Polish Market No.12 (279)/2018

P U B L I S H E D S I n c E 1 9 9 6 No. 12 (279) /2018 :: www.polishmarket.com.pl

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PEARLS OF THE POLISH ECONOMY

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COP 24 CLIMATE SUMMIT IN KATOWICE

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dawid

“A new generation of business people enters the game.

Can they make the Polish dream come true?”

urban Business angel, entrepreneur

Economy

90 polish market

More energy for what matters

ONTENT 6 7

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

OUR GUESTS- PATRONS OF THE PEARLS OF THE POLISH ECONOMY AWARDS

8 JAROSŁAW GOWIN, DEPUTY PRIME MINISTER, MINISTER OF SCIENCE AND HIGHER EDUCATION

10 JERZY KWIECIŃSKI, MINISTER OF INVESTMENT AND ECONOMIC DEVELOPMENT

11 JADWIGA EMILEWICZ, MINISTER OF ENTREPRENEURSHIP AND TECHNOLOGY

12 JAN KRZYSZTOF ARDANOWSKI, MINISTER OF AGRICULTURE AND RURAL DEVELOPMENT

COP 24 CLIMATE CHANGE SUMMIT

13 HENRYK KOWALCZYK, MINISTER OF THE ENVIRONMENT AIR QUALITY IMPROVEMENT IS AN ABSOLUTE PRIORITY FOR US

PEARLS OF THE POLISH ECONOMY

34 PEARLS OF THE POLISH ECONOMY AWARD WINNERS 37 JAN SOSNA - PEARLS ARE THE STRENGTH OF THE POLISH ECONOMY

38 PROF. TOMASZ SZAPIRO, SGH WARSAW SCHOOL OF

ECONOMICS, INSTITUTE OF ECONOMETRICS, DEPARTMENT OF DECISION ANALYSIS AND SUPPORT - RANKINGS IN A NEW CONTEXT

40 BEATA KOŃ, TOMASZ KUSZEWSKI, TOMASZ SZAPIRO,

SGH WARSAW SCHOOL OF ECONOMICS - THE GROUPING OF ENTITIES IN THE “PEARLS OF THE POLISH ECONOMY” RANKING

44 PROF. JAN SZMIDT, HEAD, CONFERENCE OF RECTORS OF ACADEMIC SCHOOLS IN POLAND – THIS IS THE TIME

45 PROF. LESZEK RAFALSKI, PRESIDENT, MAIN COUNCIL OF RESEARCH INSTITUTES - PEARLS FOR INNOVATION

46 PROF. ELŻBIETA MĄCZYŃSKA, PRESIDENT, POLISH

ECONOMIC SOCIETY - SCIENCE AND ITS PROMOTION IN THE AGE OF DIGITAL REVOLUTION

15 MICHAŁ KURTYKA, DEPUTY MINISTER OF THE

ENVIRONMENT AND COP 24 PRESIDENT - THE CLIMATE CENTRE OF THE WORLD IN KATOWICE

17 PROF. MICHAŁ KLEIBER, ECCOMAS PRESIDENT -

CONGRESS 590

52 CONGRESS 590

EVERYTHING’S CLEAR – NOW IS TIME TO ACT

POLAND’S INDEPENDENCE CENTENARY

20 KRZYSZTOF OLENDZKI, DIRECTOR, ADAM MICKIEWICZ

INSTITUTE -BUILDING THE POLAND BRAND THROUGH CULTURE

24 MACIEJ PROLIŃSKI – A GREAT EMOTIONAL EXHIBITION 26 MACIEJ PROLIŃSKI – FROM MALCZEWSKI TO PIŁSUDSKI 28 JAN SOSNA – BUSINESS ANGEL DAWID URBAN: DON’T TELL ME IT CAN’T BE DONE

POLISH PRESIDENT’S ECONOMIC AWARD

53 PROF. KRZYSZTOF OPOLSKI, HEAD, BANKING, FINANCE AND ACCOUNTING DEPARTMENT, FACULTY OF ECONOMIC SCIENCES, WARSAW UNIVERSITY - WINNERS REFLECT POLAND’S ECONOMIC LANDSCAPE

54 RAFAŁ KIEPUSZEWSKI – ASTRONIKA - SPACE SOLUTIONS HERE AND NOW

56 MEDINCUS CENTRE OF HEARING AND SPEECH – POLAND CAN BE PROUD OF THIS SUCCESS

Editorial

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

As 20,000 politicians, representatives of non-governmental organisations, research centres and business circles from 195 countries have converged on the southern Polish city of Katowice to discuss the future of the planet, there is no doubt what the No.1 topic in this edition of “Polish Market” should be. December 3 saw the inauguration of the 24th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP24), 14th Meeting of the Parties to the Kyoto Protocol (CMP 14) and the Conference of the Paris Agreement signatories (CMA 1.) The event is to last until Dec. 12. It takes place at a very special moment. At the COP21 conference in Paris in 2015, 195 countries adopted the world’s first universal and legally binding agreement on climate change. The parties undertook to take action to spare us from the dire consequences of climate change by reducing the scale of the greenhouse effect. However, a lot has changed since COP 21. The pace of work on concrete steps has proved sluggish. In an IPCC report published in October, the deadline for CO2 emission targets was pushed back to 2050, while last year global monitoring showed an increase of CO2 emissions within just three years of efforts to reduce them.

Poland occupies an important position in efforts to fight climate change, also on a global scale. COP 24 marks Poland’s fourth presidency. It is the third summit hosted by Poland, a number unrivalled by any other country. Poland intends to do its best to help the parties reach agreement, although observers expect that this will be very difficult. The Katowice Rulebook will probably run into hundreds of pages. The Paris Agreement may have set out a general direction, but now is the time to deal with the specifics. For the first time anyone in the world can take a peek at the proceedings online, courtesy of #TakeYourSeat.

Aware that to save the planet we need to start on a micro scale, we intend to pick up on the spirit of the Katowice summit during “Polish Market’s” own No.1 event, the annual Pearls of the Polish Economy gala. It will be held at the Royal Castle in Warsaw on December 11.

As usual we will have the honour to announce the results of the ranking of the most efficient Polish companies. For the thirteenth time our Publishing House will present Polish Market Honorary Pearl awards to prominent personalities and institutions that are Poland’s ambassadors in the area of the economy, science, culture, the promotion of Polish tradition, national heritage, social values and sport.

At the risk of sounding presumptuous, may I suggest that among the many economic rankings, whose results are announced in Poland at the end of the year, the Pearls of the Polish Economy ranking occupies a very special place. Instead of using simple criteria to compile the ranking, such as year-end profits, it takes into account the way a firm has made use of the resources available to it over the past year. Working in partnership with the Department of Decision Support and Analysis of the Institute of Econometrics, SGH Warsaw School of Economics, we are able to use its complex algorithm based on lots of factors, to pinpoint those firms that make the most of their resources. The philosophy behind the ranking ties in with the idea of sustainable development on Planet Earth. Pearls of the Polish Economy show that this country’s enviable growth rate is based on companies which are able to optimise their development using the resources at their disposal.

May I also take this opportunity to extend warm and friendly wishes for a Merry Christmas and a bright and happy New Year to all “Polish Market” readers, friends and associates. We would like to thank you for doing business together this past year and we look forward to working with you again in the New Year.

Happy holidays!

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EVENTS

ORGANIC FOOD

58 JERZY BOJANOWICZ – THE LAUREL OF INNOVATION 2018 59 PROF. ZBIGNIEW ŚMIESZEK, MANAGING DIRECTOR, INSTITUTE OF NON-FERROUS METALS, MIECZYSŁAW WOCH, INSTITUTE OF NON-FERROUS METALS - INNOVATIVE MATERIALS AND TECHNOLOGIES

78 FROM “ECO-LESSONS” TO “AN INDEPENDENT POLAND TASTES GREAT” 80 JĘDRZEJ KRUPIŃSKI, PAWEŁ RADOMSKI, NATIONAL RESEARCH INSTITUTE OF

ANIMAL PRODUCTION - NATIVE BREEDS GUARANTEE THE QUALITY OF TRADITIONAL PRODUCTS

60 OUTSTANDING EXPORTER OF THE YEAR MEDALS – POLISH EXPORTERS’ ASSOCIATION

81 JAN MAZUREK - ECONOMIC MONITOR

64 EUROPEAN BUSINESS CLUB AWARDS 66 THE 2ND WOMEN’S ENTREPRENEURSHIP FORUM CULTURE COMPILED BY CULTURE EDITOR MACIEJ PROLIŃSKI:

68 CULTURAL MONITOR 70 JANUSZ WAWROWSKI, VIOLINIST - ONE OF MY GREATEST MUSICAL DREAMS IS COMING TRUE

72 STRADIVARIUS “POLONIA” 73 TATIANA JACHYRA, PHOTOGRAPHER - EVERYONE HAS A DIVINE SPARK

Cover: DAWID URBAN, business angel, entrepreneur, YPO member and co-founder of eSmoking World, the European leader in the e-cigarette market.

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

We would like to thank Signature Restaurant and H15 Boutique Hotel, 15 Poznańska Street in Warsaw for providing space for the photo session on pages 28-32.

12 (279)/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

DTP: Godai Studio www.godai.pl Printing: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl

Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o.

Nr KRS 0000080385, Sąd Rejonowy dla m.st.

Warszawy XII Wydział Gospodarczy Kapitał zakładowy 80.000,- zł.

REGON 011915685, NIP 526-11-62-572 Published articles represent the authors’ personal views only. The Editor and Publisher disclaim any responsibility or liability for their contents. Unsolicited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility whatsoever for the content of advertising material.

Reproduction of any material from this magazine requires prior written permission from the Publisher.

President

INDEPENDENCE ANNIVERSARY CELEBRATIONS Poland's independence centenary was celebrated throughout Poland and in Polish communities worldwide on November 11. President Andrzej Duda laid wreaths at monuments honouring Poland's independence leaders Marshal Józef Piłsudski, Wincenty Witos, Roman Dmowski and Ignacy Jan Paderewski.

Addressing a gathering at the Tomb of the Unknown Soldier in Warsaw President Andrzej Duda stressed "I wish we could always be together. I am convinced that under the white and red banner there is a place for each of us, regardless

of our views." President Duda conferred posthumously the Order of the White Eagle, the highest Polish distinction, on 25 Poles merited for the glory of Poland, including Maria Skłodowska-Curie, the outstanding Polish scientist and Nobel Prize winner, Stanisław Banach, one of the leading mathematicians of the 20th century and Janusz Korczak (Henryk Goldszmit), the Polish-Jewish writer and public activist, a Holocaust victim.

Held under the motto 'For You Poland,' an independence march was held in central Warsaw.

TOWARD ENERGY DIVERSIFICATION Poland's gas company PGNiG signed a 24year liquefied natural gas (LNG) delivery contract with the US firm Cheniere Marketing International on November 8. Diversification of energy sources is important for Poland and for Europe, Polish President Andrzej Duda and US Energy secretary Rick Perry said after the landmark contract was signed. The President expressed hope that the Polish

government will soon be able to double the capacity of Poland's LNG terminal in Świnoujście and observed that PGNiG had secured access to gas deposits in the Norwegian Shelf, from where the gas could be pumped to Poland through the Baltic Pipe, a new seabed pipeline project. Andrzej Duda stressed that such activities will increase the security of Poland, but also of Central Europe.

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

PRESIDENTIAL ECONOMIC AWARD

A Presidential Economic Award ceremony was held in Jasionka near Rzeszów, south-eastern Poland on November 15. The event took place during the 590 Congress. The awards were granted in five main categories and two special ones. Just like last year, President Andrzej Duda also presented an individual award.

Ultratech received the Leader of Small and Medium-sized Enterprises award. Ceramika Paradyż won the National Success title, while Vigo

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System SA won the International Success prize. PKO BP bank won the Responsible Business award and MB-Pneumatyka was awarded the best Family Company title. Photon Entertainment was named the best Polish startup, while the Research and Development award went to space research firm Astronika. President Andrzej Duda also granted an Individual Award to Zbigniew Grycan, a major ice cream maker.

To mark the one hundredth anniversary of Poland’s return to the map of Europe as an independent state, the President also awarded a special prize for a Polish company that has been operating on the market for at least 100 years. The winner of the Special Award was the Warsaw HEFRA Platinum Factory.

Addressing the gala, the President said that it was "extremely difficult" to pick this year’s award winners and the choice was guided by many criteria, including the average wage workers are paid by particular companies. Andrzej Duda described the award-winners as those who “draw on the great, rich tradition of the best in Polish business. I am happy to be able to point out those who are the best (...) and most advanced in terms of development, but also in everyday activity and business ethics," he noted. The President stressed that the awarded companies could serve as models for others, especially for young people who plan to start their own business as well as for other firms.

Prime Minister

P.M.’S INDEPENDENCE DAY ADDRESS

POLAND IS SATISFIED WITH THE OUTCOME OF BREXIT TALKS

„The anniversary of regaining independence is a date which should above all remind us of the great commitment towards the future of Poland, which should remind us of what this country will look like in the coming years,” Prime Minister Mateusz Morawiecki said in his address on November 11 marking the centenary of the regaining of independence by Poland. “What kind of Poland we want to pass down in this relay of generations to our children, grandchildren, our national community. The free Poland is a commitment to set ourselves ambitious goals, thanks to which we will make Poland stronger, and life in Poland – happier. Therefore, the basic task of the Polish state must be a consistent improvement in the quality of life of the Polish families. Through pro-family policy, boosting the entrepreneurial spirit of the Poles, through creating ever better quality of workplaces, strengthening the Polish economy, in the perspective of the next several years we can achieve what has actually never happened in the history of Poland: we can catch up with the developed western countries.

We have to do our best to make our common home a safe and wealthy place for long years to come. It is a task for today’s patriots, for the government, citizens, and also for the opposition. Our common task,” Mateusz Morawiecki stressed.

“Today, being an active Member State of the European Union, we show that we are one of the most pro-Europe nations. Europe will always be the future of Poland. The European project is also a Polish project and our reason of state is to make the history of the European Union a history of success. That is why strengthening the European Union is and will be absolutely fundamental for Polish foreign policy,” the Prime Minister noted.

“The agreement on Brexit is the result of long negotiations in which Poland encouraged a compromise from the very beginning. We have guaranteed the rights of Polish citizens on the British Isles. In principle, all rights related to employment, benefits and social matters are guaranteed” said Prime Minister Mateusz Morawiecki after the meeting of the European Council in Brussels. At the summit, the heads of state and government of the 27 EU Member States, together UK Prime Minister Theresa May, endorsed the agreement on Brexit and supported a political declaration on future relations between the European Union and the United Kingdom. Mateusz Morawiecki also assured that all Polish projects included in the current EU financial perspective are reflected in the United Kingdom’s commitments. “We have also achieved success in this field, as the United Kingdom will continue to finance projects related to EU funds until the end of this perspective,” said the Prime Minister.

Mateusz Morawiecki emphasised that Poland is committed to the closest possible relations with the United Kingdom in terms of security, foreign policy, trade issues, investment and economic cooperation, among other things. Poland and the United Kingdom will remain close allies, he said.

“POLAND IS PRO-AMERICAN AND PRO-EUROPEAN” we should actively contribute to the repair of transatlantic relations,” he added.

The international FOTAR Conference The Future of Transatlantic Relations is held with the participation of leading representatives of the worlds of politics, business and the media. It is organised by the Federal Chancellor Helmut Schmidt Foundation and the Institute for European Integration – Europa College Hamburg.

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Photos: Adam Guz KPRM

Prime Minister Mateusz Morawiecki told the FOTAR Conference in Hamburg on November 14 that Poland is aware of its role both as an ally of the US and EU. He was taking part in a discussion entitled A European Perspective for the Future of Transatlantic Relations. “There are not many countries like Poland, which are at the same time very pro-American and very pro-European” emphasised the Prime Minister. “We are convinced that

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PEARLS OF THE POLISH ECONOMY

PATRONS OF THE PEARLS

OF THE POLISH ECONOMY GALA

JAROSŁAW GOWIN, Deputy Prime Minister and Minister of Science and Higher Education.

I am glad that the Ministry of Science and Higher Education is a patron of such an important initiative as the Pearls of the Polish Economy Ranking. I appreciate the work of the editorial board of “Polish Market” who – in conjunction with scientists of the Decision Support and Analysis Unit at the Institute of Econometrics at the Warsaw School of Economics – have for years examined the efficiency of Polish businesses and compiled the ranking.

Cooperation between science and business is necessary for raising the innovation performance of our country and for its lasting economic growth. This is why I am glad that R&D spending in the business sector has been growing rapidly in recent years.

It is also worth pointing to the growing interest of Polish firms in taking part in the European Union Framework Programme Horizon 2020. Funding worth a total of EUR89.8 million has already been awarded to 346 projects carried out by Polish businesses.

In terms of the number of Horizon projects, businesses no longer lag behind traditional beneficiaries of framework programmes: neither behind Polish universities (355 projects with EUR92 million in funding) nor scientific institutes 336 projects with EUR83.3 million).

What is equally important is that the perception of the state’s role in the process of supporting business is also changing. The state is no longer expected to merely provide stable rules of the game and stimulate enterprise, by for example reducing taxes and fighting monopolies. It should also be an “Entrepreneurial State,” in keeping with the title of Mariana Mazzucato’s book. This new approach results from the realisation that to a large extent it is the state sector, rather than the market itself, that stands behind the most groundbreaking technologies of the recent decades. It is the state that is ready to invest in ideas which are often too risky, longterm and require outlays which are too high even for the most powerful market players. This does not mean that the state should substitute for businesses. Just the contrary: in conjunction with the private sector, it is becoming a significant element in building an innovative economy. This modern approach is visible in the policy pursued by the Polish state, in particular the Strategy for Responsible Development adopted on February 14, 2017. The Strategy defined a new model for the development of the state in medium term, a state which is entrepreneurial, active and socially responsible.

The Ministry of Science and Higher Education joins in the policy outlined above by, first of all, creating conditions for the development of Polish higher educational institutions and science. Universities and public institutes have already put a lot of effort into carrying out increasingly intensively this part of what is called the third mission which involves bringing research findings into the marketplace or, more broadly, cooperation between science and business. Seeing this potential, the state has tried in recent years to support the whole process through a system of grants, including for example the requirement of cooperation between science and business, and by creating favourable regulations.

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PEARLS OF THE POLISH ECONOMY

The Constitution for Science, which has been in force since October 2018, puts emphasis on cooperation with industry as a criterion in appraising scientific units. Additionally, in response to proposals from the business community, obligatory student training has been extended from three to six months and more room has been created for collaboration with business in shaping curricula.

But this is not all. Two innovation laws of 2016 and 2017 drafted by the Ministry of Science and Higher Education effectively improved regulations concerning cooperation between scientific units and businesses. For example, the legislation introduced an obligation to set aside 2% of the budget for science on tasks associated with the commercialisation of research findings. We have been consistently raising the threshold of R&D spending eligible for tax breaks. It is now 100% in general and as much as 150% for firms which have the status of a research and development centre. As a result, there will be much higher demand from business for research services. In 2017, a total of 1,090 payers of PIT and CIT benefited from the tax break on R&D compared to 528 in 2016. This means that their number almost doubled year on year. The amount of spending reported rose from PLN1.2 billion to PLN1.91 billion while total deductions amounted in 2017 to PLN584 million, three times more than a year earlier, despite the fact that the relevant thresholds were less beneficial than the ones introduced on January 1, 2018.

Participants in the ministerial grant programme called “implementation doctorate” have been involved in building the bridge between science and business for over a year now. The goal is to educate future scientists who will contribute to developing innovative technologies. A total of 385 doctoral students and 239 firms, including 61 state-owned companies, joined the first edition of the programme.

In order to enhance the potential of Polish research institutes, the Ministry of Science and Higher Education plans to establish the Łukasiewicz Research Network. It will bring together 38 research institutes.

The network will have the right potential to conduct R&D work and may even become the third biggest entity of this kind in the European Union. I believe it will be a strong impulse for making R&D activity in Polish industry more dynamic. Our goal is for the Łukasiewicz Research Network to come into being next year. One reason is that we would like to support Polish businesses in preparing their applications under Horizon Europe, the successor of the Horizon 2020 programme.

I would like to sincerely congratulate all the laureates of the Pearls of the Polish Economy this year and those who have received Honorary Pearls awards.

I wish you courage and perseverance in undertaking activities contributing to the dynamic development of the Polish economy.

PEARLS OF THE POLISH ECONOMY

PATRONS OF THE PEARLS

OF THE POLISH ECONOMY GALA JERZY KWIECIŃSKI, Minister of Investment and Economic Development “Polish Market” has accompanied Polish businesses for over 20 years, being at the same time an important source of information on the Polish economy for foreign investors. The magazine makes its contribution and supports building a positive image of Poland in the international arena.

One of the best known forms in which "Polish Market" promotes Polish entrepreneurship are the annual Pearls of the Polish Economy awards. The distinction is both prestigious, as a sign of recognition for the success of the laureates, and practical. It is an explicit recommendation that what is Polish is simply the best.

Success does not come out of nothing. In order to understand Poland and its vision of economic patriotism one should go back to the time when the hearts of Polish people were won by the idea of Solidarity. However, the picture is not complete without realising how much was achieved by of the Second Republic of Poland [in the period between the two world wars – ed.] and its aspirations to modernise the country. This is why the government is now building a Polish road towards prosperity based on two pillars: development and solidarity.

All activities serving the rapid development of the country and strengthening its position in the world deserve to be called modern economic patriotism. Our Strategy for Responsible Development combines the ambition of a fast development, catching up with the best and social sensitivity. It envisages providing equal opportunities to all, and balanced development for all social groups and all regions of the country. It is a vision of all-round development. It is not only about economic growth, but also the development of science and modern technologies, demographic development and the well-being of Polish families.

This is why the government’s economic programme clearly shows that the most important long-term goal for the Polish economy is to change its structure and move it up to level 4.0. There is no need to convince anyone of how important innovation, research and development work, and new technologies are here. Achieving this goal largely depends on cooperation among three communities: business, science and the public administration sector. We are boldly embarking on this path, knowing that we are joining in a global race. We have to work together as a good team to be efficient and produce the effects that will ensure us a place among the leaders.

We are creating an increasingly favourable regulatory environment, which is designed to make it easier to transfer scientific research findings to the marketplace and carry out smart public projects. Polish businesses are increasingly capable of building lasting competitive advantages in the world thanks to the quality and innovation of their products, developed in conjunction with scientific centres and the public sector.

The results are already visible. Statistics Poland (GUS) has recently published data on R&D spending in 2017. The year was a record one in this respect, with spending having increased by nearly 15% compared to 2016. This is very inspiring, but there is still a lot of work ahead of us. Last year, R&D spending reached 1.03% of GDP while our goal under the Strategy for Responsible Development is 1.7% in 2020 and 2.5% in 2030.

Lasting business relations are created thanks to cooperation between Polish businesses and universities. They will pay dividends in the form of a strong pro-development impulse. At the same time, they are making Poland increasingly attractive in the global value chain. By constantly improving the coordination of activities promoting Polish business on international markets, we are creating conditions for its effective expansion and strengthening the competitiveness and attractiveness of the Polish economy. In short, what we want to do is nothing else than the English have been doing for 400 years, the French for 300 years and the Americans for over 200 years, which means taking care of the development of domestic businesses and helping their foreign expansion.

Polish scientists and entrepreneurs did not take part in the first, second and third industrial revolutions. Stanisław Wokulski, a character from the novel “The Doll” by Bolesław Prus and another character Lucjan Kociełło from „Nights and Days” by Maria Dąbrowska, are exceptions that prove the rule. They were among the few examples of home-grown Polish capitalism. At the time when modern economies of European powers like Germany and Britain were being born, Poland was either in the process of losing independence or involved in a struggle to regain it.

We now live in an independent and democratic state. Now, thanks to revolution 4.0, we need to make up for the two-hundred-yearlong absence. Time is pressing. The race toward modernisation is on. That is why we so badly need a sound economy and investment.

As I extend my congratulations to all the laureates of the Pearls of the Polish Economy, I would like to wish them, and all of us, every success in this race, so that we all emerge as winners and not runners-up.

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PEARLS OF THE POLISH ECONOMY

PATRONS OF THE PEARLS

OF THE POLISH ECONOMY GALA

JADWIGA EMILEWICZ, Minister of Entrepreneurship and Technology It is already the 16th Pearls of the Polish Economy ranking. From the perspective of the Ministry of Entrepreneurship and Technology, which I have the honour to head, research on the state and condition of Polish businesses is very important because it reflects to some extent the effectiveness of measures taken by the government. The reason and rationale behind the existence of the Ministry of Entrepreneurship and Technology is to serve Polish businesses. Their condition depends on the development conditions that we co-create as the public administration sector. This task materialises thanks to legal instruments, which we try to modernise, simplify and make friendly to businesses. Supporting all forms of Polish enterprise is also our goal. We carry out this task in a way which integrates various measures. These are legislative changes, in particular the package “100 Changes for Firms” and the Constitution for Business, and a number of legal solutions that followed – solutions organising the economic reality in the light of current economic challenges, such as the SME package adopted by the parliament in recent days. We do not forget about supporting investment and creating attractive jobs throughout Poland. We have changed the logic behind the operation of special economic zones, putting it on the path of supporting regionally balanced development throughout the country. What is more, we have tied tax privileges with investments in highly advanced technologies and quality jobs. With the law on succession management, we provide new instruments to guarantee that next generations of Polish entrepreneurs can efficiently take over and develop the activity of businesses, even after the owner’s death.

However, our activities are not limited to legal measures. Thanks to the government-adopted investment and development vehicle, which is the Polish Development Fund, we are putting into practice the idea of an enterprising state. In practice, it means a state entering the economic landscape as an actor inspiring and creating trends. We want to build mechanisms and levers which can help to successfully transform Poland from an imitative to innovative economy. One of the measures serving this purpose is Start in Poland – the largest programme in our region supporting the development of innovative firms.

In a year when we are celebrating the centenary of Poland regaining its independence, it is especially important to exploit all opportunities and meet challenges resulting from the unique, strong and stable position of the Polish economy. The success of our country and the Polish economy over the next 100 years will require joint effort on the part of both Polish business and state institutions in removing any kind of barriers to development and first of all creating new prospects for the flourishing of the Polish economy, science and culture.

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PEARLS OF THE POLISH ECONOMY

PATRONS OF THE PEARLS

OF THE POLISH ECONOMY GALA

JAN KRZYSZTOF ARDANOWSKI, Minister of Agriculture and Rural Development It is for the 16th time that we are meeting at the official Pearls of the Polish Economy Gala. This year’s event is being held in a very special year when we are celebrating the centenary of our Fatherland regaining its independence after 123 years of foreign rule.

The time of foreign occupation was marked by unceasing struggle of successive generations to bring Poland back onto the map of Europe and efforts to ensure unconstrained development of the country in keeping with its own interests. But freedom can never be taken for granted. It is important to understand why it has been lost because this helps to avoid the mistakes.

Today, in times of peace, we do not need to prove our patriotism through armed struggle.

Today, we have to show our patriotism in a different way.

For 16 years the Pearls of the Polish Economy Gala has brought awards to the largest companies operating in Poland. The laureates have a very strong position in their sectors. They create jobs and strengthen our economy. Among them are many Polish firms which, in a market economy, are coping very well with international competitors. The success of Polish agriculture would not have been possible without strong businesses either. Our potential in this sector of the economy is significant and we sell more and more agricultural and food products throughout the world. This year we have a chance to see the value of our exports reach around EUR30 billion.

Honorary Pearls are also presented during the Gala. The awards are given to outstanding scientists, academics, people from the world of culture and those promoting patriotic and social values. Such people contribute to building our country’s image, strength and position in the international arena. It is an example of contemporary patriotism and commitment to working for the Fatherland.

I wish to congratulate the laureates for the distinctions they have won. I am convinced that others will follow in their footsteps and will continue their work, contributing to a rise in living standards in Poland and its further development.

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WORLD CLIMATE CHANGE SUMMIT IN KATOWICE

COP24 CLIMATE SUMMIT OPENS IN KATOWICE

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ecember 3 saw the opening ceremony of the event, which was attended by Polish President Andrzej Duda, UN Secretary General António Guterres, Minister of the Environment Henryk Kowalczyk, President COP24 Michał Kurtyka as well as political leaders from around the world.

“The fact that the global climate summit is held in Poland proves that this country is seeking international cooperation. We need it because despite technological progress, the modern world is still struggling to satisfy the basic needs of humanity. Millions of people live without safe access to water, food, energy and education,” President Duda said. “I believe that a responsible climate policy is built on a solid foundation, which is a balanced relationship between nature and technology,

while recognising human dignity as a supreme value,” he noted.

UN Secretary General António Guterres and UNFCCC Executive Secretary Patricia Espinosa praised what they described as the exemplary performance of the organisers of the international event. They also had words of praise for Poland’s cooperation with public services and institutions.

Ministry of the Environment Henryk Kowalczyk pointed to the scale of progress that Poland has made over the last three decades in the fight against greenhouse gas emissions and air pollution. Michał Kurtyka, Secretary of State at the Ministry of the Environment, who took over the function of COP President of, has the task of working out a consensus in spite of the divergent views of individual countries in order to reach a final agreement. •

AIR QUALITY

IMPROVEMENT IS AN ABSOLUTE PRIORITY FOR US Minister of the Environment HENRYK KOWALCZYK talks to “Polish Market” about Poland’s stance for the COP24 summit held in the southern Polish city of Katowice.

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Do you agree with the opinion that Poland plays quite a significant, though paradoxical, role in the United Nations’ climate protection movement? We went to Kyoto as a debutant, a Cinderella with a terrible state of the environment inherited from the previous system of government, to become a record-breaker in reducing greenhouse gas emissions in a matter of a few years. At the COP14 conference in Poznań we did everything to ensure that the only task left for the hosts of the next conference was to present the agreement documents for signature. Meanwhile, the hosts of COP15 and the next conferences brought the Parties into conflict, almost leading to the collapse of the talks. We invited COP19 to Warsaw and it turned out to 12/2018 polish market

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WORLD CLIMATE CHANGE SUMMIT IN KATOWICE

be a place of reconciliation and hope, paving the way for the showpiece final and the signing of the Paris Agreement. Finally, all of the big powers jointly declared their willingness to act. I think it was in Marrakesh that the debate for the first time was not about “whether” but “how” it should be done. However, soon afterwards we got this thunderbolt – the United States said it was withdrawing from the Agreement. At COP23 in Bonn there came a response: “We are doing our job.” And the choice fell again on our country. As organisers of COP24 in Katowice, are we supposed to suggest what “our job” means and how to do it? Will we manage? What is the state of the negotiations among the Parties?

Poland has an important position when it comes to climate activities, both in the European Union and beyond – in the global dimension. COP24 in Katowice will be Poland’s fourth presidency and the third climate change summit in our country. No other country has been a COP conference host so many times. This involves, as you said, great responsibility and active role in the negotiations. Undoubtedly, the negotiators at this year’s COP conference are facing a big challenge: putting into practice the Paris Agreement of 2015. Poland is holding consultations with all parties to the Agreement. We are convinced that we will manage to achieve full success in Katowice, a success which will satisfy both developed and developing countries and which will bring us closer to achieving climate neutrality in the world. We also hope that, just like at the COP conference in Warsaw five years ago, we will manage to create a good atmosphere and conditions for a compromise, which will persuade the United States to remain a party to the Paris Agreement after all.

Despite our undoubtedly constructive role and services for the climate protection movement, environmental extremists have taken care to put an unfair label on us at almost every COP conference. Of course, we have our arguments, which show how our Strategy for Responsible Development is being turned into specific national executive programmes - like for example, Clean Transport, Alternative Fuels and Clean Air - and EU programmes, of which Coal Regions in Transition is an example. All the programmes are supported with appropriate funding. In addition, many of the projects already implemented can be seen “live” within an hour’s drive from Katowice. On the other hand, the European list of places with the highest emissions is made up mostly of our cities. In early December, when the COP24 conference is to take place, the atmosphere in Katowice may be quite tough. Will we be able to win our guests over?

The need to improve air quality is a challenge for most countries which are members of the European Union, Poland included. This issue is extremely important because of PM

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POLAND HAS AN IMPORTANT POSITION WHEN IT COMES TO CLIMATE ACTIVITIES, BOTH IN THE EUROPEAN UNION AND BEYOND – IN THE GLOBAL DIMENSION. NO OTHER COUNTRY HAS BEEN A COP CONFERENCE HOST SO MANY TIMES.

the impact of air on human health, above all. This is why air quality improvement is an absolute priority for us.

As we know, the main reason behind the poor quality of air in our country is the burning of waste and poor-quality fuel in outdated heating furnaces, with another source of pollution being vehicle transport. This is why the Clean Air programme is one of the numerous measures we take to improve the air. The implementation of the programme will help us not only to solve much of the smog problem, but will also enable millions of Polish people to modernise their houses. Since the programme is a comprehensive one, the available funding can be spent both on the replacement of old heating sources with more environment-friendly ones and thermal improvements to single family houses.

The programme is planned for 10 years and its budget exceeds PLN103 billion to be distributed in the form of loans and subsidies. The size of funding will depend on the financial situation of the applicant, ensuring access to the programme for the less affluent section of society. People on the lowest income may have almost all of their investment financed by the state.

We assume that thanks to the programme at least 80% of single-family houses in Poland will be equipped with modern furnaces and will undergo thermal improvements, which will significantly contribute to reducing the amount of pollution produced in the heating season.

I would like to assure you that we spare no effort to ensure a constant improvement in air quality. The Clean Air programme is one of the elements designed to strengthen • the measures supporting the improvement.

COP24

WORLD CLIMATE CHANGE SUMMIT IN KATOWICE

THE CLIMATE CENTRE OF THE WORLD IN KATOWICE In the first half of December, Poland is hosting the 24th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC COP24.) It is the largest UN conference. For the fourth time Poland will chair the event, and it will host it for the third time.

Previous conferences organised in Poland were COP14 in Poznań in 2008 and COP19 in Warsaw in 2013. MICHAŁ KURTYKA, deputy Minister of the Environment and COP 24 President, writes for “Polish Market” about the significance of the event.

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t is a great honour, no other country has chaired the summit so many times. The fact that COP24 is organised here is not just a source of prestige for Poland. By deciding to become the host country once again we have proved that we do not shun discussions about difficult and contentious topics of global significance. On the contrary, we are trying to take up this challenge and create the conditions for free discussion, showing that we can reach a compromise while defending our interests. The atmosphere during the entire summit depends on the activities of the Polish Presidency, and the outcome of decisions taken at the event depends on the atmosphere of the meeting.

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WORLD CLIMATE CHANGE SUMMIT IN KATOWICE

THE FIRST DIGITAL COP We are open to discussion about the best climate solutions and we want to make as many people as possible interested in it. That is why this year, for the first time, everyone can participate in the summit and join us virtually, which I would like to strongly recommend. During the official opening of COP24 there will be one empty chair in the room, symbolising the place for anyone interested in climate action.

Internet users, using #TakeYourSeat hashtag, can also exchange their experiences on climate change.

THERE IS NO PARIS WITHOUT KATOWICE The main task of the Polish Presidency during COP24 is to create the right conditions for dialogue and compromise, so that during the summit there is a good, unrestrained discussion about the implementation of the Paris Agreement, as a result of which, the principles that we will follow in the future can be defined. They will be included in the "Katowice Rulebook" document, which is why we would like it to be as detailed, clear and easy to understand as possible. The Paris Agreement itself is a relatively short document, while the "Katowice Rulebook" will be hundreds of pages long. The Paris Agreement sets out a certain direction, but the path toward this end will be described by the Katowice Accord. So the more detailed and matter-offact it is, the better.

We are hoping that many contentious issues will be raised during the negotiations. The decision to accept the Agreement must be unanimous, and there are as many interests as the parties involved.

Particular interests are often contradictory. For example, much depends on the fastest growing Asian economies such as India and China. Fortunately, in these countries there is growing awareness that in order to develop further, it is necessary to provide the public with access to clean water, improve air quality, reduce waste volumes and balance urban development. Considering these two countries’ GDP growth and population growth, meeting these challenges will become a necessity.

On the other hand, there is also the United States, which has decided to withdraw from the Paris Agreement. This does not mean, however, that US representatives will be absent from Katowice. The country’s withdrawal process, which was initiated last year, is so complex that it will take a long time. Formally, the United States is still a member of the global agreement, therefore American delegations take part in both the summit and the preceding meetings.

POLAND’S CONTRIBUTION TO COP24 The fact that Poland organises the COP24 climate summit is an opportunity to show how much this country has managed to achieve in the field of environmental protection. We have genuinely scored major successes. Compared to the provisions of the Kyoto Protocol, we have reduced carbon dioxide emissions by more than 30%, and we have significantly reduced dust, SOx and NOx emission levels. These are tangible achievements, but that is not all. The institutional infrastructure for shaping the future of the environment and climate has been developed, among others by the National Fund for Environmental Protection and Water Management. Programmes resulting from

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the government "Strategy for Responsible Development" have been launched regarding electro-mobility and combatting smog. We will earmark tens of billions of zlotys for these programmes over the next few years. This is the best proof that we do not intend to skimp on caring for the natural environment.

During the Polish Presidency of COP24, we want to share our experience of the profound transformation of the industrial region of Silesia. The host city of this year's summit – Katowice - is an example of how the policy of transformation, carried out consistently over a number of years, has paved the way for the development of innovative enterprises and creating new jobs. We are hoping that this venue for COP24 will provide a good opportunity to exchange ideas regarding the process of political, economic and social transformation.

Wishing to make use of our unique experience in terms of difficult changes, the Polish COP24 Presidency offers countries participating in the summit an opportunity to join international initiatives geared toward the development of post-mining regions, implementation of new technologies and supporting the natural environment. We have prepared three declarations which can make a fresh and significant contribution to the present way of thinking about climate protection.

One such project is a partnership aimed at the development of electro-mobility and zero-emission transport "Driving Change Together Partnership," which is dedicated to technological and organisational change. Given the present transport model and dominant types of propulsion and energy sources, it is impossible to reconcile the current pace of development with the goal of reducing dependence on fossil fuels. That is why we propose that electro-mobility should be one of the leading topics of COP24 and that a global Partnership and an annual Forum should be established. We want these undertakings to make it possible for people around the world to live in clean and friendly cities which will also be friendly toward the environment.

Another declaration "Solidarity and Just Transition Silesia Declaration" deals with the issue of ensuring a fair and just transformation that will help to preserve the climate while maintaining economic development and jobs. The progress of civilisation should be responsible in the economic, social, environmental and climate dimension.

That is why the path we want to follow is sustainable development, but at the same time emphasis should be placed on modernisation, technological change and implementation of innovations that enable a more efficient and environmentally friendly use of our own resources.

Yet another initiative proposed by us is the Ministerial Declaration "Forests for Climate" concerning the need to increase carbon sequestration by 2050. The Declaration also points out the key role of sinks in achieving the goal set by the Paris Agreement.

All these proposals have one thing in common - they are a declaration that we are ready for change which will be beneficial both for us and climate. I hope that as many parties as possible will be able to join these projects and together we will make these difficult but necessary arrangements.

In my view, in terms of the number of tasks to be undertaken and decisions to be made, this year's 24th session of the Conference of the Parties (COP), seems to be one of the most demanding and ambitious summits. It is also an opportunity to implement this year's motto "Changing Together" and to jointly make difficult decisions that will determine the future of our planet. In my opinion, there is a good chance that a compromise will be found in Katowice regarding all contentious issues, and therefore it may turn out that next to Kyoto and Paris, Katowice will become another important place in • the history of efforts to counteract climate change.

WORLD CLIMATE CHANGE SUMMIT IN KATOWICE

EVERYTHING’S CLEAR –

NOW IS TIME TO ACT A special report of the Intergovernmental Panel on Climate Change (IPCC) on the impacts of global warming of 1.5 degrees Celsius above pre-industrial levels and related global greenhouse gas emission pathways in the context of strengthening the global response to the threat of climate change was published on October 8. Under the Paris Agreement signed in 2015 by 195 countries, the report will be the key source of knowledge for negotiators taking part in the COP24 climate summit in Katowice, southern Poland, on December 3-15. PROF. MICHAŁ KLEIBER, former President of the Polish Academy of Sciences and ECCOMAS President, commented on the conclusions of the report at the conference “Can we still make it? 1.5ºC as a climate challenge: How to limit the temperature rise to this level?”

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f I were to sum up what has been written in the IPCC Report I would say: “Everything’s clear – now is time to act and every one of us should do what they can do and in whatever respect they can. This conclusion clearly results from the situation we are in. After getting familiar with the content of the report, there is no doubt that in order to meet the challenge of limiting the temperature rise to 1.5ºC we have to face difficult tasks, which so far have been poorly carried out, in many cases not carried out at all, tasks of which a large part of society is not even aware.

If so, then - to begin with - it is worth asking the question whether the data we are relying on are sufficiently credible. Because doubts are being voiced by various circles whether this is a policy we should support. We have reliable observations on Earth over a period of more than 100 years and they have been supported for 40 years by very accurate satellite observations. There is no doubt that the surface temperature of the planet is on the increase, oceans are accumulating more and more heat, sea levels are rising, the area of permafrost has declined markedly, glaciers are melting across the world, and the concentration of carbon dioxide and methane has greatly increased. That is for sure.

Then, there is another question: “Who or what is responsible for that?” There are people suggesting that, for example, Earth’s orbit is changing, solar radiation is changing, volcanic activity is growing and so on. They argue that man, who produces gas emissions, destroys forests and causes a number of other phenomena, is not responsible for climate change. But the conclusion of the Report – and we believe it – is that man has significantly contributed to what is now taking place with climate.

And there are people who say that the threat would not have existed if it had not been for us. Basically, we are the culprit or accomplice to this situation and it is our duty to spare no effort to prevent what may come in the future.

The conclusions of the Report are clear. The goal, which is to limit the temperature increase, is necessary, if feasible. And here comes the question: “How?” A synergy of various political, economic and social activities is needed. Secondly, it is still very important to disseminate knowledge about this topic because, although more and more people agree with the findings of this research, there is often no agreement when it comes to taking specific measures. Thirdly, the problem of solidarity among states and within states should be treated seriously.

It is very important for us to present in a clear and convincing way the expected distribution of short-term costs, point to long-term benefits,

and especially point out that the measures taken do not contribute, for example, to increasing social inequalities.

We are approaching a moment when we have to disseminate knowledge, speak broadly about threats, and at the same time talk and inform each other about how we should act in specific sectors of science and economy. There is a lot of it. The term “common good economy,” which is very close to me, describes the essence of what we should do. This is what we should promote and what is key to our • future.

PROF. MICHAŁ KLEIBER, Polish mechanical engineer and information scientist, the author of around 250 scientific publications and several books on the use of modern computing methods in scientific research, technology and medicine. He was minister of science and president of the Polish Academy of Sciences. He is a member of the Austrian Academy of Sciences, European Academy of Sciences and Arts, Academia Europaea, Senate of the German National Academy of Sciences Leopoldina, European Commission’s ambassador for a New Narrative for Europe, and president of the European Community on Computational Methods in Applied Sciences (ECCOMAS). He has been awarded with Poland’s highest state distinctions – the Order of the White Eagle.

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BUILDING THE POLAND BRAND THROUGH CULTURE KRZYSZTOF OLENDZKI, Director of the Adam Mickiewicz Institute (IAM) talks to “Polish Market’s” Maciej Proliński.

Culture seems to be one of the best Polish brands. Would you say that in this special independence anniversary year we have finally put Polish culture at the forefront by showing the world its true strength?

There is no development without culture, there is no innovation without it. A society which does not produce and consume cultural goods today is simply unable to compete in a proper and responsible manner in the innovation market, that is in the global economy based on broadly understood knowledge.

Every day I find proof that the power of Polish culture is really great. It grows in proportion to the projects we implement with our foreign partners. The strength of IAM lies in our values: cooperation, continuity, development and, above all, inspiration. The mission of the Adam Mickiewicz Institute is to inspire foreign artists, professionals and, above all, the public with Polish culture.

The foreign programme of the Multi-annual Government Programme "Niepodległa” (Independent Poland), entrusted to us by the Ministry of Culture and National Heritage, is the largest-scale venture promoting Polish culture after 1989. Within four years, within the programme, several hundred cultural projects will be implemented. By end-2018 alone, we will have carried out over 200 major projects from various fields of culture: first of all music, design, visual arts, theatre and dance, which are supported by smaller projects, very often organised together with Polish Institutes in foreign countries. We have also decided to use the "Niepodległa” (Independent Poland) brand in almost all our foreign activities, to celebrate the centenary of our regained independence together with our audiences. The aim of the programme and the goal of IAM's activities is to strengthen the image of Poland as a country with rich traditions which modern culture draws on, a culture which is PM

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an important element of the common European identity. The programme under the slogan "Inspired by the past, we create the future" is implemented in over twenty countries, with particular emphasis on Central Europe, Asia and major US cities. Its aim is definitely to boost Poland’s image and to inspire foreign artists and audiences with our culture. In this way the Polish culture brand can be built through a sustained effort to remind the world about our heritage and to create new values.

So in 2018 Polish art has again triumphed all over the world, hasn’t it?

Over 700,000 people have already participated in events organised by the Adam Mickiewicz Institute together with our partners as part of the foreign programme of celebrations marking the 100th anniversary of Poland's independence. Actually, it is difficult to mention any important city in the world, where we would not be present this year. Since the beginning of the programme, over 240 cultural events have taken place in 65 cities from the United States to Europe, with particular emphasis on Central Europe and Asia, including 76 concerts, 56 performances, 38 exhibitions, 37 workshops and 17 conferences. Information published on our website - Culture.pl – has reached 6.5 million users, who visited the site 18 million times during that time. In November, the climax of this year's programme, foreign audiences can participate in events mounted in such prestigious and recognisable places as the Pompidou Centre in Paris, Barbican Centre in London, New York’s Carnegie Hall and at the Polish design exhibition at Design Blok in Prague. Taking all these data into account, it is safe to say that we have reached almost 7 million potential recipients of Polish culture with the “Niepodległa” message. By the end of the year there will probably be even more of them, because the second season of our podcast "Stories from the Eastern West," produced by Culture.pl, is now broadcast by radio stations in Boston and 300 other American cities from Seattle to Florida.

PM

Many of these events have taken place in countries which are Poland’s next-door neighbours, where until now IAM was not present. Why did you decide to include these countries in your programme, too?

We build our presence in the region on the basis of very thoughtful research. As a result, we know that Bucharest, Riga, Vilnius and Budapest are cities in which demand for Polish culture is the highest and the reception of Polish culture is the most enthusiastic. That's also why we have mounted, for example, a rich presentation of Polish design, including an exhibition, during the Romanian Design Week and the Budapest Design Week. Polish music was presented for example at the Prague Spring Festival and at the Bridging Europe festival in Budapest. The festival opened with Sinfonia Varsovia's concert featuring the outstanding pianist Piotr Anderszewski.

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Polish music holds a significant place in the world and especially in Europe. Polish orchestras and Polish composers are known and appreciated. New concert halls are built in Poland, we have talented young artists. This places

us in an advantageous position on the world concert circuit, doesn’t it?

It does, without a doubt. Polish music is presented this year during special cycles, concert tours and concerts. The autumn music programme includes a Polish season at Hamburg’s Elbphilharmonie, which was opened in 2017. It is worth mentioning that commissions Polish composers have received are also an important point of our music programme. Agata Zubel, Elżbieta Sikora, Krzysztof Penderecki and Paweł Szymański have written works which have already been presented during concerts in Berlin, London, Hamburg, Warsaw and Vienna. The music programme also features a project devoted to the Polish Radio Experimental Studio. Its focal point is an exhibition at the Center der Kunst und Medien in Karlsruhe, to last until January 6. The show is accompanied by a series of concerts, album releases as well as projects based on new technologies such as a sample library, which recorded 18,000 downloads in the first month alone.

Bridging Europe – Concert of Sinfonia Varsovia featuring soloist Piotr Anderszewski

What about relations at the institutional level? What tangible results are achieved in this way, and is there a follow-up?

By implementing our values - "cooperation, continuity, development, inspiration" - we build strong institutional relations, we launch an entire chain of collaboration schemes.

All the events that we have prepared together with our partners have had one goal: what’s left when they come to an end.

Our main aim is to build a strong infrastructure of contacts at the institutional level throughout the world, but also at the level of individual subjects of international cultural exchange.

We try to give these contacts a stable, lasting, and I would say, an organic dimension. After this year's success of the Roman Cieślewicz one-man show mounted at the Museum of Decorative Arts at the end of October, we have opened another large exhibition in Paris, at the Pompidou Centre. To last PM

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Pianist, composer and politician Ignacy Jan Paderewski figures prominently in the 2018 cultural programme. It seems ironic that his name is remembered by many abroad, but not by many in Poland.

Naturally, the main icon of our programme is Paderewski, who embodies both culture, politics, national heritage and identity. He is the man without whom Poland’s independence would not have materialised, a figure which brings together all the threads, both in terms of Poland’s independence regained after more than a century of foreign occupation and Polish culture. He did not use his political activities to build his own position and material prosperity, because he had already won both. He served the people who elected him. He was able to generously share what he had with others, and he brought human values ​​and love for his country to the fore. For me, he serves as a model of a man who makes full use of his talents, never lets standards drop and generally does his best. His biography is an ideal topic for a film or a musical. That is why in January 2017 we announced a competition in the United States for a musical inspired by his life and activities. In the second stage of the Paderewski Cycle competition, which took place in June 2017, the jury picked nine scenarios. The writers were invited to prepare 15-20 minute presentations of their idea at two events in Los Angeles and New York in November 2017. The next, third stage of the project, currently being implemented in late November and early December, includes "work in progress" shows of seven musical pieces about Paderewski, selected from the ideas of Paderewski Cycle 2017, and developed one year later in art centres in four American cities: New Orleans, Los Angeles, Albuquerque and New York. Prominent representatives of the US academia, producers of Craft performances and potential investors were invited to watch musical shows about Paderewski. We want this musical to end up on Broadway. The premiere is planned in the United States on November 11, 2019. But before this happens, I would like to express my gratitude to those who are behind the production of the opera "Manru" at the Teatr Wielki Polish National Opera in Warsaw.

They have truly revived this forgotten opera by maestro Paderewski.

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Centre Georges Pompidou – The opening of a show devoted to Katarzyna Kobro and Władysław Strzemiński

What kind of activities can Polish artists expect from IAM? Above all, a strong focus on the promotion of Polish culture and cultural education. These are still somewhat neglected areas, which are perceived only in terms of events to organise. I am happy that together with the Ministry of Culture and National Heritage we have managed to develop promotional tools that we want to develop. I have the impression that for many years, the promotion of Polish culture in the world has been designed chiefly for our own sake. Our goal was to organised big events. There has been a change in this perspective.

Our projects are currently implemented based on study visits by foreign artists, curators, and journalists - in order to make Europeans and Asians genuinely interested in Polish culture, not on a one-off basis. We want to build a market not only for our masters but also for young artists. We also want to encourage Poles themselves to participate more actively in culture: to buy art works, read books, visit interesting places and artistic events. IAM is not just there to organise events. Concerts, art shows are not goals in themselves or mere additions to other more important events. They are ways of telling the story about Poland, as well as its economy. Therefore, communication is an important product of our activities. Here we have to put in a little bit more of an effort. However, we are definitely building our presence in foreign media. This year shows that we are doing it suc• cessfully.

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Zentrum für Kunst und Medien w Karlsruhe – exhibition devoted to the achievements of the Polish Radio Experimental Studio

until January 14, it is a retrospective of internationally acclaimed Polish avant-garde artists Katarzyna Kobro and Władysław Strzemiński.

This is the most important joint undertaking by IAM and the Arts Museum in Łódź, coming hot on the heels of exhibitions of the two artists’ work held in Madrid and Malmö. Both institutions remind global audiences about the place this pair of artists holds in 20th-century art history. At the same time, we have opened an exhibition entitled "Young Poland" at the Gothenburg Art Museum. This exhibition, prepared in conjunction with the National Museum in Warsaw, is the most comprehensive presentation of Polish painting in Scandinavian countries. The fact that we cooperate so effectively with our domestic and international partners means that institutions from all over the world come to us because they are interested in Polish art and are keen to host exhibitions of works by Polish artists.

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‘We and the War’ by Edward Okuń, 1923, photo: National Museum in Warsaw

Organised by the Gothenburg Museum of Art in cooperation with the Adam Mickiewicz Institute and the National Museum in Warsaw. www.goteborgskonstmuseum.se More information: culture.pl/en/event/young-poland-visits-sweden

@goteborgskonstmuseum

Vi och kriget , 1923 (detalj), Nationalmuseet i Warszawa

at the Museum of Art in Gothenburg open till 17th March 2019.

Edward Okuń,

Göteborgs konstmuseum är en del av Göteborgs Stad

The largest exhibition of Polish painting in Scandinavian countries

A GREAT EMOTIONAL EXHIBITION

Jerzy Kossak - "Miracle on the Vistula" – Royal Castle in Warsaw

Five hundred works of art, several hundred documentary photographs, archive documents, film footage and soundtracks are on show at the exhibition "Signs of Freedom. About the Endurance of the Polish National Identity" at the Royal Castle in Warsaw. Arranged in a chronological manner, it features the story of Poland's fight for freedom and democracy in the years 1914-1989, and of efforts to preserve the national identity. The organisers of the exhibition are the Ministry of Culture and National Heritage, the Royal Castle in Warsaw, the Ministry of National Defence, the Military Centre for Civic Education, the Polish Army Museum and the Adam Mickiewicz Museum of Literature in Warsaw. The exhibition is held within "Niepodległa" (Independent Poland) programme, under the patronage of President Andrzej Duda. It will last until 31 March 2019.

Maciej Proliński

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he show takes up half of the exhibition area of ​​Warsaw’s Royal Castle. The size of the exhibition is not only recordbreaking, what with 30 exhibition rooms, almost 500 works of art, obtained from many institutions and private collections, and several hundred documentary photographs. It is also

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a monumental historical fresco, capturing in a chronological order, the struggles for national sovereignty and national consolidation. Visitors are invited to ponder on the essence of national identity.

The artistic structure of the show is made up of masterpieces of Polish art by its most eminent representatives, including Jacek Malczewski,

Antoni Rżąsa - "Insurgents’ Pieta" – National Museum in Warsaw

Maksymilian Gierymski, Bruno Schulz, Zofia Stryjeńska, Adam Bunsch, Wojciech Weiss, Krzysztof Kamil Baczyński, Jan Lebenstein, Władysław Hasior, Stanisław Ignacy Witkiewicz, Józef Czapski and Antoni Rząsa, referring to specific historical events, social movements and attitudes over the years.

A rich plethora of contemporary art beginning with the 1980s is also on display, for example, with works by Włodzimierz Pawlak, Leon Tarasewicz, Edward Dwurnik, Antoni Fałat and Krzysztof Bednarski.

The acclaimed 19th century Polish historical painter Jan Matejko makes a very strong showing. His output includes over 300 large oil paintings which chronicle key figures and events in national history. He offers visitors a peek into the different epochs and sometimes prophetically predicts coming events.

His large-format paintings - “Báthory at the Battle of Pskov," "May 3 Constitution," "Rejtan,” “The Fall of Poland" and "Father Skarga’s Sermon" form the core of the exhibition. As the organisers of the show assure, the paintings should be treated as timeless examples of ideological and ethical personal and collective choices as well as recurrent events in history. For the aim of the presentation is to show similar situations in the course of Polish history in which the nation found itself, during which individual Poles reacted on the basis of a common set of values.

For example, in "Báthory at the Battle of Pskov" the image of the Polish-Hungarian warrior king who fought against Russia in the 16th century is confronted with the Battle of Warsaw against the Bolshevik invasion of 1920. In the famous painting by Matejko, a Russian envoy pays homage to the Polish king, and next to it we can see photos of Soviet war prisoners from 1920.

Matejko’s "Rejtan," which depicts an 18th-century MP who dramatically protested against Poland’s dismemberment by its neighbours, is juxtaposed with the image of self-immolation by Ryszard Siwiec at a Warsaw stadium in protest against the Soviet-led invasion of Czechoslovakia in 1968 and an image of Czech protester Jan Palach’s better known desperate act committed in Prague.

Freedom of expression in Polish art is a recurrent topic in the exhibition. An important role is also played by landscapes which demonstrate the emotional attachment of Polish people to the land of their fathers as a crucial feature of the national identity. Photographs of faces and historical events capture individual people’s experiences, which are also brought out in personal testimonies - fragments of letters, diaries, notes and historical records.

The exhibition presents both historical events and the lives of ordinary Polish citizens affected by them. For instance you can take a glimpse of the thriving world of cafes and cabarets of the 1920s and 1930s.

"Today is a moving day for the Royal Castle for several reasons. Firstly, it is a huge exhibition situated in 30 rooms, which takes up almost half of the castle, and which spans the past one hundred years. The exhibition, which carries a lot of emotional expression, is housed in a calm, organised museum interior. It revolves around the central topic of freedom. The idea of the ​​ exhibition is to show exquisite works of art to convey a message. ‘Signs of Freedom’ is intended to produce emotional reactions, to be thought-provoking, to allow visitors to reflect on the central topic. Nobody is meant to leave the show unmoved. This exhibition produces a load of emotions, not only concerning its historical message. At the same time it complements fine works of art with a very rich documentary layer,” Professor Wojciech Fałkowski, director of the Royal Castle in Warsaw, told a press conference which preceded the opening night.

"This exhibition is like an essay, yet it is full of emotions. It is vast. This attempt to read the past means reading the signs of the time, recorded in documents, photographs, films and in art, which interprets history. There are signs of freedom, but also of enslavement. The exhibits create the fabric of the exhibition, narrated by Jan Matejko, but not as a 19th-century painter, but as a historical thinker and prophet who looks into the depths of history and anticipates future developments,” curators Łukasz Kossowski and Irena Kossowska who prepared the exhibition explained.

"The main idea of ​​such a huge project was to make visitors think about what national identity is, what it meant in all those decades when it had to be protected in all sorts of enclaves, when it was necessary to defend the language, culture, family and religion against external oppressors. But also on the sense of national identity today. The exhibition is open-ended, we do not try to impose definitions on visitors, but we want to make them think about what price Polish people had to pay to live in a free country. It is a tribute to all generations which had to sacrifice so much. The years of 1914 and 1989 are symbolic. The last room features the results of a selfie competition to set the show in a contemporary context. We have selected the best works and put them on show, which is meant to engage younger audiences in a dialogue," Irena Kossowska explained.

The exhibition is complete with archive materials taken from the National Film Archive collection - the Audiovisual Institute (FiNA), in particular regarding the interwar period of 1918-1939, to feature the most important events in the history of the reborn Polish state. Experts of feature films are shown, for example of the famous "Banner of Freedom" (1935) directed by Ryszard Ordyński, a documentary about Marshal Józef Piłsudski's life and work. In this biography, the director used various archive materials. He combined them with staged inserts made specially for the film. The soundtrack features military songs and incidental music by Jan Maklakiewicz. Original newsreels from 1915-1916 present unique images of the outbreak of World War I, as well as the occupation of Warsaw and the Modlin fortress by German troops in August 1915. An emotionally-charged documentary about Marshal Józef Piłsudski’s funeral ceremony in May 1935 shows just how popular the father of Polish independence was.

Footage shot in September 1939, found in Warsaw's Old Town in the 1960s, provides testimony of the tragic fate that befell the Royal Castle as the city was bombed by Nazi Germany. There are scenes of Warsaw engulfed in fire, death, destruction and hunger. The recurring shots of the burning Royal Castle are a terrifying symbol of this horror.

Music plays a very significant part in the exhibition. Visitors can listen to songs which were the most popular in particular decades, performed by the greatest Polish bards, such as the 1960s and 70s star Czesław Niemen, and the trio Kaczmarski, Gintrowski, Łapiński. The latter came to be recognised as the bards of Poland’s Solidarity revolution of the 1980s.

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Maciej Proliński

Nearly 300 works are on show at the National Museum in Warsaw as part of a large-scale exhibition "Shouting: Poland!

Independence 1918," marking the 100th anniversary of the country’s rebirth as an independent state. Its main aim is to show the way in which historical and political events were depicted in Polish art at the threshold of independence. To last until March 17, this is the third topical exhibition mounted by the National Museum this year focusing on the year 1918. The previous shows were devoted to world-famous pianist, composer and statesman Ignacy Jan Paderewski and painter Józef Brandt.

The exhibition perfectly fits the "Niepodległa" (Independent Poland) long-term programme whose aim is to strengthen the sense of the national community. Several thousand initiatives are implemented within the programme.

T

he title of the exhibition refers to a poem by the eminent 19th century poet Juliusz Słowacki entitled "They walked shouting: Poland! Poland!" It shows examples of art produced on Polish soil just before independence, when the country was still divided between Russia, Germany and Austro-Hungary. The focus is on works by leading Polish painters of the turn of the 20th century, such as Jacek Malczewski, Zofia Stryjeńska, Tadeusz Makowski, Wojciech Kossak, Leopold Gottlieb and Leon Wyczółkowski. There are also paintings by dozens of other artists who lived in and outside Poland, some of whom are sadly forgotten. Visitors can find out about the participation of Polish artists in armed struggle during World War I and in wars against foreign invaders that followed it. Images of war and independence struggle figure prominently in these artists' works presented at the exhibition. "This is an exhibition which shows the political, social

26 polish market

and cultural background of all processes that led to the regaining of independence by Poland," Deputy Prime Minister Piotr Gliński said during the opening of the exhibition on October 25. "Most of the works belong to this museum. Some of the pieces are not normally on display, some have not even been shown at all. These are often outstanding works of art. The exhibition also illustrates the emotions, the enthusiasm and the strength of Polish society at a time when it made a successful bid for independence after 123 years of foreign rule. The remarkable thing was that Poles managed to quickly build one entity out of the three very different occupation zones, where people lived different lives, and where intellectual debate had taken a different course. They succeeded. Our identity survived during the time of subjugation thanks to culture. You can see it clearly at this exhibition," said Minister Gliński. The show consists of various parts arranged in chronological and topical order, starting with the years

Photos: Bartosz Bajerski_MNW

FROM MALCZEWSKI TO PIŁSUDSKI

1905-1907 and the period of World War I. It takes the visitor through some dramatic events which took place during struggles for securing the borders of a reborn Poland, the election of the first Parliament in 1919 and the election of President Gabriel Narutowicz and his assassination by an extremist in 1922. "The narrative of the exhibition begins with the birth of the Young Poland movement, a trend which lasted until the outbreak of the war," curator of the exhibition Piotr Rypson, Ph.D., explained. At the entrance to the first room you can see the famous painting by Jacek Malczewski "Polish Hamlet" of 1903. The painting depicts a grandson of Aleksander Wielopolski who served as the governor of the Russian-ruled Kingdom of Poland.

Wielopolski opposed the idea of national uprisings and advocated a settlement with Russia. The figure in the painting stands between two women who are symbolic incarnations of the image of Polonia, the spirit of Polishness. The older woman in shackles symbolises a heroic but passive attitude towards violence. The younger woman shakes off her chains.

The next part of the exhibition is dedicated to the 1905 workers’ revolt in the Russian occupation zone. There are paintings such as Stanisław Lentz's “Strike,” “Street Demonstration 1905,” by Władysław Skoczylas, and Stanisław Masłowski's "Spring 1905." The paintings are accompanied by drawings, among them two graphic series by Antoni Kamieński and Witold Wojtkiewicz.

The cruelty of war, the fear and suffering of the civilian population, are in turn the subject of paintings and graphics by Władysław Skoczylas, Władysław Wanka, Jan Żyznowski and other artists. Two particularly moving paintings are "Pietà" by Władysław Roguski, a member of the Polish Legions, and "Refugee" by Jan Rembowski of 1915, shown for the first time in 90 years.

"The war is presented here in the spirit of Goya as an endless nightmare, barbarity, full of rapes, violence, people blinded by nerve gas, ghosts and monsters that crawl out of gunpowder smoke, creating an image of ruthlessness and destruction. I wanted to show how horrific that war was, regardless of the fact that various nations of Central and Eastern Europe won independence as the result of it," the curator of the exhibition said. "It also turns out that some of the most recurrent images in the art of the Great War period are trees - maimed, damaged, pierced, or proudly standing next to a sea of crosses," he added.

The next part is devoted to the Polish Legions - the first Polish military formation of the 20th century under Józef Piłsudski. It encompassed various paramilitary units operating before WWI, chiefly in the Austrian occupation zone. It features scenes from battlegrounds, trenches, dugouts and military encampments with an emphasis on ordinary soldiers’ experiences.

Another part of the exhibition, entitled "Independent Poland and New Art," shows the shaping of modern aesthetics, the emergence of the first avant-garde groups, the search for their own artistic form expressing Polish identity. There are works by Formists, an artistic movement operating in 1917-1922 which called for moving away from realism and giving precedence to form over content. There are examples of works by artists who were part of a movement known as the Rebellion which operated in the western city of Poznań between 1918 and 1920. Its radical artistic programme was derived from the ideology and poetics of German expressionism. Graphics and drawings

by Tytus Czyżewski, Stefan Szmaja, Władysław Skoczylas and Zofia Stryjeńska are also on display.

In the part of the exhibition entitled "War against the Bolsheviks and the Fight for Borders," paintings representing various styles are collected. In addition to war scenes by Wojciech Kossak, there is a painting by Ludomir Sleńdziński which portrays Poland’s military leader Marshal Józef Piłsudski during the Polish-Lithuanian

struggles for the city of Wilno/Vilnius. Another painting is "Gulliver and Giant" by Tadeusz Pruszkowski. In the room dedicated to the Polish-Bolshevik war of 1920, visitors can admire both well-known and unknown works, such as "The Charge," painted by Jerzy Hulewicz in the 1930s in the manner of Italian futurism. This work is on show for the first time.

The exhibition also includes an auto-lithography cycle by Stanisław Lentz, depicting scenes from the Polish Parliament. It features portraits of deputies, offering visitors a glimpse of how diverse the first Polish Parliament was. Next to the lithographs hangs a portrait of the first President Gabriel Narutowicz by Czesław Wdowiszewski.

There is also a bust of Narutowicz, sculpted by Edward Wittig. The final part of the exhibition is entirely devoted to various depictions of Marshal Józef Piłsudski, known as the father of Polish independence. "Marshal Piłsudski was very aware of the role of the media and propaganda means of the day. He deliberately shaped his image in a Nietzschean manner,” Piotr Rypson pointed out. In the Piłsudski room, numerous busts are gathered, which were designed for several competitions for a monument devoted to him. The exhibition also includes multimedia presentations of works by contemporary artists, interspersed among older works. Visitors can watch scenes from the famous movie "The Wedding" by director Andrzej Wajda, a video recording of the play "Wielopole, Wielopole" by Tadeusz Kantor and multimedia presentations by Piotr Uklański and Przemysław "Trust" Truściński.

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Economy

In Polish media you often find reports on trail-blazing discoveries and technological revolutions about to happen, but Poles are still waiting for a local blue-chip company that would become a global brand. Now a new generation enters the game of business people who have been brought up in an independent country which is a market economy. Can they make the Polish dream come true? “Polish Market’s” Jan Sosna talks about it to DAWID URBAN, a business angel, entrepreneur, YPO member and co-founder of eSmoking World, the European 28 polish market leader in the e-cigarette market.

Photos: Tatiana Jachyra

DON’T TELL ME IT CAN’T BE DONE

Economy Are you planning a market revolution?

I’ve been a trader at heart, right from my childhood days. I was born in the small village of Kaliszkowice, where I helped out at my parents’ grocery store. Each day before school I went with my dad to the wholesalers to pick up goods. When I came back from school, I was back at the store. I was involved in retail trade from the age of 10 and I always knew what I would be doing later on in life. I deliberately picked a technical trade school over a comprehensive, because it offered economics, marketing and accounting.

Then, I took up business management at university level.

I knew what my dream was right from the start. It wasn’t a family corner shop but a huge firm which would employ a thousand people. I dreamt of business meetings and transactions. Honestly, nobody gave me any encouragement or support. My parents said: “We may own the shop, but it’s a hard life. Look for a job as an employee, it’ll be easier for you. Look how many hours we work, up to sixteen hours a day. We never go on holiday, we can’t have any rest.” In spite of offers of well-paid jobs, I took the more difficult path to have a business of my own. My childhood experiences guided my choices. It wasn’t my studies, friends or trends that proved decisive in my life.

I love hard work, maybe I’m a workaholic. Even when I sold my “huge firm,” I was back at work the very next day.

Nothing had changed, even though there are so many temptations out there. I may have lots of money in the bank, but I still go to work, I do my duties, I meet with people. Nothing’s changed in this respect.

PM

It says “business angel” on your business card. What does it mean in your case?

It probably sounds less pretentious in English than it does in Polish. But I like this expression. It keeps reminding me that even in business, kindness and humility are worth more than a ruthless, 100% calculating approach.

PM

Many of these events have taken place in countries which are Poland’s next-door neighbours, where until now IAM was not present. Why did you decide to include these countries in your programme, too?

We build our presence in the region on the basis of very thoughtful research. As a result, we know that Bucharest, Riga, Vilnius and Budapest are cities in which demand for Polish culture is the highest and the reception of Polish culture is the most enthusiastic. That's also why we have mounted, for example, a rich presentation of Polish design, including an exhibition, during the Romanian Design Week and the Budapest Design Week. Polish music was presented for example at the Prague Spring Festival and at the Bridging Europe festival in Budapest. The festival opened with Sinfonia Varsovia's concert featuring the outstanding pianist Piotr Anderszewski.

PM

What goes around, comes around?

Definitely, at least in my case. It took me ten years to build eSmokingWorld from scratch, with no capital. It all started with the store I ran together with my parents. Then, I worked as a waiter at weddings. Every penny I earned I put aside toward my university fees. I went to clubs, not to have fun, but to look for niches where I could sell products.

First, I came up with Astro Glow straws and gadgets. That’s PM

IT DIDN’T MATTER TO ME HOW MUCH I WAS EARNING BUT WHAT I WAS HOPING TO ACHIEVE, TO BUILD SOMETHING NEW. I ALWAYS WANT TO COME UP WITH SOMETHING WHICH NOBODY’S EVER DONE BEFORE. EVEN WHEN I JOIN EXISTING INVESTMENT PROJECTS, I PICK UP ON SOME THINGS AND I BUILD A NEW PROJECT IN MY HEAD.

how it got started. I had a business partner, Miłosz, who had a knack for buying stuff, even in China, but he wasn’t any good at marketing. He was afraid to approach people to sell them products. I would put the products in my case and off I went to the clubs. In 15 out of 100 clubs in the city of Poznań they told me not to bother them, but in all the others they didn’t. I used to study during the daytime and in the evening, when my friends went out to party, I went to work. Sometimes I met them in clubs. They were having a beer and I came up to them to offer glowing straws.

It wasn’t easy but you need all the work you can get. I hate it when people judge others in terms of how much money they have. I also hate it when someone disrespects money and other people’s work. I always try to do my best. I don’t like it when others don’t put their heart into what they do, or speak disparagingly about their job.

Why have I become a business angel? I’m keen to provide backing for a firm which is a sound business idea. What do I mean by “sound”? When I was building eSmokingWorld and already had 500 people working for me, I still lived in a bedsit. It didn’t matter to me how much I was earning but what I was hoping to achieve, to build something new.

I always want to come up with something which nobody’s ever done before. Even when I join existing investment projects, I pick up on some things and I build a new project in my head. How? I’m aware of how much things have changed over the years, and that’s why you need to look for inspiration in other people. You need to look to adults to share with you their wisdom and their respect for life. But it’s your children you need to look to for inspiration. I talk to my kids about their dreams and plans. They are openminded and kind-hearted, while adults tend to lose these qualities when they are overwhelmed by problems. Well, most of us need to face problems but we need to overcome them and keep pushing on.

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Economy

So a business angel needs to be persistent?

Before I developed eSmokingWorld, I faced the threat of closure many times. Someone described the product as “a designer drug,” officials knew nothing about vaping, there was a lot of negative PR, nobody was keen to invest. I tried to sell e-cigarettes for three years and everyone kept saying that it couldn’t work out in Poland because British American Tobacco had a monopoly on practically everything, it had contracts with retail outlets. I was facing a wall. But I didn’t give up and I looked for a solution.

PM

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I KNOW HOW TO WORK WITH PEOPLE. I’M ABLE TO NOTICE WHAT THEY’RE GOOD AT AND TO MOBILISE THEM TO MAKE THE BEST USE OF WHAT THEY’VE GOT

So how did you make it into a success?

I told myself I would reach out directly to the consumer. I know it’s a good product. I bypassed the wholesale network, big companies and market chains, I evaded threats, I focused on the man in the street.

Shopping malls had started mushrooming in Poland at the time. I didn’t have enough money to put up a network of stalls inside malls but I met a few people who were ready to invest in such a form of sales. I had the product, a registered trademark, and I teamed up with others on the “your stall – my product” basis. The first stall was in the Galeria PM

Economy Mokotów mall in Warsaw. It did very well and it opened up the way to other malls. My brother Hubert and his friend, a carpenter, made pieces of furniture for other stalls. They brought them to Warsaw and assembled them on site. When I had tried to order such furniture in Warsaw, all I heard was excuses. I was told to join the queue, to wait for designs and analyses. That’s not how things are done in the countryside. Why the elaborate preparations? Just neatly cut a few boards and paint them, that’s all. Instead, they wanted to analyse it to death, which had nothing to do with reality and only generated extra cost. My market research concerning e-cigarettes worked like this: I gave one to my dad, who was a habitual smoker. I was always hacked off when he took a puff at the table, inside the car, everywhere. The stench was dreadful. I wasn’t a smoker, so I asked my dad: “Can you try it to see if it works?” He inhaled, coughed and said it worked like nicotine. And that was my market research. If I had booked a market study, I would have been told that it was a hopeless idea, that I wouldn’t be able to face up to competition and that I would be quashed even before I got started.

I don’t have much faith in big corporations, either. When I sold eSmokingWorld, the president of British American Tobacco asked me to stay on as the CEO. OK, I thought. My friends and family members were part of it, in a small town you feel responsible for them, so I reckoned I needed to carry on. Actually, I was enthusiastic. With fresh capital, a vast logistical and distribution network, I was ready to take on Europe. But after half a year of corporate meetings, dozens of presentations and repeated assurances that “we are ready to do it,” I finally asked the supervisory board if they didn’t have a sense of déjà vu. We had been talking for half a year and we achieved nothing. The decisionmaking process was dissipated, nobody felt responsible for anything, there were corporate policies, and nothing really got done. I used to introduce three to four products a month, while here not a single one was introduced within the six months. Or there was a new product which turned out to be a complete failure “but it has been tested by one hundred university professors in London.” Then three customers in Poznań rejected it. What a waste of money. After half a year of these corporate struggles I felt that I had no room to breathe and that not much could be done there. I told them in earnest: “If I stay with you, I don’t think I’ll ever achieve anything else in my life.” Yes, I did have a team of workers, I had secretaries, company cars, but I still wanted to achieve something. When I decided to leave, I cried like a baby. After all, the company was my baby. I had built it up. But I knew it was the right choice. I was yet to make a farewell speech but I was lost for words.

It took some thinking before I decided it was a good move to sell to build something new. I’ve had my ups and downs, I’ve gained plenty of experience. I reckon that running a business is extremely hard work. Only those who never ran a company can think otherwise, or those who were given things on a plate and made a mess of it. Running a business is extremely stressful. You’re on a rollercoaster ride.

But at the end of the day, you make profit to invest further. eSmokingWorld didn’t give me the opportunity to build a global company. We already opened up a few shops in Europe – in Germany, Ireland. One the one hand, I was lucky in that I found my niche. On the other, I was unlucky to have faced formidable competition from some of the world’s biggest corporations right on. I also had to cope with state regulations. And then came the dilemma when to leave the stage and start building things up anew.

How to kill a few birds with one stone? Now you’re building up a few projects at once, and not necessarily from scratch…

I don’t think I’m spreading myself too thinly. I even invest in firms that are not doing so well. There are those who have a good idea and a good team, but their business side is somewhat lacking. They are in need of support in these terms. But above all, they must be passionate PM

about what they do and they must be ready to do their best to develop the firm.

How many of them fail all the same?

I have invested in a furniture company which I called the Polska Grupa Meblowa (Polish Furniture Group.) I bought a bankrupt firm.

I first found out about them when I bought some of their furniture for one of my firms, a logistics centre, my office and I also ordered some furniture for my home. The owner employed a crew of 30 but he was more of an artist than businessman and he ran the firm badly. For 15 years. I realised what was coming when my order was delayed. We had an honest chat and I decided to help him out. I bought his firm, overhauled it and it’s already turning a profit. That’s what I like: to find the winning recipe. You need to add some new technology and something fresh, like virtual reality.

PM

What does virtual reality have to do with making furniture?

You’ll soon need it everywhere, whether you trade in garments or design furniture. It’s still difficult, I know it from experience. It started with helping out a friend, then came the injection of something new and now comes the company’s transformation one step at a time.

From the original 30, the crew has grown to 100. I’ve set up a sales department with a new approach to sales. The sales team is encouraged to take part in trade shows. They say there were no potential customers at a show. But what did they do to find them? Get out of your offices and reach out to find customers. They won’t turn up just like that.

Another example, my brother Patryk came up with a brilliant idea of a web portal called Siepomaga. It’s all about helping others. There were times when he was ready to chuck it because his partners had pulled out. I promised to back him for a three-year period. He has now managed to reach a scale which has enabled him to sort out the financing. Now the Siepomaga Foundation is able to offer help to children to the tune of PLN 300 million. In this case, I must admit, business considerations mattered to me less that my conviction that good intentions must not end up in failure.

PM

Did you also come in to rescue other projects such as Lokatoblok and givt?

No, I was invited to oversee these two projects. My team members came up with the names. I knew that both ideas were about helping people whose posessions were stolen from them. But let me also mention a firm which was founded to fly in the face of human greed. I have noticed that those who have quite a bit of money to spend don’t hesitate to buy luxury goods but are less keen to spend on charities. That’s how Luxury Concept World got started. It’s a firm which does offer luxury products and services. But the high mark-ups on individual products go toward our charity portal Siepomaga. It may have a Robin Hood ring to it, but it does work. The reason I mention it is because I wouldn’t like to be perceived solely as a man who built a big company and sold it, someone who knew how to make money. It is a mark of success but there are also things that matter more in life, aren’t there?

PM

Where does your involvement in building artificial intelligence come from? Techonologically, these are dizzying heights and possibly the risks are the highest.

You mean Samurai Labs. But in a way, it’s also about helping other human beings. Michał Wroczyński was about to fold his business. He had spent several years in California. He suffered a burnout. He tried, fought, bounced against the wall, won financial backing once, joined corporate structures, where you need to be lucky to reach the right people. Quite by chance, I had just left the corporation I worked for.

I was “on the dole,” and exactly on that day I met Michał. It took me an PM

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Economy hour to understand what it was he was doing and what it was meant to serve. Like many IT wizards, Michał doesn’t find it easy to explain things in plain words. But I finally grasped that his tale of search engines and algorithms to discover hate speech on the web could actually lead to practical applications, for instance in parental controls. And that such apps could really be developed. This has opened up fresh vistas for me. I can assure you that we will soon have a Polish product which will take the global market by storm. Just wait and see.

Can we really beat Zuckerberg and Facebook at their own game?

Absolutely. I don’t think that Poles are any less creative or effective as inventors and business people than others.

PM

But for now we are still lagging behind. Time and again you hear about breakthrough Polish technologies and products which are later sold to someone else or not even commercialised.

In our case it will be different. We are creating a brand. It’s a good brand name: Samurai Labs. The company is registered in California, the team is based in Poland. Poles generally don’t feel up to building brands of their own. Polish ventures are involved in lots of projects but they are under a US, British or Japanese brand. My approach is to address the consumer, no matter what the product is. You need to reach out to the consumer. A number of firms carry out outstanding projects for someone else. I want to do it differently. For example, I’ve bought the Dobra Forma furniture company, now I want to turn it into an international brand. It’s no longer Dobra Forma, it’s the Polish Furniture Group, because, firstly, this country is a leader when it comes to furniture making. Secondly, I can already see how much interest our product range has generated. This firm had never supplied products outside Poland. Within a year we have built its new image and now we have orders coming in from the US and Dubai. The owner of the original firm once told me it couldn’t be done. I asked him if you tell your workers that, how are they supposed to work? We had already implemented a project for Hilton in Munich in Germany so how was it possible? He was adamant that they could only make furniture locally in the Nałęczów area, and that was that. It was all in his mind.

I’m not afraid to send offers out, to hire people who can speak foreign languages and send them abroad. We stand a good chance of succeeding at least in Europe. We are still hungry for success. Those who have made it aren’t just as keen to go the extra mile.

PM

All my companies are just a beginning. We have yet to wait for the results. I’m certain that within five to ten years we will make a presentation where most of them turn out to have grown bigger and better. Where do I see the best opportunities? First of all in Samurai Labs – it’s about AI. The Polish Furniture Group also looks very promising.

I can already see how the range of orders is changing.

Was the top Polish footballer Robert Lewandowski enthusiastic about his investment in Samurai Labs?

Yes, it fits him very well. Anything he does, he wants to come out on top. In this case, it’s the very peak of technological achievement.

The human dimension matters, too. Even the name Samurai Labs is right, Robert is well-known for his fighting spirit on the football turf.

He has made the investment, it hit the headlines, so Robert has become the obvious face of the brand. It’s all going in the right direction.

I reckon that we still need about a year’s time.

PM

We hope that these two stars will shine globally. Is that enough for you?

I’m not an expert in any particular field. I know how to work with people. I’m able to notice what they’re good at and to mobilise them to make the best use of what they’ve got. I understand that not everyone knows how to do it. I was once surprised that, once the market economy was restored in 1989, my father who infected me with the love for commerce and entrepreneurship, himself did not decide to develop his corner shop business. Only later did I realise that the political system under which he had lived most of his life, encouraged people to be cautious and not to take risks. I’ve always wished he had taken the plunge. I’m still dreaming of a large network of groceries. Even though I once set up eSmokingWorld, which used to be all mine, I’m still going to launch a new grocery chain. I don’t intend to follow in Żabka’s footsteps, or anything like that. I own a company called Surge Cloud which embodies my vision of modern retail trade. It will have automated shop shelves which will control the quality, quantity, and sell-by dates of products and will manage supplies. The network will offer a take and go service. Bar codes will be replaced with product tags. Cashless payments are becoming more and more popular, so now is the best time to introduce this service. We have already designed a prototype store. We are testing some solutions but in a year’s time we will launch a retail trade revolution.

• PM

DAWID URBAN – business angel, entrepreneur, member of YPO. Co-founder of e-Smoking World, the European e-cigarette market leader, now part of British American Tobacco Group. Owner and co-owner of more than a dozen firms and brands. Business experiments are his passion. He loves thinking about the future, implementing new ideas and supporting worthwhile initiatives. He is always keen to work with those who think outside the box.

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grand peARLS

peARLS

NO.

NAME OF COMPANY

SCORE

1

ANWIL S.A.

122

2

BUDIMEX SA

93

3

JASTRZĘBSKA SPÓŁKA WĘGLOWA S.A.

89

4

LUBELSKI WĘGIEL BOGDANKA S.A.

83

5

MONDI ŚWIECIE S.A.

81

6

RONAL POLSKA SP. Z O.O.

76

7

KRAJOWA SPÓŁKA CUKROWA S.A. GRUPA KAPITAŁOWA

72

8

BP EUROPA SE SPÓŁKA EUROPEJSKA ODDZIAŁ W POLSCE

69

9

VOLKSWAGEN MOTOR POLSKA SP. Z O.O.

65

10

BRENNTAG POLSKA SP. Z O.O.

61

10

FIRMA OPONIARSKA DĘBICA S.A.

61

11

GK PCC ROKITA

60

12

CNH INDUSTRIAL POLSKA SPÓŁKA Z OGRANICZONĄ ODPOWIEDZIALNOŚCIĄ

59

12

OPERATOR GAZOCIĄGÓW PRZESYŁOWYCH GAZ-SYSTEM S.A.

59

13

ANWIM SPÓŁKA AKCYJNA

57

13

CCC SA

57

13

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI W M.ST WARSZAWIE SA

57

13

SITECH SP.Z O.O.

57

14

ITAKA HOLDINGS SP. Z O.O.

56

15

GRUPA KAPITAŁOWA CIECH

55

15

ROBERT BOSCH SP. Z O.O.

55

16

GRUPA KAPITAŁOWA COGNOR

54

17

AB S.A.

48

17

WIPASZ S.A.

48

18

FCA POLAND SA

47

19

BSH SPRZĘT GOSPODARSTWA DOMOWEGO SPÓŁKA Z O.O.

46

19

KONSORCJUM STALI S.A.

46

20

ENEA S.A. (GRUPA KAPITAŁOWA ENEA)

45

20

TRW POLSKA SP. Z O.O.

45

21

GK CYFROWY POLSAT S.A.

44

22

KGHM POLSKA MIEDŻ S.A.

43

22

NEXTEER AUTOMOTIVE POLAND SP. Z O.O.

43

23

GRUPA KAPITAŁOWA COMARCH

42

24

SPÓŁDZIELNIA MLECZARSKA MLEKPOL W GRAJEWIE

40

24

UNIBEP SA

40

25

HURTAP SA

37

26

FAURECIA WAŁBRZYCH S.A.

36

26

GRUPA MLEKOVITA

36

26

PHUP GNIEZNO SP. Z O.O. HURTOWNIA SP.K.

36

27

GRUPA KAPITAŁOWA IMPEL

32

28

AGORA / GRUPA AGORA

29

29

ORANGE POLSKA SA

27

30

GRUPA STRABAG W POLSCE

26

31

ABB SP. Z O.O.

23

32

INNOGY

21

NO.

POLISH ECONOMY

NAME OF COMPANY

SCORE

1

ZARZĄD MORSKIEGO PORTU GDYNIA S.A.

145

2

PETRAX TRADE S.A.

136

3

AC S.A.

121

4

ASSECO POLAND S.A.

101

5

MURAPOL SA

96

6

WAWEL S.A.

87

7

DRUTEX S.A.

83

8

SBS SP. Z O.O.

82

9

DECORA S.A.

79

9

ATAL S.A.

79

10

AFORTI HOLDING (GRUPA)

77

11

GRUPA KAPITAŁOWA MENNICA POLSKA S.A.

73

12

ALUPROF SPÓŁKA AKCYJNA

71

13

HOCHTIEF POLSKA SA

69

14

PROMAG S.A.

67

15

AMS SA

66

16

GRUPA KAPITAŁOWA GDAŃSKIE PRZEDSIĘBIORSTWO ENERGETYKI CIEPLNEJ SP. Z O.O.

64

16

LEASINGTEAM GROUP

64 63

17

POLSKI HOLDING NIERUCHOMOŚCI S.A.

18

EKO-OKNA S.A.

62

19

HOCHLAND POLSKA SPÓŁKA Z O.O.

61

20

MERCUS LOGISTYKA SP. Z O.O.

59

20

ELEKTROBUDOWA SA

59

21

GRUPA KAPITAŁOWA BOWIM S.A.

58

22

MIEJSKIE PRZEDSIĘBIORSTWO WODOCIĄGÓW I KANALIZACJI S.A. W KRAKOWIE

57

22

POL OIL CORPORATION SP. Z O.O.

57

23

TRASKO INWEST SP ZO.O.

55

23

BUDMAT BOGDAN WIĘCEK

55

23

GRUPA PSB HANDEL S.A.

55

24

PRZEDSIĘBIORSTWO WIELOBRANŻOWE EBUD-PRZEMYSŁÓWKA SP. Z O.O.

54

24

KORPORACJA BUDOWLANA DORACO SP. Z O.O.

54

24

MIEJSKIE PRZEDSIĘBIORSTWO ENERGETYKI CIEPLNEJ S.A. W KRAKOWIE

54

25

GRUPA KAIPITAŁOWA ERGIS

51

25

GRUPA KAPITAŁOWA LERG SPÓŁKA AKCYJNA

51

26

GRUPA KAPITAŁOWA ZAKŁADY MAGNEZYTOWE ROPCZYCE S.A.

50 49

27

NEWAG S.A.

27

PCC EXOL S.A.

49

27

SPOŁEM POWSZECHNA SPÓŁDZIELNIA SPOŻYWCÓW W KIELCACH

49

27

AMPLUS SP. Z O.O.

49

27

FAURECIA LEGNICA SPÓŁKA AKCYJNA

49

28

PRZEDSIĘBIORSTWO BUDOWY KOPALŃ PEBEKA S.A.

48

29

PRONAR SP Z O.O.

46

29

PRZEDSIĘBIORSTWO HANDLOWE A-T S.A.

46

29

SPÓŁDZIELCZA MLECZARNIA SPOMLEK

46

30

ZUE S.A.

44

31

INTROL S.A.

43

31

KOLEJE MAZOWIECKIE - KM SP. Z O.O.

43

32

FAURECIA GORZÓW SPÓŁKA AKCYJNA

42

large peARLS

of the

Financial services NAME OF COMPANY

SCORE

AVIVA TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE SA

353

2

METLIFE TOWARZYSTWO UBEZPIECZEŃ NA ŻYCIE I REASEKURACJI S.A.

287

3

BANK GOSPODARSTWA KRAJOWEGO

286

4

SANTANDER CONSUMER BANK S.A.

271

5

COMPENSA TU S.A. VIENNA INSURANCE GROUP

251

6

BANK BGŻ BNP PARIBAS S.A.

245

7

POWSZECHNA KASA OSZCZĘDNOŚCI BANK POLSKI SA

233

8

INTERRISK TOWARZYSTWO UBEZPIECZEŃ SA VIENNA INSURANCE GROUP

229

9

ING BANK ŚLĄSKI S.A.

221

10

CREDIT AGRICOLE BANK POLSKA

169

11

BANK POCZTOWY SA

168

12

IDEA GETIN LEASING S.A.

153

NO. 1

The editors of “Polish Market” would like to thank all the Patrons and Media Partners for their help in organising the Gala of the Pearls of the Polish Economy.

PatronS:

Strategic PatronS:

PartnerS:

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tecHnicaL PartnerS:

Honorary PatronS:

LogiSticaL PartnerS:

media PartnerS:

POLSAT CMYK 33/18/13/40 0/45/100/0

organizer: Editorial Board of „Polish MarkEt” ranking comPiLed by: dEsicion suPPort and analysis unit, institutE of EconoMEtrics, WarsaW school of EconoMics

PEARLS OF THE POLISH ECONOMY

PEARLS ARE THE STRENGTH OF

THE POLISH ECONOMY

T

he Pearls of the Polish Economy ranking was conceived as different from all other rankings published in Polish newspapers and economic magazines.

There are two types of rankings. One, purely statistical, consists of arranging companies based on one criterion. So there are the listings of the largest companies in Poland, the top exporters, the fastest growing enterprises, etc.

But it is not always easy to compile a ranking like that because an additional definition of a simple category is needed. For example what "the biggest" or "developing" precisely means.

Another type of ranking, which is more qualitative, consists in arranging companies based on the assessment of one aspect of their activities, i.e. how innovative, customer-friendly, environment-friendly they are. To make the assessment, teams of experts are appointed, to which prominent scientists, inventors and businessmen are invited.

“Polish Market’s” Pearls of the Polish Economy ranking could not be more different from the above. It is an economic ranking, and for an economist, an enterprise which operates well means it operates effectively, which means it obtains the best results using the means at its disposal. For the objective and comprehensive evaluation of Pearls, we have decided to make use of a set of seven basic indicators applied by international auditing companies. The Department of Microeconomics of the Institute of Economics of the Polish Academy of Sciences

came up with an appropriate algorithm to process available data and to allow the computer to compile the ranking of the surveyed companies. You cannot get more objective than that, can you? Who knows better how to assess a given company than the auditors? This is not to say that “Polish Market” came up with a perfect ranking. Initially, basic information could still be obtained from the database of the Central Statistical Office (now Statistics Poland.) Then regulations changed and a labour-intensive and costly survey needed to be introduced instead. We were saved by scientists - as usual. This time they came from the Department of Decision Support and Analysis at the Institute of Econometrics, SGH Warsaw School of Economics. They brought in their experience and thanks to them we have been able to compare the effectiveness of Polish enterprises over the last four years in the “Polish Market” ranking.

Let's take a look at the latest Pearls of the Polish Economy, arranged in an order reflecting their balance sheets for 2017: - Port of Gdynia - currently one of the best general-purpose ports in the Baltic Sea. With a smaller surface area than the Port of Gdansk and the Szczecin-Świnoujście port complex, it generated the highest profits, cash flows and own capital reserves. This will allow it to invest over PLN 1 billion.

- Petrax Trade SA - a company trading on the European market in biofuels, diesel oil and LNG registered excellent economic results

- AC S.A. – the leading Polish manufacturer of modern LPG and CNG systems for Poland’s over 1 million mechanical vehicles. Its experience and constant development, as well as the fact that Poles have themselves equipped over 3.5 million cars with gas installations, beg the question about the possibility of a similar conversion to electromobility.

- Anwil SA – is among the largest and most modern chemical industry companies in Poland. It is a leading producer of nitrogen fertilizers in Europe and the leader of the PVC market. Its participation in the ORLEN Group will allow it to invest about PLN 1 billion in the development of production capacity.

- The Budimex Group - the largest construction company in Poland, takes advantage of the current boom in this market. This year alone it has increased its sales by 18%. It was able to draw conclusions from the failures of its competitors during previous downturns. It expanded its own performance capabilities and adopted a pragmatic approach to making bids for new contracts, - Jastrzębska Spółka Węglowa (JSW) is a major producer of coking coal. In fact, it owns the largest group of coking plants in the European Union. JSW is a global company, which uses methane gas to produce electricity, thus reducing the carbon footprint.

On the podium of this year's Pearls, there may be a lack of technology companies, but it is only a matter of time. We will certainly see them there next year.

• 12/2018 polish market

37

PEARLS OF THE POLISH ECONOMY

T

he deadline for submitting collaboration proposals under two very important European Union schemes - European Universities and Knowledge Alliances, financed from the Erasmus+ Programme – expires on February 28. The Erasmus+ Programme consists of three multidimensional directions of action. The first one is support for the mobility of persons: students and dormitories, and academic staff. The second one is the development of cooperation geared at innovation and good practices through support for strategic partnership among universities and associated organisations, including knowledge alliances designed to speed up the implementation of innovations. The third one is support for educational policy reforms.

Just a year ago, Emmanuel Macron said the following at the Sorbonne: “I believe we should create European Universities – a network of universities across Europe with programmes that have all their students study abroad and take classes in at least two languages. (…) We should set for ourselves the goal of creating at least 20 of them by 2024. However, we must begin setting up the first of these universities as early as the next academic year, with real European semesters and real European diplomas.”

Macron’s speech set off intensive work and consultations, including those with the participation of the heads of French, German and Polish universities. The result of the work are the documents which have laid foundations for decisions on pilot budgeting for the project of creating European universities – networks of several universities from different countries, competitive on a global scale. They

38 polish market

RANKINGS IN A NEW CONTEXT PROF. TOMASZ SZAPIRO, SGH Warsaw School of Economics will establish their position – advantage, one may say – thanks to strong links among education, research, knowledge transfer and innovation. Macron announced a strategy of fighting for a breakthrough - investment in 20 flagships, which will lead the fleets of the remaining more than 3,000 universities in Europe, playing the role of organisational models for the rest, and will jointly create the European Education Area. The networks called European Universities will not be chosen through rankings, they will come into being through the selection of bottom-up initiatives. In Poland there are several universities which are getting ready with their European academic allies to take part in the competition. Their preparations are at various stages.

The task of the European universities is to build standards for diverse student populations, including the third-age population: joint efficient programmes of interdisciplinary studies at all study levels, programmes combining education and research with socially-oriented innovations, offering a modern approach to teaching and including into the teaching process experienced economic and social practitioners at central and regional level.

Millions of euros will be provided to support the implementation of this task. The budget earmarked for the first pilot six is worth EUR30 million. A network of European universities is to be composed of a coordinating university, ordinary and associate partners, and affiliate entities. Apart from universities from member states, the project envisages a place for any private or public organisation which is involved in teaching and research, or may be a partner for the network. However,

for non-academic organisations there is the Knowledge Alliances programme.

Knowledge Alliances bring together up to six academic and economic partners to work on joint two- or three-year projects with budgets of up to EUR700,000 and EUR1 million respectively. These may be, for example, universities, small and medium businesses, large companies and institutes. Their task is to create innovative, multidimensional study programmes and stimulate enterprise in the academic and business community, and support the exchange, flow and joint development of knowledge. The goal of these activities is to build the innovation potential by, for example, reducing the mismatch between the supply of and demand for competencies, opening academic communities to the needs and potential of the environment, and making universities part of the process of developing and implementing innovations. The programme supports the joint development of programmes and teaching methods, establishing joint research groups and programmes dedicated to specific business organisations, introducing entrepreneurship into existing curricula, and supporting orientation towards building motivation and skills in this area.

Business rankings bring not only pride to the winners and a challenge to their market rivals. Open and generous EU projects are such a strong stimulus that it will result in a bigger interest than before in cooperation between universities and businesses. And rankings are becoming a pass to profitable and promising alliances. Rankings, especially those wellknown, with a transparent methodology and long tradition, make finding credible partners easier.

•

PEARLS OF THE POLISH ECONOMY

THE GROUPING OF ENTITIES IN THE “PEARLS OF THE POLISH ECONOMY” RANKING BEATA KOŃ, TOMASZ KUSZEWSKI, TOMASZ SZAPIRO, the Warsaw School of Economics, Institute of Econometrics, Department of Decision Analysis and Support

A

rating is a grouping of enterprises rated according to the quality of their performance. As a result, companies are assigned to one of the four rating levels: master, professional, standard, or promising. Assignment to a given level is based on the threshold values of certain indices describing various aspects of their business result.

Subsequently, these indices are used to develop company rankings within each level. For instance, if a company’s performance is assessed as being above the highest threshold for a specific aspect of its business management, then it will be assigned to the highest rating level - the Master. The rankings of companies within a given level are based on the final index values. As a result of this procedure, which is carried out for all sectors and all rating categories, the companies are assigned numbers on the ranking list. The following methodology is applied.

1. Any company based in Poland can be a candidate for the Pearls of the Polish Economy ranking, which concerns the business performance of a company in 2017, or the financial year ending 30 June 2017.

2. In the qualification procedure for the Grand Pearls category, the performances of companies with net sales in the financial year (prior to the ranking date) of at least PLN1,000,000,000.00 (one billion zlotys) are compared. In the Large Pearls category, the companies with net sales over PLN100,000,000.00 (one hundred million zlotys) are compared.

40 polish market

3. The companies which qualify to be included in the ranking are then divided into industry sectors pursuant to the Polish Classification of Activity. Companies are assigned to a given sector on the basis of their declared core business. The following sectors are : - food and agriculture, - raw materials and industry, - consumer goods and industry, - finance, - services.

4. The classification of companies is based on the analysis of performance indicators describing the financial condition of a company in terms of financial liquidity, business efficiency, profit margin and debt. This selection of indicators facilitates the appraisal of the current condition of the company (a statistical analysis), an analysis of its growth prospects in the near future (a dynamic analysis), and an assessment of its use of available resources. The analysis of each aspect of business performance is the result of the integration of many indicators. Consequently, the procedure initially results in integrated (partial) indicators which measure the aspects of business performance, and are later used to calculate the final indicator.

5. The ratings and rankings in each sector include companies whose performance (reporting categories) in the given financial year

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D I G I T A L

C I T Y L I G H T

PEARLS OF THE POLISH ECONOMY is assessed. On this basis indicators are elaborated which are used to calculate the integrated indicators, not lower than 10% of the average performance in a given rating category valuation for all companies admitted to the qualification procedure in a given sector.

6. The rating of companies in a given sector is given when the threshold, i.e. the minimum number of companies in all sectors is achieved. The ranking of companies of a given sector and rating level is given when a threshold, i.e. the minimum number of companies in all rating levels is established.

In 2014, the Pearls of the Polish Economy ranking was carried out for the first time according to the method developed by researchers of the Warsaw School of Economics, Institute of Econometrics, Department of Decision Analysis and Support. The following rankings were prepared in the years 2015-2017. According to the rules adopted by the “Polish Market” monthly, companies apply to be considered in the ranking voluntarily by completing a dedicated questionnaire.

For this reason, the pool of participating companies was different during each edition held between the years 2014-2018.

Moreover, the Grand Pearls and Large Pearls ranking does not make any distinction between the companies in terms of their sector of activity. The third ranking concerns the sector of financial services companies but includes both banks and insurance companies. Hence, the results of the ranking cannot be applied for standard analyses of business growth rates or management efficiency of the companies included in the rankings, as the results in consecutive years are not uniform and the score of a given company depends on the performance of other companies.

However, it is possible to interpret this year’s results and compare them to previous years’ results. The results are as follows:

I. LARGE PEARLS CATEGORY In 2018, the 1st place goes to Port of Gdynia Authority S.A. which was also the winner of the same category in 2015. In other editions, it was ranked between the fourth and seventh place.

The 2nd place (for the third time - previously in 2014 and 2016) goes to Petrax Trade S.A. The company was founded as a result of the dynamic growth of the Petrax brand. In the previous editions it was ranked as Petrax Sp. z o.o. In 2015, it came 11th, which could be attributed to the falling oil prices at the time. In the following years, the company’s condition greatly improved and since then it has gone back to the top part of the ranking table.

The 3rd place was awarded to the biggest Polish company in the gas installation sector – AC S.A., a company which ranks high every year. In 2016, it reached the top position.

It is also worth noting that the leading companies in this year’s edition of the Large Pearls category have usually been ranked in the top five since 2014, so it can be safely said that over that period they have enjoyed a certain level of stability and maintained their strong position.

II. GRAND PEARLS CATEGORY The chemical industry company ANWIL S.A. is the winner in this category. Previously it was included only in the 2015 and 2016 editions, in which it was ranked 20th and 9th respectively.

42 polish market

The 2nd place goes to the construction company Budimex, which was not among the leaders of the ranking in the past few years. In 2014, it was in the 6th position out of 38 companies. In the following year, it dropped to No. 15. And the year after that, it climbed to No. 5. In 2017, it slipped 2 places again and ended up in 7th place despite the fact that it obtained a higher score than in the year before, when it occupied 5th place.

The coal company Jastrzębska Spółka Węglowa takes the 3rd place. It was only included in one previous edition of the ranking, in 2017, when it came 33rd.

In the Grand Pearls category, we can see a considerable discrepancy in terms of companies’ results in previous editions of the ranking between 2014-2018.

III. FINANCIAL SERVICES SECTOR CATEGORY The 1st place goes to the insurance company AVIVA Towarzystwo Ubezpieczeń na Życie S.A. In 2017, AVIVA was 3rd, and in the years 2014-2016 it was not included in the ranking.

The 2nd place is occupied by another insurance company, MetLife Towarzystwo Ubezpieczeń na Życie i Reasekuracji S.A. Looking back, MetLife was also first in 2014 and 2015 and both times it obtained higher scores (the best in 2014). In 2016, it dropped to No. 3, and in 2017 it plummeted to No. 14, which was its worst result to date. In 2018, it has managed to climb back into the top three.

The 3rd place goes to the Bank Gospodarstwa Krajowego. It is the highest position in the ranking by this bank to date. It is hard to pinpoint any trends here, as its position in consecutive rankings keeps fluctuating. In 2014, it was 6th, but in 2015 it dropped to the 9th place. In 2016, there was a significant improvement, as it was ranked in 4th place in 2017 only to drop to the lowest position it has been ever ranked, namely to No. 8.

In 2018, the 4th place goes to another bank - Santander Consumer Bank S.A. It has been ranked near the top every year, but this year’s No. 4 is its worst position to date. In 2014, it was ranked in 3rd place; next, in 2015, it climbed one step higher and took 2nd place; and, in 2016, it climbed to the top and won. In 2017, it maintained its position as the leader. However, the same score was obtained by Bank Zachodni WBK which also placed high in all other rankings.

In 2018, the Bank Zachodni WBK Group changed its name to Santander Bank Polska S.A. In reality, the Santander Group had acquired Bank Zachodni in 2010, but due to the brand recognition it did not change its name at the time. It is also worth noting that the rankings cover the 2014-2018 period, i.e. the period following the acquisition of Bank Zachodni by Santander. However, Santander Consumer Bank S.A. and Santander Bank Polska S.A. are two separate banks. In this year’s edition, we will not find Santander Bank Polska S.A., even though it ranked high last year.

Looking at companies from the financial sector, it is difficult to immediately see consistency in terms of ranking positions. It is possible to determine, however, which of them have the strongest position and are the most stable. If the results of the 2017 edition were not taken into account, it would be possible to determine the correlations more precisely, as the most fluctuations were found in the ranking • last year.

Events

THIS IS THE TIME The academic year 2018/2019 is the first year when the new law on higher education and academic research is in force. It is a thorough reform of this sector in Poland and its implementation is planned for several years. What are the objectives of this radical change to the system of academic research and education? PROF. JAN SZMIDT, Rector of the Warsaw University of Technology and head of the Conference of Rectors of Academic Schools in Poland (KRASP), answers this question for “Polish Market.”

T

his indeed is to be a thorough, but also fundamental, change. The very fact that it replaces four laws - the law on higher education, on rules of financing academic research, on academic degrees and the academic title, and on student loans – shows how deeply regulated the academic research sector was at the level of parliamentary legislation. If you add to that the powers that the executive authorities had – the government, ministries and various central bodies – it shows that the attributes generally ascribed to our community, such as the freedom of research, freedom to teach and the autonomy of the academic community, were just slogans.

Now, it is to be different. What does that mean? Firstly, more freedom to act, much greater autonomy. We have to decide by ourselves what we want to do and how. The law does not state how we should be organised, what units the university should be composed of – whether it should have any faculties, institutes, departments, teams and so on. What is more, we may become federated, which means conducting research and educating academic staff in conjunction with another university or research unit, even a foreign one. Therefore, the way in which universities are managed also has to change. Under the law, the rector, senate and council are the bodies responsible for managing a public higher education institution.

Generally speaking, the rector (elected) has the

44 polish market

executive power, the senate (representation of academic staff) legislative power while the council (composed of several members, with 50% of them from outside the university) has opinion-making and to some extent controlling powers. It is in fact like “govern yourself.”

Of course, the “govern yourself” does not remove the constraint “if you have money.”

And this is the second pillar of the reform: the financing model has changed. Funding for maintaining a university’s teaching and research potential and its basic development will be granted as a single subvention, without assigning money to particular activities and university units, and with no deadline by which it should be spent. Under the law, the funding earmarked by the state for academic research and higher education, is subject to annual indexation – growing 1.25 times in 2019 and then 0.1 annually until 2028. Money will also be acquired, and accounted for in a different way, from other sources, like for example from the National Centre for Research and Development (NCBR) for specific projects in the area of applied research and from the National Science Centre (NCN) for basic research. The question is: Are we ready, as communities, to meet such challenges and distribute this public money? Today, we will have much freedom.

And responsibility.

This responsibility means that there is not any idealised egalitarianism – and the law does not envisage it - among the over 100 higher

education institutions in Poland. Just the contrary, the law makes many opportunities and powers enjoyed by universities dependent on the findings of research appraisals conducted every four years, dividing them into five quality categories. League tables appraise research results. Few take into account the teaching aspect and look at the graduates’ careers. It is assumed that a university which conducts high-class research and has a large number of publications and patents to its credit, and of course money acquired from sponsors and business partners is also a good teaching institution. Therefore, let’s appraise universities just as it is done elsewhere in the world – taking into consideration the quality of their academic disciplines.

To sum up, the new law means general autonomy, financial autonomy, evaluation based on research quality and treating the whole higher education institution as a single unit.

It is a revolutionary change in Poland, bringing us closer to the world. Few people know at what faculty Maria Skłodowska-Curie studied, but almost everyone knows that she studied at the Sorbonne. The university is the brand.

The above are the basic elements of our reform. At the start, they disturb the functioning of existing structures of academic communities, but one should be aware of their necessity, on the one hand, and that we have become mature enough to introduce them, on the other.

•

PEARLS OF THE POLISH ECONOMY

PEARLS FOR INNOVATION PROF. LESZEK RAFALSKI, President of the Main Council of Research Institutes, member of the PROGRESS Award Jury

I

t has become a tradition to grant Pearls of Innovation Awards as part of the Pearls of the Polish Economy ranking of Polish businesses. These awards have been handed out for eight years now to give research centres and inventors the recognition they deserve for their research results, which contribute not only to the development of the Polish economy, but also provide value for society as a whole. In addition to applications in industry, IT, construction, and transport, there are also non-technical fields of innovation, such as treatment methods, plant cultivation, and administration systems. Pearls of Innovation are awarded to leading representatives of the worlds of science and implementation whose talent, creativity, and commitment to their jobs, are awe-inspiring, and without whom there would be no new technologies or innovative solutions.

Previous editions of the Competition show that there are many shades of Pearls of Innovation. For instance, one such Pearl turned black to represent coal technology when it was presented to Professor Marek Ściążko, long-time Director of the Institute for the Chemical Processing of Coal (IChPW) who works on clean-coal technologies, and has many patents and implementations in the industry sectors of energy, municipal heating, and coke. The Competition Jury took note of the Institute’s solutions which significantly reduce harmful emissions, lower fuel consumption, and help manage heat sources by remote online access.

Several Pearls were white, as they were awarded to representatives of the medical community for such impressive accomplishments as successful liver transplants in children.

Two such Pearls of Innovation were received by Professor Małgorzata Syczewska, MD, Ph.D, Head of the Children’s Memorial Health Centre, and Professor Grzegorz Gielerak, MD, Ph.D, Head of the Military Institute of Medicine. An

achievement that this Institute can be particularly proud of is its innovative surgical technique for treating atrial fibrillation using thoracoscopic ablation, the cutting-edge in today’s cardiac surgery.

One of the Pearls was radioactive. It was received by Professor Grzegorz Wrochna, a representative of the National Centre for Nuclear Research, an institution which develops and successfully markets innovative technologies. One example of its projects was the use of reactor Maria to produce isotopes required in many medical procedures.

Yet another Pearl of Innovation was a perfect fit for casts, as produced by the Foundry Research Institute. Awarded for the development of an innovative technology for forced cast hardening, which facilitates the creation of superior quality cast machine parts, that Pearl was received by Professor Jerzy Sobczak, long-time Director of the Institute.

These are just a few examples of the Pearls awarded so far, described to illustrate the diverse fields of science which the laureates have come from. But there is something all such professionals have in common - the applicability of their solutions. Science should be useful. Scientists and researchers from 110 research institutes who I have the pleasure and honour to represent respond to the needs of the economy and society, and play leading roles in many business partnerships.

Research institutes cooperate with businesses on an everyday basis to implement projects and apply research findings. This is why Pearls of Innovation are the perfect complement to the Pearls of the Polish Economy ranking, as they emphasise the inseparable link, and the need for collaboration, between science and business.

This Award contributes to the promotion and recognition of innovators and their achievements, and publicises innovative projects, for which there is a huge demand in • Poland.

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PEARLS OF THE POLISH ECONOMY

SCIENCE AND ITS PROMOTION IN THE AGE OF DIGITAL REVOLUTION A distinctive feature of today’s global economy is its growing dynamism and the groundbreaking nature of changes, most of which are being driven by the digital revolution. This is because the world is undergoing the “fourth industrial revolution” (Industry 4.0) by switching from models typical of industrial civilisation to a new, though still not fully defined, post-industrial paradigm usually referred to as “knowledgebased economy.” ELŻBIETA MĄCZYŃSKA, President of the Polish Economic Society, has shared some of her thoughts on this topic for “Polish Market.”

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he term knowledge-based economy - while not truly accurate as civilised man has always relied on some knowledge resources in all, not only economic, activities - has attained a position among the predominant features of the modern world. A knowledge-based economy is one in which

PEARLS OF THE POLISH ECONOMY

knowledge becomes a “universal substitute,” pushing other elements of creative potential into the background. At present, knowledge is turning into a sort of universal “processor”, the enormous potential of which has spectacularly revealed itself in the origins and history of such forms of activity and enterprise as the Google search engine and the Facebook social network. At the same time, in this age of knowledge and civilisation, the modern world is paradoxically being plagued by one of its most embarrassing features, namely a growing dichotomy between knowledge and wisdom. This was rather bluntly articulated, as early as in 1929, by José Ortega y Gasset, in his timeless work “La Rebelión de las Masas” (The Revolt of the Masses). “It is a characteristic of the present times to see mediocre and banal minds, aware of their mediocrity and banality, having the audacity to claim the right to be mediocre and banal and to impose these traits on everyone else.” Much seems to suggest that these “present times” continue to this day. The unprecedented, undisputable progress in science and technology, as well as the steadily increasing knowledge resources, have fallen short of making an actual contribution to societies’ wellbeing. In this situation, the consequences of the lack of wisdom in the use of knowledge can prove catastrophic.

This is manifesting itself in many processes and actions, highly undesirable, yet disseminating at an amazingly fast rate. They are proof of insufficient reflection, wisdom, responsibility, and long-term consideration on the part of decision-makers at various levels, starting from those at the top. These deficits in wisdom are bringing about a deep, global breach of the ecological, economic, demographic and political balance.

The digital revolution, happening right before our eyes, has been increasingly making the institutional solutions used so far in socio-economic policy fall short of the requirements imposed by this new economic model. This ultimately leads to what has been referred to as the “lock-in effect,” meaning a sort of confinement within the previous systemic framework, creating a barrier to socio-economic development. This suggests the need to search for new solutions and concepts – their source is and can be primarily science. This shows how important it is to promote scientific achievements. Putting them into practical use forms a necessary condition for optimising the utilisation of the digital revolution’s potential and the related changes, as well as for counteracting the symptoms of the lock-in effect and other irregularities, such as various breaches of digital security, including cybercrimes.

The promotion and practical use of what science has achieved is important, even more so because - as argued by Kevin Kelly, a renowned futurist famous for his accurate predictions - “In this era of 'becoming,' everyone becomes a perpetual newbie.” In his book “The Inevitable: Understanding the 12 Technological Forces That Will Shape Our Future,” published just under two years ago, Kelly stresses the inevitability of this “newbieness”, as it results from the pace and nature of technological advancements. According to Kelly, the majority of technologies to come onto the socio-economic scene 30 years from now have not been invented yet. Consequently, he predicts that by the end of this century, 70% of today’s professions will have been replaced due to automation/robotisation. The rate at which technologies and products turn obsolete and useless is growing. This will ultimately lead us to a model of the world in which “what’s inconceivable, becomes the new normality.” The digital revolution keeps on creating

THE DIGITAL REVOLUTION, HAPPENING RIGHT BEFORE OUR EYES, HAS BEEN INCREASINGLY MAKING THE INSTITUTIONAL SOLUTIONS USED SO FAR IN SOCIOECONOMIC POLICY FALL SHORT OF THE REQUIREMENTS IMPOSED BY THIS NEW ECONOMIC MODEL.

new, unknown phenomena, and is thus shaping a new economy and creating new economic actors. This has been illustrated by T. Goodwin, an expert in the field of modern media, who notes that Uber, the world’s largest taxi-cab company, does not actually own any taxis, Facebook, the most popular media outlet, does not create any content, Alibaba, the global retail powerbroker, does not possess any goods or warehouses, and Airbnb, the world’s top hospitality service, does not own any hotels. These are the best proofs that something big is happening in the world. “The new” is pushing ahead at a rate we have never seen before. With new technologies cropping up at such a rapid pace, however, we are unable to prepare for the changes. For this reason Kelly believes that “perpetual newbiness” is becoming an inherent feature of our times. In such conditions, asking questions is no less powerful than searching for answers, and the role of the “futurological store of thoughts,” a myriad of visions and dreams, is growing in importance. The world of science has a fundamental part to play in this regard.

At the same time, the development of digital communication technologies stimulates research potential, with crowdsourcing becoming more and more important as regards the creation and promotion of new ideas.

Despite very meagre funding for science, researchers in Poland can boast some impressive results in many disciplines.

Regrettably, there are still too few initiatives designed to promote, both domestically and internationally, these achievements and their practical applications. Polish diplomatic missions should certainly show more activity in this respect, also to foster science and research cooperation between Polish scientists and their colleagues abroad.

In this context, it makes sense even more to pursue the planned projects aimed at the greater internationalisation and promotion of Polish science. These include, for example, cooperation between the National Science Centre, which is an agency of the Ministry of Science and Higher Education, and the Max Planck Society, a prestigious scientific institution, the best in Europe. The development of scientific cooperation advocated by the Society and the global promotion of Polish science is to be further facilitated by 10 centres for scientific excellence to be set up at Polish universities, and employing top scientists from the whole European region. A fundamental role is also to be played by the National Agency for Academic Exchange (NAWA) established in Poland in 2017 to promote Polish science abroad. It can be assumed that such undertakings will positively impact on the growth of Polish science and its position in the world.

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Economy

A NEW DIMENSION OF MULTIMEDIA G roup AV Sp. z o.o is a modern company with a team whose invaluable experience allows it to provide comprehensive services to customers, including the design, installation, and deployment of professional audio-visual systems.

The constant search for innovative solutions which reflect the latest market trends is our goal. We aspire to develop unique projects tailored to the needs of our customers.

Multimedia communication is a tool which we often use to skilfully share important information with our customers. Messages reinforced with images stay longer in our memory.

Conference rooms, museums, shopping centres, hotels, sports venues, universities – we have done work in them all, providing systems which enable the functioning of any facility, serve as working tools, or highlight the architectural features.

Our company has implemented numerous projects in both the private and public sectors. Every project motivates us to work even harder and continue the search for new inspirations. Challenges create challenges, and in this modern world dominated by technology our only limitation is our imagination. In search of new inspirations, we cooperate with leading experts from various fields of science and culture.

Our portfolio includes projects carried out for ABB Sp. z o.o., the National Library of Poland in Warsaw, the Polish Army Museum in Warsaw, the Polish Air Navigation Services Agency, EC1 Łódź – City of Culture, the office of the lower chamber of parliament, and many others.

Our newest VR-based project warrants particular attention. The technologies used in conjunction with multimedia apps developed for this purpose make this project innovative in both Poland and Europe.

The project is developed for, and in partnership with, the Museum of Archaeology and History in Elbląg, northern Poland.

Visitors to the museum are provided with an opportunity to travel back in time, touch history, and visit the virtual gallery. This amazing

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adventure includes solutions called “The past just around the corner” and “History here and now”.

We travel back in time using our senses enhanced by VR. We learn about the early 20th-century history of Elbląg. We take a ride in a VR Komnick car along the wharf and the old-town streets. The surrounding architecture has been carefully recreated on the basis of pictures of Elbląg taken before World War II, and it includes all architectural and historical details. The project also includes an app which enables giving interactive history lessons during which the instructor can show archaeological sites using the available 3D format. The app can be further expanded by introducing historical figures to the already generated virtual reality castle.

The virtual gallery is another attraction included in the project.

Visitors can see numerous paintings and high resolution 3D scans of objects. A walk through the gallery is especially exciting, because each visitor can choose the artefacts to be exhibited. The last app that was deployed enables the visitors to “take a walk” in the Castle of the Teutonic Order in Elbląg – it was demolished in 1454 by the burghers of Elbląg. Interestingly, the castle in Malbork was based on it. Thanks to this app, we can learn about the distant past, and the architecture of the castle which ceased to exist many centuries ago.

Virtual reality has acquired a new dimension, and this dimension is history education.

It appears that the coming year will be a very interesting one for our company. The prospect of many investments offers our company further opportunities for development as we will be carrying out new projects. And we see great potential in the development of technology in the area of diode products, and virtual reality or IT systems, which form the basis of complex multimedia systems. We never stop looking for new solutions and suppliers, so that our deals are interesting and competitive.

•

Robert Wolter +48 604 690 009

Chemical Industry

590

CONGRE SS – M ADE IN POL AND On 15-16 November, the village of Jasionka near Rzeszów, south-eastern Poland, hosted the 590 Congress for the third time. The event was attended by numerous representatives of the worlds of politics, business, culture, arts, science and NGOs. The 590 Congress featured discussions on unlocking the potential of the Polish economy.

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n his speech, Polish President Andrzej Duda emphasised the special role of the Congress held on the 100th anniversary of Poland's independence, expressing his delight at the number of government officials and business people who had come to the congress. A large part of his speech was about the current attitudes expressed by businesses. “We have our Strategy for Responsible Development. There are a number of programmes being implemented in connection with it. What is our assessment of the progress so far? I think it has been going well. Actually, today I was told that it had been very good. I’ve just talked to representatives of Polish entrepreneurs known as business angels.

And I asked about this in a small circle so that everyone could express their opinion on the current situation,” the President said.

Prime Minister Mateusz Morawiecki stressed that“the potential of the Polish economy has been unlocked. Poland has the fastest economic growth in the European Union in this quarter again, as reported by Eurostat”. The Prime Minister said that the economic development model implemented by the government lead to sustainable development. “After all, this was our main goal - for the economy and society to develop in parallel with each other,” he added. The Prime Minister emphasised that the economy was on the right path. “We want our employees’ salaries to grow fast. We believe that this would make employers, entrepreneurs, and the state, value them even more,” he said.

President of the National Bank of Poland Adam Glapiński stated that for some time now

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Poland had been “running like a train,” to the astonishment of the world and analysts. He referred to data from Statistics Poland for the third quarter of this year, which demonstrate that this country’s economic growth is higher than 5%.

In his opinion, the Polish economy is the most stable, the fastest-growing and the most dynamic economy in Europe. "We are one of the countries with the most inclusive growth. Our growth is distributed across the whole of society like nowhere else,” the central bank president stressed.

The Congress included the presentation of the Presidential Economic Awards to the best businesses which are contributing to the development of the Polish economy, promoting Poland internationally, and constituting a paragon.

In the Leader of Small and Medium-Sized Enterprises category, the Polish President granted the award to Ultratech, a company proposed for the distinction by the Marshal’s Office of the Podkarpackie Province. The business was launched in 2000 in Rzeszów, and operates in the production of parts and components for global aviation and energy companies. The National Success award went to Ceramika Paradyż, which was proposed by the Marshal's Office of the Łódzkie Province. The International Success title was granted to Vigo System, put forward by the Industrial Development Agency and the Marshal’s Office of the Mazowieckie Province, while PKO Bank Polski won the Responsible Business award. MB - Pneumatyka, proposed by the Union of Entrepreneurs and Employers, won the Family Business category.

The Startup_pl award went to Photon Entertainment, proposed by the Technotalents Foundation. This startup has developed and produced the world’s first interactive educational robot for children, which develops with the child.

The winner in the special Research & Development category was Astronika, recommended by the Polish Investment & Trade Agency. The Polish President’s Individual Economic Award was presented to Zbigniew Grycan. Grycan ice cream is available in 11 countries across Europe and Asia. In addition, the 100th Anniversary of Independence Award was given to Warszawska Fabryka Platerów Hefra. This special prize is granted to Polish companies which have operated on the Polish market for at least 100 years.

The congress also featured a presentation of an innovative city vehicle called Triggo, with an electric engine which provides a 100-km range and a maximum speed of 90 km/h. It was designed by Polish engineers from Warsaw, and it is in this city that the new car will first appear on the road. The tests are planned for next year.

The design and implementation of the Triggo project is being financed by the National Centre for Research and Development, operating under the Ministry of Science and Higher Education, and through private investors. “We are only a step away from introducing non-emission cars in our streets. We hope that they will appear in places where they are most needed, for example in the streets of Kraków,” Jarosław Gowin, Deputy Prime Minister and Minister of Science and Higher Education, said during the car’s unveiling event.

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Economy

WINNERS REFLECT POLAND’S ECONOMIC LANDSCAPE

“The Economic Award of the President of Poland is special because it shows that business can be focused not only on money, but can also serve society,” PROF. KRZYSZTOF OPOLSKI, head of the Banking, Finance and Accounting Department of the Faculty of Economic Sciences Warsaw University, tells Jerzy Bojanowicz.

You are head of the Award Committee of the Economic Award of the President of Poland, which is granted for the 16th time to the country’s best businesses, those which contribute to the development of our economy, promote Poland in the international arena and are an example for other firms, which means… ?

The award, established in 1998, was granted until 2005 and then reactivated in 2011. It should be stressed that it is an award for firms which are the most efficient economically and in terms of progress and development, firms which at the same time practice corporate social responsibility. Thanks to these three elements, the award-winning businesses have a competitive advantage, which gives them a high position on the domestic and international market. This is why businesses value the Economic Award of the President of Poland very highly as it shows that the award-winning firm is well managed, well-positioned on the market and has prospects for further development – none of the laureates has ever gone bankrupt.

PM

Can one say that it is a “soft” award?

Well, no. This award does takes into consideration “soft” aspects as well - social dimensions of business – because it is hard to imagine the president not being aware of the essence and importance of the social role of the nominated firms. However, the starting point is their financial standing. We look at whether they make a profit, repay their debts, how much they pay their employees, how they invest in development and how much they spend on innovation.

The starting point is the economic dimension, but we are aware that today a business does not operate fully comprehensively, just as it should, without a social dimension.

PM

And how is Poland’s promotion in the international arena assessed?

The criterion may be both innovation performance and the firm’s current functioning.

PM

This is why distribution, manufacturing and innovative businesses, that is ones which base their success on research and development, may compete for the award. There is a special category, Startup_PL, where competition for the award is open to businesses which have operated on the market not longer than five years and have created a product or technology innovation.

The Economic Award is to show a cross-section of our economy: from businesses which have existed on the international market for a long time and are recognisable in the world and strongly positioned in Poland, meaning they have a leading position on our market, to innovative firms which spend much on R&D to startups and family businesses, which we regard as an important part of Poland’s economic landscape. The landscape is reflected in the seven categories in which awards were granted to the winners of the 16th edition of the Economic Award this year.

Are members of the Award Committee appointed every year?

Yes, but these are the same persons. They are just reappointed. I am head of the Committee for the third time now.

We pick businesses which have achieved success at home and abroad, improved their financial results, increased employment and, which is very important, pay their employees well, with the remuneration being in proportion to the financial results. Paying taxes in Poland regularly and health insurance contributions for all employees is an equally important criterion.

The Economic Award has earned a reputation as a very important award because it is granted by the president. What sets it apart from other prizes is that it puts emphasis on corporate social responsibility. In many similar competitions no attention is paid to what you have called soft issues, such as business reliability and meeting basic payment obligations. The submitted candidates are evaluated very carefully and diligently. Much credit for this goes to members of the Award Committee, which is composed of persons educated in different fields and with different careers – mainly economists, but also business people and even a titled specialist in corporate social responsibility.

PM

And who submits candidates for the award?

This year, more than 110 institutions , including agencies, organisations, foundations, editorial boards, including “Polish Market,” higher education institutions and all province marshal’s offices were asked to submit candidates. The Award Committee selects crème de la crème - the best of the best - from among the candidates.

PM

This year, the Committee made the selection from among 21 nominated businesses.

Is the number big or small?

Sufficient. We only select leading firms. We do not want to undermine the importance of the competition.

PM

You are also a member of the Award Committee of the Teraz Polska Competition. What are the basic differences between the two competitions?

The Economic Award of the President is the “jewel in the crown” and its name enables the award-winning firm to give up on aggressive marketing.

The Teraz Polska competition has a longer tradition and has been organised since 1992.

It picks the best products and services, which stand out on the market with their quality, technological and usable values and can be an example for others. The winners receive a special Polish promotional emblem, which draws the attention of prospective buyers to the awardwinning product displayed on a shop shelve.

I do not see the two as rival competitions, the more so as the Teraz Polska Foundation submits candidates for the Economic Award.

• PM

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PRESIDENTAL ECONOMIC AWARD

SPACE SOLUTIONS

HERE AND NOW POLISH MOLE ON BOARD OF NASA MISSION TO MARS Astronika is a Polish spin-out company founded by a group of engineers with vast experience in the development of specialized space mechanisms. It is one of the winners of this year’s Polish President’s Economic Award. One of its products, a mole meant to penetrate the surface of Mars, safely made it to the planet on board a NASA mission which landed on November 26. Astronika’s board member ŁUKASZ WIŚNIEWSKI talks to “Polish Market’s” Rafał Kiepuszewski.

You describe yourselves as a Polish spare research company which operates in Europe. What exactly does it mean?

Well, we’re a Polish (and thus European) company and our primary contractor is the European Space Agency (ESA), at the same time most shareholders in Astronika are former workers of the Space Research Centre of the Polish Academy of Sciences. Our chief mechanical engineer and mentor is Jerzy Grygorczuk, D.Sc. who has been involved in many projects, including ESA’s Rosetta mission to a comet. When Poland joined ESA, new opportunities for the industry emerged and we took advantage of these opportunities. Now we're focusing on the development of very specific and sophisticated products like hold-down mechanisms or tubular boom antennas that we could supply to the European and worldwide space market.

PM

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PRESIDENTAL ECONOMIC AWARD One of your mechanisms is on board a current mission to Mars. The landing is expected on November 26 as we go to print.

What’s your contribution to the mission?

Among other instruments, there’s a German thermal probe on board the NASA mission. Engineers working at Astronika have already world-recognised expertise in development therefore DLR (German Space Agency) decided to turn to us in order to develop this Hammering Mechanism. We have designed the drive mechanism which is inside the mole penetrator that digs into the ground. Contrary to previous missions to Mars, the aim of this mission is not to look for life on Mars but to explore the planet’s geology and geothermal conditions - to investigate Mars quakes. The idea behind the HP3 experiment we are involved in is to compile a thermal profile of the planet to the depth of 5 metres. Scientists want to find out how much heat comes from the core of the planet and if there is any hidden tectonic activity. The model which is to be built later will help us to foresee how rocky planets (including Earth) evolve..

PM

What are some of the other products you offer?

Even tiny components are extremely expensive to produce. They need to be screened very accurately so that they do not fail in space. Some of our designs are one-off products, due to the nature of space missions. On the other hand, some other designs, like our hold-down release mechanism, can be implemented in multiple orbital applications for satellites. Hundreds of different components need to be delivered to the main contractors like Airbus by companies like ours.

For example, solar panels on board spacecraft need to be folded during launch because they are too fragile, so they are controlled by our hold-down release mechanism. Another thing we are good at are deployable antennas that need to be as lightweight as possible yet very sturdy. Our antennas are very competitive on the market. We also have patents for various technologies.

PM

It seems that even the sky is no limit for you. What’s your strategy for the future?

We think in the long term. The development of one product takes 1-10 years. There is a scale known as the Technology Readiness Level scale from 1 to 9. Something which is just an idea is TRL 1 and something that works in space is TRL 9. We design products that aspire to reach TRL 9. We also make products for European missions which are at TRL 4-5.

We are now trying to increase their TRL level.

It’s a very dynamic time in the Polish space sector. Just as an example, we're working on

WE WANT TO BECOME INDEPENDENT, TO PROVIDE SOLUTIONS FROM A TO Z, ALSO TO GET STRONGER TO FACE COMPETITION FROM FOREIGN PLAYERS WHO ARE VENTURING INTO POLAND.

PM

the technology of a very innovative planetary jumping robot and we know that it won’t be operating before the mid-20s. Of course, we are also developing new technologies which form the basis for serial products (as the above-mentioned HDRM or tubular booms). We want our mechanisms to be found on every European satellite and on every mission for the exploration of celestial bodies. I believe it’s possible. Astronika started

out just five years ago with a small team and now the headcount in our company is 44 people, up from twenty-something last year. We reinvest all our profits into development. We have developed our clean room, soft facilities and machine shop. We want to become independent, to provide solutions from A to Z, also to get stronger to face competition from foreign players who are venturing into Poland.

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PRESIDENTAL ECONOMIC AWARD

CENTRE OF HEARING AND SPEECH MEDINCUS “Patients visiting our clinic have access to comprehensive care from diagnosis through treatment to rehabilitation” says Assistant Professor Piotr H. Skarżyński, MD, PhD, MSc, Member of the Board Directors of the Centre of Hearing and Speech MEDINCUS.

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he Centre of Hearing and Speech MEDINCUS is one of the finalists in the 16th edition of the Economic Award of the President of Poland.

The clinic is one of three companies that were among the nominees in the Research& Development category. The Economic Award of the President of Poland, also known as the “Polish Nobel Prize in Economy” is one of the most prestigious awards in Polish business. It is considered the most valuable award for companies, scientific and research institutes as well as inventors in Poland who make a significant contribution to the modernisation and development of the Polish economy, build its positive image in Poland and abroad, and provide an example to others. “We are honoured that we became a member of such a distinguished group.

In our challenging health care sector, this is crucial because patients always play the primary role” commented Assistant Professor Piotr H. Skarżyński. “We are very proud of this distinction, especially that the Polish Promotional Emblem Foundation "Teraz

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Polska" recomended our company for The Economic Award.”

The International Centre of Hearing and Speech MEDINCUS is not only a hospital in Kajetany near Warsaw, but also several clinics in Poland and abroad. Its facilities offer comprehensive and highly specialised services, provide access to all procedures in one place in otorhinolaryngology (i nclud i ng coch lear i mplantation), audiology, phoniatry, tinnitus, logopaedics, psychology, physiotherapy, balance disorders, rehabilitation of hearing and speech, and hearing aids fitting and sales.

Medincus clinics identify the needs of patients both from Poland and around the world to facilitate the start and continuation of treatment by eliminating the need to travel to a faraway facility. On a long list of medical services, patients can find a number of telemedicine procedures such as telediagnostics, teleconsultations, telefitting, telerehabilitation etc. Each patient has guaranteed access to the most innovate medical and technological solutions. This Polish model is successfully implemented in many countries, including Ukraine, Belarus, Kyrgyzstan, Kazakhstan and Senegal.

The Centre of Hearing and Speech MEDINCUS performs over 2,000 surgeries and 13,000 medical procedures annually.

For the past 15 years, the medical team performs several dozen surgeries to treat hearing loss on a daily basis. The Centre provides employment to over 400 employees.

Comprehensive care for patients with hearing and speech problems is available in 12 facilities across Poland and 5 facilities abroad.

POLAND CAN BE PROUD OF THIS SUCCESS Ass. Prof. Piotr H. Skarżyński MD PhD MSc is the first Pole elected to become a Board Member of the International Society for Telemedicine and e-Health (ISTeH). As the Nomination & Governance Committee of the ISfTeH has announced, he will be the vice-chairman and representative of ISfTeH institutional members for the next three years 2019-2021. The official inauguration will take place during the first meeting of the newly elected board which will be held in Warsaw in February 2019.

Ass. Prof. Piotr H. Skarżyński executes numerous national and international projects connected with telemedicine, e-health, including teleconsultations, telerehabilitation and telefitting in numerous European, Asian and African countries. It is noteworthy that hearing screening and teleconsultations, performed in Bishkek and Dushanbe, were the first telemedical objective measurements of hearing in Kyrgyzstan and Tajikistan. Prof. Skarżyński has made every effort to organise and perform teleconsultations in African countries.

Therefore, hearing screening and numerous teleconsultations have been performed in Senegal, Ivory Coast, Rwanda and Tanzania.

The Professor has entered into negotiations with African research units regarding international collaboration, including the implementation and development of teleconsultations, telerehabilitation and the first telefitting session between Africa and Europe which took place in Dakar, Senegal • in August 2018.

synthosgroup.com

Events

“THE LAUREL OF INNOVATION 2018” Jerzy Bojanowicz

An official gala held on 7 November 2018 in Dom Technika, the headquarters of the NOT Engineering Federation in Warsaw, wrapped up the 8th edition of the Stanisław Staszic Competition for the best innovative products “The Laurel of Innovation 2018”.

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he concept of the contest, organised by the Polish Federation of Engineering Associations – the Chief Technical Organisation and carried out by the Technical Services Department of the Warsaw NOT Council, is based on the assumption that the key to Polish economy's growth is the development of innovativeness, the promotion of innovative products and services and their creators, and assisting the application of innovative solutions which our country needs. However, the Laurel differs from other competition of this type, as the solutions for the contest are proposed by industry experts making up an independent jury, including also experts from the Technical Services Team of the Warsaw NOT Council.

This is a guarantee that the practical value of the solutions will be particularly appreciated.

This time the Competition Jury presided over by Associate Professor Tadeusz Pawłowski, of the Industrial Institute of Agricultural Engineering, Deputy President of the Main Board of FSNT-NOT, established 9 categories (in the past there were up to 14) in which 23 science and business teams received Gold, Silver and Bronze Laurels, and distinctions. The highest number of winners (6) were selected in the category “Innovative services and other socioeconomic solutions”. However, in some categories the main prize was not awarded in order to keep the high level of the Competition.

The awards were presented by Sławomir Mazurek, Deputy Secretary of State at the Ministry of the Environment, Małgorzata Szymańska, Head of the Department for Innovation and Development Support Programmes at the Ministry of Investment and Development and the authorities of Dom Technika in Warsaw and FSNT-NOT, with President Ewa MańkiewiczCudny, who expressed a wish that in years to come today's technology creators will be remembered and appreciated in the same way we commemorate renowned engineers who created the foundation of Poland’s statehood 100 years

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ago. As in the previous years, Laura Łącz was the host of the Gala, adding grace to the event.

Due to the number of the awardees, only the Gold Laurels are mentioned below.

The Oil and Gas Institute received the laurel for the long-appreciated ANAT-M, process chromatography analyser for measuring THT concentration in gas”, recently largely improved in cooperation with the BIATEL INFO-Automatyka company. It detects even the slightest leaks of tetrahydrothiophene (THT), a natural gas odourant which has a negative impact on health and is absorbed through the human respiratory system and the skin. The Central Institute of Labour Protection – the National Research Institute won an award for the new polyethylene, especially for its high density, reduced flammability and smoke emission properties (chemical, dust and biological threats).

KGHM Polska Miedź S.A. The Polkowice-Sieroszowice mine, for the “One Control Room” System enabling a more effective processing of data sets with a beneficial impact on management philosophy and work organisation. The Institute of Precision Mechaning for the “work station for the mechanical examination of biomaterials, including bone structures”, which, thanks to the rapidly developing biomaterials market, enables comparative examinations of bone structure fragments or their 3D models

(possible to achieve through computer tomography, without the necessity to obtain samples from the patient in a surgical procedure), which is a valuable contribution to the design of custom-made endoprostheses. HARPO from Poznań for the BraillePen notebook, a breakthrough in touch reading for the blind and visually impaired” – the newest model of worldrecognised Braille terminals featuring an app mode with a watch, stopwatch and extended notebook (Bluetooth connectivity ensures a simultaneous connection with 5 mobile devices). The Institute of Leather Industry for “The application of bamboo fibre and extract in elements of children’s leather, textile and leather-textile shoes” improving the rheological properties of shoes and providing them with antibacterial and antistatic properties. It supports the proper foot physiology. The developed children's shoes prototypes will receive a recommendation for the “Zdrowa Stopa (Healthy Foot)” symbol, which defines the highest performance standards. The creators also received the 2018 Polish Smart Growth Prize under the patronage of the President of the Patent Office of the Republic of Poland.

The General Sponsor of the 8th edition of the Competition was KGHM Polska Miedź S.A., and System Gazociągów Tranzytowych EuRoPol GAZ S.A. acted as the Main Sponsor.

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INNOVATIVE MATERIALS AND TECHNOLOGIES OF THE

Events

INSTITUTE OF NON-FERROUS METALS WINNER OF THE LAUREL OF INNOVATION AWARD

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ith a staff of outstanding scientists and engineers, and advanced research and technological equipment, the Institute of Non-Ferrous Metals in Gliwice has had numerous and award-winning achievements in the fields of advanced materials and high technology, including, most notably: • The Gold Medal at the 21st Moscow International Exhibition of Inventions and Innovative Technologies Archimedes 2018 for the technology for obtaining standard copper and aluminium alloys from metallic fractions derived from electrical and electronic equipment waste (WEEE) or copper (Cu) and aluminium (Al) cables. The patented technology uses materials recovered from postconsumer waste containing non-ferrous metals to produce copper and aluminium alloys with a high economic performance.

The technology has been developed by Jerzy Kozłowski, Wojciech Mikłasz, and Dariusz Lewandowski.

• An innovative material from post-copper granulated slag for abrasive water jet cutting won the Silver Medal at the International Invention and Innovation Show InTarg 2018. Developed by specialists from the Legnica branch of IMN (Ryszard Chamer, Mirosław Serafin, Zygmunt Kurek, Andrzej Mindziukiewicz, Arkadiusz Szpakowski), this material can serve as a substitute for abrasives currently being imported from China and India.

• The Silver Medal at InTarg 2018 was also awarded to certified reference materials for zinc and ZA8 and ZA12 zinc alloys. Certified spectral reference materials have become IMN’s speciality. Their manufacturing methods are under patent protection. They have a wide range of applications in all fields of industry which carry out chemical composition tests. The use of reference materials

is a basic requirement in production quality management. Developed by: Beata Cwolek, Barbara Bolibrzuch, Justyna Kostrzewa.

• Developed together with Fabryka Przewodów Energetycznych S.A. in Będzin, an innovative, environmentally friendly technology for manufacturing copper cable products using post-production waste was recognised at this year’s 15th International Fair of Aluminium & Technology, Materials and Non-Ferrous Metal Products Aluminium & Nonfermet in Kielce. This technology uses post-production waste to manufacture high-quality, chemically clean copper rods used in the manufacture of cables. The research team comprised Barbara Juszczyk, Beata Cwolek, Łukasz Wierzbicki, Witold Malec, Joanna Kulasa, Jerzy Ilasz (Power Cable Company Będzin - Poland).

• IMN’s Department of Processing Technology has developed a manufacturing technology for new, composite Ti/CuNi50 filler material for soldering and welding titanium and its alloys. The filler material can be used without a fluxing agent, as it has good wettability, ensuring a homogeneous microstructure of the joint and good cohesion with the joined material. IMN’s team comprising Wiesław Kazana, and Krzysztof Marszowski, won the Silver Innovation Laurel at the FSNT – NOT Stanisław Staszic Competition 2018 for the best innovative products.

The Institute’s innovativeness is reflected in its many patent applications submitted this year, including six involving the use of Polish rhenium at the Department of Hydrometallurgy under the guidance of Katarzyna Leszczyńska-Sejda. IMN’s new and innovative solutions have been developed in close cooperation with business and demonstrate that research institutes are contributing substantially to the development of the Polish economy. •

PROF. ZBIGNIEW ŚMIESZEK, Managing Director of the Institute of Non-Ferrous Metals (IMN)

MIECZYSŁAW WOCH, PhD, IMN

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THE POLISH EXPORTERS’ ASSOCIATION At the gala of the Polish Exporters’ Association Congress, held in Warsaw on 22 November, medals were awarded to winners in the contests for Outstanding Exporter of the Year 2018 and Economic Journalist of the Year 2018. The latter was awarded to Editor-in-Chief of “Polish Market” Krystyna Woźniak-Trzosek.

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he Congress was opened by Mieczysław Twaróg, President of the Polish Exporters’ Association, who spoke about the rapid development of Polish exports and plans for their increase.

“The Polish Exporters’ Association expects Polish exports to continue growing. It is projected that exports will be worth EUR240-250 billion by 2020, with the agri-food sector contributing EUR40 billion. To achieve this exports volume, the existing economic potential should be tapped to a greater degree, as should the potential of new pro-exports investments being implemented, among others, as part of government contracts,” he stressed.

Left to right: Jan Frysztak, Plenipotentiary of the President of Huta Szkła Gospodarczego; Stefan Tkaczyk, Chairman of the Chief Council of the Polish Exporters’ Association; Krystyna Woźniak-Trzosek, Polish Market Editor-in-Chief; Mieczysław Tworóg, President, Polish Exporters’ Association.

The Congress was attended by exporters from all industries and regions of Poland, as well as by Minister of Investment and Development Jerzy Kwieciński, President of the Polish Patent Office Alicja Adamczak, Ph.D, and Director of the Department of Economic Cooperation at the Ministry of Foreign Affairs Maciej Fijałkowski.

During the Congress, Minister of Agriculture and Rural Development Jan Krzysztof Ardanowski awarded the Cup and Diploma to the winner of the “Outstanding Exporter of the Year 2018” Contest – Okręgowa Spółdzielnia Mleczarska (a dairy cooperative) in Koło. The awards were presented by Adviser to the Minister of Agriculture and Rural Development Karol Krajewski.

At the request of the Contest Jury, the Minister of Entrepreneurship and Technology granted awards to three companies as part of the Contest: Zakłady Mechaniczno-Kuźnicze Wostal, Splast Sp. zo.o., and Wawrzaszek Inżynieria Samochodów Specjalnych Sp. z o.o. S.K.

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Congratulatory Letters and Outstanding Exporter of the Year 2018 Medals went to, among others, President of Mokate Sp. z o.o Adam Mokrysz, Ankol Sp. z o.o., and Damel S.A. The Polish Exporters’ Association has come about as an initiative of entrepreneurs, and has already been active for more than 16 years as a voluntary association of exporters in all industries and regions of Poland. This organisation supports exporters in their efforts to expand internationally as part of the Strategy for Responsible Development, and to increase the value of their brands, and build their positive image in Poland and abroad. Its strategic objective is to work towards optimising the growth of exports as a driving force behind the development of businesses and the Polish economy, representing exporters’ interests in respect of state, central-government and local-government authorities, as well as Polish and international organisations. The Association’s primary objective is to support the proinnovative and pro-exports development of the Polish economy and its international competitiveness. This involves, above all, the consistent development of exports based on new technologies and knowhow. Poland has a young, well-educated workforce and advanced research facilities and equipment, which should be used more effectively. What is also important for exports is to make better use of Poland’s assets and its natural resources.

The Association has been actively creating conditions to allow exporters to operate more efficiently. This is partly achieved by putting in place new systemic solutions for the growth of exports, and building a positive image of Polish goods on foreign markets.

Events THE ORGANISATION SUPPORTS • the creation of strong product brands as a driving force for the competitiveness of exports • the promotion of the international recognisability of Polish products and Brand Polish Economy • the increased internationalisation of Polish businesses and a modernised range of exports • the efforts of economic diplomacy for the development of Polish exports • the use of instruments facilitating the expansion of exports • the concentration of promotional assets and resources for the expansion of exports • the strengthening of cooperation between exporters and industry trade groups • the coordination of cooperation between the Ministries of Entrepreneurship and Technology, Agriculture and Foreign Affairs to build a positive image of the Polish economy abroad • the development of cooperation between the Polish and Polish-diaspora media for the mutual support of beneficial trade and economic cooperation between Poland and its foreign partners The Association supports the strengthening of cooperation with businesses, banks, financial institutions, central-government and local-government authorities to make better use of all production capacities and promotional, marketing, workforce, and research potential.

It helps to attract foreign investment in industries which need advanced technologies and know-how. It engages in cooperation with businesses and scientists to build new business networks which trigger strong developmental impulses, bringing about the emergence of superior organisations across the global-value chain.

The Polish Exporters’ Association also supports the establishment of national-brand companies, such as Polski Koncern Naftowy Orlen S.A., Grupa Azoty S.A., and Kombinat Górniczo-Hutniczy Miedzi S.A., as well as strong clusters, corporations, producer groups, cooperatives and commercial companies. Its efforts are all about the concentration of assets and resources towards speeding up the development of such industries as the raw-material, chemical, ceramics, furniture, electromechanical, and food (dairy, meat, fruit and vegetables) sectors, etc. So, its key task is to create the right economic and organisational conditions for a stable and pro-development economic environment, as well as for effective promotional support from the Polish diplomatic corps and media.

As part of the strategic projects involving legislation, and the legal business framework, a variety of changes have been introduced for businesses, including SMEs. As far as economic law is concerned, the Business Constitution Package is of key importance, the draft Entrepreneurship Law being at its core. It also involves proposed amendments to other laws, whose aim is to help businesses, not only start-ups, but also experienced entities, to operate.

Overall, it is important for the exports-support efforts to help businesses operate more efficiently, and to coordinate the efforts of institutions and ministries, involving support for the international expansion of Polish businesses as part of the Strategy for Responsible Development. This includes the efforts of the Polish Development Fund (Polski Fundusz Rozwoju S.A.), Polish Investment and Trade Agency (Polska Agencja Inwestycji i Handlu S.A.), Polish Enterprise Development Agency (Polska Agencja Rozwoju Przedsiębiorczości S.A.), Industrial Development Agency (Agencja Rozwoju Przemysłu S.A.), Export Credit Insurance Corporation (Korporacja Ubezpieczeń Kredytów Eksportowych S.A). and Bank Gospodarstwa Krajowego.

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As the Christmas and New Year season is coming, the Supervisory Board, Management Board and all our staff would like to offer you the most sincere wishes. May the Christmas period be a time of peace and rest for you, and may the New Year bring you a lot of success in your private and professional life.

Mechanical-Forging Factory „WOSTAL” Ltd.

With more than 25 years of experience in producing forged items and steel structures, we are able to offer top-quality products. Our customers are companies from the mining, construction, power, railway and automotive sectors. More than 230 workers, three production plants, and development and quality control departments enable us to meet the highest customer requirements, which is proven by the certificates we hold: PN-EN ISO 9001:2015, PN-EN ISO 3834:2007, PN-EN 1090:2012 (EXC3) and the health and safety at work system in compliance with the PN-EN 18001:2004 standard.

For more information visit our website and contact directly a member of our staff. ul. 1 Maja 29-37, 32-340 Wolbrom, tel. +48 32 644 00 68, +48 32 644 00 69, fax +48 32 644 22 32, e-mail: sprzedaz@wostal.pl, sales@wostal.pl

www.wostal.pl

Medicine

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EUROPEAN BUSINESS CLUB POLAND AWARDS On 12 November 2018 the Royal Castle in Warsaw hosted the official European Business Club Poland Awards Ceremony to celebrate the 100th anniversary of Poland regaining its independence. The event was among the projects forming part of the celebrations of the 100 years of independence and it used the logo of the “Niepodległa” (Independent Poland) Multiannual Programme.

Winners and jury of the competition.

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he European Business Club Poland honoured individuals and companies which have particularly contributed to the development of entrepreneurship, the economy, science, culture and sports, and also those which have achieved success on the European and global scale. The 100th anniversary of Poland's regained independence was celebrated not only by presenting awards to companies whose activities span that period but also through a specially selected artistic programme of a patriotic nature.

The European Business Club Poland presents a holistic approach to business issues. It recognises

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the impact on entrepreneurship by culture, science, sports, the media and the whole environment. Such a comprehensive approach leads to synergy between business and other domains, contributing to the wide-ranging development of society, humanitarianism, and an improvement in living standards, all of which are goals of entrepreneurship. In its activities the Club follows the adopted principles and its system of values and ideals. These include culture, ethos, morality, ethics and social solidarity. These values are embodied by the awards of the European Business Club Poland.

Events

The honorary awards of the European Business Club Poland were presented to the following laureates: • Grand Prix Victoria Europae 2018 (European Victory) the Poland national men's volleyball team for defending the title of volleyball world champions, promoting Poland’s image abroad and significantly contributing to strengthening the national sense of community; • Entrepreneur Magnus 2018 (Extraordinary Entrepreneur) Prize - Adam Mokrysz for the broad expansion of the Mokate brand onto global markets and the outstanding and effective implementation of modern management in combination with good family business traditions; • Bene Meritus 2018 (Highly Distinguished) Prize - the Polish Olympic Committee for 100 years of promoting the Olympic ideal and supporting fair play in Polish sports, and also for the multifaceted preparations of the Polish Olympic Team at the Olympic Games; Port of Gdynia for its outstanding contribution to the region's development, special achievements over many years in the development of the port, and the bold realisation of the vision of extending the port further into the sea by building the External Port; the Polish Patent Office for its 100 years of achievement in the legal protection of industrial property in the Republic of Poland, the European Union and other parts of the world; Teatr Wielki – Polish National Opera for making history in opera and ballet in Poland for 170 years, presenting art of the highest quality, fostering crucial values derived from the rich national heritage and world literature; • Signum Temporis 2018 (Sign of the Times) Prize Hefra SA for preserving the 193-year tradition of luxury products with a Polish soul, for the beauty and high quality of hand-made goods; Pogoń Lwów for more than 100 years of continuing the tradition of the Polish sports club, for its bold aspirations, and turning them into reality.

• Pro Futuro 2018 (For the Future) Prize - Warszawska Spółdzielnia Spożywców Społem Śródmieście for the 148 years of the co-operative’s activities for the development of the Polish economy; Czesław Gołębiowski for the many years of his endeavours, creativity and economic achievements, and social activity; Living Museum of Gingerbread for preserving and spreading the tradition of baking Polish gingerbread as a regional product, and promoting Poland abroad.

• Pro Publico Bono 2018 (For Social Activity) Prize - Father Waldemar Cisło, Professor of the Cardinal Wyszyński University in Warsaw - for taking financial and medical assistance and pastoral care to refugees and persecuted Christians in Syria and other countries ridden by war or religious oppressions, and for promoting Polish humanitarian aid abroad.

The honorary patrons of the Gala were Senate Speaker Stanisław Karczewski, and Vice-President of the European Parliament Prof. Zdzisław Krasnodębski.

The artistic programme featured a piano recital by the talented young pianist Krzysztof Trzaskowski. The official part

began with a Polonaise by the Warszawianka Song and Dance Ensemble of the University of Warsaw, the laureate of the Pro Futuro 2017 Prize. The programme also included a presentation of sand paintings by Tatiana Galitsyna, prepared especially for this occasion, with references to the 100th anniversary of Poland's regained independence. The award presentation ceremony ended with a concert of patriotic songs by the worldfamous tenor Bogusław Morka, who performed with a piano accompaniment, charming the audience with his splendid voice, repertoire, and outstanding contact with the audience.

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European Business Club President Janusz Cieślak

Polish Economic Society President Prof. Elżbieta Mączyńska 12/2018 polish market

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THE 2 WOMEN’S ENTREPRENEURSHIP FORUM ND

For the second time, on 16 November 2018 in Warsaw the Women’s Entrepreneurship Forum was organised by the Polish Network of Women Entrepreneurship Ambassadors. The event was held under the honorary patronage of Minister of Entrepreneurship and Technology Jadwiga Emilewicz.

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inister Emilewicz gave the opening speech at the Women’s Entrepreneurship Forum addressed to the participants, among whom were also men.

The Forum has become a key event in the calendar of international events organised on Women’s Entrepreneurship Day (WED; www.womensday.org) around the globe, with the main events being held at the UN Headquarters in New York.

The Women’s Entrepreneurship Day initiative, however, is not just one day in a year, but a global social movement promoting entrepreneurship among women. WED was launched in 2014 in the United States by Wendy Diamond, and has developed dynamically across the globe, promoting and supporting women who decide to pursue the career of a business owner.

WED’s global slogan is to promote technologies: “How Blockchain, Artificial Intelligence, Virtual and Augmented Reality and other technologies can support women’s position in business.”

The event featured the official promotion of the new book in the series “Ambassador of Entrepreneurship in Poland. Never Give Up!,” available in the Polish and English versions. All the co-authors of the book were presented.

“Never Give Up” is a self-help book with a unique collection of previously unpublished inspiring, practical lessons on entrepreneurship, supported by the experience of Women’s Entrepreneurship Ambassadors – 21 outstanding women from different parts of Poland, of various ages, operating businesses of diverse scales, in various sectors, and launching their operations in many countries of the world. All these women share a similar enterprising way of thinking, treating failure as postponed success. A report by the Polish Agency for Enterprise Development demonstrates that there are more than 2 million companies in Poland. Each year approx.

360,000 new companies are registered. Sadly, around 287,000 businesses are wound down within the same time span. Why are some people able to survive a failure while others give up?

The women who wrote this book with us are symbols of financial independence and success, and share their experience to inspire others.

Women hold huge potential, which is often untapped. They account for over a half of the global population, but their proportion among entrepreneurs is much lower.

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The Polish Network of Women Entrepreneurship Ambassadors is a non-profit organisation with a mission of promoting the positive perception of entrepreneurs, and supporting entrepreneurship, especially among women. The Foundation’s originator and founder is Urszula Ciołeszyńska, who has decided to apply good models from abroad in Poland.

The Women’s Entrepreneurship Forum is a cyclic event, and the next one will take place on 19 November 2019 on World • Women’s Entrepreneurship Day.

Cultural Monitor

CM

AS USUAL, THE CHRISTMAS AND NEW YEAR SEASON BRINGS PLENTY TO CHOOSE FROM, WHETHER IT IS NEW RECORD RELEASES, BALLET PRODUCTIONS OR MULTIMEDIA SHOWS. “POLISH MARKET’S” RESIDENT ART CRITIC MACIEJ PROLIŃSKI TAKES HIS PICK.

ALBUM RELEASES

"A CHRISTMAS CAROL FOR THE WHOLE YEAR. WOJCIECH MŁYNARSKI & ARTISTS "- AGORA - CD

Songs by bard Wojciech Młynarski, who died in March 2017, were hummed by the whole of Poland. His hit "We are on holiday" enjoyed the greatest popularity. But Młynarski, who was also a poet and director, wrote very seriously about the most important matters: God, love, loneliness and hope. He was greatly appreciated for this serious approach to life, though his amazing sense of humor also shone through. It was a duality in which there was no contradiction: a sense of humor and a philosophical outlook. This winning combination produced some extraordinary songs which remain just as appealing today as they were when they were originally written in the 1960s, 70s, 80s and in more recent times. The lyrics of the Christmas carols included in this album and written over several decades, were discovered by Wojciech Młynarski's son Jan after his death. Jan also compiled the album. The carols are so universal that you can listen to them (in line with the title of one of them) throughout the year. They are performed in new, sophisticated versions produced

by Janek by well-known and respected Polish vocalists, including Alicja Majewska, Artur Andrus, Natalia Przybysz, Natalia Szroeder and Grzegorz Turnau.

JAN PTASZYN WRÓBLEWSKI SEXTET - "KOMEDA. MY SWEET EUROPEAN HOMELAND", VOL. 80 - WARNER / POLSKIE NAGRANIA -2 CDS

A work by the self-taught icon of Polish jazz, pianist and composer Krzysztof Komeda who died prematurely in exile. He is best known as the composer of a lullaby for the soundtrack of Roman Polanski’s cult movie “Rosemary’s Baby.” "My sweet European homeland" was written by Komeda in 1967 as one of his last projects completed before his departure for the United States, commissioned by Joachim-Ernst Berendt - head of the German SWF branch, as part of the "Jazz und Lyrik" album series. The idea was to combine Komeda’s music with Polish poetry adapted into German by outstanding German translator Karl Dedecius who was born in the Polish city of Łódź. Komeda recognised this collection as his "most important and most beautiful collection." The album features another giant of the Polish jazz scene, saxophonist and composer Jan Ptaszyn Wróblewski, who after many years restored his friend’s work, for the first time in an instrumental form without the poems. This version wonderfully brings out the lyrical Slavic element of this great music.

The artist is accompanied by leading jazz musicians such as Henryk Miśkiewicz on alto saxophone, Robert Majewski on trumpet, Łukasz Poprawski, Wojciech Niedziela on piano, Sławomir Kurkiewicz - bass, Marcin Jahr on drums. The first CD was recorded in Polskie Nagrania Łódź studios in 2013, while the second CD is a live recording at the Love Polish Jazz Festival in Tomaszów Mazowiecki in 2016.

TOMASZ STAŃKO - "MUSIC 81", VOL. 69 - WARNER / POLSKIE NAGRANIA – CD Józef Stańko, who died in July 2018, was one of the most creative and original jazz musicians in the world.

He was called "Komeda's ideological heir" by many experts. The album "Music 81" shows him as a versatile composer and trumpeter with great sensitivity, great intuition and his own colour. It is an exceptional piece in Stańko's discography. It was produced during a period of political tensions in communist Poland when martial law was imposed in 1981 to crush the Solidarity revolt. It captured the emotional personal dilemmas faced the artist. During the recording sessions Stańko teamed up probably for the only time with the outstanding Polish pianist Sławomir Kulpowicz, whom he had met during his trip to India in 1980. The album includes five pieces by Stańko which have lost nothing of their freshness and originality and which easily lend themselves to contemporary interpretations. Stańko presents himself as a free-jazz performer who can play sophisticated and yet very accessible jazz.

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Cultural Monitor

TOMASZ CHYŁA QUINTET - "CIRCLESONGS" - POLISH RADIO – CD

The band, whose leader is violinist Tomasz Chyła coming from the Gdańsk-Gdynia-Sopot jazz scene, is taking the Polish jazz scene by storm. The most important achievement of the quintet is the Grand Prix it won at the 40th International Jazz Juniors Festival in Krakow in December 2016. On "Circlesongs" (a term derived from choral music - improvised, polypohonic music based on repetitive motifs) the musicians Tomasz Chyła (violin), Piotr Chęcki (saxophone), Szymon Burnos (piano), Krzysztof Słomkowski (double bass) and Sławomir Koryzno (drums) demonstrate their maturity marked by the leader's musical charisma. They draw on the history of music (and not just of jazz music.) It is a set of tunes that combine formal and sound experiments with refreshing, vibrant artistic energy, but also beauty and sublimation. With each piece the young musicians show that it can intrigue audiences and enchant them with the joy of improvisation. You can distinctly hear that the musicians have gone through thorough training. Their unbridled imagination comes through very clearly. To record such music you need to be a true artist, and to know what Tomasz Stańko means for Polish culture. This album is dedicated to him. It may not be easy listening, but it certainly is one of the most thrilling Polish jazz albums this year.

"MUSICA SACROMONTANA - JÓZEF ZEIDLER - MISSA D-DUR" - DUX – CD The 'Musica Sacromontana' Oratory Music Festival, held every year, gathers large numbers of music lovers and artists at Basilica on the Holy Mountain in Głogówko near Gostyń in central Poland. During the festival concerts, religious as well as classical music is performed. In the 18th century, the Basilica was a significant centre of music life, and at the same time the place where the so- called "Polish Mozart" Józef Zeidler (1744-1806) lived and worked. He is one of the most outstanding representatives of classicism in Polish music. This album features a piece of music, “Mass in D major,” by Zeidler found recently in the collection of Die Bayerische Staatsbibliothek in Munich, and currently kept at the Archdiocesan Archives in Poznań. The music is characterised by its clarity and orderly form, and is written in line with to the classicist canon. The Sinfonia Varsovia and the Camerata Silesia under Jerzy Maksymiuk accompany singers from the city of Katowice, including soprano Aleksandra Kubas-Kruk, mezzo Anna Radziejewska and bass Jarosław Bręk. This delightful recording helps us discover an unknown Polish composer. The music has a wonderfully calming effect. Maestro Maksymiuk once told “Polish Market”: "I like birch trees, a copse. I like all things clear and transparent. That explains why I’m not so much into Wagner. I choose what is close to me, also in music. " No wonder, then, that one day he encountered Zeidler, with excellent results.

BALLET

THE POLISH NATIONAL BALLET ON THE 100TH ANNIVERSARY OF THE COUNTRY’S INDEPENDENCE.

The premiere of the ballet "Our Chopin" took place at the Teatr Wielki - National Opera in Warsaw on November 17. This time director Krzysztof Pastor this time comes up with new choreographic interpretations of famous and much appreciated piano concertos by Poland’s best-known composer Fryderyk Chopin. English choreographer Liam Scarlett of the Royal Ballet in London, where he has already choreographed several ballets, was invited to participate in the project. Scarlett accepted the invitation because, as he explains, Chopin's music had inspired him for a long time, though he had not yet had the opportunity to deal with it in his choreographic work. Therefore, he welcomed the offer to create a new choreographic vision of the Concerto in E minor for the Polish National Ballet. The second ballet of the evening is the Concerto in F minor in the choreography of Krzysztof Pastor himself, who draws inspiration from Polish music to reach for poetic references from the nation’s history. The music side rests in the hands of virtuoso Krzysztof Jabłoński accompanied by the National Opera Orchestra under Grzegorz Nowak. The main parts in the piece choreographed by Scarlett are performed by Yuka Ebihara, Chinara Alizade, Patryk Walczak and Dawid Trzensimiech. The part choreographed by Krzysztof Pastor features Yuka Ebihara, Dagmara Dryl, Vladimir Yaroshenko, Kristóf Szabó, Maksim Woitiul, Paweł Koncewoj and Carlos Martín Pérez.

AUDIO

VIDEO SHOW 2018

Audio Video Show – Poland’s largest and Europe’s second largest audio and video equipment fair, gathering nearly 200 exhibitors and over 500 brands, took place in Warsaw November 16-18. The exhibition was held at the PGE National Stadium and in top Warsaw hotels – the Golden Tulip and Radisson Blu Sobieski. On show were home audio-visual systems and their parts such as audio sets, headphones, TV sets and projectors. The Audio Video Show is the only place where you can try out and objectively compare many devices from almost all price caps. Parallel to the presentation of the equipment, numerous seminars devoted to audio and video were held. A special guest of this year's edition of the Audio Video Show was the outstanding Polish vocalist and songwriter Anna Maria Jopek. During the exhibition, a unique presentation of the artist's latest album "Fleeting" took place. It was recorded with one of the greatest contemporary jazz artists, American composer and saxophonist Branford Marsalis and came out in a vinyl version. A get-together for all enthusiasts of analogue sound was hosted by radio presenter Piotr Metz. The Radio Three deejay presented the ninth album release by the Beatles, popularly known as the "White Album". Visitors also had the chance to lay their hands on the best vinyl records and accessories from the pre-digital era.

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One of my

is coming true 70 polish market

the most outstanding Polish violinists of his generation, an ambassador for Polish music in the world, and laureate of “Polish Market’s” Honorary Pearl award in 2018, talks to Maciej Proliński.

Photos: Anita Wąsik

GREATEST MUSICAL DREAMS

JAN WAWROWSKI, one of

Culture

Our conversation is for a magazine which shows that the distance between art and economy should not be too great and that the patronage of the arts, including private patronage, may play a significant role in culture. What is the activity of private patrons like today?

In Poland, a country whose economy is doing well and which has a great musical tradition, business people still have little involvement in such long-term investment in culture, something which has been a problem for years.

I think, however, that today we are already able to reverse these unfavourable proportions and open the Polish economy broader to culture by overcoming existing mental barriers. Patronage, both state and private one, is an indispensable value, from both a historical and contemporary perspective. This is worth remembering.

PM

Indeed, but there is a quite widespread opinion that spending on culture means “generating costs.”

This is absurd. I think that the business people who share this view should look at what it is like in the world - in much more developed countries, which we aspire to join. Culture is the basic element which the young generation needs so much in their general education. Culture is an element in which we are born, develop and fulfil our life. We regard our life as worthy when we have a sense of fullness. Without culture we will never achieve this fullness. In turn, social responsibility is an integral part of modern business. And really we are not “reinventing the wheel.” In Germany, it is cultural events that provide an opportunity for business talks, not the other way round.

PM

So let’s go now to the model examples of ties between art and business in Poland. What do you feel today when a 333-year old Stradivarius, the first one in Poland after World War II, has got into your hands thanks to a private patron – Mr Roman Ziemian, an owner of the FutureNet company?

One of my greatest musical dreams is coming true. This violin is a hidden treasure, discovered and given to me so that I can explore the beauty of its sound and reveal it to the whole world. The violin is in an excellent state of preservation. It has virtually perfect proportions and its sound is marvellous – noble, crystal clear, deep and strong. When I play I can feel its vibrations and have the impression that it is alive. It is a turning point – not only for me, but for musicians in Poland in general. The openness and responsibility of Mr Ziemian open a completely new chapter in this respect. I have PM

You have recorded your latest album, “Hidden Violin,” on this instrument. José Gallardo accompanies you on the piano.

You play Polish violin masterpieces – compositions written by Bacewicz, Wieniawski, Karłowicz, Różycki and Szymanowski.

One can call it a hit for the 100th anniversary of our regained independence.

Indeed. I wanted to mark this centenary with these compositions, to show “gems” of Polish chamber music. These compositions are simply suitable emotionally, they have a common aesthetic denominator. They also offer an opportunity of making it into a whole and stamping it with the seal “Hidden Violin.” I am simply happy that these compositions feature on the album. There are many well-known pieces here, such as those by Wieniawski, and less known ones, like for example Różycki’s “Two Melodies.” This is probably the most accessible of my albums.

I wanted this instrument to be presented in these short and stylistically diverse compositions in a very accessible way so that every person in Poland could listed to the Stradivarius at home. My experience and skills, combined with this instrument, have produced – in my view - something that I was unable to experience before.

PM

FOR ME MUSIC IS A WAY OF EXPRESSING EMOTIONS, SOMETHING WHICH VERY DIRECTLY TOUCHES THESE EMOTIONAL CORDS IN MAN AND IN RELATIONS BETWEEN PEOPLE.

You must have been asked on many occasions what music is about. But I also have to ask you this question. Is music the magic thing being the combination of melody, harmony and rhythm? They often say it is something which is the most abstract.

Music – a very universal language – is, in my view, the easiest way of meeting and promoting a country and its culture because in its case there are basically no boundaries which could limit its content and the depth of the message. For me music is a way of expressing emotions, something which very directly touches these emotional cords in man and in relations between people.

PM

This year, you are receiving our Honorary Peal award in the Culture category. What does it mean to you?

The fact that I have found myself among the laureates is an honour for me and joy that what I have done so far – promoting Polish music virtually all around the world - has been appreciated. I also regard this distinction as a sign of approval of my consistent effort for classical music to be noticed not only by music lovers – who know it, after all - but also all other people, for example the world • of business.

PM

already received signals from other musicians that their talks with various patrons about the possible purchase of an instrument for them are now much easier. When I was a novice violinist I also tried to get such instruments. And I have to admit that I was very lucky because I received a good old instrument from the telecom operator Telekomunikacja Polska when I was 18. The problem still is that this patronage should be well developed and natural, and the fledgling artists should also have an opportunity to play such instruments.

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Culture

STRADIVARIUS “POLONIA”!

Over two years ago the famous Polish violinist JANUSZ WAWROWSKI together with the National Forum of Music in Wrocław put forward an idea to buy a Stradivarius violin to mark the 100th anniversary of Poland’s regained independence. Before 1939 the violin belonged to Henryk Grohman, a manufacturer from Łódź, central Poland, who deposited his instrument in the National Museum in Warsaw, from where it was looted by the Red Army. It seemed that Wawrowski’s idea would not come true, but an instrument available for purchase was sourced belonging to the Italian Ratini family. A buyer was found in Poland ready to fund the initiative. His name is ROMAN ZIEMIAN, who - together with German businessman Stephen Morgenstern - owns the FutureNet company, which offers online products and services, and multi-level marketing.

Maciej Proliński

T

he instrument (the first Stradivarius in the post-war Poland) comes from 1685, i.e. from the period when Antonio Stradivari (1643-1737) – one of the most talented luthiers in the history of violin making - developed his own model of the violin. These instruments are unquestionable masterpieces of violin making and are characterised by an excellent selection of wood. Stradivarius determined the final shape of string instruments, which the following generations considered to be perfect. However, until the present day it is not certain whether Stradivariuses owe their wonderful sound to an unrecognised structural detail, technological aspects or the type of material.

The instrument purchased for Poland has been deposited in the Royal Castle in Warsaw.

It will be borrowed to Janusz Wawrowski for concerts and recordings. Detailed examinations of this 333-year-old instrument showed that all of its elements are original and perfectly preserved. The authenticity of the violin is confirmed with relevant certificates. “The instrument is a complete work of art, in its harmony approaching Platonic perfection. I am convinced that soon you will all be able to appreciate the genius of Stradivari, my contribution to the sonic properties of the instrument and the phenomenal play of Janusz Wawrowski,” said Jerzy Maślanka, an artist luthier.

The violin, purchased to commemorate 100 years of Poland’s independence, will be on display at the Royal Castle in Warsaw from 7 to 21 December. This will be the only opportunity to take a close look at the violin, whose market value is now around PLN20 million. Also, on 4 December the Royal Castle will house the

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dedication ceremony for the violin, which will be given the name “Polonia”.

The violin was used by Janusz Wawrowski - a graduate of the Fryderyk Chopin University of Music, Professor Mirosław Ławrynowicz’s class, an outstanding young artist who has signed a contract with Warner, a prestigious record company - to record his newest album “Hidden Violin.”

This extraordinary album, which features a number of hits, showcases the violin through Polish violin masterpieces. The programme includes compositions by Henryk Wieniawski, Mieczysław Karłowicz, Grażyna Bacewicz, Ludomir Różycki, and the inspiring fragments of “Harnasie” by Karol Szymanowski. The Stradivarius on which Wawrowski plays has probably never been recorded before. Thanks to this, for the first time from its making, the sound of this precious instrument has become available for a wide audience.

“Ever since I was little, even before I started dreaming of becoming a virtuoso, I have heard stories of the famous violins made by Antonio Stradivari,” Janusz Wawrowski says. “Later, I found out that behind the name, which sounds mysteriously to a child, there is a story of a man who made an outstanding impact on the history of music as a whole and is considered an unrivalled genius of violin making, and his instruments are used by the world’s most renowned violinists. The instrument provides me with an opportunity to express intense emotion; it can convey overwhelming joy or weeping sorrow, moving the minds and hearts of the listeners.

I get the impression that sound is becoming a physical, tangible substance which I can freely shape with my thoughts.”

Roman Ziemian (left) and Janusz Wawrowski (right)

This would not be possible without the longterm investment of Roman Ziemian, a patron of the arts who believes in the idea of accessible culture. The donor has been involved in charity and educational work around the world for years. The need to purchase a Stradivarius came from the heart and the love of music, which began when he was in the music school. “I graduated from a music school, so if I hadn’t taken up business at the age of 15, I myself would have needed help from this world to fulfil my artistic goals. There is no recipe for success. There’s only hard work, persistence, consistency and confidence,” Roman Ziemian said.

•

Events

EVERYONE HAS A DIVINE

Photo: Dawid Raw

spark TATIANA JACHYRA, photographer, poet and novelist, talks to Maciej Proliński.

You are active in various domains of art, including the visual arts and writing. According to some, the notion of art eludes definition.

What is it like for you? I’m frequently wondering whether in the history of our world, which is increasingly often verging on the ridiculous, in the culture of excess and want, art has ever been dependent in any way. It seems that independence is its sense and measure - not only in the Middle Ages, Renaissance and Communist times.

It's a secret entity - a prayer, or the “flight of Icarus” - created out of love, with no need for argumentation or defence.

When it comes to art, everyone has a divine spark. The key is to recognise it and make use of it. However, each artistic activity should be independent. From the beginning to the end, creation is a solitary process. A thought evolves, takes shape, and needs to be materialised, for instance in poems or books. It’s the same with painting and art photography. However, in reportage or session photography the creation mechanisms are different - the right time, light, the moment between nanoseconds when you know, you are certain, that the image on the focusing screen is the right frame. I think that the factor determining the independence of art and creative acts is whether the artist is able to sign their work with their name, whether it will be their legitimate offspring, or a bastard.

PM

Imagine a young person who is beginning their adventure with art, and is achieving their first successes... But the person does not know what to focus on, which path to choose... Or how to get there... What would be your advice?

I took up the profession twenty years ago, when times were different, and the esteem enjoyed by photography and photographers was higher. Photography has become popular, and access to equipment is PM

much easier. Now everyone who has a phone and Instagram can be a photographer. I think that people who are really serious about photography will find their way, although it may not be a path of roses.

How do you begin making a photograph?

It starts with actiona First, the photo reporter’s instincts kick inwith, then you make good contact with the photographed person. The rest comes later.

PM

From whom have you learnt the most about the art of photography?

I had an excellent supervisor. Adam Hawałej worked for the Polish Press Agency and always told us to seek our own style in photography instead of mindlessly copying our masters. Everyone has their idol. For portraits, mine is Peter Lindbergh – I’ve been following his work for years, and when it comes to press photography, it's Ricardo Vianova.

PM

What is the most difficult and the most exciting in photographic portraits of people?

If I had not become a photographer, I would probably have chosen clinical psychology. What is fascinating in the contact with the photographed person is that each time you’re dealing with a different personality. The ability to strike up a dialogue before and during the session is priceless, and I consider it to be a vital character trait for me. Of course, there are times when making the contact is not easy, which makes it even more interesting.

PM

PM

Whom would you like to portray the most? Do you have any favourites?

• ... I don’t know... Robert de Niro maybe...

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* Price determination depends on availability and components of total purchase cost.

ORGANIC FOOD

FROM “ECOLESSONS” TO “AN INDEPENDENT POLAND TASTES GREAT” AND BEYOND

The Polish eco-food market is growing. This can be attributed to the development of a relatively young sector, covering young farmers, food processing specialists and retailers, and above all, to the growing consumer awareness.

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heir maturity is a result of consumer education measures taken by industry organisations, and implemented through the social media. In the trend of social changes leading to consuming higher quality food, the activities of the Polish Ecology Association, spanning over a dozen years, are especially visible. The Association clusters not only eco farmers and food processing specialists, but also all organisations and institutions largely contributing to the development of the eco market. These include the Polish Society of Ecological Farmers and the Biopolska Union of Ecological Farmers, and some of the major higher education institutions, like the Medical University of Warsaw and the University of Agriculture in Kraków.

This is important as a factor encouraging both academic staff and students to cooperate.

There is also the valuable membership of such associations as the Association of Butchers and Meat Producers of the Republic of Poland, the Pro Carpathia Association for the Development and Promotion of Podkarpacie, the Ekołan Kuyavian-Pomeranian Association of Organic Producers and the Association of Bakery Craftspeople of the Republic of Poland.

The means of reaching customers - like for example the highly popular Łódź International Fair and a Polish-UAE company in Dubai, which has become another active member of the Association - are extremely crucial for the market’s development. Attracting so many businesses from various fields and environments to the Association can be regarded as a huge success, as it provides new opportunities for consumer education. One of the examples is the Podlasie Culinary Academy, based in Białystok and operating across the whole country.

The Polish Simmental Cattle Breeders Association is present at many major events and small fairs, with presentations organised by breeders active in the business; there are also tasting events, which attract big crowds. The workshops for baking delicious bread are not only popular among the attendees of such events but also provide an opportunity for children to learn how to bake rolls or croissants (“As the twig is bent, so is the tree inclined”). It is also essential to mention the Biocert Małopolska certifying unit, and the popularisation of knowledge on organic food certification processes. The principles of the Foundation of the Fair Trade Coalition – Fairtrade Polska – are very close to the concept of food certification.

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This brief overview alone provides some insight into the activities of the Polish Ecology Association in Poland. In terms of its international activities, these include participation in the European, Asian and American editions of the Bio Fach fair.

It is also worth mentioning the three-year (2015-2018) campaign promoting organic food in the United States, Japan and Singapore, under the title Eco-Europe – Quality and Tradition, a campaign addressed to the buyers of Polish organic food, Polish farmers, and owners of food processing businesses. Thanks to the new sales opportunities, the members of the Polish Ecology Association, and others, can advance food processing.

The most recent commendable project of the Polish Ecology Association, implemented in the year of the 100th anniversary of Poland's regained independence, aimed at promoting Polish food and the national culinary traditions is “Niepodległa Polska Smakuje” (An Independent Poland Tastes Great). Members of the Polish Ecology Association made a commitment to promoting the quality and flavour of Polish food, and to encourage consumers to be economic patriots.

As a result of the project, the booth of “An Independent Poland Tastes Great” was present at major agri-food events in the country.

The presentations were held in Warsaw, Szepietowo near Białystok, Minikowo near Bydgoszcz, Augustów, Rudawka Rymanowska, Kraków and Boguchwała. Abroad, in Singapore, Indonesia, and Japan, in the autumn the Dar Młodzieży sailing ship became a floating embassy of Polish taste. Within the formula of the National Reception, functions were organised for target groups, with tastings prepared by Polish chefs experienced in giving international presentations. These were made with the use of Polish products, including pork, beef, lamb, poultry, and their products. Information on ingredients was given for each dish.

However, this is not all. On the deck, B2B business talks were held between representatives of Polish industry sectors and potential partners.

These are only a few of the projects, such as “Ekolekcja” (Eco-lesson) and “Niepodległa Polska Smakuje” (An Independent Poland Tastes Great), but the number of smaller campaigns is much higher – every year the Polish Ecology Association holds 50-60 educational events presenting consumers with basic information on conscious nutritional choices.

There are frequent complaints that consumers do not have access to facts on healthy living and eating, or how to source healthy food. The Polish • Ecology Association is one of the sources of such information.

ORGANIC FOOD

NATIVE BREEDS GUARANTEE THE QUALITY OF TRADITIONAL PRODUCTS How to ensure the best quality of meat products? Jędrzej Krupiński and Paweł Radomski of the National Research Institute of Animal Production look at ways of selecting the best breeds and processing methods.

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esearch conducted at many European and world scientific centres shows that raw materials and processed products obtained from native breeds of animals fed in the traditional way prove to have more favourable properties for the processing industry and, at the same time, a higher content of biologically active substances, with a positive influence on human health. This has been corroborated by research undertaken in Poland within the BIOSTRATEG programme.

The national results of research conducted at the University of Life Sciences in Lublin also indicate that the quality of meat from native breeds of bovine animals is good, including a high mineral content and a favourable fatty-acid profile. What is more, several studies prove that meat obtained from animals kept in the traditional system, based on the extensive use of pastures, exhibits a more favourable proportion of Omega-6 to Omega-3 fatty acids, and a higher content of desirable polyunsaturated fatty acids (PUFAs), and of the Omega-3 family in particular.

The use of pig and bovine meat raw material in the processing industry to produce high-quality cured meat is characterised by great culinary value. Test batches of cured meat produced by the programme partner, the Jasiołka meat processing plant, have enjoyed widespread recognition during presentations and tastings at markets both in Poland and abroad. Dry-aged products, both beef and pork, have gained special acknowledgement. Raw material for the production of these products is obtained from cows grazing on mountain pastures. The meat from pigs of the Złotnicka (spotted and white) and Puławska breeds is used to produce excellent traditional cured meats. The high quality of local products also entails traditional production and preservation methods.

Smoking is one of the oldest methods of meat preservation, traditionally used in our geographical area. It is a physicochemical method of preserving food with smoke and temperature. Thanks to smoking, the food acquires a specific aroma, a fuller flavour, an attractive colour, and more succulence, as well as retains the nutritional value of the food. Traditional smoking is a process

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performed in accordance with the craftsmanship and knowledge of local producers, involving drying, smoking with cold, warm and hot smoke, and smoking combined with roasting into a pale, dark, brown, cherry-red, and other colour, subject to a local centurieslong tradition. The process takes place in traditional smoking chambers, in which the smoke and heat are provided by pieces of hardwood from deciduous trees, containing the right amount of moisture, and burnt in a furnace within the chamber, over which or at a certain distance the product is placed and undergoes heat treatment on bars or sticks.

An analysis conducted by a team of researchers of the University of Agriculture in Kraków studied traditional meat products originating from various regions across Poland, and manufactured from raw materials from native breeds - cured meat from the Puławska and Złotnicka pig breeds, and the Simmental, whitebacked (białogrzbieta) and Polish red cattle, smoked cheeses made from the Polish red and Simmental cows' milk, and cheeses made from sheep’s and/or goats' milk. The analysis indicates that these products are of high quality and safety, especially as regards the content of polycyclic aromatic hydrocarbons (they meet the requirements of European Commission Regulation No. 1327/2014).

The products are worth recommending as traditional products of high quality and a unique taste.

Due to these valuable properties of raw materials and products from native breeds in many European countries, efforts are being made to promote native breeds by means of the certification of products from these breeds with special quality marks.

Within the research project “The Uses and the Conservation of Farm Animal Genetic Resources under Sustainable Development", the National Research Institute of Animal Production has developed a programme of certification with the quality mark “Rasa Rodzima"(Native Breed).

•

The Jasiołka Meat Processing Plant - the programme's partner

Economic Monitor Economy

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

Key economic trends Poland’s high GDP growth indicates that the condition of the Polish economy is very good.

According to a flash estimate made by Statistics Poland (GUS), Poland’s seasonally adjusted gross domestic product (GDP) grew in the third quarter of 2018 by 5.7% year on year.

October was a successive month to see a rise in employment and the unemployment

Source: Statistics Poland (GUS)

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

rate was the lowest in 28 years. Many businesses already suffer from a shortage of employees. As a result, it is necessary to invest in innovation to make it possible to raise production without the need of hiring new staff.

Inflation stays within the target band set by the Monetary Policy Council. It is driven mainly by food and transport-related prices.

The risk of an inflation overshoot in the medium term is small.

October saw strong increases in industrial production and construction and assembly output. Also, a high increase was noted in producer prices and construction output

prices. The situation in the residential building sector continued to be favourable. In the 10 months to the end of October, developers completed the biggest number of homes.

In January-September 2018, exports and imports increased on the corresponding period of the previous year. The trade balance was negative, indicating that growth in imports was higher than in exports.

When it comes to the implementation of the national budget in the three quarters to the end of September, there was a surplus of revenue over expenditure of PLN3.2 billion thanks to favourable economic conditions 12/2018 12/2018 : Polish polishMarket market ::81I

Economy Monitor Economic

Central government debt Data released by the Ministry of Finance for September and October confirm that central government debt is on the rise.

Source: Statistics Poland (GUS)

and the tightening up of the tax system. Under the 2018 budget law, the government plans a deficit of PLN28.5 billion, with the assumption of GDP growth at 3.8%, inflation at 2.3% and public sector deficit at 1.7%.

According to a forecast made by the Organisation for Economic Cooperation and Development (OECD), Poland’s GDP will grow 5.2% in 2018 and 4.0% in 2019, as reported in the November issue of “Global Economic Outlook.”

In October, the credit ratings agency Standard & Poor’s revised up its credit rating for Poland to A- for long-term foreign-denominated debt and to A/A-1 for respectively long-term and short-term debt denominated in the Polish currency.

Source: Statistics Poland (GUS)

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

Economic growth Poland’s economic growth remains strong.

According to a flash estimate by Statistics Poland (GUS), in the third quarter of 2018, Poland’s seasonally adjusted GDP in constant prices, with 2010 as the reference year, grew by 1.7% in real terms quarter on quarter and 5.7% year on year. The non-seasonally adjusted GDP in average annual prices of the previous year grew in real terms by 5.1% year on year.

At the end of September 2018, State Treasury debt amounted to PLN949,654.5 million, which represented a rise of PLN719.3 million (+0.1%) in September and PLN21,181.5 million (+2.3%) since the beginning of the year.

The increase in State Treasury debt in September resulted mainly from positive net borrowing needs of the national budget (+PLN0.5 billion), including a national budget surplus of PLN2.1 billion; a rise in the cash position on national budget accounts (+PLN0.9 billion); and the strengthening of the zloty (-PLN1.6 billion) - by 0.6% against the euro, 0.1% against the dollar, 1.0% against the Swiss franc, 2.5% against the Japanese yen and by 0.8% against the Chinese yuan.

The increase in State Treasury debt since the beginning of the year resulted mainly from negative net borrowing needs of the national budget (-PLN14.9 billion), including EU funding balance (-PLN7.1 billion) and balance on deposits of public finance sector units and court deposits (-PLN8.2 billion); a rise in the cash position on national budget accounts (+PLN23.3 billion) due to the collection of funds for financing borrowing needs; the depreciation of the zloty (+PLN8.9 billion) - by 2.4% against the euro, 5.6% against the dollar, 5.5% against the Swiss franc, 4.8% against the Japanese yen and by 0.1% against the Chinese yuan.

At the end of the third quarter of 2018, domestic debt amounted to PLN666.4 billion (70.2%) and foreign debt amounted to PLN283.3 billion (29.8%). Debt owed to residents accounted for 52.1% and to non-residents 47.9%.

According to early estimates made by the Ministry of Finance, at the end of October 2018 State Treasury debt amounted to around PLN954.1 billion, which represented a rise of PLN4.5 billion (+0.5%) compared to the previous month and PLN25.7 billion (+2.8%) compared to the end of 2017. Domestic debt amounted to around PLN665.8 billion and debt in foreign currencies to around PLN288.3 billion, or 30.2% of the total State Treasury debt.

Economic Monitor Economy

Employment and wages in the business sector October data show a rise in employment and wages in the business sector.

In October 2018, average employment in the business sector – in businesses employing more than nine persons – was 3.2% higher than a year earlier. The number of employed was 6,227,300.

The average gross monthly wage rose 7.6% year on year to PLN4,921.39.

Prices The biggest contribution to CPI inflation in October 2018 came from transport-related prices.

In October 2018, prices of consumer goods and services were 0.4% higher than a month earlier – prices of goods rose by 0.5% and of services remained unchanged. The biggest positive contribution to CPI inflation came from prices of clothes and footwear (up 3.9%) and food (0.5%). Prices related to recreation and culture dropped by 0.5%.

Compared to October 2017, transportrelated prices increased the most (up 7.5%).

Home-related prices and food prices increased by 1.8% each. Communications-related prices and prices of clothes and footwear dropped by 3.6% and 2.9% respectively.

Prices of consumer goods and services were higher by 1.8% year on year - prices of goods increased by 1.8% and of services by 1.5%. This means that inflation stayed within the inflation target band set by the Monetary Policy Council (2.5%+-1 pct. point).

Industrial output In October 2018, industrial output in constant prices generated by businesses providing employment to more than nine persons was 7.4% higher than a year earlier and 9.9% higher than a month earlier. After seasonal adjustments, industrial output was 5.0% higher than a year earlier and 1.2% higher than in the previous month.

Compared to October 2017, output rose in 28 industrial sectors, including the production of electrical equipment (up 19.5%); “other” transport equipment (18.1%); metal products (13.0%); electricity, gas, steam and air conditioning supply (11.5%); the production of “other” non-metallic mineral products (11.1%); paper and paper products (10.5%); motor vehicles, trailers and semitrailers (9.1%); and machines and equipment (8.1%).

Industrial output dropped year on year in six sectors, including the production of pharmaceuticals (down 24.0%); leather and leather products (7.0%); and coal mining (1.9%).

In October 2018, producer prices were 0.5%

higher than a month earlier and 3.2% higher than a year earlier.

Construction and assembly output In October 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 7.8% higher than a month earlier and 22.4% higher than a year earlier.

After seasonal adjustments, construction and assembly output was higher by 19.6% year on year and lower 0.5% month on month.

Compared to September 2018, construction and assembly output rose in the segment involved mainly in infrastructure building (up 13.2%) and the construction of buildings (7.0%). Businesses dealing with specialised construction work recorded a drop in output – by 1.1%.

Compared to October 2017, output rose the most in the segments involved in the construction of buildings and infrastructure

Industrial, and construction and assembly output October 2018 was a successive month to see a rise in industrial, and construction and assembly output.

Source: Statistics Poland (GUS)

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Economy Monitor Economic

building – by 26% and 25.2% respectively.

Businesses whose main activity is specialised construction work recorded a 12.6% increase in output.

In October 2018, construction and assembly output prices were 0.5% higher than a month before, with prices in the segments of specialised construction work, the construction of buildings and infrastructure building being higher by respectively 0.6%, 0.5% and 0.3%.

In year-on-year terms, construction and assembly output prices were 3.4% higher, with prices in the segments of building construction, infrastructure building and specialised construction work being higher by respectively 3.8%, 3.3% and 3.0%.

Residential building In the 10 months to the end of October, the number of home completions was higher than a year earlier. The number of building permits issued and notifications with a building design submitted also increased as did the number of home starts.

In the 10 months to the end of October, 146,000 homes were completed in Poland, 3.1% more than a year earlier. At the same time, the construction of 194,000 homes was started – 9.5% more than a year earlier. The number of building permits issued and notifications with a building design submitted rose by 2.2% to 218,000.

Developers completed 86,900 homes, 5.2% more than a year before. Their share in the market was 59.5%. Self-builders completed 54,600 homes, or 0.1% more than a year earlier. Housing associations completed 2,100 homes versus 1,900 a year earlier. Investors in the sector of council homes, affordable rental homes and homes owned by workplaces completed 2,400 homes, that is 7.1% homes less than a year earlier.

Developers started the construction of 112,600 homes (58%) and self-builders 77,000 homes (39.7%). Housing associations started the construction of 2,000 homes versus 2,300 a year earlier. The number of home starts in the remaining sectors also dropped: from 2,700 to 2,500.

Developers and self-build investors received permits and submitted notifications

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Source: Statistics Poland (GUS)

for the construction of the biggest number of homes: 133,800 and 79,400 respectively.

The combined number of permits and notifications in these segments of the residential building market accounted for 97.8% of all homes in this period, with developers’ share at 61.4% and self-build investors’ share at 36.4%. The number of permits and notifications increased year on year in the hous-

Source: Statistics Poland (GUS)

ing associations sector: from 1,200 to 1,500.

In the remaining segments of the market, the number of permits and notifications dropped by 21.3% to 3,400.

Economy Economic Monitor

Labour market In October 2018, the unemployment rate was at the lowest level in 28 years. The best labour market situation was in Wielkopolskie province.

According to the Ministry of Labour and Social Policy, the number of unemployed people registered with employment offices at the end of October 2018 stood at 938,500 and was lower by 8,900 than at the end of the previous month. Compared to a year earlier, the number of unemployed was lower by 131,000, or 12.3%.

The unemployment rate dropped in 13 provinces. The biggest drops in the number of unemployed were recorded in Wielkopolskie (down 2.3%), Mazowieckie and Świętokrzyskie (2.1% each) and Śląskie (1.9%). The number of unemployed increased in Pomorskie, Warmińsko-Mazurskie and Zachodniopomorskie by 1.8%, 0.7% and 0.9% respectively.

The registered unemployment rate stood in October at 5.7% and remained unchanged from the previous month, but was lower by 0.9 pct. points than a year earlier. The lowest unemployment rate of 3.1% was in Wielkopolskie province while the highest (9.9%) in Warmińsko-Mazurskie.

The number of job offers submitted by employers to employment agencies in October was 128,000 and was higher by 9,400, or 7.9%, than a year earlier. The number of job offers rose in nine provinces, with increases ranging from 3.7% in Małopolskie to 56.4% in Lubuskie. The biggest drop in the number of job offers was in Świętokrzyskie (down 20.7%).

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)

Retail sales Retail sales increased in October compared to the previous month and a year earlier.

In October 2018, retail sales in constant prices were 6.6% higher month on month.

After seasonal adjustments, retail sales were 1.5% higher. In year-on-year terms, retail sales rose 7.8%.

In the group of retailers with a major share in overall retail sales, higher than average year-on-year increases in sales were noted by retailers in the category “other” (up 15.0%);

Source: Statistics Poland (GUS)

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Economy Monitor Economic

retailers selling solid, liquid and gaseous fuels (11.0%); and retailers selling motor vehicles, motorcycles and parts (9.7%).

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 11.7%); textiles, clothing and footwear (11.6%); and furniture, radio and TV equipment and household appliances (7.5%).

In the 10 months to the end of October 2018, retail sales were 6.5% higher than a year earlier versus an increase of 7.2% in January-October 2017.

Foreign trade In the first three quarters of 2018, the value Poland’s trade turnover was higher than a year earlier. The balance of trade was negative.

In the nine months to the end of September 2018, Poland’s overall exports in current prices were worth PLN686.6 billion while imports were worth PLN697.4 billion. Compared to a year earlier, the value of exports was higher by 4.9% and of imports by 7.6%.

As a result, the trade balance was negative at PLN10.8 billion against a surplus of PLN6.1 billion a year earlier.

In US dollar terms, exports were worth USD193.8 billion. The value was higher by 15.4% than a year earlier. Imports were worth USD196.8 billion, up 18.3%. The trade balance was negative at USD3.0 billion against a surplus of USD1.6 billion a year earlier. In euro terms, exports were worth EUR162.0 billion (up 6.0%) and imports EUR164.6 billion (up 8.6%). The deficit was at EUR2.6 billion against a surplus of EUR1.4 billion a year earlier.

Poland had a surplus of PLN135.6 billion (USD38.3 billion, or EUR31.9 billion) in its trade with developed countries. The surplus with the EU countries was worth

PLN139.4 billion USD39.4 billion, or EUR32.9 billion). Poland had a deficit of PLN123.5 billion (USD34.8 billion, or EUR29.1 billion) in its trade with developing countries and a deficit of PLN22.9 billion (USD6.5 billion, or EUR5.4 billion) with Central and Eastern European countries.

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 66.1%, with the EU’s share at 58.9%.

In the nine months to the end of September 2018, Poland’s biggest trade partner was Germany. The country had a 28% share in Polish exports, which represented a rise of 0.6 pct. points compared to a year earlier. Germany’s share in Polish imports dropped by 0.6 pct. points to 22.6%. Poland had a surplus of PLN34.5 billion (USD9.7 billion, or EUR8.1 billion) in its trade with Germany.

Poland’s 10 biggest trade partners had a 66.5% share in its overall exports and 65.3% share in its overall imports.

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

Source: Statistics Poland (GUS)

86 VI ::polish Polish market Market: 12/2018

According to the National Bank of Poland (NBP), in September 2018 Poland’s current account balance was negative at PLN2.3 billion. The current account deficit resulted from a negative balance on the primary income account (PLN8.9 billion) and goods account (PLN1.9 billion) and a surplus on the services account (PLN7.3 billion) and secondary income account (PLN1.2 billion). A year earlier, the current account balance had been positive – at PLN0.1 billion. The combined current and capital account balance was negative in September 2018 at PLN1.2 billion.

Economic Monitor Economy

Official reserve assets (USD billion)

Reserve assets

Source: National Bank of Poland (NBP)

The value of goods exports and imports was respectively PLN76.0 billion and PLN78 billion. The balance of goods trade was negative at PLN1.9 billion. In September 2017, the balance had been positive at PLN1.8 billion.

Services exports and imports were worth respectively PLN20.9 billion and PLN13.5 billion.

The balance on the primary income account was negative at PLN8.9 billion, mainly due to a negative balance of investment income (PLN8.0 billion). The balance of compensation of employees was negative at PLN0.8 billion. Foreign direct investors’ income amounted to PLN6.7 billion. Non-residents’ income from portfolio investment was worth PLN1.9 billion. Yield on other debt instruments shown as other investment was worth PLN0.8 billion.

In September, PLN1.7 billion was transferred to Poland from the European Union, of which PLN1.4 billion was registered on the capital account, with PLN0.7 billion coming from the European Regional Development Fund. PLN0.3 billion was transferred to the current account. Most of Poland’s own contribution due for September was paid to the EU coffers in the previous month. The balance of transfers with the European Union was positive at PLN1.4 billion.

Non-residents’ investment in Poland increased in September by PLN8.5 billion. Direct investment by non-residents grew by PLN3.8 billion. The balance resulted from a surplus on reinvested earnings (PLN3.3 bil-

sified as “other” investment rose by PLN2.7 billion. The obligations of the banking sector increased by PLN1.4 billion. The government sector and the central bank decreased their obligations by respectively PLN2.6 billion (repayment of loans owed to international organisations) and PLN1.0 billion.

The surplus of residents’ investment abroad was at PLN5.0 billion (a rise in assets). Residents’ foreign assets in the form of direct investment increased by PLN3.1 billion (outflow of capital). In portfolio investment, residents increased their foreign assets by PLN1.7 billion. Residents’ liabilities in the form of debt securities rose by PLN2.0 billion.

lion) and a drop in the value of equities and other shares by PLN2.2 billion.

The balance of foreign portfolio investment was positive at PLN2.0 billion. Non-residents invested PLN3.3 billion in bonds issued by the banking sector. They decreased their investment in government bonds by PLN1.2 billion.

At the same time, non-residents’ investment in equities dropped by PLN0.2 billion. Nonresidents’ investment in instruments clas-

This year, the value of Poland’s reserve assets has risen in zloty and euro terms, but dropped in dollar terms.

According to the National Bank of Poland (NBP), at the end of October 2018 Poland’s reserve assets were worth PLN425.6 billion (an equivalent of USD111.4 billion, or EUR98.3 billion). Compared to the end of December 2017, the value of the reserve assets

Source: National Bank of Poland (NBP)

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Economy Monitor Economic

Change in WSE indices in January- October 2018

Source: Warsaw Stock Exchange

was 7.9% higher in zloty terms, 1.6% lower in dollar terms and 3.9% 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 October 2018, they accounted for 95.5% of the total reserves. Monetary gold accounted for 4.5% of the reserves.

Consumer sentiment November 2018 saw an improvement in assessments of households’ current financial situation and the future economic situation of the country.

In November 2018, the composite Current Consumer Confidence Index (BWUK), which describes current trends in individual consumption, was lower by 0.9 pct. points compared to the previous month and stood at 5.2 points.

The readings of three components of the index decreased, with the biggest drop, by 6.9 pct. points, in the assessment of households’ current potential to buy.

In turn, the components describing households’ current financial situation and the future economic situation of the coun-

88 VIII polish :: Polish market Market: 12/2018

try improved by respectively 2.1 and 1.2 pct. points. Compared to November 2017, the reading of BWUK was 0.2 pct. points lower.

The Leading Consumer Confidence Index (WWUK), which describes trends in individual consumption expected in the next months, rose in November 2018 by 2.1 pct. points compared to the previous month and stood at 3.4 points.

WWUK was pushed up by an improvement in assessments of households’ future potential to buy (up 6.7 pct. points), and the country’s future economic and employment situation (increases by respectively 1.2 and 1.1 pct. points). The assessment of households’ future financial situation deteriorated, with a drop in the reading by 0.7 pct. points.

In November 2018, the reading of WWUK was at the same level as a year before.

Capital market in October 2018 The first 10 months of the year brought losses to investors on the Warsaw Stock Exchange.

At the end of October 2018, there were 420 Polish companies with a combined capitalization of PLN554.0 billion and 49 foreign companies with a capitalization of PLN579.2 billion listed on the main market of the War-

saw Stock Exchange (WSE). Six companies debuted on the WSE main market in the first 10 months of the year. One of them was transferred from the NewConnect market.

The value of equities traded on the main market in October 2018 went down by 20% year on year to PLN16.4 billion. The WIG20 blue-chip index and the WIG broad-market index lost respectively 5.8% and 6.2% in October and 12.6% and 13.2% since the beginning of the year.

In the 10 months to the end of October 2018, 13 of the 14 sectoral indices posted losses. WIG-IT was the only index which went up – by 1.3%. The biggest loss was noted by WIG-Chemical (44.8%).

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