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SPECIAL EDITION No. 248/2016 :: www.polishmarket.com.pl
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„The goal of the Foundation is going to be to promote Polish economy...”
dawid
jackiewicz
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Minister of treasury
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POLISH NATIONAL FOUNDATION
FOR 20 YEARS WE HAVE PROMOTED POLAND ACROSS THE WORLD
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POLAND – THAT IS TO SAY NOWHERE” – THESE ARE THE WORDS WHICH A FRENCH SCANDALOUS WRITER, ALFRED JARRY, USES TO BEGIN HIS PLAY “KING UBU” STAGED 120 YEARS AGO IN PARIS. IN A WAY IT WAS TRUE AS IN THOSE TIMES POLAND DID NOT EXIST ON THE MAP OF EUROPE. HOWEVER, THE PLOT, IF WE OMIT THE POLISH SOUNDING NAMES OF THE PROTAGONISTS, HAD LITTLE IN COMMON WITH POLISH HISTORY AND REALITY. HAS ANYTHING CHANGED IN THE PERCEPTION OF OUR COUNTRY BY THE WORLD? Yes. We may say there has been a 100% change. And it is not only in political forecasts, such as the “New York Times Bestselling Book” by George Friedman, “The Next 100 Years. A Forecast for the 21st Century,” according to which Poland is promoted to the role of a regional power and the main ally of the United States. Also, in the mundane forecasts of the World Bank, OECD or the European Commission, we are classified in a small group of countries with a dynamic and sustainable economy and finance, with stable and secure conditions for business development. In a word, be it in the scale of the Central and Eastern Europe or the whole European continent, we are not going to be a problem, but one of the most important driving forces of development. The undisputable success, not only in terms of economy, but also civilisation, of Poland’s systemic transition was commented by our EU partners with the saying that “Poles, without moving from their place, have changed the geographical location of their country from the outskirts of Europe to its very core, all within a quarter of a century.” What has changed in real terms? First of all, the systemic transition has facilitated the geographical reorientation of the economy, joining the group of market economies, the absorption of new technical and quality standards and the creation of export-oriented industry sectors. At a lightning-fast pace, we
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have managed to move from food rationing to becoming a respectful leader in agri-food exports in Europe and the world. Poland is the 4th largest exporter and 10th largest producer of furniture in the world. A complete reset of the Polish shipbuilding industry has become a success, the industry is second biggest in Europe, and fifth in the world. We are a European power in household products, Poland has been chosen as a location for manufacturing sites by almost all leading global companies. It is a similar case with electronic equipment. The IT sector is dynamically developing and we have a few significant niches (e.g. computer games). The positive forecast for this sector seems to be warranted by the fact that most of the Polish start-ups are established in this sector. Equally good forecasts can be observed in the automobile and transport industry. Without any special support from the state, the industry survived the global crisis and baldly introduces the production of new-generation vehicles. Two phenomena have played a key role in the success of Poland’s transition. The first is the opening to foreign investment. The inflow of capital allowed not only to modernise the production sectors mentioned above, but also create new ones, which are crucial today for the overall growth pace of the economy, for example the BSS (Business Support Services) sector. The second phenomenon is undertaking gigantic programmes for the modernisation of infrastructure. They are also important for the European economy. For example: the development of new gas pipelines and connectors is essential for Europe’s energy security. On the other hand, investments in transport infrastructure not only ease access to production areas and the Polish market, but also facilitate the use of the greatest advantage of Poland in recent years, namely, the mobility of the surplus in highly skilled Polish workforce. Today, however, we are facing a new situation, which is a starting point for the government’s ”Plan for Sustainable Development,” also called the Morawiecki Plan. It is a strategy
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not only to maintain, but also accelerate the pace of economic growth, because this is the only warranty to reach the income and social benefit level comparable with the richer EU countries. Although the end goals of the strategy focus around the domestic market and consumption, a key condition for more efficiency in the economy is going to be – according to Deputy Prime Minister and Minister of Economic Development Mateusz Morawiecki – further specialisation and modernisation of exports. Without it, reaching a point of profitable production scale in many domains will not be possible. Therefore, the future is in gaining new partners, new markets, new prospect for co-operation to a large degree outside of Europe, which is already satisfied in many areas, and under the conditions of increasing competition in international markets. This, perhaps, somewhat long disquisition has a clear goal. It is to assure the necessity of additional investment: bringing Poland even closer to the world. At a certain point in the development of Internet services, it seemed that trade or other economic operations were going to be simplified. We would receive an offer, look at pictures, check technical specifications, calculate, enter a computer key and that would be it. However, it did not happen. E-trade did not beat traditional trade at the very start, albeit it has steadily been taking away from it. Nevertheless, millions of people want to check a product in real terms, even though most of them will buy it in an Internet shop because it is cheaper. Some will be charmed by a sales person, some will take into account the manufacturer’s reputation, or place of production or service. We need to look around closely to be able to use it, but also “shout” loudly about what we can give to the world. As soon as the government initiative emerged to start actions within the realms of a new organisation, the Polish National Foundation, we immediately said YES! Our publishing house has been doing that for 20 years. In September 1996, the first issue of the English-language monthly “Polish Market” appeared in the market. English is the basic language for global communication, but when necessary, we have also published French, German, Russian, Chinese, Arab and Hebrew editions. Our goal is to promote the Polish economy, its condition, plans, companies, people, but it is not limited to a narrow economic or financial scope. It is difficult to make friends with an abstract economy of a country that we know little about: who, in terms of goals, governs it, what are the people
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like, what do the scientists and artists create, what are their values and traditions. All this is present in our magazine, and also in other forms of promotion. We have already had a 15-year-long promotion campaign for Polish businesses: the ranking of the Pearls of the Polish Economy, which means the computer-calculated most efficiently managed companies in Poland. However, each year at the Grand Gala of the Pearls at the Royal Castle in Warsaw we also award the Honorary Pearls to the most outstanding personalities and institutions in the domains of science, culture and the promotion of patriotic and social values, whose work, experience, prestige, ethics and personal virtues provide warranty that they can be deemed ambassadors for the best Polish values. This comprehensive approach pays. We had a pleasure to experience it on many occasions. “Polish Market” has accompanied Polish delegations at the ceremonies of joining NATO, pre-accession talks with the European Union, proceedings of the Council of Europe, and the sessions during the Polish Presidency in the EU. We have also been with the Polish mission to Iraq and all the events of the “Polish Years” and “Polish Days” in many countries of Europe. We have been in all the Polish Pavilions at the World EXPO Exhibitions since 1998 and at the COP world climate conferences. We accompany Polish exhibitors at the largest world trade fairs and day-to-day operations of Polish foreign representatives. Are we successful? The fact that we have been in existence for 20 years in a competitive market of promotional and advertising publishers speaks for itself. A collection of various public recommendations and references is merely a pleasant supplement to our satisfaction. By welcoming the new governmental initiative for strengthening the promotion of Poland, we speak from the position of substantial experience. We are pleased with the fact that the choir of voices which spread good and true news about Poland will be enhanced. Because it is important that the initial sentence should be: “Poland – that is to say in Poland.” Krystyna Woźniak-Trzosek Editor-in-Chief President Rynek Polski Publishers Co. Ltd.
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President: Krystyna Woźniak-Trzosek
Writers/Editors: Maciej Proliński, Jan Sosna, Janusz Korzeń, Jerzy Bojanowicz, Janusz Turakiewicz
Vice - Presidents: Błażej Grabowski, Grażyna Jaskuła
Translation: Sylwia Wesołowska-Betkier, BusinessClass
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
Publisher: Oficyna Wydawnicza RYNEK POLSKI Sp. z o.o. (RYNEK POLSKI Publishers Co. Ltd.)
Editor-in-Chief: Krystyna Woźniak-Trzosek Deputy Editor-in-Chief: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl Marcin Haber m.haber@polishmarket.com.pl
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. Unso-licited material will not be returned. The editors reserve the right to edit the material for length and content. The editors accept no responsibility what-soever for the content of advertising material. Reproduction of any material from this magazine requires prior written permission from the Publisher.
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POLISH NATIONAL FOUNDATION
WE WANT TO BE TREATED AS
EQUALLY AS OTHER EUROPEAN COUNTRIES DAWID JACKIEWICZ, Minister of Treasury, talks to “Polish Market”. At the July meeting of the Government we heard that the Government had adopted a resolution to dissolve the Ministry of Treasury. A new schedule for the dissolution of the Ministry by the end of 2016 has been proposed. Then, a new entity will be established. Could you share more details about it? The dissolution of the Ministry is entering the final stage. The necessity for dissolving the Ministry was diagnosed over two years ago. It was then that we realised that the Treasury, as it was at that time, should have been dissolved. It is to be replaced by an entity which will effectively supervise state assets, which has not been the case up to now. The concept of the organisational form of the new entity is likely to be announced in September. PM
Talking to entrepreneurs we have been hearing that Poland is not sufficiently promoted in the world. I understand that the response to the growing expectations of entrepreneurs is the establishment of the Polish National Foundation. The initiative behind the establishment of the Polish National Foundation arises from a strong and still unfulfilled need to exchange knowledge and experience as well as broadly understood co-operation of the biggest state-owned companies in order to improve the image of the Polish economy. The goal of the Foundation is to promote the Polish economy as well as shape a positive PM
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image of the companies that the Treasury holds shares in and the investment of the companies in Poland and abroad. The idea to establish the Polish National Foundation is a consequence of feeling a sense of helplessness or anxiety in relation to many various harmful and unfair judgments of Poles and Poland. Having listened to biased statements or read untrue publications we have concluded that there is a lack of a firm and assertive response to such actions. Everybody who is interested in public matters and international politics can see that Poland is often harmed in such cases. We have a deficit of information about how our country develops, what opportunities for entrepreneurs and investors are created. A dynamic development of the Polish economy may only be possible if we are treated with fairness and honesty. We must see to it that others do not say things about us that are not true. We want to be treated as equally as other European countries are treated. Who is going to supervise the Polish National Foundation? The Board of the Foundation is to be the Supervisory Body of it, it is to be elected and appointed by its Council. The Council is to be comprised of representatives indicated by the companies that are its founders.
PM
The Polish National Foundation is to combine effectiveness, strength to promote Poland and corporate social responsibility. During her press conference, Prime Minister Beata Szydło said: “We are a country that has great ambitions, we want to conquer the world and markets.” What particular issues could the Foundation help promote so that the world can hear our voice? The combined potential of Polish businesses creates a huge opportunity for an ambitious plan to remove a lot of untrue and unfair myths about Poland and its economy from the international public sphere. For instance a non-ecological “poisoner” of Europe, whereas there are other countries which release more harmful substances to the atmosphere. Or a country that only grudgingly accepts renewable energy sources, albeit it is Poland which has more wind farms than the country which is deemed the “green point” of Europe, Denmark. Or a country that does not fulfil the EU’s energy policy objectives that means becoming independent from raw material imports. Meanwhile, the truth is that in terms of energy security we are one of the leaders in the European Union. All these myths and stereotypes impede business activities of our companies. Only by presenting the reality the image of our country will enhance Poland’s ability to obtain funds for further investments driving the Polish economy. PM
What specific actions will be taken to promote Poland? Will there be meetings with other entrepreneurs? Or advertisements in the foreign media? Or maybe organising Poland days where our culture will be presented? We plan that the Foundation will act both actively and reactively. In the former case, for instance, in terms of organising conferences that show the potential of Poland and how large and valuable human capital and investment potential it possesses. The reactive actions will be necessary, for instance, when spreading unfair information about Poland occurs. In such cases we want to PM
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A DYNAMIC DEVELOPMENT OF THE POLISH ECONOMY MAY ONLY BE POSSIBLE IF WE ARE TREATED WITH FAIRNESS AND HONESTY.
reach the representatives of international press or public opinion leaders abroad and show the truth about our country. We also want to be active with our message at prestigious universities, which is where the attitudes of next generations are formed of those who are going to have actual influence on social, economic and political reality. Here, the Foundation will reinforce and complement activities of various government institutions or diplomatic services of Poland. We are seeking co-operation in this area with, for instance, the Ministry of Foreign Affairs because we are confident that it will facilitate effective worldwide promotion of the largest Polish companies. The managers of state-owned companies signed a letter of intent to establish the Polish National Foundation. Does it mean that only the state-owned companies will be enabled to support the Foundation? Can private companies also join this initiative? There are currently 17 state-owned companies that are taking part in the project. The list of the companies that founded the Foundation comprises four energy groups: PGE, Enea, Energa, Tauron; producers and distributors of natural gas and petroleum: PGNiG, PKN Orlen, Grupa Lotos; insurance and finance companies: PZU, PKO BP, the Warsaw Stock Exchange; as well as Totalizator Sportowy (a lottery company), KGHM, Grupa Azoty, Polska Grupa Zbrojeniowa (Polish Armaments Group), Polska Wytwórnia Papierów Wartościowych (Polish Security Printing Works), Polski Holding Nieruchomości (Polish Property Holdings) and Polskie Koleje Państwowe (Polish State Railways). These are the entities that established the Foundation. However, other companies, not only the remaining state-owned companies, but also private entities or foreign ones acting in all entities, including the private ones, are welcome to co-operate with us. The most important indicator for co-operation is willingness to fulfil the goals of the Polish National Foundation and understanding that the image of Poland and Poles is one of the elements that contribute to the development potential and investment capabilities of our country. I am convinced that all Polish people share the ideas that underpin the Polish National Foundation and feel in their hearts the need to care about how the rest of the world sees us. We must care about the image of our country and our society because no one else is going to do • that for us. PM
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PROMOTION OF POLISH ECONOMY IN THE WORLD Report based on interviews with representatives of the Trade and Investment Promotion Sections
Błażej Grabowski
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he perception of Poland and its economic potential in the world depends most of all on geography. In Western European countries Poland is received overwhelmingly positively. This is because of Poland’s main achievements throughout the last 26 years such as: uninterrupted economic growth, the modernisation of the economy, significant manufacturing capabilities in numerous sectors, substantial growth of Polish exports and the availability of Polish goods on international markets. Poles have been gradually and consequently altering the country’s image as a source of cheap labour doing simple tasks. Poles are now more often than ever doing highly skilled jobs and occupying managerial positions in foreign companies. The features that particularly distinguish Polish employees are diligence, creativity and work quality. In Eastern Europe, Poland is seen as the fastest developing country among all the Eastern European countries which have joined the EU. Poland’s size, economic importance, high-tech and economic co-operation capabilities are often emphasised. The development of tourism, including shopping tourism is also of
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significant importance. Currently, Poland is viewed as a country of economic success, which sometimes evokes a kind of grudge. In North and South Americas, apart from some general information, the knowledge about Poland is limited, with the exception of the people of Polish origin. Poland, in relation to other European countries, in particular France, Italy, the UK, Germany or the Netherlands, is not a subject of any significant interest. At the same time, Polish products are viewed positively and as European products are frequently tantamount to elegance and top design. The recognisability of Poland in Asia is rather low because the perception of Poland is very neutral. Poland is identified as a member of the European Union, which has a positive influence on its image. Although there is a scarcity of clear associations, with the exception of culture, for instance Chopin, and sport, there are no negative stereotypes. In the beginning of the 1990s, there was a significant limitation of investment contacts, however, that co-operation has been remembered, especially by older generations of managers.
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Poland is viewed positively in the Persian Gulf states. During conversations, the Arab partners emphasise economic advantages of our country such as the fact that in recent years Poland has become a European leader in terms of economic growth and changes. Moreover, Poland is becoming another country which is indicated as an opponent of the migration to Europe. We should also remember that the local consumers in the region opt for prestige products. In Africa, Poland is perceived as a very remote country, not only geographically. Despite a Polish diaspora in this region, the knowledge about Poland is slight. On the other hand, a dynamic development of the Polish economy has not been unnoticed. The Polish economy is viewed as one of the greatest successes of transformation. Effective promotion of Poland requires synergy of interrelated elements such as: politics, economy, culture and society. All these together create the right image of Poland, albeit it seems that economy is the most important factor because economic successes are fundamental in shaping a positive image of a country. Poland should be presented as a modern, safe and open country which develops rapidly and has educated citizens. It is also necessary to co-ordinate and consolidate activities and budgets of various entities. Currently, individual regions, cities, economic zones and government institutions often manage promotional activities on their own. The result of these activities is limited. Poland’s promotion should combine the promotion of tourism, culture, history, cuisine and selected sectors of the economy. Without this, products and services offered by particular Polish companies cannot attract the attention of an average consumer. It is extremely important to allocate here guaranteed financial support as well as to strengthen commercial representative offices. We should also bear in mind that nothing can replace personal contacts during lectures, seminars, product presentation or trade fairs. An increasingly significant aspect of promotion is the use of social networking platforms and online promotion. Another important element is also the promotion of science and opportunities to study in Poland. A clear picture arising from the discussions with the Polish diplomatic posts shows that it is important to directly support businesses, because it is often very difficult for them to overcome obstacles related to distance, cultural differences, language, access and operating costs in foreign markets. Only personal contact and direct co-operation can positively influence and strengthen the image of our country as a global player. Strengthening the image of Poland is related to building trust for Polish goods in a particular market. It is worth encouraging Polish companies to participate in trade fairs, economic missions, direct communication and getting to know closer. Another important element are economic missions accompanying official state visits. It is essential that these visits put an emphasis on economic issues. A visit by the Polish business should not be a background element of the event. Quite the contrary, economic issues should become its significant part. This synergy means that both groups contribute to strengthening their positions: a business delegation in terms of contacts with companies, particularly state-owned ones, and an official delegation in terms of meetings at ministries while discussing cooperation development prospects and obstacles that should be removed.However, effective economic missions are only those which are preceded by the analysis of chances of entering into a market and expectations of a potential client. Such events enable us to do market research, understand opportunities, meet potential partners, which helps develop strategies for entering into
POLAND IS IDENTIFIED AS A MEMBER OF THE EUROPEAN UNION, WHICH HAS A POSITIVE INFLUENCE ON ITS IMAGE.
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a market, devising further actions and choosing the most suitable promotion techniques. The highest effectiveness can be observed in the Polish business missions which represent a singular industry. In addition to that, cyclical theme seminars are a perfect opportunity to support exports where entrepreneurs from both countries have a possibility to enhance their international trade contacts and exchange experience. On the contrary, the effectiveness of multi-trade economic missions which are organised without any relation to trade fairs or economic events should be assessed with care. One of the most important forms of promotion for Poland is organising national stands showing the potential of Polish industries. Joint national stands should emphasise the Polish origin of the products. It is also crucial to use the tools available at trade fairs such as: news articles, interviews, continuous online presence and organising accompanying events, for example: shows, seminars, workshops, conferences. Other activities also yield positive results; they are: Polish cuisine days, Polish film or literature weeks, and the Polish year as well as taking advantage of the local businesses which have already been cooperating with Poland to act as ‘ambassadors’ during promotions of the Polish economy. Polish entrepreneurs should pay particular attention to prepare thoroughly for expansion abroad. Products and services aimed at export markets should be supported with proper marketing campaigns and knowledge about all formal requirements of a particular market. We should also remember about cultural differences, which sometimes play a key role in further development of a business relation. These are the areas where Polish companies have often a lot to improve. It is both a challenge and an enormous opportunity for Polish manufacturers and service providers. The current promotional actions should point at a specific export portfolio and co-operation opportunity supported by specific companies; and only such actions arouse interest of foreign companies in contrast to informational presentations of general nature. It is absolutely essential to increase the recognisability of specific companies and products and simultaneously to identify these brands as Polish. However, the manufacturers alone are not always interested in such actions and choose general recognition as a European product. In economic promotion, it is difficult to strengthen the image of Poland as such without presenting real examples of companies and products. On the other hand, in many countries, we have observed the improvement in the perception of Poland as a strong economic partner due to the successful expansion of Polish business. • polish market
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WE ARE COMPETITIVE IN MODERN GOODS PRODUCTION JACEK ROBAK, Ph.D., Minister-Counsellor, Head of the Trade and Investment Promotion Section, Embassy of the Republic of Poland in Berlin
on building a Mercedes engine factory in Jawor. It confirms that we are perceived as a stable, economic partner. What are the methods of promoting Poland in Germany? There are a few different models of promotion. We really care for the image of Poland in Germany to be positive, and for Poland, as a brand, to be well recognised in Germany. We strive to make the information about Poland’s economy adequate and delivered where it is needed. We pave the way for the Germans to decide on innovative and modern investment in Poland. Poland is no longer a country which is competitive in the production of basic goods. Currently, we are very competitive in terms of modern goods, such as car engines. A similar case is with engineering solutions. Aeroplane turbines are designed in Rzeszów. From the companies’ point of view, we focus on helping Polish companies interested in investing in the German market. In terms of exports from Poland, according to the recent results, we beat another record of our sales growth to the German market. There was an increase in exports of 11.5% in 2015, which means a growth of over EUR 5 billion. This growth is larger than our total exports to many other countries in the world. Nevertheless, we should remember that maintaining such a high rate of growth is not possible in the long term. If the growth was 11% annually, in five years we would have been the largest, global exporter to Germany. A spectacular example of successful exports to Germany is PESA, which offers trains that have been certified and are allowed to run on German routes. Polish companies should also be more active at various fairs. A huge success of Poland is the partnership with industrial fairs in Hannover in April 2017. It is a serious challenge, but also a tremendous opportunity because with the help of the promotions at the fairs we are going to promote Poland globally. The Hannover fairs are events popular among companies and • journalist from around the world. PM
What is the perception of Poland as a brand in Germany? The simplest answer is that the perception is good. This applies to the economic development, condition of the economy and economic co-operation. The image of Poland in Germany has changed positively. From Berlin’s perspective, Poland is a very serious economic partner. In terms of the export of goods to the German market, we occupy a high, seventh place. It transforms to continuous investments by German companies in Poland. A good example may be a recent decision by Daimler PM
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AT FIRST, POLISH PRODUCTS SHOULD BE USED BY POLES PROF. MACIEJ CHOROWSKI, Director of the National Centre for Research and Development (NCBR), talks to Ewelina Janczylik-Foryś about the promotion of Poland and Polish National Foundation. For some time now, there has been a lot of discussion about the Poland quality mark or “Good Because It’s Polish.” It is obvious that we need to promote this quality mark of ours in a proper way. Does the NCBR envisage any support for the institutions promoting Poland internationally? The funds which are at our disposal are intended for supporting special projects that aim at creating completely new solutions. We have supported work on what is called vaccine against diabetes and perovskite printing on film technology, which will enable printing out and charging a telephone. These products have a chance to conquer world markets. We may grant support to a breakthrough project that is being developed in Poland, but the company is registered in California. What simply matters is a Polish element. A model of support which we want to implement would be the NCBR, in co-operation with ministries for science and development, recommending the production of specific products for specific markets. Let me give you an example. Currently, we are talking a lot about the development of electro mobility. According to this concept, in a few to a dozen years, Poland becomes one of the leaders in electric vehicles use, both passenger cars and e-buses. Therefore, according to our model, if a decision is made for a specific city to shift its public transport to electric buses, the NCBR could have an agreement with the city authorities that they stipulate to purchase these types of vehicles and the NCBR subsidises their production. Then the NCBR would announce a bidding contest in which consortia or individual producers could participate in. We would check particular companies on every stage of the process. Only the best would be left. Summarising, it means that we begin with generating a market for a product that does not exist yet, then PM
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we finance the product and its development. The benefit for a company is entering a market. The NCBR finances a prototype and related costs, not the whole production process, though. What can we improve in the promotion of Polish products? If we want to convince others that Polish products are good, we have to use them ourselves. The State should endorse purchasing products of Polish technology. And this has been happening more recently, for example: PESA’s modern trams go along Polish cities, and Newag is receiving subsidy for its hybrid locomotive project. Through these means, the public sector supports the creation of innovative, Made-in-Poland products and brands. They should be the “flagships” of our economy and promote Poland in the world; just like the Mercedes is a specific “ambassador of Germany.” PM
In that case, is the creation of the Polish National Foundation a good idea? Already in 2004, when the foundations of the strategy for promoting brand Poland were laid, experts pointed out that we have a lot of institutions which perform uncoordinated actions and in practice each of them does “its own job.” Instead of synergy, we have a communication chaos. One of the most renowned experts in national branding, Simon Anholt, said that most countries have a tendency to act in a manner that can be illustrated by an observation made by crab fishermen. They discovered that once caught and put into a basket, crabs may have be safely left for a day without any supervision, without fear that they will escape. The shellfish could easily get out of the basket, but only if they helped one another, which they do not do. It is • time we stopped copying this model. PM
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SWIMMING WITH SHARKS
POLAND’S BRAND IMAGE
Poland has everything it takes to build a successful international image. Polish brands known worldwide vary from A to Z - our amber is of a top-notch reputation and the same may be said about our Żubrówka (bison grass vodka). How could we all benefit from it and what should be done to enhance our country’s image?
A
ctivities relating to the promotion of Poland in the broad sense may take on two different dimensions. The first is promoting domestic brands and products (including tourist products) as such promotion is necessary to compete effectively in a global economy. Presently the responsibility for brand promotion rests, to a great extent, with brand owners, i.e. enterprises. For many years countries have been developing all kinds of concepts as to how to support domestic companies in internationalisation, assigning appropriate funds for this purpose and creating specialised agencies. According to the recent analysis presented by PwC in the report on export policy co-ordination, as many as 24 Member States out of 28 have specially designated Export Promotion Agencies. Poland plans to join the club even as soon as by the end of this year, according to Deputy Prime Minister Mateusz Morawiecki’s announcements. We need, however, to note the difference between the creation of instruments to promote products and brands and the promotion of their country of origin. Nowadays, it is the promotion of the country that may be the most effective form of state support for entrepreneurs. Recognisability of a given country, combined with its positive image makes it much easier to enter a new market
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and win new contracts. What’s more, the appropriate positioning of the country also makes it more attractive for tourists and in the eyes of potential foreign investors. This is why promoting the country and having a long-term promotion strategy, the funds to implement it, and suitable entities to carry it out is in the national interest of each state which wants to be considered to be one of the leaders among the most developed economies of the world.
Sharks introduction – successful national brand STRATEGIES International strategies of state promotion are nothing exceptional among economically developed countries. These countries have been successfully analysing various positioning instruments and drawing conclusions from their application for many years, converting such instruments into effective promotion strategies. Before, however, any strategy comes to be, we should consider its core objective. In some instances, the objective will be to promote a specific industry e.g. tourism, in others - attracting foreign direct investments (FDI) or promoting a given sector, for example high technologies.
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Among the examples of countries that are successful in their own promotion on the international scene we can include Spain, India and Ireland. In the case of Spain and India, strong emphasis was put on campaigns that promoted the tourism aspect of the economy and on exhibiting its advantages. In the 1970s, Spain tried - at all costs - to catch up with more affluent European economies and was looking for ways to accelerate its economic growth. To this end, the government decided to make use of the Football World Cup organised in 1982 and the ensuing influx of fans from all over the world to present them with a range of tourism services and thus promote the country. One year later, Spain showed the world its logo (designed by the famous Spanish artist, Joan Miró), which is still successfully used on official tourist websites and tourist offices in Spanish embassies, emphasising the continuity of the promotion strategy, also in its visual aspect. The longterm outlook, ambitious goal and very carefully planned activities led Spain to become a very popular tourist destination over the years. This is demonstrated by the World Bank’s data, which shows that in 1995-2014 the number of foreign tourists went up by nearly 90% and reached approx. 65 million people. Another example of effective promotion strategy is India, with its “Incredible India” catchphrase - a strategy started in 2002. The country’s image underwent a considerable change, and emphasis was put primarily on spiritual experience and the beauty of surrounding nature. In 2002-2014 the number of tourists increased more than three times (from the initial 2.4 million people to 7.7 million). Ireland, however, placed the stress mostly on the country’s attractiveness for foreign investors, and the main motive displayed was the investment climate and low business costs. When drawing conclusions from other countries’ spectacular success, we need to analyse the potential of the resources we have at our disposal and select strategic areas in Poland’s promotion in a manner adequate to the importance of such resources. The solutions applied by the countries mentioned earlier proved to be successful, but Poland should consider finding its own path.
POLISH NATIONAL FOUNDATION
DIONIZY SMOLEŃ, Leader of Public Sector Team, PwC
PAWEŁ OLESZCZUK, Senior Expert in Public Sector Team, PwC
Getting to know each other – country brand INDEX All countries make efforts to build their brand globally. One of the tools used to analyse the value of respective countries’ brands is the Country Brand Index, compiled by FutureBrand, which covers the way 75 countries are perceived. The authors of the study state that the respective countries’ image, its strengthening or deterioration, may affect decisions regarding holiday destinations, but also decisions related to permanent residence and place of work or to set up a business. The study showed that the importance of the term “country of origin” is growing among consumers all over the world. Every day, consumers make choices and seek actively for example cars manufactured in a given country or food products from a specific region based on associations with individual countries. According to the authors of the study, those countries polish market
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Country Brand Index 2014 – 2015, FutureBrand
which do not make use of the potential vested in the phrase “made in”, are visibly worse off than their competition. In line with the adopted criteria, out of 75 analysed countries only 22 were defined as “country brands”. The basic criterion in deciding whether a given country is a brand was its general perception in 6 categories, split into two groups: quality of life, system of values and business potential (group 1), and culture and history as well as “made in” – a category assessing the potential of brands associated with a given country (group 2). To be identified as a “country brand”, it was necessary to have a more than average score in both groups. The first five places went to: Japan, Switzerland, Germany, Sweden, Canada and Norway. Poland ranked 45th. An interesting conclusion from this study is that the strength of a given country’s brand is strictly tied to the strength of commercial brands originating from that country. This explains the high ranking of Japan or Germany, and shows that when working in a consistent manner towards building a given country’s brand, we should not lose sight of the importance of specific products’ brands as elements which also affect the construction of a country’s image. In the case of Poland, we can already boast companies that successfully build their position on a global market. By doing so, those companies contribute to the creation of the general image of Poland as a place where e.g. high quality food, cosmetic products or clothes are manufactured. Moreover, Polish companies have already gained some recognition in various rankings or competitions. Such initiatives, both international and domestic, for instance “Polish Company – an International Champion” organized by PwC, help to boost the image of Polish companies and thus boost our country brand.
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Poland – a new fish in the SEA If we analyse Poland’s international standing, its resources, strengths and weaknesses, it seems that the main axis of Poland’s promotion should focus on the economy. At the same time the notion of comprehensive business promotion should be understood as promoting the country both in the internal (attracting investors and tourists to Poland) and external (promotion of national economy abroad) aspects. Business promotion may be carried out at many levels: promotion of the country’s brand, general business promotion, promotion to attract FDIs, promotion of products and services, tourist promotion, promotion of scientific and technological achievements. The strategic selection of promotion areas and the set-up of relations between the respective areas should depend on the outcome of the analysis of their impact on, and advantages for the economy. It is worth adding that when creating Poland’s global brand and deciding to promote it in a consistent manner, we should take a long-term perspective and not expect immediate results. This is because the results of investments in, among others, marketing activities and decisions to promote and support entrepreneurs, are spread over time. Look at the Korea Trade Investment and Promotion Agency (KOTRA), whose activities brought the most spectacular results after over 30 years, in the form of a trade surplus.
Surrounded by sharks, become ONE! Poland has outstanding resources and thus a solid basis to build the national brand globally. In this context, we can mention impressive Polish
achievements, scientific and technological successes, Polish companies as successful competitors on foreign markets or Polish tourist attractions known worldwide. One of the key issues - next to the development of a promotion strategy - should also be the development of a uniform visualisation to be promoted and used everywhere by national, but also regional institutions. This would contribute to the creation of a cohesive vision of Poland both for tourists and for foreign investors or importers. We could use the consistent promotion of Spain or Germany’s brand as a model. We should seek opportunities to build a strong brand for our country not only in the promotion of exports or in Poland’s tourist strengths, but also more broadly, for example among sport or cultural events. It would suffice to make use of such opportunities as the organisation of international sporting events, which Poland (owing to its successively developing sport infrastructure) hosts more and more often, or international exhibitions and competitions (among them, the Chopin Competition, which is well-known worldwide). It will be a natural challenge to co-ordinate the efforts of government institutions, all levels of local government, non-governmental organisations and other entities. Even though their activities often pertain to different fields, taken all together they affect how Poland is perceived in its entirety. These efforts, if focused around a single brand and based on shared elements of visualisation, have a huge chance of success. Poland has a huge potential which now could be compared to a great orchestra still waiting for a conductor. This role of a conductor should fall to a clearly defined and consistently implemented vision of how to promote brand Poland. •
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THE WORLD IS BEGINNING TO LOOK LIKE A CATWALK
RYSZARD ŻÓŁTANIECKI, Collegium Civitas, former IAM President, former Polish Ambassador to Greece and Cyprus, talks to Marcin Haber. Judging by your experience, what has the promotion of Poland in the world looked like up to now? A more and more important element of the standing of particular countries is their image. It is not only economy, military power, or administration, but specifically their image. It is often the case that the image plays a more important role than firm diplomacy; we call it “soft power.” The world is beginning to look like a giant catwalk for models, where particular countries are trying to show their best side. Let us look at an example which is close to us, two completely different countries: Russia and Ukraine. The West knows about Ukraine what Russia tells them. Ukraine is a country completely devoid of the “soft power.” We, Poles, and people living nearby, know what Ukraine is, but an average Italian or French has no idea. The image relates directly to political alliances and economy. We are more likely to work with those that we like and those that can show their best side. In terms of an image, there are two important elements. They are a statement which we project, and reception of the statement. And this is where the Polish problem is. We are particularly sensitive to what others say about us. The promotion of Poland existed even in the communist times. Sometimes it was not as bad as it might seem. There were a few elements that acted as advantages. First of all, it was the fact that communism in Poland, besides a short Stalinist period, was never so tight, consequent and brutal as in other Soviet bloc countries. The opinion about Poland was always somewhat different from the communist countries. Cultural figures did a tremendous job to help improve our image. In the 1960s, Europe was amased about how sophisticated art -theatre, films, music- could exist under Soviet control. In 1990, when we started building a new image policy, we agreed that culture is the very best thing we have. Even if we deal with purely economic events, PM
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such as EXPO exhibitions, a main element of our pavilions is aesthetics. I hope that soon we will boast of successes related to high technology. We are dealing with a very interesting phenomenon as very young Poles, often middle and high school students, keep winning the most prestigious international competitions. These are IT and robotics competition. Yet, we are unable to take advantage of it. The only thing which happens to these young people is that they come back to Poland with medals and are invited to breakfast television. And then we use Chopin for promotion, again… Please note these two examples: French and German. The French made the whole world believe that Beaujolais nouveau is something so extremely important and attractive. Yet, it is a wine which is undrinkable. People started associating this wine with something sophisticated and French culture. The Germans were able to replace the word “German” with “Nazi.” Today, it is politically incorrect to talk about “German war crimes,” and we say “Nazi war crimes,” whereas anyone could be a Nazi. PM
Can Poland learn anything from these examples? You mentioned Chopin… and here lies a danger. I will give you a parallel example to picture the problem. The Republic of Italy does not have a good reputation. There are many factors involved, but recently, only Berlusconi alone would do. There is an exhibition of Michelangelo’s sketches accompanied by a performance by outstanding representatives of Italian music, and all this is organised by the Italian Institute at the Royal Castle in Warsaw, and Wawel in Cracow. You are going to the exhibition. Would you change your opinion about Italy after you saw the exhibition? PM
Rather not Exactly, and that is the problem: outstanding artists become autotomized. While listening to Mozart, you do not think about Austria, the same is with Chopin and Poland. It is important that the promotional statement is comprehensible and formed in a language which is acceptable for the recipient. It has to be clear enough so that it is absorbed by a recipient, but also original enough to make him or her interested, it has to be something new. Unfortunately, our culture is to a large degree exceptional and incomprehensible for others. Fredro is an outstanding playwright, his poetry is gorgeous… PM
…but it is too strongly related to our local reality. Try to stage “The Revenge” in Paris, and they will run away screaming. Let us translate “Pan Tadeusz” (“Sir Thaddeus”) into prose, let us tell the story, and it is banal. All this refers too directly to our unique features or is contaminated with history which is falsified due to the 19th century. One of my students wrote a very good paper on international views of President Lech Kaczyński. There is one main conclusion of the paper, namely that Kaczyński’s views were full of interesting initiatives and ideas, but they were formed in a language that was incomprehensible for the West. We refer to things that are incomprehensible too frequently. PM
What is your opinion on the creation of the Polish National Foundation? The foundation is undoubtedly a great opportunity. I hope it will not become yet another entity which disintegrates the promotion of Poland. Please remember that there are also the PAIiIZ and the Polish Tourist Organisation. I am wondering if those bodies will comply with the directive of the foundation. An important element of shaping an image is ambition, you need to really, really want it. • PM
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POLAND
GOOD INVESTMENT CLIMATE ON SOLID FOUNDATIONS BARTŁOMIEJ PAWLAK, Acting President of the Board of the Polish Information and Foreign Investment Agency, talks to "Polish Market".
The Polish Information and Foreign Investment Agency (PAIiIZ) is working on 187 projects worth EUR 3.8 billion in total which may create as many as 43,317 new jobs. Who is the largest investor? For quite some time investors from the United States have been leaders in the portfolio of investment projects supported by the Polish Information and Foreign Investment Agency (PAIiIZ). Presently, American companies are PM
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working on the implementation of as many as 50 investment projects in Poland which may provide jobs for more than 10,000 people. Their total value is EUR 610,000. Germany is second on the list with 24 projects. However, in capital terms, German companies are prepared to invest in Poland more money than others. The scale of their potential exposure may exceed EUR1 billion. We encourage other countries to take up the challenge, but we do not expect to see changes in
the top two in the near future. However, there are movements among those occupying places close to the podium. This tells us more about the trends in our portfolio. We see a clear upsurge of interest among the Swiss who currently occupy spot number three in terms of the number of projects. They have 12 on-going investment projects worth nearly EUR 95 million. By comparison, last year the Swiss were in the thirteenth place with just 3 projects.
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Until recently, tax breaks used to be an incentive for investors. What is the current situation? What is our advantage over other countries? Why investors decide to choose Poland? Poland continues to offer a wide range of investment incentives. Tax breaks are just one of them. We should add that in the case of access to incentives the nationality of capital is irrelevant. They are available on equal terms to foreign and Polish investors. However, using “hard” instruments is not all. The example of Switzerland clearly shows that the opinion about the country and its investment climate is an important factor attracting investors to Poland. It also demonstrates how this assessment translates into investment activity. In a survey entitled Investment Climate carried out by us last year in co-operation with Grant Thornton and HSBC, the Swiss gave us the highest scores among all the surveyed businesses investing in Poland. In this particular case, it turned into actual projects very quickly. Poland also scored high among investors from other countries and for this reason it maintains its leading position in Central and Eastern Europe and a high position in Europe. Recently the German AHK chamber asked investors whether they would invest in Poland again. As many as 95% said “yes.” No other country in the region has been given such positive reviews. This is a high quality certificate given to Poland by foreign partners. We have been working for this result for many years. Today, Poland is a reliable and economically stable business partner guaranteeing safe investing. After all, “calm waters” is what investors like best. We built our good investment climate on solid foundations in the form of a unique combination of factors, which sets Poland apart from its neighbours. Our country occupies the best location in the entire region – in the very centre of the continent, between the European Union to the west and the Commonwealth of Independent States to the east. Poland is also situated on the European North-South route. This “being in between” is particularly important to investors from outside Europe. This advantage has been growing in importance in view of the improvement of the road infrastructure noted by investors. Companies surveyed by the PAIiIZ concluded that transport conditions were the factor showing the biggest improvement in Poland in recent years. Apart from location, we also have a large internal market, which not only manufactures goods and generates services but offers a huge customer base of Polish citizens. However, people and their qualifications and a specific approach to work highly valued by foreign companies are our ace in the hole. We are laborious and loyal, but above all have excellent technicians, IT specialists, engineers, financiers or physicians. They determine the nature of the investments coming to Poland which are increasingly ambitious. Simple processes are no longer Polish speciality. Our neighbours do not offer such a combination of traits and this makes us unique. PM
While talking to entrepreneurs we often hear that brand Poland does not exist in the world. What are the Agency’s plans regarding the promotion of Poland, its economy and entrepreneurs? Brand Poland does exist in the world. Polish brands are doing increasingly well, especially in Europe, but also further from home, in Asia or Africa. It is enough to mention such cosmetics brands as Dr Irena Eris and Inglot. The entire Europe travels in Solaris buses, Ursus is modernising African agriculture and Wiedźmin, known outside of Poland as The Witcher, is played PM
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all over the world. There are also categories of products strongly associated with Poland. First of all, this is food of excellent quality. For instance, in China we are working hard to create the following association: organic food = Poland. However, we would like Polish products to become even better recognisable and identified with our country, and Poland to develop strong national brands such as Ikea in Sweden or Volkswagen and BMW in Germany. Our response is the government’s Plan for Responsible Development, which we are beginning to implement. We are working on a comprehensive programme of selection, development and support of businesses so that a group of national champions – recognisable, strong “made in Polska” brands can be built. We promote not only brands that already exist, but also start-ups. Why not make Zortrax 3D printer or another innovative device designed by a young Polish company a national champions? For this purpose the National Development Fund has been set up. It is tasked with co-ordinating the work of many public institutions co-operating and complementing each other. It should be stressed that the model which we are going to present soon is to take the Polish economy to the next level of development, creating a strong export stimulus, but also attracting the inflow of increasingly technologically advanced foreign investments. Is the “Go Export” programme the result of the establishment of the Export Support Agency announced by the Ministry of Economic Development? The government is developing a range of support programmes for Polish exporters. It is already extensive and it grows systematically. Many of the government’s support programmes are carried out by the Polish Information and Foreign Investment Agency. The Agency offers schemes dedicated to entering specific, usually distant, markets considered difficult and culturally different, where making the first step without “the government’s umbrella” is a challenge. Currently we are running such programmes like Go China or Go Africa. They enjoy considerable popularity among exporters. In addition, in 2015 we launched the Go Arctic pilot programme addressed to countries of the Arctic Council. Businesses responded to this idea very actively indeed. The African project is a good example of the evolution of the programmes. Go Africa began three years ago offering support for exporters to several selected markets in that continent. Today, the scheme extends to the entire Africa. What is more, seeing the growing interest in this direction of expansion, we would like to set up a permanent office of the Agency in Africa. Our immediate plans also include the launch of several “Go-type” programmes, like Go Iran, where after many years of isolation the country of opening to the world, or Go ASEAN and Go India. We are also going to extend the range of pro-export instruments available to Polish companies all over the world. The Agency has and constantly expands programmes especially dedicated to Polish investors interested in developing their activity abroad. We offer them participation in study visits, location consultancy, consult support programmes. We have created for them our own “Investing Abroad” school. PAIiIZ is faced with many challenges, but, above all, by many doors which we would like to open to Polish businesses. The Agency will not be short of work and commitment because we realise that what we do is useful. • PM
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