Polish Market No.11 (278)/2018

PU B LISHED SIncE 199 6 No. 11 (278) /2018 :: www.polishmarket.com.pl

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CONGRESS 590 MADE IN POLAND

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POLAND’S INDEPENDENCE CENTENARY YEAR 1918-2018

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KEY POLISH INSTITUTIONS OF THE CENTURY ........................

polish companies go global

kghm leads the way INTERVIEW WITH MARCIN CHLUDZIŃSKI, PRESIDENT AND CEO OF KGHM, ONE OF THE SPONSORS OF CONGRESS 590, PP. 44-45

www.voster.pl

ONTENT 6 7

FROM THE PRESIDENT’S PRESS OFFICE FROM THE GOVERNMENT INFORMATION CENTRE

OUR GUEST

8 MINISTER OF INVESTMENT AND ECONOMIC

DEVELOPMENT JERZY KWIECIŃSKI - A HIGHER LEVEL OF DEVELOPMENT THROUGH INNOVATION

32 DOMINIK ROZKRUT, PRESIDENT, STATISTICS POLAND WITHOUT US, THERE WOULD BE CHAOS

35 JERZY BOJANOWICZ - TO BE USEFUL TO THE NATION 36 PROF. TADEUSZ SŁOMKA, RECTOR, AGH UNIVERSITY OF SCIENCE AND TECHNOLOGY IN KRAKÓW - FOCUS ON INNOVATIVE TECHNOLOGIES

38 PHYSICS APPLICATION IN INDUSTRY BY SCIENTISTS FROM JAGIELLONIAN UNIVERSITY

10 JAROSŁAW STAWIARSKI, VICE-MINISTER OF SPORT AND

TOURISM - ATHLETES AT THE FOREFRONT OF POLISH SPIRIT OF PATRIOTISM

CONGRESS 590

42 590 – A PRODUCT OF POLAND

POLAND’S INDEPENDENCE CENTENARY YEAR

ECONOMY

12 SENATOR ANNA MARIA ANDERS, SECRETARY OF STATE,

44 MARCIN CHLUDZIŃSKI, PRESIDENT AND CEO, KGHM

14 MACIEJ PROLIŃSKI – PADEREWSKI AT THE NATIONAL

48 POLISH ECONOMIC EXHIBITION 50 PRESIDENT ANDRZEJ DUDA VISITS TZMO GROUP’S

POLISH PRIME MINISTER’S OFFICE – KEPING THE MEMORY ALIVE OPERA

16 PROF. BOLESŁAW ORŁOWSKI, INSTITUTE OF THE

POLSKA MIEDŹ – IS THE GOLDEN ERA OF POLISH COPPER APPROACHING?

GERMAN SUBSIDIARY

HISTORY OF SCIENCE, POLISH ACADEMY OF SCIENCES - FROM TALKING MOVIES TO WALKIE TALKIES

52 ROBERT RUDNICKI, PRESIDENT, PSZCZÓŁKA CANDY

18 100 FOR 100 – MUSICAL DECADES OF FREEDOM 19 KRZYSZTOF PENDERECKI – GREAT UNPREDICTABLE

56 CONVERSATIONS ON THE POLISH ECONOMY IN THE

COMPOSER

20 THE SECOND POLISH REPUBLIC AT INCEPTION 24 HONORARY PEARL AWARDS FOR THE PROMOTION OF PATRIOTIC VALUES – OUR PATRIOTISM

INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

FACTORY - CAREFREE MOMENTS OF SWEET BLISS PODKARPACKIE REGION

58 RYSZARD ROCZNIAK, PRESIDENT, VOSTER - DOORS THAT REDEFINE INTERIORS

60 ANNA AND CZESŁAW KOLISZ, OWNERS, ANKOL BRAND – INNOVATIVE AVIATION SOLUTIONS

62 KAROLINA TOKARZ, PRESIDENT AND MANAGING

DIRECTOR, PROMAG SA – CHANGING THE FACE OF POLISH INTRALOGISTICS

28 ALICJA ADAMCZAK, PHD, PRESIDENT, PATENT OFFICE

64 EUROPEAN ECONOMIC FORUM IN ŁÓDŹ - A GREAT

31 POCZTA POLSKA IS BACK IN THE GAME

65 BSH BUILDS A MODERN DISHWASHER FACTORY IN ŁÓDŹ 66 INTERNATIONAL SMART GROWTH 3.0 FORUM IN

OF THE REPUBLIC OF POLAND - 100 YEARS OF INDUSTRIAL PROPERTY PROTECTION IN POLAND

CELEBRATION FOR BUSINESS AND ENTREPRENEURSHIP

UNIEJÓW

Editorial

Krystyna Woźniak-Trzosek Editor-in-Chief President of Rynek Polski Publishers Co. Ltd.

WHEN 100 YEARS AGO POLAND WAS REGAINING ITS INDEPENDENCE UNFRIENDLY NEIGHBOURS CALLED IT A “SEASONAL STATE.” TODAY, THEY SAY WE HAVE THE WORLD’S MOST STABLE ECONOMY. Over the past 100 years the world has changed beyond recognition. Poland was in a special situation. Other nations liberated at the same time as Poland also faced the challenge of building their state structures, but they had quite tightly-knit and well-established societies. In contrast, Polish lands and Polish people were torn apart among three partitioning powers – Russia, Prussia and Austria - which differed in every respect: official languages, legal and administrative systems, time zones, alphabets, systems of weights and measures, railway gauges and left- or right-hand road traffic. The most developed part of the future state was a battlefield for the armies of partitioning powers for four years. They requisitioned whatever they wanted, destroyed villages and towns, even without any militarily justified need, and disassembled factory equipment and took it with the factory workers beyond the frontline. Poles were conscripted into the Russian, Prussian and Austrian armies and were often forced to fight fratricidal battles.

Of course, the Polish state did not arise from nothing. Over the 123 years of foreign occupation Polish people organised themselves, conspired and every now and then launched armed bids for independence, which were brutally suppressed by the partitioning powers. After each national rising, social structures, self-government and economic associations, and cultural and paramilitary organisations were coming back into being. World War I revived the hopes for independence and mobilised Polish people, including the diaspora, to act. The crisis of the partitioning powers in November 1918 triggered spontaneous actions of the Polish population, the disarming of foreign soldiers, and coming out of Polish organisations and political structures.

The memory of those times, events and the figures who played key roles in them will become in coming days a number-one topic in Polish public life. In the columns of “Polish Market,” we try to look at these issues from an aspect which is important, though perhaps the least narrative and spectacular. I mean the social and economic conditions in which the new Polish state and its place on the map of Europe was being established. Without showing this place and these conditions one can hardly realise what a long road Poland and Polish people came over the past century.

The reports we can hear today come from a completely different world: S&P has revised up its credit rating for Poland from BBB+ to A- with a stable outlook, Fitch affirmed its rating at A- with a stable outlook and so did Moody’s. Is there an economy which would not be satisfied after such announcements by the three credit ratings agencies? Analysts have already raised their economic growth projections for Poland three times this year. And when they additionally heard the news that Poland’s debt to GDP ratio has gone down they stopped hesitating. Is it only about prestige? Those who know about financial operations do not need an answer. The decision to raise our rating was taken on Friday. On Monday, the yield on Polish 10-year government bonds dropped below 3.2%, just 0.05 percentage points down from the Friday level. Is it little? This represents PLN500 million annually less on our total debt. This is the amount we earned in one day after the upward revision of our rating.

It is worth having good press. The Inea company, operating in the mid-western region of Wielkopolska, offers its clients ultra-fast broadband with a speed of up to 10Gbps, the fastest in Europe, maybe even one of the fastest in the world. Or take the news from Eurostat: with a 5% rate of growth in industrial output at the beginning of the year we ranked 13th in the EU, now after three quarters we are in 5th place – not far from the podium. There is another example: the humanitarian organisation Oxfam annually assesses the performance of countries in diminishing social disparities. This year, our welfare spending was ranked among the top in the world, ahead of Finland. And yet another one: the IMF is increasingly pessimistic about global economic growth prospects. It has been revising down its projections for the United States, Britain and China, but equally consistently revising up its projections for Poland’s GDP growth and revising down its unemployment projections for our country.

These are just a few quite randomly picked pieces of press news from the past month. Are they of any significance? I think that without them we could not count on benefits of greater importance and expressible in cash, like the benefits stemming from this year’s announcement of the most valuable nation brands in the world. Obviously, the brand United States came first and its value was estimated at nearly USD26 trillion. Brand Finance, a brand valuation consultancy based in London, estimated the value of brand Poland at a modest USD650 billion. This puts us in 23rd place. Little? Then, what the remaining over 170 countries ranked behind us are to say?

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SPORTS

CULTURE

69 SENATOR MIECZYSŁAW GOLBA, BOARD MEMBER, POLISH FOOTBALL ASSOCIATION – FOOTBALL UNITES US

CHEMICAL INDUSTRY

78 CULTURAL MONITOR 80 MACIEJ PROLIŃSKI – WARSAW FOR INDEPENDENCE, FOR PADEREWSKI 81 BOOK REVIEW - WOMEN’S ENTREPRENEURSHIP IN THE SPOTLIGHT

70 AUTUMN 4.0 WITH THE POLISH CHAMBER OF CHEMICAL INDUSTRY FINANCE

72 KRZYSZTOF PIETRASZKIEWICZ, PRESIDENT, POLISH BANK ASSOCIATION - POLISH BANKING CONTRIBUTES TO THE MODERNISATION OF THE ECONOMY

ECOLOGY

82 BIO BAKERY 83 IN SEARCH OF A SLICE OF BREAD

MEDICINE

74 PROF. GRAŻYNA RYDZEWSKA, HEAD, INTERNAL DISEASES AND

GASTROENTEROLOGY CLINIC, CENTRAL CLINICAL HOSPITAL, MINISTRY OF INTERNAL AFFAIRS AND ADMINISTRATION - A COORDINATED APPROACH TO GASTROENTEROLOGY

85 ECONOMIC MONITOR

76 BARBARA JERSCHINA M.D. - DOING OUR BEST TO ADVISE AND HELP PATIENTS

Photo source: www.shutterstock.com, www.commons.wikimedia.org unless otherwise stated

11 (278)/2018 Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

(RYNEK POLSKI Publishers Co. Ltd.)

Writers/Editors: Jan Sosna, Maciej Proliński, Jerzy Bojanowicz, Jan Mazurek, Andrzej Kazimierski, Janusz Turakiewicz, Janusz Korzeń

President: Krystyna Woźniak-Trzosek Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła

Translation: Sylwia Wesołowska-Betkier, Agit

Address: 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

Contributors: Agnieszka Turakiewicz

Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Managing Editor: Rafał Kiepuszewski

Graphic design: Godai Studio Agnieszka Charuba, Joanna Wiktoria Grabowska Sales: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Magdalena Koprowicz m.koprowicz@polishmarket.com.pl

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President

PRESIDENT DUDA AND FIRST LADY RECEIVED BY POPE FRANCIS Polish President Andrzej Duda told journalists that during his meeting with Pope Francis at the Vatican on October 15, the need for the EU to return to mutual respect in relations between states was discussed, as well as respect for the cultural diversity that exists in the individual countries.

President Duda and First Lady Agata Kornhauser-Duda were received at an audience by Pope Francis, followed by a private meeting with the Pope, which lasted half an hour. Andrzej Duda told the Polish News Agency that one of the topics of his talks with the Pope was the European Union and "if there is a chance for the EU to emerge from the crises in which it is immersed. Such a chance exists provided that there is a change in the way of thinking. We need to return to the values from which the European Union grew, which guided the EU fathers when they established the community," Andrzej Duda said.

The visit coincided with the 40th anniversary of the election of Polish Cardinal Karol Wojtyła the Pope John Paul II. On that day the Presidential Couple took part in a mass at the tomb of Saint John Paul II in St. Peter's Basilica.

(Sources: president.pl, PAP, Congress 590), Photos: president.pl

V4 SUMMIT IN SLOVAKIA

A two-day summit of the presidents of the Visegrad Group countries was held in Strbske Pleso, Slovakia, on October 11, to discuss modern challenges facing Europe, responsible social policy and technological progress.

Apart from Polish President Andrzej Duda, the summit was also attended by the presidents of Hungary Janos Ader, the Czech Republic Milos Zeman and Slovakia Andrej Kiska. Slovakia is currently chairing the group.

Presidential aide Krysztof Szczerski told a news conference that the V4 presidents agreed that EU institutions interfered excessively in member states' internal affairs, including those of Poland and Hungary. He said that as representatives of highly pro-European societies, the heads of state of the Visegrad Group have "a right and duty" to talk about what they see as the shortcomings of contemporary European integration. The presidential aide also said that Poland and Slovakia were leading criticism of the planned German-Russian Nord Stream 2 gas pipeline, and that the remaining V4 countries - the Czech Republic and Hungary - support their criticism of the project. He added that none of the V4 countries was involved in the Nord Stream 2 project or would be a beneficiary of it.

PRESIDENTIAL ECONOMIC AWARD The Polish President’s Economic Award is to be announced at a ceremony at Congress 590 in Jasionka near Rzeszów on November 15-16.

According to the organisers, over its sixteen editions, the idea of the award has evolved but its aim remains the same: to support Polish business and to honour those who best contribute to the development of the country’s economy, promote Poland in foreign countries and set an example for others to follow.

The award is granted in seven categories: SME Leader, National Success, International Success, Responsible Business, Family-owned Firm, Startup_PL and R&D. This year, on the occasion of the 100th independence anniversary, a Special Award will also be presented.

At a ceremony earlier this year when nominations for the jury were announced, President Andrzej Duda said that these awards are granted to

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Polish entrepreneurs on behalf of the Polish state for their activities in various areas. “This year and this edition of the Award will be unique, marking the centenary of the regaining of independence by Poland.

A great historical process of Poland’s reconstruction was started in 1918. We have a great tradition, to which the Economic Award of the President of the Republic means to refer to. We have the ambition to build a dynamically developing Poland which will be able to overcome all the difficulties. Poland should become one of the most serious European players, also in economic terms. I am very happy that one of the categories of the award is CSR, that is caring about others, being involved in charitable activities, sharing profits with others in the name of the common good. In another category we present an award for international expansion - this is what we place so much emphasis on today.”

Prime Minister

POLAND AND BREXIT

TO INCREASE POLAND’S ENERGY SOVEREIGNTY

“I am here to negotiate the best possible Brexit agreement,” Polish Prime Minister Mateusz Mazowiecki told journalists before the meeting of the European Council in Brussels on October 19. “Poland is trying, within the framework of the EU mandate, to propose solutions which will offer a compromise,” he explained. He recalled his recent talks with the UK Prime Minister Theresa May and the EU negotiator for Brexit Michel Barnier. He added that for Poland the most important thing is how Polish citizens and entrepreneurs will be treated in the United Kingdom.

Mateusz Morawiecki pointed out that it is important to develop a proper agreement between the EU and the United Kingdom. According to him, there is now a deadlock on Brexit. Some politicians appear irresponsible regarding this issue and, through their harsh statements, an agreement may not be reached at the current summit, he noted. “I strongly emphasise that the so-called ‘no deal’, which means the lack of an appropriate agreement between the United Kingdom and the EU, is not a solution. It is in our common interest to find a good solution and we are on the right track to work it out by the end of the year,” said the Polish Prime Minister, although he pointed out that he is a moderate optimist regarding the outcome.

Mateusz Morawiecki explained that, when it comes to Brexit, Poland proposes more creative solutions, the most flexible approach possible and a flexible mandate for the European Commission, and in the eyes of many countries it has won a reputation of being a stabilising country which wants reconciliation and compromise at any cost.

“We want to use our resources and extract more and more gas, as it increases our sovereignty which is something crucial for us,” Prime Minister Mateusz Morawiecki told a conference entitled “A new chapter of prospecting for and exploration of natural gas in the Podkarpackie region.” He emphasized that the growth of extraction of raw materials is included in the Responsible Development Strategy and that it is to serve the national economy. “We want to increase the extraction of raw materials and to use them, because it creates prosperity, new jobs, as well as more and more opportunities for investment and development,” said the Prime Minister. “Thanks to research based on 3D seismic profiles in the Podkarpackie region it is possible to find new gas deposits. Having national energy sources leads to independence in terms of gas. It makes it possible to extract more and more gas, and more gas means growing energy sovereignty,” Mateusz Morawiecki said.

Local deposits are the cheapest and most reliable sources of natural gas, experts say. The intensification of exploration in the Podkarpackie region in south-eastern Poland is part of PGNiG's diversification strategy, whose aim is to guarantee reliable gas supplies to domestic customers at competitive prices. Within five years, gas production in the Podkarpackie region is to increase by over 25%, the Kramarzówka field alone has 12 billion cubic metres of gas, which will flow into the network as early as next year.

MIGRATION POLICY pointed out. The Prime Minister emphasized that Poland’s negotiating position, which had been strongly maintained for months, has got through. The focus now is on the fact that the Austrian presidency should propose a set of different actions and specific procedures which would aim at the implementation of the conclusions reached last June. As he noted, there is a growing number of countries which are very sceptical when it comes to receiving migrants.

11/2018 polish market

Photos: Adam Guz KPRM

Prime Minister Mateusz Morawiecki spoke about the migration policy as discussed at the European Council meeting. He told a news conference that sometimes information appears that some new proposals are to be discussed by the European Council. But the fact that receiving refugees is fully voluntary, that Member States are sovereign in this matter, that there is no compulsory nature, had already been agreed during the meeting of the European Council in June, he

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Our Guest

A HIGHER LEVEL OF DEVELOPMENT THROUGH INNOVATIONS Minister of Investment and Economic Development JERZY KWIECIŃSKI presented the role of innovation in the process of developing the economy and strengthening its competitiveness during the conference “Conversations on the Polish Economy in Podkarpacie.” The conference was held in the mountain resort of Arłamów between 28 and 30 September.

R

eaching a higher level of development and boosting competitiveness through innovations are our most important challenges, but this is not that obvious. Even during talks with entrepreneurs one can hear: “Why should we bother about innovations? They

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are so risky and costly. Is it not better to buy marketready technologies abroad?”

What do we need to be more competitive? First of all, we need a strong workforce. Education is the absolute key. I have travelled throughout Europe and the world a lot recently and I can clearly see one thing: the thing

Our Guest one pursues in the most developed economies, both domestically and abroad, is talent. Another thing, strictly connected with innovation, is to get the economy into thinking in terms of innovation. I’ll give the public sector as an example, as it often seems that innovations are characteristic of highly advanced companies only. The truth is that, if there is no innovation in the public sector, that innovation will not have any opportunities for commercialisation. Making the whole economy think in terms of innovation is a key issue for us.

I am really glad to see that the way large Polish companies think has changed. Just a few years ago, we gave an example, saying that the largest three Polish companies had spent three thousand times less on R&D than the largest three German companies. This has now changed completely. Businesses see that the costs of R&D are not just expenditures, but investments in the future. What we most care about is cooperation between large, strong companies, both domestic and those with foreign capital, and small and medium-sized business. Why is it so important? In Scandinavian countries, one has noticed the simple problem of each business entering the market with a product or service which does not yet have its market share.

The problem is the first customer. Lending someone a helping hand is a key issue here. It is extremely important for small businesses and technological start-ups to earn their first revenue or gain their first contracts.

The third aspect connected with innovation is cooperation.

There will be no innovation without cooperation among all the key players – the world of science, business, and the authorities. We, the government, stress that we will support innovation in the most effective and tangible manner.

The fourth element which I would like to emphasise and which in a way might be specific to Poland, are investments in neglected infrastructure. They are characteristic of both roads and the railways; in a while we will advance financing to other means of transport, including the aviation industry.

In addition, we will want to make better use of sea and inland transport. What we should do alongside is to build the strength and competitiveness of the industries which are connected with the investment projects. This is one of our greatest challenges. We have learned a hard lesson from the previous financial period, when we implemented a huge road and motorway programme, from which, however, our partnerships and companies did not benefit. Just the opposite, we can say that we have lost a strong position in the industry, not only in our country, but in the whole of Europe.

Our strategy, the Morawiecki plan, is a strategy of sustainable growth and, primarily, a strategy which relies on innovation. This is our greatest long-term challenge.

In the medium term, what is now the most important for us is to maintain the good growth rate of our economy. I can say that we have undoubtedly achieved success. We have been growing in an even manner at the level of 4-5% of GDP. No European country has recorded as even and high economic growth as Poland. Its growth is twice that of the European Union’s. In addition, we are making very good use of the potential of the Polish economy, estimated at a 3-3.5% GDP growth rate. In the years between 2008 and 2016, we grew at the rate of 3.2% on average. What we did beyond that is the outcome of effective management of our country. I do not claim that the situation could not be better. The rate of 5% lets us catch up with the EU. It needs to be said that, at the moment, we are at a very good point in the economic cycle; however, we do not

THERE WILL BE NO INNOVATION WITHOUT COOPERATION AMONG ALL THE KEY PLAYERS – THE WORLD OF SCIENCE, BUSINESS, AND THE AUTHORITIES. know how long the boom is going to last. The example of the USA shows that they themselves are surprised that the cycle has lasted so long. We would like to maintain the growth rate at the level of 4-5%. Talking about risks, I can see that they are greater abroad than in Poland. This is why we are paying a lot of attention to what is going on abroad. Undoubtedly, we are faced with challenges following from the fact that serious talks on international trade have begun in the international arena. This is not a trivial matter, as the large trade imbalance between the USA and China but also the EU is not unusual. There is also a large trade imbalance between Poland and China, which is not good for our economy. These imbalances exist in the world, and they will be addressed in our keen debates in the near future.

There are immense challenges in the EU which will affect the economy, such as Brexit. We do not know whether a friendly agreement between the EU and the UK will ever be reached. We could see how Europe has been convulsed with migration. Not only did migration affect the political life, but also has had tangible effects on economies. We are also faced with challenges following from the fact that the EU has been losing its competitiveness to economic powers due to its weak innovation performance. Other parts of the world such as the USA and the Asian Tigers are much more effectively implementing their innovation-oriented programmes. This will certainly be a serious challenge for us.

An important issue, though not as important as it was 1015 years ago, will be the new EU financial plan which we are currently negotiating in the EU. We benefit from the plan as a country to a large extent. We are shown as a country which can take advantage of its place in the EU and the policies implemented in the EU, such as the cohesion policy. The talks are important to us, but they do not play as vital a role as they did 5-15 years ago, owing to the fact that, by implementing our government strategy, we can make better use of our local potential. The investment in our country is less and less supported by European funding. At the regional level, still a lot of expenditures, nearly half of them, are being incurred with European funds, but at the central level the percentage stands at only 30%. The level of support which we have in this financial period is the highest in the history of the EU. We are able to mobilise more and more funds for our investment projects.

In the medium term, it is important that growth be maintained, and the components contributing to this growth be taken care of. These primarily include human resources. When we joined the EU in 2004, we had the highest unemployment rate in Europe, at over 20%. At the moment, the average unemployment rate is below 6.8%. Unemployment is no longer a problem, but qualifications are – this is our long-term challenge in terms of human resources.

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Our Guest

ATHLETES AT THE FOREFRONT OF POLISH SPIRIT OF PATRIOTISM JAROSŁAW STAWIARSKI, deputy Minister of Sport and Tourism, talks to Maciej Proliński.

There is no denying that we are meeting at a very lucky time for Polish sports - just after Volleyball Men’s World Championship, in which the Polish team won gold.

How do you feel about our volleyball players’ success?

Not only did the Polish men’s volleyball national team win the World Championship gold in Bulgaria and Italy, but they also defended the title from four years before. It is worth mentioning that after the success in 2014 and the following “fat” years, when we thought this sport would only develop and grow in strength, a weaker period came.

Therefore, the success of 2018 is due to a great coach, Vital Heyen, on the one hand and an explosive mixture of routine and youth on the other. The seasoned players – Michał Kubiak, Paweł Zatorski, Bartek Kurek, and the talented youth – Artur Szalpuk, Kuba Kochanowski, Aleksander Śliwka, all of them brilliantly carried the massive pressure of this championship. An evenly distributed set of skills is surely a huge asset of this team. The players coming in from the bench were no worse than those from the starting six. The success of our volleyball players will stay in our hearts forever. Let’s thank them all for what they have PM

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done for our country and for their attitude on the court. The style of the Polish team’s win was undisputable.

What is it, in a nutshell, that we could learn from our gold volleyball players?

Volleyball is a team sport, based on six players who must trust each other and have similar skills. So we could learn from them, for example, full confidence as well as mutual help and determination, as one player can motivate all the others to fight for a win, for the best possible result.

PM

In your opinion, how strong is Polish competitive sport in the minds of foreign observers? What already is and what could be a distinguishing feature of Polish sport across the world?

Sport is one of a country’s flagships, proving its success. Today, we see the need for creating a coherent image of Poland in various fields – sport, tourism or culture. Poland is an amazingly diverse country with its wealth of culture, history and nature. We do not have a single leading tourism brand, nor do we have one in sports. I do not consider it a weakness, but a strength – our strength in diversity. To PM

my mind, one can recognise Poland and its brand development in tennis, hugely thanks to Agnieszka Radwańska, or in ski jumping, where Kamil Stoch keeps winning and reigning so wonderfully. We can also be recognised in athletics and aviation. Then, there is the phenomenon of Polish mountaineering.

Finally, as I mentioned earlier, we are again very strong in volleyball.

And what does the promotion of Poland through sports mean to you?

There is no other more effective means of promoting a country than through sports.

During ski jumping or ski running, at matches, tournaments, and athletics meetings you can see the Polish colours, flags and Polish fans everywhere. The national anthem is sung before every match – be it football or volleyball. That is why sport ranks high in the activities of the state authorities. And this requires a constant pursuit of comprehensive development plans for sports, which is not only entertainment but also an important element of the promotion of Poland and an essential factor building the country’s social capital and economy. It is also important to draw attention to mass sporting events held in Poland, as PM

Our Guest these promote our image in the international arena – presenting the beauty of our country, our wonderful heritage created across centuries and an enormous potential of its people.

In 2018, the Ministry of Sport and Tourism received over PLN1.249 billion from the national budget. It is a historic high.

Let’s briefly discuss the main goals these resources will be allocated to.

A large proportion of them will be earmarked for the development of sports infrastructure. Over the last three years we have allocated nearly PLN1.7 billion to new sports facilities alone – thanks to this there will be over 4,300 facilities developed across Poland.

This means sports grounds, sports halls, gyms, roller-skating rinks, swimming pools, iceskating rinks, ski trails and athletics stadiums. We keep on expanding the training infrastructure for Polish sports associations, in particular those whose competitors are preparing for the winter and summer Olympic Games. Our investment programme includes sports mastery schools, universities of physical education and the Sports Institute which performs anti-doping tasks, among others.

In 2018, we have channelled PLN516 million from our budget to co-finance the development of infrastructure. About PLN226 million has gone to subsidise sports of children and adolescents. There has been an increase in each area, including competitive sports, sports of people with disabilities and sports of children and adolescents. In comparison to 2017, the amount of money earmarked for actions in the sports area is higher by a total of PLN146.5 million. In 2018, the total we have allocated to promoting sporting activity among the Polish people in general, and children and adolescents in particular, exceeds PLN226 million. That’s 93% more than in 2015. In the Ministry’s investment plans for 2018 there appeared two completely new programmes mainly addressed to local government bodies. The first one, called OSA – Open Activity Zones, focuses on the development of small sports and recreation infrastructure of a multigenerational character. The second novelty is a programme to develop local infrastructure – Sportowa Polska. Its objective is to support the growth, modernisation or construction from scratch of sports infrastructure for clubs and school sports grounds, among others. What’s the most important today is to provide training opportunities to children and adolescents so that hundreds, thousands even, of kids could practise sports! It has to start at the lowest, but crucial, level, which is school. This is the foundation of the entire sports pyramid! It is school where the initial PM

talent-spotting takes place – talent which can later on develop within clubs. Somebody just needs to notice the talented children and organise the school’s sports life, and I mean organise it systemically. Now, there is a chance to recreate its role at this student level, as without work at the grass roots there would be no future champions – successors of Kamil Stoch, Justyna Kowalczyk or Robert Lewandowski; they will not pop up just like that.

Somebody has to spot them and direct them onto a professional training path. In 2018, the budget of our School Sports Club (SSC) Programme amounts to PLN52.7 million. This will enable about 350,000 children to participate in regular sports activities across Poland. And there is also the governmental programme called KLUB. The programmes we implement make use of the National Talent Pool introduced by the Ministry in 2017. Last year alone, there were about 2 million physical aptitude tests, with around 450,000 people tested. To not miss out on talent, we have launched the team100 project as part of which 250 young, promising athletes under 23 are receiving extra individual support.

Improving the management level is also a challenge today.

In spring 2018, the Academy of Sports Management was launched at the initiative of Minister Witold Bańka. The goal of the Academy is to comprehensively improve people’s qualifications in the fields of organisation, management and marketing in Polish sports associations, which in the long run should make Polish sports more professional. The quality of management as well as reliability and cost-efficiency in deploying public funds are the key questions in the context of gradual increase in the level of competitive sports in our country. The programme is run by the Institute of Sport – National Research Institute, which for over 40 years has supported athletes in their pursuit of prowess and in promoting what’s most beautiful about sport.

Earlier on, at the Ministry of Sport and Tourism, we had developed the Good Management Code for Polish Sports Associations – a forward-looking document setting out specific guidelines, the adoption of which will be looked at when awarding the funds.

PM

PM

The centenary of regaining Poland’s independence is a time when we recall events and people who fought for freedom. Alongside great political leaders it is also worth remembering about the athletes who marked their names as regards Poland’s independence. Patriotism is surely an element inherent in sports spirit.

IT IS ALSO IMPORTANT TO DRAW ATTENTION TO MASS SPORTING EVENTS HELD IN POLAND, AS THESE PROMOTE OUR IMAGE IN THE INTERNATIONAL ARENA – PRESENTING THE BEAUTY OF OUR COUNTRY, OUR WONDERFUL HERITAGE CREATED ACROSS CENTURIES AND AN ENORMOUS POTENTIAL OF ITS PEOPLE. International sports events are a noble competition between countries, and the patriotic attitude of players representing us is a beautiful example of the love for their motherland. Bear in mind that each competition begins with the national anthem. Athletes are at the forefront of Polish spirit, the spirit of patriotism. Still during the period of partitions, sport had a role in preparing young Poles to fight for an independent country. After regaining independence, in the interwar period, our athletes afforded us innumerable emotional moments; they were a living representation of a young state which, though facing a number of issues, had a vision for its development. The regaining of independence gave a boost to progress in the sports area. Sports associations and clubs were created or reactivated. Later too, paradoxically, at the time of political oppression in the Polish People’s Republic, all the emotions we lived together with our sportspeople, our matches, scores, our records were imprinted on our great in• dependence history of the last century!

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P. Tracz/ KPRM

KEEPING THE MEMORY ALIVE

Senator ANNA MARIA ANDERS, Secretary of State at the Polish Prime Minister’s Office, and Government Commissioner for International Dialogue, talks to “Polish Market’s” Błażej Grabowski about the fate of Poles in Soviet Russia during WWII. She also discusses celebrations in the Polish diaspora marking the 100th anniversary of Poland’s rebirth as an independent state.

Anna Maria Anders’ father, General Władysław Anders, was the commander of a Polish army formed in the USSR in 1941 to fight alongside the Allies. After the war he lived in exile in the West and was active in emigre Polish political circles.

In a number of interviews you have mentioned that your father, General Władysław Anders, was an optimist. The post-war years were very tough. He had to face the fact that his expectations had not been met. He had every right to be disappointed, yet he was always optimistic and he believed that Poland would be independent again.

I do not remember my father ever being depressed. I have referred to him as an optimist.

I think he also never gave up. He was one of those people who are just determined to fight to the end. So I think that goes together because as long as you are fighting you are optimistic, you think that you will reach your goal. I can imagine it had to be very difficult for him. I was a child then, at a time which I think was probably the PM

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most crucial period after the war. He was very outspoken. He honestly believed that something would change, that Poland would become free, that it would be the end of communism.

Your father dreamed of a free Poland but he did not live to see it happen. He met with lots of people after the war. He backed the independence drive. What exactly did he do?

My father was active until he passed away.

He knew after the war what was going on in Poland. I think his work consisted of two parts.

One was the well-being of the Polish people who were members of the Polish army. Particularly the ones who came to the United Kingdom.

If you look at the photographs, he was always visiting different places where Polish people PM

settled. In 1953 he started “Polska Macierz Szkolna” [a Polish educational and cultural organisation in Britain – ed.]. He was very focused on education. At the very beginning, even in Russia, he was concerned with the future of the young people who joined his forces. He wanted to give them a chance to be educated. He thought about it also in the Middle East and in Italy and then of course when they came to the UK. That’s when he was really focused on it. So I think that was part of his job. With the view perhaps, on the one hand, that the things would change and they would go back to Poland. On the other hand, if that didn’t happen, just to preserve their identity and culture.

I think you have to remember that the aim of the Germans and Soviets was to get rid of the Polish

elite, in which they succeeded to a considerable extent. So I think that was the whole point about educating young people so they would be able to take over. That is one part of it, his life after the war – the education and well-being of the Polish people. On the other hand - and this is something that I personally know less about because I was too young - he was always meeting with politicians from all over the world. I have pictures of him with President Kennedy, with President Eisenhower, with various prominent politicians from all over the world and politicians in the UK. I think he hoped they would take a stand and the communist government in Poland would fall. His work continued until the day he died. Whether he ever reached a moment when he thought it was hopeless and Poland would not be free, I couldn’t see it. He continued to participate socially. He was pretty sick the last few years before he died but whenever he had a better day, he would go to the office. He was on the phone, he was watching television, reading the news. So he never really gave up. When he passed away in 1970, the prospects looked bleak and it took another 20 years really. And then it took everybody by surprise that everything went so quickly. So he never gave up. He dreamed about a free Poland. It was an incredible generation. My father and his soldiers, the ones who are still alive, fewer and fewer of them, they really had a courage, determination and they really believed that they were fighting for a free Poland. Fighting to return to a free Poland. So I can imagine how they felt.

One of General Anders’ greatest achievements was that he secured the release from Soviet labour camps in Siberia of Polish families who had been sent there by Stalin. How significant was this? Did these people keep in touch with him after the war?

They were a family. 120,000 came out of Siberia. With other divisions which joined them, I think the number was 200,000.

I am not really sure how many people actually came to the UK. Some stayed in Italy, some came to the UK and then emigrated to other countries. They still kept touch with my father and later with me. And we are still in touch. We often meet at gatherings with Polish veterans, the Siberian Association. They are like family to me. My father had an unbelievable charisma. And I am a strong believer that any successful leader has charisma. My father’s soldiers trusted him. They would follow him until the end of the war. They talked about him as being a Moses. He had time for everybody, he was extremely affectionate toward the young people. They were very, very young and they said he was like a father to them. Anybody who came out of Siberia, the families of those who came out, you have no idea, how it is when they actually come up to me, take my hand, sometimes with tears in their eyes, to say thank you because it was your father who saved us.

I am very close to all these groups. In addition to my work in the Polish government, I spend a lot of time with these groups attending ceremonies, attending their gatherings. It is very important to me. I often say they are like family and they behave like family. So I think those ties never broke. I have travelled a lot and I meet those people and it is incredible all over the world. There is always somebody who has some kind of link with Siberia, with my father, and so on.

which takes place every year at the beginning of September, with 15,000 people attending. There are schools, scouts and organisations, like for example “Wnuki Sybiraków” (Grandchildren of the Siberians). It is all very prominent. Here in Poland there are memorial groups working to have museums. To my mind this is extremely important because during so many years of communism in Poland, the talk was about Nazi German concentration camps. But nobody really talked about deportations to Siberia, it was inconvenient for Soviet Russia. We are now talking about it, people are writing books about it. They are coming out in English, written by young people whose families came out of Siberia. I think it is very important because many people are clueless.

I mean, I am shocked when I meet people in the United States who don’t even know that Germany and the USSR invaded Poland in 1939. So people ask why there are so many Polish people scattered throughout the world. I think on a wider scale, it is important for people around the world to know what communism was like. They don’t know about Siberia. They don’t know about the Gulags. I am going to be in Washington DC in November at the Host Committee of the Victims of Communism banquet.

They are trying to raise money to build a museum to the victims of communism in Washington DC, and I think also one in London. It is incredible how many young people in the UK think the whole idea of communism is quite romantic, because they simply don’t know. So I think my father’s story and the story of Siberia is extremely crucial.

PM

Are the veterans’ circles and their families still as active as before?

They are incredibly active. There is one wonderful thing - it has been passed on to the younger generation. One example is “Marsz Sybiraków” (March of the Siberians), an event in Białystok PM

We are at a different point in history right now. We are free to talk about what went on in Europe in the past. You have mentioned that the Polish diaspora can be found all over the world and that it is greatly integrated. In November Poland will be celebrating the centenary of regaining its independence. In what way is it going to be celebrated outside Poland?

It is very important for Polish people wherever they live.

I have been to several events this year because people don’t want to do everything in November because it’s impossible. Everything that has happened abroad I think was a commemorative event. One of the most crucial events is going to be held in London in November. There will be a mass at Westminster Cathedral on November 10 and a huge concert with guests and artists from Poland on November 11. Washington DC is also planning a commemorative event in November. I think our embassies have already had several meetings. There was the Pulaski Parade in Buffalo where I was in July. Its theme was 100 years of independence. I think marking the anniversary is very prominent not only in Poland but everywhere among Polish people throughout the world.

PM

Young Americans are often uninformed about Polish history and WWII. But what about young people in the Polish diaspora? Do they know Polish history, are they interested in Poland?

It is not only young people who don’t know the history of Poland. I have a son who studied history in the US and the subject of WWII never came up. It was not covered at all. I have spoken about it with various people in the United States and they agreed with me that there’s a huge gap in education. So I don’t think this is a question of knowing Polish history. I think it is a question of knowing European history. In Europe, of course, people know a little bit more but there’s not much said about • Poland.

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Paderewski at the National Opera

IGNACY JAN PADEREWSKI (1860-1941), a great Polish pianist, composer, and statesman, was earlier featured in a special edition of the magazine (213/2014). His music was performed at a concert co-organised by “Polish Market” and the Teatr Wielki – Polish National Opera on June 4, 2014. Paderewski was a multidimensional character, a rare combination of an artist with a statesman who made a contribution to building a new Polish state in the harsh realities following the First World War. An exhibition entitled “Paderewski. Anatomy of a Genius,” is now on at the Opera Gallery of the Teatr Wielki – Polish National Opera in Warsaw. It is a presentation of some of the most captivating artefacts from the life of the famous Pole. A special place at the exhibition is reserved for “Manru,” the only opera written by Paderewski and at the same time the only Polish opera that has ever been shown at the New York Metropolitan Opera, where it was staged in the 1901-1902 season. The premiere of the latest production of “Manru” directed by Marek Weiss was held at the Teatr Wielki – Polish National Opera in Warsaw on October 12.

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t the turn of the 20th century, Paderewski - a piano virtuoso and an amazing performer of Fryderyk Chopin’s works - was one of the most famous Poles in the world. Just like in Chopin, we find in Paderewski two perfectly united beings: a patriot and an artist. The soul of the first feeds the genius of the other. Because of being recognised internationally and enjoying enormous respect in Poland, Paderewski was elected prime minister, taking office in early 1919. However, he did not stay in office for long, less than a year. He resigned, because he felt he was misunderstood by politicians who surrounded him. He became Poland’s ambassador to the League of Nations in Geneva, but after two years he finally withdrew from politics. He returned to it after Poland’s defeat at the hands of the Nazis in September 1939 when he became the head of the National Council in Paris and then in London. As a politician, he first became famous when together with another statesman Roman Dmowski, he joined a peace conference in Paris, which culminated in the signing of the Treaty of Versailles. It is also said that under Paderewski's influence the need for Poland to regain independence was duly emphasised in the famous 14 points US President Thomas Woodrow Wilson presented before Congress in January 1918. Paderewski's concerts and his piano interpretations, appealed to everyone and still leave music lovers in awe to this day. His accomplishment was the fact that he infected thousands of people all over the globe with a love of music. His passionate creativity became his trademark. Paderewski's concert tours took him all over Europe, the Americas, South Africa, Australia and New Zealand.

He gave recitals for Queen Victoria, other members of royalty, and successive US presidents. Paderewski's fame as an artist, his talents and qualities became legendary. He spoke five languages. He was known as a great orator, hardworking virtuoso and brilliant composer. Camille Saint-Saëns described him as “a genius, who also accidentally plays the piano.” Paderewski himself said with a note of self-irony: “I may not be the best pianist, but what an amazing speaker I am.”

Paderewski's artistic career is unrivalled in the history of Polish music, as exemplified by the fact that his opera "Manru," as the only Polish work, was produced at the prestigious Metropolitan Opera in New York, as well as in numerous American and European cities. “This outstanding personality - an artist, composer and statesman - and his role in Poland regaining its independence, shaping

its borders and relations with world powers of the day, are not fully given justice and honoured,” Waldemar Dąbrowski, director of the Teatr Wielki – Polish National Opera in Warsaw writes in a catalogue for the new artistic season 2018/2019.

At the exhibition at the Opera Gallery entitled "Paderewski. Anatomy of a Genius," you can trace the origins of Paderewski's fame. You can also find out what helped him fight for Poland in the international arena so effectively.

The exhibition includes objects from the Archive of New Records in Warsaw, the Historical Museum of the City of Krakow, the National Museum in Poznań, the National Museum in Warsaw, the Jagiellonian University Museum Collegium Maius and the Polish Music Documentation Centre of the Jagiellonian University. Vistors can admire portraits, photos, press cuttings featuring Paderewski’s role in politics, as well as his caricatures, which, incidentally, are mostly nice rather than malicious. You can also find a tailcoat, an inkwell, and a makeup box specially designed for Paderewski by Louis Vuitton, as well as a gallery of Paderewski’s portraits by famous Polish graphic artists and painters, including Andrzej Pągowski and Bogusław Lustyk. The exhibition is accompanied by a biography "I. J. Paderewski” by journalist and sculptor Alfred Nossig (1864-1943) who wrote, among others, the libretto for the opera "Manru". The book is an informal tale containing plenty of amusing anecdotes. The publication is a valuable document in which the impressions that the author gained from meetings with Paderewski were recorded. The biography was translated by Aleksander Laskowski.

A special place at the exhibition is reserved for "Manru," the only opera by Paderewski. Work on the opera took several years. It tells the story of an unfaithful Roma - Manru, who abandons his wife, highlander Ulana, and returns to the Gypsy camp. "Manru" also tells the story of social differences. The central characters pay a high price for crossing the social divide. Their love is put to the test, and it does not end well. The world premiere of "Manru" took place in Dresden on May 29, 1901. A few days later it was performed in Lviv, then Austro-Hungary. In February 1902, it was staged in New York. Paderewski thus spoke about his work at a press confrence in New York in 1902: "I think the novelty of ‘Manru’ is that unlike the usual romantic story, its subject-matter is based on racial conflict. It is also thoroughly musical." The score contains particularly impressive symphonic parts for the orchestra and enchanting vocal parts. Paderewski also included folklore

PADEREWSKI HIMSELF SAID WITH A NOTE OF SELF-IRONY: “I MAY NOT BE THE BEST PIANIST, BUT WHAT AN AMAZING SPEAKER I AM.” elements in the score, such as highland dances and Gypsy motifs. Composing music for "Manru" Paderewski was inspired by the operatic output of Richard Wagner, which diverged from the traditional structure of the opera. At the same time, however, he also wrote: "The choice of the topic allowed me to introduce a large amount of lyricism to the libretto and in this respect I followed the Italian method."

After its triumph at the beginning of the 20th century, the opera fell into oblivion. Now, as Poles celebrate the 100th anniversary of their country’s independence this year, this work is brought back to our attention thanks to the Teatr Wielki – Polish National Opera in Warsaw. Tenor Peter Berger has been cast in the title role of Manru. Ewa Tracz appears as Ulana and Monika Ledzion-Porczyńska as Aza, the Roma temptress. The Teatr Wielki - Polish National Opera and Orchestra Choir, accompanied by the Władysław Skoraczewski Artos children's choir is conducted by maes• tro Grzegorz Nowak.

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FROM TALKING MOVIES TO WALKIE-TALKIES In the 9(276)/2018 edition of “Polish Market,” we featured a number of prominent Polish inventors who left their mark on their respective fields of endeavour, in an article by Ewa Mańkiewicz-Cudny, President of the Polish Federation of Engineering Associations and Editor-in-Chief of the “Przegląd Techniczny” magazine. We have now asked PROF. BOLESŁAW ORŁOWSKI of the Institute of the History of Science of the Polish Academy of Sciences to pick some more outstanding Polish scientists who worked in foreign countries and whose discoveries and inventions were truly revolutionary but whose achievements are not always given enough credit.

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ózef Tykociner-Tykociński (1877-1969) participated in Guglielmo Marconi’s group which in December 1901 achieved the first radio communication across the Atlantic Ocean. He was also the first inventor who added a soundtrack to a film by means of a photographic recording of an acoustic signal. In 1922, he made a demonstration of his sound system at the University of Illinois. Despite this success and enthusiastic press reports, Tykociński’s invention was not used by the American film industry.

Witold Zglenicki (1850-1904), a miner and geologist educated in St. Petersburg in Russia, was a pioneer of oil prospecting under the seabed. He proposed to fill the shallow bays of the Caspian Sea with solid matter to enable the use of standard land drilling techniques there. This idea was implemented in Bibi-Eybat Bay by another Pole, Paweł Potocki.

Self-taught inventor Jan Szczepanik (1872-1926), who worked mainly in Berlin, Dresden and Vienna, owned 91 original patents.

He was called the “Polish Thomas Edison.” In the years 1898-1909 he worked on the technique of colour photography. He invented photosensitive paper, which was produced in Switzerland since 1905, and 35mm colour film which he developed in 1899. It was later used in practice by the well-known companies Kodak and Agfa.

Szczepanik’s scope of inventions was very wide and his achievements also included a photo-sculptor (an instrument used in copying sculptures, 1899) and an automatic air supply system for boiler furnaces (1901). He also contributed to the development of a bullet-proof silk vest.

A not her i nventor, Zygmunt Puławski (19011931) designed a new concept aircraft wing, which became an international sensation under the name “Polish wing.” It resembled the shape of a gull wing and offered the pilot an exceptionally good field of vision. The Polish plane found recognition in many countries, including in France and Germany.

Tade u sz S ę d zi m i r (1894-1989), an expert in metallurgy and a successful entrepreneur, ran a factory of metal products for the Far East Railway in Shanghai in 1919-29. Problems he encountered with low-quality carbon steel vulnerable to corrosion in the sea climate prevailing there, which was in standard use at the time, inspired Sędzimir to look for innovative solutions in the field of anti-corrosion protection. He came up with ingenious ways of zinc-coating metal surfaces. He initially failed to find enough commercial backing in a crisis-stricken United States, but

managed to develop his idea successfully at home. Leading French, British and Belgian companies became interested in his innovative technologies. He opened an office in Paris (1935), and then in the United States (1939), where a process line based on his technology was launched at the Armco plant in Pennsylvania. He also designed a cold rolling line for the Signode steelworks in Chicago. He was a versatile inventor who obtained about 120 patents in various countries. One patent concerned the thermal shields of space vehicles.

The contribution of Polish scientists to the development of military technologies during WWII proved very significant. Poles scored the most spectacular achievements in improving radio equipment.

Wacław Struszyński (1905-1980) built an antenna enabling the detection of German submarines. Henryk Magnuski (1909-1978) developed one of the first walkie-talkies based on the principle of frequency modulation. At least 100,000 of these were manufactured for US troops in Europe and the Pacific since 1943. Magnuski received praise for his work from the Allied Command. He also designed an AN / CPN-6 radar beacon for the US Navy, which facilitated landing on aircraft carriers in conditions of limited visibility. One of the chairs at the University of Illinois in Chicago was named after him.

Zygmunt Jelonek (1909-1994) led a team at a signals research and development centre in Christchurch, southern England, that built a radio station which enabled communications between the command and units which fought on the beaches of Normandy during the invasion of early June 1944.

Among the most spectacular post-war technological achievements by a Polish scientist was the participation of Stanisław Marcin Ulam (1909-1984) in the invention of the hydrogen bomb (1952). Ulam was one of the greatest mathematicians of the 20th century, a representative of the internationally-known Lvov school of mathematics, which in the interwar period gathered a team of exceptional talents. The outbreak of the war found Ulan in the United States. He participated in the Manhattan project. Beginning in 1944 he worked in Los Alamos on the construction of the atomic bomb. He then participated in work on the hydrogen bomb. He showed that Edward Teller, the originator of the bomb, who led the project, had come to erroneous conclusions which brought the process to a halt. He managed to find a solution.

Stefan Tyszkiewicz (1894-1976), was a truly versatile inventor. He became the winner of the Grand Prix at the EXPO in Brussels in 1958. He built a device for neutralising non-magnetic (wooden) anti-personnel mines, which are very difficult to detect. He became one of the pioneers of electronics, early dictation mechanisms and remote reproduction systems. He also dealt with the automation of airport control and participated in the construction of meteorological rockets. He designed ingenious pieces of equipment for the disabled which enabled them to move up the stairs.

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100 FOR 100. MUSICAL DECADES OF FREEDOM Eleven concerts in Poland and eleven in other countries, all to be held on one day - November 11, 2018 - the centenary of Poland regaining its independence. That’s the idea behind the project “100 for 100. Musical Decades of Freedom,” a flagship undertaking celebrating the one hundred years since Poland returned onto the map of Europe. The project is financed by the Ministry of Culture and National Heritage as part of the “Niepodległa” (Independent Poland) programme for the 2017-2021 period. Maciej Proliński takes a closer look at what music lovers at home and abroad can look forward to during this season.

“

100 for 100. Musical Decades of Freedom” is a programme not only meant to offer Poles a spectacular way to celebrate the achievements of independent Poland, but also to promote Polish music abroad. “This is the biggest musical project of a free Poland. These works have been written between 1918 and the present day and represent the best, the most valuable and the most original pieces in contemporary Polish music.

It is actually impossible to include all the best of Polish music written over this time among these 100 works. It is a celebration of Polish music, as well as a great promotion of Polish culture and Poland. Each of the concerts will start with an opening tune written by Krzysztof Penderecki. In Poland, we will start the marathon in Krakow and abroad we will start in Chicago,” said Minister of Culture Prof. Piotr Gliński. As part of this season, music by such recognised composers as Karol Szymanowski, Henryk Mikołaj Górecki, Paweł Mykietyn, Agata Zubel and Grażyna Bacewicz will be presented. Works by lesser-known Polish artists, such as Roman Padlewski, Józef Koffler, Włodzimierz Kotoński and Andrzej Krzanowski will also be included. Pieces of music that made it to the Top 100 of the past one hundred years will be performed by artists of international renown. Some of the featured works will include “Stabat Mater” and “Harnasie” by Karol Szymanowski, Alexander Tansman's “Piano Concerto No. 1,” Andrzej Panufnik's “Tragic Overture,” the famous “Symphony of Sorrowful Songs”

by Henryk Mikołaj Górecki, “Symphony No. 3” by Witold Lutosławski, “Not I” by Agata Zubel, and "St. Mark Passion” by Paweł Mykietyn. The first concert of the programme will take place at the Karol Szymanowski Philharmonic in Krakow at 11 o’clock on November 11. The programme of the concert includes one of Szymanowski’s finest works “Stabat Mater.”

Soloists Leszek Skrla, Ewa Marciniec and Anna Mikołajczyk-Niewiedział will be accompanied by the Krakow Philharmonic Orchestra and choir under Tadeusz Strugała. Among concerts to be held in Poland, a concert at the European Solidarity Centre in Gdańsk promises to be the most

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unconventional. Artists Stefan Wesołowski and Michał Jacaszek, who both take an unconventional approach to music through experiments with audiovisual techniques and electronic music, will present such pieces as “Study for One Cymbal Stroke” by Włodzimierz Kotoński and “Szeptet” by Wojciech Michniewski, described as a song for two sopranos, two mezzo sopranos, two altos and a bodybuilder. Works by Witold Lutosławski will be performed at the National Forum of Music in Wrocław, while Katowice will see a concert of works by Wojciech Kilar and other composers performed by the Polish National Radio Symphony Orchestra.

On November 11, audiences in eleven cities around the world, such as New York, Tokyo, Chicago, Melbourne, Lviv and Paris, will have the opportunity to listen to outstanding works by Polish composers performed by both Polish and foreign artists. Celebrations in foreign countries will start with a concert at St. Hyacinth Basilica in Chicago where Wojciech Kilar's “Missa pro pace” will be performed by the Paderewski Symphony Chorus and Chicago Philharmonic under Marek Moś, featuring soloists Natalia Rubiś, Katarzyna Sądej, Jesse Donner and Kurt Link. The Melbourne concert promises to be very exciting - the Elision Ensemble, known for its virtuoso interpretations of contemporary classical music, will perform, among others, “Fantasmagoria” by Kazimierz Serocki and “Hgrrrsht” by Dobromiła Jaskot. The acclaimed Silesian String Quartet will perform in Tokyo, where they will present, among others, works by Karol Szymanowski and Krzysztof Penderecki. Polish Radio will be recording most of the 22 concerts for later broadcast. On November 11, a CD box set will be released with recordings selected for the Polish Music Publishing House’s “100 for 100. Musical Decades of Freedom” programme. The collection will include 100 recordings on 36 CDs, 60 of which will be new recordings performed by eminent Polish artists, and 40 are masterpieces of Polish phonography acquired from the archives of Polish Radio and • the Polskie Nagrania record company.

GREAT

UNPREDICTABLE

COMPOSER

The world-famous Polish composer Krzysztof Penderecki will celebrate his 85th birthday on November 23. A festival dedicated to this artist, who is also a conductor and lecturer, will be held in Warsaw on November 16-23. The event is organised under the honorary patronage of the Minister of Culture and National Heritage PROF. PIOTR GLIŃSKI. Its organisers are: the Ludwig van Beethoven Association, the KRZYSZTOF PENDERECKI European Centre for Music, the National Centre for Culture Poland, the Krzysztof Penderecki Academia Association and the International Music Centre in Żelazowa Wola.

Maciej Proliński takes stock of the artist’s work and his international successes.

Maciej Proliński

“

Krzysztof Penderecki is a great and very important personality of Polish culture. He is a figure without which it is difficult to imagine Polish culture. The festival will be a big and important event," Polish Culture Minister Piotr Gliński writes in his invitation to the festival. Some of the most outstanding artists, performers from around the world, eminent conductors, also those representing the younger generation, will take part in seven symphonic and three chamber concerts to be held at the National Philharmonic, the Teatr Wielki – Polish National Opera and the Royal Castle in Warsaw.

Each of the invited conductors will conduct one piece. Leading Polish orchestras such as the National Philharmonic Symphony Orchestra, Polish National Radio Symphony Orchestra in Katowice, Sinfonia Varsovia, the Krakow Philharmonic Choir and the Podlasie Opera and Philharmonic Choir have been invited to participate in the festival. Such famous conductors as John Axelrod, Christoph Eschenbach, Lawrence Foster, Jacek Kasprzyk, Jerzy Maksymiuk and Alexander Liebreich will make an appearance. Among the soloists will be rising stars and world-famous musicians - the composer's friends who were the first to perform works written specially with their particular talents in mind, including

Anne-Sophie Mutter, Gábor Boldoczki and the Shanghai Quartet. The concerts will feature a retrospective of the composer's works written over six decades. Among them there will be “Threnody to the Victims of Hiroshima” of 1960 - one of the best-known and most often performed works by the composer, for which he received, among others, a UNESCO prize.

Other highlights will include Symphony No. 2 “Christmas” and “Sextet” of 2000 for the clarinet, French horn, violin, viola, cello and piano. There will also be works representing the artist’s various periods - from avantgarde works of the 1960s to works from recent years: “String Quartet No. 4” written in 2016 and “Symphony No.6 Chinese Poems.” An anniversary concert will take place at the Teatr Wielki – Polish National Opera on November 23, during which the Sinfonia Varsovia Orchestra will be conducted by Krzysztof Penderecki himself, accompanied by the combined choirs of the National Philharmonic and the Teatr Wielki – Polish National Opera.

The soloist will be violinist Anne-Sophie Mutter, who will perform “Violin Concerto No.2 Metamorphosen" written for her by Penderecki in 1992-95. Another piece on the bill will be the “Concerto Grosso” for three cellos and orchestra (2001). The soloists will be Arto Noras, Ivan Monighetti and

Frans Helmerson and the conductor will be Christoph Eschenbach. The final piece of the gala will be "Dies illa," which was written to mark the 100th anniversary of the outbreak of WWI. In the work, the composer used a fragment of a medieval Latin funeral mass and created a truly universal work. During the premiere of this work in Brussels in November 2014, 28 choirs from different countries took part - in total, 1,350 artists performed in Brussels cathedral.

Krzysztof Penderecki's music first gained world recognition in the late 1950s.

In his work, he demonstrates his interest in new possibilities offered by voices and instruments as well as his love for large-scale, monumental forms. A significant role in his music is played by religious and humanist themes. A breakthrough in his composing career came with "St. Luke Passion" written for the WDR radio network in Cologne in 1965. It opened a series of oratorios and cantatas, which increasingly referred to late Romantic aesthetics. From then on, focusing on universal topics, and drawing inspiration from the most important literary sources in European culture, Penderecki has been writing works which capture the essence of 20th-century music: from medieval hymns • to the avant-garde.

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THE SECOND POLISH REPUBLIC AT INCEPTION

On the eve of World War I, Germany was the most economically developed country of all the partitioning powers that had occupied Poland for more than 100 years. Austria was less developed and Russia the least. In 1913, the per-capita domestic product expressed in current prices amounted to an equivalent of 146 US dollars in Germany (USD113 in the part of Poland held by Prussia), USD102 in Austro-Hungary (USD38 in Galicia, the part of Poland held by Austria) and USD44 in Russia (USD63 in Congress Poland, the part of Poland held by Russia).

B

efore World War I, it was mainly Polish lands to the west of the Vistula river that experienced economic development.

The technological level of industry in these parts of Poland was similar to that of economically developed European countries. The mining and steel industry in the region of Silesia resembled the one in Rhineland and Westphalia while the industrial city of Łódź was called Polish Manchester. However, the impact of industry on agriculture, which accounted for most of the Polish economy, was very limited beyond the regions of Wielkopolska and Pomerania. The percentage of people employed in agriculture was 65% on average in Polish lands while at the same time it stood at 15% in England and 36% in Germany. The reason was the fragmentation of peasant farms, agrarian overpopulation, a shortage of money for investment and lack of propensity to invest. Pressure from the supply

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of cheap rural labour was a significant factor behind low wages earned by urban workers.

Additionally, each of the partitioning powers pursued its own policy, which means their borders divided Poland into parts representing completely different economic and social development levels, customs and social awareness. For example, almost 100% of children in the Prussian Partition could read and write while almost 70% of children in the part of Poland occupied by Russia were illiterate.

The three occupied parts of Poland did not make up a single national market. Just the contrary: they differed in terms of marketing outlets and supply markets, infrastructure systems, and even systems of weights and measures, time zones, calendars and alphabets. After 123 years of partition, the social and economic integration of Polish lands could seem unfeasible.

POPULATION SITUATION IN POLISH LANDS DURING WORLD WAR I War operations continued in the region since the second half of 1914.

They ended in the middle of 1915 when the Russian forces withdrew from Congress Poland and from Galicia, the latter of which they had temporarily occupied. Congress Poland was seized by Germany and Austria. It was mainly villages and small towns that suffered war damage.

The withdrawing Russian army disassembled and took away with them many industrial plants and their staff. If there was not enough time for evacuation the plants were blown up. The Austrians did not have time to evacuate industry, but managed to stop the work of some mines and oil refineries. Although the Polish lands held by Prussia did not see war operations, industrial and agricultural production in these parts was also adversely affected because many workers were recruited to the army. The occupying authorities issued regulations on the sale of products and eventually almost all food products were subject to rationing. Coal, kerosene and other staple goods were subject to rationing. Output decreased even in those sectors which produced to meet Germany’s needs.

The difficult situation of the population living in Congress Poland was mainly caused by a shortage of work, food and heating fuel. People’s health deteriorated and mortality increased owing to bad living conditions and epidemics. At the end of the war, Spanish flu - an unusually deadly influenza pandemic - started to take a heavy toll.

Apart from agriculture and industry, transport infrastructure was also seriously damaged. Many bridges, viaducts, railway stations, railway workshops, and junction stations were blown up. The Germans rebuilt only what was indispensable for them to keep military transports going. Railway passenger transport became completely disorganised because of a lack of locomotives.

After the outbreak of the war the partitioning powers suspended the convertibility of their currencies. In Congress Poland, holders of bank savings deposits rushed to withdraw their money and tried to exchange it into gold while they still could.

AREA AND BORDERS It was not until 1922 that Poland’s borders were finally established.

The country had an area of 388,634 square kilometres. The maritime border was short – only 144 kilometres. Located at the mouth of the Vistula river, the city of Gdańsk, with a large, though antiquated port, was under League of Nations protection. Poland’s longest border was with Germany – 1,912 kilometres. Its course underlay Polish-German conflicts throughout the next 20 years. The 1,412-kilometre-long border between Poland and the Soviet Union cut through areas inhabited mainly by non-ethnic Poles while to the east of the border there existed large clusters of the Polish population. Poland’s border with Czechoslovakia was 984 kilometres long and political relations between the two countries were bad. The 507-kilometre-long border with Lithuania was closed until 1938 as the Lithuanian government maintained the position that the two countries were still in a state of war. The Polish-Romanian border was 349 kilometres long and relations between Warsaw and Bucharest were friendly. The border with Latvia was the shortest – 109 kilometres – and Polish-Latvian relations were correct and sometimes even friendly.

The 100 years between 1815 and 1914 was a favourable period in demographic terms. The population living within the borders of the Polish state as they were on January 1, 1938 increased from 9 million in 1800 to 13.6 million in 1850, 26.6 million in 1900 and around 30 million in 1913. The size of the population for January 1, 1914 was estimated at 30.3 million and for January 1, 1919 at 26.3 million.

The biggest city was Warsaw with 937,000 residents in 1921, followed by Łódź with 452,000 residents. Among the main administrative and economic centres were also Lwów (219,000), Kraków (183,751), Poznań (169,000), Wilno (129,000), Bydgoszcz (88,000), Katowice (50,000), Białystok (77,000) and developing industrial centres such as Chorzów, Częstochowa and Sosnowiec. One factor behind the growth of populations of large cities were returns to newly-independent Poland of many Polish people from Russia, Ukraine, Belarus and Lithuania. Their number was estimated at 1.2 million.

The Second Polish Republic was a multi-ethnic country. As the first national census conducted in 1921 was incomplete – it did not cover the whole country and was conducted in a period of population movements - historians usually use ethnic composition estimates for the year 1931: Poles – 64.7%; Ukrainians – 16.0%; Jews – 9.8%; Belarussians – 6.1%; Germans – 2.4%; Russians – 0.4%; Lithuanians – 0.3%; Czechs – 0.1%; and others – 0.2%. “Slavic” minorities lived mainly in rural areas, forming dense clusters in eastern provinces. Most of the German population lived in Western provinces and in Łódź, and the Jewish people were found mainly in cities. In July 1919, Poland ratified the treaty on ethnic minorities being part of the Treaty of Versaille.

Under the treaty on ethnic minorities, the Polish state was obliged to respect minority rights when it came to language, education and so on.

Poland was an agricultural and industrial country where more than 61% of the population earned a living by working in agriculture. This share differed across denominational groups. As much as 90% of the Greek Catholic and Christian Orthodox population lived off farming. In contrast, for the Jewish population the percentage of people living off farming was only 4% while nearly 80% worked in industry and trade. Despite the constitutionally guaranteed equality of political and civil rights, the Second Polish Republic was a country with sharp economic inequalities. The living standards of the higher and upper middle classes were similar to those of their counterparts in Western Europe, but the situation of lower middle classes was much worse and the working class lived in conditions no longer seen in Western countries.

HEALTHCARE Health funds were introduced by a decree of 1919 and a parliamentary act of 1920 as basic organisational units of compulsory health and maternity insurance. There was a universal insurance system for all hired workers in the private, state and local government sectors. It also covered regular agricultural and forest workers. The health funds financed services provided by doctors and hospitals, benefits and the purchase of medicines.

EDUCATION At the start of the independent Polish state, illiterates accounted for 5% of the total populations of the Prussian Partition, 40% of the 11/2018 polish market

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population of the Austrian Partition and 57% of the Russian Partition. The percentage of illiterates was the highest in the eastern parts of Poland, though the exact figure is unknown.

There was no compulsory education in the Russian Partition. In Galicia - the part of Poland occupied by Austria – education was compulsory, but only 50% of children attended school. Only in the Prussian Partition was compulsory education strictly enforced. Polish secondary and university education existed only in Galicia.

The decree of the head of state on compulsory education for children aged from seven to 14 was issued in February 1919. It defined the obligations of local authorities in establishing primary schools and enforcing compulsory education. The decree resulted in the integration of primary education throughout the country.

WAR ECONOMY IN 1919-1920 The ongoing war for the borders of the new state meant that the military needs dominated all others and caused tendencies towards economic statism. They mainly amounted to the rationing of raw materials, fuels and food, and the launch of industrial plants considered to be important from the military point of view. The war economy was based on the experience of countries which had participated in World War I. The State Trade Institution was set up in November 1918 because of a shortage of heating fuel. And because of an acute shortage of goods the State Office for the Purchase of Necessities was established in December. The government essentially maintained the regulations on goods rationing imposed by Russia, Austria and Prussia.

In April 1919, the State Trade Office was set up to coordinate rationing.

Around 15% of the total population, mainly residents of large cities, were receiving ration coupons for bread, sugar, salt, soap, coal, matches, tea and so on. Rural residents had the obligation to supply agricultural products for the needs of the military and for rationing in cities.

INDUSTRY In the pre-war period the technological level of industry in Polish lands did not differ from the European level. But the war created a gap, which started to widen worryingly. It was only in Upper Silesia and the Poznań region that industry benefited from the wartime boom and the Germans modernised many plants operating to meet the needs of their army. A chemical works was built in Chorzów, Upper Silesia. When leaving the region the Germans took with them all the documentation to prevent Poles from launching production in the works. But Ignacy Mościcki, a professor of the Lwów University of Technology and later president of Poland, brought the plant to full production capacity within several months after the Polish state took over the works.

Production assets were seriously damaged, there was a shortage of raw materials, working capital and credit. A shortage of coal was particularly acute because it was only in 1922 that Upper Silesia became part of the Polish state. Poland received no reparations for war damage. The machines and equipment taken out of the country by the retreating partitioning powers were not returned either.

The ability of the state to influence the actions of private producers were limited and included government orders, state loans, the distribution of raw materials and the acquisition of plants which had no owners. The state inherited many industrial plants and transport and other infrastructure from the former partitioning powers (this did not concern the property of individual citizens of Germany, Austria

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and Russia who retained their assets in the Second Polish Republic).

The property taken over from the partitioning powers was the basis for the state-owned sector in the Polish economy. In Congress Poland, the Russian state had owned several mining, steel and metal enterprises, which were on private lease. Among them was the Huta Bankowa steelworks in Dąbrowa Górnicza. The Polish government maintained the lease system. The Huta Blachownia steelworks was the only plant managed by the state by 1927. In the former Austrian Partition, the Polish state took over the Brzeszcze coal mine with accompanying plants, the salt mines in Wieliczka and Bochnia, the oil refinery in Drohobycz with many individual plants, which were turned into a company called Polmin, the Spytkowice coal mine, potassium salt mines (TESP) and the Azot plant in Jaworzno. In the former Prussian Partition, the Polish state took over the salt plant in Inowrocław, grain mills in Bydgoszcz, a 20% stake in the Gdańsk shipyard, a coal company in Upper Silesia called Skarboferm, a lead smelting plant in Strzybnica, Upper Silesia, and a waterworks and chemical plant in Chorzów. All the mines, steelworks and smelting plants which had formerly been owned by the occupying countries were managed by the Central Mining and Steel Directorate at the Ministry of Industry and Trade.

The reconstruction and restructuring of industry required capital, but both private entrepreneurs and the state suffered from a shortage of money. In the initial phase of reconstruction, foreign investors were reluctant to invest in Poland because of the risk associated with proximity to Soviet Russia and the German propaganda calling Poland a seasonal state. The reconstruction of industry was mainly done with the use of state loans and was generally completed by 1923, although industrial output did not exceed 75% of the output recorded in 1913.

AGRICULTURE AND AGRICULTURAL REFORM One of the most important political and economic problems Poland faced at the beginning of the 1920s was the agrarian issue. According to the 1921 census, 64% of the country’s population lived off farming. The number of large landowners and their family members did not exceed 100,000. The number of peasants operating modern farms, mostly in the former Prussian Partition was estimated at 1.8 million.

There were around 5.5 million peasants involved in traditional farming. Rural proletariat – people for whom a source of livelihood was a very small piece of land and who additionally worked as hired labourers - numbered around 7.7 million. Additionally, there were around 3 million regular and seasonal agricultural labourers who owned no land. Hidden unemployment was a characteristic phenomenon in Polish rural areas. In 1921, the surplus in the labour force was estimated at 4.5 million. Before World War I this population had been moving to industrial districts in Prussia, Austria and Russia or emigrated to the United States, Canada and Brazil. After Poland regained its independence emigration opportunities diminished.

On July 19, 1919 the Polish parliament adopted a resolution on agricultural reform under which parts of landed properties above 60-180 hectares, depending on the character of the property, were to be subdivided and the state was to provide loans for the purchase of the land.

of the tax system started with some direct taxes. In 1920, Poland introduced a uniform income tax, industrial tax and a single tax on capital gains, and equalised land tax rates. The first budget plan for the first half of 1919 was turned down by the parliament. The same was the case with successive plans until July 1, 1924. In 1919-1924, money printing brought USD500-USD800 million for the government. It was only in 1924, that Prime Minister Władysław Grabski managed to achieve budget equilibrium after the adoption of the programme to stabilise state finances.

TAX BURDEN ON CITIZENS The tax burden on the population of the Second Polish Republic per head was one of the lowest in Europe. Assuming that in 1928/1929 the indicator for Poland was 100, the figure was 930 for Britain, 85 for Bulgaria, 216 for Estonia, 424 for France, 342 for Holland, 93 for Yugoslavia, 128 for Lithuania, 225 for Germany, 105 for Romania, 303 for the United States, 170 for Switzerland, 316 for Sweden and 258 for Italy.

Only in Bulgaria and Yugoslavia were the tax burdens on the population lower than in Poland.

BANKS AND CURRENCY Initially, several currencies were in circulation: German marks, Austrian crowns, Russian roubles, Polish marks, German paper roubles of the Eastern Bank, iron kopek coins, eastern marks and Ukrainian hryvnias and karbovanets. Although, under a December 7, 1918 decree, the Polish mark became Poland’s sole legal tender, multiple currencies were still used until 1920 and the process of exchanging them into the Polish mark continued until 1923. At the beginning of 1919, the treasury minister brought about a decree on the introduction of a new Polish currency called the lech. However, a month later the parliament decided to give the new currency the traditional name zloty.

The process of establishing the Bank of Poland, which acted as the central bank, and issuing the zloty based on gold reserves took four years.

State banks, established in 1919, played an important role in the economy. Polski Bank Rolny (Polish Agricultural Bank) was responsible for financing the agricultural reform, the processing industry and agricultural exports. Pocztowa Kasa Oszczędności (Postal Savings Bank) played the role of a universal bank for savings deposits of the population. Polski Bank Komunalny (Polish Municipal Bank) was responsible for providing credit to local governments. Municipal savings funds organised by local governments offered small loans and collected small deposits. Of course, there were also private banks, operating as joint stock companies and currency exchanges. The Polish Bank Association was established in 1920 to represent the banking sector in relations with the government. Only two institutions survived of the large number of credit cooperatives which had existed before the war: Bank Związku Spółek Zarobkowych (Bank of the Association of Polish Companies) and Centralna Kasa Spółek Rolniczych (National Central Fund for Agricultural Cooperatives), composed of around 1,400 rural credit unions with more than 300,000 members.

WHAT WAS TO COME

NATIONAL BUDGET AND PUBLIC FINANCES

The process of integrating Polish lands was not fully completed before the outbreak of World War II. The 15-year plan adopted in 1938 for the years 1939-1954 (the economic year started on April 1 and ended on March 31) was designed to serve this purpose. In the first three years (1939-1942), the needs of the armed forces were to be met through the expansion of the arms industry. The years 1942-1945 were to see the full integration of the transport system: railways, roads, inland waterways, the further development of the Gdynia harbour and civil aviation. Many of the problems related to rural areas and agriculture were to be solved in the years 1945-1948, like for example raising and diversifying agricultural production, field drainage systems, land consolidation, and the development of education and culture in rural areas. But the main goal was to diminish disparities in living conditions between the rural and urban populations. The years 1949-1951 were to be a period of urbanisation, industrialisation and improving the sanitary condition of cities. And in 1951-1954 the process of removing differences between individual parts of Poland was to be fi• nalised. History took its own course, though.

The process of unifying the organisations of state financial authorities inherited from the partitioning powers began in 1919. The unification

Compiled on the basis of A. Jezierski, C. Leszczyńska, “Historia gospodarcza Polski” (Economic History of Poland) – Key Text 2006

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THE BALLROOM OF THE ROYAL CASTLE IN WARSAW THE VENUE WHERE “POLISH MARKET” CELEBRATES ITS ANNUAL PEARLS OF THE POLISH ECONOMY GALA

ROYAL CASTLE

THE

100 YEARS

OF INDEPENDENCE We would like to invite you to a gala concert marking the centenary of the regaining of INDEPENDENCE BY POLAND, on December 11, 2018 at the Royal Castle in Warsaw, which will be combined with the 16TH PEARLS OF THE POLISH ECONOMY and 13TH HONORARY PEARLS AWARD CEREMONY.

THE ROYAL CASTLE IN WARSAW, DECEMBER 11, 2018

OUR PATRIOTISM The first Pearl for the promotion of patriotic values went to Jan Ołdakowski, founder of the Warsaw Uprising Museum (first on the right)

From left: Prof. Henryk Skarżyński, Grażyna Jaskuła, Henryk Strzelecki, Krystyna Woźniak-Trzosek, Wojciech Kilar, Jan Ołdakowski

On December 11, 2018, during “Polish Market’s” Pearls of the Polish Economy Gala ceremony at the Royal Castle in Warsaw, the results of the Pearls of the Polish Economy ranking will be announced for the 16th time. For the 13th time, this will be accompanied by the awarding of Honorary Pearls, which are granted to the most outstanding personalities in the fields of economy, culture, science, to promotion of social and patriotic values. Maciej Proliński looks back on the winners of some of the Honorary Pearls granted for the promotion of patriotic values, whose names will clearly serve as guiding lights for future generations.

I

sn’t it inspiring to note that the business world feels that there is a connection between the economy and patriotic values. Under communism, Poles were made to feel ashamed of their own heritage.

And today, from their peers in Europe, they have learned that you can be proud of your heritage. The life of ordinary Polish citizens - both on the social and political level, especially in the 19th and 20th centuries- took them through considerable historical turmoil.

The memory of the Warsaw Rising of 1944 against the Nazis, ignored by the communist propaganda, was passed down from generation to generation until Poland shed the Soviet yoke in 1989. You cannot overestimate the importance of that event for the Polish identity today. The Warsaw Rising Museum built in Warsaw in tribute to its heroes is a modern museum and research facility targeted at young people. Its director, Jan Ołdakowski, was awarded our first Honorary Pearl in the field of promoting Polish tradition and patriotic values ​​in 2006.

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In 2007, another Pearl in this category was awarded to Ryszard Kaczorowski - the last Polish President-in-Exile. Kaczorowski (born 1919), was arrested in 1940 for organising clandestine scouts units in the Soviet-occupied zone. The Soviets commuted the original death sentence to ten years of labour camp. He was to be dispatched to the infamous Kolyma gulag, from which no-one returned alive. His life was saved by the Sikorski-Maisky pact, under which the Polish government-in-exile won Stalin’s assurances that Poles in the USSR would be released from prisons and labour camps and allowed to form an army to join the Allied forces. Kaczorowski was one of them. He followed the entire combat trail from the African campaign to Italy to the western front. After the war he lived in exile in London but he participated in all important historical ceremonies. On December 22, 1990, on the day Lech Wałęsa was sworn in President, he presented to him the insignia of presidential power. He died tragically on April 10, 2010 in an air crash near Smolensk

THE PEARL FOR THE PROMOTION OF PATRIOTIC VALUES in Russia, on the way to the 70th anniversary commemorative ceremony of the Katyn Massacre perpetrated on Stalin’s orders on thousands of Polish POWs in 1940.

In 2009, the Pearl went to Tadeusz Mazowiecki (1927-2013) - the first non-communist prime minister after 1945, the Knight of the Order of the White Eagle, a participant of the most important events in the recent history of Poland. "When I think of a man of honour who had the courage to have his own views in communist Poland, I say - Tadeusz Mazowiecki. When I think of Solidarity, I say - Tadeusz Mazowiecki.

When I think about freedom, I say - Tadeusz Mazowiecki. When I think about democracy, I say - Tadeusz Mazowiecki. When I say Tadeusz Mazowiecki, I think - a genuine human being," politician Adam Szejnfeld thus poignantly described him at the ceremony. Mazowiecki, whose appearance at the “Polish Market” gala met with a standing ovation, told the magazine: "Twenty years ago when I took the post of prime minister in the first non-communist cabinet, we faced a huge challenge. Poland had enormous external debts, runaway inflation and there was a need to transform the economic system. These three things created great hardships. There were more difficulties than we had imagined, but Poland succeeded. There was no alternative to the direction of economic transformation we took. There was no better solution. We could not predict all the difficulties - some of them turned out to be more serious. Social cost was also greater, but the direction was correct. I think that's why none of the following governments tampered with it."

In 2014, our Pearl was received by Cardinal Henryk Gulbinowicz, the Archbishop of Wrocław between 1976 and 2004, author of many works on moral theology, ethics, ecumenism and history of eastern Poland. Under communism, he actively supported the underground Solidarity movement. He is famous for his help in hiding a sum of 80 million Polish zloty raised from contributions by Solidarity members from the communist security police. "My mother told me, if you get something in life, try to put it to good use. In 1999, I witnessed Wrocław celebrations of the 1000th anniversary of its diocese. Now I want to hand over the papal signet associated with this event to “Polish Market,” he said during the gala ceremony.

History affects the economy, because it dictates where we stand at the moment, how we have found ourselves here, where the economic situation comes from, and what situation the whole country is in.

However, the economy is an important element in building the future.

Just as the economy needs vision and strategy, when it comes to national heritage, we need to think about what we want Poland to be like, for example, in twenty, forty years from now. And in this, the voice of a witness is always important. The fate of anti-communist resistance fighters of the Polish Underground State ("Cursed Soldiers") who after the Soviet invasion did not lay down their arms to take up the fight against the next occupier, is a topic that requires special commitment.

In 2011, the award went to one of the "Cursed Soldiers" - Jerzy Woźniak (1923-2012) - a soldier of the Home Army and WiN, a medical doctor first sentenced to death, then to a long prison term for his activities in the anti-communist resistance. In 2012, another of the anti-communist fighters Franciszek Tomasz Ludwin (born 1920) received the award. Until July 1944 Ludwin, whose nom de guerre was A. HART acted, as the head of intelligence of a resistance Home Army District. From August 1944 until April 1945, he was in hiding in Lublin and Czemierniki near Radzyń, to avoid arrest by the Soviets.

Memory of such heroes and events they took part in is kept alive by the Institute of National Remembrance. Krzysztof Szwagrzyk, Ph.D., deputy president of the Institute, received the Patriotic Pearl award last year. He said: "Together with my team, we do special work, which will take years to complete. We are looking for places where the remains of our heroes were buried in secret, like the Meadow next to the wall of the Powązki Military Cemetery in Warsaw, and dozens of other locations

Honorary Pearl for the promotion of patriotic values awarded on the 25th anniversary of the return of democracy in Poland went to Henryk Cardinal Gulbinowicz. throughout Poland. We want to prevent modern Polish society from forgetting about them. For though there was not a trace left of them, we will find them and bury them."

In 2015, the winner was another Catholic priest. Father Wiśniewski is a well-known academic, a Dominican, public and former anti-communist activist. In the 1980s, he organised a series of meetings that promoted the creation of independent social structures. He was placed on the list of sixty Polish dissidents singled out as the most dangerous by the communist regime. Father Wiśniewski was awarded two major state distinctions. He writes articles for the “Tygodnik Powszechny” liberal Catholic magazine.

There may be around 20 million Poles scattered around the globe, half of them living in the US, but there are those who say that not enough is done to hold them together. No clear goals have been set for their activity, and there are no strong institutions that would set these goals and organise joint actions for them. It seems that TVP Polonia, the international Polish-language channel produced by the country’s public television network, can play an important role here. TV Polonia received the Pearl award in 2016. Editor-in-chief Magdalena Tadeusiak-Mikołajczak told “Polish Market: ”We have a term – Polonia – to denote all those who are of Polish origin, who feel Polish, but were born outside Poland. These people have links with Polish tradition and national culture in the second or earlier generations and identify themselves with Polish affairs to a varying extent. And there are those Poles who live outside Polish borders not because they moved anywhere but because borders were shifted after WWII. In Lithuania, Belarus and Ukraine, where they live, they make it clear they do not feel they are part of the Polonia. The mission of TVP Polonia is to bring together all Poles who live beyond its borders, to promote the use of the Polish language, to provide education, and to inform about problems faced by Poles living abroad, and about their successes."

In 2017, the Patriotic Pearl was also awarded to the Reduta Dobrego Imienia Foundation - Polish Anti-Defamation League. It was set up to initiate and support activities aimed at correcting untrue information about the history of Poland, especially the course of World War II, the participation of Poles in it, the attitude of Poles to Jews, and the subject of German concentration camps. In addition to this, the Reduta's goal is to promote knowledge about Polish history and culture and the country’s present day. It also aims to counteract racism and xenophobia di• rected against Polish citizens, regardless of origin.

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

100 YEARS OF INDUSTRIAL PROPERTY PROTECTION IN POLAND Shortly after Poland regained independence, on 13 December 1918, Marshal Józef Piłsudski issued a decree on the establishment of the Patent Office of the Republic of Poland, thus creating one of the first public institutions to come into being after 11 November 1918. Ensuring appropriate conditions for the development of the reborn state was a matter of utmost importance for the government of the Second Polish Republic. The authorities gave priority to ensuring legal protection to intangible assets and, consequently, supporting Polish inventors and designers, as well as guaranteeing their legal security in trade. The same legislation also laid down the basic operating framework for the patent attorneys as professionals authorised to represent parties in proceedings before the Patent Office. The following article was written for “Polish Market” by ALICJA ADAMCZAK, PhD, President of the Polish Patent Office.

T

he rapid development of technology and inventiveness as well as the entire economy at that time would not have been possible without the regulation and unification of Polish law, including invention law and related legislation, across the formerly partitioned Polish land. Consequently, early into 1919, in addition to structural and organisational foundations for the Patent Office, the Chief of State issued three more decrees being the first pieces of modern legislation which reflected the needs of Polish society as regards the protection of industrial property (invention patents; the protection of drawing designs and models, and the protection of trademarks). In the very same year, Poland acceded to the Paris Convention of 1883, the first international act governing the protection of industrial property. The Convention has become a worldwide basis for treaties and bilateral agreements in this field. This means that, over the last 100 years of our statehood, the intellectual output of Polish inventors, scientists and authors of technical and design solutions has

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been continuously protected, even though the scope and forms of this protection have constantly undergone changes.

During its 100 years of continuous activity, the Polish Patent Office granted more than 220,000 patents for inventions and registered over 60,000 utility models, 23,000 industrial designs and around 300,000 trademarks. In total, during this period, over 1,200,000 applications were submitted to the Office.

The challenge nowadays which the Patent Office is trying to address is to run an efficient national system for the protection of exclusive rights, as a necessary condition for the development of innovation and a modern and competitive knowledge-based economy. Consequently, such a system, supporting both scientific and business communities, determines the growth of competitiveness and market advantage, while contributing to the creation of new solutions which stimulate further scientific and technological progress. The industrial property law currently in force in Poland is fully harmonised with international regulations, which guarantees our country's full participation in

INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

intellectual property protection systems, both on a global and regional scale.

Every year the Polish Patent Office receives around 20 thousand applications for inventions, utility models, industrial designs and trademarks. Currently, over 300,000 exclusive rights remain in force in Poland, including more than 21,000 patents granted domestically and 46,000 validated European patents.

In its work, however, the Patent Office is not restricted to ensuring the protection of exclusive rights, as it also provides patent information, as well as undertakes many initiatives dedicated to broadly defined social education and awareness-raising as regards the role of innovation in a modern economy. As part of its statutory tasks, the Office also keeps a list of patent attorneys who provide all-round legal assistance to persons and entities dealing on a daily basis with issues related to industrial property protection.

Patent attorneys are authorised to act as representatives of the parties in proceedings before the Patent Office, administrative courts and other courts and authorities adjudicating on industrial property matters.

The 100th anniversary of Poland's regaining independence and laying foundations for a modern, efficient industrial property protection system is a unique moment to which the Patent Office wishes to draw popular attention by organising a series of events aimed at broadening social awareness and knowledge in the field of intellectual property protection, as well as the importance of exclusive rights for the development of an innovative and competitive economy. Within this initiative, the Office is organising a number of conferences, seminars and symposia devoted to intellectual property and releasing many publications to promote the idea of broad legal protection for the authors of innovative scientific, technical and design solutions. All

jubilee events are being held under the honorary patronage of the President of Poland Andrzej Duda.

One of the recent undertakings organised by the Office as part of the celebrations commemorating the 100th anniversary of Poland's regained independence, as well as the 100th anniversary of the establishment of the Polish Patent Office, is the exhibition of industrial inventions and designs titled “Poland In.� The exhibition aims to showcase the vital, most modern and often iconic achievements of the Polish technical and design school of thought. The presented projects focus on solutions which facilitate or significantly improve the quality of our everyday life in basic areas such as housing, transport and communication, as well as

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

THE CHALLENGE NOWADAYS WHICH THE PATENT OFFICE IS TRYING TO ADDRESS IS TO RUN AN EFFICIENT NATIONAL SYSTEM FOR THE PROTECTION OF EXCLUSIVE RIGHTS, AS A NECESSARY CONDITION FOR THE DEVELOPMENT OF INNOVATION AND A MODERN AND COMPETITIVE KNOWLEDGE-BASED ECONOMY. taking care of health and fitness. On the one hand, these are products which have turned out successful and earned a name on the domestic and international markets, winning the world's most important awards, and on the other hand projects that have just entered the market, many of them offering groundbreaking, surprisingly innovative technological solutions, often futuristic in appearance, yet highly functional and responding to crucial problems and expectations of society. We should also stress that the design solutions presented at “Poland In” were created by authors who follow the strong traditions of Polish industrial design, a field which for many years has enjoyed a worldwide reputation for its ability to harmoniously synthesise input materials, innovative construction solutions, original aesthetic forms and excellent functionality. By organising this exhibition we would like to emphasise that despite Poland's turbulent history of the last 100 years, the first decades of which were extremely difficult for the entire Polish nation and did not encourage any technological or cultural growth, Polish technical and design thought lives up to the standards set by the global leaders of innovation.

“Poland In” also features a historical accent hailing back to the interwar period – a reconstructed copy of the invention by Prof. Ignacy Mościcki, President of Poland in the years 1926-1939. It is one of the first ever air-purifying machines for indoor use and the world's first device serving the function of smog removal. This invention was created to aid the respiratory disease of Marshal Józef Piłsudski, to whom the machine was dedicated, so that he could breathe some fresh mountain air without leaving Warsaw. In 1932, the Patent Office of the Republic of Poland granted a patent for this solution under number 18202. This year, under

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the auspices of the Patent Office, the invention was reconstructed by a Polish manufacturer of innovative air purifiers, using cutting-edge Polish technologies in cooperation with the Centre for Smart Growth. The reconstructed copy will eventually be put on display at the Royal Castle in Warsaw as one of the key elements of President Mościcki’s office, which is to be recreated as well.

We set up the “Poland In” exhibition at the turn of October at the headquarters of the World Intellectual Property Organisation (WIPO) in Geneva during an important moment for WIPO itself, i.e. the General Assembly attended every year by diplomatic corps and other representatives of 191 member states. The exhibition was officially opened

by Director General of WIPO Dr. Francis Gurry, and Deputy Prime Minister and the Minister of Culture and National Heritage Prof. Piotr Gliński.

Innovative technical solutions and unique design projects that we have the pleasure to present at “Poland In” but also those which the Patent Office encounters in its daily work, support the image of Poland as having enormous potential as a country which attaches special importance to the use of intellectual property, currently the key factor determining sustainable economic and social development. Therefore, to celebrate this double anniversary – 100 years of regaining independence and 100 years of the Polish Patent Office – we would like to wish all patent creators and entrepreneurs that the system of legal protection of intangible assets developed over those years fosters a climate conducive to the continuous development of creativity and innovation and strengthens the sense of market security, while promoting competitiveness and providing ex• tensive opportunities for trading in patent rights.

Economy

POCZTA POLSKA IS BACK IN THE GAME

On October 18 Poczta Polska celebrated the 460th anniversary of its existence. It was an important day for all postal workers, a time to reflect on how well they implement the guidelines set out by the founder of Polish postal services: King Sigismund II Augustus. In his intention, Poczta Polska was meant to allow the royal court, Parliament, and state administration to communicate with the public and to offer ordinary people a chance to send letters and benefit from other services provided by post offices. But how is this mission being implemented right now?

T

he deregulation of postal services in all European countries initially resulted in the segmentation and a dose of anarchy in this previously orderly market. Transitional periods granted by the European Union in the name of protecting consumer service standards, even for such giants as Deutsche Post or La Poste were not enough to secure their positions against the arrival of predatory competition. So what about smaller operators - like Poczta Polska?

We take a look at how the Polish national operator has coped with the changes.

For quite some time, it seemed that a market formerly managed by a state-owned operator was crumbling. First, telecommunications services were liberalised, a moment later a commercial banking market was created, absorbing the servicing of a large part of payments and financial transfers, soon after the explosion of courier services occurred, and finally the world of the Internet revolutionised the way people and institutions communicate. New specialised companies, new technologies and fresh capital appeared with each of these waves. If the formerly dominant operators wanted to defend their former positions, they were bound to fail. Their advantages in the form of tens of thousands of trained and committed postal workers, their ethos, the networks of thousands of outlets all over the country, their systems and procedures ensuring security to clients, turned out to be a burden. Meanwhile, their competitors targeted the most profitable market segments, the most lucrative services and were not burdened with the responsibility of providing a public service.

For several years Poczta Polska went through a stage of experiments and searching for the optimum solution, with varying degrees of success.

A few years ago, the prevailing opinion was that the entire Polish market should be deregulated and privatised, that the public company Poczta Polska should also be privatised. However, private operators

did not fulfil their role in many types of postal services, especially in providing channels of communication between the state and citizens and where such activities required a special level of responsibility and professionalism.

As a result, the concept of Poczta Polska as a national postal operator, which provides services to over 90% of Polish citizens, has been revived.

The infrastructure managed by Poczta Polska covers a network of over 7.5 thousand outlets, sorting centres across the country, and a fleet of over 5,000 vehicles. Of course, the most important asset are its nearly 80,000 employees. In 2017, the concept of logistics network development was elaborated to match the growing number of packages in both domestic and foreign traffic.

“Poczta Polska's strategy is based on three pillars: parcel and courier services, international services as well as financial services and support services for state purposes. A series of undertakings carried out in the areas of the company's operation has already brought concrete results.

Wage increases for employees and implementation of ambitious plans in the development of the crucial parcel market, are important elements of our strategy,” says Przemysław Sypniewski, President of Poczta Polska.

This strategy is already bearing fruit. In 2017, for the first time in a few years, Poczta Polska recorded an increase in revenues. Investments in the new logistical infrastructure, as well as the expansion of the network of outlets and growing employment - these are the main directions of activities pursued by Poczta Polska. The past two years have demonstrated that the new strategy is a correct one. This is accompanied by a technological leap - computerisation of logistics and outlets, which provide customers with access to electronic payment services and free internet. Employment is growing. Agreements reached with trade unions and the improved financial condition of Poczta Polska enable • a steady increase in wages.

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

WITHOUT US, THERE WOULD BE CHAOS President of Statistics Poland DOMINIK ROZKRUT talks to “Polish Market's” Jan Sosna about the Office’s one hundredth anniversary and present activities.

It is amazing that Statistics Poland was set up even before the official proclamation of an independent Polish state in November 1918. What was the reason for that?

This can easily be explained. World War I was over and for Polish political leaders it was clear that some form of an independent Polish state would be formed on the lands which were occupied for over 120 years by the three partitioning powers - Russia, Prussia and Austria. In each of the occupied zones, even basic physical measures were different.

Therefore, the gathering of a unified database of information on the territorial, population and economic potential of the emerging state was one of the conditions for its successful formation and survival, and then for its consolidation. At the beginning there were five different currencies in this country, different systems of measures and weights, and even different time zones. In this situation, it is a miracle that the first “Yearbook of Statistics of the Republic of Poland” was published in 1921, when the struggle for the country’s borders was not over yet.

PM

PM

This really was phenomenal, just like during World War II, when statisticians were working for the Polish government in exile (in London) and thanks to that, just a few months after the war, leading economic strategists Eugeniusz Kwiatkowski and Czesław Bobrowski were able to present the “Three-Year Reconstruction Plan for the 1946-48 Period." But soon things turned pretty sour, didn’t they?

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THE INFORMATION PUBLISHED BY STATISTICS POLAND ALWAYS INCLUDES EXPLANATIONS REGARDING THE CONTENT OF PUBLISHED INDICATORS AS WELL AS DATA SOURCES AND COUNTING METHODS.

Statisticians continued to work in earnest, but the communist authorities secretly censored and manipulated the results of their work, and former factual publications were replaced by communist propaganda.

And although those times have passed, it hasn’t been easy to regain the status of the profession which is normally expected to enjoy the trust of the public…

"Regain" and "win" are probably the right words to use, because it is a process that is still going on. The Act of 1995 defined public PM

statistics as "an indispensable element in the information system of a democratic society, providing state bodies, public and local government administration, the economic sector and society with official statistical data on the economy, demography, social affairs and the environment." A key point in this piece of legislation was a guarantee of statistical confidentiality. After Poland’s accession to the European Union, we also had to adopt slightly higher public information standards.

I must say that, while in principle we have already got the authorities used to the confidentiality of the individual data we collect, things do not always work well the other way round. All the more so that the ease of using information systems leads to the assembling of various non-integrated databases in individual institutions. Many inconsistencies are prevented through the participation of Statistics Poland representatives in the drafting of new legal regulations at the level of parliamentary work. However, not all interests can be reconciled. At the end of the day, two things are proof of the high quality and reliability of our work. Firstly, the information published by Statistics Poland always includes explanations regarding the content of published indicators as well as data sources and counting methods. It is worth reading these to avoid any possible misunderstandings. Secondly, …

PM

Let me guess - objectivity, because your statistics do not always make those in power happy. Thank you for the conver• sation.

INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

100TH

ANNIVERSARY OF STATISTICS POLAND Statistics Poland was established by the Regency Board on July 13, 1918. Under its decree, the gathering of all official statistics became the responsibility of the Office. Over the past century, the statistics act took different forms and underwent numerous changes. The first one was adopted in 1919, making Statistics Poland a high-level authority of administrative statistics.

The existing Act of June 1995, amended several times, provides the legal foundation for the functioning of the Office.

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30 SEPTEMBER 1921 - Poland’s first Population

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10 NOVEMBER 1921- Publication of the first “Yearbook

Census of Statistics of the Republic of Poland”

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21-24 AUGUST 1929 - Organisation of the 18th Session

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1 DECEMBER 1930 - Publication of the first “Statistical

of the International Statistical Institute Atlas of the Republic of Poland”

•

SEPTEMBER 1939 - Following the outbreak of WWII, in November 1939, the Germans began recruiting personnel necessary to run a statistical office under the authority of the General Governor. On 13 September 1940, the Statistisches Amt was established in Kraków. Although Polish statistical institutions did not function in occupied Poland, the task of preparing and publishing statistical data on Poland was taken on by the Polish Government-inexile. In December 1941, the English edition of the “Concise Statistical Yearbook of Poland” came out in London, covering the period from September 1939 to June 1941.

The London Government also issued the “Statistical Atlas of Poland.”

The official document concerning the establishment of Statistics Poland

Siedziba Headquarter

The new headquarters at 208 Niepodległości Avenue in Warsaw. The building was constructed on an innovative three-arm plan, many years before a similar solution was used at the UNESCO headquarters in Paris.

Główny Urząd Statystyczny

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

• • •

12 MARCH 1945 - Resumption of Statistics Poland 14 FEBRUARY 1946 - Summary Population Census 1948 - Presentation of results of an architectural competition for the headquarters of Statistics Poland

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1951-1955 - Suspension of general publication activities of Statistics Poland

In the years 1949-1955 - during a period of intensified political repressions and the establishment of a Soviet-style command economy – unfavourable changes affected Polish Statistics. The politicallydriven domination of planning over statistics caused a departure from the methodological principles of statistical surveys which used to be adapted to the planning approach. One example was the inclusion of a State Commission of Economic Planning announcement on the implementation of the National Economic Plan in the “Statistical Yearbook of 1950,” which was inconsistent with the impartiality and objectivity principles. In the following years, information and publishing activities of Statistics Poland were entirely suspended. In 1956, only the “Statistical Tables 1953-1954” were issued “for official use only without the right of publication”. Formally, Statistics Poland regained its methodological autonomy following the Act of March 1952 regarding changes in the scope of activities of the executive authorities in the field of national statistics. However, the actual improvement of statistical research did not happen until 1955. The “Statistical Yearbook of 1955” was issued without any confidentiality clauses.

Communication with data users has changed significantly over the century of the Office’s operation, and the last two decades has been a period of a genuine revolution in the field of dialogue and information exchange. The way information transfer is conducted is just as important as the content being shared, especially at times when fast and friendly access to data is expected. In addition to the fact that the Internet has become the basic channel for data sharing, communication with the use of social media is gaining more and more importance.

Users of Facebook, Twitter, LinkedIn and YouTube can respond to the published results of statistical surveys and information about initiatives undertaken by Statistics Poland.

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29 JUNE 1995 - Adoption of the law on official statistics by the Polish Parliament.

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Transfer of the Statistics Poland website to the government domain

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1 JANUARY 1999 - Completion of negotiations on Poland’s membership of the European Union in the field of statistics

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MAY 2004 - Inclusion of Statistics Poland in the European Statistical System

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1 JANUARY 2009 - Introduction of electronic reporting on

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1 JULY-31 DECEMBER 2011 - Statistics Poland chaired the

A significant part of the Statistics Poland’s publications was marked “confidential,” “official” and “for internal use only” which meant the information was practically inaccessible to readers. Restrictions on the dissemination of nearly 20,000 publications were abolished in 1989.

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18-20 APRIL 2012 - Congress of Polish Statistics in Poznań

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26-29 JUNE 2018 - Organisation of the European Conference

•

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10-12 JULY 2018 - Organisation of the 2nd Congress of Polish

APRIL 1955 - Establishment of the Department of Statistical Technology, the aim of which was to modernise research development

•

10 DECEMBER 1967 - Launching of the first computer ICL1905 at Statistics Poland

From the beginning of its operation, Statistics Poland implemented solutions facilitating data processing. For the purpose of the first censuses, counting and analytical machines were purchased. The outbreak of WWII interrupted the technological development of statistics, destroying the Office’s achievements. In the 1950s, the use of computational and analytical machines, as well as accountancy and accounting machines became widespread, which made it possible to improve the processing of statistical research results. In 1955 the Department of Statistical Technology was established, the aim of which was to modernise the development of statistical research. It was possible mainly thanks to the use of computers. In 1966 all statistical offices were included in the common telex network. The 1970s marked a technological breakthrough for Statistics Poland and the statistical offices – new computers and data recorders were purchased, as well as the first printers and systems allowing optical character recognition appeared. The mass introduction of PCs in the 1990s was another milestone in the development of information technology in statistics.

With the introduction of the Internet, Statistics Poland quickly began to use it for contacts with users.

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Working Group of the Council of the European Union on Statistics marking the 100th anniversary of the Polish Statistical Association on quality in official statistics (Q2018) in Kraków Statistics in Warsaw marking the 100th anniversary of Statistics Poland

24 MAY 1967 - Establishment of the Board of Mechanisation and Automatisation of Statistical Publications (now Centre of Statistical Information Technology)

•

statistical surveys and statistical offices’ specialisation

PEOPLE Those who have worked for the Office form the basis of its history.

From the very beginning, qualified staff has been its pillar. The number of employees varied depending on historical circumstances and the development of statistical surveys role. In 1923, a team of 516 was employed full time at Statistics Poland. At the end of the 1930s, the number of employees was around 500-600. During WWII, qualified staff was lost. In April 1945, the reopened office employed a team of just 31. The number of workers increased from month to month and at the end of the year, there were 12 departments at Statistics Poland, in which over 300 people were employed. Employment has grown steadily.

Currently, Statistics Poland is the workplace of a team of 850.

30 JULY 1981 - Launching of the first Polish mini-computer Mera-9150 at the Electronic Centre of Statistics Poland in Warsaw

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29-31 OCTOBER 1990 - Signing of a declaration on cooperation between Statistics Poland and Eurostat

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1993 - Launching of the Statistics Poland website Statistics Poland employees, 1923

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

TO BE USEFUL TO THE NATION NOT President EWA MAŃKIEWICZ-CUDNY

This appeal by the writer, politician and economic activist Stanisław Staszic is cited by the Polish Federation of Engineering Associations, whose predecessor, the Chief Technical Organisation was formed as early as in December 1945 in Warsaw by a group of engineers.

However, it is the Polish Polytechnic Society, founded by Józef Bem in Paris in 1835, that is considered the first such association of the Polish technical community.

A

t that time, Poland was partitioned, but in each occupied region there were people who were interested in technology and understood the influence of the industrial revolution on society and the significance of technical inventions.

The increasing number of such people contributed to the integration of the technical community. Technical societies sprouted up in Lwów, Kraków, Poznań and Warsaw, which saw the establishment of the Association of Technicians in 1898. During a meeting in 1901, the organisation decided to build “its own edifice for the purposes of the Association, as an institution being the focus of its members’ social lives and fulfilling scientific and technical tasks.” A committee was established to design the building consisting of the Council representatives: Piotr Drzewiecki, the first Mayor of Warsaw in Independent Poland, Aleksander Rosset and prominent architects: Władysław Marconi and Bronisław Rogóyski, and another committee was formed to procure the funds necessary to purchase a development plot and proceed with the construction work.

It began in 1903 and the building was ready in 1905 (Krakowski Dom Technika – Technical House in Kraków was constructed in 1906). Unfortunately, Zygmunt Otto’s sculptures on the pediment were destroyed during the Second World War, but the cartouche at the top of the building now known as the Technical House in Warsaw (Warszawski Dom Technika), featuring engraved edges and the caption Artibus Technicis MCMIV, was successfully renovated.

In 1912 the Council of Conventions and Associations of Polish Technicians was established in Kraków and in 1924 it was transformed into the Federation of Polish Technical Associations

Jerzy Bojanowicz with its registered office in Warsaw. It consisted of 18, and later of 25, associations. The National Organisation of Engineers of the Republic of Poland was established in 1935 and one year later saw the creation of the National Organisation of Technicians’ Associations of the Republic of Poland.

During the Second World War engineers and technicians were busy making weapons for the Polish underground resistance and preparing the technical side of sabotage actions. Many of them served in the armies of the Allied Forces, units of the Polish Armed Forces in the West and in the Polish Army. In exile, they established numerous Associations of Polish Technicians, some of which are still active today.

After liberation, the regional, industry-wide and multi-discipline technical organisations in Poland were reactivated. New associations were being set up, including, in 1945, the National Technical Society in Łódź and the MultiDiscipline Association of Engineers and Technicians in Kielce.

The associations federated under NOT (Chief Technical Organisation), which in 1948 took over the Technical House in Warsaw from the Association of Polish Technicians in Warsaw, represented various branches of technology and sectors of the economy. They also protected the interests of all engineers and technicians, focusing on their participation in the reconstruction of Poland after wartime destruction and then the development of industry as well as in the teaching and training of new engineers. The Chief Technical Organisation initiated the establishment of several universities of technology in Poland.

In 1989 the Chief Technical Organisation became the Polish Federation of Engineering Associations (FSNT-NOT). It has focused on improving the innovative potential of the Polish

economy, safeguarding the prestige of the engineering profession, providing training opportunities and representing the interests of engineering communities before the authorities.

Since December 2008, the President of the Board of Directors has been Ewa MańkiewiczCudny. The organisation operates 39 Technical Houses and is made up of 39 Engineering Associations with nearly 100 thousand members and 45 field organisational units comprising the branches of the federated associations. The Federation issues Engineering Cards, which confirm engineers’ skills and qualifications as specified

by FEANI; and it promotes the title of European Engineer (EUR ENG) in the Polish technical community.

The SIGMA-NOT publishing house, established in 1949, has become Poland's major publisher of professional technical journals. It is the publisher of 33 journals, including “Przegląd Techniczny” established in 1866 (since 1989 its editor-in-chief has been Ewa MańkiewiczCudny), which since 1994 has organised a vote for the “Golden Engineer” title among its readers.

Poland’s accession to the European Union has contributed to the integration of technical communities from Poland and Polish communities abroad. Even before, from as early as 1996 this integration has been fostered by the “Polacy Razem” (Poles Together) symposia. After 5 editions (in 2010), the symposium was transformed into the World Convention of Polish Engineers as part of the cooperation between the Polish American Engineers Association and the Warsaw University of Technology. The 4th World Convention of Polish Engineers and the 26th Congress of Polish Technicians will take place in June 2019 in Kraków under the national patronage of the President of the Republic of Poland Andrzej Duda in honour of the Centennial of Independence.

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

As the AGH University of Science and Technology in Kraków is getting ready for its centenary next year, Rector Professor TADEUSZ SŁOMKA talks to “Polish Market” about the University’s research and development activities.

FOCUS ON INNOVATIVE TECHNOLOGIES

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

Next year, the AGH University of Science and Technology (AGH) will be celebrating its 100th anniversary. In the initial period and after World War II, the AGH operated mainly to meet the needs of the developing mining and metallurgical industry. At present, it is a centre of interdisciplinary research and innovative technologies. What are the spheres where you are the most successful?

Since its inception, the AGH has fulfilled its motto “Labore create, labori et scientiae servio” (Created in labour, I serve labour and science). This means in practice that solutions developed at the university should serve first of all the Polish economy and Polish industry. One hundred years ago the AGH provided education for future engineers, in particular specialists in mining and metallurgy, to meet the needs of the developing economy. New faculties were opened in the following years and the university started to produce geologists, land surveyors, electrical engineers and engineers specialised in well drilling. Today, apart from these disciplines, the AGH is also rapidly developing education and research in the area of materials engineering, environmental engineering, management, physics, electronics, power engineering, automation and robotics, mechatronics, acoustical engineering, biomedical engineering and nanotechnology. Owing to the recent rapid technological progress, the disciplines which now dominate are those associated with information technology and telecommunications. It is in these spheres that our scientists have the most significant achievements to their credit. The research and projects conducted at the AGH are increasingly interdisciplinary. One example is “LOOP – Landing Once on Phobos,” a project carried out by scientists of the Faculty of Mining and Geoengineering AGH University of Science and Technology in conjunction with the Space Research Centre Polish Academy of Sciences. The research findings will be used for the purpose of a planned lander mission to one of the Martian moons. The research carried out at the AGH is part of the European Space Agency’s project. We also conduct interdisciplinary research in the area of medicine.

Last year, a middle ear prosthesis developed by our scientists was implanted in a patient for the first time. This year, a multimodal heart phantom was designed at the AGH and is now used by hospitals in our city.

The IT sector is also developing rapidly and successfully. At the Faculty of Computer Science, Electronics and Telecommunications we launched this year Poland’s first fully functional university mobile network. It operates on the same basis as networks of commercial operators and has received a licensed frequency from the Office of Electronic Communications. The newly opened lab is used by AGH scientists and students to test the latest solutions deployed by companies with 5G technology in mind.

PM

The latest inventions of AGH scientists seem very interesting: a ukulele-playing robot, innovative heart phantom, antimicrobial railing system and so on. What mechanisms do you apply to achieve innovation in such diverse fields.

There are quite a few mechanisms helping our scientists and students to achieve better and better results, also in the international arena. It is worth mentioning that the AGH has again turned out to be Poland’s best technical university in terms of the number of grants received from the National Science Centre, with 76 applications selected for funding. The combined value of the grants exceeds PLN30 million.

PM

Support for students’ research groups also produces great results. Every year we run a competition called “Rector’s Grant” for funding for students’ scientific research projects. This results in such spectacular projects as for example an electric motorbike designed from scratch by students of the E-Moto research group and the first solar boat developed at a Polish university.

The latter has been designed by members of the AGH Solar Boat research group. We view financial support for students’ projects as very important. This year, we provided a total of PLN700,000 in funding for over 100 various projects.

Our cooperation with companies, business and industry is also very effective. It greatly contributes to raising our innovation performance. The AGH’s cooperation with business and industry is now one of the driving forces behind our activity.

There are mutual benefits. Our agreements result in the joint implementation of research and development projects, the exchange of staff between the university and the companies, traineeships and work placements for students, and a wider range of courses conducted by company specialists. Many laboratories at our university have been equipped under agreements with companies. This kind of cooperation also enhances our innovation performance.

Providing financial support for scientific research and commercially promising projects is also the task of a new investment fund established by the Małopolska Regional Development Agency and the AGH University of Science and Technology.

At least PLN20 million will be transferred to the fund in the coming four years to be spent on innovative projects. The investment fund company Origin TFI has joined this fund and further fund companies and other firms are greatly interested in the project. The investment fund is an enormous opportunity for AGH scientists and a part of the university’s strategy. It is worth stressing that it is Poland’s first initiative of this kind.

The experience of the world’s best scientific centres shows that funds of this kind work excellently.

How does the AGH cooperate with business to put the results of research conducted at the university into practice?

Applying research findings in practice and bringing them to the marketplace is the key task of such units as the Technology Transfer Centre, an organisation responsible for the transfer of innovative technologies from the AGH to businesses and other external institutions.

Krakowskie Centrum Innowacyjnych Technologii INNOAGH Sp. z o.o., a company set up in 2010 and wholly owned by the AGH, plays an important role in technology transfer. INNOAGH’s mission is establishing technology start-ups and consequently developing business based on knowledge and modern technologies. Its task is the indirect commercialisation of results of scientific research and development work carried out at the AGH. INNOAGH supports inventors in setting up spin-off companies based on innovative technologies and inventions developed at the university. INNOAGH is also responsible for building lasting cooperation between science and business. Thanks to cooperation with various institutions and experts, we have been able to successfully combine advanced technologies and knowledge developed at the university with the needs of industry.

A dozen or so expert and technology firms have been established so far on the basis of the AGH’s intellectual property.

Their main shareholders are scientists, PhD students and AGH • students.

PM

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

PHYSICS APPLICATION IN INDUSTRY BY SCIENTISTS FROM

JAGIELLONIAN UNIVERSITY

T

he Faculty of Physics, Astronomy and Applied Computer Science of the Jagiellonian University is located in a modern building equipped with more than 100 scientific laboratories. In addition to their scientific and research activities, many of the research teams cooperate with industry. They create and develop intellectual property, which is protected in many cases both in Poland and abroad. Examples of innovations offered by this Faculty are presented below.

In the Department of Experimental Computer Physics, a project entitled “The universal network of sensors adapted to measure the concentration of particulate matter in the atmospheric air and the selected weather parameters”

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is carried out by Assoc. Prof. Zenon Nieckarz. The invention is designed to measure the concentration of particulate matter in ambient air in real time. The concentration of particulate matter suspended in the air is monitored in three mass categories (PM1, PM2.5, PM10). The system also allows to measure temperature, humidity and pressure. The measurement results can be observed on-line on the website: http://tymoddycham.uj.edu.pl. What is important, in comparison to similar solutions existing on the market, the sensors can be regularly calibrated, which makes the results much more reliable. Actually, the sensors are deployed in several municipalities, for example the town of Kalwaria Zebrzydowska.

INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

“FOR ONE YEAR AND A HALF, A NETWORK OF SENSORS DEDICATED TO MEASURING AIR POLLUTION HAS WORKED IN OUR MUNICIPALITY. THE INHABITANTS ARE VERY GLAD, BECAUSE THEY HAVE FULL ON-LINE ACCESS TO THE RESULTS OF THE MEASUREMENTS. AT THE SAME TIME, OUR OFFICERS RECEIVED A GREAT REPORT SUMMARISING AIR QUALITY AND HELPING TO PLAN THE REAL EXPENSES FOR AIR PROTECTION.”

and mines from the Second World War represent a serious threat to navy and the toxic substances contained in some of the munition, for example war gases, are very serious environmental problem. It was estimated that if only 16% of the sunken ammunition was released into Baltic life in the sea and at its shores would be entirely ruined for the next 100 years. Thus, precise knowledge of the location and amount of these hazardous substances is crucial for a proper planning to deal with this ecological bomb.

The inventions are being further developed. The Centre for Technology Transfer CITTRU is looking for entities interested in licensing • and applying the technologies described above.

TECHNOLOGY TRANSFER OFFICERS FROM THE CENTRE FOR TECHNOLOGY TRANSFER CITTRU:

- Mayor of Kalwaria Zebrzydowska Kamil Awsiuk, PhD, and Assoc. Prof. Jakub Rysz with other members of the Macromolecular Nanofilms Group have developed a method and device which allow the deposition of materials - polymers, metals or metal oxides - in a controlled manner. This method allows to form large-area films with predefined structure and thickness already during the film deposition, particularly in a way compatible with roll-toroll technology. Additionally, it ensures economic advances by reducing technological steps or utilising less materials than standard methods.

The device is based on horizontal dipping where a small amount of solution is placed between the bar and the substrate which moves under the bar using a computer-controlled linear stage. In the proposed method the defined current or voltage is applied between the conductive substrate and electrode formed on the bar. This innovative technology enables controlling a structure of polymer thin films or deposition of metal oxides, e.g. titanium dioxide, and might revolutionise the sectors of plastic, electronic and solar cells, especially a dye-sensitised solar cell (DSSC). In another version of the developed system the light is focused on a meniscus formed between the bar and substrate initializing locally photoreaction. As a result, the device works as a printer of metallic conducting lines. The main advantage of presented innovations is that all of them based on the same element – h-dipper. Therefore, different reactions can be conducted in meniscus just by slight modification of the system.

In the Department of Experimental Particle Physics and Applications, Michał Silarski, PhD, develops mobile devices for the non-invasive detection of hazardous substances in the aquatic environment.

The aim of the innovation is to build a portable device allowing the remote detection and identification of hazardous substances such as unexploded shells, mines, war gases, etc. in the aquatic environment.

The principle of the device’s operation is based on the neutron activation of the substance and measuring the characteristic gamma quanta spectra formed after the irradiation with neutron beams. So far, an effective application of the activation methods in the aquatic environment was difficult due to the strong absorption of neutrons in water.

This obstacle was overcome by the application of neutron and gammaquanta guides. In contrast to the commonly used methods, this solution allows to determine the chemical composition of the suspicious object remotely, without endangering human health and life and provides a tomographic image of the tested object. Development of this technology will increase the safety of sailors, civilians and public services, in particular in the Baltic Sea, where the sunken combat shells

Katarzyna Małek-Ziętek

Agata Błaszczyk-Pasteczka

Phone: + 48 12 664 42 15, + 48 519 307 961

Phone: + 48 12 664 42 12, + 48 506 006 553

katarzyna.malek-zietek@uj.edu.pl

agata.blaszczyk-pasteczka@uj.edu.pl

RESEARCHERS FROM THE FACULTY OF PHYSICS, ASTRONOMY AND APPLIED COMPUTER SCIENCE OF THE JAGIELLONIAN UNIVERSITY:

Kamil Awsiuk, PhD

Michal Silarski, PhD

kamil.awsiuk@uj.edu.pl

michal.silarski@uj.edu.pl

http://www.polyfilms.if.uj.edu.pl

Assoc. Prof. Zenon Nieckarz zenon.nieckarz@uj.edu.pl

THE FACULTY OF PHYSICS, ASTRONOMY AND APPLIED COMPUTER SCIENCE OF THE JAGIELLONIAN UNIVERSITY, together with other institutions, will host the 45TH CONGRESS OF POLISH PHYSICISTS (www.45zfp.uj.edu.pl/) in September 2019. The special session “Fizyka – Innowacje – Przemysł” focused on collaboration between physicists and industry will be organized during the Congress. This makes a great opportunity for scientists and companies to exchange the information, start new collaborations as well as to present already obtained achievements.

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Economy

OFFER TO BUSINESS UNDER THE POLISH INVESTMENT ZONE THE INDUSTRIAL DEVELOPMENT AGENCY (ARP SA) – ADMINISTRATOR OF THE EURO-PARK MIELEC AREA The Polish Investment Zone project is a continuation of the activity of special economic zones in Poland. Since the Law on Supporting New Investment (Journal of Laws of June 15, 2018, item 1162) became effective new regulations have been in force regarding the state-aid system in the form of income tax exemptions which previously functioned in special economic zones. Under the new regulations, investors have the right to indicate the place where they want to carry out their investment project.

STATE AID CRITERIA Whether or not state aid is granted now depends largely on the character of the planned investment project. This is called “entrance criterion” because the field of activity which the investor plans to conduct determines whether they have the right to benefit from income tax exemptions. Production, production services, research and development, and modern business services are the main forms of activity eligible for state aid.

If the planned investment project involves an activity for which one can receive state aid there are still quantity and quality criteria to be met.

The first is strictly connected with the unemployment rate in the county – the higher the unemployment rate, the lower the level of investment that the investor is required to incur. The quality criterion is composed of two parts: sustainable economic development and sustainable social development. In our area, the investor should meet 4 out of 10 criteria of their own choosing and which will be listed in the decision on support. Meeting the criteria will allow the investor to use state aid.

We would like to encourage investors to get familiar with the new legislation and use the tool designed for the preliminary assessment of eligibility for state aid. The tool is available on www.strefainwestycji.arp.pl.

HISTORY AND THE PRESENT DAY SPECIAL ECONOMIC ZONE EURO-PARK MIELEC YEAR OF ESTABLISHMENT: 1995; Poland’s first special economic zone BUSINESS LICENSES: 448 INVESTMENT: PLN11.5 billion JOBS: 46,200 ADMINISTRATOR: Industrial Development Agency The administrator of the EURO-PARK MIELEC has so far issued two decisions on support under the Polish Investment Zone system (under the previous system, business licenses for conducting business operations in the zone were issued). The investors plan to invest PLN130 million and create at least 40 new jobs.

•

SPECIAL OFFER PRODUCTION AND WAREHOUSE FLOOR (AT THE DESIGN STAGE)

LOCATION:

Zaczernie (Trzebownisko commune near the city of Rzeszów)

AREA:

5,000 sq. m. (production and warehouse floor) 1,000 sq. m. (staff welfare area and offices)

UTILITIES:

• electricity and telecommunications • water-supply • sewage system storm-drainage system • gas supply

AREA Decisions on support, under which investors become eligible for income tax exemptions, are issued by the Industrial Development Agency, which administers the area and the Special Economic Zone EURO-PARK MIELEC. The area is composed of the following counties and cities with county rights: - Podkarpackie province: the cities of Krosno and Rzeszów, and the counties of Bieszczady, Brzozów, Dębica, Jarosław, Jasło, Kolbuszowa, Krosno, Lesko, Leżajsk, Lubaczów, Łańcut, Mielec, Przeworsk, RopczyceSędziszów, Rzeszów, Sanok and Strzyżów; - Lubelskie province: the city of Lublin and the counties of Lubartów, Lublin and Świdnik.

The area offers the EU’s highest level of state aid (up to 70% of the eligible costs of a project) and the longest period of decision on support’ validity (15 years).

DESIGNATION:

tenancy or lease

CONTACT:

Industrial Development Agency, Mielec Branch, www.europark.arp.pl

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CONGRESS 590

590....

MADE IN POLAND Seven out of ten Poles declare that “Polishness” encourages them to buy products of a given brand, and this number has been increasing year by year. This applies in particular to foodstuffs, banking and insurance products (services) and over-the-counter drugs, i.e. medications and pharmaceuticals which can be sold without a prescription. Only one-to-two Poles in ten are discouraged from buying certain goods due to their Polish origin.

H

ow do we know that? Surveys on socalled consumer patriotism have been conducted in Poland many times already.

The latest data are presented in the “Economic Patriotism 2016” report by Open Research and in a survey on economic patriotism conducted by the Public Opinion Research Center (CBOS) in September 2017, which shows that the data are not only current, but also extend the conceptual scope of this topic. According to Michał Feliksiak, a commentator on the CBOS survey: “Economic patriotism is primarily expressed by buying goods produced by the local population. Other economic activities, which are treated as manifestations of patriotism, due to their positive impact on a given community, can also include being an honest taxpayer and doing shopping in specific shops (for example operated by local owners). What was of interest for us in this survey was whether a patriotic

42 polish market

attitude could be manifested in everyday shopping and whether this kind of motivation had any practical effect on consumers’ choices.”

What was the result? For consumers shopping for everyday products, it was invariably their price (81%) and quality (76%) which were of crucial importance.

This order of priority is observed at an almost unchanging level across all Polish surveys conducted in this century. Another criterion – the Polish origin of the product – is quickly gaining importance. It is indicated by nearly half the Poles (46%). Within one year between the latest surveys, this group increased significantly (by 13 percentage points). The statisticians characterised this group of consumers as “older residents of large cities with basic vocational education, from households with a higher income per capita, who identify with the Right and engage in religious practices, especially several times a week”. On the opposite pole were “younger

CONGRESS 590

respondents, residents of the largest agglomerations, with the best education, with a low income and dissatisfied with their financial situation, declaring left-wing views and not engaging (or sporadically engaging) in religious practices”.

Evidently, the surveyors have perhaps identified the groups of respondents in excessive detail. The respondents were also asked to explain the motivations for their attitudes. The reasons were twofold. Some respondents (57%) suggested the better properties of the products – higher quality, durability, better taste, being healthier and more eco-friendly. Confidence in the producers, better knowledge of the products and being accustomed to the brand were highlighted.

Other respondents (43%) expressed a conviction that buying Polish products had a positive impact on the country’s economy, businesses and employees (including a higher demand for labour). The authors of the surveys included general answers referring to Polishness, patriotism and the need for selecting what is “local” in a separate category.

Respondents found it really difficult to answer the question – What does it mean that a product is Polish? The authors of the CBOS survey suggested several answer options – the product was produced in Poland by a Polish company, it was produced abroad by a Polish company, or the other way round – it was produced in Poland by a foreign company. The first variant was obvious, but for the majority of the respondents, none of the other options was good enough for a product to be considered Polish (these were questioned by 47% and 68%, respectively). Therefore, it can be concluded that the pedigree of the company behind a given product is more important than its place of manufacture. A more detailed analysis indicated that over a dozen or so years (as compared to the 2003 survey) the “Polishness” criteria for products have not only become stricter but also more extensive – now including, e.g., the requirement that the producer pay taxes in Poland.

This brought the surveyors one step away from feeling compelled to research the very term “economic patriotism”. What actions related to economic activity did people regard as desirable and treat as manifestations of patriotism? As many as 70-80% of positive answers were given to the following: it is good to do shopping in small, local stores operated by Polish owners; be an honest taxpayer; and buy Polish products This is what makes Poles feel they have a positive impact on the economy, standing of companies and the labour market, i.e. employees. Simple? All too simple!

THE 590 CODE – WHY IT CAN BE MISLEADING This issue only appears simple. Barcodes have been created to help identify goods, and their prefixes were intended to designate countries. It is important to distinguish between two things – a country associated with the product through the code and the capital behind the product. Indeed, foreign companies operating in our country can freely use the 590 code for Poland. All foreign companies need to do is establish a daughter company in Poland as a limited liability company (sp. z o.o.), and sell their products under this newly created entity, using the 590 marking. The products can be 100% made abroad, the profits made can be transferred to the home country of the company, and through so-called tax optimisation, also taxes on those profits can be largely paid outside Poland. While bar codes can prove useful for the consumers in decision-making, they should not be the only thing taken into account.

Such a situation encourages the advocates of economic patriotism to take a number of additional actions. Supported by some entrepreneurs and companies, they organise propaganda and advertising and media campaigns to promote local producers and products – these

ECONOMIC PATRIOTISM HAS BEEN PRESENT IN THE HISTORIES, CULTURES AND ECONOMIES OF ALL NATIONS AND STATES. AS WE KNOW, HOWEVER, ITS EXTREME FORM – ISOLATIONISM – HAS NEVER BROUGHT ANY GOOD TO ANY ECONOMY OR CULTURE. WE ALSO KNOW HOW MUCH GOOD (AND NOT ONLY IN TERMS OF CUISINE) THE OPENING TO THE ITALIAN RENAISSANCE BROUGHT TO THE FIRST POLISH REPUBLIC IN THE “GOLDEN 17TH CENTURY”. AND WE KNOW THAT 123 YEARS OF POLAND’S NOT BEING INDEPENDENT REQUIRED MUCH RESISTANCE AGAINST FOREIGN INFLUENCES.

include “support Polish products”, “appreciate Polish products”, “support the development of PL”, etc. In order to facilitate the identification of “truly Polish” products, people have been creating websites with lists of producers and products, and smartphone apps which generate lists of “appropriate” suppliers after you enter your shopping list.

A THIN LINE As always, moderation and prudence are advised. Economic patriotism has been present in the histories, cultures and economies of all nations and states. As we know, however, its extreme form – isolationism – has never brought any good to any economy or culture. We also know how much good (and not only in terms of cuisine) the opening to the Italian Renaissance brought to the First Polish Republic in the “golden 17th century”. And we know that 123 years of Poland’s not being independent required much resistance against foreign influences. We respect, perhaps with some envy, the conviction of our German neighbours of the quality of their products. Sometimes we find it difficult to understand the British – Locke, Hume, Smith, Ricardo, and Marshall established the foundations for a liberal and global economy, while British judges still wear wigs made of wool, which are a symbol of the most grotesque form of economic protectionism.

We may draw only one conclusion from this story – an activity will be effective if it is commensurate with the economic reality. The Nation Brands report is prepared every year based on several dozen variables, including reports of the International Monetary Fund, the World Economic Forum in Davos and fDI Intelligence. This year’s report saw the USA strengthening its position as the global leader. The US national brand was valued at USD 26 bn, ahead of China (12.8 bn), Germany (5.1 bn), the United Kingdom (3.7 bn) and Japan (3.6 bn). Poland’s brand was valued at USD 650 bn, which ranked our country 23rd in the world. This appears to be an appropriate po• sition.

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Economy

KGHM Polska Miedź President and CEO MARCIN CHLUDZIŃSKI talks to "Polish Market” about the situation in the world copper market and how it is likely to affect the operation of this Polish group in coming years. What are the biggest opportunities for the development of the group and what are the threats? Can KGHM make it to the top of world rankings and what factors will decide about it?

IS THE GOLDEN ERA OF POLISH COPPER APPROACHING? From the Polish perspective, the situation of KGHM, Poland’s only global company, is pretty comfortable. The hype surrounding supposedly revolutionary technological inventions such as graphene, which were meant to replace copper in many applications, has proved unsubstantiated. Meanwhile, existing trends of technological development in such promising sectors as the energy industry, electronics and the automotive industry, point to the growing demand for copper. According to the latest forecasts, we are faced with a structural copper deficit. Are these trends likely to be stable?

Copper supply in coming years could indeed grow at a far lower pace than in the past decade. The reason is that mining companies PM

44 polish market

have grown very cautious about making investment decisions. While the world has no shortage of copper deposits ready to be mined, few are deciding to open new mines.

What are the reasons for that?

Many mining groups are reluctant to take the risk involved in building new mines, which stems from negative experiences of a decade ago or so, when a number of firms overinvested, followed by major financial problems. Besides, a new mine takes a long time to open. It can last up to a decade due to infrastructural and legislative difficulties, for example when it comes to ecological issues.

PM

PM

Back to the original question, is KGHM able to meet the expectations of clients and

investors by satisfying their needs? Can sectors such as the automotive industry and the energy industry generate growing and lasting demand in the long term?

It depends on what exactly we mean by “long-term.” Some economic processes, including on the copper market, are difficult to predict in the longer term, all the more so that they are affected by a number of various developments such as geopolitical issues which have a dynamics of their own.

Could you give some examples?

It is difficult to predict right now what course the US-China trade war is likely to take and how it might affect different markets, including the non-ferrous metals market. In our forecasts, even if they are based on PM

Economy the most accurate analytical models, we must allow for a margin of error.

Survey, our Group found itself at No.2 in the world ranking of metallic silver producers.

But in spite of those reservations, prospects for the copper industry are favourable, aren’t they?

I believe that we can safely say that in the future copper companies will not need to worry about falling demand. This will be because of the expected development of the automotive industry, and notably of the electric vehicles segment, which is expected to grow in popularity. Consequently, there will be more demand for copper, which is so necessary in their manufacture.

What does the fact that Poland has been ranked among the developed countries mean for KGHM’s position on the stock market?

We hope that thanks to the present favourable market situation and because Poland has been included in the group of developed countries, we will become an even more attractive partner for our clients all over the world and that it will be easier to establish valuable contacts. The company has been given the opportunity to attract more interest from foreign investors with more capital.

PM

In what way does KGHM Polska Miedź meet market demand? How effective and profitable are your mines and what are the forecasts for the future?

Although within the Group we are advancing overseas projects such as the Sierra Gorda mine in Chile, our Polish copper and silver mines remain the heart of KGHM’s operations.

We are putting our greatest effort into them, to help them develop and to generate innovation. Our Polish mines account for about 90% of our profits, thanks to which we are among the world’s leaders in copper production.

I BELIEVE THAT WE CAN SAFELY SAY THAT IN THE FUTURE COPPER COMPANIES WILL NOT NEED TO WORRY ABOUT FALLING DEMAND.

PM

PM

What KGHM operations would you single out?

One example is Głogów GłębokiPrzemysłowy, or Deep Głogów, the biggest deep mining project in Europe in terms of the size of its deposits. According to our forecasts, between 2028 and 2035, at the height of operations, 10-11 million tonnes of ore will be extracted from this area of the deposits, from which 200- 220 thousand tonnes of electrolytic copper will be produced.

Most importantly, these deposits can be mined for a very long time, allowing the present level of extraction to be maintained in Poland for decades. This shows what a solid base KGHM has in terms of natural resources.

PM

What portion of the 25 million tonne world copper trade is in the hands of KGHM? Do the global copper shortage and rising stock market prices spell a financial heyday for KGHM? When it comes to KGHM’s share in the global copper trade, our current position is best reflected in world rankings. For a number of years KGHM Polska Miedź has ranked among the leading mining companies. In the ranking of the biggest global mining copper producers, the KGHM Group ranked sixth in 2017. Our position is even stronger in the extraction of silver. According to the World Silver PM

What direction will your investment in Poland take? In your new strategy is more attention to be devoted to investment projects capitalising on the high level of your extraction technologies which raise the efficiency of ore processing, or to lowering rising production costs?

The aim of the KGHM Polska Miedź strategy will be to strike a balance between maximising the volume of copper mined from our Polish deposits and the profitability of our extraction, processing and metallurgical processes in the long term. We know that it is possible to achieve this goal through the use of the most advanced and efficient technological solutions in our investment projects. That is why we constantly work on developing new technologies. We monitor extraction and production at all stages, collect very detailed data and are striving to improve the entire system.

Better efficiency has been achieved thanks to a system developed by our specialists which streamlines communication with mine crews and the monitoring of operations.

PM

What about the rising production costs which matter so much in your sector?

This is a separate issue, one which does not just concern KGHM. It’s a world trend, which is caused by the need to reach for less and less accessible deposits and indirectly, by social changes. Societies in the developed and developing countries want to work in decent conditions and receive a decent wage. To make this possible, we are constantly working to optimise our production processes through better productivity and lower energy consumption.

The results of these measures are reflected in the new investment projects.

PM

PM

KGHM, and the rest of world industry, face the need to balance efficiency against environmental concerns, notably climate change. From the point of view of your

company, how do you rate Poland’s record in this sphere?

The need to protect the environment and climate is something each and every company dealing with the extraction and processing of mineral resources must take into account. KGHM is in compliance with all of the regulations set by Polish authorities and the European Union. In the field of environmental protection we have introduced effective technological solutions. At the Głogów Copper Smelter and Refinery a new installation is being built to process arsenic into a form similar to scorodite, a naturally occurring mineral. These measures are being implemented as part of the adjustment of our technological installations to the requirements of BAT conclusions for the non-ferrous metals industry.

What are the expected results?

Thanks to these measures the quality of air, soil and water will improve not just within the plants but also in their surroundings. We realise what an important part of social responsibility environmental protection is. We are involved in projects concerning the environment and human health.

PM

Does it all mean that the situation of KGHM is very comfortable, that the company has no worries, both in terms of market fluctuations and competition? Is it entering a golden age?

In our forecasts we tend to be cautious and not overoptimistic. We want the company’s policies to be pragmatic, based on experience, the analysis of facts and planning.

However, I trust that, based on recent developments, our hard work will be profitable and that we will continue to grow our global • position.

PM

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Economy

MONDI OFFERS CONTAINERBOARD

CUSTOMERS COMPETITIVE ADVANTAGES UNDER NEW SERVICE BRAND ‘ORANGE BOARD’ • Coaching for customers’ success: New service brand “Orange Board”, combines Mondi’s technical sales service packages spanning knowledge exchange via seminars and workshops, a new online platform, and the AAA-Academy for traders • Brand new offer: “corrugated-paper-expert” 24/7 online tool shares unique technical knowledge exclusively for containerboard clients

Economy

M

ondi has launched Orange Board, a new customer service brand covering a full range of technical sales services for containerboard customers. Taking into account the importance of customer service and the value of round-the-clock support, Mondi has updated its offering and aligned its three service packages under this new umbrella brand. Orange Board offers customers enhanced services including a brand new 24/7 online platform called “corrugated-paperexpert”; seminars and workshops covering the entire value chain from the forest to the corrugated box performance; country specific seminars to equip customers for their marketplaces and enable tailormade consultations at customers’ sites. In addition, the Orange Board hosts the AAA-Academy, which trains containerboard traders and sales agents within Africa, Asia and the Americas.

Marek Motylewski, head of technical sales services Mondi Containerboard, explains: “We have always been committed to sharing knowledge with our customers and helping them use our containerboard grades in the most efficient way. Orange Board now unifies our approach by bringing our services together under one brand. The brand’s name reflects Mondi Containerboard’s corporate colour and commitment to coaching for customer success. What’s more, we are breaking new ground with our 24/7 online platform, which is unique in the industry and offers our customers exclusive access to industry knowledge.”

ABOUT MONDI Mondi is a global leader in packaging and paper, delighting its customers and consumers with innovative and sustainable packaging and paper solutions. Mondi is fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and plastic films, to developing and manufacturing effective industrial and consumer packaging solutions. Sustainability is embedded in everything Mondi does. In 2017, Mondi had revenues of €7.10 billion and underlying EBITDA of EUR1.48 billion.

Mondi has a dual listed company structure, with a primary listing on the JSE Limited for Mondi Limited under the ticker MND, and a premium listing on the London Stock Exchange for Mondi plc, under the ticker MNDI. Mondi is a FTSE 100 constituent, and has been included in the FTSE4Good Index Series since 2008 and the FTSE/JSE Responsible Investment Index Series since 2007.

ABOUT MONDI CONTAINERBOARD Mondi Containerboard is a business segment of the business unit Fibre Packaging/ Paper and global player in virgin containerboard as well as a regional player in recycled containerboard. Within its broad product portfolio, Mondi Containerboard offers a range of appearance papers to satisfy the requirements of both customers and end-users as regards strength, high durability, excellent runnability on corrugators, and high-class printability. It also supplies a full range of kraft grades and, within its Semi Chem portfolio, solutions for packaging applications that are both stable and resistant to moisture. The Recycled range, consisting of 100% environmentally sound paper solutions, rounds off the Mondi Containerboard product portfolio.

CUSTOMER FOCUSED. EVERY DAY.

BRAND NEW ONLINE PLATFORM FOR 24/7 TECHNICAL SALES SERVICE ‘Corrugated-paper-expert’ is a new multi-functional online platform accessible 24/7 exclusively for Mondi Containerboard customers through a dedicated log-in. The platform shares information and knowledge in the fields of containerboard, converting and corrugated board through exclusive articles, examples and case studies. Using the comment function below each article, customers can comment, ask questions, and get quick feedback and advice from the technical sales service team on everyday challenges such as selecting the right paper grade for their packaging requirement.

THE ORANGE BOARD: TAILOR-MADE TECHNICAL SALES SERVICES ALONG THE VALUE CHAIN Orange Board reflects Mondi’s commitment to customer service and knowledge sharing by bringing all these services together in one convenient offer. It raises Mondi’s technical sales services for containerboard customers to a new and unique level. All in all, customers can benefit from increased paper know-how and efficiency in their corrugating processes, better use of resources, and the possibility of cost savings.

The Orange Board technical sales service offer can be found at www.mondigroup.com/orangeboard.

•

Mondi’s virgin and recycled containerboard is used to make corrugated packaging, primarily designed to protect customers’ products along the value chain and display them at the point-of-sale. With six production sites and a strong sales and logistics network, Mondi Containerboard is well positioned to offer customers a wide range of customised paper solutions. It attaches high priority to technical sales service, which is delivered through a broad variety of technical seminars and training sessions, technical support, assistance with product optimisation, and full-scale corrugator audits. Mondi Containerboard fulfils customers’ needs, every day.

INNOVATIVE. EVERY DAY. Mondi Containerboard fosters innovative research and cutting-edge technology.

Its commitment is reflected in the work of its Print Competence Centre, where customised state-of-the-art printing solutions are developed. In addition, the team of specialists at its Food Safety Laboratory develop optimised solutions that meet the highest requirements for food contact and other sensitive applications.

ABOUT MONDI ŚWIECIE S.A. Mondi Świecie S.A. is a major European producer of containerboard paper grades.

Benefitting from great experience, the product portfolio includes technologically advanced products such as a variety of containerboard grades with enhanced humidity resistance.

We work with customers, research institutes and other strategic partners to develop innovative, sustainable solutions. From major investments in energy efficiency, to focus on operational excellence, safety and people development, we contribute to the success of our customers and a sustainable future for all.

We are currently wholly owned by the Mondi Group and a member of Mondi Containerboard Business Segment.

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Events

POLISH ECONOMIC EXHIBITION A pavilion foreshadowing next year’s Polish Economic Exhibition was opened by Polish President Andrzej Duda in Warsaw on September 28. The exhibition is to mark the one hundredth anniversary of Polish independence, regained after more than a century of subjugation.

It features key economic achievements of the past century, the highlights of which are shown at the pavilion, while the full scope to be presented at next year’s full-scale exhibition.

A

ddressing the opening ceremony of the pavilion, President Andrzej Duda spoke about Poland’s good fortunes in recent years, thanks to which it was recently admitted to the exclusive Developed Market club by FTSE Russell. President Duda described this fact as “a momentous occasion, because in the past decade no other country has managed to achieve the Developed Market status. This can serve as one of the symbols of the independence centenary. It proves that Poland is succeeding on its way towards building a strong, competitive and economically powerful state. It shows just how much progress we have made over the last 29 years, and especially in the last three years during which our policies have been so robust and decisive.” Speaking about the Polish Economic Exhibition, President Duda said it is meant as “an inspiration for the future to make Poles proud of what they have achieved, what they can do, who they are and what they can achieve in the future”.

A full-scale Polish Economic Exihibition is to open in the middle of next year. The event is organised on the initiative of President Andrzej Duda. This year’s smaller-scale pavilion is a presentation of the country’s top inventors like Ignacy Łukasiewicz, who designed the kerosene lamp. While his name is well-known, the same cannot be said, for instance, about Jan Szczepanik, the Polish inventor of the bulletproof vest.

The first to be saved by his invention was king Alfonso XIII of Spain during an assassination attempt at his wedding ceremony in 1906. The vest absorbed the blast caused by an explosive planted by terrorists.

The motto of the exhibition is “The Strength of the National Community” to encourage visitors to think about values such as co-operation and joint responsibility as the foundations of a strong and modern state.

The focal point of the exhibition is a tower reminiscent of one which was put up during the memorable national exhibition of 1929, the first largescale presentation of Poland’s economic successes since it regained independence. According to the organisers, the tower is a symbol of the nation’s heritage to which each citizen makes a meaningful contribution. As such, it stands for the community, solidarity, development and tradition.

Inside the pavilion, visitors find a series of interactive multimedia stands addressed to all age groups. They include educational presentations, interactive mirrors, a virtual changing room which enables children to try on the uniform of an airline pilot, astronaut or firefighter. There is also a multimedia comic book about the history of the Polish economy. For adults, there are workshops devoted to anything from pottery design to sculpture in blocks of rock salt – this to mark the importance of salt in the Polish economy down the ages, as symbolised by

48 polish market

“IT IS MEANT AS AN INSPIRATION FOR THE FUTURE TO MAKE POLES PROUD OF WHAT THEY HAVE ACHIEVED, WHO THEY ARE AND WHAT THEY CAN ACHIEVE IN THE FUTURE”.

Andrzej Duda

the historic Wieliczka mine near Krakow. In the outdoor exhibition space, the achievements of twenty five companies are shown. The organisers describe them as examples of those firms whose visionary approach to development and adaptation to dynamic changes in the business environment has made them the most successful in the past 100 years. Among the featured firms are big firms like Autosan, the makers of coaches, the Wieliczka salt mine and at the other end of the spectrum, Jan Kielman, the makers of bespoke shoes worn by film stars.

While this year’s exhibition is held in Piłsudski Square in central Warsaw, the main event next year will be hosted by the national stadium grounds on the right bank of the Vistula river. A series of conferences is scheduled as part of the event. The organisers promise that visitors will find the exhibition very entertaining with a wealth of multimedia • attractions.

Economy

PRESIDENT ANDRZEJ DUDA VISITS

TZMO GROUP’S GERMAN SUBSIDIARY

On a visit to Germany, Polish President Andrzej Duda stopped over at the headquarters of the German subsidiary of TZMO Group, a leading manufacturer of medical and personal hygiene products. The company, which is based in Biesenthal on the outskirts of Berlin, has been in operation for almost twenty years. It grows rapidly and currently employs a team of 140 workers.

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uring a visit to TZMO Deutschland GmbH, the Polish President was full of praise when he spoke about the technological equipment of the company’s modern logistics and training centre. He addressed the team and talked to the President of the parent company TZMO SA Jarosław Józefowicz and Piotr Daszyński, Managing Director of TZMO Deutschland GmbH about the company’s development plans.

Since it was founded in 1999, TZMO Deutschland GmbH has been developing steadily. Work got underway in May

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on the construction of the fifth warehouse and logistics depot with a space of nearly 4,000 square metres, with room for products placed on 6,000 palettes. The value of the investment project is estimated at EUR 7,000,000. The construction of the depot is part of the Group’s investment programme.

Upon completion of the new warehouse, the construction of a new administrative building will commence. It is now in an advanced planning phase. TZMO SA President Jarosław Józefowicz rated the development of the TZMO German branch very highly: “I’m impressed with the commitment the TZMO Deutschland GmbH team in the

Economy

WE ARE HONOURED AND VERY PROUD TO HOST SUCH PROMINENT GUESTS AT TZMO. THE PRESENCE OF OUR COMPANY IN GERMANY AND ITS SHARE IN SALES IN THE GERMAN MARKET IS STEADILY GROWING.

efficient implementation of this investment project. At the same time, I am convinced that the new logistical depot will provide even better access to our clients in Germany.

I trust these activities will strengthen the potential of the TZMO Group in the world.”

"We are honoured and very proud to host such prominent guests at TZMO. The presence of our company in Germany and its share in sales in the German market is steadily growing,” said Piotr Daszyński, TZMO Deutschland GmbH Managing Director.

As many as 1,000 palettes are handled in Biesenthal each day over a space of 24,000 square metres. Commissioning takes place in four warehouses. The product range includes SENI incontinence pads, Matopat medical products and Bella personal hygiene products. The firm currently employs 140 workers and offers more than 500 different products which are supplied to over 15,000 clients in Germany.

TZMO Deutschland GmbH was set up in Bernau near Berlin but in 2000 it moved its headquarters to Biesenthal.

Since then a number of investment projects have been carried out there. The logistics and training centre was opened in 2004, before the completion of the warehouse in 2008. In 2013 the company completed the construction of another warehouse and logistics depot.

TZMO Deutschland GmbH, is one of 56 TZMO Group subsidiaries worldwide. Its SENI brand is one of the bestselling ranges of incontinence products in Germany. The company’s other products are used in hospitals, operating theatres, surgeries and ambulances.

TZMO SA was established in 1951. In a number of countries, the Group, whose portfolio includes 15 brands, is the market leader.

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Economy

CAREFREE MOMENTS OF SWEET BLISS ROBERT RUDNICKI, President of Fabryka Cukierków Pszczółka Sp. z o.o., a producer of sweets, talks to “Polish Market” about the company’s product range and its commitment to the preservation of bees.

What are the preferences of Polish consumers when it comes to sweets – what are the best-sellers?

Poles' favourite snacks are chocolate products, whether they buy something for themselves or for children. The brimming store shelves are proof of how much they are in demand. Consumers choose products which contain good ingredients and where information about factors that affect health is clearly displayed. The health-oriented trend PM

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is present in almost every product category.

Consumers are becoming more and more aware and are more concerned about their health. However, we often hear that healthy eating means that sweets must be completely excluded from your diet. I do not agree with that. We all deserve a treat. Women reach for sweets to feel better, and men treat sweets as energy snacks. Sweets are also a nice gift for your loved ones, for example as a birthday present.

Does the global trend of cutting sugar consumption give Pszczółka headaches?

Trends come and go, and chocolate is eternal. And so is candy and jelly. As I said, we do deserve a treat. Of course, all the products should come in an improved, healthier version. In order to meet the requirements of people who lead an active lifestyle, we are constantly working on new functional product ranges. We offer Słoneczne ( Sunshine) jelly enriched with vitamins and minerals PM

Economy

“...WE SHOULD BE THANKFUL TO BEES FOR MORE THAN JUST HONEY AND OTHER PRODUCTS. BEES ARE KEY TO FOOD PRODUCTION BECAUSE THEY POLLINATE THE PLANTS THAT PROVIDE OUR FOOD. that help the body function properly. Vitamin C, among others, improves immunity, cardiac efficiency and the functioning of the cardiovascular system and helps to lower blood pressure. In turn, Pychałki (Yummies) chocolate candy is enriched with calcium and magnesium.

What are current world trends in the countries Pszczółka exports to?

The confectionery business is growing dynamically around the world. Poland ranks eighth in terms of exports of sweets. Our main export markets are, of course, the countries of the European Union. Our products have won the hearts of our western neighbours, Germany. Other major export markets are the United Kingdom, the Czech Republic and France. Of late Middle East countries, such as the United Arab Emirates and Saudi Arabia, have fallen in love with our products.

PM

What are your plans for the future?

We are working on a strong entry into four distribution channels. This will allow us to fully use the production capacity we have.

The first is the traditional market, where we have been present with our products for over 65 years. I can say without false modesty that we have brought up several generations of consumers, we have gained their trust in the quality of our products, the types of candies we produce and the flavours we offer. On the basis of this trust, we are convinced that expanding our line with chocolate, jelly and toffee candy will meet with positive customer response and we will meet expected sales targets and achieve a rapid increase in distribution. We are preparing a product range for the autumn and winter season, Christmas and Easter 2019. Another channel is the PM

modern market. We intend to significantly increase activities in this channel. Our products are already present in many networks, and work is underway on introducing new products. We have introduced sweets to Poczta Polska postal service outlets throughout the country. This form of cooperation works very well, and sales grow from month to month.

Top Pszczółka products such as Coffee Amo, Mieszanka Imieninowa, Miętowe Lubelskie, Kukułki and Jogusie, are present at PKN Orlen filling stations. Cooperation with Orlen allows Pszczółka, a Polish company with the highest quality products, to capitalise on the two companies’ convergent strategies. It is an undertaking that puts great emphasis on the promotion of Polish food and Polish producers. This initiative will certainly serve the Polish economy, the Polish consumer, and the company itself. It’s a win-win situation. Export is yet another distribution channel for our products. We sell products to more than 20 countries around the world. Our main customers are EU member states, Asian countries, as well as the US. We also see potential for long-term cooperation, among others with Kazakhstan. Trade with that country also provides an opportunity to enter the remaining markets of the Eurasian Economic Union, which also includes Russia, Belarus, Armenia and Kyrgyzstan. We are also very interested in the very attractive markets of the Middle East, where talks with potential clients in countries of this region are underway.

Our modern factory meets with great interest from domestic and foreign confectionery makers, who turn to us with requests to make products under their own brands. This is yet another channel for us, maybe not of distribution itself but of production. We are currently running several such projects.

Why is Pszczółka interested in bees? (The company name means little bee in Polish.)

Bees have been disappearing from beehives since the end of the 1990s. Beekeepers around the world are baffled by this mysterious and sudden phenomenon. The number of bee colonies is shrinking rapidly. Meanwhile, we should be thankful to bees for more than just honey and other products. Bees are key to food production because they pollinate the plants that provide our food. Bumblebees, solitary bees, and other insects, such as butterflies, wasps and flies - all these insects work from dawn to dusk, pollinating crops and wild plants. One in three spoonfuls of food we eat depends on the activity of pollinators.

Thanks to pollinators we can enjoy vegetables PM

such as tomatoes and courgettes, fruit such as apples, nuts - for example, almonds, and herbs that we use as spices. This also applies to edible oils - for example rapeseed oil. In Europe alone, over 4,000 varieties of vegetables depend on pollination by bees and other insects. We are dependent on them, and yet they are dying - on a large scale. The disappearance of bees is a human problem. Our lives depend on their existence.

Together with two universities in the city of Lublin we have launched a wild bee protection programme. We fund “bee hotels” which are filled with reed stalks, among which bees can find shelter. They have been placed in a number of schools in the Lublin area and on the Pszczółka factory grounds. We are also involved in educational activities by organising workshops to teach children how to build bee shelters.

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Economy

WE ARE 134 years old T

his year the Średzka Spółdzielnia Mleczarska “Jana” dairy cooperative is celebrating the 134th anniversary of its establishment. On October 15, the firm was featured at the Polish Economic Exhibition in Warsaw, organised by the Polish President’s Office to mark the centenary of the regaining of independence by Poland. With the assistance of the National Museum of Agriculture and AgriculturalFood Industry in Szreniawa, Średzka Spółdzielnia Mleczarska “Jana” from Środa Wielkopolska, held a workshop on Warsaw’s Piłsudskiego Square. The main purpose of the workshop was to present the traditions of dairy production and to teach the participants how to use traditional methods for manufacturing dairy products. The presentations involved methods of churning and making cottage cheese using traditional presses.

“We have managed to maintain all our customs and traditions for 134 years, while introducing new methods to support the traditional technologies in use at our dairy cooperative. That is why many of our products bear the ‘Jakość Tradycja’ (Quality & Tradition) certificate.

To be worthy of this mark, our products had to undergo a very long series of highly specific tests. We also needed to prove that we had been making these products for at least 50 years. Our products are known for their excellent quality and are free of preservatives, which is very important. Our cream cheese, cottage cheese and kefir products are available

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both in Poland and abroad. In 2016 our exports reached 16.5% in value terms. This is a lot, particularly for a producer of fresh goods with a short shelf life that need to be refrigerated. Throughout the last 25 years almost everything has changed here except for the address of our cooperative,” said the cooperative's President.

“Our products are based on raw milk coming from the Wielkopolskie region, notably from the Środa Wielkopolska and Poznań areas, which are ecologically sound, which is a guarantee of. top quality milk. In the early 1990s we took a number of effective measures to promote a professional approach to the quality of raw milk. This was connected with refrigeration directly after milking and the gradual liquidation of buying stations and production divisions. Dairies were replaced by direct collection and the majority of production was moved to the main facility, while the quality of raw milk was gradually increased to keep ahead of the competitors. As part of the measures to ensure compliance with EU requirements we have carried out a number of projects involving changes in the facility’s infrastructure, techniques and technologies and a considerable increase in production capacity. Over the last 25 years the number of suppliers has decreased, although in overall terms milk production increased to a significant degree as a result of consolidation of suppliers and higher milk yield per cow,” said Maria Czwojdrak, President of Średzka Spółdzielnia Mleczarska “Jana”. •

Economy

CONVERSATIONS ON THE POLISH ECONOMY IN THE PODKARPACKIE

REGION

Central government officials and regional authorities and entrepreneurs gathered at the Arłamów Hotel on 29 September to take part in the conference “Conversations on the Polish economy in Podkarpackie.” The participants discussed ways of enhancing the condition of the economic environment in which business operates and the growth of the Podkarpackie region.

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Bogdan Romaniuk - Vice Marshal of the Podkarpackie province, Jerzy Kwieciński - Minister of Investment and Economic Development, Andrzej Wiśniowski - President of Wiśniowski Sp. z o.o., Ryszard Roczniak - President of Voster Sp. z o.o., Piotr Woźniak - President of PGNiG

Grzegorz Nawacki - Deputy Editor in Chief of Puls Biznesu, Zbigniew Jagiełło - President of PKO BP, Adam Góral President of Asseco Poland S.A., Jerzy Kwieciński - Minister of Investment and Economic Development, Piotr Woźniak - President of PGNiG, Jerzy Krzanowski - President of the Nowy Styl Group, Andrzej Kensbok - Vice-President of the Industrial Development Agency

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he conference was attended, among others, by Minister of Investment and Economic Development Jerzy Kwieciński, deputy Minister of Sport and Tourism Jarosław Stawiarski, Marshal of the Podkarpackie province Władysław Ortyl, President of PKO BP Zbigniew Jagiełło, President of PGNiG Piotr Woźniak, President of Asseco Poland S.A. Adam Góral, VicePresident of the Nowy Styl Group Jerzy Krzanowski, and local entrepreneurs associated with the Podkarpackie Business Club.

Marshal Władysław Ortyl stressed that 160,000 businesses operated in the region, and 80% of the whole Polish aviation production took place in this province. “It is important for the local-government authorities that the businesses which operate here have solid foundations for dynamic growth”.

Minister Jerzy Kwieciński pointed out that an increase in expenditure on research and development is a challenge, for both business and the government. “In Poland, 1% is spent on R&D, and nearly half comes from the private sector. Another objective is to build the strength of Polish businesses. Recently, Poland, became the first country from its region to be recognised as a developed economy by the FTSE Russell agency, and the credit goes to Polish entrepreneurs,” he said.

Adam Góral, President of Asseco Poland S.A., said that he was impressed with the progress Poland had made. “Being one of 25 most developed economies is a success, a success owed to Polish entrepreneurs.” He also stressed that business expected a simple taxation system. He appreciated the investments

Economy of foreign companies in the Podkarpackie province bringing about skilled workforce.

Zbigniew Jagiełło, President of PKO BP, said that Polish regions should revise their strategies after the forthcoming local elections. As many entities as possible should participate in working out a new strategy, not to take into account all the suggestions, as this is not possible, but to give all the entities a sense of participation. The strategy is extremely important, as it constitutes a framework for actions.

Adam Krzanowski from the Nowy Styl Group said that in comparison to other countries, taxes in Poland were not high. But he drew the others’ attention to the fiscal-control regime and the need for civil servants to adopt a friendly attitude during fiscal audits, instead of an authoritarian one.

Piotr Woźniak, President of PGNiG, when talking about Podkarpackie, said the fuel industry and sector “have been here forever,” as the first oil mine in the area was opened as early as in 1854, and over one third of the gas extracted in Poland came from this region. He also announced wider investments in the province.

Minister Jarosław Stawiarski concentrated on the development of sports infrastructure, using the very good cooperation with the Totalizator Sportowy company as an example, as a result of which new facilities have been put into use in the past few years.

Vice-President of the Industrial Development Agency (ARP) Andrzej Kensbok indicated that there were good conditions for business in the Podkarpackie province and pointed out the significance and dynamic growth of special economic zones.

During the conference, the Ignacy Łukasiewicz Economic Prize was awarded by the St. Vincent de Paul “Heart without Limits for Thy Neighbour” Foundation to the presidents of three companies the Ignacy Łukasiewicz Economic Prize for Voster Sp. z o.o. sp. k., the Ignacy Łukasiewicz Economic Prize for Inglot Sp. z o.o., and the Ignacy Łukasiewicz Economic Prize for Wiśniowski Sp. z o.o. S.K.A. for their exceptional contribution to the growth of the Podkarpackie and Polish economies and charitable activities.

The conference was accompanied by a charity ball, held for the fourth time by the Foundation.

A sum of PLN155,000 was collected in the painting auction. The ambassadors of the auction were Małgorzata Socha, Krzysztof Ignaczak, Arkadiusz Bielecki, and Beata Drzazga. The artistic part featured performances by Marcin Daniec and Anna Wyszkoni. During the ball, Vice Marshall of the Podkarpackie province Bogdan Romaniuk awarded the “Person of the Year” prizes. The statuettes went to Leokadia Ostrowska, who runs a children’s community centre at Wisłok Wielki near Komańcza, and Rev. Jan Mikos, founder of the only nursing home for retired farmers in Poland. The prize was also awarded to Beata Drzazga, who is active in the field of socially-oriented medicine, for her overall support for public initiatives and activ• ities.

Bartłomiej Wisz, M.C.,Radio Rzeszów sports reporter, Krzysztof Ignaczak, volleyball World Champion, Aida Bella, Totalizator Sportowy press spokesperson, Jarosław Stawiarski, Vice-Minister of Sports and Tourism, Tadeusz Pióro, Sanok Mayor Prof. Waldemar Moska, Gdańsk University of Physical Education and Sport

Father Jan Mikos, Izabela Samagalska, President of the Foundation Leokadia Ostrowska, Emil Jurkiewicz, sponsor, Bogdan Romaniuk, Vice Marshal of the Podkarpackie province

Krzysztof Ignaczak, volleyball World Champion, Agnieszka Sienkiewicz - actress, Władysław Ortyl - Marshal of the Podkarpackie province, Zbigniew Inglot - President of Inglot Sp. z o.o.

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Food Industry

DOORS THAT REDEFINE INTERIORS Voster President RYSZARD ROCZNIAK, talks to “Polish Market” about his firm’s production and sales strategy based on trend-setting design.

Voster consistently expands its product range in response to market needs by introducing new products – from panel door wings, to framed wings to glass wings to sliding doors and other systems. How does your strategy translate into the development of the company?

We have been doing our best to follow trends on the consumer market. In fact, we often set trends ourselves. This strategy allows us to cater for the tastes of our Clients, which results in year-on-year sales growth by around 20%. Naturally, increasing sales determine the further growth of the company. Thanks to the philosophy we have adopted we reinvest profits into capital assets. We constantly increase our production capacity by purchasing modern machinery and by building more factories.

PM

Voster does not just operate in the Polish market. You also export your products to southern markets. What markets are these and what products are the most popular there?

We export most of our products to countries which lie the closest to Poland, namely to neighbouring Slovakia and the Czech Republic. Hungary and the Balkan countries are increasingly becoming our export destinations, too. Unlike in Poland, in that part of Europe, panel door wings are in the biggest demand, while in Poland framed glass wings are the number one sales hit. This is due to different sunlight exposure in Poland and countries further south. In Poland there is a limited amount of direct sunlight, so Polish Clients look for the best ways to let it through. Meanwhile, our Clients in the south enjoy plenty of sunshine, and in the summer they prefer to keep their homes cool by not letting so much sunshine in.

PM

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Food Industry

“SINCE THE VERY BEGINNING OUR FIRM HAS BEEN COMMITTED TO CORPORATE SOCIAL RESPONSIBILITY. WE SPONSOR A NUMBER OF LOCAL CULTURAL EVENTS, WE SUPPORT LOCAL ECOLOGICAL INITIATIVES, CHARITIES AND SPORTS."

You design your own products. What’s ‘in’ right now?

For several years now the bright, simple and unpretentious Scandinavian style has been the most fashionable in door production. Looking for such products, Clients value a specific range of colours, simplicity and homely feel. That’s why our dominant colours are elegant natural white and natural shades of grey. For those who look for something more original and who are not afraid to experiment with colours, we have introduced door wings in trendy pastel colours.

This product range fits very well into Scandinavian, English and modernist interior design.

PM

Your company is involved in sports sponsorship. One example is the Voster ATS cycling team…

That’s right. Since the very beginning our firm has been committed to corporate social responsibility. We sponsor a number of local cultural events, we support local ecological initiatives, charities and sports. Among our many initiatives meant to support talented young sportsmen and sportswomen is the Voster ATS Team of cyclists, which was formed in 2016.

Within a very short time it has scored major successes by winning a silver medal at the Academic Polish Championships and the first and third place at the international Race of Solidarity and Olympics. In 2019 our team is planning to take part in international races all over Europe. To this end we have signed on another four cyclists who will improve our chances beginning in the new season, both in Polish events and in races held abroad.

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

INNOVATIVE AVIATION SOLITIONS ANNA and CZESŁAW KOLISZ, owners of the Ankol brand

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nkol, a modern company based in the city of Mielec (south-eastern part of Poland), operates in the aviation sector. Its founder Anna Kolisz carries out her business undertakings in a creative and innovative manner. She manages the company in keeping with the motto that “the way to the goal is through quality.” This philosophy is based on the use of modern technologies, quality management systems, and proper leadership and marketing. “Quality, Competence, Standards” is what guides Ankol’s activity. Complemented by proper leadership and high organisational culture, they have underlain the business success and competitiveness of the Ankol brand.

Ankol specialises in the delivery of spare parts and repair services for airplanes and helicopters. The company also delivers maintenance supplies such as oils, lubricants and hydraulic fluids, and aluminium and chemical materials for the production and repair of aircraft.

The company operates under a licence from the Ministry of Internal Affairs and Administration for special turnover of goods for military or police use. It is also authorised to take part in tenders for NATO states and governmental bodies of many countries. ANKOL carries out deliveries to around 34 countries. Its importing and exporting activity involves trade with manufacturing and repair plants operating in

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INSTITUTIONS OF THE 100 YEARS OF INDEPENDENCE

the aviation sector, and the implementation of ministerial contracts, also for the procurement departments of the defence ministries of many countries.

Ankol is a member of the Aviation Suppliers Association (ASA) and TRACE International, an American anti-bribery business organisation, which helps firms and corporations comply with anti-bribery laws.

Ankol stands out among private aviation suppliers with professionalism, credibility and unblemished reputation.

The company has been a leader in the sector for many years, which is confirmed by its high exports, accounting for 8085% of the overall sales, and an expanding list of customers. To broaden the range of the products and services, Ankol cooperates with Western manufacturers in the area of distribution of innovative aviation solutions and technologies. The company undertakes ambitious development challenges, which include creating a bridge for the exchange of modern aviation technologies between the East and West.

One example is the delivery of spare parts and repair services for Russian aircraft to Western customers. Ankol also supplies spare parts for airplanes and helicopters manufactured in the West. The company is the exclusive distributor in Eastern Europe of maintenance-free bearings made by the American manufacturer Kamatics Co. Thanks to their modern production technology, the bearings operate reliably throughout their lifecycle. This enables Ankol to carry out a multiannual contract for delivery of bearings for the production of the Superjet 100 civil aircraft. The export of goods delivered through the agency of Ankol is made easier thanks to compliance certificates obtained by the company. They attest that the products offered comply with Russian and Ukrainian quality standards. Ankol has also taken steps to bring onto foreign markets Polish flight recorders manufactured by the Air Force Institute of Technology (ITWL). The recorders are used on helicopters and fighter jets. Cooperation at governmental level is required to carry out such contracts.

In the age of rapid scientific and technological progress, Ankol implements innovations, ranging from the latest information technologies to modern methods of management and access to knowledge. Owing to such IT platforms, the company has developed a unique Product Database. This innovative database in five languages, including the Cyrillic script, contains more than 320,000 records providing detailed information about products, market prices and repair services. Its goal is to enable efficient and quick preparation of offers. The company has also worked out coherent and innovative management solutions to efficiently deal with complex sales processes responding to dynamic changes and growing requirements of markets.

The company’s reliability means that it strictly adheres to procedures resulting from the systems it has implemented for the management of the quality of goods, deliveries and information security. The management systems are based on domestic and foreign standards and concern not only the specific nature of supplies for the aviation sector, but also the environment, health and safety at work, information security and human capital.

IN THE AGE OF RAPID SCIENTIFIC AND TECHNOLOGICAL PROGRESS, ANKOL IMPLEMENTS INNOVATIONS, RANGING FROM THE LATEST INFORMATION TECHNOLOGIES TO MODERN METHODS OF MANAGEMENT AND ACCESS TO KNOWLEDGE.

Innovation in management involves human resources management. The personnel strategy supports the strategy of the organisation. Human resources management is aimed at securing professional and qualified staff, able to pursue the company’s goals. The qualifications and skills of the employees are improved through dedicated development programmes and are translated into efficient sales activity.

Ankol’s experience in the aviation sector, technical knowledge and professional staff are its unquestionable assets. Good leadership, commitment on the part of all employees and openness to trends in the contemporary business world have enabled building the modern and strong brand Ankol. It is seen as a credible partner on the Polish and international markets.

The ambitious brand is reaching further and further and is setting new development plans. It constantly seeks new opportunities and market expansion, and strives to strengthen its position. The prestigious national and international awards that the company has received are proof of its diverse achievements in the fields of finance, quality, reliability, ethics, image-building and marketing. • 11/2018 polish market

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Economy

PROMAG SA CHANGES THE FACE OF POLISH INTRALOGISTICS Digital transformation, which until recently was a domain of science fiction films, has become a reality. Digitisation entered production processes already some time ago. Now it is logistics that is facing the challenge of the Industry 4.0 revolution. Digitisation and associated technologies – automation, robotisation, the Internet of Things combined with artificial intelligence, augmented reality, cloud computing and Big Data – will be changing our world in the near future, both the business and social sphere.

PROMAG SA, through its products, services and professional advisers, is leading businesses into the era of Logistics 4.0. However, traditional warehouse equipment offered by the company still enjoys great interest from customers.

KAROLINA TOKARZ, President and Managing Director of PROMAG SA, talks to “Polish Market.”

How does PROMAG SA support customers in transition from traditional logistics to Logistics 4.0?

We support Polish businesses in changing their logistics in many aspects. The first one is making the customer aware of the advantages of process automation and of the inevitability of some technological changes.

The digital revolution is now unstoppable. This is why the best thing for our economy is to follow it as fast as possible. Many managers are aware of that, but lack the knowledge needed to implement the changes. PROMAG SA supports investors by spreading this knowledge and by assisting them at each stage in the implementation of their projects designed to automate their storage, transport, order picking and packaging systems, PM

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Economy

THE DIGITAL REVOLUTION IS NOW UNSTOPPABLE. THIS IS WHY THE BEST THING FOR OUR ECONOMY IS TO FOLLOW IT AS FAST AS POSSIBLE. and integrate them with external production and distribution systems. We offer our customers a logistical audit, a solution concept, free design, delivery, assembly, service and training. The range of products that we can offer to customers to automate their logistics is broad and includes multi-deep pallet storage systems with AutoMAG Shuttle and AutoMAG Mover, racking systems with stacker cranes, lift racking systems, carousel racking systems, multi-level transport and order picking systems based on bridge structures where order-picking paths are planned by individual algorithms, and robotic palletising systems integrated with conveyors and packaging equipment.

You have mentioned that customers are still interested in traditional warehouse equipment. For many years PROMAG has been distinguishable by its complete range of products for intralogistics. What is your sales strategy?

Our activity can be divided into two parts.

The first one involves the implementation of technologically advanced projects, including advice, and system design, production and integration. The second area is the delivery of standard products directly from our inventory. At present, our product range, which we have developed for almost 40 years now, is composed of more than 50,000 standard items plus over 30,000 models of wheels and castors.

These are mainly products that we manufacture ourselves and those for which we have property rights – products manufactured in conjunction with our partners and ordered from other producers with exclusive rights for the PROMAG network. They make up most of our product range. We offer under our own brand pallet and lifting trucks, metal furniture, conveyor systems, semi-automatic PM

and automatic AutoMAG storage systems and many other products. We are especially proud of the AutoMAG solution because it has enabled us to become a leading Polish company which designs, produces, assembles and services fully automated warehouses. AutoMAG has already won recognition from many customers and has been awarded the title of “Product of the Year” by the readers of the “Utrzymanie Ruchu” specialist magazine. We sell these solutions through our dense sales and service network, composed of 10 offices in the largest Polish cities and nearly 50 mobile commercial advisers. Additionally, we also sell products through our own online store.

Metal furniture, which you manufacture at your plant PROMAG MS in Bolechowo, is a separate product group in your portfolio. Where did the idea to enter this market come from and what was your goal?

Ideas always result from market needs and the same was the case with our decision to start the production of metal furniture.

We have invested in this area of our activity for years. We have just completed an investment project designed to increase the production capacity of our plant in Bolechowo.

We have expanded our production floor to 13,000 sq m and bought an automated line for metal sheet processing and a modern painting line. As a result, we will be able to increase our production capacity by 100% for sheet processing and by 150% for the painting process. Consequently, our customer service will become faster. One reason why the project was important for us is that we have exports plans concerning our furniture for workshops, warehouses, production floors, locker rooms and offices.

PM

Three years ago PROMAG set up the Warehouse Technology Centre (CTM PROMAG) and now regularly organises various events at the Centre. One of them is the Logistics Forum. Is this event interesting for businesses?

This year CTM PROMAG hosted the fourth Logistics Forum. Its main theme was “Logistics 4.0. Revolution or Evolution in Warehouses.” The event attracted more than 200 people interested in new internal logistics technologies. Businesspeople and scientists discussed technological and organisational challenges facing businesses with respect to Logistics 4.0. The event shows that Polish firms are ready for the digital revolution, but have insufficient knowledge to go through this process. The Forum and shows held regularly at PM

CTM PROMAG are a response to many questions and doubts voiced by businesses when it comes to the automation, robotisation and digitisation of intralogistics. This practical look at internal logistics is the main rationale for the existence of CTM PROMAG and the “Future Warehouse” exhibition that it houses.

At CTM PROMAG you also conduct regular workshops on warehouse safety. How popular is this activity of PROMAG? Are safety issues changing with the appearance of modern and advanced equipment?

We have organised our “Safe Warehouse” training courses for a few years now and they have already become a fixture in the calendar of events organised by CTM PROMAG. The 17th edition of the courses has recently been held, which shows how much interest there is in issues concerning the safety of logistics systems. Safety is becoming a priority for more and more firms as they realise that the costs of neglecting occupational health and safety rules in warehouses are higher than those incurred for daily prevention.

Man is the main factor in the safety of logistics systems. In modern automated solutions human input is replaced by machines and the risk of accident is lower, but this does not mean that it is non-existent. In the case of automated solutions, we have to take work safety into consideration at the design stage. The work of designers and structural engineers is of key importance in this case.

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What are PROMAG’s development plans for coming years?

Because of problems with recruiting workers and the need to compete on the increasingly demanding global market, Polish businesses are seeking the latest solutions in the area of automation, robotisation, digitisation and artificial intelligence. Logistics 4.0 is knocking on our doors and there is no return from it.

For us it is an opportunity for development in the area of systemic intralogistics solutions and a challenge associated with the constant improvement of these systems.

This is why we invest in experienced automation engineers, robotics engineers, programmers, structural engineers and designers. And we are not giving up on developing our own traditional activity, which is wholesale sales of warehouse equipment through our online store and advisers in our 10 offices in Poland. Further development of our range of technologically advanced solutions for Logistics 4.0 is our priority for coming years.

• PM

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Economy

A GREAT CELEBRATION FOR BUSINESS AND ENTREPRENEURSHIP The 11th edition of the European Economic Forum – Łódzkie 2018 took place on 15-16 October 2018. Business and economy experts, small and medium-sized enterprises, local-government officials, and representatives of public administration debated for two days on current economic issues. It is one of the key recurring economic events in Poland, organised by the Łódzkie Province, with support from the Lodz Agency of Regional Development.

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From the very origins of the Forum, we have strongly focused on the role of the Łódzkie Province in the European Union’s economy. We have put side by side entrepreneurship in our region and the situation in other Member States,” said Witold Stępień, Marshal of the Łódzkie Province, at the inaugural session of the Forum.

This year’s edition of the event was opened by Filmteractive – a festival of interactive communication. Panel members included representatives of the creative industries and the advertising and new-technology sectors. The discussed areas included advertising, film, technology, and synergy possibilities. The festival was accompanied by an interactive presentation of cutting-edge imaging technologies, allowing people to experience virtual reality and extended reality.

The Forum covered a variety of subjects, including opportunities created for Łódź and Poland by “Green Expo”, innovations in healthcare, attracting investors, and how to use sporting achievements in business, as well as aid for entrepreneurs. Other extensively addressed topics were related to the current situation on the labour market, including in the context of the automation and robotisation of business processes. Much attention was also devoted to the issues of business internationalisation and Polish-Chinese cooperation, as well as opportunities created by the land section of the New Silk Road.

The inaugural gala was attended by Konrad Pokutycki, President of BSH Sprzęt Gospodarstwa Domowego Sp. z o.o., Witold Stępień, Marshal of the Łódzkie Region, Dawid Urban, business angel, entrepreneur, a member of YPO, and owner of the Polska Grupa Meblowa, and Hanna Zdanowska, Mayor of Łódź, with Krzysztof Hołowczyc appearing as a special guest to try to answer the question of whether being successful is a stroke of luck or the result of a planned strategy. The rally master shared his experiences and achievements, not only in the sports domain.

Krzysztof Ibisz moderated this session.

The first day of the Forum was concluded by the “Strong In Business” Gala, which saw the announcement of the prizewinners of the Economic Award of the Łódzkie Region 2018. The winners in their respective categories were: • The Export Dynamics category – Liki Mobile Solutions • The Start-Up category – Smart Soft Solutions • The EU Project with Potential category – PPHU Trans-Tex S.C. for the project “Launching the production of mattress knitted fabrics, cases and mattresses, with the addition of copper yarn based on a proprietary technology” • The Active Entrepreneur category – the Geoplan Geodetic Company

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• The Responsible Entrepreneur – Haering – Winner.

• Łódzkie Recovers – the Recycled Product of the Year category – Audience Award – Steig Sp. z o.o. – Winner.

• The Special Award of the Marshal of the Łódzkie Province – Indigo Nails •

Economy

BSH BUILDS

A MODERN DISHWASHER FACTORY IN ŁÓDŹ A cornerstone was laid in Łódź on October 15 for a new investment project by BSH in Poland a dishwasher factory to be built in the city. This is another such project in what has become one of Europe’s fastest-growing household appliance manufacturing centres.

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he foundation act was signed by representatives of BSH in Poland, President of the Board Konrad Pokutycki and Board Member and Branch Director in Łódź Oliver Giersberg, Łódź Mayor Hanna Zdanowska, Member of the Board of the Łódź Province local government Joanna Skrzydlewska, Vice President of the Łódź Special Economic Zone Agnieszka Sygitowicz, as well as representatives of Panattoni and Goldbeck, two firms which are responsible for the construction of the factory. The new dishwasher factory is being built in the vicinity of the recently opened BSH Logistics Centre in Jędrzejowska Street in Łódź. The existing dishwasher factory will be moved there and this space ​​will be taken over by the growing factory of washing machines.

This investment project is closely related to the dynamic development of BSH in Poland.

“We produce more and more, we export more and more, and thus, we need more and more space,” explains Konrad Pokutycki, President of the Board of BSH Sprzęt Gospodarstwa Domowego Sp. zo.o., BSH's subsidiary company in Poland. The new factory will produce, among other things, dishwashers equipped with the Home Connect system, a proprietary BSH solution based on the Internet of Things. Thanks to this platform, users can remotely manage household appliances and use an extended range of functions. A novelty for the factory will be dishwashers with a width of 45 centimetres. This product range will be manufactured in Poland for the first time. The extension of the scope of production will also

entail an increase in employment - ultimately it will be 1,500 jobs. The launch of production is planned for mid-2019.

Konrad Pokutycki also spoke about this investment project during the European Economic Forum in Łódź. “We have been associated with the city of Łódź for 24 years. The majority of our business in Poland, three out of six factories, are based here. At the moment, a major R&D centre is under construction with an area of 10,000 ​​ sq.m., where several hundred engineers will hopefully come up with many solutions that will be patented and will be introduced all over the world. Thanks to the new logistics centre with an area of 80,000 ​​ sq.m., BSH has found itself among the three largest

logistics centre managers in Poland. We have here our combined services centres, where another 600 people work. Today I am very pleased to say that we have just laid the cornerstone for the largest investment project in the household appliances industry, not only in Poland but also in Europe, a factory which will produce 3 million pieces of equipment per year.

I believe that with this, the largest household appliance factory in Europe, we have reached a new level of development. I am convinced that this is a historic moment. We have made Łódź and the Łódź Province the largest hub of the household appliances industry in Poland, and soon, also in Europe,” Konrad Pokutycki noted.

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Economy

INNOVATIONS – THE FUTURE OF THE POLISH ECONOMY THE INTERNATIONAL SMART GROWTH 3.0 FORUM (MFIR) WAS HELD IN UNIEJÓW ON 18-20 OCTOBER. ANDRZEJ KAZIMIERSKI

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his year's event followed on from its previous editions and focused on problems spanning innovation and the related investment projects. More than 100 guests from the various sectors of the Polish and international economies arrived, representing the worlds of business, science, local government and public administration. They exchanged experiences as part of 10 thematic blocks devoted to new technologies.

“From its very beginning, the Forum has placed strong emphasis on new technologies, both those already present on the market and those still in the making,” we were told by Damian Baran, Director of MFIR 3.0 Uniejów 2018. “We are stressing the need to provide professional support and promotional help to talented business and science visionaries who are working on inventions which are soon to appear on the market. We also appreciate the work of local government officials who, through dialogue with investors and local communities, are facilitating the thoughtful development of living and business spaces".

This year’s event was based on several thematic blocks devoted to issues such as the development and use of artificial intelligence, renewable energy, innovation in local governments, and human capital.

Also discussed were the importance of human capital for the growth of business and science, as well as leadership and the leaders of European funds.

Analysing Poland’s opportunities as regards participation in the development of the European economy in the block entitled "Strong In Europe – Open, Safe, Innovative Poland! – Discovering Polish Innovations", speakers talked about Poland's potential and innovative capabilities in science, the role of smart technologies in urban growth, industry, construction infrastructure, business, inventiveness, law, transport, the labour market, the role of local government in the age of digitisation, medicine, and the pharmacy of the future.

The panel discussionentitled "The Plan for Poland in Europe – Inventions Crossing Borders", with a debate on new technologies successful on international markets, brought in representatives of State authorities – Alicja Adamczak, PhD, President of the Polish Patent Office; science – Prof. Leszek Rafalski, Chairman of the Main Council of the Research Institutes, Prof. Rafał Ohme, psychologist from Maria Curie-Skłodowska University, and Zygmunt Krasiński, PhD Eng., from

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Jerzy Kwieciński, Minister of Investment and Economic Development receives the Polish Smart Development Award 2018 in the Man of the Year category from Damian Baran, Director of the International Smart Development Forum.

Józef Kaczmarek, Uniejów Mayor and Simo Mäkinen, Mayor of Sonkajärvi, Finland, a town twinned with Uniejów, sign an agreement on transferring the right to hold a world wife carrying championship to Uniejów.

Economy discussion identified three issues which could make innovative projects more implementable. First of all, we must overcome any reservations we might have as regards the deployment of such projects onto international markets. They can only be implemented through active cooperation between Polish and foreign businesses. Finally, we need was composed especially for the Museum to ensure and the recorded appropriate management of the risks associated with in 2004. theStańko’s introduction musicof can innovation be heard throughout technologies. the Achieving exsuccess solely hibition. on your Its first own performance is impossible accompanied today, argued theMr openNapolitano.

Two important events also took place incias part of the MFIR. The ing ceremony of the museum.

Stańko also wrote dental founders music forof many the Polish Polishfilms, Smart starting Growth in the Award 1960s, selected the Person of with the works by2018, filmmakers Janusz and Andrzej KondraYear naming as the laureate Jerzy Kwieciński, the Minister tiuk, of followed by animated films by Mariusz Wilczyński.

Investment and Economic Development.

The patron of the award Overis the last 15 years, with the help of his daughter the President of the Polish Patent Office, Ania, Alicja Adamczak, and the he ran professional the Jazz Autumn partnerfestival is the Silesian in the city Centre of Bielskofor Business Ethics and SusBiała.tainable It became Growth one ofat the the most Silesian important University jazz festivals of Technology. As stressed in in Poland, the explanatory recordings remarks, from which thecame Minister out under was granted the the award for “his ECM exemplary label. Such stars efforts as Ornette in the promotion Coleman, Chick of smart Corea, and sustainable growth Cecilin Taylor and Pharoah Sanders played at the festival. the Polish economy, based on new technologies and investments Stańko's music, and especially characteristic sound aimed at raising society’sthe standard of living.”

Reconstruction of an air purifier invented by the renowned chemist of his trumpet were easily recognised even by notalso featured the first The International Smart Growth 3.0those Forum and Polish President Ignacy Mościcki.

Polish exposition invention byhis Prof.

Ignacy Mościcki, former into jazz.

Over the courseof of an several decades personPresidentunchanged, of Poland.though It is anfull air-purifying for indoor use, ality remained of contrasts.machine The the Institute heofNew Fundamental York TimesTechnological once describedResearch, Tomasz Stańko Polish Academy artist himself and admitted the world's that infirst everyday device lifeserving he oscillated the function some- of smog removal. of Sciences;asand “a trumpeter business –of Ewa theSobkiewicz, spirit of freedom, President thought of the Associwhere between The incentive fury and lyricism. for this 1932 Theseinvention, extremes certainly designed by Polish President ation of Family and jazz.”

Initiatives, PerhapsKazimierz that is the best Murzyn, way ofPresident putting it. of the had Life considerable Ignacy influence Mościcki onin Stańko's his private musical laboratory style. Forat many the Royal Castle in WarScience Cluster Stańko Foundation, did indeed and symbolise Krzysztof the freedom Blusz, CEO of Polish of Synerise years, SA. this saw, stylewas hadthe distinctly respiratory veered disease toward of Marshal fury - someJózef Piłsudski. Recently, In her speech, jazz artists Alicja under Adamczak communism, stressed and how hisdifficult music was it was to times pro-romantic, at theSlavic request - but ofstill thefurious.

Patent Stańko Office, was, the device after all, has been reconstructthought-provoking. vide patent protection He to released new-technology a large number products, of albums as they at areaoften pioneer ofed free Europefor and Poland.

In the last dec- of the Internationbyjazz thein Centre Smart Growth, the two organiser illegally copied.

But since our input into international patent protecades of his life, al Smart his style Growth gradually Forum revolved 3.0 Uniejów toward lyricism 2018, with andthe OSSA Machinery home and abroad, gave countless concerts and thus became tion isthe lacking, our achievements fail toart gain recognition peace, as which Works first came acting through as its technological on the brilliant album partner.

“Litany” Following its presentation one of greatest ambassadors for Polish abroad.

He was as wide published by in 1997, is described by music those fromcomposer other countries.

This is despite us having products which in ECM Uniejów, thewhich reconstructed copy of thecritics device will be put on disa versatile and trumpeter with unique sensitivity, great turned have intuitionout and tohis beown successful sound.on Hearecorded global scale. and performed Take children’s • as seat one of the most history of jazz. It is play at beautiful the Royalrecords Castle in the Warsaw. with the belts formost instance prominent – they musicians eliminate such theasneed Krzysztof to mount Komeda, car seats and artistic tribute made after many years to the late Pola true Zbigniew are patent-protected, Seifert, Donnot Cherry, only in Jan Europe Garbarek, but also Dino inSaluzzi, the United States.

Gary A similar Peacock, success andhas Dave been Holland. enjoyed Heby never Polish judged "smart" anyone, glass, used in unlike many other oftesting his day.systems In fact, which in communist photovoltaics, and artists medical can, e.g. examine times, some musicians were members of what weretwo known as the nipples, and return complete results within hours. vetting commissions which ruled who an artist and who Krzysztof Blusz indicated that hiswas company’s technology-based was not –isnot based on in line with imposed and in 20 product covered by merit patentbut protection oncriteria four continents by the communist rulers.was possible because the talents of scientists countries.

This success andHe engineers never compromised had been forged the music into standards an actual he adhered productto, which then unlike many generated profits. of those Aswho he noted, sat on the thevetting market commissions. targeted byFor his company decades he was fortunate enough toinnovativeness enjoy a status which al-it a very atis the global market, where Polish makes lowed him to choose who he wanted to work with and which tractive partner. country Ewa Sobkiewicz, he wanted to who travelruns to. Ina 1976, smallhe family released business, a CD forsaid thethere were elite German over 1.8 million label companies ECM for the like first hers time. in It Poland, was called all with "Balladyplenty of interna." In the esting solutions 1990s, to and offer, in the but following hesitantyears, about heopening releasedup more to new prosrecordsdue under that label, including "Soul of Things", pects to limited financial resources and no "Lontano", onsite legal depart"Dark Eyes" (music from this album is used themarket soundtrack ments, which makes them vulnerable toin big players. In her of the US "Homeland" series), and “Suspended track on how to opinion, what such small companies need isNight."A information from thisand album -"Suspended Night / Variation viii" - found operate, some degree of protection from the State.

The panel discussionwas up by Giovanni Napolitano itself in an anthology publishedsummed by the world's largest educafrom for Transition and Developed Countries (TDC), tionalthe andDepartment research complex, the Smithsonian Institute.

Out Modernity II Martian rover was shown at the Forum. The rover won the top prize at a prestigious competition in the US. of the the World album’s Intellectual 100 works,Property there are only Organisation a handful of (WIPO).

European For him, the recordings. The idea of ​​this publication is primarily to showcase the greatest legends and innovators in the history of jazz. ish jazz and cinema music composer Krzysztof Komeda, Another album, "Wisława," was dedicated to the Polish Nobel whose soundtrack to “Rosemary’s Baby” remains a timePrize winner in literature Wisława Szymborska, with whom less classic. “Litany” contains a small anthology of KomeStańko had the honour to collaborate. His last album "December da's music performed by Stańko. It’s a veritable masterpie Avenue" was brought out last year. Stańko also wrote music for ce.

• the Warsaw Uprising Museum. The song "Freedom in August"

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Economy

INVEST IN A THERMAL SUITE IN UNIEJÓW AND PROFIT

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he Termy Uniejów Aparthotel will be the first such modern and multifunctional complex comprising hotel, conference, recreation and restaurant facilities, with auxiliary functions and access to thermal water.

The Aparthotel is to be opened in August 2019.

Over a 1.5-ha area in the best spot in the entire resort, directly neighbouring the thermal and pool complex (100 m) in spa zone A, a facility matching a 4-star hotel standard will be erected.

The Termy Uniejów Aparthotel is the first of its kind in Uniejów to accommodate sizeable business groups of up to 400 people. It is a response to the demand from large conference parties.

The complex will feature two five-storey buildings – one with restaurant and conference facilities and hotel rooms, the other one with hotel rooms, and, additionally, a recreation area with a swimming pool and sauna, a fitness room, a hall, and a reception area.

The restaurant and conference area will include 4 conference rooms. In the recreation section, a fitness zone has been designed with a recreational swimming pool and saunas, to be used exclusively by the hotel Guests.

The investor has also planned for the surrounding area to be carefully developed. This will include a children’s playground, a mini-golf course, and park alleys arranged into

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a layout with lawns and present greenery. There will also be other attractions for children, including a creative game zone, and, inside the building, a play room.

Aparthotel will be a 4-star property. It will include 172 standard rooms with an area of 26 m², a 30-m² studio, 35-m² high-standard rooms (including two extended rooms for the disabled) and 60-m² apartments. The standard furnishing for each room is a TV set with hotel functions, a phone, a mini-bar, a safe, an ironing board with an iron, and a coffee set. There are baths and hairdryers in every bathroom in the hotel rooms. All high-standard studio rooms and apartments have sofa beds. The apartments additionally come with home entertainment systems and espresso machines. Thermal water is supplied to the bathrooms in the apartments and high-standard rooms.

The wellness centre will have a swimming pool with a spacious relaxation zone and a terrace, a wet and dry sauna, treatment rooms, and a fitness area with cardio, free-weight and training zones.

The external area will be adapted for corporate barbecue meetings, outdoor banquets, and various types of events.

The complex will include sports equipment rental, an outdoor mini-golf course, a boule court, a children's playground, and an outdoor car park with video surveillance (60 parking spaces).

•

Events

FOOTBALL UNITES US

"Polish Market" interviews Senator MIECZYSŁAW GOLBA, a Member of the Management Board of the Polish Football Association and President of the Podkarpackie Football Association.

At the moment we are experiencing a slight slump but we have learned from our previous successes that sports, and football in particular, can do wonders for the country’s global promotion. What can we do to restart this process so it works like it used to?

When overhearing family chats at the table, the most common topics include football.

It is present in daily conversations, television, press, radio, the Internet, advertisements, in the courtyards, schools, and fan zones. It is ubiquitous, and has become an inseparable part of the Polish mentality. If you identify with a given club or national team, and football is your passion, you can feel a great many emotions when watching a game – from despair and anger to joy and excitement, and finally to real euphoria. Nothing integrates more than cheering and supporting a team together.

When your team scores a vital goal, people in the stands hug one another, even though they are complete strangers. Football is for everyone. All you need is people to play with, a ball, and some space. Today, there are many wellmaintained Orlik (eaglet) full-size pitches with artificial turf. I don’t think we are in a slump.

You need to support our players for better or for worse, celebrate their successes, and lose with dignity. You shouldn’t call yourself a true supporter if you stop acclaiming your team after a loss. What can you do to restart this process? In my opinion, the mechanism is still working, and we are dynamically going forward. Just take a look at football and how it has changed to be where it is today. A number of Sports Championship Schools and Football PM

Academies have been established, and we are training football players from an early age.

A great many football tournaments are being organised. Coaches are being trained on a large scale. All this has contributed to the growing skills of our players. We have still much to do, but we also have new ideas which will be gradually implemented. I am sure that this hard work will bring us success. Working with children and young people are among the greatest challenges faced by every sports club and every coach. This applies to techniques and tactics, as well as motor skills training. More and more young players have exceptional skills.

And when a player has the skills, he or she is aware of his or her value.

Recently, however, some analyses of the globalisation of sport have appeared stating that several countries monopolising the football market will dominate in football.

More and more broadcasts of increasingly attractive games are becoming available to the fans, which supports financially weaker clubs, leagues and whole countries. Will Polish football serve as a supplier of beginner gladiators for the arenas of the rich?

Among Polish football players there are many whose passion and skills bring glory to Polish sports, and who act as role models, not only for other sports people, but also for all Poles. Many talented sports persons show how to create a better country and society through sports. This year’s World Cup demonstrated that in football worldwide there are many young players who already today perform at the top level. The main stars of the tournament PM

were mostly younger than 23. UEFA created a list of the most promising players who are less than 23. It includes one Polish footballer. Szymon Żurkowski, a defensive midfielder playing for Górnik Zabrze, who was listed next to the young stars of football. “Hailed as the new Zbigniew Boniek, Żurkowski is a great Polish talent”.

As regards the other part of your question, you should take a look at the number of tickets sold, and attendances. Fan zones are also being created in great numbers. Despite our national team’s being based in some distant location, we accompany them spiritually by cheering for them. Football unites us, and we are together with them in front of TV’s, no matter what part of the world. This is quite a motivation for our players.

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Chemical Industry

AUTUMN 4.0 WITH THE POLISH CHA MBER OF CHEMIC AL INDUS TRY Industry 4.0 – Chemical Industry 4.0, a new project of the Polish Chamber of Chemical Industry (PIPC), is a response to the changes and new development directions being brought about by the fourth industrial revolution and its achievements. The project will be launched during a conference entitled “Industry 4.0 – Chemical Industry 4.0. Support Functions in the Chemical Industry,” to take place at the Mercure Hotel in Wrocław on 7-8 November.

“

The chemical industry has always been an innovative sector. Every day we are committed to continued growth and the development and implementation of new, ever better, solutions. Many of the solutions considered by various branches of industry as innovative, or 4.0, even if not explicitly referred to that way, have been used in our companies for years,” says Tomasz Zieliński, PhD Eng., President of the Polish Chamber of Chemical Industry.

Industry 4.0 and its related innovations are not some remote future ideas any more. For many companies, these are part and parcel of their everyday operations, and can constitute key elements in their strategic growth. While the chemical sector is one of the leaders in terms of applying innovative solutions, it is still facing many challenges related to innovation implementation.

“We know how important innovative solutions are for us. That’s why we want to talk about them, share best practices, and look for possible areas of cooperation – both scientific and business-related. At the same time, we strongly believe that even the best solutions require excellent environments and efficient support functions,” says PIPC President Tomasz Zieliński. “This is why in November we will be holding two complementary events about the theoretical and practical aspects of our everyday operations. The first is the launch of a new project ‘Industry 4.0 – Chemical Industry 4.0.’ And the other is the second edition of ‘Innovation in the Chemical Industry,’ our research and technology conference.

We would like to take this opportunity to invite all representatives of business, administration, scientific institutes, and the media to join us.”

This project will be the first in Poland to create a platform for producers, suppliers, and buyers of products and services. It will be an opportunity for networking, based on shared values and complementary needs, to facilitate collaboration. The exchange of experiences between practitioners from technical fields, which are crucial for the functioning and development of the chemical industry in Poland, is one of the major developmental challenges being faced by the sector as a whole.

The key areas to be explored during the November conference include new technology, automation, IT/ICT systems, cyber-security, equipment, logistics, investment projects, maintenance, advice, and Chemical Industry 4.0 personnel.

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Within the project, the Polish Chamber of Chemical Industry plans, for instance, to organise a series of expert meetings in 2019.

The other event to be organised by PIPC is the second edition of “Innovation in the Chemical Industry,” a research and technology conference to be held at the Regional Education, Conference, Library & Administration Centre of the Rzeszów University of Technology on 13-14 November.

“Innovation, research and continued development have invariably been the core elements of the chemical industry. But one of the key elements of successful innovation is close cooperation between business and science, including universities and research institutes.

It is there that many innovative solutions are developed, as well as implemented and regularly enhanced in cooperation with industry,” says PIPC President Tomasz Zieliński.

Innovation is a natural direction of growth for chemical companies. Its continued development is among the key challenges to be faced by the chemical sector in the next decade. The competitiveness of this branch of industry, regulatory requirements, customer needs, and market trends, all drive the continued development of the chemical industry in Poland. The conference is to promote the most exciting innovative solutions that change the way companies operate and build their competitive advantage, thus allowing them to exert considerable influence on the way the Polish chemical industry as a whole, and by extension its related sectors and the Polish economy, function and build their strong positions.

The conference programme will focus on seven areas – product innovation, process innovation, the production of basic and specialist products, technological innovation, innovation management, modern support systems for core operations, and actions to strengthen your competitive position.

This year’s conference will feature two panel discussions, one about innovation in the chemical industry in Poland (“The Development of Innovative Chemical Industry. Is There a Recipe for Success?”) and one on the protection of intellectual property (“How to Effectively Protect Your Ideas”). An equally important element will be talks by • the invited speakers on issues such as ongoing research.

Cybersecurity

Instytut Studiów Energetycznych Ltd. ul. Nowy Świat 51 lok. 8 00-042 Warsaw e-mail: office@ise.com.pl tel.: +48 (22) 629.97.46 fax/tel: +48 (22) 621.74.88

The Energy Studies Institute

A UNIQUE EXPERT AND ADVISORY CENTER FOR: ENERGY, OIL AND GAS SECTOR • CHEMICAL INDUSTRY • R & D SECTOR • NEW TECHNOLOGIES •

OUR MISSION:

• Acting in the broadly conceived energy, chemical and R & D sectors and in the area of technological investment projects, we want to serve as a place to exchange ideas about the energy industry in Poland and the rest of the world and the role of new technologies in economic development; • Our intention is to explain political, economic, social factors shaping the energy strategy and policies; • Our goal is to help entrepreneurs and companies achieve success in projects related to energy carriers and new technologies through education and business consulting;

www.ise.com.pl

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Finance

POLISH BANKING CONTRIBUTES TO THE MODERNISATION OF THE ECONOMY

In the following article written for “Polish Market” KRZYSZTOF PIETRASZKIEWICZ, President of the Polish Bank Association, takes stock of the development of Polish banks in the past 30 years, and looks forward to the future.

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e have built a strong, stable and modern Polish banking system through a joint effort. A measure of progress is the increase in own funds in this period from almost PLN 3,394 million to over PLN 200 billion, which means a several-fold increase in the possibility of increasing lending on the Polish market. We have used modern solutions in the payment and settlement system as well as in the customer information exchange system. Our payment system is one of the most modern in Europe and in the world. Over 36 million bank accounts are available online, 18 million individual customers use this option alone. They obtained a key to the bank and they have the opportunity to take decisions on making payment and settlement transactions from anywhere in the world with appropriate communications. Thanks to building a solid customer information exchange system, we have a good loan portfolio. For over 20 years, we have been registering all banking agreements, collecting information about customers'

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Finance

debts, counteracting their excessive indebtedness, and also providing competent advice for those who try to check whether they will be able to service their obligations.

As a banking sector, we went through a period of the biggest financial crisis since 1930, in very good style.

During the crisis initiated by the collapse of Lehman Brothers, the Polish banking sector disbursed several dozen billion zlotys to the state budget, increasing its own funds by several dozen billion zlotys. During the 10 years of the crisis the lending activity of the Polish banking sector increased by 48%. If we define the sources of success of the Polish economy in recent years, we can certainly claim that apart from a sound and responsible economic policy, both fiscal and monetary, a wellmanaged and supervised Polish banking sector contributed to the stable development of the Polish economy too. This is our joint success. The EU funds, which we obtained after joining the EU, also had their share in the success of the Polish economy. It is worth remembering that Polish banks played a very positive role in the distribution of these funds, and at the same time participated in the previous EU perspective in co-financing over 90,000 investment projects. Which means that in a skilful and responsible manner we were able to co-finance, invest, engage the resources of our depositors, who made their savings in banks in order to create many thousands of new jobs. Despite the great progress that has been made in recent decades, Polish banking, although stable and healthy, is of small size in relation to the needs of the economy and population.

If we compare the amount of own funds in relation to the Polish GDP, or the size of deposits or loans to GDP, in these statistics Poland is one of the last places in the entire EU. This means that in the coming years, we will have to make up for the arrears that arose after centuries of neglect or repeated interruptions in the process of building the material potential in our land. In order to maintain and develop the ability to finance the economy, it is necessary to adjust the regulatory policy towards banks, which are currently overloaded economically and bureaucratically.

Polish banking is not only modern but uses cutting-edge technologies and has excellent staff. It thus contributes to the modernization and restructuring of the Polish economy. It is with the participation of Polish banks, including cooperative banks, Polish agriculture has been modernized to a large extent. With the help of Polish savings, many agricultural producers export their products beyond the borders of our country. It was also with the participation of Polish banks that many companies of the strategic economic infrastructure of our country were built, like transport, telecommunications or energy networks. We are also proud that thanks to the cooperation of Polish entrepreneurs with the banks, many sectors of the economy have been modernized, for example: the chemical industry, the construction industry, the electronics industry or the furniture and household goods.

IN THE NEXT DECADE, THE POLISH ECONOMY IS WAITING FOR A GREAT PROGRAMME OF DIGITALIZATION AND AUTOMATION. BANKS THAT ARE LEADERS IN THE APPLICATION OF MODERN TECHNOLOGIES WILL SUPPORT THIS PROCESS BUT WILL ALSO CARE, TOGETHER WITH THEIR PARTNERS, TO ENSURE IT SECURITY.

Thanks to the cooperation between banks and state institutions, we managed to build, over the years, an efficient system of loan sureties and guarantees. In a country with such a large fragmentation and a specific structure of entrepreneurship, it is important that entities that want to start their operations and do not have adequate  security could take advantage of collateral from special financial institutions. Bank Gospodarstwa Krajowego plays here an important and positive role. Its actions together with cooperative and commercial banks bring much good for maintaining stable financing and development of the Polish economy.

In the following years, we will try to strongly promote the development of cooperation between Polish entrepreneurs, universities and R & D units. In this cooperation, we need to look for the successes of Polish companies that will sometimes have to undergo modernization or restructuring. In these areas, we can count on the design and implementation of new products and services that may be appreciated not only on the domestic market but also on other countries' markets.

In the next decade, the Polish economy is waiting for a great programme of digitalization and automation. Banks that are leaders in the application of modern technologies will support this process but will also care, together with their partners, to ensure IT security.

A special challenge for us is raising the financial knowledge of our society. That is why we are implementing a wide-ranging financial education program among children, youth and seniors. • 11/2018 polish market

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Medicine

A coordinated approach to the treatment of inflammatory

BOWEL DISEASES

You are the head of the Polish Society of Gastroenterology. Polish cardiology has made great strides in recent years. Is gastroenterology on the same level of achievement do you think?

We have fewer than 1,000 gastroenterologists in Poland. It’s not as big and influential group as cardiologists. But we have to remember that gastric disorders are second only to cardiac diseases in terms of incidence. Colon cancer is the most frequently diagnosed cancer. I would like to mention diseases which are very common like the irritable bowel syndrome, reflux disease or inflammatory bowel diseases, pancreatic diseases.

PM

So what measures are you taking to provide better care also in terms of prevention?

First of all, we are trying to improve access to endoscopy. This is because of the importance of screening for colon cancer. But it is also crucial to improve the diagnosis of stomach disorders through gastroscopy. We are working on that.

We are also working to improve the availability of more difficult procedures such as ILCP and endosonography, which is a very important diagnostic tool, especially for pancreatic patients.

Another very significant problem in Polish gastroenterology is the treatment of patients with inflammatory bowel disorders. When I started work some 15 years ago as a national consultant in gastroenterology, I noticed that this was really an area we should devote more attention to. In some other fields, we are almost at the same level of advancement as in other European countries, but at that time there was a big gap in the diagnosis and treatment of IBDs. That’s why I set up a Sub-Division of Inflammatory Bowel Diseases at this clinic.

PM

PM

I understand that your solution is to take an interdisciplinary approach toward dealing

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PROF. GRAŻYNA RYDZEWSKA, Head of the Internal Diseases and Gastroenterology Clinic at the Central Clinical Hospital of the Ministry of Internal Affairs and Administration, talks to “Polish Market’s” Rafał Kiepuszewski.

with these diseases. Could you explain what it involves?

The philosophy behind my unit, and behind initiatives taken by the Polish Society of Gastroenterology, is to develop a model of coordinated medical care for chronic patients with IBDs such as ulcerative colitis and Crohn’s disease. First we built this in our department and now we are trying to do the same in other departments. We are negotiating with the National Health Fund to launch a pilot study as of next year. Most patients with IDBs are young, 25% develop chronic diseases as children. According to medical statistics, in Poland some 75% of Crohn’s disease cases are patients under 35. So they are young people with a chronic disease. They need special care. They need easy access in case of a flareup, and they need special care during remission. In our clinic we have a hospital ward and an out-patients’ clinic in one place, we have the same doctors dealing with patients as well as specially educated nurses as a first contact.

We have psychologists working with us, we don’t refer patients elsewhere, we have a dietician, we co-operate very closely with surgeons. We also work with consultants, like gynaecologists because our young patients want to have children and we consult them during pregnancy. We also have dermatologists working together with us.

How has the success rate improved as a result of this interdisciplinary approach?

That’s the first question they asked me at the health ministry. Of course, we know that for sure things will improve. Two years ago we asked experts from the Łazarski University in Warsaw to compile a report about gastroenterology in Poland, especially the IBD field. It emerged from the report that a lot of funding is spent in various small out-patient clinics PM

that deal with narrowly conceived diagnostic procedures and treatment. What we need is to pool our resources to offer much better care in some 20-30 well-equipped clinics with a coordinated approach. It will be much easier to optimise treatment. Actually, we know it is already working in the UK, Belgium and other countries, and it’s very cost-effective.

Do Polish patients have access to the latest treatments in your field?

Patients have access to drugs such as infliximab, adalimumab, to some tumour necrosis factor inhibitors. We now deal with biosimilars which are far less expensive. One drug is funded by the state for ulcerative colitis, but not Crohn’s disease. We believe that in the new model we can streamline the use of resources and thus introduce new treatments.

PM

What’s the contribution of Polish gastroenterology to world medicine?

We have very good research going on in endoscopy, oncology in cancer screening, pancreatology. I am currently serving as a member of the council of the International Association of Pancreatology. There are also some new publications in the IBD field. Research on liver diseases is also bringing good results in Poland.

PM

What is still lacking in Polish medicine to make your dreams a reality?

We need better organisation of health care, more spending on it, better access to diagnostics and treatment. But the main problem is young people who are less keen to study medicine and those who do often think of moving abroad. What we do in gastroenterology is we are trying to attract young people to this field.

We have a ‘rising stars’ group with one prominent specialist taking care of it, we have funded scholarships for them.

• PM

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Medicine

DOING OUR BEST TO ADVISE AND HELP PATIENTS In this edition of “Polish Market,” we return once again to a unique place where talent, work and the latest technology meet. Medicine, cosmetology, including laser therapy, are combined here with one goal - to achieve perfect beauty and keep the body fit. Jerschina Face & Body Clinique works in cooperation with the Luxmed Group. Based at 162 Aleje Jerozolimskie in Warsaw, it is run by BARBARA JERSCHINA M.D, an expert in the field of aesthetic and anti-aging medicine and weight loss.

J

erschina Face & Body Clinique is one of the most recognisable brands in the category of full-sized, versatile aesthetic and anti-aging medicine clinics.

It is distinguished by its care for the highest standards and dynamic pace of development. For its patients, it is synonymous with reliable treatment and advice. For medical doctors and nurses, it offers development opportunities, training, and continuous improvement of skills.

"We have a qualified team that is constantly improving its skills. We approach the client holistically. When someone does not feel they look well, treatment alone will not help if it is not supported by a suitable lifestyle change adapted to their biological clock. We provide our patients with new forms of therapy, we introduce premier treatments. Therefore, we do not hesitate when we have the opportunity to send our doctors to international training courses and congresses. We are in constant motion - we are tracking market

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Medicine

novelties, developing the skills of doctors, we are looking for new people with a fresh, honest approach to aesthetic medicine, anti-aging medicine and its prospects. At the disposal of our patients we have all kinds of traditional treatments such as mesotherapy. We offer an increasing range of products, fillers based on hyaluronic acid, all kinds of peels, equipment for exfoliating skin, for revitalisation. We offer top shelf equipment - the most modern and very effective technology, such as Light Pod Neo - a modern US laser that has a number of uses such as sealing vessels, treatment of discolorations, acne treatment, laser hair removal, treatment of onychomycosis and psoriasis. This is the first laser that works on psoriasis, the only one in Poland. It is very safe, but also strong. We also offer, for example, ultrasonic lifting technology, face and body modelling, drainage suits that provide pneumatic drainage plus magnetic field therapy. We are very selective in picking brands of products we apply. They are the best professional products that can be used at the clinic, but there are also home care products.

We also build our own therapeutic programmes that allow you to achieve optimum results by using and combining all available solutions. That's why our range of services includes so many packages combining laser therapy with injections and high-tech cosmetology. The lasers I work with broaden my field of activity. However, even the most innovative laser is not enough unless it is in the hands of a professional.

That is why at my clinic, our staff – doctors and nurses – are the most valuable asset. We believe in people, we value people and, above all, we need people," doctor Jerschina says.

She adds: "A frequent problem in aesthetic procedures is the fact that patients come to the doctor with very specific expectations. Unfortunately, quite often in various clinics, those responsible for sales try to achieve the best sales result at all cost without paying any attention to medical considerations. Patients fall into the trap of reading the offer, they feel that everything is good for them. However, there is a very fine line between what’s good for you and what can make you look ridiculous. I openly tell patients what treatments are not for them. Because a wise doctor always tries to give advice and help. Our patients are getting younger and younger – 20 or just over 25, when the first signs of aging are already present. But one thing is clear. Only medical professionals are authorised to interfere with the human body, we work on a living organism. Patients themselves must also understand that their safety is the most important. You can buy a pair of shoes or a car at a reduced rate but do not let those who are unprofessional tamper with your face. A beautician or hair stylist, for example, who injects hyaluronic acid, certainly exceeds their powers. Two necessary conditions are not fulfilled – the procedure is not performed in a designated and adequately prepared place, and it is not done by an authorised person."

The medical industry in Poland is increasingly perceived as a potential showcase of Polish innovation in foreign countries. It is often said that the potential of the most talented doctors and best managed facilities should be developed, because their successes can bring benefits to the entire economy. In the case of the Luxmed Group and the Jerschina Face

& Body Clinique, this transfer of knowledge from science and medicine into the economy appears to be an important part of the development strategy. So how does doctor Jerschina define innovation? How does she assess her cooperation with the Luxmed Group? "I think that most people believe that innovation is the invention of a tool or apparatus. In fact, innovation means the way the invention is introduced into the way we function. Self-improvement and well-conceived innovation lies in the ethos of the medical profession," says doctor Jerschina.

“The Luxmed Group is the leader in the private medical care sector in Poland and it is part of an internationally recognised organisation serving 32 million patients in over 190 countries. The main goal of the Group is professional assistance, covering the entire healthcare process - from diagnostics to comprehensive treatment, including hospital care, from basic medical care to specialist care, rehabilitation and care for the elderly. Luxmed is definitely a dynamic company with lots of experience. It is building more and more new outlets, and has ideas for development. Our cooperation with Luxmed is proceeding very well. The group offers us a good location in Aleje Jerozolimskie in Warsaw.

And above all, it offers our patients security. We have their support, notably when it comes to the organisation of work.

And we have been operating in partnership with them since 2010. I hope that this cooperation will continue to develop," says doctor Jerschina. “I have never planned any career path. I look upon the things I have achieved in life with humility, as a kind of gift. I accept challenges with openness and courage. I have never sought specific positions, I did not plan my success. The fact that I found myself in the Luxmed Group, and that in 2010 I opened my own clinic, I think it is simply a consequence of my journey. I took my first steps as a medical doctor at the Cardiology and Internal Diseases Clinic at the MSWiA Central Clinical Hospital in Wołoska Street in Warsaw. My next step was the Cardiology Clinic of the Medical Centre for Postgraduate Education in Grenadierów Street. I was surrounded by a great team of experienced doctors who taught me a lot. They were true professionals, and they had been trained to train others. My work there was extremely fruitful, and the training process was very intensive. I gained my further medical experience at the Nephrology Clinic at the Banacha Street hospital, while working in LuxMed as a duty doctor, also a GP. In 2005, director Edyta Witkowska and I took over the clinic in Aleje Jerozolimskie. But in 2003 I had already started work in the field of aesthetic medicine. In 2010 I decided to devote my attention to it full-time and to open my own clinic. We started out with one surgery, now we have four. Here we have the opportunity to perform a number of treatments, several of them at the same time. As I have already pointed out, everything is done under the watchful eye of specialised doctors who have experience in all aspects of the increasingly professional medical market. If our patients decide to approach the clinic, they must have a 100% guarantee that they will come to no harm, because everything we do it top-notch,” doctor Barbara Jerschina • concludes.

Jerschina Face @ Body Clinique, Compensa building, 162 Al. Jerozolimskie, Warsaw.

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CM

Cultural Monitor

IN THE NOVEMBER EDITION OF THE CULTURAL MONITOR WE FOCUS ON SOME GREAT NEW POLISH MOVIES AND A VARIETY OF MUSIC STYLES ON NEW CDS. THE LATEST AWARD-WINNING PRODUCTIONS AND RECORD RELEASES ARE REVIEWED FOR YOU BY MACIEJ PROLIŃSKI.

AT THE MOVIES

Still from the movie “Cold War”

Still from the movie “Cat and Dog”

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The Academy Award committee led by the Oscar winning composer, Jan A.P. Kaczmarek unanimously chose the film “COLD WAR” BY PAWEŁ PAWLIKOWSKI for the Polish Academy Award candidate in the “Best Foreign Language Film” category. It was described as an accomplished artistic, universal story of impossible love set against the backdrop of Poland’s turbulent 20th century history. The film by Pawel Pawlikowski captures your attention with consummate acting and unique use of Polish folk music motifs. We keep our fingers crossed because Pawlikowski made, without a doubt, a beautiful, moving, artistic film, with one of the most riveting and enchanting climaxes in the history of Polish cinema, at least of the last three decades.

At the closing of the 43rd Polish Feature Film Festival in Gdynia, Paweł Pawlikowski's film “Cold War” won, in line with expectations, the main prize of the festival - the Golden Lions award. It is also worth noting some other moving, important, artistic and socially rooted Polish films which won awards in Gdynia, such as: “THE CLERGY” BY WOJCIECH SMARZOWSKI, “7 FEELINGS” BY MAREK KOTERSKI (the Jury’s Special Award), and “CAT AND DOG” BY JANUSZ KONDRATIUK (awards for a supporting female role - Aleksandra Konieczna, award for supporting actor - Olgierd Łukaszewicz) which had not been released before the festival. “The Clergy” zooms in on the Catholic Church, showing topics uncomfortable for the Church establishment, which have often been swept under the carpet, such as greed, paedophilia, loose morals. It also focuses on the role of religious faith in general. All this is shown through the lives of three priests. Actors Arkadiusz Jakubik, Robert Więckiewicz, and Jacek Braciak give stunning performances in the main roles. The film has stirred plenty of controversy at home, with some movie theatres refusing to show it.

In the film "7 feelings" the main character of all Koterski's films - Adaś Miauczyński - returns to his childhood, when - like most of us - he had a big problem naming emotions he felt.

The latest film by Janusz Kondratiuk is a touching and intimate picture of family relations inspired by a real story. When his older brother Andrzej, a cult Polish filmmaker, suddenly falls ill, the younger one, despite a wall that exists between them, will take care of the brother in need. As usual in Kondratiuk’s world, we experience what we have already gone through or what awaits us later in life. There is no pathos, there is just a simple story about the things that matter the most in our lives.

Cultural Monitor

JERZY MAKSYMIUK, JANUSZ OLEJNICZAK “RETRO” - AGORA - CD

NEW MUSIC RELEASES

Janusz Olejniczak - an outstanding pianist and music teacher, winner of the 6th prize at the 8th Fryderyk Chopin International Piano Competition in Warsaw in 1970, and Jerzy Maksymiuk – described by Olejniczak as a music genius, one of the most important personalities in Polish music, a conductor, as well as a composer and pianist. At a party, they sat together at the piano, to dedicate a music trifle to the host of the reception. Then another one followed, and now we have the whole album - "Retro." It features 15 miniatures by Maksymiuk for two pianos, in which one can hear artistry, passion and feeling. On the album you will find the tango, waltz, Charleston, and a few enchanting songs to lyrics by Ewa Piasecka-Maksymiuk, affectionately performed by Kasia Moś. It all takes us back to the time when families sat down around at the piano to share a musical feast or simply to enjoy each other’s company.

“ZBIGNIEW SEIFERT - POLISH RADIO JAZZ ARCHIVE” - POLISH RADIO - CD The Polish Radio Music Agency discovers more and more exciting, forgotten and unknown archive recordings documenting some of the best and unique jazz sessions of the past. As No. 34, an album has been released devoted to the legend of Polish jazz, violinist and saxophonist Zbigniew Seifert (1946-1979). This is a particularly important release, because Seifert's discography is not very extensive, and his top albums were mainly released outside Poland. This album contains recordings from three different sessions - the main ones are recordings from a concert at the Krakow club “Pod Jaszczurami,” which took place in November 1978. Seifert is accompanied by his quintet (Zbigniew Seifert - violin, Jarosław Śmietana - guitar, Janusz Grzywacz - electric piano, Zbigniew Wegehaupt - double bass and Mieczysław Górka – percussion.) The whole team shows consummate jazz skills, perfect teamwork and individual approach to the topics. The feeling is good both in moody songs and fast-paced numbers. Seifert plays some outstanding solos, as always giving the collection his original, own imprint.

PIOTR SCHMIDT QUARTET – “SAXESFUL” - SJRECORDS - CD Piotr Schmidt is a talented young jazz trumpeter. He is also a music producer, publisher, lecturer, among others at the Academy of Music in Katowice. His tenth album release, recorded with a host of excellent Polish saxophonists (including Jan Ptaszyn Wróblewski, Zbigniew Namysłowski, Maciej Sikała, and Piotr Baron), contains versions of the greatest jazz standards, including: “Summertime,” “What A Wonderful World” and “Stella by Starlight.” These standards do not lose any of their artistic values such as spontaneity and lyrical qualities. They sound just as fresh and captivating as when they were first written. They still make audiences get away from the daily grind and search for the unattainable. The leader of the project has taken care of everything. He brings out the best in the classics and the best in himself and his fellow artists. It’s an album you are bound to listen to again and again.

“KARIMSKI CLUB FOR CHILDREN” - AGORA - CD It is a new release by the international music collective Karimski Club, founded in 2004 by Karim Martusewicz - a bass player in the leading Polish rock band Voo Voo. On this album, the performers of vocal parts are mostly children, and the main role in the project is played by Karim’s son - Nelson. The kids sing rock and pop songs inspired by folk music coming from different cultures. The performers are treated very seriously, although at the same time, nothing is smoothed out and everything sounds perfectly spontaneous. The children just sing how they feel. It's not just an album of music for kids. It is also part of a pro bono undertaking in support of children in need. The entire proceeds from the sale of the album will go toward the Fundacja Spełnionych Marzeń (The Dreams Come True Foundation). In support of the initiative, such well-known Polish singers and actors as Patrycja Markowska, Grzegorz Markowski, Szymon Majewski, Tomasz Organek, Bartłomiej Topa and Maciej Stuhr joined the recording sessions.

ANTEK SOJKA – “IN THE SKY” - AGORA - CD A debut album by Antek Sojka, son of the legend of the Polish ballad, the famous vocalist and composer Stanisław Sojka. It contains eleven original songs, mostly in a ballad style, in which you can find many different flavours and colours. The combination of subtle and sophisticated electronics, with traditional piano instrumentation gives you a sense of depth right from the start. The album will surely be appreciated by more demanding music lovers. I recommend it to all those who like their music to be subtle, original, warm, with a bit of melancholy. Soyka, as a song writer, uses uncomplicated, straightforward language, and as a composer he uses his ability to write music that flows very smoothly. The vocals are clear and delicate. And you cannot escape from comparing it with his father's voice.

This debut release leaves you hopeful that independent Polish music can come up with a few surprises in the future and that this rising star is only at the outset of his career.

PAUL SIMON – “IN THE BLUE LIGHT” - SONY - CD Paul Simon - one of the most eminent US singers and songwriters bids farewell to his concert audiences. His “Homeward Bound Farewell Tour” ended in September and his new album “In The Blue Light” is released this autumn. It features ten of his favourite (though less known) songs. We find here such gems as “Pigs, Sheep and Wolves,” “The Teacher” or “Rene and Georgette Magritte with Their Dog After the War.” Produced by Paul Simon and Roy Halee, who has collaborated with him since the 1960s, the album has an amazing aura. The artist is joined by a team of top musicians. Together they have produced fresh versions of the familiar songs. Among the many artists are such jazz icons as trumpeter Wynton Marsalis, guitarist Bill Frisell, drummers Jack DeJohnette and Steve Gadd, as well as the New York chamber band Music. Paul Simon’s message is just as timeless and intercontinental as it was back in the days of flower power. It strikes you with its maturity, artistry, restraint, discipline and sheer poetry. Just like in his touching finale when he asks with a bit of nostalgia “who believes in angels?”

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Culture

WARSAW FOR INDEPENDENCE, FOR PADEREWSKI A concert entitled "Capital of Freedom" and a performance of the monumental symphony "Polonia" by Paderewski at the National Philharmonic on October 30 will inaugurate the 5th International Ignacy Jan Paderewski Festival. It is part of a series of commemorative events marking of the 100th anniversary of Poland’s rebirth as an independent state, of which Paderewski was one of the main architects. The aim of the festival is to promote the achievements the great Polish patriot, world-renowned artist, Prime Minister and Foreign Minister, Knight of the Order of Virtuti Militari, Honorary Citizen of the Capital City of Warsaw - Ignacy Jan Paderewski. For the 5th time, the event is held under the patronage of “Polish Market.” Maciej Proliński has the details.

“

If he hadn’t been a great pianist, he probably would not have gained access to top world politicians of the day to do so much for Poland as he did,” Wiesław Dąbrowski, the originator of the idea of the Paderewski Festival says. “His achievements in the field of artistic, diplomatic, political and patriotic endeavours were truly exceptional, and in terms of his music skills, he was a true genius." Wherever he went, his magical piano playing evoked enthusiasm among large audiences. He met with admiration, won applause, prestige and respect. As Poland’s first Prime Minister, Paderewski, who was a polyglot (he spoke five languages), negotiated with French, Italian and UK government ministers and US President Woodrow Wilson on the terms of the country’s re-emergence as an independent state. He was supported by prominent politician Roman Dmowski, As the head of the Polish delegation, he signed the Versailles Peace Treaty, restoring Poland to the map of Europe after 123 years of non-existence. The anniversary of this moment in history has inspired the organisers of the concert "Capital of Freedom," including the History Meeting House, to pay tribute to those who contributed to Poland’s rebirth, in particular to Ignacy Jan Paderewski.

Paderewski's symphony “Polonia” was conceived to serve the national cause, and not just as an art piece. “That is why we chose this piece for the concert at the National Philharmonic - which was built thanks to donations by Paderewski and entrepreneur Kronenberg. The event will be held in the Polish capital which has always been invincible," Wiesław Dąbrowski says. Dąbrowski is President of the Ave Arte Foundation, director, screenwriter, and organiser of many notable cultural events. Paderewski's Symphony in B minor "Polonia" op. 24 was written on the wave of the artist’s patriotic sentiment, as a memory of his family home in which the belief that Poland would one day be reborn

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was cultivated. This outstanding work has true panache. The composer demonstrates his skill in every little detail, and he handles this enormous job extremely well. It took Paderewski six years to write, beginning in 1903. Its completion allowed Paderewski to fulfil his lifelong dream to commemorate the 500th anniversary of the victorious battle of Grunwald in 1410, in which Polish king Władysław Jagiełło defeated the Teutonic Knights. In his symphony, Paderewski paints a picture of the stormy history of the Polish nation, its struggle for freedom, numerous defeats and hopes for a revival. During the concert on October 30 in Warsaw, the Polish National Radio Symphony Orchestra in Katowice will be conducted by maestro Jerzy Maksymiuk, one of the greatest conductors in this part of the world. "For years, I have been trying for this symphony to be given justice. I believe "Polonia" is the best Polish symphony of the 20th century. (...) I have written a 100 page article to prove that Paderewski is a composer equal to Mahler. It may sound a bit exaggerated, but you really have to admire this work. (...) I do not know of any other piece of music that would stir our sense of patriotism in such a simple and moving way. The second movement is elaborately built, it has great climaxes. Vocal parts in the third movement have a great emotional intensity. And Mahler would be envious of Paderewski’s march. It is very powerful, it has references to our tragic history, heroism and bravery. There is also a motif of the national anthem. It is disguised because we were still in captivity. But maybe this was an expression of the artist’s commitment guiding his entire life. In a nutshell, "Polonia" is a work of great merit, which should be performed as often as possible," Maksymiuk told us in 2014 when “Polish Market” was the co-organiser (together with the Teatr Wielki - Polish National Opera) of a gala concert where the main attraction was Paderewski’s "Polo• nia" symphony.

Events

WOMEN’S ENTR EPR EN EUR SH I P

I N TH E SPOTLIG HT A book entitled “The Entrepreneurship Ambassador in Poland. Never Give up!” has been published to mark the international Women’s Entrepreneurship Day on November 19. It is available in the Polish and English language versions. On the front cover, the authors thus describe the subject matter of the publication: “Find out the entrepreneurial mind-set of 21 outstanding businesswomen.”

T

he book is the result of collaboration between women entrepreneurs who wrote it to inspire and help other entrepreneurs to persistently achieve their goals. The co-authors described their personal experiences, unexpected failures and measures taken to remedy the situation. They also answer some important questions: What is entrepreneurship?

What is the entrepreneurial way of thinking today? How did entrepreneurs such as Thomas Edison, Henry Ford, Walt Disney and Steve Jobs cope with failures in business? What did the Gallup Institute's long-term study tell us about success? Which way of thinking turns out to be effective in Polish business realities?

The publication contains previously unpublished real stories of 21 prominent women who are Entrepreneurship Ambassadors in Poland. Among those featured in the book are: Beata Drzazga, founder and President of Betamed, Anna Kolisz, founder and Vice-President of Ankol, Sylwia Mokrysz, Proxy of Mokate, all recently featured in “Polish Market.”

The authors of the book show, on their own example, how entrepreneurs think in crisis situations, in what way their longterm vision, precise goals and self-discipline have contributed to their success. We find out how they built their own recognisable brand and won a large group of regular customers, what helped them to persevere and be unstoppable, to turn failure into success over time. These inspirational stories will help entrepreneurs adopt the right frame of mind to conduct

business in Poland. In the pages of this business guide, Entrepreneurship Ambassadors encourage others "never to give up, because if you go through the worst moments, it means that you deserve the best."

Urszula Ciołeszyńska, the originator of the book is founder and President of the International Network of Women Entrepreneurship Ambassadors Federation of Associations, Women's Entrepreneurship Day Ambassador in Poland. The Women Entrepreneurship Ambassadors Foundation is a non-governmental organisation that brings together women who are successful in running their businesses and engage in non-business social activities. Urszula Ciołeszyńska is determined to show through the publishing project that women have their own vision of entrepreneurship, which does not mean that it is a better one. “We do not wish to compete with men, quite to the contrary. We do need men a lot because we complement each other. Women are more emotional, which does not mean that they are less professional. I reckon that in a world which is increasingly veering into virtual reality, emotions matter more and more. I believe that there is something we can describe as a female management style. In family-run firms, men are often responsible for the technical side and women make sure that products are attractively packaged and that all necessary procedures are followed. They look after quality. Partners thus do not tread on each other’s toes, they complement each other thus creating • a complete product,” Urszula Ciołeszyńska says.

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Ecology

IN SEARCH OF A SLICE OF BREAD

B

akers encourage consumers to buy their products by placing the “leavened bread” slogan in their shop windows, but opposing voices can be heard, and we will mention them in a minute, as information that the prices of baking products have increased by 30% this year is more important than the linguistic issue. We might expect that higher prices would imply higher quality, meaning real craft bread prepared with the utmost care.

This is where the principles applied by the Research Institute of the Bakery Industry in Bydgoszcz, the Sadkiewicz Institute (Zakład Badawczy Przemysłu Piekarniczego w Bydgoszczy, Instytut Sadkiewicza), a member of the “Polska Ekologia” Association, come in. An important assessment has been voiced by a representative of the cereal, mill and bakery sectors, a promoter of the “From grain to loaf” idea, Dr Józef Sadkiewicz. In his most recent interview for the Mistrz Branży web portal, Dr. Sadkiewicz affirms: “There is too much wheat bread on the market, while there is a shortage of real rye bread, wheat and rye bread, and wholemeal bread, which tastes better than wheat bread, and is more desirable for health reasons. I show how to determine whether bread is well-made based on its appearance, and remind you that it is enough to have only 1-2 slices of bread a day, preferably wholemeal bread, due to its high fibre content, but it must be well-acidified, not sour. Children should learn the principles of a balanced diet from the earliest years spent at school. It is a paradox that while we have wide access to various types of food, our everyday diets are dominated by a few products only. Children tend to stick to a bread roll with butter, ham, cheese, and an occasional tomato in the summer, rarely touching other products.”

According to a survey carried out by GFK, 70% of consumers declare that they buy baking products every day or almost every day. This most often pertains to families with children (80%). Young people eat baking products on average 17 times a week. Nearly 80% of children take homemade sandwiches to school, while approx. 30% have bread rolls, sweet buns or (unfortunately) doughnuts.

This sad picture can be completed by shopping in chain stores and supermarkets, and so Czesław Meuss, another bakery-industry expert, an

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experienced consultant, and the pillar of the “Polska Ekologia” Association, is right to say: “Polish bread has shifted in the direction of substitutes!

This is usually mass-produced bread made with artificial enzymes and other additives which preserve the particular baking product. Another disturbing development is the introduction of spelt bread, or bread made of other relict crops but obtained through conventional cultivation, so the properties of such flour are not as good as in the case of ecological farming (e.g. low gluten content).

But which bread is the real thing? In an interview for Mistrz Branży, Dr. Józef Sadkiewicz recalls: “The older generation of Poles remember the aroma and the appearance of real bread, while the younger generation do not have a clue. And bakers have the ability to influence the eating habits of their customers. I’ve been trying to persuade people working in the baking industry to produce smaller loaves of bread than they currently do, and smaller bread rolls. The smaller the size of the product, the more delicious it is. 20 years ago, I introduced small bread portions, which have a reduced pulp-to-crust ratio. This baking product is long, as it is baked in tins similar to those used for baguettes, but the difference is its rectangular shape. The whole flavour is locked into such small pieces of bread! Besides, this plays on our minds – after having 2-3 slices our organism will say ‘enough’. A baker’s shop is also a place where normal nutrition can be promoted together with a fashion for a healthy lifestyle.”

As Dr. Sadkiewicz points out: “BIO products mostly attract people passionate about the issue as it is not easy to grow crops without any artificial fertilisers or pesticides. Farmers who grow old crop species deal with huge biodiversity and a large number of plant varieties; some crops are more prolific than others, some have a higher gluten content than others. Still, regardless of these differences, every grain has its benefits.

Producers of ecological crops are beginning to look at their products from a different perspective, because they are better and tastier than the conventional ones; it only needs perfecting in such a way, so that it is not impaired.”

Conclusions? Let us choose the sources of our daily portion of health • wisely.

BIO BAKERY

Ecology

# a recipe for a baking sensation # healthy bread loaves # Napoleon’s snack # baker's poetry

A

lthough the number of bakeries is falling, some bakers have created excellent growth opportunities by providing highquality baking products. This is the route being followed by bakers and bakeries from the “Polska Ekologia” Association.

The Kiełtyka organic bakery in Lężany near Krosno can serve as an example here. What does being an organic bakery mean?

Marek Kiełtyka explains:

“SOME PEOPLE MIGHT SAY ‘WHAT’S THERE NOT ECO ABOUT BREAD’?

AFTER ALL, IT’S JUST FLOUR, WATER AND YEAST! TRUE… BUT NOWADAYS BAKING PRODUCTS CAN HAVE AS MANY AS SEVERAL DOZEN INGREDIENTS! The challenge lies in the input material. For me, the moment we bought the first bag of organic flour was the decisive one. When we opened the bag, we could sense a totally different aroma from that of a mass-produced flour. I could simply smell crops, just as if I were there, in the middle of a field. My father and I thought that it was amazing. I still remember the first product we made from this flour. It was a bread called Chleb Gosposi, which we are still offering today, and it tastes unbelievably delicious with ecobutter made by the Jasienica Rosielna District Dairy Cooperative.

I will never forget that taste.

We are glad that there is a growing awareness among our customers who know that “you are what you eat.” We need to return to nature, to natural processes, without artificial acceleration, without additional processing of food products. For over 20 years we have been trying to act in line with craftsmanship ethics. Both my father and I are master craftsmen in baking – we are members of the Crafts Guild in Krosno, and we educate future bakers in cooperation with Schools Complex No. 2 in Krosno. Today, we can say that the second generation of bakers is running the business, as I run it together with my wife Agnieszka, with huge support from our older family members.

In 2014, we expanded our portfolio of certified organic products by a further dozen items. Now they not only include bread, but also snacks, biscuits and rolls. We are cooperating with several dozen stores selling ecological products across Poland. Clients can buy our products during Bio Bazar organic-food fairs held every week in Warsaw and Katowice.”

In fact, they are addressed to the most demanding customers and those looking for something extraordinary. Take the “Organic grain bomb” bread („Eko ziarnista bomba”) for example. It is bread without flour, but with linseed, sunflower seeds, psyllium seeds (which reduce the feeling of hunger), and oat flakes. Its

expiry period is 7 days. In short, a “bomb” of health. People who prefer three things in one can choose rye and wheat bread with sauerkraut and onions. Those who are trying to lose weight can choose “Organic bread filled with grains” („Eko chleb ziarnami nasycony”) with amaranth and sesame seeds. Amaranth, due to its high nutritional value, is also referred to as a 21st-century crop, though it was the basic food for the Incas, the Maya, and the Aztec people, 4 thousand years ago. It is defined as food “which can satisfy your hunger, but does not make you fat.” It is worth noting that the product has been awarded the title of “The Favourite Bread of Krosno Residents.”

But our range of products is much wider. We also have emmerwheat bread, buckwheat bread with Herbes de Provence, rice and millet bread, 100% spelt bread, oat bread, and “mountain bread with kefir”. Those who should avoid gluten, but like sweet things, may try our poppy-seed cakes, dried-fruit cakes, gingerbread, coconut biscuits and sponge cakes, all without eggs, sugar or fat.

“Italian” grissini-style bread sticks are one of our most interesting snacks, which are said to have been one of Napoleon’s favourite foods.

You could get the impression that these healthy products are not made at the bakery, but at the back of a gourmet dietician’s office!

To sum up, I have one more remark concerning the choices we make every day. Where should we buy our bread? Since Stanisław Butka, Head of the Polish Bakery Crafts Association (Stowarzyszenie Rzemieślników Piekarstwa RP), says that customers going to bakeries must reach deeper into their wallets, and that we have experienced the first price increase by 10-15%, and, as he predicts, “if the trend continues, we can expect further price increases” (due to the increasing costs of crop purchase, fuels, energy, and other production costs), we might as well choose real bread. And finally, here’s a maxim worth remembering: Afraid of bread rolls full of artificial preservatives? Buy only at the baker’s. A trusted • baker”.

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ANKOL

AMBASSADOR FOR THE POLISH ECONOMY

GLOBAL AVIATION SUPPORT EXPORT – IMPORT of goods, services and technologies for the military and civil aviation sector

QUA L I T Y C O M PE T E N C E STA N DA R D S ANKOL is a trading company operating in the aviation sector since 1991. The firm is a leader in deliveries of equipment and repair services for military and civil aviation on domestic and foreign markets.

High quality of the goods and services offered and modern management based on international standards underlie the company’s successes. Ankol is an innovative and reputable company working on the global market.

fot. Hesja.pl

INNOVATION LEADER ANKOL Sp. z o.o.

Chorzelów 244, 39-331 Chorzelów ankol@ankol.com.pl

www.ankol.com.pl

Economy Economic Monitor

Economic Monitor November 2018 Jan Mazurek, Michael Ström / Brokerage House

Key economic trends The condition of the Polish economy is good, but recently there have been signs indicating a deterioration in economic conditions.

According to revised estimates made by Statistics Poland (GUS), Poland’s gross domestic product (GDP) grew in 2017 by 4.8% in real terms. And World Bank experts have recently estimated that the Polish economy Source: Statistics Poland (GUS)

Source: Statistics Poland (GUS) and National Bank of Poland (NBP)

will grow this year by 4.7%, which represents a significant upward revision from the Bank’s April projection of 4.2%. But according to the World Bank’s new forecasts, the Polish economy may start slowing down – to 3.9% in 2019 and 3.6% in 2020.

There are good reasons for the downward growth revisions for the next years. In September, growth in wages and employment unexpectedly slowed. Industrial output expanded by a mere 2.8% year on year while the market had expected a rise of 4.3%. The building sector did not measure up to expectations either. A major factor behind the slowdown was a deterioration in economic conditions in the euro area, in particular a drop

in Germany’s industrial output and exports.

And Germany is the country with which Poland has the strongest economic ties.

The PMI index for Polish industry, which describes economic conditions in the sector, fell from 51.4 pct. points in August to 50.5 pct. points in September. It had been projected to increase to 51.5 pct. points. The September reading of the index was mainly a result of the sharpest drop in new export orders in more than four years.

In the nine months to the end of September, more homes were completed than a year earlier. However, the increase was smaller than in January-September last year.

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Economy Monitor Economic

In September, the unemployment rate slightly decreased. The number of job offers submitted by employers to employment agencies was lower than in August.

Retail sales figures were disappointing in September. Retail sales were lower than in the previous month and the year-on-year increase was smaller than expected. Consumer price growth stayed in September within the band set by the Monetary Policy Council.

In the eight months to the end of August, exports grew at a slower rate than imports and the balance of trade was negative.

The economic sentiment indicator in the industrial sector and the construction and assembly sector deteriorated.

The Monetary Policy Council kept central bank interest rates on hold in October 2018, with the key rate at 1.5%.

Employment and wages in the business sector Employment and wages in the business sector increased in the 12 months to the end of September 2018.

In September 2018, average employment in the business sector – in businesses employing more than nine persons – was 0.1% lower month on month, but 3.2% higher year on year, with the number of employed at

6,224,900. The result was not as good as had been expected.

The average gross monthly wage rose 6.7% year on year to PLN4,771.86.

Prices Inflation stays within the inflation target band set by the Monetary Policy Council.

In September 2018, prices of consumer goods and services were 0.2% higher than a month earlier – prices of goods rose by 0.5% and of services dropped by 0.5%. The biggest positive contribution to CPI inflation came from prices of food (up 0.7%), and clothes and footwear (up 2.4%). Communicationsrelated prices dropped by 2.3% month on month and prices related to recreation and culture by 0.9%.

Compared to a year earlier, prices of consumer goods and services were higher by 1.9% - prices of goods increased by 2.0% on average and of services by 1.5%. The biggest contribution to CPI came from transport-related prices (up 7.0%), food (2.3%) and home-related prices (2.0%). Communications-related prices, and prices of clothes and footwear decreased the most – by 3.6% and 3.3% respectively.

Industrial, and construction and assembly output In September 2018, the year-on-year increase in industrial, and construction and assembly output was lower than expected.

Industrial output In September 2018, industrial output in constant prices generated by businesses providing employment to more than nine persons was 2.8% higher than a year earlier and 3.5% higher than a month earlier. After seasonal adjustments, industrial output was 5.4% higher than a year earlier and 0.7% lower than in August 2018.

Compared to September 2017, output rose in 24 of the 34 industrial sectors, including electricity, gas, steam and air conditioning supply (up 10.4%); the production of metal products (8.1%); machines and equipment (7.9%); electrical equipment (7.2%); “other” non-metallic mineral products (6.5%); paper and paper products (5.6%); and “other” transport equipment (4.3%).

Industrial output dropped year on year in 10 sectors, including the production of pharmaceuticals (down 28.8%); leather and leather products (16.1%); computers, electronic and optical products (6.4%); and coal mining (4.4%).

In September 2018, producer prices were 0.4% higher than a month earlier and 2.9% higher than a year earlier.

Construction and assembly output

Source: Statistics Poland (GUS)

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In September 2018, construction and assembly output in constant prices – both new work and repair work - generated in Poland by construction firms employing more than nine people, was 16.4% higher than a year earlier and 7.5% higher than a month earlier.

After seasonal adjustments, construction and assembly output was higher by 19.9% year on year and 0.9% month on month.

Compared to September 2017, construction and assembly output rose the most in the segment involved mainly in infrastructure building (up 23.1%). Businesses whose

Economic Monitor Economy

main activity is the construction of buildings and specialised construction work also recorded increases in output – by 18.6% and 3.6%, respectively.

Compared to August 2018, output rose in all segments of the construction industry: by 17.8% in businesses whose main activity is the construction of buildings, by 3.4% in businesses doing mainly specialised construction work and by 3.3% in businesses involved mainly in infrastructure building.

In September 2018, construction and assembly prices were 0.4% higher than a month before and 3.3% higher than a year before.

Residential building In the nine months to the end of September, the number of home completions was higher than in the same period of the previous year. Developers completed the biggest number of homes.

In the nine months to the end of September, 129,700 homes were completed in Poland, 4.4% more than a year earlier.

Developers completed 77,400 homes, that is 7.5% more than a year earlier. The number of self-build home completions rose 0.2% year on year to 48,600. Homes completed by developers and self-build investors accounted for 97.2% of all homes completed in this period, with developers’ share at 59.7% and self-build investors’ share at 37.5%. Housing associations completed 1,600 homes versus 1,500 a year earlier. Investors in the sector of council homes, affordable rental homes and homes owned by workplaces completed 2,000 homes, that is 100 homes less than a year earlier.

The completed homes had a usable area of 11.9 million square metres, 1.9% more than in the same period of the previous year. At the same time, the average usable area of a single home decreased by 2.2 sq m to 91.7 sq m.

The number of home starts rose by 8.2% year on year to 174,000. Developers started the construction of 100,300 homes, and investors in the self-build home sector started 69,500 homes, with developers’ share at 57.7% and self-build investors’ share at 39.9%. Housing associations started the construction of less homes than a year earlier: 1,900 versus 2,200.

The number of home starts in the remaining sectors also dropped: from 2,400 to 2,200.

The total number of homes for which building permits were issued or notifications with a building design were submitted increased 1.4% year on year to 193,300.

Developers and self-build investors received permits and submitted notifications for the construction of the biggest number of homes: 117,500 and 71,200 respectively. The combined number of permits and notifications in these segments of the residential building market accounted for 97.7% of all homes in this period, with developers’ share at 60.8% and selfbuild investors’ share at 36.9%. The number of permits and notifications increased year on year in the housing associations sector: from 1,200 to 1,300. In the remaining segments of the market, the number of permits and notifications dropped by 19.7% to 3,100.

Labour market In September 2018, the unemployment rate remained unchanged from the previous month and was at the lowest level in 27 years.

At the end of September 2018, the number of unemployed people registered with employment offices stood at 948,900 compared to 1.2 million at the end of September 2017.

The unemployment rate was 5.8% and was the lowest for September since 1991.

In September, the unemployment rate dropped month on month in 13 provinces and the number of unemployed decreased by 9,700. The biggest drops in the number of unemployed were recorded in Podkarpackie (down 2%; 1,600 persons); Wielkopolskie (1.9%; 1,000 persons); Mazowieckie (1.6%; 2,200 persons); and Opolskie (1.6%; 300 persons). The number of unemployed increased slightly – by around 0.6-0.8% - in Pomorskie, Warmińsko-Mazurskie and Zachodniopomorskie. The main factor behind the drop in the number of unemployed in Septem-

Source: Statistics Poland (GUS)

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Economy Monitor Economic

ber was the continuation of seasonal jobs.

The number of job offers submitted by employers to employment agencies in September was 117,700 and was lower by 13,600, or 10.3%, than in the previous month. The number of job offers dropped in 14 provinces, with decreases ranging from 1.7% in WarmińskoMazurskie (100 offers less) to 23.9% in Mazowieckie (4,500 offers less). The number of job offers increased in Opolskie (up 3.1%; 100 offers more) and Wielkopolskie (up 11%; 900 offers more).

The registered unemployment rate stood in September at 5.8% and was the same as a month earlier. The unemployment rate dropped by 0.1-0.2 pct. points in 10 provinces, with the biggest drop in Podkarpackie (0.2 pct. points). The lowest unemployment rate of 3.2% was in Wielkopolskie province while the highest (9.9%) in Warmińsko-Mazurskie.

Retail sales Source: Statistics Poland (GUS)

Retail sales went down in September compared to the previous month and recorded a relatively slight increase in year-onyear terms.

In September 2018, retail sales in constant prices recorded by retailers employing more than nine persons were 3.9% lower month on month. After seasonal adjustments, retail sales were 0.6% lower. In year-on-year terms, retail sales rose 3.6% versus an increase of 7.5% in September 2017.

In the group of retailers with a major share in overall retail sales, high year-on-year increases in sales were noted by retailers in the category “other” (up 8.9% against 3.9% a year earlier); and retailers selling solid, liquid and gaseous fuels (up 8.2% against 3.6% a year earlier). Above-average increases were noted by retailers in the category “other” retail sales in non-specialized stores (4.5%). Drops in retail sales were noted by retailers selling motor vehicles, motorcycles and parts (down 4.3%); and retailers selling food, beverages and tobacco products (0.9%). In the group with a lower share in overall retail sales, high increases in sales were noted by retailers selling pharmaceuticals, cosmetics and orthopaedic equipment (up 9.1%); and textiles, clothing and footwear (8.9%).

In the nine months to the end of September 2018, retail sales were 6.4% higher than

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a year earlier versus an increase of 7.2% in September 2017.

Foreign trade In the first eight months of 2018, the value of Polish goods trade was higher than a year earlier. The balance of trade continued to be negative.

In the eight months to the end of August 2018, Poland’s overall exports in current prices were worth PLN607.7 billion while Polish imports were worth PLN615.8 billion. Compared to a year earlier, the value of exports was higher by 5.4% and of imports by 7.7%.

As a result, the trade balance was negative at PLN8.1 billion against a surplus of PLN4.4 billion a year earlier.

In US dollar terms, exports were worth USD172.5 billion. The value was higher by 17.9% than a year earlier. Imports were worth USD174.8 billion, up 20.3%. The trade balance was negative at USD2.3 billion against a surplus of USD1.1 billion a year earlier. In euro terms, exports were worth EUR143.6 billion (up 6.7%) and imports EUR145.6 billion (up 9.0%). The deficit was at EUR2.0 billion against a surplus of USD1.0 billion a year earlier.

Poland had a deficit of PLN108.1 billion (USD30.7 billion, or EUR25.5 billion) in its trade with developing countries and a deficit of PLN19.8 billion (USD5.6 billion, or EUR4.7 billion) in its trade with Central and Eastern European countries. A surplus of PLN119.8 billion (USD34.0 billion, or EUR28.3 billion) was recorded in Poland’s trade with developed countries. The surplus with EU countries was worth PLN123.4 billion (USD35.0 billion, or EUR29.2 billion).

Developed countries had an 86.9% share in Poland’s overall exports, with the EU’s share at 80.2%. Their share in Poland’s overall imports was 66.3%, with the EU’s share at 59.1%. Central and Eastern European countries had the lowest share in Poland’s exports and imports – 5.8% and 9.0%, respectively.

In the eight months to the end of August 2018, Poland’s trade with its 10 biggest partners accounted for 66.4% of its overall exports and 65.2% of its overall imports. Germany’s share in Polish exports went up by 0.6 pct. points year on year to 28%. Germany’s share in Polish exports went up year on year by 0.8 pct. points to 28.0%. In imports, the share dropped by 0.4 pct. points to 22.8%.

The trade surplus for Poland stood at PLN30 billion (USD8.5 billion, or EUR7.1 billion).

Economic Monitor Economy

Balance of payments In August 2018, Poland’s current account balance was negative. Reserve assets expanded.

a) According to the revised scope of forms of construction, indices in relation to the corresponding period of the previous year will be presented from January 2019 Source: Statistics Poland (GUS)

Source: Statistics Poland (GUS)

In August 2018, Poland’s current account balance was negative at PLN2.35 billion. The current account deficit resulted from a negative balance on the primary income account (PLN6.1 billion), secondary income account (PLN1.6 billion) and goods account (PLN1.4 billion) and a surplus on the services account (PLN6.8 billion). A year earlier, the current account balance had been positive – at PLN1.1 billion.

The value of goods exports in August 2018 was PLN73.7 billion – 7.9%, or PLN5.4 billion, more than a year earlier. Services exports were worth PLN20.6 billion, and were higher by PLN1.8 billion, or 9.7%, compared to a year earlier.

The balance on the primary income account was negative at PLN6.1 billion, a similar level as a year earlier.

In August, PLN5.0 billion was transferred to Poland from the European Union, of which PLN2.4 billion was registered on the current account, mainly under the Common Agricultural Policy. PLN2.6 billion was transferred to the capital account, of which PLN2.4 billion came from the European Regional Development Fund. At the same time, Poland paid PLN2.9 billion to the EU coffers in the form of its own contribution. The money included the contribution due for August and a substantial part of the contribution due for September. The balance of transfers with the European Union was positive at PLN2.0 billion.

Non-residents’ investment in Poland increased in August by PLN6.1 billion. Direct investment by non-residents grew by PLN5.2 billion. The negative balance of foreign portfolio investment was at PLN1.6 billion.

The balance of residents’ investment abroad was positive at PLN4.5 billion (a rise in assets). An increase in the value of reserve assets by PLN6.1 billion had significantly contributed to the positive balance of residents’ investment abroad.

The balance of other investment was positive at PLN2.1 billion. The surplus resulted from a rise in foreign assets of the banking sector by PLN2.5 billion, mainly in the form of current accounts and deposits in banks

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Economy Monitor Economic

Source: Statistics Poland (GUS)

abroad. The remaining sectors (businesses) decreased their assets by PLN0.5 billion.

In portfolio investment, residents increased their foreign assets by PLN0.7 billion. Residents’ liabilities in the form of debt securities rose by PLN0.6 billion. Residents’ foreign assets in the form of direct investment decreased by PLN3.4 billion (inflow of capital).

Reserve assets This year, the value of Poland’s reserve assets has risen in zloty and euro terms. In the third quarter, the National Bank of Poland increased its gold reserves.

According to the National Bank of Poland (NBP), at the end of September 2018 Poland’s reserve assets were worth PLN414.9 billion (an equivalent of USD112.9 billion, or EUR97.1 billion). Compared to the end of December 2017, the value of the reserve assets was 5.2% high-

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er in zloty terms, 0.4% lower in dollar terms and 2.7% higher in euro terms.

Poland’s reserves are made up of foreign currency deposits, SDRs, claims and the reserve position in the IMF. At the end of September 2018, they accounted for 96.1% of the total reserves. Monetary gold accounted for 3.9% of the reserves. Between July and September, the NBP purchased 13.7 tonnes of gold, increasing the total gold reserves to 116.7 tonnes.

Economic climate In September 2018, the business climate indicator deteriorated in the Polish manufacturing sector and the construction and assembly sector.

The general business climate indicator in the industrial sector was positive at +8.8 in September versus +9.9 in August.

18.4% of the surveyed businesses reported an improvement and 9.6% a deterioration

in business conditions. The remainder said their situation had not changed. Assessments of current order books were similar to those reported by the surveyed businesses in the previous month while assessments concerning production were slightly more favourable. The businesses assessed their financial situation positively. Projections for order books, production and financial situation were less optimistic than a month earlier.

In September 2018, the general business climate indicator in the construction and assembly sector stood at +4.0 versus +6.4 in the previous month. 14.3% of the surveyed businesses indicated an improvement and 10.4% a deterioration in business conditions. The remainder said their situation had not changed. Assessments and projections concerning order books, construction and assembly output, and the builders’ financial situation were less optimistic than in August.

Managers of construction firms planned to raise employment, but the planned increase was smaller than indicated a month earlier.

In the wholesale sector, the reading of the general business climate indicator was at +12.8% against +13.1% in the previous month.

19.3% of those surveyed reported an improvement and 6.4% a deterioration in business conditions. The remaining businesses said their situation had not changed. Assessments of sales and the financial situation of wholesalers were a bit more optimistic than in the previous months, but sales expectations were slightly less positive. The surveyed businesses assessed their goods stocks as excessive.

In the retail sector, the reading of the general business climate indicator was at +12.2 against +10.7% in the previous month.

18.6% of the surveyed retailers signalled an improvement and 6.4% a deterioration in business conditions. The remaining retailers said their situation had not changed. As-

Economy Economic Monitor

Official reserve assets (USD billion)

Consumer sentiment October 2018 saw a deterioration in consumer sentiment compared to the previous month.

Source: National Bank of Poland (NBP)

sessments of current sales were the least favourable since March 2017, but expectations were optimistic. Stocks of merchandise were considered to be excessive.

The general business climate indicator in the transport and warehousing sector stood at +12.3 against +14.1 in August. 18.1% of those surveyed signalled an improvement and 5.8% a deterioration in business conditions. The remaining businesses said their situation had not changed. Assessments and projections for demand, sales and financial situation were optimistic and similar to those reported a month before.

In the accommodation and food services sector, the general business climate indicator was at +6.2 versus +12.3 a month earlier. 17.2% of the surveyed businesses reported an improvement and 11.0% a deterioration in business conditions. The remaining businesses said their situation had not changed. Assessments of current demand, sales and financial situation were less optimistic than in August.

In the information and communication sector, the general business climate indicator was at +17.7 versus +18.0 in August. 23.1% of the surveyed businesses reported an improvement and 5.4% a deterioration in business conditions. The remainder said their situation had not changed. Assessments of current sales were positive and those surveyed upheld their optimistic forecasts for demand and sales.

In the financial and insurance sector, the general business climate indicator stood at

+27.1 versus +26.4 a month earlier. 31.1% of the surveyed businesses reported an improvement and 4.1% a deterioration in business conditions. The remainder reported no change. Although assessments of current demand and sales deteriorated, those surveyed continued to be optimistic about their financial situation.

In October 2018, the composite Current Consumer Confidence Index (BWUK), which describes current trends in individual consumption, was lower by 0.8 pct. points compared to the previous month and stood at 6.1 points. Compared to March last year, the reading of BWUK rose by 7.4 pct. points.

When it comes to individual components of the index, the reading of those describing Poland’s present and future economic situation posted the biggest drops (3.8 and 2.9 pct. points respectively). In turn, the components describing households’ current potential to buy and their future financial situation improved by respectively 2.3 and 1.6 pct. points.

Compared to October 2017, the reading of BWUK was 1.5 pct. points higher.

The Leading Consumer Confidence Index (WWUK), which describes trends in individual consumption expected in the next months, fell in October 2018 by 1.8 pct. points compared to the previous month and stood at 1.3 points. WWUK was pushed down by deteriorating assessments of the coun-

Source: National Bank of Poland (NBP)

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Economy Monitor Economic

Change in WSE indices in January- September 2018

Source: Warsaw Stock Exchange

try’s future unemployment and economic situation (drops by respectively 3.6 and 2.9 pct. points). The reading of the component describing households’ future financial situation was higher 1.6 pct. points than a month earlier.

The reading was 0.3 pct. points lower than in October 2017.

Warsaw Stock Exchange The first three quarters of the year brought losses to investors on the Warsaw Stock Exchange.

At the end of September 2018, 421 Polish companies with a combined capitalization of PLN587.3 billion and 49 foreign companies with a capitalization of PLN611.3 billion were listed on the main market of the Warsaw Stock Exchange (WSE). Seven companies debuted on the WSE in the first nine months of the year. Two of them were transferred from the NewConnect market.

The value of equities traded on the main market in September 2018 went up by 20%

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year on year to PLN21.9 billion. The WIG20 blue-chip index and the WIG broad-market index lost respectively 2.3% and 2.0% in September and 7.2% and 7.5% since the beginning of the year.

In January-September 2018, only two of the 14 sectoral indexes posted gains, though slight: WIG-Oil&Gas and WIG-Pharmaceuticals. The remaining indexes dropped, with the biggest loss noted by WIG-Chemical (35.7%).