Polish Market No.2 (281)/2019 by Polish Market

PU B LISHED SIncE 199 6 No. 2 (281) /2019 :: www.polishmarket.com.pl

SportS SponSorShip

“a new industry?”

One Hundred Years of the Złoty Narodowy Bank Polski is commemorating the 100th anniversary of adopting the name “zloty” for the currency of the Republic of Poland with the issue of collector coins.

Collector coins of NBP

www.nbp.pl/coins

ONTENT

6 FROM THE PRESIDENT’S PRESS OFFICE 8 FROM THE GOVERNMENT

24 INDUSTRY 4.0-NEEDS LEADERS WITH NEW COMPETENCIES

INFORMATION CENTRE

9 JAN OLSZEWSKI (1930-2019),

PRIME MINISTER OF POLAND IN THE YEARS 1991- 1992

ECONOMY

27 FIND NEW MARKETS AND RAISE WAGESJANUSZ SZEWCZAK, POLISH ECONOMIC ANALYST, UNIVERSITY TEACHER, WRITER AND COMMENTATOR

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

30 NEW PRAGMATISM A REMEDY FOR NEW

10 RESTORING THE ZLOTY 12 POLISH ECONOMIC EXHIBITION HELP US

SPORTS SPONSORSHIP

TO PICK THE BEST

INDUSTRY

NATIONALISM? - PROF. GRZEGORZ KOŁODKO

34 SPORTS SPONSORSHIP: A NEW INDUSTRY? 38 FUTUROCOIN: TIME FOR F1!

13 WANTED: INNOVATION LEADERS

- JADWIGA EMILEWICZ, MINISTER OF ENTREPRENEURSHIP AND TECHNOLOGY

14 THE RESPONSE TO THE RECORD-

BREAKING LEVEL OF FOREIGN-INVESTMENT

15 POLISH E-PEN FOR EVERYONE 16 INDUSTRY 4.0 A MUST, NOT AN OPTION -

ANDRZEJ SOLDATY, LEADER OF THE FUTURE INDUSTRY PLATFORM PROJECT AT THE MINISTRY OF ENTREPRENEURSHIP AND TECHNOLOGY

19 A REVOLUTION IN BUSINESS 22 READY FOR INNOVATIVE CHANGES?

INVESTMENT

44 INVESTORS’ OPTIMISM MAY BE CHILLED

46 THE WARSAW OFFICE MARKET 47 PRUSZKÓW FROM INDUSTRY TO

BUSINESS - PAWEŁ MAKUCH, PRUSZKÓW MAYOR

50 WELCONOMY A PLACE WHERE NEW

IDEAS ARE FORGED- JACEK JANISZEWSKI, PRESIDENT OF THE PROGRAMME COUNCIL OF THE WELCONOMY FORUM IN TORUŃ

51 INVEST IN A UNIQUE PLACE

EDITORIAL

he beginning of a year always sees us painstakingly dig through an increased amount of information. It is information about what has already happened, such as reports and league tables, and about what is expected to happen: announcements, plans and projections. We need them. From the global perspective, the news we are receiving are quite neutral. The OECD, International Monetary Fund (IMF), World Bank and other authorities on global economic conditions have avoided ominous predictions, but are agreed that we are past the peak of the business cycle. According to the World Bank’s report “Global Economic Prospects. Darkening Skies,” the global economy will be slowing gradually: from a 3% growth rate in 2018 to 2.9% and 2.8% in 2019 and 2020. The developed economies’ segment will slow from 2.2% to 2% in 2019 and 1.6% in 2020. The emerging economies are expected to have a growth rate of 4.2% in 2019, the same as in 2018, and 4.5% in 2020. So no need to panic. However international trade has slowed sharphy and everyone points the finger at Donald Trump’s policy “America First,” which has onstrained the United States’ relations with China, Japan and the European Union through the imposition of protective tariffs, while these relations are vital for global trade. There are many indications that we are in for a quite painstaking process of reconstructing the global economy and on a much broader scale than in strictly economic terms. One should expect, for example, a change in China’s role associated with their new development strategy, growing importance of South-East Asia as the world’s new factory, the protection of the technological potential of the United States and the European Union, and Brexit consequences, which are still hard to predict. We have just received a lesson – a positive one, luckily – in disbelieving forecasters. Only

a quarter ago no serious forecasting centre expected Poland’s 2018 GDP growth to be above 5%. But it did. Thanks to analysts of the Polish Economic Institute, we have explained – to ourselves and perhaps our readers, too – why Poland is underappreciated in various analyses. The IMF expects Poland’s economic growth to slow to 3.6% in 2019. The World Bank predicts 4% in 2019. Polish government projections are similar. The figures are not really low considering that those years will be a time of quite difficult restructuring in the Polish economy. We have successfully dealt with a curse of the past 30 years: millions of jobless people. Poles already have jobs. Now, time has come for them to have decent and wellpaid jobs. A strong point of our economy is that the share of the manufacturing sector in Poland is one of the highest in Europe. Time has come to transform it into Polish industry 4.0. In March, we will be celebrating the 20th anniversary of Poland’s entry to NATO. May 1, marks the 15th anniversary of Poland’s entry to the European Union. June 4, 1989 will be the 30th anniversary of the first partly free parliamentary elections in Poland after the Second World War, a development which triggered Poland’s democratic transformation. This year Poland will also have elections to the European Parliament in May and national parliamentary elections in October or November. This means that public debate in Poland will focus not only on key developments from the past but also programmatic and political conclusions drawn from them. As usual, much space in our publishing plan this year is devoted to promoting Polish science and culture. We attach special importance to presenting to international readers the work of our national composer Stanisław Moniuszko on the 200th anniversary of his birth and the art of Stanisław Wyspiański, a playwright, poet, painter, graphic artist, architect and designer, on the 150th anniversary of his birth. Have a pleasant read.

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

2/2019 polish market

64 LET’S HELP THE CHILDREN OF HEROES - MAGDALENA

BUSINESS

52 SMART PRODUCTS ARE EXPENSIVE AND LUXURIOUS -

SŁAWOMIR BRZEZIŃSKI, MANAGING DIRECTOR OF NEMEZIA SP. K. AND OWNER OF THE NEMEZIS COMPANY

PAWLAK, PRESIDENT OF THE DORASTAJ Z NAMI FOUNDATION

66 5TH EUROPEAN CONGRESS OF LOCAL GOVERNMENTS IN KRAKÓW

67 EUROPE – UKRAINE. WHAT'S NEXT?

CULTURE

54 CULTURAL MONITOR 56 A PLACE MARKED BY HISTORY AND VISION 58 A WORLD OF COLOURED TRIANGLES-

FOOD INDUSTRY

68 TRACING THE ORIGIN OF MEAT IS A MUST- JÓZEF

ROBERT WORLD, PAINTER

SKARZYŃSKI, BOARD MEMBER OF THE POLISH ASSOCIATION OF CATTLE BREEDERS AND BEEF PRODUCERS

60 VIVA MONIUSZKO – MACIEJ PROLIŃSKI

71 EKO-MEGA MŁYNY WODNE THE BEST POLISH BAKING TRADITION

EVENTS

61 AWARDS FOR BUSINESS, CHALLENGES FOR BUSINESS

2 (281)/2019

73 JAN MAZUREK, MICHAEL STRÖM ECONOMIC MONITOR

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

Polish Market :: 2 (281) /2019

PRESIDENT: Krystyna Woźniak-Trzosek

SportS SponSorShip

“a new industry?”

Cover: FuturoCoin unveiled as Partner of Aston Martin Red Bull Racing in First Ever F1 Cryptocurrency Sponsorship. Photo source: www.shutterstock.com, www.commons.wikimedia.org unless otherwise stated

CONTRIBUTORS: Agnieszka Turakiewicz

VICE - PRESIDENTS: Błażej Grabowski, Grażyna Jaskuła

GRAPHIC DESIGN: Agnieszka Charuba, Joanna Wiktoria Grabowska

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

SALES: Phone (+48 22) 620 38 34, 654 95 77 Marketing Manager: Magdalena Koprowicz m.koprowicz@polishmarket.com.pl

EDITOR-IN-CHIEF: Krystyna Woźniak-Trzosek

DTP: Lili Projekt www.liliprojekt.pl

DEPUTY EDITORS-IN-CHIEF: Ewelina Janczylik-Foryś redakcja@polishmarket.com.pl

PRINTING: Zakłady Graficzne TAURUS – Roszkowscy Sp. z o. o., www.drukarniataurus.pl

Jerzy Mosoń j.moson@polishmarket.com.pl ENGLISH EDITOR: Rafał Kiepuszewski

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

WRITERS/EDITORS: Jan Sosna, Maciej Proliński, Jerzy Bojanowicz, Jan Mazurek, Andrzej Kazimierski, Janusz Turakiewicz, Janusz Korzeń

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.

PU B LISHED SIncE 199 6 No. 2 (281) /2019 :: www.polishmarket.com.pl

TRANSLATION: Sylwia Wesołowska-Betkier, Agit

PRESIDENT

US TO BOOST MILITARY PRESENCE IN POLAND

olish President Andrzej Duda told a news conference in Warsaw on February 13 that the first binding decisions on boosting the US military presence in Poland should be expected soon. He was speaking following talks with visiting US Vice-President Mike Pence. "I hope that our joint efforts are going to bring results soon. In the near future, planning decisions are first going to be taken in this respect,” he noted. Andrzej Duda added that energy cooperation was one of the topics discussed during the meeting. “We have signed a deal with the United States for liquefied natural gas imports to the Świnoujście terminal, whose capacity is to be increased to over 7 billion cubic meters,” he noted. The talks also concerned the development of a network of gas connectors in this part of Europe and electricity supply security. At a joint news conference, Andrzej Duda and Mike Pence spoke about Polish-US business cooperation. "Poland is developing at a good pace. Its economic results are better than expected by various international agencies, so the situation is very good," said the Polish President. On his part, US Vice-President Mike Pence said that thanks to close PolishUS cooperation, relations between the United States and Poland are stronger than ever. He emphasised that Poland is one of eight allied NATO member states which currently meet

the commitment to spend at least 2% of their GDP on defence. The US Vice-President noted the importance of both countries' economic security and Polish-US dialogue on energy which is to ensure "that neither of our countries, nor any country in Europe, becomes dependent on Russia for its energy needs. Now we look forward to working with you as you

develop other energy sources, including nuclear power," said Mike Pence. Later during the visit, Polish President Andrzej Duda and US Vice-President Mike Pence laid wreaths on February 15 at the Death Wall in the former Nazi death camp of Auschwitz in southern Poland to pay tribute to the victims of the camp.

Polish President Andrzej Duda with wife and US Vice-President Mike Pence with wife

(Sources: president.pl, PAP)

DOING BUSINESS TO INCREASE SECURITY

“

By developing economic ties and doing business together we can build a regional security infrastructure,” President Andrzej Duda said at a meeting in Warsaw with ambassadors representing the member states of the Three Seas initiative and US envoys in those countries. At a meeting on February 18, President Duda said that the Three Seas initiative brings together countries that lie in between the Baltic, Black and Adriatic seas with the aim of strengthening co-operation

6 polish 6 polish market market

on infrastructural and energy projects. "We are all members of the European Union, but we are perfectly aware of the situation in this part of Europe. All the countries that are part of the Three Seas initiative - except for Austria - used to be behind the 'Iron Curtain'. This slowed down our economic and infrastructural development for years," the president observed. In this context, Andrzej Duda called for EU member states to have equal infrastructural standards. "Strengthening security and

cooperation in making use of EU funding is another issue within the initiative," Andrzej Duda said. He stressed the importance of the US administration's interest in the initiative. "By developing economic ties and by doing business together we can also build the sphere and infrastructure of security," the President said. He expressed the hope that the member states will manage to establish a Three Seas fund to finance vital key regional infrastructural projects.

PRESIDENT

“IMPRESSIVE MACROECONOMIC DATA”

“

Poland's 2018 macroeconomic data make a huge impression on each investor taking part in the World Economic Forum in Davos,” President Andrzej Duda told the TVP Info news channel on January 25. He explained that at the summit he had held several meetings with major investors, who he encouraged to visit Poland, and presented them with the country's macroeconomic data. "Today, some countries are still struggling with the aftermath of the 2008 crisis, compared with Poland’s 5% GDP growth last year," Andrzej Duda said. “Poland can be perceived as a country which is developing very well,” he said during the opening ceremony of the “Polish House” at the World Economic Forum. The House was envisaged as a promotion centre for politicians and entrepreneurs seeking ties with the Polish economy. "We can stand here with our heads high and speak about a splendidly growing country. We are at the Polish House, set up here in Davos during the World Economic Forum for the first time, a place which represents Poland. If we are to be present in Davos, if we are to show that we are a country which is ambitious, which is growing and is open to investment and economic cooperation, then it is necessary for Poland to be present in this institutionalised form, through a Polish space where you can meet, invite politicians and foreign investors and hold business talks. Such a place is crucial," Andrzej Duda explained. The Polish House in Davos was sponsored by Bank Pekao and PZU insurance company.

POLONIA CONGRESS IN MIAMI

n a message addressed to the participants of the 60 Million Congress - the Global Polonia Congress, which was held in Miami, Florida on February 7, President Andrzej Duda expressed the hope that the event would strengthen Poland's economic cooperation with the United States. According to the Polish president, the congress played a significant role in integrating the Polish diaspora in the United States, strengthening bonds between Poles living in the United States and their compatriots at home and helping them to launch new joint business ventures. "We are united by national heritage, tradition, history and identity, but at

“

POLAND CAN BE PERCEIVED AS A COUNTRY WHICH IS DEVELOPING VERY WELL.”

the same time by common challenges crucial for the modern world," the Polish president stressed. The fourth edition of the Congress was attended by over 200 people, including leading Polish diaspora activists from all over the United States. Among the participants were the presidents of major organisations of the Polish American community, such as the Polish-Slavic Federal Credit Union in New York and the Copernicus Foundation from Chicago. The event was attended by the Polish president’s international relations envoy Senator Anna Maria Anders.

BUILDING BRIDGES WITH BELARUS

olish-Belarusian relations and the situation of the Polish ethnic community in Belarus and Polish Catholic clergymen who work there were discussed at a meeting in Warsaw on February 13 between President Andrzej Duda and the Speaker of the Upper House of the Belarusian Parliament Mikhail Myasnikovich. He arrived in Poland at the invitation of the Speaker of the Polish Senate Stanisław Karczewski. During the President's meeting with Mikhail Myasnikovich, the importance of good-neighbourly relations

between Poland and Belarus for security and stability in the region was stressed. Prospects for the development of economic cooperation and cultural links were also discussed. Andrzej Duda and Mikhail Myasnikovich said they were hopeful that existing disputes between Poland and Belarus can be resolved in the near future and that economic cooperation can be further intensified.

FACES OF POLAND, FACES OF POLES

resident Andrzej Duda and First Lady Agata Kornhauser-Duda took part in the opening ceremony at the Presidential Palace in Warsaw on February 20 of an exhibition of Polish paintings, entitled “Faces of Poland, Faces of Poles.” On show are works by such renowned artists as Jacek Malczewski, Leon Wyczółkowski and contemporary painters Wiesław Szamborski and Romuald Oramus. The exhibition presents several generations of Polish people through portraits from the 18th century to the present day. There are paintings showing famous Polish leaders and artists, as well as portraits of ordinary citizens. "Each of the portraits tells a different story, but it is also part of a bigger picture depicting the Polish nation,” President Duda said. 2/2019 polish market

PRIME MINISTER PRESIDENT

“TO HELP REFUGEES IN SITU”

conference devoted to peace and security in the Middle East was held in Warsaw on February 14. It was attended by senior officials from 60 countries, including US Foreign Secretary Mike Pompeo. Addressing the opening of the conference, Polish Prime Minister Mateusz Morawiecki said: “I hope that this conference will contribute to peace and security in the Middle East. I was humbled during my visit to the region last year. This experience, especially my meetings with refugees from Syria, Iraq, Yemen and other places, gave me food for thought. Helping these people in situ is one of the biggest obligations of our international community. We must help them in a way that brings long-term results, is sustainable and most effective. We need to support frontline countries such as Turkey and Lebanon in terms of humanitarian assistance for refugees. But we must ensure that people are not forced to flee their homes in the first place.”

STRATEGIC INVESTMENT PROJECTS: ENERGY AND SCIENCE

he Polish cabinet has adopted a bill on energy security, which will enable the implementation of government policies in the oil sector. Another bill adopted by cabinet concerns support for research and development work and its commercialisation. To this end, the Polish Science Fund is to be set up. “Polish energy security is crucial, therefore we are introducing legislation on the drafting and implementation of strategic investment projects in the oil industry,” Prime Minister Mateusz Morawiecki told a news conference in Warsaw on January 29. He stressed that such investments are key for energy security, which is now just as important as military security, thus new solutions should be sought. The government is committed to drafting a legal framework for the diversification of energy supplies. The current piece of legislation will not just streamline the legislative and investment

8 polish market

“

I HOPE THAT THIS CONFERENCE WILL CONTRIBUTE TO PEACE AND SECURITY IN THE MIDDLE EAST.”

process but will also provide for adequate compensation for citizens whose land will need to be acquired by the state to implement such investment projects,” Mateusz Morawiecki said. Commenting on plans to set up the Polish Science Fund, the Prime Minister said: “Poland stands a good chance of winning foreign markets, but it needs to have first-rate science. R&D is a component Poland badly needs to develop its economy. The Fund will finance research and development, acting as a virtual research centre. That’s one of the ways of boosting the commercialisation level of innovative ideas which should lead to competitive products. Polish science can and should be one of the driving forces of the country’s development,” Mateusz Morawiecki noted.

REINVENTING RAIL TRANSPORT

rime Minister Mateusz Morawiecki took part in the inauguration of the first Rail Development Congress in

Warsaw on January 23, during which policy-makers, public opinion leaders and representatives of public organisations discussed key topics concerning the further development of the rail network in Poland. Issues related to investments, ecology, innovation and budget were raised. Prime Minister Morawiecki told the congress that the aim of his government’s strategy is to ensure good transport and logistical links between individual regions on a national, regional and local scale. “There are places in Poland which are particularly excluded, without car or railway transport,” said the Prime Minister, indicating that so far, about 200 km of railway lines have been reconstructed and these are important links outside the main transport corridors. “The railway development strategy is a strategy for the whole of Poland, serving the Polish economy, and above all serving Polish society. Within 10–12 years, we will spend about PLN 100 billion on investments, including from EU funds,” said Mateusz Morawiecki.

PRIMEPRESIDENT MINISTER

JAN OLSZEWSKI (1930-2019) PRIME MINISTER OF POLAND IN THE YEARS 1991- 1992

“

Jan Olszewski is for me the personification of independence and struggles for the greatest value for Poland and for Poles, which is independence,“ Prime Minister Mateusz Morawiecki said at a funeral mass in honour of the late Polish Prime Minister. The mass, held at Warsaw's St. John the Baptist cathedral on February 16, was celebrated by the senior bishop of the Drohiczyn diocese Antoni Pacyfik Dydycz. Polish President Andrzej Duda, accompanied by the First Lady, Prime Minister Mateusz Morawiecki together with the cabinet, Speaker of Parliament Marek Kuchciński, Speaker of the Senate Stanisław Karczewski and other key state figures took part in the funeral ceremony. A day ealier,the coffin containing the remains of former Prime Minister Jan Olszewski had been displayed at the Prime Minister’s Office in Warsaw for the people of Poland to pay their final respects. “Jan Olszewski was not just a witness, but also someone who shaped Polish history. Looking at the 100 years of Poland reborn after 1918, he was certainly one of the most important figures in the country's history,” President Andrzej Duda said during the funeral mass in the Warsaw cathedral for the former Prime Minister who had died on February 7. Andrzej Duda described Jan Olszewski as "a truly non-communist prime minister of a truly non-communist government," adding that "a free, sovereign and independent Poland" was his aspiration and the essence of his life. “Along with President Lech Kaczyński, Prime Minister Jan Olszewski is one of those people whose vision of Poland we are implementing today, trying to make it the way they saw it: a great, proud Poland, but above all, a Poland of solidarity, solidarity between ordinary people,” the President said. After the first funeral mass at St. Alexander’s church on the previous day, celebrated

by Father Michał Janocha, auxiliary bishop of the Warsaw Archdiocese, a funeral procession got underway in the evening with the body of the late Prime Minister Jan Olszewski being transported to the Sanctuary of Our Lady of Grace. It was accompanied by a cavalry unit and a military orchestra, as well as thousands of ordinary Polish citizens. “Mr. Prime Minister. We promise to carry your dream of a great, strong and independent Poland into the future. In reply to your question: ‘Whose Poland is it going to be?’ we answer: a Poland of all its citizens, all citizens of the Republic. This is our biggest commitment and our goal,” said Prime Minister Mateusz Morawiecki, as he bid farewell to Jan Olszewski on February 16. Participants in the funeral march then passed in front of the Monument to the Warsaw Uprising, where a group of veterans and anti-communist opposition activists paid tribute to Jan Olszewski. The final stage of the funeral ceremonies took place at the Powązki Military Cemetery in Warsaw. Jan Olszewski served as Prime Minister in the years 1991-1992. He was a Member of Parliament of the first, third and fourth term. He was decorated with the Order of the White Eagle, Poland's highest state distinction. During the second world war, he was a resistance fighter and a participant

of the Warsaw Uprising of 1944 against the Nazi occupation. He was considered one of the most talented Polish lawyers who appeared in political trials. Under communist rule, in the 1960s, Jan Olszewski defended dissidents Jacek Kuroń, Adam Michnik, Karol Modzelewski, Jan Nepomucen Miller and Janusz Szpotański during their political trials. For a time he was forbidden to practise his profession, after he stood in defence of students arrested during antigovernment street protests of 1968. In the second half of the 1970s, Jan Olszewski became a co-founder of the Polish Independence Alliance and the Workers' Defence Committee. In the 1980s, he served as an adviser to the National Coordination Commission of the independent Solidarity trade union. He was part of a team that compiled the movement’s first statute. After the imposition of martial law by the communists in 1981, he defended opposition actvists, such as Zbigniew Romaszewski, in political trials. He also acted as an auxiliary prosecutor in the trial of those responsible for the murder by the communist security police of Solidarity priest Father Jerzy Popiełuszko. At the end of the 1980s, Jan Olszewski cofounded the Citizens' Committee attached to the Solidarity leader Lech Wałęsa. He participated in Round Table talks between the opposition and the communists as an expert in law and legal reform. In a free Poland, at the end of 1991, Parliament appointed Jan Olszewski as prime minister. A year later, he lost his position in a majority no confidence vote. Government economic policies and the implementation of a resolution on the vetting of public officials to weed out former communist security police agents and informers lay at the centre of the controversy. Among the opponents of the prime minister was the then president Lech Wałęsa. •

2/2019 polish market

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

RESTORING

THE ZLOTY

“

THE POLISH ZLOTY WAS A SIGN OF AMBITION AND SUCCESS OF A STATE COMING AGAIN INTO EXISTENCE.”

When taking the decision about the name for the Polish currency in 1919, the Polish Parliament restored one of the symbols of Polish statehood. Although the zloty had been simply a unit of account for centuries, since the time of King Stanisław August Poniatowski in the second half of the 18th century it provided reputational support to the effort of rebuilding the position of the Republic of Poland as an independent state. The banknotes issued during the Kościuszko Uprising (1794) and banknotes and coins from the time of the November Uprising (1830-1831) had symbolic value. They were something more than just patriotic mementoes. They were a reflection of national ambitions and the strength of the idea of restoring the Polish state. 10 polish market

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

n the period between two world wars and after the Second World War Polish banknotes and coins were designed by outstanding artists: Józef Mehoffer, Wacław Borowski, Julian Pałka, Henryk Tomaszewski, Andrzej Heidrich, Edward Wittig, Stanisław Szukalski, Józef Gosławski and Jerzy Jarnuszkiewicz. With the rebirth of the Polish state, it became necessary to establish a single currency across all parts of the Republic. This question was the topic of an animated discussion. Among the names proposed for the currency were piast, pol and sarmata. The decree issued by Chief of State Józef Piłsudski on February 5, 1919 stated that the new Polish currency was to be called lech. But the decrees of the chief of state required parliamentary approval. The parliament, exercising its powers and following centuries-long tradition, gave the Polish currency the name zloty.

“

history (the coronation of Bolesław Chrobry and adoption of the 3rd May Constitution). An anniversary of regaining independence was commemorated with a coin depicting Nike. The reverse of the coin commemorating the departure of the Polish Legions from Kraków contains the badge of the Polish Riflemen’s Association. The Polish zloty was a sign of ambition and success of a state coming again into existence. It preserved its value until the end of the Second Republic of Poland, being proof of successful reforms, the effective rebuilding of the economy and, above all, the real unification of Polish lands. Today, the issuer of the zloty is the Narodowy Bank Polski (NBP), which under the Polish Constitution has the exclusive right to issue the Polish currency. The NBP is responsible for the value of the Polish currency and performs three basic functions: as an issuing bank, bank of banks and

ENSURING THE STABILITY OF THE FINANCIAL SYSTEM IS AN IMPORTANT GOAL OF THE NBP. AS PART OF ITS SUPERVISORY AND REGULATORY FUNCTIONS, THE NBP IS RESPONSIBLE FOR THE LIQUIDITY, EFFICIENCY AND SECURITY OF THE FINANCIAL SYSTEM. ”

Owing to Poland’s difficult economic and political situation in the first years of independence, the decision to introduce the new currency was put on hold. Successive governments focused on defending the country’s independence, organising its armed forces and administration, and rebuilding the country from war damage. In the transition period, the role of issuing bank was performed by Polska Krajowa Kasa Pożyczkowa. However, the printing of new zloty banknotes, with the date February 28, 1919 on them, was immediately ordered in France and Britain. The Bank of Poland, still non-existent at the time, was indicated on these notes as the issuer. The years 1919-1923 were a period of preparations for minting coins and organising the state mint. Test issues of coins designed by Władysław Wasiewicz and Konstanty Laszczka were carried out in 1922-1923. In 1923, the Ministry of the Treasury and the Ministry of Religious Affairs and Education ran a contest for designs for 1-grosz coins and 1-zloty coins. The winners were Wojciech Jastrzębowski and Tadeusz Breyer. The authorities of the reborn Poland pursued a very consistent propaganda policy by putting on coins and banknotes depictions of historical figures symbolising the independence struggle (Tadeusz Kościuszko, Józef Poniatowski, Emilia Plater and Józef Piłsudski) and important events in Polish

central bank. Its main responsibility is to maintain a stable level of prices. According to the monetary policy strategy adopted by the Monetary Policy Council, the NBP’s objective is to keep inflation at 2.5% with a permitted deviation of +/- 1 pct. point. The bank is responsible for the stability of the Polish currency. In fulfilling this constitutional obligation, the bank works out and pursues its monetary policy strategy and annual monetary policy guidelines. Through the management of currency reserves, the NBP ensures an appropriate level of financial security for the state. By issuing banknotes and coins, it secures liquidity in cash transactions. Ensuring the stability of the financial system is an important goal of the NBP. As part of its supervisory and regulatory functions, the NBP is responsible for the liquidity, efficiency and security of the financial system. It also contributes to the development of a secure infrastructure for the financial system and takes measures to spread economic knowledge. At present, it may seem to us that the zloty is an obvious element of Europe’s monetary landscape. But let’s remember that history could have taken a different course. In September 2018, the Polish currency zloty was entered into the Polish national list of the UNESCO Memo• ry of the World Programme. 2/2019 polish market

POLAND THE CENTENARY OF REGAINING INDEPENDENCE

HELP US TO PICK THE BEST POLISH ECONOMIC EXHIBITION

The “Polish Market” magazine is proud to announce that it has received an invitation from the Office of the Polish President to join a group of institutions selected to identify the best Polish businesses and their innovative products which contribute to the development of the country’s economy.

jury consisting of representatives of the world of science, media, public institutions and the non-governmental sector, will pick exhibitors whose profiles and achievements will be featured during the Polish Economic Exhibition. To meet the expectations of the President’s Office, we would like to invite our readers to join us in picking the best candidates for exhibitors at the Polish Economic Exhibition, which will then be submitted to the jury. We intend to consider a wide spectrum of companies and industries from all over Poland. The aim of the Polish Economic Exhibition project is to present the history of the Polish economy through the profiles of the most outstanding Polish inventors, their achievements and events which have been the most important for Poland's economic development. A presentation promoting the main event took place in Piłsudskiego Square in central Warsaw between September 28 and October 28. During a one-month-long exhibition, some 100 Polish companies from various industries were

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presented in a pavilion specially designed for this purpose. Among them were 25 companies with an over one-hundredyear-long tradition, to commemorate the 100th anniversary of the regaining of independence by Poland which was celebrated last year. The pavilion also featured multimedia educational zones for children and young people. For adults, a comprehensive digest of information about the history of the Polish economy was prepared. The main exhibition will start at the end of the year. It will consist of five spherical pavilions located on the grounds of the PGE National Stadium in Warsaw. The exhibition, which will last several months, will feature a history zone, an exhibition zone where the achievements of Polish companies will be displayed, an educational zone and a conference area. The undertaking is aimed at encouraging the widest possible range of visitors, in particular children and schoolchildren, as well as families with children, to take a tour around the Exhibition. Scheduled attractions are meant to allow them to expand their knowledge through play and • other exciting activities.

INDUSTRY

WANTED:

INNOVATION LEADERS

JADWIGA EMILEWICZ, Minister of Entrepreneurship and Technology

oland’s development and economic prosperity in the coming years will hinge on the extent to which this country enters the mainstream of the fourth industrial revolution. The revolution is already underway, and only those countries which shift their economies toward technologies associated with Industry 4.0 will count in the global race in the future. From the very beginning, the Polish government's economic policy has been geared toward making Poland a source of new technologies and solutions for Industry 4.0, instead of merely being their consumer. That is why we view economic and social changes taking place on a number of levels during the fourth industrial revolution as an opportunity. And the outlook is good. According to the report "The Rise of Digital Challengers" by McKinsey & Company, thanks to the development of the digital economy sector, Poland may make an unprecedented leap to join the group of the world’s most advanced economies. Significantly, by promoting the use of technologies such as artificial intelligence in the economy of Industry 4.0, we want the resulting benefits to have not just an economic dimension but also a social dimension. What's more, the challenge of our time is to determine in exactly what way technology and society should coexist. We want Polish entrepreneurs to share this vision and create it together with us, because only then will they be able to develop their businesses with confidence to achieve industry 4.0 standards. Like each revolution, the fourth industrial revolution needs, above all, leaders with new pro-innovation competencies. They must combine the ability to grasp the importance of acting for the benefit of society, strategic thinking in the era of constant change, and efficiency in creating lasting and good relations in the work environment. That is why it is so important that all participants in the socio-economic

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WE ARE CONVINCED THAT THE PUBLIC CONSENSUS WILL BUILD A POSITIVE PUBLIC ATTITUDE TOWARDS THE INEVITABLE CHANGES THAT ARE ALREADY TAKING PLACE.”

life: entrepreneurs, academic circles and representatives of civil society institutions, should come together to build Industry 4.0

based on cooperation and trust. In fact, the promotion of the innovation culture begins at the stage of school education, where curricula should introduce students to ways of acquiring pro-innovative competencies. Aware of this, we do not cease in pursuing a dialogue and cooperation involving various circles to achieve a better understanding of the challenges and benefits associated with the Industry of the Future. We are convinced that the public consensus will build a positive public attitude towards the inevitable changes that are already taking place. The Foundation of the Future Industry Platform, which will soon start its activities, is to play the role of an integrator. Its task will be to take part in the building of a climate friendly toward the spread of new technologies in Polish industry. The platform will help entrepreneurs to find out more about industry 4.0 and its solutions. It will also support them in the process of raising the technological and management level of companies. Equally importantly, the Platform will support skills improvement processes, the creation of cooperation mechanisms among market entities and will be involved in building a friendlier legal and regulatory environment. All this is meant to give impetus to the transformation of the Polish industry sector and to support this transformation. The vision of the Future Industry Platform provides for the strategic participation of academic and research centres. Using their modern research infrastructure, they will be able to provide genuine support for the implementation of the idea of Industry 4.0 at the regional level. By creating a network of regional Competence Centres, which will operate under the Platform’s umbrella, it will be possible to reach small and mediumsized enterprises to offer them a knowledge and skills package covering technological and management standards, which are the foundation of a successful transformation toward Industry 4.0. • 2/2019 polish market

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THE RESPONSE TO THE

RECORD-BREAKING

LEVEL OF FOREIGN-INVESTMENT

n 2017 foreign entities invested nearly EUR 13billion in Poland. This is hardly surprising, as Poland occupies top positions in international rankings. However, not all projects equally contribute to our country's development. How can the results be improved? The purpose of the Reliable Partner programme is to identify the top-rank foreign investors with the greatest and most beneficial impact on the Polish economy and society. The authors of the project would like to raise awareness among the public, and particularly the political class, of which foreign investors deserve appreciation and individual attention. “The Act on supporting new investment projects, which enables us to provide favourable tax conditions in the whole of Poland, is to additionally increase Poland's investment appeal and to involve localand regional - government bodies in the discussion on attracting investors. As localand regional - government authorities may designate areas for projects, they are able to offer appealing locations to promising investors. They also need to be aware of the conditions and criteria to be met for investors to be interested in a specific location,” said Minister of Entrepreneurship and Technology Jadwiga Emilewicz during the

conference inaugurating the project Reliable Partner – the Foreign Investors’ Certification Programme. As Minister Jadwiga Emilewicz said, international rankings which rate the attractiveness of foreign direct -investment locations place Poland in high positions, recently the 9th and 5th places. “This means that in the 'economic archipelago' Poland is perceived as an attractive location,” Jadwiga Emilewicz concluded. It should be mentioned that the entity involved in the Reliable Partner project is the Republican Foundation, a social and political think tank responsible for the expert backup and the concept, and the Polish Press Agency, which provides media support. The Agency's headquarters at 6/8 Bracka Street in Warsaw housed a press conference on 12 February to inaugurate the programme. In addition to Minister of Entrepreneurship and Technology Jadwiga Emilewicz, the meeting was attended by Deputy Minister of Finance Leszek Skiba, Director of Communications at Samsung Electronics Polska Olaf Krynicki, Vice- President of the Management Board of Agencja Rozwoju Przemysłu S.A. Andrzej Kensbok, and External Relations and Public Market Vaccines Director at GlaxoSmithKline Krzysztof Kępiński. •

From left: External Relations and Public Market Vaccines Director at GlaxoSmithKline Poland Krzysztof Kępiński, Director of Communications at Samsung Electronics Polska Olaf Krynicki, Undersecretary of State at Ministry of Finance Leszek Skiba, Jadwiga Emilewicz Minister of Entrepreneurship and Technology, Dominik Mazur Vice President of Republic Fundation

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The Reliable Partner 2019 programme has been launched in response to the gigantic scale of foreigninvestment in Poland.

THE COMPONENTS OF THE RELIABLE PARTNER – FOREIGN INVESTORS’ CERTIFICATION PROGRAMME 1) An analysis of the Foreign-Investor Impact Assessment (OWIZ); OWIZ is a proprietary methodology for assessing the impact of foreign investors devised by the Republican Foundation. Investors’ impact is analysed through 21 standardised measures grouped into 4 categories (Economy and Rootedness, Human Capital, Environmental Protection. and Local Community). 2) Presentation in reports dedicated to foreign investors: Foreign investors participating in the project will have an opportunity to be included in the report on the impact of foreign investors on Poland and other host countries. 3) Participation in key political and economic discussions: The companies participating in the project will have a chance to actively participate in debates held during major economic congresses in Poland, i.e. • The European Economic Congress in Katowice • The Economic Forum in Krynica • The European Forum of New Ideas in Sopot • Congress 590 in Rzeszów 4) Communication support: Foreign investors participating in the project will have access to the communication tools provided by the Polish Press Agency.

E-PEN

INDUSTRY

POLISH FOR EVERYONE In 2019, the company celebrates its tenth anniversary. Over the past decade, what originally was a small start-up has been transformed into a thriving company which implements its technology in large organisations and companies owned by the Treasury. It was a great honour for IC Solutions to be presented at the Polish Economic Exhibition.

esearch workers of the Faculty of Mathematics and Computer Science at the Adam Mickiewicz University in Poznań (Department of the Theory of Algorithms and Data Security), Rafał Witkowski D.Sc. (CEO) and Krzysztof Krzywdziński D.Sc., have developed a very practical IC Pen technology for digitising data. Their IC Solutions company is now conquering the world. The motto of IC Solutions' activities is the idea of Invisible Computing, which means designing intuitive and user-friendly solutions. We provide IT solutions which the user is not even aware of while performing certain tasks. High tech can be used by everyone regardless of age, education level and social status. One of such solutions is IC Pen - a system for digitising data - which enables the simultaneous formation of paper versions of documents and their electronic counterparts with the application of digital pens.

INNOVATION

The IC Solutions product is the IC Pen data digitisation system. It allows you to carry out a complete process of collecting data from any form filled in by hand with the use of a digital pen, which is then processed to a selected format (database entry.) Data can be fed into the system as forms filled in with a digital pen, online surveys, and using portable devices (tablets, smartphones,) in particular those equipped with a stylus. The combination of two independent ways of creating documents: writing with a pen on a sheet of paper (IC Pen) and with a stylus on screen (IC Stylus,) is a trail-blazing solution in the area of IC – a biometric data digitisation platform. It is the world’s only solution of its kind which allows the user to select the type of

device (pen or tablet) to be applied. The platform is not tied to any particular type of device, which means that the customer is free to choose from among MS Surface and Wacom devices, as well as various models of digital pens. A key advantage of the IC platform is that it is very easy to use. It is enough to integrate with one system, for instance IC Pen, to be able to use the IC Stylus system, too.

HUGE SAVINGS

The IC Pen system provides a solution to the need for a quick and efficient circulation and digitisation of paper documents. The system saves time because it does away with the scanning stage and entering data into the computer. In a comprehensive way, it deals with the problem of computerising hospitals and introducing Electronic Medical Records. Paper archives become obsolete. Applied in banking, the system offers savings up to 75% in terms of processing and archiving a document. The solution has been implemented on the largest scale by the OSCE (Organisation for Security and Cooperation in Europe,) whose observers use the technology. In Poland, one of the target groups for our technology are health centres, which are obliged to store a digital version of all documents created during treatment under an act of 2011. Thanks to the IC Pen system, reports are automatically generated which allow you to control the use of materials and replenish supplies.

WHO CAN BENEFIT

The first Polish hospitals have already implemented the technology, including the Duchess Anna of Mazovia Clinical Hospital in Warsaw. Digital pens and the IC Pen are primarily applied there to obtain a patient’s written consent for medical procedures. Another target market are companies offering financial services, i.e. banks. A pilot scheme is now underway at the PKO BP bank. The biometric signature is particularly important for financial services. It is electronically collected using a digital pen. The signature can be placed on a document and at the same time stored in the database for future reference, which allows it to be used to automatically verify the customer while authorising transactions or to sign other documents. In the implementation of social policies, our clients are City Family Support Centres and nursing homes. •

This article was compiled as part of a project co-financed from European Funds.

2/2019 polish market

INDUSTRY

Industry 4.0 A MUST, NOT AN OPTION

ANDRZEJ SOLDATY, leader of the Future Industry Platform project at the Ministry of Entrepreneurship and Technology, talks to Ewelina Janczylik-Foryś about the fourth industrial revolution, and the opportunities and threats it faces. We are meeting one month after the adoption by Parliament of the act on the creation of the Future Industry Platform. As the leader of this project, could you first explain what Industry 4.0 is all about? In short, Industry 4.0 can be characterised by a change of paradigms in the area of production and its environment and the resulting consequences of further changes in the business ecosystem. PM

What exactly do you mean by the paradigm? The paradigm is a way of thinking and perceiving reality in a given field. You can compare it to the lens through which we look to understand the phenomena that occur around us. In industry, we are talking about changing patterns and PM

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processes related to production methods, for instance switching from mass production, which is focused on minimising unit costs, to personalised production, with a focus on individual customer needs. It is possible to make the manufacture of personalised products profitable thanks to the use of solutions based on digital technologies in the entire value chain. They make it possible to keep costs at a level similar to mass production costs, while responding to dynamically changing market trends and meeting the requirements of individual customers. What is also changing is the understanding of relations between Man and machines. Until now, people had to learn how to operate machines. Now, machines are learning how to adapt to human needs by responding to communication

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means used by people, for example speech or hand movement. Another very important change is the change from the linear model of value creation to a network model. What does it mean? In the linear model, we dealt with a clearly defined positioning of entities involved in the value creation process. To give you an example, the supplier of materials delivers them to the manufacturer of components, who directs them further to a producer who assembles the product, which is ultimately delivered to the customer. This linear chain is very precisely defined. Contracts are concluded between entities. Within this system, communication takes place between the closest links. However, in the case of a network model, we deal with another system based on a dispersed network of links, in which the core competence of each entity is the essence. These key competencies of companies are combined in different configurations depending on the needs, but in such a way as to provide a given network with a whole set of unique value-creating capabilities. None of the network entities could succeed in operating on the market by themselves. Companies can even collaborate in partnership with their competitors, which we call coopetition.

“

Does the term Industry 4.0 apply only to large companies and corporations? No, it concerns everyone, and in particular it gives SMEs a chance. Especially, the earlier mentioned way of operating within a networked ecosystem offers opportunities to smaller companies. They can strengthen their competencies and become much more competitive on the market thanks to the network. Small firms possess market knowledge gained through collecting information about their products throughout their life cycle. They have know-how which has a market value. They can be recognised as suppliers of this unique knowledge about the product, and not just as contractors for a specific production stage. In the value chain, which is often visualised as the smiling curve, SMEs acting as subcontractors currently generate the least added value in the economy. Their product is not covered by intellectual property rights, and it generates little profit. Now, SMEs do not need to compete with others solely based on low manufacturing costs. By embracing the Industry 4.0 concept to shape their offering, they can use digital technologies and new business models to offer much more value to the market than the physical product itself. Industry 4.0 allows them to find value where there are real benefits. This may be a great opportunity for them, but it can also be a threat. PM

What is the threat? For example, data concerning smart products can give a company a lot of unique information around which it can build its competitive advantage. But if one company can do it, others can quickly copy its way of doing things. So, basically, the winner takes all. PM

THE FOUNDATION WILL SET DIRECTIONS AND COORDINATE THE ACTIVITIES OF VARIOUS PARTNERS AT THE NEXT LEVELS OF ADVANCEMENT OF THE DIGITAL TRANSFORMATION."

So the development of new technologies, digitalisation and Industry 4.0. are necessary for Poland to move away from the assembly plant model? Exactly. That is why we want SMEs to join global industry on a higher level through R&D, know-how and human capital. Soon, the current competitive advantages of our economy will start losing value and we must thus create a new competitive edge for Polish enterprises. PM

Speaking of the paradigm shift in relations between Man and machines, and the fact that now the machine learns about humans, I’ve been thinking about all new digital solutions for society, such as extending the functionality of mobile phones or new FinTech solutions, for example accessing a bank account with the use of fingerprints. What we call the fourth industrial revolution is clearly driven both by social and market changes. Society is experiencing lifestyle changes. Market solutions, such as the sharing economy (a model whereby individuals can hire or rent goods belonging to other people) are becoming standard practice in human relations. In industry, such solutions are not so easily introduced due to a degree of conservative thinking, which stems from security concerns. However, the more advanced these solutions are, the easier they are to implement in industry. PM

So does society force industry to introduce these changes? Yes. This can be seen in product personalisation trends. In the 1950s mass production satisfied consumers’ needs. Currently, people are interested in tailor-made products, and this in turn, translates into profit in the paradigm 4.0. The entrepreneur achieves higher profitability, as well as greater aggregate demand for individual products through the use of digital solutions and new business models. PM

According to the Deloitte report "Leadership in the Fourth Industrial Revolution: Faces of Progress," business managers are not convinced they should invest in their employees’ development. Over half of the respondents (55%) pointed to a significant discrepancy between their team’s skills and the requirements of the future. Yet, a quarter of employers still prefers to recruit new employees rather than train and re -train their existing crews? 2/2019 polish market

INDUSTRY

Undoubtedly, people are one of the biggest challenges in industry. I can see both opportunities and threats in this respect. An employee who has performed repetitive activities so far has achieved perfection in this skill. He treats his present state as the final state. The moment the monotonous and repetitive actions are taken over by a robot, the worker must learn to manage the robot. In addition, it is also necessary to further develop the employee’s knowledge and skills, and above all, to instil in him the desire for further self-improvement. It is a mental barrier that is the biggest problem for employers and the entire economy.

“

IT IS NOT ABOUT THE TECHNOLOGIES THEMSELVES, BUT ABOUT THEIR SKILFUL USE IN THE REORGANISATION OF THE COMPANY, WHOSE AIM IS TO MAKE IT QUICKLY RESPOND TO THE CHANGING NEEDS OF INDIVIDUAL CUSTOMERS."

People are afraid that they will be replaced by machines. Is it fear of the unknown? Risks involved in entering Industry 4.0, as well as any other changes within an organisation, make employees afraid. This requires, above all, proper preparation, awareness of the essence of these changes and setting clear goals for transformation. If we do not take up the challenge, we will not develop. PM

One year ago a Deloitte report showed that 86% of respondents believed that their organisation was doing all it could to prepare its crew for Industry 4.0. Currently, this belief is shared by less than half of the respondents (47%)? I’m not surprised by this result because it is normal that the more advanced we are in the transformation, the more we encounter challenges and barriers that we were originally unable to foresee. An equally good example are differences in the results of surveys regarding barriers to the implementation of Industry 4.0 conducted in countries where entrepreneurs are only at the outset of this path, and in advanced countries. In the former, barriers related to financing, adequate qualifications of personnel and awareness are mentioned, while in countries with a significant degree of digital transformation, the barriers are standardisation, the lack of the possibility to implement the idea of Industry

4.0 due to technical organisational conditions, etc. So those who have gone through several stages of transformation, already have this knowledge and experience and perceive obstacles in a completely different context. To them, financing and training of employees is not the biggest problem. It turns out that it is easier to obtain funding for the transformation of the company and to recruit well educated staff, than to eliminate barriers such as scattered data and totally un-standardised infrastructure. It is also often the case that smaller companies, which are initially very afraid of testing Industry 4.0 solutions, manage better than large, technologically advanced companies, because it turns out that they are simply more flexible. So they find it easier to carry out the reorganisation of processes. There seems to be far less enthusiasm for the idea than before. Is it because of a brutal clash with reality? Is it so difficult to introduce new technologies? I don’t know if we can talk about less enthusiasm, rather about confronting realities. This is because the original assumptions may have been based on a misunderstanding of the essence of Industry 4.0. It seems to us that if we own a 3D printer, we have already embraced Industry 4.0. Well, it is not about the technologies themselves, but about their skilful use in the reorganisation of the company, whose aim is to make it quickly respond to the changing needs of individual customers. As the Future Industry Platform project, we participate in the European Factory of the Future programme launched by the European Commission, which defines what the factory of tomorrow is. It is a factory which has switched its processes over to flexible operation and has changed its perception of its role in the business ecosystem using the advantages of digital technologies and key competencies. This does not mean that a Smart Factory should be fully robotic, saturated with new technologies and virtualised, the way we sometimes imagine it. You should always bear it in mind that technology is a tool, and Industry 4.0 is a way of thinking about the role played by the company in markets in the fourth industrial revolution. PM

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Since the concept of Industry 4.0 is often misunderstood, is the Future Industry Platform intended to play an educational role? Are you going to train entrepreneurs in the way new technologies should be introduced? Analysing the path toward advanced industry, the basic step is the awareness level. We must make entrepreneurs aware of why they should get involved in this change. So the first step is awareness. The second step is targeting. There is no single solution for everyone. Industry 4.0 is such a broad concept that an entrepreneur must choose from among a range of solutions to pick what the firm needs the most. The next step is building competencies and recruiting appropriate staff. Thus, the Foundation will set directions and coordinate the activities of various partners at the next lev• els of advancement of the digital transformation. PM

INDUSTRY

A REVOLUTION IN BUSINESS

The 21st century has brought about more than we expected. This is a revolution which has continued for almost two decades now.

he second decade of the 21st century is drawing to an end, a century which nearly all people imagined as a time of revolution, sudden changes and a major leap in the development of technology. These predictions – made in the 1990s and at the beginning of the century – turned out to have been correct and perhaps even underestimated the huge potential of human mind and skills in transforming what humanity had previously achieved. Revolutions allow humanity to thrive. They included harnessing fire, inventing the wheel, and learning how to cast metals. These three areas – energy, transport, and industry – are still developed to this day as part of a single ongoing revolution. There are periods when this transformation accelerates and periods when it slows down. But the 21st century has been a time of smooth development. Among countless changes and improvements, there is a process which has continued since the early years of the century. There is no indication that – now in full swing – it could suddenly come to a halt and find its way to the graveyard of many contemporary revolutions.

INDUSTRY 4.0 – ONE STEP AHEAD As is usually the case with revolutions, one of the most crucial changes of this century was named only several years after it had started. German researchers noticed clear changes

to production and technological processes in the world’s biggest companies in 2011. At that time, Industry 4.0 was already at an advanced stage of development. Some roots of the fourth industrial revolution can also be traced back to Poland. There are companies here which can definitely be called Industry 4.0 pioneers. “It may seem that Industry 4.0 is a product of the last several years, maybe a decade,” says Maciej Socha, Director of the Fence Systems and Corrosion Protection Department at Wiśniowski, one of the largest manufacturers of garage doors, gates, windows, doors, and fences. “In fact, Wiśniowski could boast its own process line and production automation department already in 2003. And without any outside help, we managed to work out an Industry 4.0 standard at that time.” Industry 4.0 is a concept involving the use of automation, data exchange and processing, and manufacturing techniques, leading to the development of a “smart factory”, where individual systems independently take decentralised decisions on production, control its processes, and communicate with each other and with people in real time. Industry 4.0 is a revolution which itself requires constant revolutions. Once integrated with Industry 4.0, businesses have to adjust to its solutions almost continuously. Even if you have fully mastered the fourth industrial revolution, you will not be free of challenges. There is more and more talk about the Internet of Things (IoT) and processes relying on big data are being developed. 2/2019 polish market

INDUSTRY Systems developed during the fourth industrial revolution are not fully autonomous. They require well-qualified supervisors. Industry 4.0 can substitute for people in monotonous and often dangerous or harmful jobs. It enables people to work in better conditions and in more specialised jobs. There are things that only a human can do perfectly. There are areas requiring sensitivity, imagination, and thinking out of the box and they will continue to exist for a long time to come. Perhaps in the future, these qualities will cease to be distinctive human traits, but today, every company needs people, if only for the sake of taking on responsibility.

INDUSTRY 4.0 AND ROBOTISATION – TOGETHER OR SEPARATELY?

MACIEJ SOCHA, Director for Fence Systems and Corrosion Protection at Wiśniowski

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THERE ARE THINGS THAT ONLY MAN CAN DO PERFECTLY. THERE ARE AREAS REQUIRING SENSITIVITY, IMAGINATION AND THINKING OUT OF THE BOX. THEY WILL CONTINUE TO EXIST FOR A LONG TIME TO COME.”

The industrial revolution of the 21st century is not merely a theoretical change and it has not come about for the purpose of scientific disputes. It involves a number of changes which have a real impact on the world’s economies, production processes, and entire societies. What does or can Industry 4.0 lead to? There is a multitude of possibilities. The most important thing, however, is that we are in full control over these changes. The only limitations are our knowledge and intentions.

INDUSTRY 4.0 WORKING AGAINST HUMANITY? Every change brings with it not only hope, but also fears. Automation and robotisation are often perceived as a threat to human work, an attempt to replace man with machines. Although purely theoretically this indeed is the ultimate goal of Industry 4.0, in reality, it is based on completely different assumptions.

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“Industry 4.0 and robotisation emerged as a response to growing requirements set to production and complemented the already existing sphere of production process automation,” says Tomasz Długopolski, Technical Development Director at Wiśniowski, presenting one of the latest automated lines at the company. In the background, automated cranes transport successive components and in a few minutes, another garage door will be assembled. Their work is supervised by one person. Several other people operate the production line. Instead of carrying heavy and long panels, they can focus on tasks that require more precision. “Thanks to this, we are able to use human skills in more demanding processes, not only to carry materials,” Tomasz Długopolski adds. Although they can operate together, Industry 4.0 and robotisation are not interdependent and do not always need

each other. “Industry 4.0 provides automation processes with ‘fuel’: process data, which is generated automatically already at the stage of contact with the customer, is sent to machines via database systems and a number of IT tools. On the other side, we have ‘motors’: machines dedicated for production, with robotised workstations among them. They usually perform precision work, tasks that are highly repeatable, monotonous or harmful to human health,” explains Tomasz Długopolski. As he said this, the cranes had transported more of the long panels – at first glance, they appear to be too heavy to carry even for two men. The introduction of the Industry 4.0 revolution is not always a good solution. “It will not be necessary when, for example, the volume of production of a specific component is very high. Data entered directly into the robot once is enough to sustain the whole production at the given workstation. If we have robotisation, we do not need Industry 4.0,” says Tomasz Długopolski. “Industry 4.0 does not necessarily have to generate data only for robotised

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“

THE ONLY LIMITATIONS ARE OUR KNOWLEDGE AND INTENTIONS. ”

workstations. These may be just machines dedicated for specific production processes, in particular for low-volume production, like laser cutting, for instance. Industry 4.0 only needs to provide them with process data.”

A REVOLUTION NOT FOR EVERYONE… Not everyone can afford changes based on the fourth industrial revolution, not everyone should and not everyone needs them. Industry 4.0 is intended for very specific processes. Mass production of a single product does not require such advanced solutions. Industry 4.0 is intended for production lines where the dimensions of the manufactured products, their types and purpose need to be changed frequently. Industry 4.0 should be seen as an investment. It only makes sense when coupled with high financial outlays for development, machine modernisation, and workforce training. It can be planned as a profitable undertaking only by the largest companies on the market.

…BUT EVERYONE WILL BENEFIT The Industry 4.0 revolution will affect everyone without exception. Even companies which do not use its solutions on a daily basis will have contact with products which required the fourth industrial revolution in order to be manufactured. Although Industry 4.0 will never be fully universal, every sector will be supported by it to some extent. The fourth revolution has an impact on prices and product durability, qualities which matter most to consumers. It is also an opportunity for employees to acquire new competencies and find a more suitable job. The fourth industrial revolution is a chance for more efficient and environmentally neutral production, as well as time and material savings. Work is still underway on building an ideal system for capitalising on the benefits of the changes which have taken place over these two decades. Those who prophesy that

TOMASZ DŁUGOPOLSKI, Director for Technological Development at Wiśniowski human work will lose in importance are mistaken. After the two decades, human work seems to have strengthened its position and, although its character is changing, it will take • a long time for any revolution to end its dominance. 2/2019 polish market

INDUSTRY

READY FOR INNOVATIVE CHANGES? What is modern production? What is Industry 4.0? How can enterprises find their feet in the fourth industrial revolution?

T Mariusz Golec

22â&#x20AC;&#x201A; polish marketâ&#x20AC;&#x160;

hese and many other questions will be answered by representatives of the Polish economy during the Innovative Manufacturing Forum IndustryTech, organized by MMC Polska. The main topic of the spring edition of the Forum will be the role of Man in modern production in Industry 4.0. According to the organisers of the event, the margin of error during human work is about 9%. For machines, the margin is only about 4%. By comparison, when we consider cooperation between humans and machines, we can only expect 0.04% of failure. As it turns out, Industry 4.0 is not just robots and a fully automated enterprise. It is the company's openness toward changes in the production process. Industry 4.0 is a form of collaboration between Man and machine. "Polish Market" have asked representatives of various sectors of the economy for remarks on the inevitable, i.e. the fourth industrial revolution. What they have in common is that they are open toward the coming changes and aware that these changes are necessary.

MARIUSZ GOLEC, CEO, WIELTON GROUP, PROGRAMME BOARD MEMBER, INNOVATIVE MANUFACTURING FORUM INDUSTRYTECH As a company present in the international arena, we have the opportunity to observe changes resulting from the fourth industrial revolution which are taking place on the automotive market in most Western European countries. I believe that in the near future, investment in innovation will be one of the key areas of activity of Polish companies, too. They can greatly benefit from the fourth industrial revolution, but they must take into account the fact that technologies are now being developed much faster than in previous decades, which in turn means that we have to adapt to change faster, because more changes are just round the corner. We have been automating our Wielton plant for over 15 years now. We do it steadily, step by step. However, we would not like to overdo it

INDUSTRY

with robotisation. Currently, we have more than 40 robots which take over the hard work of welders, leaving lighter manufacturing processes to our crew. Thus, it is also an opportunity for the job market - specialists can hone their competencies and skills in more complex and demanding processes. Industry 4.0 also gives us greater time savings, which we use to streamline processes, effectively manage the portfolio of orders and work on the quality of products, which allows us to build a unique competitive advantage.

JACEK SIWIŃSKI, PRESIDENT, VELUX POLSKA, PROGRAMME BOARD MEMBER, INNOVATIVE MANUFACTURING FORUM INDUSTRYTECH The industrial revolution, Industry 4.0, digital transformation are slogans which have dominated public debate on the economy in recent years. Let us consider what the industrial revolution is all about. In my opinion, these ambitiously sounding slogans correspond to a quote from poet and philosopher Johann Wolfgang von Goethe, who once wrote: "He who moves not forward, goes backward." After all, improving efficiency, reducing costs, building a competitive advantage and improving work safety are processes which have long accompanied entrepreneurs the world over, whether in production or services, regardless of the scale of the business or industry. These are the processes that are in constant operation in industry and the economy as a whole. After all, at the root of Industry 4.0 lies the need for development, cutting costs, making industry more friendly toward the environment and improving safety. All this falls under business optimisation, which has accompanied us for a long time. In my opinion, it is the pace of change that is the main challenge for entrepreneurs, not change itself. I don’t wish to play down the importance of robotisation and automation processes. I am a great supporter myself. Many of these types of solutions have been successfully implemented in our factories in Poland. What I would like to emphasise is that these broadly discussed changes are commonplace, they affect each entrepreneur, though probably most entrepreneurs would not admit that a revolution is taking place in their own company. Therefore, I would urge everyone to demystify these high-minded slogans so that each entrepreneur can understand that he is involved in bringing about change and is co-responsible for the changes that are occurring in our economy. This is all the more important because, as I said, these changes are extremely fast and it is easy to be left behind. Hence, I would like to call for the promotion of modern economic trends, instead of

lofty slogans. Development and progress should constantly be part of building a competitive advantage in each company. The example of many companies, including Velux, which I have the honour to manage, proves that a wisely pursued policy of sustainable development makes it possible to achieve significant economic benefits and increase your competitive edge.

FILIBERTO AMATI, GROWTH ADVISOR, MARKETING CONSULTANT, EXPERT ON INNOVATION, BRANDING AND DEVELOPMENT There are plenty of opportunities for Poland in terms of Industry 4.0. First and foremost because Poland is home to a longstanding industrial tradition, like for example the automotive and electrical engineering industries, and thus there is already local demand for automation and smart technologies. In addition, Poland is itself positioned as one of the leading centres for financial transaction processing, thanks also to the quality of the universities of technology both in the north and the south of the country. Moreover, Warsaw is already one of the top global centres for AI and Big Data for Google, which gives credit to the local talent and infrastructure, the start-up potential with the addition of the Google Campus - and the economic attractiveness of Poland. In the context of health tech, fintech, insurtech, Poland is also home to a wide variety of incubators and accelerator programmes, which are set to reshape the tech landscape of the future. The big challenge is for small and medium-sized enterprises in Poland to start collaborating with one another because it is hard to develop everything internally unless you have infinite resources. An open innovation ecosystem, where large players, universities, start-ups and scale-ups work together-this is still the best scenario, and the one • policy should focus on.

“

Jacek Siwiński

Filiberto Amati

INDUSTRY 4.0 IS NOT JUST ROBOTS AND A FULLY AUTOMATED ENTERPRISE. IT IS THE COMPANY'S OPENNESS TOWARD CHANGES IN THE PRODUCTION PROCESS. INDUSTRY 4.0 IS A FORM OF COLLABORATION BETWEEN MAN AND MACHINE.”

2/2019 polish market

INDUSTRY

INDUSTRY 4.0

NEEDS LEADERS WITH NEW COMPETENCIES

The Fourth Industrial Revolution is no longer a media catch-phrase and company boards across the world have started to realise that changes to the way in which business operates are irreversible. Over the past year, their perception of resources needed to get ready for this process has also become more realistic. According to the second annual report released by the professional services company Deloitte, “Leadership in the Fourth Industrial Revolution: Faces of Progress,” specific types of management and leadership are needed at times of sudden changes in the functioning of business. The leadership will enable overcoming in-house resistance to the necessary change.

he Deloitte survey was conducted among more than 2000 C-level executives across 19 countries. With the advent of the Fourth Industrial Revolution, which redefines our life and work, executives around the world are under pressure to prepare their organisations and employees for the unavoidable change. In many cases, resistance to change from employees strongly attached to old business models is a barrier to bringing about changes. As a result, many companies avoid bold technological investment projects, which could drive innovation and crucial changes, allowing the organisation to maintain its competitive edge on the market. Compared to the inaugural survey last year, the Deloitte report presented this year shows that C-level executives are much more realistic in assessing their companies’ commitment to actions designed to exploit technological opportunities for development. One year ago, 86% of respondents in Deloitte’s first report exploring businesses’ readiness for the Fourth Industrial Revolution said their organizations were doing all they could to create a workforce for Industry 4.0 and exploit the change potential for business development. This year, fewer than half (47%) said the same. According to CEO of Deloitte Global Punit Renjen, last year leaders were still learning about what Industry 4.0 is and how it was going to change business and society. Most leaders said they were prepared for change in this sphere. But the situation has changed. In Punit Renjen’s view, the

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executives’ actions have revealed a marked discrepancy between their internal conviction and their actual readiness to meet change-related challenges.

FOUR KEY AREAS OF CHANGE The surveyed executives were asked to assess their performance in four key areas enabling their organisations’ success in the age of the Fourth Industrial Revolution: positively affecting society, shaping business strategy, utilising 4.0 technology and managing talent and workforce needs. On this basis, the Deloitte experts distinguished four “leadership personas,” which will help dealing with changes to the functioning of business.

RESPONSIBILITY PAYS OFF Societal impact is the most important measure of success in the eyes of business leaders. As much as 34% of those surveyed indicated this factor. The percentage of those who pointed to financial performance and employee and customer satisfaction as the top factor was two times lower: 17% each. Additionally, 53% of respondents said they had generated new revenue streams from socially conscious business. “We called leaders who build their business on the foundation of responsibility by the name Social Supers. They have proven that developing products and services consciously

INNOVATIONS AND TECHNICAL SOLUTIONS: INDUSTRY, ENVIRONMENT, HEALTH AND MEDICINE, EVERYDAY LIFE

FUNDACJA HALLER

INDUSTRY

“

ONE YEAR AGO, 86% OF RESPONDENTS IN DELOITTE’S FIRST REPORT EXPLORING BUSINESSES’ READINESS FOR THE FOURTH INDUSTRIAL REVOLUTION SAID THEIR ORGANIZATIONS WERE DOING ALL THEY COULD TO CREATE A WORKFORCE FOR INDUSTRY 4.0 AND EXPLOIT THE CHANGE POTENTIAL FOR BUSINESS DEVELOPMENT. THIS YEAR, FEWER THAN HALF (47%) SAID THE SAME."

and with care for the environment is not only socially responsible, but also generates new revenue and enhances the company’s profitability,” says Irena Pichola, Partner, Sustainability Consulting Leader Central Europe. “Additionally, 54% of Social Supers devote more attention than other leaders to training their employees and preparing their competencies for the needs of digital transformation. In the remaining leadership groups, only 37% of respondents consider this aspect as essential.”

PERMISSION TO FAIL AS A KEY TO CAPITALISING ON INNOVATION One third of the executives surveyed by Deloitte reported a lack of leadership vision as the main challenge facing organisations in the process of adjusting business strategies to future needs. Companies are falling behind with formulating strategies for the application of new technologies. The executives do not hide their anxiety associated with the multitude of available technology choices and limited potential to keep pace with the rapid rate of change. Less than one third (29%) of executives see their organisations as having clearly-defined decision-making processes. Strategic hurdles, like for example organisational silos, may complicate decision-making and slow the pace of innovation. Data-Driven Decisives overcome such barriers through a consistent data-focused approach, thanks to which they are bolder in taking any kind of decisions. These leaders are confident, with 62% of them strongly agreeing that they are ready to lead their organisations in capitalising on the opportunities associated with the technological revolution. “More than two thirds (69%) of those surveyed are aware that introducing innovation involves risk of failure and requires learning from mistakes,” says Michał Pieprzny, Partner, Strategy Leader at Deloitte. “Data-Driven Decisives take this risk into account in their strategies and make room for it. It is important because only bold decisions and the

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conscious testing of new solutions may enable today the proper use of technological capabilities in business development strategies virtually in every sector.”

FEAR OF NEW TECHNOLOGY HAMPERS THE DEVELOPMENT OF ORGANISATIONS According to the Deloitte report, despite exponential changes in technological development, many organisations still act conservatively and do not change their policy on investment in innovation. 67% of those surveyed view investment in technology as a way to protect the position of their organisation on the market and only one third plan to disrupt the market. The authors of the report point to excessive focus on short-term results, too many technology choices and lack of understanding of Industry 4.0 technologies as reasons holding leaders back from embracing disruptive technologies. The leaders called Disruption Drivers are aware that investment in innovation is indispensable for development and their ambition is to change the market on which their company operates.

EMPLOYEES HAVE TO KNOW ABOUT THE POTENTIAL OF NEW TECHNOLOGIES Owing to fear of new technologies and automation, executives are not convinced they should invest in the development of their workforce. More than half (55%) of respondents reported a mismatch between the skills their employees have now and the ones they will need in the future. However, 25% still prefer to employ new workers than train and retrain existing ones. “Nearly 60% of those surveyed said education systems did not sufficiently prepare young people for work in new business models based to an increasingly large extent on digital technology. This view should encourage companies to equip their employees with the necessary skills,” says Tomasz Konik, Partner, Clients & Industries Leader at Deloitte. “Talent Champions, the last type of leaders presented in the report, understand that their role is to invest in the development of both new competencies of their employees and new technologies to be ahead of the competition.”

INFORMATION ABOUT THE REPORT The report “Leadership in the Fourth Industrial Revolution: Face of Progress” was presented for the first time at the World Economic Forum in Davos. The research was based on a survey of 2,042 executives from across the world conducted from June to August 2018. The respondents came from 19 countries from both Americas, Asia and Europe and represented all major industry sectors. All the executives work for companies generating revenues of at least • USD1 billion. Source: Deloitte During the World Economic Forum in Davos Deloitte presented a report identifying four distinct types of leadership for Industry 4.0.

SPORTS SPONSORSHIP

FIND NEW MARKETS

AND RAISE WAGES JANUSZ SZEWCZAK, Polish economic analyst, university teacher, writer and commentator, former chief economist at the National Association of SKOK credit unions, deputy to the Lower Chamber (Sejm) of the 8th Polish Parliament and vice-president of the Sejm Committee for Public Finances.

Remarks by Janusz Szewczak, market analyst and MP of the PiS party, on the basis of a conversation with Jerzy Mosoń (excerpts)

e have reached an economic growth rate of 5%. We have the lowest ever unemployment rate - below 6% - and a public finance deficit of a mere 0.5%. Much credit for this goes to high internal consumption, but also the growing competitiveness of our businesses. The most important thing, however, is that we have improved tax collection, in particular the collection of VAT. In 2019, Poland and the world are facing further challenges and many threats as well. As regards the development of the Polish economy, I am an advocate of the demand theory rather than the supply theory supported by [former finance minister -ed.] Balcerowicz, a theory which was well-entrenched in Poland until recently and meant “cut, save, close down, liquidate, preferably do not spend.” Meanwhile, our present growth is evidently driven by internal demand. But this is still not enough for us to catch up with the world’s richest countries. 2/2019 polish market

ECONOMY

“

THE ALMOST EXCLUSIVE RELIANCE OF THE POLISH ECONOMY ON THE GERMAN ONE IS DANGEROUS. IT IS LIKE A LITTLE BOAT ATTACHED TO A WHALE. EVERYTHING IS FINE WHEN THE WHALE IS ON THE SURFACE. BUT WHEN THE WHALE DIVES THE BOAT ALSO GOES UNDER WATER.”

POLISH EMPLOYEES EARN TOO LITTLE Polish people still earn little. Our competitive advantage in the form of low wages has to end because we already have a labour shortage. At the same time, our investment needs run into hundreds of billions of zlotys. Polish people are aware of that and want to earn more. Last year, wages increased by more than 7% on average. The same may happen this year, but the growth will still be unsatisfactory. It is clear that in terms of wages the Polish market is becoming unattractive even for Ukrainians. This state of affairs should cause upward wage pressure. But will it be strong enough to change the attitude of employers? Their problem is not only high labour costs, but also the need to look for outlets for their products and services outside Germany. I have warned that the almost exclusive reliance of the Polish economy on the German one is dangerous. It is like a little boat attached to a whale. Everything is fine when the whale is on the surface. But when the whale dives the boat also goes under water. Germany is now evidently in a worse shape and this is not the end of their problems.

LOOKING FOR NEW MARKETS Poland should significantly increase its trade with the United States. Polish-American relations in the area of energy policy have already improved. Now, time has come for the agri-food sector, for instance. There is also the huge Chinese market, which is still undervalued. There is the region among the Adriatic, Baltic and Black Sea, offering a great and still undiscovered economic opportunity. And finally, India – we are still practically absent from that market. Time has come to change that, the more so as Poland

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was once a giant in, for example, pharmaceutical exports to these countries. Having sold a large part of our national assets, we have to start building pharmaceutical plants anew because investment in the pharmaceutical industry offers some of the highest rates of return. But the numberone goal is retaining in Poland scientists, builders, drivers, salespeople, carpenters, painters, bricklayers, nurses and doctors. Again, this requires a rise in wages.

WILL POLISH PEOPLE COME BACK? It is a fantasy to say that the average wage in Poland is around PLN5,200. Realistically, it stands at PLN2,500PLN3,500. Almost 1.5 million people earn wages close to the minimum, which is PLN2,200. The result is that we already have a shortage of around 200,000 workers. In a year this figure may grow to 350,000. Because of cultural aspects and fears associated with the terrorist threat, we do not want workers from Muslim countries. The only way out of this situation for Poland is a rise in wages, which are now three to four times lower than in Western Europe. Additionally, the wage difference discourages Poles working abroad from returning to Poland. And we do not know what the consequences of Brexit will be. Perhaps some people will want to leave the British Isles. It would be better if they joined the Polish market instead of looking for jobs elsewhere. Another challenge is to create conditions for Poles who would like to return to Poland from the East. However, for that to make sense the cost of renting a home should be much lower. Hence it is necessary to increase the supply of homes, something to which the government programme Home Plus is designed to contribute. We will probably also need to make some changes to the pension system soon to encourage retired people to return onto the labour market.

OLD PROBLEMS RESURFACING The need to bring expatriate Poles back to Poland is also a question of responsibility for the nation. The world is in turmoil and at a dangerous crossroads. A single spark may cause an incredible geopolitical, financial and military upheaval. Not to mention that none of the factors which caused the 2008 financial crisis has been removed. Just the contrary. In the book “Banksterzy. Kulisy globalnej zmowy” (Banksters. The Inside Story of a Global Collusion), I have shown the scale of mega speculation, the greed of large banks, manipulation, the problem of virtual money, which seems to already be beyond anyone’s control. In 2019, global debt is many times higher than 10 years ago when it caused the global crisis. The total debt is estimated at USD150 trillion, which represents much over 300% of the global GDP. Actually, none of the roots of evil has been removed. A “financial botox” was only injected in the form of new hot money printed to the tune of USD20 trillion. The money was transferred to the banking and financial sector, which again spent it on speculation. What’s more, the world has become almost defenceless because a considerable part of the instruments which could prevent crises have already been used, like zero and negative

ECONOMY interest rates, money printing, tightening restrictions for corporations and large banks, the purchase of bonds by the European Central Bank and so on. The trade war between the United States and China and Europe also poses a threat. It is hard to predict further consequences of huge speculations on the market for agricultural products. Another thing that may cause concern are derivatives – bets on how much grain will cost in, say, 2020, even though it has not been sown yet. It really is a poker of fraudsters, an incredible financial roulette where croupiers cheat without any restraint. The “yellow vests” which are revolting in Paris are the working middle class who are unable to make ends meet because of a rise in taxes and living costs. The middle class is actually being killed everywhere, not only in France. President Trump, as a billionaire who has come from the lower classes, is trying to restore the middle class in the United States. This is why he is so much hated by oligarchs and neoliberals, especially those with the leftist pedigree.

“

THE WORLD IS NOW IN TURMOIL AND AT A DANGEROUS CROSSROADS. A SINGLE SPARK MAY CAUSE AN INCREDIBLE GEOPOLITICAL, FINANCIAL AND MILITARY UPHEAVAL."

MORE REALISM NEEDED Additionally, we also have climate-related problems. The biggest challenge for Poland is access to possibly clean and cheap energy. But the closure of all coal mines, a popular demand recently, would also mean the need to close virtually all power stations. It is absurd. Russia, the United States, Vietnam or Ukraine do not extract less coal than us. Germans are even felling down their natural forest in Hambach to make room for a brown coal mine. We need a little more realism and less hypocrisy. If EU bureaucrats adopt a financial instruments directive which allows speculation on carbon dioxide certificates on a large scale it enables them to control energy prices in a given country. And this means that someone receives a tool which enables them to force the country’s government to buy, for example, nuclear power plants or expensive electricity. If electricity prices go up business competitiveness decreases and citizens become poorer. This may soon be our problem, too.

WHO OUR FATE DEPENDS ON? Some believe that the world’s problems may disappear thanks to globalisation. I tell them it is a fib. The transfer of prosperity, full cooperation, profits for all and the raising of all boats turned out to be an illusion, another utopia. Globalism is fine for the strong and wealthy, but not necessarily for aspiring and catching up nations. China benefits from globalism because it is a large country, which has proposed to produce everything cheaper. The Chinese people pay a high price for that. There is no social, old-age or health insurance in China or any other benefits that democratic Western societies enjoy and take for granted. But globally we are all facing one big challenge: the improvement of contemporary elites. My latest book, “Koniec świata starych elit” (The End of the World of Old Elites), in which I deal with the sociological phenomenon of the fall of the world’s elites, I prove that bad things are happening in the world not only because of bad and harmful economic mechanisms but mainly because of the “gangrene”

of the hearts and minds of those who decide about them, the present establishment: financial, political, spiritual and media elites. It is not true that the world has always been ruled by money. The world has always been ruled by those who controlled money. You can see that in the crises that affect us today : from demographic to social to financial. It is them, the so-called elites, that artificially create crises. They do so because they have discovered that you can earn more from collapse than the puritan-protestant approach to work and long-term saving. • 2/2019 polish market

ECONOMY

NEW PRAGMATISM

A REMEDY FOR NEW NATIONALISM?

New pragmatism, an economic theory proposed by PROF. GRZEGORZ KOŁODKO, is meant as a response to challenges posed by the contemporary civilisation and changes in economic systems, in particular by new nationalism. Professor Kołodko has recently turned 70, and the Leon Koźmiński University in Warsaw celebrated the occasion. It was an excellent opportunity to find out about the theory promoted by Prof. Kolodko. The following is a digest of his remarks.

ew pragmatism was essentially born out of thinking about the future. For me, the economy has always had two faces, but not in a hypocritical way, the way it is practised by some of my fellow economists. They speak with a forked tongue because they are involved in ideology or are guided by vested interests. My approach is descriptive and analytical. Based on a value system rooted in axiology, we can and are even bound to differ, but the question is what to do to make things better? We should strive toward a better world with higher efficiency at the work place, better personal satisfaction and a fulfilled family life. In my book "The World on the Move," I write about twelve major issues of the future. My way of thinking stems from an attempt to provide answers to difficult questions: what does economic theory have to say about solutions to issues that the future can bring, and what does it depend on. If we do not know what it depends on, what to do to bring about change in our favour, we should use positive thinking: what to do to avoid problems?

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ECONOMY

“

THE MOST POWERFUL INSTITUTION SHOULD BE A REGULATORY BODY FAVOURING THE PROTECTION OF CONSUMER INTERESTS, AND THIS IS THE WEAKEST POINT OF THE MODERN MARKET ECONOMY.”

WHERE DO CURRENT PROBLEMS COME FROM? Economic life has become very complicated since the days of Smith, Marshall, Marx and Keynes. They faced simple questions, definitely simpler than those we face now. At present, there are no simple answers. It is so easy to say: "It’s enough not to steal." To others, one simple solution is: "Let’s leave the European Union." The thing is, they don’t have a clue how to go about it. Others are not quite sure what "not stealing" actually means. It’s all terribly complicated. But our duty as economists is to do some serious thinking about complex matters, but to write and speak about them in a way everyone can understand. This doesn’t mean we need to provide simplistic answers. The main question is where we should look for information today. Of course, in books written by wise people, but in most cases in the media. But what is the media like? Without the media, you cannot give answers to most questions. They manipulate or, to put it mildly, shape public awareness, the level of general knowledge in society, which according to scientists sometimes borders on ignorance. Knowledge is the basis for making decisions.

WRONG ANSWER TO NEOLIBERALISM The words "freedom" and "democracy" do not necessarily go hand in hand with rational microeconomic realities in national economies, and certainly not with the level of civilisational advancement. And this is a very serious threat, because it plays into the hands of nationalists and populists. Ordinary people have rights, even the right to be xenophobic, because xenophobia stems from fear. People have the right to be scared, but it is our duty as economists to

tell them what they should be afraid of, how they should behave and what they shouldn’t be afraid of. We should oppose attempts by some to raise fears among the population, because this is largely linked with nationalism, which in my understanding is the wrong answer to the negative side-effects of neoliberalism. Therefore, one must look for an alternative - hence the new pragmatism. There is a need for a constant public discussion, especially with those who are wrong and with hypocrites who cynically lie - this is the most difficult thing I have to deal with in my polemics. If someone is wrong, we are able to discuss matters in a rational, intellectual and scientific way and agree on how we should approach a given issue. I can often hear economists who simply lie. They realise that they couldn’t be further from the truth, but they lie anyway, because they profit from it in some way, or they would have to admit to their mistakes.

THE INTERESTS OF THE CONSUMER MUST BE PROTECTED The most powerful organisation in the country should be the Office of Competition and Consumer Protection. But in fact, protection of the rights of consumers is the weakest point of the modern market economy. Ordinary citizens are manipulated in order to maximise the goal function, which does not serve to satisfy consumer needs and does not ensure equilibrium. It may not be the most important issue, but without this institutional social balance, cultural stability cannot be achieved in society. Our attention should gradually be shifted toward this issue. We need positive synergy between the power of the invisible hand of the market and the power of the visible hand of the state. At the same time, I’m not aware of any place where optimum solutions have been found. However, I can give examples of places which are closer to achieving this goal. From this point of view, things are certainly better in Switzerland than in Venezuela. Where are we?

HOW TO DEFINE GLOBALISATION I define globalisation as an economist, stressing that there are legitimate non-economic definitions, because it is a multi-track process. Globalisation is spontaneous, nobody has invented it, it has just happened by itself. The liberalisation and integration process lasts longer than our lifetime. To a large extent, it is a system of national economies and branches of industries connected into one interdependent global system. That’s why, I fight like Don Quixote against tautology when I hear about the globalisation of the world or the globalisation of the global economy. The world is global by definition, and globalisation is global by definition. If a linguistic competition for an alternative word to the term “globalisation” were announced, I would submit the term "worldisation," instead of talking about the worldisation of the world and the globalisation of the globe. Globalisation includes: markets, trade, investment, technology transfer, know-how and services which are 2/2019 polish market

ECONOMY

“

KATOWICE WAS A GREAT SUCCESS. EVEN SMALL STATES MANAGED TO FORCE BIG PLAYERS TO ASSUME CERTAIN OBLIGATIONS."

and the world develop to some extent depends on us, on the intellect, politics, leaders, and strategy. This despite the global crisis, which I believe has five dimensions: the financial, economic, social, political and cultural dimension. Even though neoliberal doctrines and practices have ruled much of the world for quite some time, in spite of turbulence and disturbances which occur in the process of globalisation, I believe that this is an irreversible process.

CAPITAL CAN BE CONTROLLED Why is China hated by some, also in Poland? Because it has proved that capital can be controlled and this brings world capital out in a rash. Capital uses governments and politicians to fight China and portray it as public enemy number one. Nevertheless, the neoliberal variety of globalisation has no future. It could lead to a catastrophe. The clock is ticking, especially when you think of the Doomsday clock mentioned by astrophysicists, ecologists and physicists. In turn, inclusive globalisation (as opposed to exclusive globalisation, ed.) makes sense and can lead us out of trouble. What, then, does China bring in? For example: the new Silk Road. At the beginning, it was about disposing of China’s steel and cement surpluses abroad. Then the initiative turned into something big, and in fact, there is now even talk of a China-led globalisation reform. It is globalisation with Chinese characteristics filled with local content.

WHY WAS COP24 A SUCCESS?

subject to cross-border transactions. It highlights various abominations, for example terrorism, economic stupidity and nationalism. I reckon we are witnessing a new stage of the world becoming receptive to the globalisation of nationalism.

INEVITABLE OR IRREVERSIBLE Some say that globalisation is irreversible and others that it is inevitable. Here, I make a distinction. Our time on this planet is limited, but some matters do depend on us. Thus, the question arises: is the future of globalisation economically defined and irreversible, or is it inevitable. And inevitable means pre-determined. My new pragmatism is not determinism. Certain phenomena are determined by their essence and the course they take. For instance that each birthday we get one year older. But the manner in which Poland, the European Union

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It is crucial what shape globalisation will eventually take and what role particular states and their agreements with other countries will play in it in the future. The prospect of a world government is a dystopia, it is nonsense. On the other hand, political coordination between individual countries, and on the global scale, is imperative because the alternative is a civilisational catastrophe. Can we afford to sit by and do nothing? The climate change summit in the Polish city of Katowice (COP24) was a great success. Even small states managed to force big players like the United States and the EU to assume certain obligations. A degree of consensus was reached, which is clearly a step in the right direction. It also shows what instruments should be used to fight climate change. It is clear that if there is a need to do something, then the instruments are easy to find. Only this requires a vision, not an illusion about the future of globalisation. This calls for leaders, strategists, unity, and not charlatans of all shades of whom there is no shortage in various countries. I have one reservation. If Saudi Arabia and Iran were to go to war, and Russia and the United States joined it, everything I’ve said would become invalid. I would need to change my fundamental assumptions. The future I write about in my book "Where Is the World Headed," is not inevitable, it is only possible. But how things play out in the future depends largely on wisdom and active measures. In this respect, economists, including those like us, real• ly have a lot to say and do.

ANKOL

AMBASSADOR FOR THE POLISH ECONOMY

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

QUA L I T Y C O M PE T E N C E STA N DA R D S ANKOL is a trading company operating in the aviation sector since 1991. The ﬁrm is a leader in deliveries of equipment and repair services for military and civil aviation on domestic and foreign markets. High quality of the goods and services offered and modern management based on international standards underlie the company’s successes. Ankol is an innovative and reputable company working on the global market.

fot. Hesja.pl

INNOVATION LEADER ANKOL Sp. z o.o. Chorzelów 244, 39-331 Chorzelów ankol@ankol.com.pl

www.ankol.com.pl

SPORTS SPONSORSHIP

SPORTS SPONSORSHIP: A NEW INDUSTRY?

According to research conducted by Sponsoring Insight Research and Consulting, the sports sponsorship market in 2017 reached the value of PLN 870.7 million, over PLN 38 million more than the year before. However, according to forecasts, the value of this market could reach PLN 1 billion as soon as 2020. These estimates were made before the return to Formula I of the Polish racing driver champion Robert Kubica. So could the prospects be even brighter? Has the Polish market matured to such an extent?

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SPORTS SPONSORSHIP

“

The past three years has been a period of great changes and reforms in Polish sport, at many levels. I’m especially proud of the Code of Good Governance for Polish Sports Associations with nearly 200 guidelines. Sports organizations must follow them in order to obtain public funding. It was a difficult but needed project. I think now our sport federations can understand it. I’m passionate about involving sponsors in funding Polish sport, as part of corporate social responsibility. Money is important in sport. So, now I’m proud that Polish sport is funded by the state budget, public and private companies and other partners. We have created a financial coalition for sport.”

Minister of Sport and Tourism WITOLD BAŃKA

or years, companies most involved in sponsoring sports were fuel and energy companies. The automotive industry and the financial sector have also been involved. Big automotive companies and banks are keen on football, which crosses all borders. Companies that manufacture mobile phones and those related to this industry are attracted to athletes -celebrities, which can be seen on the example of footballers Robert Lewandowski and Polish ski jumpers who appear in commercials for the latest smartphones. We are about to witness Piątekmania, because the star performance of footballer Krzysztof Piątek at AC Milan, is bound to give rise to a new fad, and this of course means money.

ORLEN RECORD

A media furore has recently been sparked by a huge investment of the Polish fuel giant Orlen in the Williams F1 team which features the leading Polish racing driver Robert Kubica. Is PLN 100 million a lot of money to invest in sponsorship? The sum seems staggering, but for Formula I it is standard, because this sport involves tests used in the automotive industry. And since the Polish state has aspirations to modernise its motor industry, while it cannot boast a single Polish-engineered car, it needs symbols. Robert Kubica seems perfect for the part. A year ago, when it seemed that, after years of therapy following a major crash, Kubica would again sit behind the wheel of a Williams' car, out of nowhere came Sergei Sirotkin, with the enormous financial support of SMP Racing, which is backed in turn by SMP bank. The Polish driver may have

been far more recognisable than the Russian, but without an equally strong sponsor, he could only become a test driver. But now, things have changed.

POLES CAN NOW AFFORD F1

As one of the most expensive sports in the world, so far Formula I has been beyond the reach of Polish sponsors. The breakthrough came with the Polish state-owned company Orlen. It has changed the perception of the Polish economy as a whole, and perhaps showed the way to Polish private business. A few weeks ago Wrocław businessman Roman Ziemian and his partner Stephan Morgenstern sealed a deal for the placement of their FuturoCoin cryptocurrency logo on a Formula 1 motor car. This is the first time a cryptocurrency logo will appear during an F1 event. FuturoCoin has become one of the sponsors of Red Bull Racing. Who knows, if the changes in Formula I continue at this rate, maybe one day Poles will build their own team.

TOP PATRONS

Companies owned by the state are among the top sponsors of Polish sport. The copper giant KGHM supports the Zagłębie Lubin team to the tune of millions of zlotys each year. Last July, the Premier League started a three-year partnership with two brands belonging to the largest companies in Poland: Totalizator Sportowy and PKO Bank Polski. The funding is meant to support the long-term development of Premier League clubs, which means financing activities aimed at educating children and young people. And what about other sports, including niche sports? In 2/2019 polish market

SPORTS SPONSORSHIP

the future, given the current structure of sports financing, can we count on the emergence of athletes in the format of boxers Andrzej Gołota and Ewa Piątkowska?

GOOD SPONSORSHIP PRACTICES

Three years ago, the Ministry of Sport and Tourism together with the Treasury came up with a document entitled "Best practices in sponsorship activities by companies with a stake held by the Treasury." This document sorts out issues related to sponsorship activities conducted by these entities, defines the areas of sponsorship (including professional sports, physical education, sports for children and young people,) as well as outlining the relevant legal framework. Sports sponsored by companies with a stake held by the Treasury have been among the most popular sports for years. Niche sports may be successful, too, but they are overlooked by sponsors, for example rowing, shooting, speed skiing, weightlifting and martial arts. Currently, company managers are required to list potential benefits from sponsorship deals before they are allowed to support a sports association. Everything is in the hands of trade unionists and athletes themselves. But the latter must take care not to upset the balance between training and seeking funds. It is not easy.

THE WAY ATHLETES SEE IT

How to reconcile the interests of a state institution, a private sponsor focused on the promotion of its product or service and an athlete who has to keep proportions in all this? “Support for the athlete from the institution is governed by different rights than private sponsorship, which is basically unlimited. Good practices, however, apply to everyone,” says legal adviser Marek Stopczyński, a sport marketing expert. “One should bear it in mind that the partnership between the player or the club and the sponsor must bring the two sides benefits in terms of raising their profile,” adds the lawyer. Athletes who often advertise products that have little in common with their sport or, worse still, contain ingredients which are not in keeping with a healthy lifestyle, are all too familiar with this issue. There is also the problem of how much time an athlete can spend in training in relation to the time needed for promotional activities. Whenever the national football team performs at the world championships worse than desired by fans, a wave of criticism sweeps across the media. Some supporters blame the team’s poor performance on the amount of time footballers had to spend performing their promotional duties on behalf of sponsors, rather than training. “When it comes to sports, when choosing a sponsor, a club, an association or individual athlete should pay attention not only to the financial side, but also to what their obligations under the contract will be, whether they will be able to cope without jeopardising their career. They should also carefully look at what product or service they are supposed to promote through their achievements,” emphasises legal counsel Marek Stopczyński. In the pursuit of sports records, it all seems like a major challenge. Can the one billion zloty threshold be crossed in the face of gigantic investments in Formula I and the birth of a new talent in the form of Krzysztof Piątek who plays for AC Milan? We are all for it, even if we are not quite ready yet. •

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“

Professional boxing doesn’t exist without sponsors. Sponsors are needed both for small and large teams and athletes. From the boxer's perspective, it looks like this: we have two or three events a year, but there are years in which we just fight once, for a variety of reasons. It's hard to make a living with what you earn in this way. For most athletes it is impossible. That is why it is so important to get sponsors who in exchange for advertising at the gala event increase the boxer's budget, and in a better case scenario, provide a monthly scholarship. It is not easy to get a sponsor in boxing. Many boxers actively seek potential partners on their own, while others entrust it to their managers. Sponsors not only provide the boxer with psychological comfort, so that they can prepare for the next fight without worrying about current expenses, but also often support the promoter in contracting a good opponent, or even become a co-promoter, thus boosting the boxer’s career. For my part, I can say that if it hadn’t been for sponsors, I would have had to give up professional boxing at the beginning of my career. I’m grateful to all those who have supported me and I’d like to invite more companies to strike a partnership with me.”

EWA PIĄTKOWSKA, the most feted Polish athlete in the history of women's professional boxing, triple WBC Federation Champion

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Photo: Mark Thompson

SPORTS SPONSORSHIP

TIME FOR F1!

ituated just over 70 kilometres north of London, Milton Keynes will forever be known for three things. It is here that the WD40 lubricant is produced. It is also home to Red Bull Racing. In Milton Keynes, too, the first ever sponsorship deal between a cryptocurrency and the F1 team has been signed. You can thank Roman Ziemian and Stephan Morgenstern for the latter. Compared to London's size, Milton Keynes is a small town with a population of about 180,000 inhabitants. Its heart is the Red Bull Racing plant. In it, even the tiniest parts are made for racing cars which you can watch during Formula 1 races. The engine itself is supplied by Honda. The worldâ&#x20AC;&#x2122;s most popular lubricant, the WD40, is made at the plant for your car or toolbox. Known locally as MK, the town sits right in the middle between two prestigious universities Oxford and Cambridge, which further adds to its prestige. Milton Keynes was designated as a new town 1967. Less than 50 years later, it made history as the place where the first sponsorship deal was signed between Formula 1 and a cryptocurrency.

Plans to bring popular cryptocurrencies into the world of car racing have been made for a long time. Marketing, business and sports media, as well as cryptocurrency information services, joined the race to speculate on which teams would be the first to sign the deal. Bitcoin seemed the clear favourite, as the strongest cryptocurrency in the world. Numerous visualisations of cars were shown along with hints of an impending sensation. According to rumour, one of the cryptocurrencies, or thriving stock exchanges, would simply introduce their own team to the F1 circuit. But all this turned out to be nothing more than media hype. It was not until February 2019 that the co-founders of FuturoCoin, Stephan Morgenstern, Roman Ziemian and Paulina WoĹşniak, the CEOs of the cryptocurrency, entered the pages of history. They have finalised a sponsorship deal with a giant: Red Bull Racing whose brand is a household name. Partnership with a brand like Red Bull is a marketing hit. After all, who would not like to be associated with such a strong, recognisable partner with plenty of media exposure and a brilliant marketing strategy? 2/2019 polish market

SPORTS SPONSORSHIP

“

FOR EVERYONE IT IS A VERY BIG AND IMPORTANT STEP, WE HAVE MADE A MARK IN HISTORY."

From left: Christian Horner, Team Principal of the Red Bull Racing Formula One team and Roman Ziemian, cofounder of FuturoCoin

“The FuturoCoin logo has found itself on the Formula 1 car, but that's not all. Our logo joins other big brands, starting with the most visible ones, Aston Martin and Red Bull. Then comes a renowned brand of watches, Tag Heuer, not only a partner of Red Bull Racing, but also an official company that measures time not just for F1, but also for many other sports organisations. There are also Puma, IBM, Pirelli, Citrix, Hewlett Packard and Siemens. These are not anonymous companies and I know that we couldn’t find ourselves in better company. For us, it is a very important business move, because it shows that the company is stable and growing. For everyone it is a very big and important step, we have made a mark in history,” says Roman Ziemian.

RED BULL OR WILLIAMS?

Right after the deal was announced, questions were raised why FuturoCoin, a Polish cryptocurrency, does not support the Polish racing driver Robert Kubica and Williams. This seemed to be a perfect match, and unofficially it is even said that parallel talks were conducted, but Red Bull simply had more to offer. The Red Bull team racing dominated the F1 between 2010 and 2013. The title of the world’s best racing driver was won by Sebastian Vettel four times, and the Red Bull team was unrivalled. Last year, in the constructors' category, the team came third behind Ferrari and McLaren, and this year it also has the ambition to be in the lead. “We operate globally. Even though Robert Kubica is part of the Williams team - and we first intended to talk to Williams – at the end of the day we had to make a business decision based on facts and in-depth analyses. Let’s be frank, Red Bull is set to fight for the top position, while Williams, unfortunately, is not,” Roman Ziemian explains. The importance of media exposure was highlighted in business analyses. The FuturoCoin logo will appear on the front of the Aston Martin Red Bull Racing team car, as well as on the clothes worn by the team, the truck, website, press

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materials and sponsorship walls. The logo on the front of the car can be seen on TV before each race, and this is something which cannot be overestimated when it comes to building brand awareness. “What are the points where cryptocurrencies and F1 meet? They are speed, modern technology, looking ahead to the future based on what is happening in the world and setting trends. These are probably the most important common features of both worlds. We feel very comfortable here,” explains Paulina Woźniak, CEO of FuturoCoin.

THE MAGICAL WORLD OF FORMULA 1

It is not by chance that Roman Ziemian has picked Formula 1. The businessman loves motoring, cars and fast driving. He trains under the watchful eye of racing driver Axcil Jeffries. Behind the wheel, he feels like a fish in water and spreads his wings on the track. Surely, the partnership with Red Bull will truly give him wings. Up close, the world of Formula 1 racing is an experience out of this world. It is all about perfection which is achieved while building a racing car and training the F1 team. There are 850 employees in Milton Keynes and they all, basically, provide support for a team of just two drivers. Everyone is dressed in the same way, they form a single team where everyone complements each other brilliantly. “If you are a fan of motor sports, being able to see construction work on an F1 car makes you dizzy with excitement. Experiencing a world which is normally inaccessible to ordinary mortals, seeing how finely tuned the team is, you want to transplant all that to your own business, you want your team to work in exactly the same way. The factory tour was a great experience, complete with 3D printers, machines which design and manufacture parts on site, an insulated and electrostatic floor. Just standing next to one of the racing cars is a dream come true. It is something beautiful, magical, there is simply no room for error,” says the co-founder of FuturoCoin.

SPORTS SPONSORSHIP

Roman Ziemian,Christian Horner, Stephan Morgenstern, co-founder of FuturoCoin and Paulina Woźniak, CEO of FuturoCoin

Indeed, there is no room for imperfection in the F1 plant. But there are lots of secrets. Nobody knows how a car is painted. We can only see paint and logos and colours. The painting method cannot be revealed, but the goal is to get the perfect coating. Why? So as not to spoil the vehicle's aerodynamics. If anyone thinks that stickers are placed on the car, they are very much mistaken. The coating must be as thin as possible to reduce the weight of the structure. How perfectly co-ordinated it all is, suffice to say that telemetry data collected during any race is transmitted from the car to the command centre in Milton Keynes. This is where the whole team conducts analyses and selects the strategy for drivers. In the worst case scenario, it just takes 0.3 seconds for data to reach the Red Bull Racing centre from anywhere in the world.

IT'S NOT JUST F1

Red Bull itself is not just the queen of motorsports. It is also involved in other sports and activities: ski jumping, the Dakar Rally, skating over and around obstacles, motoGP, e-sport, MTB, music and street dance. The list never ends. Roman Ziemian is guided by a similar strategy. He knows perfectly well that the image of the seemingly heavy world of IT needs to be softened. That is why the businessman constantly comes up with out-of-the-mainstream scenarios, just like Red Bull does. “Red Bull is a brand which not only sets the direction, but it works outside the box. It is open, flexible, dynamic and not afraid of challenges. We think in a similar way. I don’t like to be hemmed in, I like to support various, sometimes bizarre concepts, and not just sports,” says Roman Ziemian. The world of sports aside, the businessman bought a Stradivarius violin a year before the deal with Red Bull was sealed. The instrument, made by Antonio Stradivari, the most valued violin maker of all time, was presented to the Royal Castle in Warsaw. The violin cost PLN 20 million and was purchased from the Italian Ratini family. It was one of the few

“

WHAT ARE THE POINTS WHERE CRYPTOCURRENCIES AND F1 MEET? THEY ARE SPEED, MODERN TECHNOLOGY, LOOKING AHEAD TO THE FUTURE BASED ON WHAT IS HAPPENING IN THE WORLD AND SETTING TRENDS."

Stradivarius violins which had not been given any name yet. Now it carries a simple but important Polish name - Stradivarius Polonia. “We have a few ideas up our sleeves about the Stradivarius and I believe that they will soon see the light of day. I want this instrument to be part of our world, of music in a broader spectrum,” adds the businessman. The Stradivarius, Formula 1, the FutureNet Foundation which saves children's lives - what's next? There seem to be no limits to what Roman Ziemian and Stephan Morgenstern can achieve. • 2/2019 polish market

INVESTMENT

INVESTORS’ OPTIMISM MAY BE CHILLED

The professional services company JLL, which offers comprehensive services on the real estate market, has released a report summing up the year 2018 and outlining trends for 2019.

ast year’s economic situation helped to keep investors optimistic, despite a limited supply of development sites. Head of Land Advisory Services at JLL Daniel Puchalski says: “The favourable macroeconomic situation in 2018 was conducive to investors’ optimism. They were taking decisions to buy new land and start new schemes. The limited availability of attractive sites resulted in price increases and a greater readiness to undertake more difficult projects requiring demolition, remediation, conversion and revitalisation. Multifunctional schemes, where urban space is not traditionally divided into separate residential, work and recreation areas, also enjoyed great popularity. Growing costs of building materials and subcontractors’ services were the challenges which investors had to deal with."

RESIDENTIAL DEVELOPMENT LAND

In 20018, developers sold 65,000 homes in Poland’s largest six urban centres: Warsaw, Kraków, the Tri-City of Gdańsk, Gdynia and Sopot, Wrocław, Poznań and Łódź. Unfortunately, the result was weaker than a year earlier, despite favourable economic conditions and record-low interest rates encouraging loan taking. The problem was a shortage of labour in the building sector, increasingly high costs of construction services and materials, and a reduced supply of attractive sites. Owing to the limited availability of plots in the largest cities, developers started to consider investing in projects in regional cities and properties requiring revitalisation. “Last year, developers encountered much difficulty with supplementing their land

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stocks, mainly because of strong competition and a limited supply of suitable land,” says Daniel Puchalski. “The shortage of sites pushed land prices up to levels which made it impossible for many investors to generate the expected margins. Combined with a rise in project implementation costs, this led in some cases to double-digit growth in home prices on the primary market. Prices of homes on the secondary market are also on the rise. Consequently, differences between average prices in the two market segments are narrowing, which is particularly well visible in Warsaw.” What will the year 2019 bring? Projects in the pipeline and home sales will stay at a similar level as in 2018. The number of homes sold may be slightly smaller, but home prices will remain flat.

OFFICE DEVELOPMENT LAND

In 2018, new office stock delivered onto the market reached 744,000 sq.m., of which more than 500,000 sq.m. came on stream on the main markets outside Warsaw. “In contrast to the residential sector, the situation on the market for office development land was more stable and steady with the exception of transactions involving commercial land in such cities as Kraków, Gdańsk and Warsaw where there are less and less good locations with a clear legal status, and attractive offerings instantly disappear from the market,” says the JLL expert. As a result of the active development of the office segment and diminishing supply of land for commercial development, average prices of office development land went up.” Demand for office development land will remain unchanged and, according to experts, will be concentrated in the main cities, in

particular Warsaw and Kraków. In these cities, prices are expected to increase. High activity on the part of tenants will be driving the acquisition of not only land for new office schemes, but also older buildings suitable for revitalisation projects.

RETAIL DEVELOPMENT LAND

In 2018, 435,000 sq.m. of new retail space was put onto the market, with more than half (266,000 sq.m.) being delivered in shopping centres. According to JLL experts, most shopping is done in shopping centres and retail parks. The market penetration of these schemes is still uneven. Wrocław and Poznań, for instance, enjoy a very high penetration of retail space while on the other extreme there is Szczecin, another large city, where this potential is untapped. Investors are on the lookout for sites for small concepts of up to 10,000 sq.m. to supplement their offering.

Source: JLL

INVESTMENT

“ Source: JLL

And considering that the penetration of retail space in large cities is usually high, investors do not rule out cities with populations below 50,000. The year 2018 saw much consolidation on the retail market. “Taking over premises from the competition and rebranding are ways to acquire room for further expansion other than buying land for commercial development,” says Daniel Puchalski. “An example is the OBI DIY concept, which opened stores in several locations formerly occupied by Praktiker. In turn, Jeronimo Martins and Carrefour took over some Piotr i Paweł stores as part of this chain’s restructuring plan. In the following years, one can expect further consolidation in the retail sector and the acquisition of premises and land for commercial development from the competition.” And what do the experts expect in 2019? “In the case of land for commercial development, the biggest interest will be in sites designated for the construction of small retail parks with retail space from 3,000 sq.m. to 10,000 sq.m. This is especially true of locations with a supply gap,” says Daniel Puchalski. “Older retail premises and those which are ‘no longer welcome’ in an investor’s portfolio will have a chance to find new buyers in 2019. The buyers will modernise them or demolish to make room for their own schemes.”

HOTEL DEVELOPMENT LAND

The development of business and holiday tourism boosts the potential of the hotel

THE SHORTAGE OF SITES PUSHED LAND PRICES UP TO LEVELS WHICH MADE IT IMPOSSIBLE FOR MANY INVESTORS TO GENERATE THE EXPECTED MARGINS”

industry. New chain hotels are being built not only in the largest urban centres, such as Warsaw, the Tri-City of Gdańsk, Gdynia and Sopot, Poznań and Kraków, but also smaller cities, like for example Swarzędz, Oświęcim, Kalisz, in health resorts and at airports. According to JLL data, 30 firms looked for locations for hotel development in Poland in 2018. They were interested in plots of land, old tenement buildings, and other buildings suitable for conversion into hotels of all standards. Daniel Puchalski explains: “Investors’ activity is also influenced by the development of the office sector, which generates business traffic in hotels and removes the problem of seasonality. Mixed-use projects combining office and hotel functions in a single scheme appear on the market more and more often. A good example is The Warsaw HUB.” The hotel market has a big potential for development in Poland. There is every indication that in the coming three years the number of hotel beds will rise by 30%. In 2019, the purchase of land and tenement houses for conversion is likely to continue, mainly in well-connected locations. A further expansion of the hotel sector may be hampered by a shortage of well-qualified hotel staff and construction workers, and a rise in land prices.

WHAT TO EXPECT IN 2019?

Daniel Puchalski sums up: “In 2019, we will see continued interest in revitalisation and mixed-use projects, which will contribute to cooperation among investors from various market segments. We also expect a further, though slight, increase in land prices in all market segments, in particular in Warsaw and the Tri-City. Investors’ optimism may be chilled by the situation in the building industry and the tightening of bank credit conditions for both retail and commercial clients.” •

ANDRZEJ RETERSKI, EXPERT IN THE CONSUMER FINANCE MARKET, VICE-PRESIDENT OF AVAILO SP. Z O.O. At present, banks are most eager to provide funding for highly attractive commercial properties. One of the key assessment criteria taken into account is location. A good location means that the property will be easy to rent out, generating revenue needed to repay the loan. From this point of view, the most attractive will be properties in large cities, like for example Warsaw, Kraków, the Tri-City and Poznań. Another very important assessment criterion is whether the investor has signed pre-let agreements with tenants. In many cases, 40% or even 50% of a building’s space is pre-let even before construction work has begun. The pre-let rate and terms of lease agreed on with tenants have a significant impact on the size of the required down payment, margin collected by the bank and the decision whether or not to grant the loan.

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INVESTMENT

THE WARSAW

OFFICE MARKET

IN 2018

"Investment activity hit a record high on the Polish commercial real estate market in 2018, surpassing the EUR 7 billion mark. The office market also set new highs with its investment volume at EUR 2.6 billion, accounting for 37% of 2018’s total and reflecting a growth of 88% year-on-year," said MICHAŁ WACHOWICZ, Consultant, Capital Markets, Cushman & Wakefield. IN 2018, INVESTMENT VOLUME ON THE WARSAW OFFICE MARKET HIT A RECORD HIGH OF EUR 1.7 BILLION ACROSS 28 TRANSACTIONS, WITH OFFICE YIELDS BELOW 5%, THE LOWEST ON RECORD

The Warsaw office market boasted the strongest investment activity totalling EUR 1.7 billion with 28 transactions closed in 2018. Other Polish cities saw 13 deals for a total of EUR 850 million. 2018 was also a record-breaking year in terms of office yields which in Warsaw broke the barrier of 5.0%, standing at 4.75%, an alltime low in the history of the Polish commercial real estate investment market. Of all regional cities, Krakow saw the highest values with prime office yields at 5.75%. "Given the strong performance of the Polish economy and availability of investment product, we expect the office investment market to continue its bull run in 2019 with prime office yields likely to compress further for Class A office buildings with long-term leases," added Michał Wachowicz.

NEW OFFICE SUPPLY TOTALLED ONLY 233,000 SQ M DELIVERED ACROSS 20 NEW PROJECTS

At the end of 2018, Warsaw’s total office stock stood at 5.46 million sq m. Despite last year’s supply gap, which is expected to carry into 2019, new supply totalled 232,700 sq m

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delivered across 20 office projects, down by 70,000 sq m on the five-year average for 2012– 2017. Last year’s largest completions on the Warsaw market included Proximo II (19,950 sq m), Equator IV (19,200 sq m) and Centrum Biurowe Koneser (17,300 sq m). "At year-end 2018, there was nearly 730,000 sq m of office space under construction. Of that total, more than 82% was underway in central locations. New office supply is, however, expected to be relatively low at 230,000 sq m in the next twelve months. In addition, supply forecasts for 2020 have been revised downwards as delivery of several large-scale projects has been postponed to 2021," said report author Jan Szulborski, Consultant, Consulting and Research, Cushman & Wakefield.

OCCUPIER ACTIV IT Y R EMAINS STRONG IN WARSAW WITH 858,000 SQ M TRANSACTED, AN ALL-TIME HIGH

Office take-up hit a record high in 2018 with 858,000 sq m transacted, which represented a 4% increase on 2017. Key lease transactions included Deloitte’s 22,100 sq m renegotiation at Q22, WeWork’s 14,200 sq m deal in Mennica Legacy Tower’s western building and Cambridge Innovation Center’s lease at Varso II. At the end of 2018, Warsaw’s vacancy rate stood at 8.7%, down by 2.9 pp year-on-year, the lowest since 2012. Robust occupier activity was reflected in high office absorption which

hit 345,000 sq m in 2018, only slightly below the level posted in the peak year 2017. Despite the low vacancy rate in the fourth quarter of 2018, prime headline rents remained flat at EUR 23.5– 23.75/sq m/month in Warsaw’s Central Business District.

NET ABSORPTION WAS DOWN BY 8% ON 2017’S RECORD LEVEL

The Warsaw office market witnessed several major and positive developments in 2018. Gross take-up was exceptionally high at around 858,000 sq m, while absorption amounted to 345,000 sq m and was 50% higher than the new supply at the end of 2018. "This pushed the city’s vacancy rate down to a historic low of 8.7%." said Krzysztof Misiak, Partner, Head of Office Agency, Cushman & Wakefield

IN 2018, COWORKING PROVIDERS OPENED A TOTAL OF 37,600 SQ M OF COWORKING SPACE IN 15 FACILITIES ACROSS WARSAW

In addition, developers enjoy favourable conditions and are driven to break ground on new projects by the growing activity of coworking operators, a large share of expansions in office take-up and a rising number of firms gaining a foothold in Warsaw. A stable office supply growth is a critical factor for the Warsaw market. "A market where tenants have choice will grow at a rapid pace as availability of office space has a positive, tangible effect on demand. Given the current low vacancy rate, a paucity of offices which could begin to cause concern is likely to result in weaker leasing activity in the long term,"added Krzysztof Misiak. • Source: A summary of 2018 on the Warsaw office market presented by global real estate services firm Cushman & Wakefield.

INVESTMENT

PRUSZKÓW

FROM INDUSTRY TO BUSINESS “First, transport, then education, ecology and next, the development of the town, which is already a leader in the region when it comes to winning investors,” says Pruszków Mayor PAWEŁ MAKUCH. In an interview with Jerzy Mosoń, he points to sport as a factor which has contributed the most to the image of Pruszków in recent years, and promises to play a major role in the future.

When you hear the name Pruszków, it brings to mind Poland’s top footballer Robert Lewandowski, who played for the local team at the outset of his career, and Anna Lewandowska. Is it useful in efforts to boost the town's development? The first advantage derived from the fact that Robert Lewandowski’s career break came in Pruszków is that it has positive connotations for the town. A lot has improved in these terms in recent years. Besides, Pruszków is a town with longstanding sporting traditions. However, we look to the future and we will continue to bet on sport. We focus on Znicz Pruszków, the club where Robert Lewandowski played, but let's not forget about other sports, for example basketball and the famous Mazowszanka, then Pekaes. When it comes to Anna Lewandowska, mention must be made of the famous karate school in Pruszków. And we have Poland’s only cycling track, which is the venue of this year's World Cycling Championships, which will take place in late February and early March. PM

Does private business look favourably on sport, too? Clubs in Pruszków operate under sports associations. We try to support them. They also often look for sponsors themselves. One of them is Elektrobud-Investment, a sponsor of ZB Pruszków, another one is Panattoni Europe, a company which supports the Pruszków Champions girls’ basketball team, sharing in their successes. PM

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INVESTMENT

“

PRUSZKÓW IS BECOMING MORE ATTRACTIVE WITH EACH PASSING DAY. I THINK THAT TODAY MANY OF US CHOOSE LOCAL SHOPS AND THE NEW SHOPPING MALL INSTEAD OF GOING TO WARSAW.”

Pruszków is also a leader when it comes to acquiring investors. It is clearly related to our location as a suburb of Warsaw. Pruszków was developed thanks to the construction of the Warsaw to Vienna railway line. A fine, old railway station was built in 1924, whose renovation will be completed in the spring. A shopping centre has been built next to it. Once Pruszków was an industrial town, now it is a business centre. Currently, it has over 60,000 inhabitants and is part of the Greater Warsaw area. We pride ourselves on good transport links. We are served by the WKD suburban railway and the SKM overground line. We are negotiating with the Warsaw area transport company ZTM to launch a bus line which will connect us with the capital. We also have good access to the A2 motorway junction, which allows you to drive into town via the industrial district. PM

So will the people of Pruszków stop shopping in Warsaw? Pruszków is becoming more attractive with each passing day. I think that today many of us choose local shops and the new shopping mall instead of going to Warsaw. Besides, it's not only about shopping, but also about the PM

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cultural life in our town, which is also developing. The new mall has a multiplex cinema. We also have the folk dance ensemble Pruszkowiacy, which has a 40-year-old tradition of training young dancers and gives spectacular concerts. The famous Mazowsze Song and Dance Company has its base not far from Pruszków, which we draw inspiration from. I would also like to encourage visitors to take a trip around the Mazovia Province Museum of Ancient Metallurgy. Our Municipal Cultural Centre Kamyk offers a range of activities for both younger and senior residents. A community partnership manages this centre on the town’s behalf. We have a theatre hall, a cinema, a climbing wall, a sports hall and a stadium. We still have room in the centre for more tenants. We are trying to attract investors. I hope that the community partnership will eventually start bringing profit. Pruszków also boasts fine green areas, including the Potulicki Park, Kościuszko Park and Mazowsze Park. The town has primary and secondary schools with fine traditions. Primary School No. 6 has celebrated its 80th anniversary this year. The secondary school of which I am a graduate, the Tomasz Zan school, is one of the oldest high schools in this region. In 2021, the school will celebrate

INVESTMENT

its 100th anniversary. The school has recently moved into a new building. In the former building, a sports centre was developed with a football pitch next to it. It is apparently one of two such investment projects in Poland. We would like to invite potential investors to find out more about what our zoned areas offer. There are still a few of them left, but mostly on the outskirts of the town but they feature good transport infrastructure, which will be improved even further. That's why I care so much about the need to modernise road 718 and the viaduct. There are also plans for a Paszkowianka link, which is to connect two national roads.

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I HAVE A PLAN FOR PRUSZKÓW: TRANSPORT, EDUCATION, ECOLOGY, DEVELOPMENT. THESE WERE THE FOUR MAIN PILLARS OF MY ELECTION CAMPAIGN AND DURING MY TERM IN OFFICE I INTEND TO STICK TO THE IMPLEMENTATION OF THIS PLAN."

Is there a chance that tourists will be coming to Pruszków for its fresh air? We do our best to improve air quality in all fields: through education, prevention, we support the fitting of eco-friendly heating systems in private housing through subsidies. We also impose fines on polluters. We promote the idea of connecting private houses to the town’s central heating network. We pay attention to low-emission solutions. We will introduce two electric buses next year. We want to obtain EU funds for the thermal insulation of facilities. Currently, the most important project is the modernisation PM

of the Kapry swimming pool, where our medallist Julia Koluch, a UKS Kapry Armexim Pruszków swimmer, undergoes training. How safe a place is Pruszków? A conference on public safety recently took place in Pruszków. We have a new police commander. Our relations are getting better and better. We have a well-functioning municipal police force, but there is no doubt that it needs reform, a fresh look at present-day needs. Restricting their activities to being just traffic wardens chasing cars parked in the wrong places breeds frustration and wins them little approval. Nevertheless, I’m aware that some local residents demand stricter fines for those who violate traffic regulations. PM

What is your plan for this term? I have a plan for Pruszków: transport, education, ecology, development. These were the four main pillars of my election campaign and during my term in office I intend to stick to the implementation of this plan, beginning with transport, because it is the basis of everything. I dream about a well-organised and free public transport in Pruszków, which would mean fewer traffic jams. I have spoken to the Mazowieckie Province authorities about the viaduct which connects two parts of our town. At this stage, I’m concerned about the feedback I got from them, because they are proposing that the existing viaduct should be demolished and that a very similar one should be built in its place. This would mean no exit toward the second provincial road. This is an unacceptable solution for us. Perhaps plans made more than twenty months ago can be changed and the eventual viaduct will be more functional. At the place where Pruszków and Piastów meet, a Grunwaldzka Street viaduct is to be built. The rail company PKP will soon complete work on the Działkowa Street tunnel. I’m also aware of the need to develop the transport network in Gąsin, where two new roads should be built. When it comes to education, we are working on extending the offering of out-of-school activities for children and young people. We are expanding the range of events which will take place in our town, and which will be addressed to younger residents. The development of our educational institutions requires urgent solutions. We have more and more young people who need places in nurseries, kindergartens and schools. There is a shortage of these, so new facilities need to be provided. Communication with residents is also very important to me, which is why I am gradually introducing changes which will hopefully get noticed and will change the functioning of the Town Hall. I am happy to meet with residents and talk about any topic, because each problem matters. There are plenty of urgent issues. Together with my deputies and associates I will strive to consistently implement successive points that are urgent and important • to Pruszków residents. PM

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INVESTMENT

WELCONOMY

A PLACE WHERE

NEW IDEAS

ARE FORGED

JACEK JANISZEWSKI, President of the Programme Council of the Welconomy Forum in Toruń.

rof. Longin Pastusiak, an outstanding Polish specialist in American studies, when presenting the biography of one of US presidents who had sought treaty provisions beneficial for the United States, summed up the statesman’s efforts by saying: “Conference in Baden-Baden and no result at all.” But not every meeting has to end with a lack of results or, even worse, a perversion of its original idea. The best example is the Welconomy Forum, a conference held in the northern Polish city of Toruń. This conference has become a fixture in the landscape of social and economic events in Poland. One simply has to be present at Welconomy in Toruń. But suppose we meet a doubter who says that everyone likes to praise oneself. Then, it is worth making an attempt to persuade him or her to come to Toruń. Welconomy is a place where new ideas and solutions are forged in an attempt to find responses to emerging challenges, responses which are innovative, fall outside clichés, and breathe the freshness which draws from the richness of civilisation. The talks held in Toruń are a sum of what is old and what is new. If a potential participant in the conference takes a look at its agenda – which is not difficult, just enter the word “Welconomy” into your browser – they will see how complex our reality is. The complexity is

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reflected in the multitude of topics discussed. This range of topics proves that we live not only in “liquid modernity,” to use the term proposed by sociologist Zygmunt Bauman, but also in complex reality. Today, there is no simple answer to the world’s complexity. Being aware of that, the organisers and participants try in their discussions to get to the heart of the matter and then explain it in simple terms so as to finally apply it in everyday tasks. The conference in Toruń, through its internationalisation, shows that there are no single solutions to problems. The multitude of cultures means a multitude of solutions. It does not make functioning easier, but shows the richness of human thought. The organisers consistently invite foreign guests whose perceptions are different. And this is not all. Because ideas have their consequences every Welconomy participant has a chance to get familiar with the country which is a guest at the conference. Trade missions serve this purpose. They are a practical confirmation that travel broadens the mind, making it even more worthwhile to come to Toruń. Man is the creator of ideas – this is the motto guiding this meeting. Ideas come into being through dialogue. This is why the Welconomy organisers attach importance to meetings in small groups, direct talks, which are the essence of B2B events, and first of all

personal relations. This is important not only because of the potential for future business undertakings, but also because it is a significant element of socialisation. After the energy-consuming, but constructive, time of panel discussions and workshops, Welconomy participants have an opportunity to see a piece of human material heritage: Toruń’s famous gothic architecture. A stroll along the charming Old Town streets helps us understand that no one is in the centre of the universe, everyone is a small cog in the machine of history, making their contribution to progress and development. Isn’t it a sufficient encouragement to come to Toruń? The contemporary conference market offers many possibilities. Welconomy’s offering is different and it is no exaggeration to say that it is unique. Its participants talk about important matters, but do not lose sight of man. For what is the point of innovative ideas and solutions if they ultimately do not contribute to the wellbeing of individuals and social groups? The multitude of topics and their diversity, politicians who can listen to others and draw the right conclusions, and a friendly, almost family, atmosphere are Welconomy’s clear advantages. You will have an opportunity to become convinced about it again in Toruń on March 18-19, 2019 among more than 2,000 guests from across the world. •

ECONOMY

INVEST

IN A UNIQUE PLACE

strów Island in Gdańsk is a unique place on the European scale for the shipbuilding industry and related industries. The areas revitalised by the Pomeranian Special Economic Zone are waiting for investors interested in shipbuilding, implementation of offshore projects and large-scale steel structures. Ostrów Island, and especially its waterfront, has an extraordinary investment potential. With excellent transport infrastructure and situated virtually in the Gdańsk city centre, right next to the 550-metre Kaszubskie and Trawlerowe wharfs and the Stocznia Gdańska shipyard, it is an attractive place for industrial investment. The area revitalisation project carried out by the Zone aims to adapt the area for modern shipbuilding and related production, based on the latest industrial technologies. The area is perfect not only for investments in shipbuilding, but also in the assembly of large-sized steel structures, for example designed for the implementation of off-shore projects for Baltic wind farms. The modernisation of the site is meant to improve its attractiveness and create favourable conditions for new investors. In total, the size of the area owned by the Zone on the island is 23 hectares. Beginning in mid-2018, the revitalisation was divided into three stages. Currently, work is underway on an area of 5 hectares, where two modern assembly facilities are being built, with a total area of approximately 20,000 square

metres and load capacity up to 20 tonnes per square metre. Assembly shop 33 is being modernised for the construction of fully equipped vessels with a length of up to 90 metres and other specialised steel structures. Units up to 150 metres in length, their components and superstructures will be built in the Trawlerowe wharf. Work on the renovation of the façade and the roof of the historic work shop 26, where U-boats were once made, has been completed. Work is underway on work shop 87. Storage yards with an area of 6,000 square metres are also being prepared. Investors are being sought for other areas with a total area of 18 hectares. The next stages of revitalisation will depend on the specific needs of new investors. An unquestionable advantage of the location is a rail link using the Ostrów ferry and railway sidings which belong to the Gdańsk Shipyard and GSG Towers. In other areas, investors will be able to capitalise on synergy involving the infrastructure and process lines in areas such as sheet metal cutting and forming, flat section lines, maintenance and painting lines, warehouses, heavy transport, etc. Plans are also afoot for a training centre on Ostrów Island for the needs of the shipbuilding industry and other investors based in the area. The Zone also provides support in the field of cooperation with vocational schools and universities in the Gdańsk-Gdynia-Sopot TriCity area, as well as with start-ups which specialise in modern technologies. •

PRESIDENT OF THE POMERANIAN SPECIAL ECONOMIC ZONE PRZEMYSŁAW SZTANDERA The maritime sector is an integral part of the Pomeranian Special Economic Zone. That is why we have become involved in the revitalisation project of Ostrów Island located in the centre of Gdańsk, to bring it back for shipbuilding and to breathe new life into it. It is a unique and very attractive place on the investment map of Poland. Our goal is to increase the potential of this area for modern shipbuilding and related industries. Its advantages, apart from direct access to water, also include the proximity of the port and large plots of land featuring infrastructure necessary for this type of activity and specialised equipment. The Gdańsk Shipyard next to it intends to invest in modern technologies related to shipbuilding and offshore projects. The possibility of using these technologies is an additional advantage for companies which are located next to the area we are modernising. We hold talks with business, with potential investors, to get the rest of the island ready for their needs. We want to extend our invitation to investors whose companies, based on cooperation, generate synergies that increase both their own efficiency and benefit the entire shipbuilding industry.

For other development areas offered by the Pomeranian Special Economic Zone see: www.strefa.gda.pl

Poland Investment Zone

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BUSINESS

SMART PRODUCTS ARE EXPENSIVE AND LUXURIOUS

SŁAWOMIR BRZEZIŃSKI, Managing Director of Nemezia Sp. k. and owner of the Nemezis company, talks to Ewelina Janczylik-Foryś.

Nemezia, a member of the Polish Association of Building Managers (PSMB), is a manufacturer of doors and furniture. Now is the first time that we have an opportunity to present the company to our readers. Nemezia is a recently established company, present on the market since October 2017. Meanwhile, the Nemezis company has operated since 2015. Both specialise in the production of wooden internal doors, kitchens and furniture. PM

What is the difference between the two companies? Nemezis, is a manufacturer offering doors and furniture. Nemezia has to its credit a few completed projects, but at present should be treated as a start-up because it conducts research on an innovative project in conjunction with scientists of the Warsaw University of Technology and the Gdańsk-based CTO SA company. PM

Could you lift the veil on this project? I have to admit that it surprised me to hear about innovation in such products as doors. Can doors be innovative? The product is still at the stage of research so I cannot say much about it. But lifting the veil – we are working on an innovative fire door with an Internet of Things solution. PM

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BUSINESS

The project is carried out under the Operational Programme Smart Growth 2014-2020. I hope that the research work will be completed in autumn this year and that we will be able to launch the product on the market in mid-2020. The door is mainly intended for historical and public buildings. However, you cannot rule out that it will also be of interest to private individuals. The Internet of Things? Smart devices controlled via a tablet or smartphone are gaining in popularity. My experience and the existing situation in Poland tells me that there is a long and hard road ahead of us. All smart products are expensive and luxurious. But the luxury is translated into additional security. PM

Security? Indeed. An intelligent building means not only electricity savings, but also security. And it is not only burglar-proof doors. Security also means lighting, door and window control systems compatible with the alarm and surveillance systems.

Our products can be used anywhere. We cooperate with private individuals and large companies. We have recently had an opportunity to make doors for several apartments in the Złota 44 building [prestigious residential tower in Warsaw designed by Daniel Libeskind – ed.]. Clients look for something special, but still few can afford such solutions. Price is still the key criterion. I do not hide that in many cases clients’ assumptions diverge from the prices we propose. I do not fully agree with you. There are more and more clients who pay attention to quality and are able to pay an appropriate price. Indeed. But those who already look for good products often choose Western firms. PM

Returning to your present product line, you offer both classical and modern forms. Which are more popular with buyers? We work with many designers, architects and interior decorators. Simple forms enjoy the biggest popularity. Wood with glazing is what customers choose most often. Everything depends on the client’s needs.

The grass is always greener on the other side of the fence? In many cases, you can find Polish products under a foreign company’s brand. In the present market conditions, my companies are still a grain of sand in a desert. But I hope that the situation will change. I have become a member of the Polish Association of Building Managers (PSMB) and received a certificate confirming my qualifications in compliance with European Union requirements. I see my PSMB membership as a big chance for development, the more so as the Association’s goal is not only the integration of managerial activity in the building sector, but also cooperation with similar foreign associations.

It is not mass production. Is every product you make a unique work of art? It harmonises with the contemporary style. It is beautiful, elegant and comfortable. I think it may have some features of a work of art.

Have you already cooperated with foreign partners? I have. Iceland, Lithuania, Belgium and Switzerland have been our destinations so far. I hope that the new product will attract interest from companies on a larger scale.

Is this what sets your products apart from those made by your competition? Not only this. Another factor is the diversity of our doors and furniture, and care for detail. We are open to new trends. Sometimes we adopt them from our satisfied customers. We provide comprehensive support to them since the design stage until the completion of the project.

What should I wish you? Every success? You know, I am not afraid of failures. What’s more, I learn from failures. Failure is sometimes better than a spectacular success. I would like us to meet again for the presentation of the innovative product, but there is still a long way to go. I do not hide that the project is unique on a global scale, which is a great advantage, but also danger because it may destroy the existing order on the door and window market. Please keep your fingers crossed for its • success.

Who are your main customers: private individuals or corporate customers? Homes or large buildings?

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CULTURAL MONITOR

FEBRUARY 2019 CULTURAL EVENTS RECOMMENDED BY MACIEJ PROLIŃSKI

FESTIVAL WITH TRADITION

LOTOS JAZZ FESTIVAL IS AMONG THE MOST IMPORTANT JAZZ FESTIVALS IN POLAND AND ONE OF TWO HELD EVERY YEAR IN THE SOUTHERN CITY OF BIELSKO-BIAŁA. WITH ITS 21ST EDITION THIS YEAR, THE FESTIVAL MOVES INTO AN EVEN HIGHER ORBIT AND DEFINES ANEW THE WAY IN WHICH SYNCOPATED MUSIC IS PRESENTED IN POLAND. THE PROGRAMME OF THE EVENT, WHICH WILL BE HELD FROM MARCH 2 TO MARCH 10, 2019, IS TRULY INTRIGUING.

THEATRE

On the first day, jazz lovers will be treated to a magnificent event: a concert by brilliant American saxophonist Branford Marsalis with his quartet. On the next day, Polish jazz musician Piotr Schmidt and his outstanding quartet will give a concert in tribute to Tomasz Stańko, a famous jazz trumpeter and composer. Eminent Polish singer Dorota Miśkiewicz will appear on March 4 in the company of her father Henryk Miśkiewicz, a legend of Polish jazz, saxophonist and composer, and musicians they have invited. They will present a premiere programme with compositions written by the main stars of the evening. In the following days, the audiences will listen to many other concerts, including one by violinist and composer Michał Urbaniak, another Polish jazz icon, who will present his latest project commissioned by the organisers of the festival. Entitled “Urbanator Śląski,” it will combine jazz with the traditional music of the region of Silesia. Wojtek Mazolewski Quintet will play compositions from their album “Polka.” This year, the role of artist-inresidence will be performed by Pat Metheny. He will conduct master’s guitar workshops and will play during the final concert at the concert hall of the Polish Radio National Symphony Orchestra (NOSPR) in Katowice.

ATENEUM THEATRE IN WARSAW IS CELEBRATING THE 100TH ANNIVERSARY OF POLAND REGAINING ITS INDEPENDENCE WITH THE PLAY “FANTAZJA POLSKA” (POLISH FANTASIA) DIRECTED BY ANDRZEJ STRZELECKI.

The intimate historical comedy for just a few actors, written by Maciej Wojtyszko, is inspired by the figure of Jan Paderewski, a world-famous Polish pianist and composer, but also a diplomat and statesman. The main protagonists are Paderewski and US President Thomas Woodrow Wilson. The play directly refers to historical developments: Paderewski’s successful lobbying for Poland in the United States. Thanks to his efforts, a point concerning the establishment of an independent Poland was included among the famous Fourteen Points which the US president presented to Congress in 1918. The play portrays several colourful figures with great tenderness. It is not a monument in honour of the musician, but a humorous story about the behindthe-scenes mechanisms that rule politics, details and coincidences which have an impact on it, and finally about women’s influence. The cast includes Marzena Trybała as Helena Paderewska, Krzysztof Tyniec as Ignacy Paderewski and Marek Lewandowski as Thomas Woodrow Wilson. Thanks to English subtitles, people who do not speak Polish also have an opportunity to immerse themselves in this world. The next opportunity to see the comedy will be in late February and early March.

NEW RELEASES

WOJTEK MAZOLEWSKI QUINTET – “POLKA” – WORLDWIDE DELUXE EDITION – WHIRLWIND RECORDINGS – CD

For a dozen or so years Wojtek Mazolewski has enchanted Polish and international audiences with his inimitable music. Wojtek Mazolewski Quintet deserves special attention among the numerous projects of this excellent Polish double bass player. Mazolewski and his musicians – Joanna Duda (piano), Marek Pospieszalski (saxophones), Oskar Torok (trumpet), Qba Janicki (drums) – are artistic heirs to world-renowned Polish jazz icons, like for example Krzysztof Komeda. On the other hand, they play new music understandable to young audiences. They prove it again with their “Polka.” It is a kind of a wanderer’s diary, hence the titles: “Roma,” “Berlin,” “London,” “Kraków,” and “Bangkok.” They represent mature and well-balanced jazz playing, full of finesse and thoughtfulness, although not devoid of stronger free-jazz accents. Mazolewski’s adventure with “Polka” has lasted for quite a long time now. Released in 2014 in Poland, it was a sales success, earning a Platinum Album Award, and Mazolewski gave more than 200 concerts in 21 countries in venues filled to capacity. In 2018, the album had its international release by Whirlwind Recordings. Its reception was enthusiastic. The prestigious DownBeat Magazine called it one of the five best jazz albums of the year. Now, this special international edition is also available in Poland. The new version does not contain Nirvana or Rage Against The Machine covers. Instead, the musician presents his vibrant and fruity interpretation of “Theme de Yoyo”.

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CULTURAL MONITOR

STANISŁAW SOYKA – “MUZYKA I SŁOWA” (MUSIC AND LYRICS) – UNIVERSAL MUSIC – 2CD

For several decades Stanisław Soyka has been one of the best known Polish jazz and pop singers. He is also an excellent pianist and composer. “Music and Lyrics” is the first album exclusively with his own compositions and lyrics in 15 years. In recent years the artist has written and performed music to the poems of Shakespeare, Czesław Miłosz, John Paul II and Agnieszka Osiecka. He has also sung Czesław Niemen’s songs. He calls his latest album “tongue-in-cheek folk.” It is inspired by the music of the late 1970s, rhythm & blues, reggae and simply ballads. The new songs are natural, simple and genuine. The strongest points of the album are atmospheric melodies, Soyka’s interesting and soft voice, and his band composed of outstanding jazz musicians – Antoni Gralak (trumpet), Alek Korecki (saxophones), Przemek Greger (guitars) and Zbyszek Uhuru Brysiak (percussion instruments). Plus moderation in the use of words, harmony and rhythm. The album is really interesting. I have to admit that it was only after some time that I started to appreciate its distinctness. The album differs from the previous ones recorded by Soyka. It is only in its moving final part that one can hear his characteristic piano. The album has its character and this is perhaps what should be valued the most. Composed of two CDs, it also contains fragments of the concert at Kamienica Theatre given in 2018 to mark the 60th anniversary of Telewizyjny Kurier Warszawski, the oldest news programme in Polish public television.

VOO VOO – “ZA NIEBAWEM” – AGORA – CD

For nearly 35 years they have been showing that rock is a broad-ranging genre of music and that it may be a sphere of conscious choices for artists. Each of their albums is a message sent to the audiences. What is this new study album entitled “Za niebawem” (Soon) like? Just like its title, it is mysterious, perverse and ambiguous. Music that cannot be pigeonholed is the most interesting. Voo Voo has consistently made this kind of music in the rock version, however containing also many non-rock influences. The same is the case with this album. Although it is probably more lively and with stronger guitar accents than its more subdued predecessor, the album does not seem to be very distant stylistically from the previous one, “7”. The lyrics and music, written by frontman Wojtek Waglewski this time as well, have a character. The lyrics, full of directness but also ambiguity, and the instrumental sphere that complements it are like the dance of the couple portrayed in Krzysztof Kokoryn’s painting on the album’s cover. Just wait a moment and they will leave these walls to dance further and further away, competing against tumbling clouds in the sky and bad times.

MISIA FURTAK – “CO PRZYJDZIE?” – AGORA – CD

Misia Furtak is a young Polish vocalist and bassist, known from the TrèsB.Solo band as Misia Ff. She has been honoured with the Grzegorz Ciechowski Award of the City of Toruń for her album “Epka” released in 2013. Five years after that release, the artist introduces herself with her full name. One has to admit that her music is hard to define in simple terms. There is much going on here when it comes to music, with minimalist keyboards, delicate strings, clarinet, piano, tough and harsh guitars, there are no percussion instruments. Lyrics are mainly in Polish, but there are also a few written in English. And somewhere between the words and sounds one can sense the therapeutic qualities of this album in which the artist looks inside herself. “It is an album about changes, both sudden and gradual ones, which we do not notice. About fear of change and its irreversibility,” Misia Furtak says. She tells the rest with her album. At times, this artistically coherent mosaic take the shape of a real hit with a special and extraordinary feel. And at other times, it seduces us with its mischievousness, brilliancy, perversity or melancholy.

“JAK PIES Z KOTEM” (LIKE CATS AND DOGS) – DIRECTED BY JANUSZ KONDRATIUK – GALAPAGOS – DVD One of the most important productions of 2018, Janusz Kondratiuk’s latest film, inspired by a real-life story, is an intimate picture of family relations. Its protagonists are filmmaker brothers Andrzej (1936-2016) and Janusz Kondratiuk. The first was the director of cult comedies and award-winning poetic films such as “Słoneczny zegar” and “Wrzeciono czasu.” The latter has earned a place in the history of Polish cinema with cult comedies, like for example “Dziewczyny do wzięcia.” When the elder brother Andrzej – in this part Olgierd Łukaszewicz – suddenly falls ill the younger one – portrayed by Robert Więckiewicz – decides to take care of the sick brother, despite the wall of misunderstanding they have built between themselves over the year. One layer of the film tells about death, saying goodbye and something very said. But it is clear to everyone who knows the cinema of the Kondratiuk brothers that the director does so with a large portion of his specific humour. Let’s remember that in its deeper layer it is also a film about love and interpersonal relations. What I have like very much in this film since its cinema premiere is that it is not sentimental. The story is told and played without unnecessary mawkishness, but it is still moving. It is really worth entering the world of the Kondratiuk brothers again because their experience is the experience – past, present or future – of many viewers. Films of this kind show, in a beautiful and simple way and without pomposity, what is the most important in our life. 2/2019 polish market

CULTURE

A PLACE MARKED BY

HISTORY

AND

VISION

This year, it is 400 years since the completion of the redevelopment and expansion of the Royal Castle in Warsaw commissioned by King Sigismund III Vasa. The Vasa dynasty ruled in the Kingdom of Sweden (1523-1654) and the Polish-Lithuanian Commonwealth (1587-1668). To mark this special anniversary, 2019 has been proclaimed the Vasa Year. The programme of celebrations at the Royal Castle includes concerts, scholarly sessions and especially four exhibitions. The newly recreated Lower Garden is scheduled for opening in May 2019, marking the completion of the process of rebuilding the Castle from ruins after the Second World War.

Maciej Proliński

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he royal residence in Warsaw owes its present appearance to the transformation of its architecture in the times of King Sigismund III Vasa. We know about this undertaking in detail thanks to an unusual document placed at the top of the Castle’s tower on February 4,1619. It states that the main construction works, started at the end of the 16th century, had been completed. The original parchment document with the Latin text describing Sigismund III Vasa’s actions and work, including construction works on his main residence, has not survived. We know the content of the text from a 19th-century translation published by Jan Ursyn Niemcewicz in one of the volumes of his “Collection of Memoirs about the Old Poland.” “The Vasa era which produced the Castle was European through and through, with contacts, the adoption of new

patterns and their exchange between Western Europe and Poland,” says Director of the Royal Castle Prof. Andrzej Fałkowski. “It is an excellent opportunity for broadening our perspective. The Royal Castle is associated with the 18th century, the era of King Stanisław August Poniatowski. We want to show its earlier history connected with the Vasa dynasty. With its architectural transformation 400 years ago, our Castle became not only a royal seat, but also a new place for parliamentary sessions and a centre of political and cultural life of the 17th-century Poland.” The Royal Castle will mark the special anniversary by organising a series of events under the slogan “The Vasa Year 2019.” The first event, an exhibition entitled “The King is Getting Married! The Stockholm Scroll – a Treasure of the Royal Castle in Warsaw,” opened at the Royal Library on February 5 and will be on until March 10.

CULTURE The Stockholm Scroll is a 15-metre-long painting. More than 400 years old, it depicts the ceremonial entry into Kraków, then capital of Poland, of the wedding procession of King Sigismund III and Archduchess Constance of Austria. The exhibition is a rare opportunity to see the scroll. The last time it was shown to the general public was in 2002. Painted on paper by an anonymous artist, or artists, using the watercolour and gouache technique, it shows a procession of nearly 600 persons: members of the royal court, noblemen, soldiers and foreign guests. There are also horses parading in the procession. “It is an invaluable document. It reveals the intricacies of the court ceremonial of 400 years ago and is also a review of the fashion of the time, both Western and Polish,” reads the description of the Stockholm Scroll accompanying the exhibition. The Scroll most probably left Poland as a war booty acquired during the Swedish invasion of 16551660 and found its way to Stockholm. In 1974, it was donated to the Royal Castle by Swedish Prime Minister Olof Palme. The second exhibition planned by the Royal Castle for 2019 - “To Rule and to Dazzle. Jewels and Jewellery in Poland in the 16th and 17th Centuries” – will take place between May 29 and August 4 as the first ever exhibition devoted to the jewels of the old Poland. “An exhibition like that has never been staged at the Royal Castle, in Poland, or elsewhere in the world,” says curator Danuta Szewczyk-Prokurat. “Among the over 400 exhibits borrowed from a few dozen owners there will be ones which can definitely be called Polish, showing the artistry of jewellers coming from all parts of the Polish-Lithuanian Commonwealth. The items fortunately survived periods of turmoil, including wars, partitions and numerous plunders.” The oldest two metal covers protecting the icon of the Virgin Mary from the Jasna Góra Monastery in Częstochowa will also be shown at the exhibition and for the first time in Warsaw. Each cover is set with several hundred precious stones – one mainly with diamonds and the other with rubies. The Lower Garden at the foot of the Royal Castle close to the Vistula River embankment is to be opened in May, most probably on the name day of King Sigismund III Vasa. The area, located in the Vistula’s old river bed, will be open to Warsaw residents and tourists. The recreation of the Lower Garden will mark the completion of the Castle’s rebuilding process, initiated in 1971. The panorama of the city from the side of the Vistula will become complemented with an important feature which was missing for a long time. Another exhibition, entitled “The Gallery of Portraits of Polish Kings. Images of the Rulers on Medals and Coins,” from September 10 until October 13, 2019, will be a presentation of Polish monarchs’ depictions on numismatic items since the times of King Bolesław Chrobry until the fall of the PolishLithuanian Commonwealth at the end of the 18th century. “Coins and medals from the Vasa period, when medallic art in Poland and Europe was of a very high level, will occupy a special place at the exhibition,” says Michał Zawadzki, the curator of the exhibition. “Visitors will have an opportunity to see many unique and very valuable items from that period. Works of the best Gdańsk medallists: Samuel Ammon, Jan Hoehn the Elder and Younger, and Sebastian Adler will take pride of place.” The Vasa Year will end with the exhibition “The World of Polish Vasas. Space – People - Art.” It will be on from October 24 until January 14, 2020, with almost 300 works of art,

“

WITH ITS ARCHITECTURAL TRANSFORMATION 400 YEARS AGO, OUR CASTLE BECAME NOT ONLY A ROYAL SEAT, BUT ALSO A NEW PLACE FOR PARLIAMENTARY SESSIONS AND A CENTRE OF POLITICAL AND CULTURAL LIFE OF THE 17TH-CENTURY POLAND."

decorative objects and documents displayed in 11 rooms of the Castle. The core of the exhibition and its most impressive part will be a selection of splendid portraits depicting members of the Vasa family and their relatives coming from European collections, including those located in Madrid, Vienna and Stockholm. Among the flagship works will be the famous “Sigismund’s Panorama” from the Munich Alte Pinakothek – a picture documenting the Castle’s appearance after its redevelopment – and “The Taming of Heresy” from the same collection, probably painted partly by King Sigismund III Vasa himself. Selected masterpieces from the dispersed Vasa collection, including Guido Reni’s “Abduction of Europa” from London’s National Gallery, will be shown in one of the rooms. An important part of the Vasa Year events will be a jubilee series of concerts related to musical activity of the Polish Vasas. Among the musicians who will give concerts at the Castle will be some of the best performers - Wrocław Baroque Ensemble of the National Music Forum under Andrzej Kosendiak and the Gregorianum Men’s Ensemble under Berenika Jozaitis, with an extremely interesting and timeless repertoire. It will include pieces written by such composers as Marcin Mielczewski, the best known Polish composer of the Baroque era, Claudio Monteverdi and Alessandro Scarlatti. An important part of the 2019 programme will be educational events for children and adults, like for example a photo exhibition documenting visits of Pope John Paul II • at the Royal Castle, and new publications.

1. “The Gallery of Portraits of Polish Kings. Images of the Rulers on Medals and Coins” 2. “The King is Getting Married! The Stockholm Scroll – a Treasure of the Royal Castle in Warsaw” Archives: The Royal Castle

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CULTURE

A WORLD OF COLOURED

TRIANGLES

"I've been part of the art world and show business since I was a child. Through painting, I give people positive energy, I transport them to other worlds, the deepest recesses of our soul, lust, freedom and dreams. I have discovered a simple form. It's triangles and I can’t paint anything else. But in this form I can capture anything, even the whole world. For over twelve years, I've painted over 200 oils on canvas, not counting sketches and other works. I wouldn’t be surprised if, throughout my lifetime, my output ran into thousands of works which would make me known all over the world," says ROBERT WORLD in an interview with Maciej Proliński.

You feel Polish, but above all, you feel you’re a citizen of the world, as you say, which started with your foreign trips as a child. How did this affect your creativity? Since my childhood I have spent at least a month at a time somewhere in Prague, Austria, Paris, Germany, the Netherlands. There, I saw visually stunning things. When it comes to Poland, things used to be different, I'm talking about the 1980s and 90s. Vienna in Christmas time was something amazing and magical with all those beautiful Christmas decorations and smiling . It made you feel safe. Years later, Warsaw, where I have lived offand-on for the past 15 years, its Nowy Świat Street and the Old Town, also look spectacular. PM

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Incidentally, I shot a short film there while I was a student. Warsaw now has plenty of restaurants and many exciting cultural events are organised every night. Beginning in my childhood, I admired art in museums, and on a daily basis I visited my uncle who is a painter, at his studio. So I knew, on the one hand, what Mona Lisa looked like up close, and on the other, how to paint. I just needed something to trigger the artist in me. According to some, the concept of art is impossible to define, what’s it like for you? In my opinion, to create something you have to feel something in your heart. To found a company you also need to feel something PM

in your heart, the same goes for painting or film, only in art it goes much deeper. Art is a combined product of desire, suffering, sensitivity and our experiences, which in my case finds expression in painting. But I don’t know why I’ve picked coloured triangles. So there’s a mystery to it. I studied painting at the Jan Długosz Academy in Częstochowa and acting at the Warsaw Film School. I wrote poems, I even published a volume of poems. I have written three yet unpublished novels. I often play in movies. When I come back home and I’m bored, I write and sing songs and then I'm not bored. (Laughs) All art schools are definitely elite schools. Some teachers are outstanding, but

CULTURE I’ve also noticed that there are some teachers, unfulfilled artists, who teach art. It does more harm than good. In an art school, you should learn techniques, gain knowledge and learn to be determined. Then, you should look for an idol in your field and strive to become even better than your idol. You need to fall in love with what you do, because there are a lot of difficult moments along the way, and only if you love what you do and you are strong, you can survive tougher moments, rise up again and reach even higher. I would also like to ask you about your painting fascinations, your masters. Who was your first most important painter? William Turner, followed by Vincent Van Gogh, no doubt about it.

imagination and emotions. And this opens up room for our dreams, feelings and memories. Then comes the physical act of creation with the use of a tool of your choice. An artist should be familiar with art and philosophy, but also with the way the modern world works. You need to know the rules of marketing and promotion. In today’s world, without a good art dealer, without the help of an agent, you cannot enter the art market and survive on it. Let alone the international art market. That's why it’s nice to have someone looking after your interests.

A characteristic feature that distinguishes your works among other works by contemporary artists, are coloured triangles. Is that what you’ve found on your artistic path? Yes. They first appeared some twelve years ago, when the first variation featuring multicoloured forms was born. Since then I’ve only been painting coloured triangles. With their help, I paint not only portraits, landscapes, well-known places and scenes, but above all I express my emotions. I frequently show scenes of passion and love. I have found a simple form - my coloured triangles and that’s all I paint. I can’t really paint a realistic portrait or still life, but with the use of coloured triangles, I can do it extremely well. I have no idea why. Art collectors now knock on my door to buy my works for their collections. I can feel they believe in what I do, seriously. The official opening of the Museum of Coloured Triangles took place in the Norwegian municipality of Voss in September 2016. The local bank provided a red carpet and purchased a painting. The museum was very well received and newspapers wrote about it. It shows the artist's path from the moment he conceives an idea to the creation of a work sold at a gallery. The museum is complete with a dream room. I also show my films there. PM

The work of an artist, not just of a painter but of a musician, too, is strongly connected with the sphere of emotions. It’s good to get an insight into it, to find out about the underlying emotions. But do people actually see others in this way? And what do we look for anyway, what are our expectations? The tool used by an artist is not all that matters, is it? I couldn’t agree more. It is not a tool that creates an art work. At its centre must lie a human being. An individual person’s fate, story, PM

What’s your view of the Polish art market? Are Poles more keen to buy art works than 20 years ago? The Polish art market is still very young. Its potential is naturally associated with the country’s economic development since 1989. There are more and more wealthy people who are beginning to feel the need to buy art. For now, the market is still growing and it will probably take years before there are more private clients. Today, important companies in this market are foreign companies that build their own collections. There are many places that perfectly function on this market - in Warsaw, in Krakow. They promote Polish art well. So I am watching the market change. We are approached by buyers, for whom cash is no object.

“

I PAINT NOT ONLY PORTRAITS, LANDSCAPES, WELL-KNOWN PLACES AND SCENES, BUT ABOVE ALL I EXPRESS MY EMOTIONS."

You are known not only for your extraordinary images that fetch very high prices in the art market. You are more and more recognisable in business circles. So it's hard not to ask about the role of private sponsors in your career. We should remember that many recognised artistic initiatives, big and small, would not have materialised without the support of investors, private sponsors. Sponsorship of culture fulfils many functions, but it is the most effective as part of a communication strategy. It provides the opportunity to reach wider audiences and create positive associations between the sponsor and the initiative he supports. Such support for culture gives companies the opportunity to build a brand, using the wealth of associations that the art world brings. Thanks to such sponsorship, entrepreneurs can present themselves as active, responsible and culturally and socially aware participants of public life. However, for sponsorship to make sense, it must be a longterm undertaking, and this involves large sums of money. If we think about building a company’s image through support for artistic activities, a one-off sponsorship of a random concert or exhibition opening night, is not enough. A company’s image can only be PM

built if you include sponsorship in a carefully planned long-term strategy. This enables a lot of really interesting, creative undertakings to take shape. I’m hopeful about the future of such sponsorship in Poland. Take a young artist who is taking the first steps in the art world without knowing what exactly to focus on. What would your advice be in this case? Fall in love with what you do, like in the most beautiful girl. Try to imagine yourself in ten years’ time - your art, your goals. Imagine where you’re going to live, what friends you’re going to have, and see how you feel about it. For ten years from now you will have achieved it all and then the question will be what to do next. PM

What do you have up your sleeve in 2019? Now I’m working on board games dealing with art. I’m looking for an investor. A few years ago, I designed and, with the help of a footwear company, I released ladies’ shoes covered with my images of coloured triangles. It was a limited edition, each item was numbered and accompanied by a certificate. I have recently produced a TV show about art, travel and passion, which I also host. It’s called "From the art studio into the world." Now I’m talking to several TV channels where it could be shown. PM

Will there be any exhibitions? This year I’m planning to hold large solo shows in Singapore and in Thailand. PM

What would you like to happen in 2019? I want to communicate with ordinary people through my paintings, through exhibitions. I want to reach a diverse audience. Polish exhibition-goers tend to be a bit distrustful and reserved when it comes to modern art. I would like them to simply have the oppor• tunity to find out more about it. PM

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CULTURE

VIVA

MONIUSZKO “Viva Moniuszko” is the latest exhibition in the Opera Gallery at Teatr Wielki – Polish National Opera in Warsaw. Devoted to great Polish composer Stanisław Moniuszko to mark the 200th anniversary of his birth and the proclamation of 2019 as the Year of Moniuszko, the exhibition will be on until March 3. The Gallery is open on Wednesdays from 10 am to 5 pm and one hour before each performance and during breaks. It is worth remembering about this gallery if you have come to Teatr Wielki – Polish National Opera for a concert, ballet or opera.

Maciej Proliński

he Opera Gallery is a joint project of Teatr Wielki – Polish National Opera and the Academy of Fine Arts in Warsaw. Its initiators were Director of Teatr Wielki – Polish National Opera Waldemar Dąbrowski and Rector of the Academy of Fine Arts Adam Myjak. Every year classic works of Polish avantgarde artists, the generation who laid foundations for modern Polish art, are shown at the gallery. “The idea is a simple consequence of the Romanticist concept of “correspondance des arts” – a community of artists and arts under one roof. The gallery at the opera house means the desire to fill this space with yet another value,” says Waldemar Dąbrowski. “In previous seasons the gallery, which has become a permanent fixture in the space of our institution, has always occupied a very important place in its life. We presented here works of artists who create modernity in Polish art: Tadeusz Dominik, Franciszek Starowiejski, Jerzy Mierzejewski and others.” It is worth remembering that last year, when we celebrated the 100th anniversary of Poland regaining its independence, the Opera Gallery staged a magnificent monographic exhibition devoted to Ignacy Jan Paderewski, a great Polish musician and statesman.

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In the Year of Moniuszko, time has come for paying tribute to this great composer and father of Polish opera. The exhibition at the Opera Gallery shows Moniuszko in a pop-art visual setting, promoting him and bringing him closer to the visitors as an absolute music icon. The exhibition presents very interesting documents and facts from the life of Moniuszko contrasted with other outstanding composers. Most of the exhibits are mementoes, paintings, family portraits and musical scores – hand-written ones and first printed editions. Interestingly, the exhibition also features a karaoke booth where you can sing your favourite Moniuszko hit. “The greatest musical genius next to Chopin, the Polish Schubert, the absolute precursor of the operatic genre in his homeland. Everybody knows what ‘Moniuszko’ sounds like. But what was Stanisław actually like? Where did he draw his inspiration from, where did he travel and whom did he keep in touch with? The monographic exhibition organised as part of the celebrations of the Moniuszko Year presents the composer’s work as well as his activity as a conductor, teacher and director of the Warsaw opera house,” says Marcin Fedisz, the curator of the exhibition. “The surviving iconographic documents show a portrait of Moniuszko

closer to today’s imagination. Our exhibition is designed to popularise the music of Moniuszko, a fascinating composer affected by the ill fate of his coat of arms Krzywda [Krzywda means injustice in Polish – ed.]. Indeed, injustice has been done to him because little is said about him being a very prolific composer who wrote more compositions than Chopin and many other musicians.” We wrote extensively about Stanisław Moniuszko (1819-1872), the father of Polish national opera and Polish artistic song, in the January issue of “Polish Market.” Moniuszko was the first conductor of Polish Opera at Teatr Wielki in Warsaw: he was appointed to the post on August 1, 1858 and over the following almost 15 years successively staged all his operas. He is the composer of “Halka,” probably the most famous Polish opera telling a story of the tragic love between a nobleman, Janusz, and a highland woman, Halina. In the January issue, we also wrote about events of the Moniuszko Year. Now, let us add that in this special year the exhibition at the Opera Gallery is a very good source of reliable knowledge about Moniuszko, presented in an ingenious, attractive and unconventional way by Prof. Marcin Gmys, an outstanding musicologist who has designed the programme • of the exhibition.

ECONOMY

AWARDS FOR BUSINESS, CHALLENGES FOR BUSINESS

The 25th Grand Gala of the Business Centre Club (BCC) was held at Warsaw’s Teatr Wielki – Polish National Opera on January 26, 2019. It summed up the 28th edition of the prestigious Polish Business Leader competition. The bosses of the best Polish companies received Polish Business Leader Golden Statuettes while the previous years’ laureates who had retained their position on the market were granted Diamonds for their statuettes. The BCC Special Prize was awarded to Gen. Frederick B. Hodges, former commander of the US Army Europe.

Maciej Proliński

n his welcoming speech, BCC President Marek Goliszewski said: “Last year, the economy flourished: there was a 5% GDP growth rate, good situation in public finances, low budget deficit and higher public investment. With a 4% rate of return, growing tax revenues and low unemployment, Minister Czerwińska [Minister of Finance Teresa Czerwińska – ed.] has a good reason to be satisfied. This was a result of hard work by entrepreneurs and a favourable situation in the Polish and global economy. But we are at the peak of the business cycle. The prospect of a slowdown presents new problems to businesses and the government. A reduction in the rates of social insurance contributions and CIT, the streamlining of publicprivate partnership and high absorption of EU funding is a response to their expectations as is the government’s decision to expand Poland’s Special Economic Zones to cover the whole country. But the tight labour market is still a huge problem. Half a million of new pensioners left the labour market. We have almost hit the wall in reducing unemployment and 75% of employers are on the lookout for new employees. Before Ukrainian citizens have left for Germany we should adopt a new law to provide a stronger encouragement for foreigners to work in Poland legally and long term. Another challenge is implementing an energy

policy based on a faster process of replacing coal with wind and solar power.” To conclude his address, President Goliszewski pointed to the importance of political security for the development of business. “Friendship with the United States, a NATO based on solidarity, the euro currency and a stable European Union are our priorities,” he stressed. Since 1992 BCC has awarded Special Prizes to outstanding personalities from outside the business community for contributing to the development of entrepreneurship and the market economy in Poland. Among the laureates of the prize are Margaret Thatcher, José Manuel Barroso, Władysław Bartoszewski, Bronisław Komorowski, Tony Blair and Norman Davis. This year, the Golden Statuette for contributing to the cohesion of the North Atlantic Alliance, strengthening its eastern flank, stimulating debate on solidarity among NATO members and friendship towards Poland was presented to Gen. Frederick B. Hodges, former commander of the US Army Europe. Addressing those gathered at the Gala, the retired lieutenant general, who is now Pershing Chair in Strategic Studies at the Center for European Policy Analysis (CEPA), a think tank with offices in Washington and Warsaw, said: “The growing presence of China in Central and Eastern 2/2019 polish market

EVENTS

Beata Drzazga, President of BetaMed SA received First Diamond to the Polish Business Leader Golden Statuette

Europe is not necessarily what we want. We have recently become aware of that in connection with the Huawei issue.” General Hodges also spoke about threats to NATO, including Poland and the United States, from Russia. He encouraged Poland to cooperate closer with Ukraine and Belarus to help them become independent from Russia. He also stressed that Vladimir Putin’s aim was to polarise and divide both Polish and American people. Polish Business Leader Golden Statuettes went this year to Arche, Atem-Polska, Bibus Menos, Edbak, EmtSystems, Medim, Municipal Transport Company (MZK) in Toruń, Mirosław Wróbel, Przedsiębiorstwo RolnoPrzemysłowo-Handlowe Kandy, Stal Systems, Tadex, Vorwerk Polska and Warbud. Among the winning companies was also BetaMed, which received its First Diamond for the Polish Business Leader Golden Statuette, and Ankol, which received its Third Diamond. When assessing the competition entries,

Business Centre Club (BCC) was established in 1991 as a multifaceted institution supporting enterprising Poles. It is an elite club of entrepreneurs and the largest organisation of private employers in the country. BCC has 2,500 members: private individuals and companies. Its members provide employment to more than 400,000 people, have combined revenues of PLN20 billion and are based in nearly 250 cities. The organisation has 23 regional chapters throughout Poland. Its membership is made up of representatives of all sectors, international corporations, financial and insurance institutions, telecom companies, the largest Polish producers, higher educational institutions, publishing groups and well-known law firms as well as lawyers, journalists, scientists, publishers, physicians, the military and students.

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the award committee had taken into account not only the companies’ business indicators and results, but also the quality and modernity of their products and their commitment to charitable activity. “Polish Market” awarded President of BetaMed Beata Drzazga with the Honorary Pearl 2017 award in the promoting social values category. And Ankol is last year’s laureate of “Polish Martket’s” Progress – Pearl of Innovation award. BetaMed is the largest medical company in Poland providing home and institutional care. It has operated on the market for nearly two decades and employs around 3,000 persons. BetaMed operates through its 91 branches in 11 provinces and a highly specialised medical centre in Chorzów. “When I was setting up BetaMed I wanted to show what care for sick people and the elderly can be like. I, together with all BetaMed workers, have always wanted to raise the standard and quality of our services. And we have managed to do so. Our goal has been to improve the quality of care for patients in Poland, especially the elderly,” Beata Drzazga said in the columns of “Polish Market.” Ankol is a company with long experience in the aviation sector. The company has been a supplier on the aviation market for more than 25 years. Quality, competence and high standards are the hallmarks of the company’s activity. It cooperates with the largest manufacturing and repair plants operating in the aviation sector in Poland and abroad. As a result, it is able to constantly expand its range of services and fulfil orders for defence ministry departments and other organisations from a few dozen countries. “Since the beginning of our business activity I have set the bar very high in order to build a strong brand recognisable on the global market,” Anna Kolisz, the company’s vicepresident and managing director, said in the columns of

EVENTS

The BCC Special Prize was awarded to Gen. Frederick B. Hodges, former commander of the US Army Europe

“Polish Market”. “Our effective cooperation on the markets that we are active on, reliability, respect for law and business ethics strengthen the company’s credibility.” As usual, Social Solidarity Medals were also awarded at the Gala in recognition of social involvement and assistance to those in need, for promoting the idea of corporate social responsibility and building social solidarity. This year, the medals were granted to BCC members who are shining examples of social sensitivity: President of PJB Ebejot

Andrzej Jaczewski, President of P4 Jean Marc Harion, President of Mat-Bud Jacek Rutkowski, President of Korporacja Radex Janusz Sobieraj, and Agata and Kamil Poraziński, who have for years supported deaf people. The Affabre vocal ensemble from Poznań and the Silesian Philharmonic Orchestra from Katowice gave a special concert for the Gala participants. An art auction organised by BCC and a fashion show are some of the events which took place during the cocktail party. •

Anna Kolisz, the company’s vicepresident and managing director of Ankol, received Third Diamond

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EVENTS Dla Ciebie zginął żołnierz, strażak, policjant, a dla mnie

tata

LET’S HELP THE CHILDREN OF HEROES MAGDALENA PAWLAK, President of the Dorastaj z Nami (Grow up Together with Us) Foundation, talks to Ewelina Janczylik-Foryś. The Dorastaj z Nami Foundation was established in 2010. Its aim is to provide long-term support to children whose parents have died or suffered serious injuries while on duty. How exactly is help provided to them? We operate in a number of ways. We provide psychological help to children and families who find themselves in a difficult situation, whether as a result of death or serious injury to a family member. Sometimes trauma related to an emergency situation appears even a few years after the incident. It may be triggered by various situations, the child performing in a kindergarten play, starting school, etc. We are prepared to help in cases like these. We approach each case individually. We also support parents by encouraging them to participate in various workshops, at a holiday school for parents. We publish brochures and guides addressed to them. We provide our children with financial help in education. The goal of each parent is to educate their children well so that they have a good start in adult life. I trust that parents who were killed in service also had the same goal. Thus, grateful for their dedication, we have PM

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decided to support their children's education. We facilitate access to it by financing school and university fees, private lessons and extracurricular activities. We provide care for children and young people up to the age of 25, provided they carry on their education. In order to operate well in this area, we provide counselling. What does a counsellor do - map out the educational path of a given child? The task of the counsellor is to get in touch with the child and family and accompany them in successive stages of education. An education adviser helps to choose the right forms of support and serves as a link between the Dorastaj z nami Foundation and the child’s family. The counsellor helps young people discover their strengths and weaknesses, to chart the path of development, to enable them to eventually enter the labour market. The counsellor also helps in everyday struggles, providing children with advice to enable them to gain experience. The counsellors are well-prepared in terms of psychological and pedagogical PM

EVENTS

background. An education counsellor supports the child, fills the gap left behind by the parent. Several meetings between the child and the counsellor are usually held each year. Sometimes these relationships transform into longterm friendships. How many charges does the Foundation have? Currently, 120 children are actively supported by the Foundation. Since the very beginning, we've helped over 200 children and young people. That's a lot, considering that sometimes our help covers the period from early childhood up to the age of 25. So it is a very serious, longterm commitment. PM

In what way are applications received by the Foundation? All the necessary forms are available on the Foundation's website, in the How we help / documents and applications section. The forms need to be completed and submitted to us to obtain assistance. It is essential to provide evidence that the death or injury occurred while the person was performing official duties. Psychological help and education counselling is offered to virtually all families, regardless of their income. When it comes to financial assistance, it is also necessary to document the family's income. We do our best to make this process as clear and free from red tape as possible. PM

How do you look for families that need help? There is just a handful of organisations which deal with the children of servicemen who died in service. We do not compete with each other. We cooperate. We inform each other about the needs of families affected by the tragedy. Often, it is the commanders and superiors of the deceased or injured who report their families to us. In addition, we have introduced a service and assistance programme, which is directly aimed at employees of public services and their families. As part of the programme, we offer advice on how to reconcile the demanding work with family life. We organise workshops, integrate the community, and in the event of an accident on duty, we look after relatives. Dozens of people put their lives on the line. That is why it is good to think about the risks involved in a particular job in public service. PM

Apart from helping children, your Foundation also shows society what modern patriotism and heroism is. Together, we're building the hero's ethos. Our aim is to spread the perception of a heroic act as a normal human reaction to an emergency situation. Performing a public service, one is exposed to such situations on a daily basis, which we stress is worthy of society’s respect and appreciation. We take care of the children of the injured or fallen heroes, because we want to fulfil their final wish: "If something happens ... remember about my children." To us, helping these children is a form of modern patriotism, a way to thank them for the dedication shown by their parents. As part of the Foundation’s national assistance programme “Coalition: Together for Heroes," children are admitted to the scholarship programme by the Presidential couple. Scholarships from President Andrzej Duda and First Lady Agata Kornhauser-Duda go to children whose parents

“

TO US, HELPING THESE CHILDREN IS A FORM OF MODERN PATRIOTISM, A WAY TO THANK THEM FOR THE DEDICATION SHOWN BY THEIR PARENTS."

were killed or injured on duty. For these children it is a clear sign that their mother or father was someone very important. In addition, we promote the hero's ethos through the exhibition "For you, a soldier, a fireman, a policeman has died. For me, it was my father." We present the profiles of contemporary heroes, parents of children in our care. The exhibition has already been held at the Overseas Service Veteran’s Centre in Wilsona Square in Warsaw, as well as at the Zajezdnia History Centre in Wrocław. It travels all over the country. We are constantly looking for partners who can offer us space to stage the exhibition. We want to show that the sacrifice of a person who saves our lives affects their entire family. Like other foundations, the Dorastaj z nami Foundation exists thanks to sponsors. Who are your main sponsors? Do institutions and corporations help, or do you rely on individual donations? We have two sources of financing, business and individual sponsors. Both of these sources are very important to us. We have created the programme "Mission: Always Faithful" because we are faithful to the final wish of a dying hero. We realise that everyone who puts their life on the line thinks about their family and would like to make their lives as good as possible. We encourage our donors to make monthly donations, which we will responsibly use for the needs of our clients. We want the programme "Mission: Always Faithful" to be introduced to companies, inviting not only employers or corporations, but also individual employees. We do hope that public response will be favourable. It is entirely up to the sponsor for how long they will be ready to support the Foundation. Every penny counts and it is even more valuable if it is a regular commitment. PM

The Dorastaj z Nami Foundation has received the “Polish Market’s” Honorary Pearl in the category Promotion of Polish Traditions and Patriotic Values. Do such awards matter? Do they motivate you in your further work? Or maybe the biggest reward is the smile on a child's face? Of course, putting a smile on the face of a child is the most rewarding experience. It is the source of the greatest satisfaction. However, such prizes as the Honorary Pearl do matter. Your award is not only a sign that you appreciate what we do, but also that you have noticed the problem and together we can pay tribute to the heroes’ memory. You can support the Dorastaj z Nami Foundation, which looks after the children of people who have died or been injured on duty, by naming the Foundation as the recipient of 1% of your income tax or through a donation. You • can find us on www.dorastajznami.org. PM

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AUTOMOTIVE BUSINESS

EUROPEAN CONGRESS OF LOCAL GOVERNMENTS TH

IN KRAKÓW

In April - several months after local elections in Poland and a few months before a Polish parliamentary poll and elections to the European Parliament - the southern city of Kraków will host for the 5th time the most important politicians, local government members, business people and local leaders at the European Congress of Local Governments.

he time of the Congress and its importance are special because it will be the first opportunity to sum up the activity of local authorities elected several months before. Additionally, the format of this meeting of local government members – the largest in Central and Eastern Europe – enables a wider discussion not only on the challenges that local governments in Poland and Europe are facing, but also areas where cooperation is needed with the central government, business, scientific units and non-governmental organisations. Around 2,000 persons from almost 40 countries will take part in the Congress. More than 100 journalists will be present to report on the over 60 events in its programme. Among the most important items on the agenda is the award ceremony in a competition for the best local government members. Last year, the title of the best rural municipality went to Kobierzyce and the best urban-rural municipality to Dziwnów. The awards for the best county, the best city with county rights and the best town went respectively to Pruszków, Gliwice and Legionowo. The western town of Nowa Sól won the Special Prize, the Golden Key of the “Wprost” weekly. As usual, discussions will be divided into individual thematic areas: finance, society, innovation, economy, environment, business and local government. Among those who have already confirmed their presence at the Congress are Zdzisław Krasnodębski, VicePresident of the European Parliament; Davit Gabaidze, Chairman of the Supreme Council

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of the Autonomous Republic of Adjara (Georgia); Risto Poutiainen, Governor of North Karelia (Finland); Olga Germanova, a deputy to the State Duma of the Russian Federation and head of the Union of Women of Russia; Gianfranco Miccichè, President of the Sicilian Regional Assembly, in 2005-2006 Italian Minister for Development and Territorial Cohesion; Guillermo Ramirez Martin, Secretary General of the Association of European Border Regions; and Eva Hallström, councillor of Varmländ (Sweden) and head of the Working Group on Energy and Climate Change at the Assembly of European Regions. Last year, much attention was devoted to the need to make legislative changes and broaden the powers of local governments as well as the need to change relations between the state and local governments. This year’s Congress will be an opportunity to answer the question of what has been achieved in this respect. In keeping with the motto “Local Government – Together for the Future,” an in-depth discussion is expected on solutions to such questions as alternative sources for financing the development of Polish regions in the context of the EU’s new financial plan, financing cross-border cooperation, local governments’ cooperation with research and development centres, investment in smart solutions and the integration of migrants. Participants in the Congress will also be trying to jointly define the notion of “city friendly to inhabitants.” They will be considering how to develop tourism in regions with a rich historical heritage, how to fight smog,

how to successfully pursue policy on the elderly and how to support preventive healthcare in the face of the growing threat of diseases of civilisation. The above are only some of the many problems on the agenda. “The European Congress of Local Governments does not deal with abstract and academic topics. We talk about issues concerning life in cities, their development and everyday problems, something that is very real and close to everyone,” says Prof. Jacek Majchrowski, Mayor of Kraków, the city which will host the event. “We co-organise the Congress because we feel we a leader in many spheres of city life, we believe we have something to share with others and at the same time we are interested in other people’s reflections.” The organiser of the European Congress of Local Governments is the Foundation Institute for Eastern Studies, which also organises the Economic Forum in Krynica. Head of the Programme Council of the Economic Forum in Krynica Zygmunt Berdychowski clearly defines the direction of discussion on the future of local government: “Local government has more and more tasks and, consequently, should receive more money for carrying them out. But this should come from its own income rather than subsidies. It has to operate independently.” The Congress will be held on April 8-9, 2019 at the ICE Congress Centre in Kraków. See the website www.forum-ekonomiczne.pl for all information about the Congress and a link to the registration page. •

EVENTS

EUROPE – UKRAINE. WHAT'S NEXT? The 12th Europe-Ukraine Forum and the 1st Slovak Forum was held in Jasionka, outside the south-eastern city of Rzeszów, on January 24 and 25, 2019. Speaker of Parliament Marek Kuchciński during the Forum

he Europe-Ukraine Forum, held since 2007, is one of the key events organised by the Institute for Eastern Studies. The main topic of the 12th Forum was the continuation of the reform and modernisation process in Ukraine in the context of possible changes in Kiev’s ruling elite as a result of the presidential and parliamentary elections planned for 2019. The Slovak Forum, held for the first time, is a new initiative designed to enhance relations between Poland and Slovakia and strengthen discussion about cooperation among countries in the region. Despite the crisis which is still visible in Ukraine, one can see clear signals indicating that the economic situation is improving. Economic and political cooperation between Ukraine and Western countries has also strengthened. But public discontent is growing because of poor results of reforms, deepening political divisions, economic instability and widespread poverty. Participants in panel discussions and invited guests talked about Ukraine’s most urgent problems and its relations with European Union countries. As a result, the following questions remain very relevant in 2019: what policy will the authorities to be chosen in the forthcoming elections be pursuing and will Ukraine be able to exploit the opportunities offered by its cooperation with the European Union and NATO. Another question is what further measures Kiev and its Western partners

should take to ensure a steady development of the country and its integration with European and Euro-Atlantic structures. Over 300 speakers – experts who excellently know challenges facing Ukraine, Poland, Slovakia and European Union countries – took part in more than 50 panel discussions focused on business, economic and social developments, European integration, Ukrainian reforms and international policy. More than 1,000 persons from almost 30 countries registered for the two conferences. Participants in the conferences also talked about the Three Seas Initiative, which is gaining in popularity. Twelve countries of Central and Eastern Europe have signed up for it. New challenges now facing European countries mean the need of better cooperation in the area of transport and energy. Ukraine, although very much interested in such cooperation, has not taken part yet. Participants in the discussion focused in particular on Kiev’s possible participation in this initiative and potential measures which should be taken for Ukraine to be covered by the strategy for the development of joint infrastructural and energy projects. The participants pointed out that Central and Eastern Europe was a mosaic of various cooperation initiatives among individual countries. One example is the Visegrad Group. These formats complement one another and are not competitive. It is possible to draw on them and propose similar solutions for the Three Seas Initiative: involve Ukraine in individual

projects and think about a “Three Seas+” format modelled on V4+. The most important sideline event was the 2nd Eastern Fair. “The Eastern Fair, in which exhibitors from Europe and Ukraine took part, was not only an opportunity to show flagship products and regional attractions, but also a unique chance of sharing experience,” says Zygmunt Berdychowski, the founder of the Institute for Eastern Studies and head of the Programme Council of the Economic Forum in Krynica. “Nearly 70 exhibitors from various industries, including the food-processing, construction, transport, pharmaceutical and financial sector, presented their products and services at the Podkarpackie Province Congress and Exhibition Centre on 4,000 square metres of exhibition space. The first day ended with a gala. Its highlight was the presentation of the Carpathian Joint Values Award to film director Jerzy Hoffman and Oleg Sentsov, a Ukrainian filmmaker and political prisoner in a Russian penal colony. The award is granted to outstanding personalities and institutions from countries of the Carpathian region who have contributed to promoting common European values in Central and Eastern Europe, and the development of cooperation and understanding in the region. The second day of the Forum was a time for young inventors and innovators. The day ended with a grand gala of start-ups, with prizes awarded to the best young entrepreneurs. • 2/2019 polish market

FOOD INDUSTRY

TRACING THE ORIGIN OF MEAT IS A MUST

JÓZEF SKARZYŃSKI, Board Member of the Polish Association of Cattle Breeders and Beef Producers talks to Ewelina Janczylik-Foryś about the elimination of pathologies with the use of modern technologies. How would you comment on a report by the TVN station on the illegal slaughter of diseased cattle and the fact that the meat was sold on the market? It was a one-off case. The situation which occurred in the slaughterhouse which was featured in the report is an unpleasant exception, for which the entrepreneur is entirely responsible. It was done with the full awareness that this practice was in contravention of Polish law. Regrettably, material benefits often take precedence before the letter of the law. Most farms produce very good quality beef. Some cattle suffer injuries, some get sick. We must remember this, but this incident is shocking. It is a clear example of irresponsible behaviour in placing products on the agri-food market. PM

Have beef exports been affected by this much publicised incident? After all, 80% of Polish beef is exported to foreign countries. Even more, 90%. 80% of Polish beef is exported to the European market and an additional 10% to third countries. Right after the disclosure of illegal practices, this case PM

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affected not so much exports as the perception of Polish beef. European countries wanted to take advantage of this situation by deliberately lowering the already low purchasing price of Polish beef. At the moment it is back to normal at EUR 315 for 100 kg, while the EU average is EUR 377, and in what are known as the old EU countries, it is even EUR 410. Thus, the setback was momentary. Currently there is a shortage of beef on the world market, especially in Europe. Brazilian beef is far more expensive. There are countries where average beef consumption is 15-20 kg per head. After all, consumers will not give up eating beef. Apparently, this situation has affected Slovak meat processing factories. In turn, in the Czech Republic, where Polish food has a bad press, each such case hits the headlines. We sell a marginal amount of beef there, and exports to these two countries will not have a major impact on the entire industry. We sell most beef to Italy (80,000 tonnes) and Germany (50,000 tonnes,) followed by the Netherlands, Spain, the United Kingdom and France. PM

FOOD INDUSTRY

As the Beef Industry Board, do you intend to look for solutions to completely eradicate such practices? An idea has come up called "Field to market monitoring." Generally, Polish breeders and meat processing companies meet the high requirements that the system of ensuring food safety and animal welfare imposes on them. But, wherever there is a possibility of additional, illicit earnings, where money comes into play and the temptation is high, there will always be someone who is less honest. In this particular case, the cattle was slaughtered in the absence of a vet. And vets are in control of the situation. PM

Voices have been raised blaming the incident on veterinarians. But they do not want to become scapegoats and point to systemic problems. First of all, what vets have to say is that their pay is low. Low wages may prompt some vets to make money on the side. Secondly, there are fewer and fewer vets, and those who remain have much more work than before. A vet is not available in a small slaughterhouse round the clock. Please note that the illegal slaughter of beef took place in a small slaughterhouse, which tried to earn some extra money. A large meat producer will stick to the rules, because they have worked for their brand recognition for many years. Large producers are under constant veterinary supervision. It is standard practice. They need to protect the good image of Polish meat. Otherwise, they would have too much to lose.

â&#x20AC;&#x153;

WE NOW HAVE COMPLETELY NEW TECHNOLOGIES AT OUR DISPOSAL, AND HENCE, THERE ARE NEW POSSIBILITIES."

Back to eradicating pathologies... Firstly, better control of vets over slaughterhouses should be ensured. Appropriate procedures and standards are in place, but sometimes they are not observed. Secondly, there is talk of installing cameras. It is a good idea but monitoring requires a central computer and a place to store data, archiving, etc. We now have completely new technologies at our disposal, and hence, there are new possibilities. PM

I thought that nothing could surprise me, but the prospect of new technologies in cattle breedingâ&#x20AC;Ś And why not? It is a win-win situation. Everything becomes transparent and decentralised, all information is stored in the cloud, whose capacity is unlimited. The manufacturer does not have to have a dedicated computer and server to store all the files. We are currently conducting talks on this topic with the KOWR and NCRD agencies. When this idea is implemented, we will take a leap several decades forward. Who says that new technologies cannot be used in agriculture? PM

New technologies cost money. Yes, but this cost is a one-off expense, and the benefits are long-term.

Young Polish farmers are very receptive, they are able to quickly adapt to new technologies. This system will help them manage better, it will help them get better prices. And the consumer will be happy to see where the meat comes from. It is possible that the consumer will actually decide what should be produced. Although we have a QMP system in place in Poland, we are just at the starting point when it comes to building consumer awareness. You are talking about getting better prices. Is higherpriced beef still going to be competitive on the market? At current meat prices, a 10%, or maybe 20% increase would not make us lose our competitive edge, and it can even bring us lots of benefits. Together with several producers, we run a pilot programme. The first cattle have already been tagged and the results will be known at the beginning of April. PM

I understand that you have been working on this programme for a long time and it is not prompted by what has happened. We have been holding talks for a year. A month ago, producers agreed to join the programme. Our motivation is to build consumer awareness, and it was not just about the fallout resulting from the slaughter of diseased cows. But now that it has happened, we are more convinced that we are going in the right direction. PM

How do you spread the word that Polish breeders and meat processing firms meet their responsibilities under the strict system of ensuring food safety and animal welfare? Are you thinking of launching an information campaign? Yes. We are planning an information campaign in Poland, in the European Union countries and internationally. We also work on long-term standards. I think that new technologies are the real deal. PM

How aware are farmers of all this? Until recently, a typical Polish farmer had a single water tap in his yard, one pig and one cow. Then came specialisation. And now we're talking about the Internet of Things.

Is the entire industry facing this challenge, the need to introduce new technologies? The lack of full traceability of meat in the shops puts us at a disadvantage. With full traceability of meat, the price of beef on existing markets would rise by 10%, maybe 20%. In addition, the guarantee of traceability will open new â&#x20AC;˘ markets for us. I am sure about that. PM

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FOOD INDUSTRY

EKO-MEGA MŁYNY WODNE

THE BEST POLISH BAKING TRADITION The best bread is the one made using flour from organic grain ground by

traditional methods in an old water mill, made in a traditional artisan bakery with eco sourdough and baked on a horseradish leaf in a traditional woodfired oven. Preferably, all the ingredients used to produce the bread should also be organic. But is it possible? Artisan bakeries still exist and farmers grow several varieties of organic cereals. But where does the flour come from? KRZYSZTOF KLUCZYŃSKI, who runs his family business Eko-Mega Młyny Wodne, which operates the Podlasie Water Mill in Tokary on the Toczna river, knows everything about it. His firm is a founding member of the Polish Ecology Association.

“

You have to buy natural flour of the best quality and very wholesome, from a traditional mill which grinds - carefully and without haste - only organic grain properly classified,” says Krzysztof Kluczyński. “The process used at the mill is traditional, but this does not mean that people carry bags on their backs there. Thanks to the traditional grinding process and organic grains, our flour simply has a different, much more richer and full nutritional value compared to flours from industrial mills made from non-organic grains grown with the use of a large amount of agricultural chemicals. Both the milling process and the quality of organic grain determine the nutritional quality of the flour. For over 100 years the flour mill on the Toczna river has produced in a single process only two types of flour and bran from one kilogram of grain. The process used in industrial mills is designed to produce a maximum amount of flour of various types, often at the expense of losing their natural quality.” “Although we have our own laboratory, immediate assessments of grain and flour are made by hand. The miller assesses what spills out of the rollers by means of visual examination of flour whiteness. In this way, they assess the type of the flour and some of

its quality parameters, taking into account its appearance, colour, smell, taste, flow properties, moisture and the presence of ‘wholesome impurities’ - finely ground bran,” adds Krzysztof Kluczyński. The present water mill in Tokary was built in 1918 to replace an earlier very old wooden mill driven by a water wheel. Before the Second World War flour from the “new” mill and several other mills owned by the family in the nearby area was delivered to Warsaw and military bakeries. Many modern pieces of equipment were installed in the mill during its reconstruction – first in 1955 and then in 1980. However, the traditional water mill technology was preserved so the solidity of an artisan miller is still present here. The family tradition of five generations of water mill owners means responsibility. “The miller constantly checks on all the machines that are in operation, ‘listens’ to the mill, loosens or tightens the rollers if he sees that an even better flour can be produced,” says Krzysztof Kluczyński. “All this takes place in the course of the production process. A computer is not able to spot these nuances. Not surprisingly, this work done by hand has an impact on the price. You can count such mills and millers in the whole European Union on the fingers of one hand. In the world, the miller’s occupation is one of the

‘disappearing occupations,’ and is protected and subsidised by the state. I cannot omit to mention our many costly investment projects which have involved putting in order water conditions in the area, like for example the reconstruction of a weir damaged by war and local vandals and the lifting of water on the Toczna river. We have carried out the projects using funding from our own sources and loans, according to a design made by engineers of the Warsaw University of Technology.” Media reports about the falling consumption of bread and its changing place in the Polish diet are confirmed by statistics which indicate a drop in bread consumption to 45 kilograms annually. Why? Isn’t bread healthy and tasty? It turns out it not always is. Genuine, tasty and healthy bread is scarce on the market and it is increasingly expensive. This is why the idea of bread baked at home - a practice so widespread in Britain, Germany and Sweden - is an increasingly popular topic. As a result, a rise in sales of automatic bread machines and other equipment for home baking has already been noted in Poland. Increasingly aware consumers look for genuine sourdough for bread or home-made sour rye soup called żurek. And the best sourdough can only come from traditional rye flour made from 2/2019 polish market

FOOD INDUSTRY organic rye in a water mill. There is more and more advice for enthusiasts of homebaked bread to be found on social media websites. There are also local initiatives to install homestead bread ovens to cater for the needs of not only the farming family. To this picture we should add organic bakeries and even culinary workshops training amateur home bakers. Then, there is something which is a sign of the times – life in a big city in constant smog – hence growing interest in organic food, organic certification and labels describing product content. According to scientists, including those of the Food and Nutrition Institute, nutritious and natural bread is made of wholemeal flour and sourdough, does not make us obese and thanks to its fibre content reduces our sense of hunger and the need to eat fatty products. It is our ally in fighting a disease of our civilisation – obesity. What does it all have to do with demand for traditional organic flour? “The demand is increasingly high and this inspires me,” says Krzysztof Kluczyński. “My firm cooperates with customers from across Poland and leading organic food wholesalers. Thanks to this, flour, groats and bran from my water mill under the Młyny Wodne brand can be bought in Warsaw, Szczecin, Kraków, Zakopane and elsewhere. For more than 10 years – since 2005 when we received organic certification - we have been gradually conquering the organic bakery market and winning the trust and recognition from retail clients. My firm is also a member of the Polish Chamber of the Regional and Local Product. In 2005, our wheat flour type 500 won the first prize in the competition run by the Chamber, Our Culinary Heritage, for the best Polish traditional regional food product and in 2006 it won the main award – Pearl 2006. A year earlier our organic quality flours represented Polish organic agriculture at the international BioFach fair in Nuremberg.” Eko-Mega Młyny Wodne is contacted by schools who want to arrange visits to the unusual water mill. However, appropriate conditions are needed to carry out an educational project of this kind. It will take some more time before the lessons “From Grain to Loaf” will be organised in Krzysztof Kluczyński’s water mill. In the meantime, those interested can visit the Milling Museum in Jaracz and the Baking Museum in Pleszew. Krzysztof Kluczyński is looking for a financial investor-partner from home or abroad with the passion and life goal to create in Tokary an opportunity for schoolchildren to watch not only the process of producing organic flour, but also take part in workshops showing them how to bake bread at home with the

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use of modern machines. During such lessons the children would learn about ecology, organic food, organic production methods, and biodiversity in the environment. The area of the Bug River Valley Landscape Park where the millers’ hamlet Wandowo is located is ideally suited for this purpose. There are also plans in cooperation with the Lublin University of Technology to build in Tokary a living museum of water turbines to show there with the use of traditional and contemporary equipment how renewable water power can be applied. The museum would be modelled on the Copernicus Centre in Warsaw. And finally, a hint for those who take care of their health: look for traditional organic flour made according to the best Polish culinary tradition if you want to bake and eat wholesome bread, a bread which has a tasty smell, does not crumble when cut, melts on the palate and does not have a strange chemical odour. In a word: Polish wholesome bread baked with natural sourdough, having indisputable taste and dietary values. You will certainly not become obese if you eat such bread. •

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