new technologies? Today, such progress appears to be a necessity, doesn’t it? In recent years all this has been changing to a great extent. The progress that took place as early as the 1990s in respect of window manufacturing was enormous. Among the many innovative technologies, we want to promote especially those products which correspond to ecological trends in the effective utilisation of energy in building sector. Our energy-efficient windows are similar to passive windows in terms of technology, but more subtle and sophisticated. They are also attractively-priced: when a customer has already decided to buy wood, that is as a high-grade product. We are also striving to provide our customers with alternatives. For example, to explain the rationality of buying a more expensive and high-grade product, which will retain its properties for years. You simply do not replace your windows after 10 years. pm

There is also the company’s website which serves as such an informative element. We do not maintain an intensive strategy of media marketing. We care more about verbal promotion, somebody’s recommendation. John Doe rarely buys our products, but this is not a rule. We are present at industry fairs and focus on our website http://www.pinus-okna.pl/. You can familiarise yourself with our package at home, via the Internet. It’s a very important information tool these days, a marketing “window on the world!” :: pm

One firm Many things to be proud of It is good to build more. It is also good to do it well. With this philosophy we have been for many years among the largest construction companies in Poland. Over more than twenty years of our operations we have built more than 400 modern facilities honoured with numerous awards. A confirmation of the top quality of our services is the unabated trust of our Clients - this allows us to build more and more.

www.warbud.pl

Real estate

In Warsaw and on the Baltic coast

AQUAMARINA – Świnoujście

“The situation of developers is more difficult than it was 10 years ago, but it is not as bad as to deal a devastating blow to the industry,” Andrzej Skowroński, president of SABE Investments Sp. z o.o., tells Jerzy Bojanowicz. “Some companies are coping better, others are coping worse. Much depends on their specific situation: their location, access to funding, and the projects they are conducting. But an important factor determining whether or not a company is successful is its openness to the needs of the clients and flexibility in adjusting to the situation on the market. SABE has never had problems with obtaining credit for any of its projects. I can say with satisfaction that we meet all our obligations on time.”

How did SABE Investments close the year 2012? Indeed, 2012 was another difficult year for developers. One can say that it was a time of test for many companies on the still unstable residential market. The result was a significant drop in home sales and prices. Some developers were forced to put new projects on hold or even suspend the projects already started. As for SABE, what crowned our work in 2012 was that we completed the Symfonia pm

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housing estate in Warsaw’s district of Praga in accordance with the schedule and obtained the occupancy permit. Symfonia is a modern residential complex composed of four buildings with six to nine floors and 245 apartments and retail outlets. The buildings share a courtyard with greenery and an underground garage. What deserves special attention is the well-planned greenery and structural landscaping with a decorative fountain. The general contractor on the

Real estate

project was Budimex SA, a company known for delivering high quality, something which definitely contributes to a project’s success. Until recently Wola was called a district of contrasts - history neighboured here with modernity. Today the district is undergoing a renaissance and is becoming an attractive place to live in. This is why our sales slogan is “A New Sound of Wola” and the name of the estate is Symfonia (Symphony). The estate is located less than 5 kilometres away from the city centre, with which it is well connected by numerous bus and tramway lines. In the future, it will also be connected with the centre by a second metro line, which is under construction nearby. The location of an apartment, alongside its quality and price, is in many cases the key factor behind one’s decision to buy. This is probably why more than half of the apartments in the estate has already been sold. A special feature of the residential market is the need to quickly respond to change. The Symfonia estate is a response to the expectations of the market, where there is demand for functional homes for the young who are at the start of their adult life. However, Symfonia also offers large apartments for demanding clients who need four or five rooms. The year 2012 was also a third successive year of our company’s operations on the holiday apartments market. We continued our Aquamarina project in the Baltic resort of Międzyzdroje. Prices of homes are decreasing and developers have difficulty selling them. One would expect that holiday apartments are even harder to sell. How are you coping with that? Aquamarina in Międzyzdroje is an attractive holiday property developed on a beautiful site close to the sea, surrounded by a beech forest. It is situated just 50 metres from the sea, with which it is connected by a passage we have constructed. The estate is fenced and provided with a surveillance system. There is a parking space in an underground garage for each of the apartments. The estate offers many amenities to the occupants such as its own park forest, a playground for children, a court for beach volleyball, garden houses with barbecues, a bike rental and a shop. Construction began in 2008 and the first of the 265 apartments were handed over to clients as early as July 2010. Also on this project the general contractor was Budimex SA. The apartments, delivered on a turn-key basis, are finished to a high standard and provided with pm

fully furnished kitchen with household appliances. Additionally, the whole apartment – not only the kitchen - may be furnished by a company we work with, if the client wishes so. It is very convenient considering that our clients come from across Poland. Demand for holiday apartments offered as guaranteed rental schemes appeared some time ago and we are one of the companies which have exploited it. As our project in Międzyzdroje shows, this concept has been successful. Clients with a surplus of cash buy an apartment and, after signing a guaranteed rental contract, earn a rental income of 7% of the apartment’s value annually for three years. The yield is higher than that offered by bank deposits and government bonds. This is an excellent investment guaranteeing the owner a regular monthly income. And additionally, the owners may stay in their apartments in the agreed periods of the year. The client may also entrust the apartment to us to be rented in a conventional manner, in which case the rental income depends on the length of time the apartment is occupied by holiday-makers. Of course, location is the key issue with this kind of projects. Międzyzdroje is a “Pearl of the Baltic.” With its fine climate, wonderful beach and the Festival of Film Stars held every year in July, it attracts thousands of tourists annually. The Aquamarina project in Międzyzdroje has been appreciated by the Polish Association of Construction Engineers and Technicians. The Association awarded Aquamarina the first prize in the residential building section of the Construction Project of the Year 2010 competition. The prize went to the general contractor – Budimex SA. I have heard that the Aquamarina estate in Międzyzdroje will be expanded while you are also going to start another Aquamarina project – in the nearby resort of Świnoujście. Why this change of plans? It is not any change of plans. The project in Międzyzdroje has turned out to be a success. I think that projects offering holiday apartments, including apartments for rent, are becoming increasingly popular in Poland. And a new quality has recently appeared on this market – such properties are now required to be provided with a spa centre, swimming pool, restaurant and conference rooms. To meet the expectations of the market halfway we plan to begin in the near future the second stage of the Aquamarina project in Międzyzdroje. In this stage, we are going to build a hotel with a large spa centre, a large pm

swimming pool and restaurants. This will certainly add to the attractiveness of the holiday complex and, which is important, will considerably extend the time when the complex is used over the year as it will offer perfect conditions for family holidays, stays by athletes and people who need medical rehabilitation, and for business and team-building meetings. At present, we are in talks with a potential co-investor, because large financial resources are needed to carry out the project, but nothing has been settled yet. The big interest from clients in our project in Międzyzdroje was the reason why we began in 2012 preparatory work for another project of this kind on the Baltic coast – the Aquamarina estate in Świnoujście. One can say it is a good time for us to continue our activity in this sector of the market. The estate in Świnoujście will be composed of four secluded buildings with apartments for sale and rent, a spa centre, restaurant and services. The estate will be situated in an attractive part of the town - the seafront district – close to the main promenade and less than five minutes’ walk from the beach. It will provide 178 apartments and guest rooms. Most of the apartments will have only one room and a floor area of less that 30 sq m. Larger apartments, some of them with three rooms, will also be offered but there will be few of them and it is advisable to approach us about them right now. Considering that there is interest in holiday projects and a growing demand from holiday-makers for rental apartments close to the German border, we do not want to postpone the Świnoujście project and plan to start construction works in June and complete the project in less than two years. The project is mainly meant as an investment product. This is why the buyers of rental apartments will be offered guaranteed rental income higher than yields from other financial products available on the market. As in Międzyzdroje, the apartments will be delivered on a turn-key basis and, if the client wishes so, fully furnished. The property will definitely be an attractive alternative for people seeking to invest their surplus cash. SABE has operated on the Warsaw market since May 1999. It already has four housing estates in its portfolio. Which of them makes you especially proud? I do not have any favourite. Each of the projects we have already completed has its numerous advantages and deserves recognition, either because of its location, good workmanship or successful architectural pm

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design. Let me stress that we operate in the sector of high-standard apartments where there is no room for flaws or mediocrity. The high value of each project is confirmed by the fast sales process and the high marks it receives from the occupants. Each of our estates is different and I would be happy to live in any of them. The first project we carried out was the Sonata estate, which was handed over to clients in 2003. Situated in the immediate vicinity of Skaryszewski Park and Kamionkowskie Lake, it is one of a kind residential location in Warsaw. The spacious balconies and terraces have a beautiful view of the park and lake, and of “Warsaw’s Manhattan” on the left bank of the Vistula river. In contrast, the Rezydencja Sienna building is situated at the very centre of Warsaw, a location preferred by young business people. And Rezydencja Saska is at the very heart of the charming Saska Kępa neighbourhood, a place favoured by many. We carried out the two projects simultaneously in the years 2005-2007. I can say with satisfaction that each of these projects is our showpiece and a good reference for us. The same will be the case

SYMFONIA estate

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with the Symfonia estate because the place where it has been developed is quickly changing its character. New modern and architecturally pleasing housing estates are popping up here like mushrooms. Retail space in this estate is also enjoying much interest. By the way, a private crèche and kindergarten for the young residents has opened in one of the service establishments. We manage our estates after their completion because we want them to retain their high standard and operate smoothly. We have a well-qualified team of workers who take care of our estates on a daily basis. We simply want to keep our estates well-tended and their residents satisfied. Although we are not a giant on the market, we do not have any inferiority complex. We are satisfied with what we do and how. Since the beginning of our activity we have built around 1,200 apartments and service establishments with a combined area of over 75,000 sq m. What is more, we are constantly developing, diversifying our activity and looking for new market niches on the residential market and elsewhere. And the market is really difficult today and with demanding clients.

What next? In our activity as a developer, we have focused for several years on two sectors: residential projects and apartments meant both as holiday properties and an investment. We have plans for future projects in Warsaw and are going to carry them out in the forthcoming years. Next year we want to begin at least one project in Warsaw. However, our main objective is the completion of the Aquamarina project in Świnoujście. It has already attracted much interest from prospective clients. We already have the first buyers, even though construction works have not begun yet. We also want to carry out the second stage of the Aquamarina project in Międzyzdroje. It will involve the construction of a hotel, a professional spa centre and a large swimming pool. I have already talked about it at the beginning of our conversation. These are major undertakings with large financial resources required to complete them. This is why we will be carrying them out according to a well-thought-out and well-planned strategy. :: pm

DWORZEC WILEŃSKI STATION RONDO DASZYŃSKIEGO STATION

RONDO ONZ STATION

ŚWIĘTOKRZYSKA STATION ŚWIĘTOKRZYSKA STATION NOWY ŚWIAT- UNIWERSYTET STATION STADION NARODOWYSTATION CENTRUM STATION CENTRUM NAUKI KOPERNIK STATION

Stations: Rondo Daszyńskiego, Rondo ONZ, Świętokrzyska, Nowy Świat- Uniwersytet, Centrum Nauki Kopernik, Stadion Narodowy, Dworzec Wileński.

The central part of the metro line will allow passengers to conveniently switch from rail to other forms of transport. Dworzec Wileński Station and Stadion Narodowy Station will be connected to the rails.

Real estate

Condo systema new fashion Tomasz Panabażys, President of the Board of Dolcan, talks to Jan Sosna.

It has been less than a year since you entered the condo system. Until recently, it was more a domain of developers with new buildings in holiday resorts. What brought you to this decision? We have responded to market demand. In this uncertain time for the Polish and global economies, such an investment and way to multiply wealth is a very desirable alternative. As the stock exchange slumps and the deposits have low interest rates, real property is the safest investment instrument. For clients it is a very safe, but also convenient form. When the client buys a condo he’s got nothing to worry about. We, the operator, look for tenants and provide maintenance. If need be it is also our responsibility to carry out small repairs and renovations. The owner doesn’t have to appear in the apartment once, over the entire course of the contract, but the money from the rent goes to his account. pm

What are the expected profits for somebody who buys a condo? The annual return rate is 8 %, calculated on the gross value of the finished apartment. Importantly, this is a safe profit, which is guaranteed by the contract and does not depend on the level of leasing the apartment. The client has a safe profit. When buying an apartment, the owner signs a contract with us to manage the premises. He can sign it for 5 or 10 years or for an indefinite period. We are very flexible in this respect, as indeed we are when the client wants to withdraw from the contract. The client can do this at a time he or she considers convenient. If, for example, after a few years of letting the apartment out, you decide to use it or hand it over to your children, you can withdraw from the contract and occupy the apartment. pm

Does the owner of a condo have to bear any extra costs? After the contract of sale is concluded our company puts the finishing touches to the apartment. The client bears the cost of finishing the apartment, but this relates only to pm

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elements permanently tied up with the place, such as the bathroom, the kitchen, the floors. The furniture and appliances necessary for the apartment to be let out to tourists is provided by the company at its own cost. We also cover the costs of renovation or replacing equipment. This work has no bearing on the budget of the apartment owner. Dolcan also covers the costs of insurance and utility expenses (water, electricity). Is this an investment solution specifically for wealthy people? How much does a condo cost in Dolcan? The prices for condo start at PLN 7,600 per sq. m. Smaller apartments cost from PLN360 to 400 thousand. The yearly profit is at the level of PLN 36 thousand. Our package is addressed at investors looking to diversify their portfolios, and also to people who don’t have money but have good creditworthiness. The latter group is usually parents buying an apartment for their children. Before the children grow up and use the apartment, the parents can draw profits from letting the apartment out and repay the credit. pm

To us, the prospects in this segment look bright. Almost a year ago we introduced the condo system in two of our projects in Warsaw – the Skierniewicka City luxury apartment building located in the district of Wola close to the city centre and the Ogrody Ochota projects located on Krakowska Avenue, also close to the city centre and with convenient access to the airport. The response from individual investors was a positive surprise to us. We have sold 22 condo to date. This result persuaded us to extend the system by one more city. A few weeks ago we added condo in Szczecin. Both cities have huge tourist potential, also for business tourism, so we’re not really worried about the occupancy rate. It’s been relatively high recently - about 70 %. This is not important at all, however, for the apartment owners who have fixed profits guaranteed regardless of occupancy. Secure profits and the fact that the owner has nothing to worry about make the condo system more and more valued by investors. ::

What happens years later? Can the owner sell the condo or live in it without any trouble? Of course. This is precisely the added value of our proposition. It combines an investment product with residential real property. The client buying an apartment gets the full package complete with a notarial deed and a share in the land. It is a much more convenient solution than the purchase of a room at a condo hotel, where you can’t stay permanently and can use it only for a few weeks a year, usually off-season. Buying a condo in Dolcan, the owner doesn’t have to pay for equipping the apartment with home appliances and audio-video devices, furniture, additional items, and dishes. As the operator, we provide the daily furnishings for tenants. pm

What future awaits the condo market in Poland?

Warsaw, Ogrody Ochota estate

Real estate

Gates, doors and fences by Wiśniowski to crown your investment For nearly 25 years the WIŚNIOWSKI Company has been producing gates, doors and fences that meet the highest standards and maintain their functionality and beauty for years. Gates, doors and fences with the latest design inspire those who appreciate sustainability and elegance. That is why WIŚNIOWSKI is the Number One in Poland.

he WIŚNIOWSKI Company, the leader and the biggest Polish producer of garage doors and fencing systems, represents over 20 years’ competence in the doors and joinery business. It employs over 1,100 people. The construction office alone has over 40 engineers who design, research and constantly improve the WIŚNIOWSKI products. Its commercial range includes hundreds of garage

and industrial doors and fencing systems, as well as steel and aluminium joinery products. All this assortment may be found with the Company’s customers both in Poland and in the whole of Europe.

Gates, doors, fences The unlimited design opportunities allow the producer to create gates, doors and fences

with high aesthetic quality, which reflect the investor’s individual needs. They provide a durable and safe haven for the space we live, work and relax in. In a relatively short time WIŚNIOWSKI® gates, doors and fences have reached a very high level of quality and have come to represent serious competition for major european producers. ”Quality control in all the production processes in a big company like this is a must.

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1.07

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GATES | DOORS | FENCES

Real estate

We also have to remember that the gates that we produce, especially the automatic ones, are the biggest devices in our homes, so they have to meet strict standards. That is why we have to make sure that all their parts are perfectly manufactured,” says Andrzej Wiśniowski, the founder and owner of the WIŚNIOWSKI brand.

Experience and skills From its very beginning the WIŚNIOWSKI Company has encouraged the development of individual products tailor-made for diverse groups of customers. The package encompasses both customers that are interested in economical solutions, and those who would like to invest in more advanced technologies that significantly increase their user-friendliness. “We would not be able to offer such a wide range of products without a thorough analysis of market trends,” says Andrzej Wiśniowski. “We are inspired by our customers and we try to provide them with products that will satisfy them for many years. Each element in the technology-processes development, and the products themselves, on the one hand, is the result of consumer demand, and, on the other hand, of the need to anticipate it. As a result we can provide solutions that exceed these standards.

Passion and innovative visions

Achieving the position of market leader requires huge determination, courage, and also flexibility and dynamics of actions.

This can be confirmed by the image change we have accomplished. Since September 2012 WIŚNIOWSKI has been identifiable by its logo. The whole rebranding process is the result of taking care of the brand, its position on the market, the way it is perceived by customers, and the need to meet their expectations. “We are creating a more modern, innovative and dynamic image, which lives up to the highquality products we manufacture. We are expanding on the domestic and foreign markets. Not only the product but also the logo being remembered will help us to take it out to an even wider playing field,” says the owner of the Company. After the September launch of the logo on the Polish market, WIŚNIOWSKI, with its new image, has exhibited at the biggest construction trade shows in Europe, for example in Munich, Brno and, soon, also in Milan and Paris. At the meetings on the construction business WIŚNIOWSKI presents doors and fencing systems created with sustainable construction in mind. The products are designed prospectively, with the use of innovative solutions that embrace economic issues, safety, simplicity and the comfort of use. However, the most important thing for potential users of doors and fences is a good balance between price and quality. This means that the products have not only competitive prices, but also maintain their excellent quality.

Innovation and im-

as Andrzej Wiśniowski, the owner, puts it “Without innovations we won’t be able to meet our customers’ expectations.” As a result, the company can be proud of its production halls, with a total length of one kilometre, and its several dozen production lines. The high quality of products is connected with, apart from investment in innovations, the necessity to create the proper production facilities. The company is working on the basis of the Integrated Management System compliant with ISO 9001 and OHSAS 18001 norms, which impose on the producer a high level of products and services, and they also define a high standard in the field of creating optimal and safe working conditions in all organisational units.

A higher level of cooperation

Thousands of customers in Poland and in the whole of Europe have been using WIŚNIOWSKI products. The company is still transforming its opportunities into new ideas aiming at the better fulfilment of its potential and also at creating new prodevelopment forms. Taking advantage of its strengths, it concentrates on attaining goals aimed at the constant development of products, technologies and organisational structures. ::

provement

The WIŚNIOWSKI Company is still investing in innovative solutions because, ADVERTISEMENT

/2013 :: polish market :: 83 GATES |5-6DOORS | FENCES

Real estate

EMEA office market in 2012 The sovereign debt crisis in Europe has generated another year of economic uncertainty, resulting in subdued rental performances across the region. The Polish office market performed well in 2012 with positive levels of activity and steady demand throughout the year.

Bolesław Kołodziejczyk, PhD, MBA, MEng, Senior Consultant, Valuation & Advisory, Cushman & Wakefield

EMEA occupier overview

EMEA rental overview

Yearly rental growth for the EMEA was a mere 0.5% last year, continuing a recent run of moribund performances with a 1% rise in 2011 and a 1% decline in 2010. Needless to say, 2012 merely rounded up the third consecutive year of negligible rental change on the back of weak economic fundamentals, a large number of countries falling into recession and the resultant dampening of occupier demand. Although overall rental conditions within EMEA were flat, on a country-by-country basis the picture is surprisingly mixed, and each category of rental change (Fall/Growth/Stable) was comprised of roughly the same number of countries. The main pockets of growth in 2012 were in Kazakhstan, Turkey, Finland and Norway, which all witnessed double digit prime rental rises over the year. However,

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this growth was offset by the negative rental performances from countries such as Greece (-8%), Italy (-8%) and Spain (-6%), where economic uncertainty and ongoing austerity measures created caution among occupiers. Similarly to last year, Central and Eastern Europe (CEE) outperformed Western Europe in terms of rental growth, although 2012’s 2% increase was still minimal when compared with performances from other regions. Growth in CEE was largely driven by double digit rises in Kazakhstan and Turkey, with both countries benefitting from strong demand from multinational businesses wanting to establish a presence in the financial centres of Almaty and Istanbul. However, notwithstanding these two markets the majority of the CEE region saw muted occupier demand or worse, and subsequently rents were stable at best or often declining.

The ongoing euro zone debt crisis brought further uncertainty to the European office market in 2012, with dampened business confidence resulting in a slowing office market. This resounding caution amongst occupiers saw consolidations, lease renegotiations and other cost-controlling strategies drive leasing activity in the majority of locations. With demand subdued across the region, rental growth was largely nonexistent, particularly in Western Europe where figures lifted by only 0.3%. The Central and Eastern Europe (CEE) region outperformed Western Europe in terms of rental growth, albeit at a minimal 2%. However, a number of countries managed to sustain healthy demand and rental rises over the year. For another consecutive year London (West End) remained the most expensive location in the region, as rents were supported by a scarcity of high-quality supply. Combined with relatively steady demand, particularly from the media and technology sector, competition for prime office space remained. As a result, rents increased towards the end of 2012, pushing London (West End) not only to the top of the EMEA regional ranking but, for the first time since 2008, to the top of the global ranking as the most expensive office location worldwide.

Real estate

Poland overview

Office supply more than doubled from 218,000 sq m at year-end 2011 to 509,000 sq m at yearend 2012. Warsaw made up over 50% of the total. Large regional cities, especially Wrocław, Krakow and Poznań, attracted increasing interest from developers. 24 schemes were delivered to the Warsaw market, bringing the total office stock in the capital to 3,859,000 sq m. By comparison, Berlin has more than 17 million sq m of office space and Prague close to 3 million sq m. A total of 540,000 sq m of

office space is under construction in Warsaw and a further 620,000 sq m is in the pipeline for delivery by the end of 2015. Leasing volume in Poland in 2012 exceeded 960,000 sq m, with Warsaw accounting for approx. two-thirds of the total (607,000 sq m). Total leasing activity in 2012 rose by around 4% on the previous year. The largest deal in 2012 was T-Mobile’s lease of 27,000 sq m in Ghelamco’s Marynarska 12 complex. Among the regional cities Krakow remains the largest office market with the total stock standing at 602,350 sq m. Wroclaw attracts the biggest interest from developers, with 66,000 sq m of office space coming on

to the market last year. This strong development activity is expected to continue in 2013. The biggest vacancy declines were noted in Katowice, with a 4.6 percentage point drop, and Krakow with a 4.4 percentage point drop compared with the end of 2011, while Poznań and Wrocław had more space available (a rise of 4.1 and 3.4 percentage points, respectively). The capital also posted an increase in vacancy to 9% at the end of 2012. Modern office buildings in Warsaw’s and those centre command EUR 22–26.5/sq m/month, outside the city centre EUR 14–16.5/sq m/month. Rents in other cities range between EUR 12–16/sq m/month. ::

Poland- leader in commercial real estate Philippe Mer, Head of Territories – CEE / CEO Poland BNP Paribas Real Estate

he condition of the Polish commercial real estate market is good and investors appreciate constant development of the capitalcity. Naturally, cities such as London, Munich and Berlin will continue to be valued higher in a risk averse attitude that dominates at present. However, Poland’s real estate offers a better yield at an acceptable risk level. This is the reason why investors can boost their portfolio by acquiring office or retail assets in Poland. Poland has skilfully avoided a serious economic crisis and so far has remained to be a “green island” of growth. However, a sense of the crisis reaching the market is growing, even though the economic matrix remains good. Therefore, it is difficult to clearly determine tendencies that will rule the real estate market in the nearest future. The office real estate market will definitely continue to develop in the biggest Polish cities, if we look at the strong pipeline (above 600.000sqm to be delivered in 2013 and 2014). Together with a low level of financing this should lead to some slowdown in the midterm. To sum up, Poland continues to be a leader in CEE and this situation will not change in the nearest future. Poland’s strength

consists in high quality of provided services against relatively low employment costs, strong domestic consumption, the country’s

great demand for new big instructural projects and a continued high level of EU subsidies. ::

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Real estate

Key trends in the office leasing market in Poland The modern office is becoming a focal point of the employee’s life. Vacancy rates are expected to rise despite continued strong tenant activity. Konrad Heidinger, CBRE

BRE, the world’s largest commercial real estate services company, presents the key trends in the preferences of office tenants in its latest report: “What’s next? Office Occupiers’ Survey 2013”. The survey was carried out among enterprises based in Warsaw, however, the findings of the survey are also important in the case of regional markets. The key trends in the Polish office space market include strong tenant activity, expected growth of vacancy rates in Poland’s largest cities, as well as progressing evolution in terms of office space design towards innovative office layout. With a relatively large amount of speculative office space under development in Poland, the vacancy rates should gradually rise in the coming two years in the majority of Polish cities. The resulting increased office space availability will present significant opportunities for office tenants, including a wider selection of space and a stronger bargaining chip when negotiating with developers. The survey conducted by CBRE also shows that despite the significant slowdown in the GDP growth rate in Poland, businesses located in modern office buildings plan to increase the number of people employed or at least maintain it at a similar level (42% in both cases). As a result, CBRE experts forecast that office space demand should remain high. Konrad Heidinger, Consultant, Research & Consultancy, CBRE in Poland: “Taking into consideration growing competition among office space developers, adapting the technical specification of office buildings to the needs of potential tenants is going to be the key factor in the nearest future. From the users’ point of view, the most important elements of a building’s standard include large floor-plans, sufficient lighting of space and flexibility of the office layout. Those elements will come up in tenant’s talks with developers”.

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Office space layout is also undergoing an evolution. With the growing importance of wireless technologies, rising mobility of employees and the increasingly task-oriented character of work, in many developed office markets the open plan layout tends to be replaced with the innovative office model, where the most mobile staff members do not have their own workstation assigned – when they come to work, they simply take one of the free places. This way businesses can have fewer workstations than employees. The resulting surplus of office space is used to create additional rooms, such as interior office rooms, additional welfare areas, small rooms for work requiring concentration, additional conference rooms or large kitchens for employees. One should expect that in the long term, the modern office layout will become a typical form of interior design also in Poland. For the time being, closed space layout is the major model for 34% of companies surveyed, while the open plan layout is the most popular one, with 61% of offices arranged that way. Jonathan Steer, Director, Building Consultancy, CBRE in Poland: „Workplace consultancy is an established business line in more developed property markets. Advisory offered by experts in that area is important first of all for tenants who want to optimize their office space, but also for developers to ensure that new properties can accommodate the more flexible ways of work for their tenants and have the capacity in technical installations that meet changing demands. With the development of Poland’s commercial property market one can expect that workplace consultancy will grow in importance”. In recent years, sustainability has become a visible trend in modern office development. However, while the amount of certified space under development increases, tenants are not ready to pay more for green solutions, unless they translate into tangible savings, which in

practice means lower service charges. In the near future, due to an uncertain economic outlook, financial concerns will have a tremendous impact on the decisions regarding the choice of a business’s office location. Tenants pay particular attention to office space rent levels and service charges. The location of a building is also important when choosing an office. Firms prefer to locate their offices in places with direct access to public transport, free parking spaces and associated services, and also with well-developed road infrastructure. “To meet the new expectations, developers will be forced to rethink the format of office projects they deliver to the market. On the other hand, tenants will need to carefully analyze the work methods of their employees and how that affects the type of office space they need to lease,” Konrad Heidinger adds. ::

About CBRE Group, Inc. CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2012 revenue). The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.

Finance

Challenging market Franz Fuchs, CEO of Vienna Insurance Group Polska, Compensa TU S.A. and Compensa TU na Życie S.A. Vienna Insurance Group talks to Ewelina Janczylik-Foryś

change my very positive mindset that Poland is for us the biggest market in Central Eastern Europe. And its market potential is very high. It will take some time for average per-capita premiums in Poland to reach a level close to the European average, but we will definitely benefit from this development. What do you appreciate in Poland – stability? What we appreciate is the size of the market, which is an advantage. And of course stability - the fact that Poland managed to avoid serious economic problems. However, Poland is not an island. It depends on the countries around. And these markets are not growing. The economic growth in Poland is for the first time close to zero, despite the fact that the Polish market as a whole is big. I met in the morning the president of the Chamber of Austrian Industry picking up some investors to Poland. I asked him about the situation in Poland and he said many investors have taken a wait-and-see attitude and are more cautious. This has nothing to do with the market potential as such but shows that investors in general are really careful now in placing their investments. What can we expect from 2013? Nearly a half of the year has passed and we already expect that it is going to be the like end December. I would say the advantage of having a stable political and economic environment is the best ground for our expansion in the future. The outlook for the future is positive, but the industry is looking for the right way to operate in the next years. It means for example that you can achieve nothing by dumping prices. There is no doubt that motor TPL insurance is underpriced. Practically nobody is earning money in this segment now. We are covering these losses partly by motor hull insurance and partly by property insurance. The SME sector seems to have remained a solid backbone for the Polish economy. pm

You are an expert in insurance. The sector recorded a total profit for the year 2012. What will the market be like in 2013? 2012 was basically a good year for the insurance industry. The market expanded. We saw very positive developments and movements in both life and non-life insurance. But maybe that was the first sign of changes. First, some shareholders increased the scale of their of their operations, like Talanx. Secondly, other insurance companies - having invested years ago, started to change their original business philosophy and move more from direct business model to multiagencies, which means a closer competition with traditional insurance companies in non-life. This all has perhaps increased our appetite to grow even faster than we did in 2012. But 2013 might not be the best year for the insurance industry because the fierce competition resulted in lower premiums. We have pm

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a shrinking market right now. This is partly home-made by the insurance industry, which allowed the prices to drop, and partly due to the economic slowdown. Nothing is booming now like in the years before. People are a little bit more cautious with spending money. This is the case with both retail and corporate business. And if you do not create new goods, you do not insure them. Consequently, our business suffers. Motor hull insurance is not booming either. So, we have a negative scenario in terms of growth in this market. I do not believe that this will change in 2013. The good news is that we still might have good results in terms of profits. However, if we look at the business cycle of the insurance industry, we are moving rather down than up for the time being. This is true not only of Poland. We can see this in the Czech Republic, Slovakia and elsewhere. You might say that we have lost momentum. But this does not

Finance

Commercial real estate investors say Warsaw is a great market with a big potential, despite a large supply of space. They say they do not fear any competition. This statement is right and wrong. It is right if you look from other countries’ perspective. Property prices in Poland are still lower than in some other countries while yields are higher. If you buy a real estate in, say, Vienna, for example an apartment building to rent apartments, you get 1.5 – 2.0% return. Here in Poland you get 3.5%, 4% or as much as 5%. So why not invest in Poland? But if the number of offers is too big, prices go down. If you look at the office rental area, some 6-7% of offices are empty and the number of vacancies is not going down. Firstly, because construction is still running. And secondly, because tenants are now cautious with money and are leasing less space. Rents are going down. There are not many places in Europe right now where investment is profitable. This is perhaps in favour of Poland. You can still earn money here, but the golden times surely belong to the past. pm

Many financial and insurance institutions recorded a decline in consumer confidence. How to get back consumer trust? For a couple of years now consumers have been told about shrinking economies, job cuts and factories being closed down. If you hear all these messages you need many more positive signals in order to overcome the subdued sentiment. I do not believe that people in Poland are now pessimistic. But they are not as optimistic as before. And this is already changing the consumer behaviour. Consumers are delaying their decisions to buy even if they have the money. This is already influencing consumption and the domestic market in the country. pm

Compensa decided to open an agency in Latvia. You said that in next 3 years you assumed to earn a 7 percent share of that market. Can you comment on that after a few months later. In 2010 we opened our first branch office in Lithuania. Now we have a 4% market share in Lithuania and we are still expanding. Initially, we grew extremely fast, then we carried out a consolidation in order to re-focus on profitability and now we are growing at a double-digit rate. We have selected the right sales partners and networks. The 7% market share is not so far away, I would say. Our agency in Latvia was opened in November last year. It is a smaller market. And getting the 7% market share in Latvia may take pm

longer because there is a high concentration on Riga. Meanwhile, in big cities there is little production, not many factories. There is the SME sector there that operates more in the services and financial sectors and is very much in our focus. Your international expansion is due to your good financial standing. Expansion is one of your strategic goals? There are two reasons. The first one is that the Baltic states are undeveloped in terms of non-life insurance. We wanted to buy a company there. It was just before the crisis. Thank God we did not because it would have been very expensive. Then, since we did not know how long the crisis would stay, we decided to start with a greenfield. VIG Group has greenfield experience in a couple of countries. The group grows organically, by mergers and acquisitions, and also by greenfields. And now we are coming back to the idea of buying companies in the Baltics. If we buy now another company in Vilnius or Riga we already have a hands-on market experience there and we will make most of it. pm

Do you have innovative solutions for your clients in your portfolio? Basically, we have to say that the Polish nonlife insurance industry is not a very innovative one. But we are very innovative in the case of life insurance products. Some state authorities now say maybe there was even too much innovation because, they say, the industry allowed clients to make risky investments, allowed them to buy unit-linked products. I think the most important kind of innovation are the tools we use to sell our products. VIG has invested quite a substantial amount of money in e-business. Now, the nonlife agents no longer need to use paper. This enables them to access all their clients, pm

issue policies and transfer data. This was really a massive change in the process of selling. Another story is that the whole claims handling process has got very much streamlined to speed up compensation payment. Some clients may still complain about the amount that is compensated but it is the nature of our business is that certain things have to get assessed. But we have innovative technology, electronic files and the clients have access to any information they might need. In Compensa Life for example, our customers can see their investment portfolio develops and manage it online. So there is innovation, but it is more the environment that has changed than the products. We have set up the VIG Ekspert company where the car experts are really fully electronically supported to do the job. They take photos, enter them into the system, which they use to calculate the amount of compensation and send the data electronically to the loss adjustor. The loss adjustor uses no paper but simply looks at two screens and manages the claim faster than ever before. That was a significant investment. And an environmentally friendly one. That’s right. But the products are pretty much the same. Some, like health insurance, are even not fully allowed. There is again a discussion about healthcare reform. It does not help as long as there is no political will to introduce extended private health insurance. And there is demand for it in Poland, which can be seen by how much money unofficially circulates on the market. The black market means some services that are paid for by people out of their pocket, which never comes back to the state budget to support health care instruments. Private health insurance would reduce this effect and provide people with a good alternative to follow. :: pm

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Finance

Proud of heritage, up-to-date with the market trends Provident joins the WSE David Parkinson, President of Provident Polska, talks to “Polish Market” about the company’s debut on the Warsaw Stock Exchange (WSE) and, the credit market in Poland. Polska is present on the WSE as a duallisted company, which means that the London Stock Exchange is still its primary market. Dual listing does not entail issuing new shares but makes investing in our securities easier, for pension funds, which do not have to comply with the 5 % limit on foreign investment. For the time being, we do not need additional capital. Therefore, we did not decide to carry out a new issuing. On top of that, due to the very good financial results in the first quarter of 2013 we can look optimistically into the future. How do you expect to maintain this positive trend? We recognize that the market is constantly developing and as a company we also have a broader perspective of the whole IPF Group. It is crucial for our business to stay close to the customers and respond to their needs. We care about adjusting our services to the Customers’ needs and building long-term relations. Over 5 % of our customers are business owners. Having them in mind, we have extended our offer with a loan for small businesses to our product line and this is the segment in which we can see a chance for further growth. We have a lot of work ahead of us as around 2 million people in Poland run their own business. This is something worth fighting for. Our competitive advantage in this segment is based on the accessibility and speed with which we can offer the funds. Moreover, as part of a market test we increased the maximum offer value to the amount of PLN 10,000 and extended the loan term to 90 weeks. pm

At the end of March Provident Polska made its debut on the Warsaw Stock Exchange. What were the reasons for this decision? We are very proud that we could join the prestigious group of the WSE- listed companies. It both crowns 16 years of our activity in Poland and opens a new chapter in the history of our business. By making this move we wanted to confirm the key role of the Polish market in the business strategy of the International Personal Finance Group (IPF) and stress the transparency of our business model. Provident Polska operates on a large and mature market and has been among the top one hundred most stable financial institutions for years. We are one of the largest employers, employing almost 12,000 people both directly and indirectly and currently serving over 820,000 customers. This makes us reliable in the eyes of our investors. Provident pm

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The IPF Group focuses its activity mainly on the markets in Central and Eastern Europe. You have customers in Poland, the Czech Republic, Slovakia, Hungary and

Romania, and also in Mexico. Are there other markets with a similar potential? Because of our scale and knowledge we expand our footprint, we are not restricted to do business only in countries we operate today. Based on a detailed market research, we decided to enter Lithuania and Bulgaria as we are convinced that they constitute a great opportunity. We intend to offer the first loan in the middle of the year. Our preparations are going as planned. The credit market has become more and more crowded with new, aggressive players. How do you evaluate the growing competition? Provident Polska is a leader on the credit market in Poland. Over 3.5 million people have used our services so far. For 16 years we have invested in the relations with our customers and the top quality of our service. We are a responsible lender, which means we assess the credit rating of our potential customers scrupulously, using our own in-house developed scoring methods and in cooperation with the economic information bureaus. Our agreements are transparent and comprehensible. We explain the costs related to the issue of the loan and the rates that are to be repaid. Our customers appreciate it and many of them stay with us for years. The fact that new players have appeared on the market motivates us to act and raise our standards systematically but I wouldn’t treat new companies as our direct competition. We have a totally different customer profile. We offer a unique product a home service loan, while what the new players offer is aimed at Internet users. Our business model, developed over 130 years ago in Great Britain, works also in today’s reality so I see no reason to change anything. Except for the better. :: pm

Finance

Mistakes in economic measurement and in the quality of life Prof. Elżbieta Mączyńska

ne of the most important issues both in the theory of economics and in the economy is the measurement of the level of economic and social development and the quality of life. Not only are these issues not satisfactorily solved, but they are actually growing more complicated with the progress of globalization and social and economic complexities. The measurement method always affects the behaviour and decisions of those who are directly or indirectly affected. If incorrect or incomplete, it may lead to social or economic irregularities. Therefore, the Polish Economic Society decided to publish, as part of the series “Economic Nobel Laureates”, Polish translation of the book “Mismeasuring Our Lives: Why GDP Does not Add Up” by Joseph E. Stiglitz, Amartya Sen and Jean-Paul Fitoussi. The authors attempt not only to identify measurement irregularities, but also to set trends and suggest possible solutions. This publication deserves attention not only because its authors are eminent economists, including two winners of the Nobel Prize in economics awarded since 1968 by the Bank of Sweden. Amartya Sen won it in 1998 for his contributions to the welfare economics and Joseph E. Stiglitz in 2001 for the research into the economics of information and for analyses of markets with asymmetric information. The most important argument in favour of reading this book is that it largely refers to individual feelings, moods, evaluations, including the lack of happiness or satisfaction with life, either professional or personal. The book explains why these feelings increasingly deviate from the general

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President of the Polish Economic Society assessments of ongoing social and economic developments, based mainly on the GDP rates in particular countries. GDP is the aggregate value added (the value of output minus the value of the intermediate goods used to produce that output), that is, in simple terms, the net value of final goods and services produced in a given unit of time in a given country or region. It can be said that GDP is the sum of the country’s annually generated profits and wages. GDP is the most popular and widely used measure of economic activity, allowing comparative analyses in space and time, a measure that is subject to international standards and has well-established conceptual and statistical grounds. But GDP is only a measure of market production. This does not cover the effects of non-market activities, nor many other important phenomena. Therefore, relying merely on assessments based on GDP, without indepth, holistic, qualitative analysis, without account taken of additional indicators, may lead to false conclusions that may result in costly mistakes in social and economic policies. The famous aphorism by Albert Einstein, which gains in popularity these days, might well be quoted here: “Not everything that can be counted counts, and not everything that counts can be counted”. To illustrate the twists and turns of measuring GDP suffice it to say that this category does not include many socially useful, but non-market activities. For example, bringing up children and looking after them, or other household tasks do not increase the GDP. Hence the extension or redecorating of the house on one’s own do not add to GDP as

much as if the works were performed by an external contractor, even though the effect is the same. The same goes to a large extent to voluntary and social work. By contrast, the existence of prisons, or treating roads with salt in winter increase the size of GDP. And so does advertising, which is, by the way, often excessive and therefore irritating. GDP is also boosted owing to financial speculation that happens to harm businesses in the real economy. In addition, some part of the income generated domestically is sent abroad; on the other hand, some people receive income from abroad. These flows are not reflected in GDP, but in the so-called national income. The national income is lower than GDP if, for example, foreign investors transfer profits to their home countries. These profits are included in GDP, but do not increase the purchasing power of the country’s citizens. That is why for the country, especially a developing one, the fact that its GDP grows may be of minor significance. What is important to consider is first and foremost raising people’s quality of life. The measures of national income in such a case are much more relevant than GDP. These examples point to a kind of a theater of numbers, with data and statistics forming a curtain that cuts us off from reality. Therefore, the authors of the book “Mismeasuring Our Lives” propose solutions to improve the measuring of social and economic achievements, and above all to assess whether and how these translate into people’s quality of life. That is what makes the value of the book. ::

28-29 LISTOPADA 2013 , WARSZAWA

IX KONGRES

EKONOMISTÓW POLSKICH „EKONOMIA DLA PRZYSZŁOŚCI. ODKRYWAĆ NATURĘ I PRZYCZYNY ZJAWISK GOSPODARCZYCH” WWW.KONGRESEKONOMISTOW.PL , ZK@PTE.PL, TEL. 022 551 54 01

Finance

The bright and the dark side of success Roni Einav, co-author of the book “Nordau to NOSDAQ”, talks to Błażej Grabowski about doing business and his book.

well as e-mail and SMS, was not an option at the time, and support by cellular phones just emerged and was extremely expensive. The IT industry is one of the fastest-growing and rapidly changing areas of the economy and business. What is your recipe for keeping things innovative? What should you do to identify innovative ideas and screen out the unexceptional ones? I cannot say that there is systematic recipe. Israel is relatively rich in non-conventional dreamers, usually youngsters who are typically risk acceptant. I prefer dreams which I feel I can bring value to, mostly software plus exceptional technology, and founders with internal confidence, passion to business success and management talents. I have my way to qualify an idea, basically using large network of friends, executives and entrepreneurs, most of them in Israel and some abroad. pm

Photo: A. Charuba

You launched the New Dimension Software company in the 1980s, and have since developed a couple of other technology companies. What is your view of the changes that have taken place over the years in the way people establish and run business? What’s important these days? Basically the initiative has to come from the same source- the brain and heart of the founders. Years ago the need and the solution were supposed to be clearer, and were designed to solve a real problem and improve certain issues. Improve automation, save manpower and/or time, save costs. Basically it went to the direction of system software and better infrastructure. Today, a certain portion of the start-ups are going this way and this is the majority of my activity. Other start-ups are going this way, but in the individual level- organization of the mail, better search, GPS, etc. Other directions that exist today and are “new” relative to the 1980s are: 1-social media applications, gaming, other internet applications, automatic building of SMB applications, etc. I do sometimes such an investment but it is relatively rare. 2-applications and software packages that are related to gambling, dating, FOREX, etc. –I do not enter this scene. Also, during the 1980s, at least in Israel, founders did not have access to venture capital. Today, this option is viable, and founders do not move significantly without external funding in most of the cases. It is also interesting to remember that work from home, as pm

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New Dimension has been successful in both Europe and the United States. Is there any difference between these two, or does the globalised world of today make it increasingly irrelevant where you run your business? My experience was very different and we saw Europe as a collection of cultures and territories that you have to treat differently (a brilliant Salesman from Chile was good enough to overcome the sensitivity between Barcelona and Madrid ….) with certain guidance from the center regarding pricing, procedures, etc. The salesmanship and relations were very local and in most cases close and warm. The same was with South America, Australia and Japan/South Korea/HK/Singapore. North America was much more organized, centralistic and formal. By the way, in our global approach at the time , we did not devote any resources to India, China, Russia (USSR) and eastern Europe, including Poland. We felt that the market was not ready for our technology and will not accept us . pm

In “Nordau to NASDAQ”, you emphasise how important your family has been for you. What is your recipe for reconciling the professional and the family life? Has your family’s support been indeed a major factor in achieving success in business? The truth is that the family can disturb a lot, and for good reasons. The risks we took were a little bit exaggerated. Luckily, my family agreed to play the dangerous game and believed in my judgment and risk “calculation”. After all, we did our trip without external funding and the founders were exposed personally in the bank. pm

You have successfully led New Dimension through many difficult times and crises. These days, young entrepreneurs often complain about the crisis and difficulties in running a business. Can you share a few tips with them on how to cope with obstacles and deal with crises? Basically, most of the book is about this issue. Complains do not contribute anything and you have to believe in yourself, your technology, the need that you identified, etc. I used to say that two brilliant Japanese sales people can balance for our company anything which is wrong in the Japanese economy. We just need to have them working for us!!! Also if you work in 40 or 50 countries, there are always legal issues, economic problems, pricing issues, etc. Even if 20% of the screen is grey, still 80% is green and OK. Founders have the tendency to see in rosy colors. :: pm

Mr. Roni Einav Was a founder of New Dimension Software, successfully grew the business over 15 years and eventually sold it to BMC Software in 1999. Mr. Einav is extremely active in the Israeli high-tech industry serving on the board of a number of high-tech companies.

PROMOCJA NAJNOWSZEJ KSIĄŻKI RONI A. EINAVA

Miriam Yahil-Wax & Roni A. Einav

“NA ROGU NORDAU I WALL STREET” HISTORIA IZRAELSKIEJ FIRMY HIITECH

KSIĄŻKĘ POLECA:

Finance

Most wanted: Long-term bank financing Prof. Małgorzata Zaleska The author is a member of the Board of the National Bank of Poland (NBP), a full professor at the Institute of Banking and Business Insurance Warsaw School of Economics (SGH) and vice-president of the Committee on Financial Sciences Polish Academy of Sciences (PAN).

oday’s crisis has provided many reasons for us to change the way we see some aspects of banking practice and regulation. One example is the collapse of the belief that investment in government securities is free of risk. Additionally, the crisis made us realize the importance of passive credit risk, that is bank financing. The problem concerns not only the size of funding, but also its diversification and structure – in terms of its source, currencies and maturities. The European Commission has noticed this problem. At the end of March 2013, the Commission published “Green Paper on LongTerm Financing of the European Economy,” in which it pointed to the problem with the maturity structure of bank financing. Also in Poland, a maturity mismatch has been present for years in the banking system, as banks operating in Poland finance long-term loans, for example mortgages, with short-term deposits or credit lines. One reason is that households tend to choose short-term maturities when depositing their savings and are increasingly

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wary about their security. Long-term deposits account for less than 3% of overall deposits of Polish households and businesses. Moreover, it is quite natural that at a time of crisis the interbank market has become exceptionally short-term – market players do not want to have their money frozen for long periods. In the first quarter of 2013, almost 90% of transactions on the unsecured interbank deposits market in Poland – around 80% of the total volume - were overnight deposits. The adoption of new liquidity standards – including long-term liquidity –under the Basel III supervisory framework additionally exposed the problem of insufficient long-term financing faced by banks in Poland. Given the existing balance-sheet structure, it may be difficult for some banks operating in Poland to meet these standards. And it is impossible to change the structure of the sources of bank funding overnight. As a result, it is necessary to start thinking now about how to get ready for the new challenge. The task of finding a solution to this problem was assigned to an inter-institutional working team for the development of the public market for long-term debt securities issued by banks. The team dealt with the problem of long-term bonds and covered bonds issued by banks, and securitization. None of the markets and long-term financing instruments mentioned above is sufficiently developed in Poland. So far the issues of banks’ own bonds in Poland have not been designed to build a longterm financing strategy, but only to improve current liquidity. Additionally, only some institutions are involved in creating the banks’ bond market. Other banks are completely inactive in this respect. On average, only 14 commercial banks operating in Poland issue their own bonds in a given year. Covered bonds issues are of marginal importance in Poland. There are only two mortgage banks operating in Poland – BRE Bank Hipoteczny and Pekao Bank Hipoteczny. Their

combined assets are worth PLN5.8 billion. The share of covered bonds in bank financing in Poland is only 0.14% while the EU average is 20%. The highest percentage is in Denmark and Germany. Only several years ago all mortgages in Denmark were refinanced with covered bonds. And even during the recent crisis the confidence of investors – especially German and French ones - in covered bonds has remained strong. The working team focused on identifying factors behind the insufficient use of longterm sources of financing and on identifying ways to increase this kind of financing by banks. For each of the analysed instruments, the team identified significant legal barriers to their development, including taxation. At the same time, the team found that the biggest barrier to acquiring financing through the issue of own bonds by banks was the level of interest in long-term issues. As a result of the recent crisis, this cost is particularly high. An additional problem is competition from securities issued by the Ministry of Finance. Compared to banks’ bonds, the liquidity of the government securities market is much higher while yields are similar. Consequently, potential demand for securities issued by banks is constrained. It is important for banks to have longterm sources of financing not only from the perspective of assessing their financial condition and compliance with standards, but also from the perspective of securing sources of funding for long-term investment projects, which are a factor of economic growth. One should also emphasise that financing is dependent to a large extent on the activity of European banks with a smaller share of direct financing by capital markets. The dependence is also observed in Poland and the situation is unlikely to change soon. This means that the long-term financial instruments market has a big, and so far untapped, potential for growth. ::

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Finance

Economy may be simple Prof. Robert Gwiazdowski President of the Management Board of the Adam Smith Center, expert in economic law, tax law and economic governance

dam Smith wrote that there are three sources of wealth of nations, namely land and its resources, capital and labour. As labour is nowadays referred to as “human capital”, the second type of capital is specified as “financial” for a better differentiation. However, a land which lies fallow will create no added value. A capital that is accumulated in a bank or hidden “in a sock” will not create any added value either. Only people can use them; it is labour that creates the added value. The term “capitalism” does not come from “the capital” or “Das Kapital”. Etymologically, it was derived from the Latin “capita” (head)! While “entrepreneurship” is derived from “prehendo” - “discover”, “be aware”. People “prehendo” owing to “capita”. That is why every time I hear a discussion about the financial sector, I feel like paraphrasing Papkin, a famous character of Polish playwright Fredro: “Consider the proportion, Your Grace” (“Zważ proporcjum Mocium Panie”). Using its representatives, the financial sector has called itself “financial markets” or even “markets”, no longer adding that these are “financial” markets that are meant. That is because the financial sector is to be synonymous with the market in general. One does not hear such questions as, for example, how “tomato markets” are going to react to the election of a new president or prime minister in some country. Instead, the questions of how “financial markets” are going to respond can be heard. And what is that we need more to live - tomatoes, or money? That money buys tomatoes? You must be joking. First you have to plough, then fertilise, plant, tend, collect and finally transport to a store using a vehicle that someone produced using steel from the ore that had to be mined, to a store that had to be built... and all that people can do without money! They did so for hundreds of years, but initially they used horses that pulled carts instead of motor vehicles. Indeed, the financial sector is important and needed by economy. Money facilitates not only a direct exchange, but also the one that is “postponed in time”. We can exchange our production capacity in the future for investments and consumption in the present thanks

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to the savings of others and loans. This is the most important function of the financial sector. It does not mean that it is more important than all the others, though. Because it is not. The best example is the famous “Bastiat’s Plough”. Frederic Bastiat shrewdly observed that when a farmer borrows fifty francs to buy a plough, he does not actually borrow fifty francs, but that plough. If the value of that farmer’s products at that time was equal

carpenter purchases a tailcoat and shoes. But in fact, the value of the goods that the farmer will produce in the future with the use of the plough constitutes the basis for their exchange for the plough and the exchange of the plough for the furniture, the furniture for the tailcoat and shoes and the tailcoat and shoes for… the farmer’s products perhaps. Henry Hazlitt, who cited Bastiat repeatedly, wrote that a loan is not something a bank-

to the one of the plough, he could carry out an exchange immediately. If it was not, he could borrow the plough from someone. He would become that plough’s owner when he was able to transfer the ownership of the corresponding value of the plough to its current owner. But the owner of the plough may not need the products of the farmer at all in a given time horizon. However, he is interested in the furniture produced by the carpenter, who in turn would like to buy a tailcoat and shoes. The value of money as a measure of the value of products or services consists in the fact that it facilitates carrying out of such an exchange between the owner of the plough, the farmer, the carpenter, the tailor and the shoemaker. No one borrows money for its own sake, but only to buy something with it. So the farmer borrows the money for the plough from a banker, for which the owner of the plough buys furniture and the

er gives to a person. “On the contrary, a loan is something that one already has. He or she has it, for example, due to the fact that he or she possesses assets of more financial market value than the loan he or she tries to get. Or the person has it owing to his or her character and the results he or she has achieved so far. That person brings them to the bank. The banker does not give something for nothing. He thinks that he can be certain that the debt will be repaid and simply exchanges a more fluid form of assets, that is, the loan, for a less fluid one.” Unfortunately, the modern macroeconomists use a language that no one understands to talk about all those simple things. Perhaps they are afraid that if people understood, it could be concluded that economy needs macroeconomist as much as nature does meteorologists. ::

Economy

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NAJLEPSZY

BANK

2013 MIESIĘCZNIKA

MENEDŻER

ROKU

2012

MIESIĘCZNIKA

Law

Doing business in Poland a brief overview of the liability of participants in the investment process Katarzyna Barańska, lawyer in Real Estate practice, White & Case the architect has to prepare a building project, but the general contractor must check the correctness of the project and inform the architect and investor if it has any concerns regarding the implementation of the project.

General types of participant liability affecting investors

he question of the liability of participants in the investment process usually arises when the investor has to bear significant costs related to the removal of investment defects, pay damages to its clients or reduce the price of, for example, defective apartments. In such cases, the investor needs to properly assign the liability for the defects to each investment process participant. In the case of large, complex investments, such assignment may not be an easy task; in the worst-case scenario, it might not even be possible.

Main players in the investment process

In general, the investment process usually involves the engagement of many participants, not only the investor, architect and general contractor, but also other parties such as sub-contractors, construction site supervisors (kierownik budowy), usually engaged by the general contractor, the investor’s supervision inspectors (inspektor nadzoru inwestorskiego), engaged by investors in larger investments, site managers (zarządca nieruchomości), and others. Even though each party has its own duties resulting from, e.g., statutory and contractual obligations, those duties overlap. For example,

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The liability of each investment process participant may arise under general rules of law, i.e., (i) contractual liability, e.g., for the nonperformance or improper performance of a contract as regulated by Art. 471 of the Civil Code or (ii) tort liability, for damage caused by the improper action of any of the participants as regulated by Art. 415 of the Civil Code. In some cases, damage may result from both contractual as well as tort liability, e.g., when a party not only improperly performs its contractual obligations, but also breaches a statutory duty. In such cases, the investor may not cumulate the grounds for liability, but must choose one, usually the one which is easier to prove. In some cases, investment process participants may bear joint and several liability, which results from statutory rules of law or contractual provisions. Joint liability means that two or more persons share the same liability, i.e., the harmed party may seek restitution for its entire claim from all the liable parties together or from any individual party. If one party pays the whole debt, the others who are jointly liable are exempted from liability, although the paying party can seek compensation from them. For example, under the Polish Civil Code the investor and general contractor are jointly liable for payments to subcontractors. The main condition for creating such liability is that the investor must give its consent for the performance of each subcontractor; the minimal requirement for the acceptable form of such consent is, however,

disputed in Polish jurisprudence. Joint liability resulting from contractual obligations is very rare since, although it is very convenient for investors, it imposes too much liability on other investment process participants, which is usually not accepted. The last type of liability, quasi joint liability or “in solidum liability”, is usually considered by investors if an investor is unable to assign the liability for the occurrence of damage to particular participants or is unable to define to what extent each participant contributed to the damage. In such cases, the investor must consider bringing a claim on the basis of in solidum liability against all the parties that caused the damage, without specifying the scope of the liability of each participant. The compensation request included in such claim will be based on the actual damage, even though the duties of each participant result from different contractual obligations and the parties are not jointly liable under statutory law.

Bringing an action The procedure is rather straightforward if, on the basis of documents in its possession, the investor is able to assign the liability for defects to individual participants in the investment process. Depending on the contract, the investor may file a claim against a participant or participants in common court or arbitration court or may request a court settlement and negotiate the conditions of a settlement. However, the cases related to the liability of investment process participants usually require a massive amount of proof and technical expertise, delivered to the court on the court’s order during the court proceedings. Due to the complexity of such cases, they are often lengthy and require the services of an experienced legal advisor. ::

Law

What’s next for renewable energy? Eligiusz Krześniak, PhD, Squire Sanders Święcicki Krześniak sp. k.

he European Commission is not one of the fastest EU institutions. At some point however even the EC’s patience runs out. In the case of renewable energy this patience ran out when a lawsuit was filed against Poland with the ETS. The EC found that Poland was in breach of the obligation to implement Directive 2009/28/EC on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC. The time limit for implementation of the legislation ran out on 5 December 2010. While the EC is concerned first and foremost by the delay in implementing the new legislation, investors are most concerned by the nature of the solutions that the Polish Ministry for the Economy has put forward up to now. Before I discuss the optimal model here is a brief summary of the Ministry’s proposals.

The proposal for the new Act on Renewable Energy from the viewpoint of investors

As this article goes to print the proposal for the bill on renewable energy most recently made public was the document of 9 October 2012. The proposed solutions are intended to reduce the burden created by the current system of funding, which is considered by some as too high. The authors have forgotten the most important thing, however, that a large portion of the benefits from the sale of green certificates currently goes to conventional (coal) energy, which is combustion of biomass with coal. No more than 25% of revenue from this has gone to “real” renewable energy since 2005.1 The solutions the Polish Ministry for the Economy is proposing however now strike most of all at the actual investors in renewable energy. This will be caused by both the introduction of a maximum price for electricity, and the fact that the rules for issuing green certificates will be formed in such a way as to discourage sales of energy to a party other 1 P. Łuba, “Summary of Plenary sessions”, materials from 4th International Green Power Conference, 2013, Warsaw.

than the obligated seller and in practice will render impossible sale of energy at a price above PLN 198.90 per MWh (megawatt hour). This means that in fact the standing of renewable energy will be worse in relation to the current system both in the event that electricity prices on the competitive market rise in coming years, and if they fall! In the former case renewable energy investors will not reap any financial benefits from an increase in prices of “black” energy, and in the latter - that they will bear the entire risk of a fall in energy market prices. Secondly, the Ministry is proposing a massive change to the green certificate system, which will harm investors. The period of funding is to be limited to 15 years and the number of economic rights to certificates of origin of electricity generated by wind farms started up after 2013 and the amount of the one-off substitution fee is to be set a fixed rate of PLN 286.74 per MWh and will not be subject to indexation. According to calculations presented by PwC, the mere fact that there is no indexation means that by 2017 the difference between the substitute fee stated in the proposal and the hypothetical fee calculated according to the current rules (i.e. with indexation) is 15% and the predicted fall in flow of revenue of wind farms by 2028 as a result of the bill being passed in its current form could be as much as 33%! 2 Thirdly, there are no temporary provisions in the current proposal. A significant majority of the existing renewable energy installations were built using funds from financial institutions. The loans have not been repaid and will not be repaid quickly. A change to the rules of the game and the length of the game – and such a drastic change – is harmful to the public’s faith in the state and is unconstitutional.

How should the new law look like? When it comes to suggestions for the future, it would be best to start with the most general 2 Source: presentation P. Łuba, „Analysis of financial risk of new bill on renewable energy of 9.10.2012. PwC Polska Sp. z o.o.”, slide 11 and slide 14. Materials from 4th International Green Power Conference, 2013, Warsaw.

issue – a strategy is needed for restructuring the Polish energy market that takes account of the need to develop renewable energy. Poland’s Energy Policy up until 2030, adopted in November 2009, is already out of date and needs to be substantially reviewed. The amount of support needs to be predictable both in the short and the long term, and any potential changes should be preceded by vacatio legis of at least a few years. The rules of the game are not changed while the match is being played, especially if banks are financing it. The sale price of electricity should not be restricted in any way. Only this will allow renewable energy to take an active role in the market, in particular at a time of creation of a common electricity market. Equally vital is maintaining indexation of the substitution fee according to the present rules on the basis of which a large number of investments were undertaken. During the first or second year following abolition of adjustment for inflation revenue will not be affected very much, but after that with each passing year the difference will be greater and greater. In fact the temporary provisions have to be included in the proposal, stating the rules for funding projects that have already been completed and those that are underway. The new solutions should not be detrimental to those projects or violate the rights that have been acquired. If the suggestions made above are implemented the renewable energy sector will be able to continue to grow steadily. I hope and am counting on a good bill being passed still this year. :: Eligiusz Krześniak Attorney-at-law, Doctor of Law, Partner at the Warsaw office of Squire Sanders, Recommended Arbiter at the Polish Chamber of Commerce. His practice focus is regulatory, energy and telecommunications and media law, and IT and IP, and includes some of the largest deals in this area carried out in recent years in Poland. Eligiusz Krześniak is also highly experienced in merger and acquisition deals.

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Cultural Monitor Maciej Proliński recommends. Lutosławski Year – halfway through

ore than 50 cities throughout Poland as well as Tokyo, Beijing, Berlin, London, Paris, Lvov, Chicago and Philadelphia are celebrating the Lutosławski Year, which marks the 100th birth anniversary of the famous Polish composer. The first four months of 2013 have seen an impressive number of events devoted to Witold Lutosławski – festivals, symphony and chamber concerts, releases and publications of recordings, books and scores. Over 120 events were held in 59 cities in 24 countries until the end of April and more are forthcoming. Andrew Clark of “Financial Times” says the events will attract as much interest across the world as the anniversaries of Verdi and Wagner. Stanisław Skrowaczewski, a legend of Polish conducting, will interpret Lutosławski’s Symphony No. 1 in Warsaw’s National

Concert Hall on June 7, to end the artistic season 2012/2013. In the same month, Anne Sophie Mutter and Lambert Orkis will appear in a series of chamber recitals in Japan while Lutosławski’s concerto for orchestra will be performed by Orchestre de Paris under Andrey Boreyko in the Salle Pleyel concert hall in Paris. Lutosławski’s music will be one of the highlights of the most important international festivals - BBC Proms will present a wide selection of Lutosławski’s oeuvre. August will see the Ninth International Music Festival “Chopin and His Europe” in Warsaw. This year’s theme of the festival is “From Chopin to Lutosławski.” In autumn, at the Berliner Festspiele arts centre, music lovers will have an opportunity to hear Symphony No. 3 in two exceptional interpretations: by Berliner Philharmoniker under Sir Simon Rattle (September 7-8) and Philharmonia Orchestra under Esa-Pekka Salonen (September 9).

Museum of the History of Polish Jews

pen Days were held at the museum on April 20 and 21 to mark the start of its activity in a new building. Over 15,000 people from Poland and other countries visited the museum during the Open Days. The Education Centre, where various workshops were held to discuss books and films shown at the museum, was virtually besieged by visitors. At the same time, 400 volunteers handed out paper daffodil badges to passers-by as a symbol of remembrance of the Warsaw Ghetto Uprising. The Museum of the History of Polish Jews is located at the heart of the former Jewish district – at the intersection of Anielewicza and Zamenhofa Streets – the site of the Jewish Ghetto during World War II. The official opening of the museum is scheduled for October 20, 2013. The museum’s core will be the Main Exhibition, which will occupy over 4,000 sq. m. It will be presenting the 1,000-year history of Polish Jews. It will be a chronological and thematic exhibition showing individual historical periods – from the Middle Ages to World War II.

Jazz in the Old Town

he 19th International Open-Air Festival Jazz in the Old Town will begin in Warsaw on June 22. The festival, which is an artistic and tourist showpiece of the Polish capital, is one of the most popular jazz festivals in the country. Over the 18 years since its inception, the festival has attracted an audience of more than 500,000. A distinctive feature of the festival is its varied programme, with the appearance of international stars, premieres, and jazz discoveries. The 19th festival also promises to be a sensation. Among the performers will be Jacky Terrasson Trio – the American musician is one of the most outstanding and popular jazz piano virtuosos of the young generation; Hiromi Trio Project – a young talented and award-winning Japanese jazz star; Enrico Pieranunzi Trio – the star of Italian piano music; and Bester Quartet – a Polish band from Cracow, a sensation on the international music market. The Quartet combines classical, jazz, avant-garde and contemporary chamber music to reinterpret traditional Yiddish folk music.

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“Pokłosie” (Aftermath) – Monolith - DVD

Krystyna Stańko – “Kropla słowa”

mbitious and emotional Polish popular cinema – inspired by real-life developments, the thriller by Władysław Pasikowski tells a story of inhabitants of a Polish village who killed a group of Jews during World War II. The film is set in the village, but in the present time. The main characters are brothers Józef and Franciszek, who have to face up to the tragic developments of many years ago. Months after the film’s first showing in cinemas, real emotion continues to be its strength. The emotion is hidden between the words in the screenplay and in the film’s message. It is also visible in excellent acting by Ireneusz Czop and Maciej Stuhr, who play the leading parts. The topic that Pasikowski has undertaken is a difficult historical issue – the question of admitting to some sins that the Polish people, or rather individual persons, have committed. Ever since its first showing the film has divided Polish audiences.

Marek Dyjak – “Kobiety”

(A Drop of Word) – 4ever Music – CD

ne of the most interesting Polish jazz vocalists, Stańko has dreamt for years of combining the beauty of music with the beauty of Polish lyrics. The compositions the album contains combine poetry by outstanding Polish poets - Halina Poświatowska, Wisława Szymborska and Tomasz Jastrun – and subtle chamber music of vibraphonist Dominik Bukowski. The album also features music composed by Stańko herself. Outstanding instrumentalists – drummer Cezary Konrad, saxophonist Maciej Obara, guitarist Jacek Królik and others – have taken part in recording the album alongside Bukowski. It is one of the best jazz albums in recent years because it combines formal and sound experiments with artistic vigour and musical ferment. The Polish musicians know well what the jazz canon is and where current jazz trends come from. But the most important thing is their personal attitude to jazz and poetry.

(Women) – Agora – CD

he new album by Marek Dyjak, a real sensation of the Polish music scene in recent years, is composed of over 10 songs by the best Polish singers and lyricists: among them Agnieszka Osiecka, Kasia Nosowska, Kasia Groniec and Magda Umer. The project was risky, but it turned out to be a real artistic success. The album shows different personalities, temperaments, moods, climates and rhythms. Music lovers are sure to find fun in hearing how they compete with each other. Dyjak not only sings, but also “tells” a lot to audiences in his album. It is a fascinating mix – organically integrated, well-thought-out and emotional. It is another album showing Dyjak as an unusually versatile singer with great sensitivity.

Viola Brzezińska – “A2” – 4ever Music – CD

iola Brzezińska is one of the young Polish singers who are still waiting to be discovered by wider audiences. Her second album, which brings Polish, international, jazz and ethnic associations, is able to provide special emotions to the most sophisticated music lovers. I recommend the album to all those who like subtlety and originality in music, smile and melancholy, beautiful melodies and hits. A distinctive feature which sets the album apart from others is its sound consistence. The musical producer of the album is Marcin Pospieszalski, a reputable music producer in Poland and abroad. Outstanding musicians with whom Viola works on a regular basis as well as Lidia Pospieszalska (backing vocals), Marcin Pospieszalski (bass, violin, backing vocals), Thomas Celis Sanchez (percussion) and Sławek Kosiński (guitars) have taken part in the recording.

Grażyna Łobaszewska – Anniversary Concert in Polish Radio – Polish Radio – CD

he album was recorded on December 2, 2012 during a concert in Polish Radio’s Witold Lutosławski Concert Studio. Łobaszewska, one of the best Polish singers, was accompanied by the Darek Janus band and the Polish Radio Orchestra. The album is a special gift from the singer to her loyal fans on the 35th anniversary of her artistic work. It features both her biggest hits and songs from her recent album “Przepływamy” (Flowing). At the concert, the artist received the Polish Radio Honorary Golden Microphone award with thanks for all the songs she had recorded in Polish Radio studios, and a Silver Gloria Artis Medal for Services to Culture from the Minister of Culture and National Heritage. On receiving the award, she said: “Instead of talking, I prefer to sing to you.” Thanks to the album, we can again hear her voice, which is still so fresh and endearing.

From Polish Radio Library - Anna German – Polish Radio – 2 CDs

he album with songs by Anna German, a Polish singer endowed with a nightingale-like voice, has been released as part of the series From Polish Radio Library. The double album contains radio recordings of 19611978. On the one hand, its is an interesting memorial collection of songs, which have much of a simple charm. On the other hand, the album shows that German’s talent was largely untapped. Her talent, the unusual timbre of her voice and vocal capabilities were much beyond the standard of popular songs. The album contains examples of how she crossed this barrier.

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New DVD and CD Releases

Cultural Monitor

Culture

Where art meets its subjectivity Maciej Proliński talks to Aneta Muszyńska, curator of the exhibition project “Spectra Art Space”.

We are meeting shortly before the “European Night of Museums” -the only such “White Night”, also in Polish cities, showing quite measurably how great people’s interest in the art is. But this is the art’s holiday. And what is in your opinion the art’s ordinary day? The “European Night of Museums” is a very attractive, unusual and nice event. After all, it is interesting to be able to go in the evening and at night to places that usually are not open at this time. It is also a massive campaign that has an important and somehow nicely unifying social dimension. Ordinary life in this regard is definitely different though. I have been dealing with the promotion of contemporary Polish art for 25 years. My understanding is that what we have to do now is to answer the question whether we are building the awareness of art among people. In fact, being conscious of the need to commune with art is of paramount importance, namely because it entails active participation in the widely understood culture. I am not talking about the level of Polish art and related issues such as various initiatives and foundations. What I mean, and I would like to emphasize, is first and foremost building art awareness among Polish people. pm

I have always insisted that the most powerful, influential and globally recognized Polish brand is culture. A few years ago, we even started to draw a parallel between the words “culture” and “capital”. Do you think that today’s global economic slowdown will affect, I mean obscure, this parallel?

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No, I do not agree that the economic crisis will obscure anything here! The “economic downturn” or “crisis” are the buzzwords that have no influence on art. What is impactful, however, is asking embarrassing questions such as: “Why is the point in dealing with culture if we lack orphanages or hospices?” Combining these categories that are completely incommensurate is something simply erroneous! You cannot compare museums to orphanages! Both are needed. Nor can you make the choice between what is “more needed”: something for your spirit, or something for your body. All in all, art is about making people realize the imperative that creates the necessity. Spectra Art Space has been involved in building art awareness since the beginning of 2013. The project of the Starak Family Foundation draws upon the world’s best practices and aims to create a new, experimental venue dedicated to contemporary art in the office building at 6 Bobrowiecka Street in Warsaw. It is something pioneering in Poland. Could you elaborate on that? Art has always been meaningful for the human being insofar as it conjured the reality. Art is also such an element of social life that shapes the remaining elements. It is often at the forefront of other social and political developments and trends. That said, art is never maintained “by itself”. It does not earn money. It is a sphere that bears fruit in people’s minds... so it works differently. It is nearly 30 years ago that, in what I call a “civilization”, the first symptoms of pm

Corporate Social Responsibility began to appear. What does a responsible business do? Responsible business plans long-term projects aimed at achieving the desired effect. Activities of this type have been introduced to serve the purpose of the promotion of art, including mostly contemporary phenomena, which best reflect what is happening in society. Projects like “Art Space” are usually independent units in the company’s structure. Moreover, there are also foundations set up to coordinate all these activities and a curator who works out the programme, geared to the expectations of the targeted audience. In Spectra Art Space we do something right for the people, that is for those who are here to work every day. Drawing upon the world’s best and proven practices of such corporations as Deutsche Bank or Bloomberg Space, we create a promotional and integrational place, but also a social one - open to all those interested in cultural phenomena. What is the development strategy of Spectra Art Space for the future? What kind of an artistic message have you conveyed so far? We started in February 2013. In the Spectra building at 6 Bobrowiecka Street it was possible to see an interesting photo exhibition “Beyond Time”. This was yet another presentation in the area of contemporary art, held by the Starak Family Foundation. Previosly, the Foundation organized two exhibitions featuring works of the young generation of artists: Young Creation Plan “Painting” and Young Creation Plan “Sculpture”. The “Beyond Time” exhibition showcased works of the Polish artists: Ewa Doroszenko, Aleksandra Buczkowska, Dorota Kozieradzka, Agata Michowska, Monika Misztal and Agata Zbylut. In the future we intend to hold three major exhibitions a year, both collective and solo ones, possibly with one of the celebrities of Polish contemporary art. Exhibitions for the Spectra office building staff and for the residents of Warsaw will be open from 2 to 3 months. I am currently working on the summer exhibition. The development strategy of Spectra Art Space involves artistic and cultural activities, with the special emphasis on pm

Culture

the promotion of young Polish artists. We are also willing to establish cooperation with other similar institutions, as well as to organize guest meetings, combined with guided tours of the exhibition and collections. In addition, we are planning educational activities, workshops, symposia and lectures for employees, visitors and customers. In the long run a library with publications and catalogues on contemporary art is to be created. So your strategy is also to “garnish” this place as far as possible both substantively and educationally? Creating an art- friendly place is not enough to present all the related aspects. We want to give the audience an incentive to further seek the art connotations in a wider context. That is how creative thinking and attitudes are shaped towards other, not merely artistic, phenomena. Some employees are linked to art projects, they develop a natural need for dealing with a given phenomenon as well as a greater self-esteem. And that is something which directly affects the creative thinking. What is important is that art education should first teach how to formulate questions. When we are able to ask questions, we are not indifferent to certain matter any more. We do not stick rigidly to our ideas, but we are open to many other issues. pm

Looking at what we are talking today, it seems that we will need to attain the level due to the Central European nations, and to make reference to the thoughts of the previous generations of Poles and the interrupted national tradition. Poles are one of the largest nations in Europe. Poland’s population represents a huge strength. It should be remembered that the world’s major art collections or design school were created by artists, but also (and even above all!) by the people who understand that the profession of artist has already its bearing, I mean businessmen. So finally, let me ask about Jerzy Starak, the owner of the pharmaceutical company Polpharma and the sixth richest Pole according to the 2013 Forbes list. It must be a sheer pleasure to work with someone who understands the importance of art? Jerzy Starak is an exceptional person. Not only did he get involved in the project, giving it the green light and the necessary funds, but he also shares his private collection of art with other users of the Spectra building. The collection includes nearly 100 objects of Polish post-war first rate pieces of art: Tadeusz Kantor, Jerzy Nowosielski, Wojciech Fangor, Władysław Hasior, Jan Lebenstein, Roman pm

Opałka, Stefan Gierowski. I think that the people who work in the Spectra office building in Warsaw feel a bit like in a museum of contemporary art. They have direct and daily access to an excellent review of the Polish works of art created after 1945. The selected works are mostly described as outstanding achievements of individual artists. Apart from this special collection, the mere idea and exhibitions held as part of the Spectra Art Space, it is also worth visiting the Spectra building itself. Its architectural project has been mentioned in the prestigious Phaidon Atlas of 21st Century World Architecture. The space dedicated to art is a very special place, too. What I want to say is that this is not a “corridor on the way to the dining room”, but a place with its subjectivity. With the surface of 300sq m it was possible to create a really comfortable space for art presentation, and therefore for the fulfillment of the foundation’s objectives in terms of promotion and popularization of the contemporary artistic phenomena. It is

worth writing about it. If Mr Starak gives an example, it is possible that other courageous businessmen will follow in his footsteps. It is a norm, a standard thing elsewhere in the world, while in Poland there are still very few entrepreneurs committed to such long-term investments. I am confident that we are able to reverse this unfavourable trend and to open Polish culture wide to the economy, breaking some existing mental barriers. What we should start with is to build the awareness, the one we talked a little bit today, and that is what we are doing. I do invite you to visit the Spectra Art Space! ::

Photo exhibition “Beyond Time” inaugurating exhibition project “Spectra Art Space” Photo: Ewa Doroszenko

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Culture

With a woman in the foreground The 2012/2013 season, which is drawing to an end, was another important and formally-diversified artistic message. This time, with the woman in the foreground.

Maciej Proliński

antastic choreography, dynamic and lively ballet routines accompanied by modern music – these amazing impressions were brought to us by the “Echoes of Time” ballet. This ballet evening consisted of three parts, each of which was prepared by a different choreographer. The first was created by Ashley Page, a British choreographer, to the music of a piano performance by American composer

John Adams. The second part featured the ballet of Krzysztof Pastor to the music of Alfred Schnittke and Henryk Mikołaj Górecki. The last act of the evening was the ballet of William Forsythe, American choreographer, to the music of Johann Sebastian Bach and Eva Crossman-Hecht. Undoubtedly, this was one of the unforgettable evenings at the Warsaw opera. Another such feast for ballet enthusiasts was the

staging of “A Midsummer Night’s Dream” by John Neumeier. The performance was staged out by the Polish National Ballet in the context of the 400th Anniversary of William Shakespeare’s death in 2016. It was another lesson learnt by the Warsaw ballet and by Warsaw, and the Polish audience, which, in addition, carried an enormous amount of pleasure, joy, and awe. The over-35-year-old “A Midsummer Night’s Dream” by Neumeier, which was staged in Warsaw for the first time, is still a fresh show, a firecracker of the invention of this legendary choreographer, and proof of the excellent shape of the Polish team. The premieres of Giuseppe Verdi’s “Don Carlo”, directed by Willy Decker, Paweł Szymańskis, “Qudsja Zaher”, directed by Eimuntas Nekrošius, and Leoš Janáček’s “The Macropoulos Affair” directed by Christoph Marthaler, all fell into line with this year’s conceptual axis, around which the repertoire was constructed, that is “The archetype of femininity.” The National Opera hosted a gallery of remarkable women; women who are mysterious, and determined to oppose their fates and the regulations imposed on them by the surrounding reality.

“

I think that the Teatr Wielki-

Polish National Opera, its brand,

and also its artistic repertoire, have 108 :: polish market :: 5 -6 /2013

Culture European opera is being created

product, clearly positioning us

along this line of tension,

together with the leading European theatres. I am not trying to boast here, though. These are the facts.

”

highlighted Waldemar Dąbrowski, Managing Director of the Teatr WielkiPolish National Opera.

Joint productions with the greatest operatic communities, the presence of illustrious directors, singers and conductors, the diversity of what we have got to offer– all this creates an impression that it is truly well worth coming to the Warsaw opera and to be associated with our brand. This is because we are a community that has become an inseparable part of the common artistic and creative dynamism. We also strive to strike a balance between avant-garde and the modern understanding of tradition. As it appears, everything that is the most interesting about

We should definitely distinguish “Qudsja Zaher” from this group. This performance, commissioned, early into the last decade by the Teatr Wielki-Polish National Opera, and finished in 2005, was to be staged earlier. Ultimately, its staging fell to Eimuntas Nekrošius, an illustrious Lithuanian director, only this year. In the first opera of Paweł Szymański – one of the greatest Polish composers of the last several decades (born in 1954) – like in a camera focus, there converge all the threads of his output to date. Szymański’s original composer’s style is readily recognised by anyone who, even once, has had contact with his work. His music is extremely refined, always subject to strict technical discipline. Despite this it amazes with the diversity of emotions and atmospheres, ranging from a sensual game of sounds to a metaphysical reverie. The role of the eponymous heroine,

played by Olga Pasiecznik, was also splendidly conceived. The composer created this role with an eye to giving it to this particular performer. Qudsja creates a true creation – she sings, weeps, wails. This is not “just singing,” this is singing about something... In this finale programme, there was also held the eighth edition of the International Stanisław Moniuszko Vocal Competition which took place on 11-17 May 2013. Organised once in every three years, this competition is most of all a great chance for young artists, who are given an opportunity to present their talents in Warsaw before prominent representatives of the world of music – the international Jury being composed of excellent vocalists and also authorities shaping the musical life – directors of opera houses and festivals. Its originator and long-standing Artistic Director was Maria Fołtyn (1924-2012) – a singer, an opera director, and a musicallife manager in Poland. Making it possible for you artists to hone your skills, discovering them, and “opening doors” for you is yet another important element in the National Opera’s mission. And, we have to admit, it has been fulfilled most professionally. ::

Archiwum Teatru Wielkiego - Opery Narodowej/ Fot. E. Krasucka

become an attractive marketing

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Culture

The treasures of the Royal Library The Royal Castle in Warsaw invites you to visit the Royal Library, which was made available to the public after a complete renovation in June 2010 thanks to the funds provided by the Foundation for Polish Science and the Ministry of Culture and National Heritage. In the library, you can enjoy the exhibition devoted to “Imago Poloniae”, the Doctor Tomasz Niewodniczański collection.

The Royal Library - photo by P. Kubiak

Maciej Proliński

he building of the Royal Library was erected on the initiative of King Stanisław August Poniatowski in the years 1779-1782. It was to be used for storing the systematically-expanding royal collection of books, prints, drawings, maps, manuscripts, and also, among other things, minerals and gems. The building was designed by Domenico Merlini, who undoubtedly created one of the most beautiful and impressive Neoclassical interiors in Warsaw. Merlini, an 18th-Century Italian architect working in Poland, left Italy at the age of twenty and came to Warsaw. He became a royal architect at the age of thirty (first of King Augustus III of Poland and later, of Stanisław August). Merlini’s greatest designs include the Palace on the Water in Warsaw’s Łazienki Park. The interior of the main library hall at the Royal Castle in Warsaw, which is over 70 metres in length, is divided with pairs of columns into three equal parts. The walls are decorated with bas-relief medallions depicting various objects, tools and equipment characteristic of various fields of science and art. Interestingly, the hall of the Royal Library is the only part of the Castle that was

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not blown up by the Germans during World War 2. In 1972, after a partial renovation, it was made available to the public. In mid- 2010, on completion of a thorough renovation, the Royal Library became the domicile of “Imago Poloniae”, a priceless collection of old maps, manuscripts, books and engravings donated to Poland by Doctor Tomasz Niewodniczański in 2009. At the exhibition devoted to the passion of Doctor Tomasz Niewodniczański (19332010)- a nuclear physicist by profession, and a collector and bibliophile by avocation, the creator of one of the world’s largest private collections of cartographic materials- the most interesting cartographic and historical objects are shown (including old maps of the Republic of Poland from the 16th to the 18th Centuries, royal documents, parchments and antique books). In addition, there are publications from the exhibitions organised by Niewodniczański. Currently, very rare objects selected from the collection can be found here, including the etching of 1646 by Wilhelm Hondius made according to Agostino Locci, representing Sigismund’s Column, three etchings of Warsaw by Canaletto, and a plan of Warsaw of 1762 by Pierre Ricaud de Tirregaille, which is the greatest work of Warsaw cartography of the

18th Century. Moreover, selected rare eighteenth-century views of Warsaw, Kraków and Gdańsk can be seen, including two very exceptional views of Warsaw by Johann Christoph Haffner. In June 2010, during the grand opening of the “Imago Poloniae” collection, in his speech, Professor Andrzej Rottermund, Director of the Royal Castle in Warsaw, promised to take care of the collection and announced further scientific studies and publications involving it. Marie-Luise Niewodniczańska stressed: “Every person has to find something in life that he or she does with a real passion and what fascinates him or her. This serves as a kind of backbone of life. For my husband that was history. He was a physicist by profession and then became an entrepreneur but, in fact, he was enchanted by history. Through his collections history was present and alive. Not only did he devote all his money to that passion, but also all the free time he had. He possessed a vast knowledge. For my husband, collecting documents of Polish history was like a personal kingdom, to which his colleagues and selected, usually very interesting people from all over the world, had access.” ::

Culture

Nurturing the past

the Poznań Boys’ Choir

The concert “Voices from the Past” by the Poznań Boys’ Choir – a musical tribute in memory of the victims of the Warsaw Ghetto Uprising – was held on April 18 at Rykestrasse Synagogue in Berlin at the invitation of the Polish Embassy in Berlin and the local Jewish community. The great musical event was organized to celebrate the 70th anniversary of the Warsaw Ghetto Uprising. “The concert was a kind of a musical tale with a stylistically unified narrative. We hope the audience liked it and that it will mark an important step toward the German-Polish-Jewish reconciliation,” says Jacek Sykulski, composer, conductor and choirmaster of the Poznań Boys’ Choir.

Maciej Proliński

specially selected repertoire of the concert was a nostalgic trip into the past which today’s generation remembers and wants to cherish this memory. “‘Voices from the Past’ is a symbolic concert. While working on its programme, we decided to listen up to hear those who only remain silent today ... The concert’s repertoire has been carefully selected to render the spirit and atmosphere of the time; there are many Jewish themes with beautiful, melancholic melodies,” says Jacek Sykulski. In his attempt to bring up the “Voices from the Past” the conductor of the Poznań Boy’s Choir looked for pieces of music that were created under ghetto conditions. He did not find them in Warsaw, but he did in Kraków. The soloist of the concert was an excellent clarinetist, Woytek Mrozek. Composed by Jacek Sykulski 10 years ago on the occasion of the 60th anniversary of the Warsaw Ghetto Uprising, “Voices from the Past” poignantly evokes the memory of those days and the people who had to face the unbearable reality. “The Peace Meditation” does so likewise being a kind of song without words, as none of them is able to show what a man feels in the face of such great danger. The concert programme also included works by

Mordechai Gebirtig. “When designing the programme, we could not miss the extraordinary folk poet and singer Mordechai Gebirtig, for many years living and working in the Kraków ghetto. He left about a hundred songs and poems,” adds Sykulski. Jacek Sykulski and the Poznań Boys’ Choir, which stems from a rich tradition of Wielkopolska’s boys’ choral singing, received last year the Honorary Pearl of “Polish Market” in the category of culture “for a magnificently united voice encompassing continents and endearingly transcending musical genres”. In 1996 Sykulski became the conductor and artistic director of the Academic Choir of the Adam Mickiewicz University in Poznań. In 2003 he was appointed director of the Poznań Boys’ Choir. He also conducts the vocal group “Nova Gaudia”. His ensembles are touring around the world in the most prestigious concert halls and churches in Europe, Asia and the United States. In 1991 Sykulski composed the world famous song “Abba Ojcze”, which became the anthem of the 6th World Youth Day in Częstochowa. He constantly experiments by searching for new forms of musical expression, thanks to which the ensembles he conducts set new trends in Poland’s and in world’s choral singing.

The choir performs the most beautiful songs written in the 20th century (including Polish classics – Karol Szymanowski, Krzysztof Penderecki, Henryk Mikołaj Górecki, but also popular film music compositions being a kind of creative play with the audience). “We sing what we really like and what brings true joy and value to the souls of the audience,” declares Sykulski. And it really feels during all the concerts. It was no different this spring in Berlin. ::

the Poznań Boys’ Choir

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Culture

More than a noble product... The world-famous Ćmielów porcelain and a collection of porcelain paintings “Beautiful Monkeys of Europe” by Adam Spała can be admired since April 20, 2013 in the Porcelain Live Museum, a newly opened wing of the AS Ćmielów Porcelain Factory. Visitors are also welcome at the Van Rij Gallery featuring brilliant paintings of prof. Lubomir Tomaszewski. AS Ćmielów Porcelain Factory

Maciej Proliński

dam Spała, the owner of AS Ćmielów Porcelain Factory, which has manufactured handmade porcelain for over 200 years, invites us for an extraordinary journey on which we are tracing ceramic art patterns, from the oldest to the most recent ones, designed by outstanding artists. The AS Ćmielów Porcelain Factory, together with its Porcelain Live Museum, is the only place in Poland where you can follow the entire manufacturing process of handmade porcelain, and simply fall in love with porcelain, its history and its present. The beginnings of the Ćmielów porcelain date back to 1804. Time seems to have stopped at this place being one of Poland’s oldest porcelain factories, and so have the values and achievements of generations working on porcelain. The Porcelain Live Museum was founded in 2005, marking the 500th anniversary of granting municipal rights to Ćmielów. You will learn there about the specific traits of hand-painted porcelain and how to paint porcelain figurines, or cups. Step by step the whole process is shown in which components are transformed as a result of firing into a remarkable product, which for many is a true work of art. In a specially arranged room you can see and buy the entire collection of sculptures made in the 1950s and 1960s. The lightness of these figures is impressive, and so is their power of expression.

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“My manufacture not only patterns, but above all the traditions and values, because porcelain is more than a noble product... I acquired the factory in 1996 as a result of a public tender, but I have been involved in art and porcelain for 27 years already. I graduated in metallurgy, but I am an amateur designer. When I bought this plant, it was in a terrible state of neglect. And for the time being I only managed to renovate a small part of it. This year, after five months of intensive work, I have opened the right wing of this building. Old porcelain is showcased here - really unique pieces on a European scale, borrowed from museums in Ostrowiec Świętokrzyski, Sandomierz, Radom, and Kraków. We want to organize here mainly temporary exhibitions. Along with the exhibition of old porcelain we opened a contemporary art gallery “Van Rij” whose curator is my daughter Katarzyna Rij. The gallery features the works by prof. Lubomir Tomaszewski, a graduate of the Warsaw Academy of Fine Arts, who left Poland in 1966. A 90-year-old professor lives and works in New York. Instead of paints and a brush he uses a gas burner to create his original works. It is for the first time on such a scale in Europe that these amazing works of art are available to the public,” says Adam Spała. Another exhibition in the gallery that stirs great interest among visitors is titled “Beautiful Monkeys of Europe”. It is the world’s

unique collection of 47 porcelain depictions of monkeys featured in European capitals. It was created during seven years by its founder and designer Adam Spała who was awarded the Honorary Pearl of “Polish Market” for proving that the artist and the manufacturer are two concepts that should not be mutually exclusive. :: Bishop Krzysztof Nitkiewicz, Ostrów County Head Zdzisław Kałamaga and owner of AS Ćmielów Porcelain Factory cutting the ribbon.

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Events

European Executive Forum

he tempo of economic changes taking place today has forced a revision of many traditional approaches to management. Together with some of the most distinguished figures in business, politics and representatives of the most influential scientific institutions, the Executive Club and the Amicus Europea Foundation have initiated the European Executive Forum, dedicated to issues of leadership and management. Participants in the forum searched for an answer to the question of what management concept is really needed in Europe today in order to overcome the recent impasse. During their discussion they shared their leadership concepts and their own experience of politics and business. The themes tackled at the conference are without a doubt going to help contemporary leaders face the challenge that every organization, operating in an unpredictable market environment, has to face today.

The congress prompted the initiative of creating a regular meeting for an exchange of knowledge on best business practices, a cyclical presentation of the latest trends in management, and at the same time a platform for the exchange of experience and supplying the most up-to-date knowledge on leadership. The forum was attended by distinguished politicians, business leaders and scientific authorities, and was provided with substantive support by such institutions of science as INSEAD, IESE and the leading Polish higher

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education institutions i.e. Warsaw School of Economics (SGH), Leon Koźmiński Academy, Warsaw University of Technology Business School and University of Warsaw. On the first day of the forum Aleksander Kwaśniewski greeted the guests on behalf of the organisers, while Minister Olgierd Dziekoński spoke on behalf of President Bronisław Komorowski, delivering his message to the forum participants and attempting to present methods of both supporting and analysing leadership competences. His emotional speech created a place for an active dialogue with the audience. Professor Manfred Kets de Vries, Chairman of the faculty of the Raou de Vitry d’Avaucourt in INSEAD and Clinical Professor for Leadership Development and Director of Global Leadership in the same institution, provided a sample of analytical methods and supporting leadership competences in a two-part, very emotional speech, which in fact was an active dialogue with the guests. The panel working under the title of “Past and Future Leadership” was moderated by President Kwaśniewski, with three Prime Ministers as its members: Giuliano Amato, Prime Minister of Italy in 1992-1993 and 2000-2001; José María Aznar, Prime Minister of Spain in 1996-2004 and Jan Krzysztof Bielecki, Chairman of the Prime Minister’s Economic Council , with business circles being represented by the President of PKN Orlen, Jacek Krawiec, whose opinions complemented the vision of leadership presented by a panel dominated by politicians. The discussion on the historic context was continued by the panel, aimed at producing clear analyses, such as an answer to the question “What kind of leadership does Europe need today?” chaired by Professor Rosati, supported by politicians such as Alfred

Gusenbauer , Chancellor of Austria in 20072008, and representatives of scientific circles Professor Michał Kleiber, President of the Polish Academy of Sciences, and business circles; Grzegorz Hajdarowicz, President of Gremi Media Management Board, publisher of “Rzeczpospolita”; and Adam Pieczyński, Member of the Management Board for News Programmes in the TVN Group. Professor Alastair Nicholson, Honorary Professor of the Faculty of Management at the London Business School and other panellists, i.e. Mirosław Bieliński, President of the Energa SA Management Board, Professor Jerzy Hausner, Deputy Prime Minister in 2003-2005, currently a Member of the Monetary Policy Council, and Professor Piotr Płoszajski, Head of the faculty of Management Theory at the Warsaw School of Economics and Włodzimierz Kiciński, vice-president of the Management Board, KGHM Polska Miedź, deliberated on the issue of the crisis of leadership, lack of positive role models and authorities in the panel entitled “Where Have All the Leaders Gone?”. The members emphasized the great role played by trust in leadership, especially at a time of economic crisis. The first day of the conference ended with a speech by its special guest, Mr Joschka Fisher, German Minister of Foreign Affairs in 1998-2005. Minister Fisher spoke of a global vision of dangers and challenges that Europe/ the European Union is facing today. He also talked about how apparently remote events, such as revolutions in the Arab world, may have an impact on the future of the EU and why they cannot be simply left unacknowledged. During the evening Gala the guests were presented with a show by Studio Buffo, whose performance embraced popular songs from around the world which combined well with the European character of the congress. On the second day of the conference, the emphasis was more on the issues of business leadership. During the first panel, Professor Krzysztof Obłój, Manager of the Faculty of Strategic Management at University of Warsaw, made historic concepts of leadership familiar to the guests, insofar as this was possible in so short a time. In the theoretical part he was suppored by Professor Witold Bielecki, Rector of Leon Koźmiński Academy,

Events

and Professor Maria Romanowska, Manager of the Faculty of Economic Management of the Warsaw School of Economics. Also Maciej Filipkowski, Vice President of IT and Mobile Division in Samsung Electronics Poland and Zbigniew Krzysztoń, Director of the HR Department in PGNiG SA, shared their experiences relating to the issues of effective leadership in business. The global context of leadership was discussed in a very interesting debate chaired by Professor Witold Orłowski, Director of Warsaw University of TechnologyBusiness School, who is one of the best known Polish commentators on global developments in the economy. Among the panellists who attended the debate were guests of unquestionable achievement within global business, administration and political structures, such as Olga GrygierSiddons, President of the Management Board PwC Poland, Jarosław Pietras, Director General of the EU Council, Pedro Pereira da Silva COO of the Jeronimo Martins Group, Country Manager for Poland and Portugal and Herbert Wirth, President of the Management Board KGHM Polska Miedź. Professor Andrzej Koźmiński, President of the Leon Koźmiński Academy, was

accompanied by panellists who represented sectors in which the element of leadership and vision is a key ingredient of success – the IT and Private Equity sectors. The IT sector was represented by Ronald Binkofski, Director General of Microsoft Polska, and Aster Papazyana, Director General of Dell Polska, while the Private Equity sector was represented by Michał Chałaczkiewicz, Director

of Montagu Private Equity. Radosław Koszewski , Director of the IESE Programme, was also a member of the panel which discussed the issue of whether this is in fact “The End of the World of Managers”. The second day of the conference also hosted the panel, which concentrated on the

psychological aspects of leadership under the title “Leading with Emotions”, which was chaired by Wojciech Eichelberg, Director of Psychoimmunology Institute, accompanied by some excellent business theoreticians and managers, such as Professor Zbigniew Dworzecki from the Faculty of Economic Management of the Warsaw School of Economics; Linda Hand, Senior Vice-President and Head of European Operations Services for Evalon, and Paweł Jaguś, President of the Management Board of Quamak S.A. A debate summarizing the two days of the conference, moderated by President Aleksander Kwaśniewski, attracted a lot of attention. The list of panellists included Jan Krzysztof Bielecki, Chairman of the Prime Minister of Poland’s Economic Council, Joschka Fischer, German Minister of Foreign Affairs in 1998-2005, Alfred Gusenbauer, Chancellor of Austria in 2007–2008, Jan Kulczyk, Chairman of the Supervisory Board of Kulczyk Investments, and Professor Krzysztof Obłój, Manager of the Faculty of Strategic Management of University of Warsaw, which ensured a discussion of the highest level. :: Forums guests Photos: Executive club ADVERTISEMENT

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Events

Jubilee Silesian Quality Award Gala On 20 May 2013, the Arsenal Palace hotel in Chorzów hosted a ceremony for the winners of the Silesian Quality Award and the “Stawiamy na Jakość” (“We Focus on Quality!”) programme. The group welcomed new leaders who had distinguished themselves with the implementation and enhancement of company-management systems.

he team-award winners of the 15th Gala included Kompania Węglowa S.A., the Ziemowit KWK hardcoal mine branch, Tauron Wytwarzanie Spółka Akcyjna, the Zakłady Energetyki Cieplnej SA thermal power plant in Katowice and the Technical School Complex (ZST) in Rybnik. As always, there were also individual awards. The winners included Gabriela Lenartowicz, CEO, the Regional Fund for Environmental Protection and Water Management in Katowice, Piotr Wojaczek, CEO, Katowicka Specjalna Strefa Ekonomiczna S.A. (Katowice Sepecial Economic Zone) and the University of Silesia and its rector Prof. Wiesław Banyś. The Honorary Silesian Quality Award was given to Zygmunt Łukaszczyk, the Governor of the Śląskie Province. The Gala also saw the presentation of the “Stawiamy na Jakość” Programme Certificates. The Programme is addressed to companies and organisations with ISO-Certified Systems in place, which are strongly committed to maintaining the quality of their services and products, as well as the implemented management standards. The main objective of the programme is to discover quality leaders and foster their operations. This year, the Programme hand-picked Śląskie Centrum Logistyki S.A, Barosz - Gwimet Sp. z o. o., the Town Hall in Bieruń, the Practical and Continuing Education Centre (CKPiU) in Zabrze, Conbelts Bytom S.A., Fabud WKB S.A., Szczęśniak Pojazdy Specjalne Sp. z o.o. and Rudzka Agencja Rozwoju Inwestor Sp. z o.o (a Development Agency in Ruda Śląska).

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Silesian Quality Award Gala The Crystal Skill and Competence Laurel was placed into the hands of Mr Dariusz Lubera, CEO, Tauron Polska Energia SA Photo: Regional Chamber of Commerce and Industry in Katowice

During the Gala, Mirosław Sekuła, the Marshal of the Śląskie Province, and Tadeusz Donocik, the President of the Regional Chamber of Commerce and Industry in Katowice, concluded a Cooperation Agreement between the Śląskie Province and the Chamber. The strategic objective of the agreement is to establish cooperation towards the economic advancement of the Śląskie Province, to facilitate its marketing across the country and abroad, and to deliver support for microcompanies and SMEs. Moreover, the agreement provides for the promotion of culture and tourism, and experience and skill sharing between the parties’ personnel. Part of the ceremony was to award Skill and Competence Laurels to those leaders who could not receive them during the Gala which

took place in the Music and Dancing Centre in Zabrze on 19 January 2013. The Crystal Skill and Competence Laurel was placed into the hands of Mr Dariusz Lubera, CEO, Tauron Polska Energia SA, while the Platinum Winner in the “Pro Publico Bono” category was Mr Dariusz Bogdan, the Under-Secretary of State of the Ministry of the Economy. The Golden Skill and Competence Laurel in “Culture” went to Ms Katarzyna Pleśniak, Chancellor of the Karol Szymanowski Musical Academy in Katowice. The artistic section saw a performance by Buttercup, a jazz band which added charm to the evening with American and Polish music pieces in its own jazz arrangements. ::

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Food industry

Symbio Polskastringent standards only

onsumers’ trust in food produced with the use of industrial methods has been declining for years. There is a well-founded opinion that such food has generally a poorer taste and value compared to naturally-produced food. Consumers are concerned about the use of plant-protection chemicals and genetic modifications, despite the guarantees of their safety. The number of conscious consumers searching for food produced with the use of natural methods is constantly growing. In the past, when agriculture was free of chemicals and genetic manipulations, there was no need to distinguish conventional and organic agriculture. Today the definition of organic farming is widely recognised by consumers. The Symbio Polska S.A. company has undoubtedly contributed to the establishing of this definition. Over 15 years ago a group of enthusiasts aware of the threats associated with conventional agriculture, created a group of organic food producers, specialising primarily in the production of soft fruit, including raspberries and strawberries, the purchase of which forms the basis of the company’s operations. However, each year has seen an extension in the range of products purchased and offered by the company with a quality appreciated by customers in the whole of Europe. The quality of the products is confirmed by rigorous tests and inspections, and guaranteed with special certificates given only to producers meeting stringent standards. Symbio, or independent bodies, carry out tests on plants already at the stage of their planting or growth, which are followed by several inspections of the fruit. Currently Symbio Polska S.A. is not only a reliable partner for several hundred producers of organic food. As frequently mentioned by Ms Sylwia Rybicka, President of the Board, Symbio Polska S.A. practises an orthodox approach to environmental issues. The company is also a well-established producer of products for retail sales: fruit juices, jams, fruit preserves, pasta, flakes and flour.

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The Symbio logo can be found in every major organic food store and in many super and hypermarkets, and the growth in sales evidently points to strong customer demand for natural, organic food. The company is planning further expansion onto foreign markets, which is to take place soon. Since 2008 Symbio Polska has been listed on the New Connect market, which guarantees full transparency and reliability for producers and customers cooperating with the company. In addition, the company is an active member of Polish environmental organisations (like for example the Polish

Ecology Association). Each year we participate in the most prestigious and influential trade fair connected with ecology- BioFach in Nuremberg. At Symbio Polska we aim at changing the perception of organic food as a whim for the rich. As a rule, organic food cannot be as cheap as conventional food but it seems that nowadays the prices of organic products are becoming available to a growing number of consumers. Numerous studies indicate that the nutritional values and the taste of such products are incomparably better. ::

Food industry

No market thrives in a void Piotr Ziemann, head of the project promoting, the Association of Polish Butchers and Producers of Processed Meat (SRW RP) talks to Bożena Skarżyńska. The third edition of SRW RP promotional programme – “European meat – tradition, quality and taste.”

What is this year’s slogan promoting European and Polish meat? We asked Internet users on our website which slogan would be the most suitable for the next stage of the promotional campaign. Most of them chose “Meat in Europe” as the more interesting, equivocal and easier to remember. Apart from the slogan, which elements of the continuation of the two previous programmes are worth mentioning? The continuation of the promotional compaign has one goal – to revisit the countries which we’ve already reached. If we don’t appear in those countries again, we will soon be forgotten. The secret lies in the continuity of contacts and arranging further business meetings and talks which will make it possible for us and our business partners to get to know each other better, and strengthen our position on the markets in which we are particularly interested.

You said that without regular promotional meetings and without establishing good partnership relations it is difficult to enter meat markets, which are being intensively invaded not only by EU countries but also by Brazil and Argentina. Which locations have been selected for the third edition of the “Meat in Europe” programme? We’ve planned two promotional events in Kaliningrad and two in China (one in Shanghai and one in Hong Kong). Also Africa is opening to European products, including meat. Hence the choice of the United Arab Emirates for one of the locations for presenting the programme. There is no doubt that while Hong Kong is an opportunity for opening the Asian market, Dubai is the key to African countries. We’ve received information confirming demand for Polish and European meat from Congo, Togo, Nigeria and the UAE, where visits at the Ministerial and Governmental level were held. Muslim countries are also ready to cooperate with us.

which is now being followed by “Go Africa”. We have already made our first visit, which showed that the decision to enter the North African market was a perfect hit. I’m sure that soon after ritual slaughter in Poland is restored, the established contacts will bring certain benefits for our entrepreneurs. We received a very warm welcome, and the interest in Polish products was way above our expectations.

Which countries do you have in mind? We would like to strengthen our position on the Chinese market, and cater for the difficult Russian market, especially now, when the Kaliningrad market is open to the EU and Poland. That is why, for one of the locations for our promotional campaign we chose the AgroComplex Fair in Kaliningrad. Kaliningrad holds a kind of symbolic meaning for SRW RP. It was the Association which several years ago made this area accessible to Poland. We organised a meeting with Russian businesses in Poland and we visited Kaliningrad, first with Minister Ardanowski, and the two following times with Minister Sawicki. We have established close contacts with many businessmen open to cooperation. For me personally it was a success that we managed to persuade the European Commission to promote meat products in Kaliningrad.

So choosing Dubai as the first location for the promotion was not accidental? When we were preparing a new programme one and a half years ago, someone suggested including AGRAme 2013 on the list of fair events. We will launch cooperation with the Emirates in the same way as we did five or six years ago with China, Russia and Ukraine. This is the second country, apart from Saudi Arabia, facilitating transfer to other African countries. It seems that in the decade to come this continent will be the best target for selling food products. A visit to the United Arab Emirates is a continuation of the previous projects and is aimed at opening another great market for Polish meat processing companies and enterprises dealing with the meat industry, including all varieties of meat. Together with the Polish Government we were leading the “Go China” campaign,

For this year you’ve also planned to visit Kaliningrad, Moscow and Shanghai. We are going to visit Moscow in September to attend World Food 2013. This is the most important exhibition for the European Union. The European Commission supports this event because it brings measureable results. We’ve already visited the fair within the programme and I think there’s a reason to revisit this location with our promotional campaings. We are also revisiting Shanghai, this time with permits for the direct sale of meat. In the first year of implementing our programme we will attempt to analyse all the markets on the list within the programme. Because the opinions of the members of SRW RP operating in the meat-processing industry are a priority for us, we will take their views into account. They will also decide on the directions of promotional visits. ::

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You mentioned that the third edition of the programme will last three years. Will it then last longer than the previous editions? Yes, because the European Commission withdrew from two-year promotional programmes. It was found that the optimum time for succeeding on particular markets was three years. In the next few years we will be dealing with the same cities and fair events, but perhaps next time in UAE we will choose Abu Dhabi – the base of the Polish embassy. pm

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