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April 18, 2001 3:31 pm
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POVERTY IN POLAND: "IF THINGS ARE SO GOOD, WHY ARE THEY SO BAD?"
April 18 2001 at 8:52 PM
No score for this post Óëüòðà Ðóññêèé Íàöèîíàëèñò (login Ultra_Russian_Nationalist)
from IP address 208.14.205.1
FM AMEMBASSY WARSAW
1. THIS IS THE FIRST IN A SERIES ON SO-CALLED "POLSKA B," THE
OTHER SIDE OF POLAND'S IMPRESSIVE ECONOMIC PERFORMANCE. THE
SECOND WILL VIEW THE GAP BETWEEN PERCEPTIONS OF POVERTY AND
REALITY. THE THIRD WILL ASSESS POVERTY'S INFLUENCE ON POLISH
POLITICS AND ECONOMIC AND SOCIAL POLICY.
INTRODUCTION AND SUMMARY
2. VIEWS ON HOW POLAND IS DOING EIGHT YEARS AFTER THE ROUNDTABLE
VARY CONSIDERABLY, DEPENDING ON THE SOURCE. THE PREVAILING VIEW
IN WESTERN INSTITUTIONS AND MUCH OF ELITE OPINION IN POLAND IS
THAT STRONG MACROECONOMIC PERFORMANCE IS LIFTING A MAJORITY OF
BOATS, ALTHOUGH IT WILL BE DECADES BEFORE POLAND REACHES EVEN
SPAIN'S STANDARD OF LIVING. THE MATERIAL SITUATION FOR A
MAJORITY OF POLES REMAINS TOUGH AND SOME LIBERALS WARN THAT WHILE
THE MARKET IS TAKING ROOT, IT SHOWS SIGNS OF "OLIGARCHICAL
CAPITALISM." THE DIFFERENCE IN THESE ASSESSMENTS IS PARTLY
POLITICS, PARTLY REFLECTS GENUINE DIFFICULTIES IN ADAPTING TO THE
MARKET AND VARIOUS PATHOLOGIES WHICH HAVE EMERGED DURING THE
TRANSFORMATION, BUT ALSO THE TENDENCY FOR SOME OBSERVERS TO SEE
THE GLASS HALF FULL ("POLSKA A"), WHILE OTHERS SEE IT HALF EMPTY
("POLSKA B"). IN SHORT, THE GOOD NEWS IS ACCURATE, BUT SO ARE
REPORTS ABOUT THE OTHER SIDE OF THE COIN.
THE GOOD NEWS
3. POLAND'S GROWTH STATISTICS ARE IMPRESSIVE BY ANY STANDARD.
IBRD AND IMF ASSESSMENTS OF AGGREGATE ECONOMIC TRENDS ARE
FAVORABLE, DESPITE INDIVIDUAL AREAS OF CONCERN (REF A). AS
COMPARED WITH MOST OTHER POST-SOVIET ECONOMIES, THE POLES HAVE IT
GOOD: THEIR CURRENCY IS STABLE, BANKING CRISES ARE RARE, CONSUMER
CREDIT IS EXPANDING, WORKERS GET PAID FULLY AND USUALLY ON TIME,
WAGES/SALARIES RISE REGULARLY AND IN REAL TERMS (INCLUDING IN THE
"BUDGET SECTOR"), AND POLAND IS IN THE MIDDLE OF AN UNPRECEDENTED
POST-1989 ERA OF SOCIAL PEACE (THE NUMBER OF STRIKES HAS
PLUMMETED FROM A HIGH OF SEVERAL THOUSAND IN THE EARLY 1990S TO
SEVERAL DOZEN IN 1996). PER CAPITA INCOME HAS RISEN EVERY YEAR
SINCE 1994 AND FAR EXCEEDS THE AVERAGE IN THE FSU AND IN SOUTHERN
TIER STATES. EVEN UNEMPLOYMENT, WHICH REMAINS HIGH AT ABOUT 14
PERCENT, IS NOW NOT MUCH HIGHER THAN IN GERMANY (WITH WHICH
POLAND PREFERS TO COMPARE ITSELF) AND THIS FIGURE OBSCURES A
LARGE NUMBER OF TECHNICALLY UNEMPLOYED HARD AT WORK IN THE GREY
ECONOMY.
4. THE PACE OF CHANGE IN LANDSCAPES AND CITYSCAPES CONTINUES TO
PICK UP. BRIGHT, WELL-STOCKED NEW SHOPS CONTINUE TO SPRING UP
LIKE MUSHROOMS AFTER THE PROVERBIAL RAIN, INCLUDING IN PROVINCIAL
TOWNS RELATIVELY UNTOUCHED BY THE DYNAMISM VISIBLE IN MAJOR
CITIES, WHERE NEW OFFICE BUILDINGS ARE GOING UP AND ROADS ARE
CLOGGED WITH NEW CARS. (IN 1996, POLAND WAS IN FIRST PLACE IN
EUROPE AS MEASURED BY GROWTH IN CAR SALES OVER 1995, UP 41
PERCENT.) HOME APPLIANCE SALES ARE WAY UP AND MORE AND MORE
POLES NO LONGER THINK OF TAKING THEIR HOLIDAYS IN POLAND.
5. JOURNALISTS HAVE IDENTIFIED A NEW CLASS OF "PUPPIES" (POLISH
YUPPIES), VISIBLE PARTICULARLY IN MAJOR CITIES. SERIOUS
RESEARCHERS FIND EVIDENCE THAT POLAND HAS CROSSED THE LINE AND
BECOME A WESTERN-STYLE "CONSUMER SOCIETY," ALBEIT AT A DIFFERENT
STAGE. SOLIDARITY'S CHIEF ECONOMIST, JANUSZ MICHALSKI, ESTIMATES
THAT ABOUT 30 PERCENT OF THE POPULATION HAS BENEFITTED
SIGNIFICANTLY FROM THE ECONOMIC TRANSFORMATION. IN SHORT, POLAND
HAS TRAVELLED AN ENORMOUS DISTANCE SINCE 1989 (REF B) AND
DESERVES ITS REPUTATION AS AN "EASTERN EUROPEAN TIGER."
THE SQUEEZE CONTINUES
6. THERE IS, HOWEVER, ANOTHER SIDE TO THE POLISH "SUCCESS STORY"
WHICH CAN GET LOST AMIDST THE CONTINUING, USUALLY GOOD NEWS. THE
FACT REMAINS THAT A MAJORITY OF THE POPULATION STILL STRUGGLES TO
MAKE ENDS MEET. STEADY PRICE INCREASES, PARTICULARLY IN DAILY
NECESSITITIES HAVE ERODED INCOME GROWTH, LEAVING MILLIONS OF
POLES BELIEVING THEY ARE STILL NOT MUCH BETTER OFF NOW THAN THEY
WERE 3-5 YEARS AGO, EVEN AFTER THEIR APARTMENTS NOW SPORT
SATELLITE TVS, CHILDREN WEAR SPORTY SNEAKERS, AND VCR OWNERSHIP
IN WORKERS' HOUSEHOLDS HAS INCREASED FOUR-FOLD (FROM 20 TO 70
PERCENT) AND AMONG PEASANTS SIX-FOLD (FROM 5 TO 30 PERCENT) SINCE
1990.
7. ON THE INCOME SIDE, WAGES/SALARIES IN MOST CATEGORIES,
INCLUDING THE "BUDGET SECTOR" AND FOR PENSIONERS HAVE RISEN AT
LEAST 15 PERCENT IN REAL TERMS SINCE 1994, BUT:
-- AVERAGE WAGES IN "POLSKA A" (MAJOR CITIES AND HEAVY INDUSTRY)
REMAIN LOW: ABOUT USD 350/MONTH, OR SOME USD 3/PERSON/DAY FOR A
FAMILY OF FOUR WITH ONE WAGE EARNER;
-- IN "POLSKA B" (THE PROVINCES) AVERAGE INCOME IS LOWER: OFTEN
LESS THAN USD 250/MONTH, OR USD 2/PERSON/DAY IN FAMILIES WITH ONE
WAGE EARNER;
-- INCOMES ARE LOWER STILL IN THE POCKETS OF CHRONIC, STRUCTUAL
POVERTY ("POLSKA C") WHERE UNEMPLOYMENT HAS REMAINED IN THE 20-30
PERCENT RANGE SINCE 1990, AND AMONG SOCIAL GROUPS LIKE LARGER
FAMILIES AND YOUTH WITH BASIC EDUCATIONS.
-- OFFICIAL SALARIES IN MANY "MIDDLE CLASS" PROFESSIONS REQUIRING
HIGHER EDUCATION (PROFESSORS, TEACHERS, CULTURAL WORKERS AND
MEDICAL PROFESSIONALS) ARE SO LOW (AND LESS THAN INDUSTRIAL
WORKERS) THAT THEY SEVERELY DISTORT THE FUNCTIONING OF SUCH KEY
SECTORS AS HEALTH AND EDUCATION. (MANY OF THESE HAVE SECOND,
OFTEN LUCRATIVE, JOBS);
-- WOMEN IN FAMILIES WHERE ONLY THE HUSBAND TRADITIONALLY WORKS
(E.G. RELATIVELY WELL-PAID MINERS IN UPPER SILESIA) ARE
INCREASINGLY CONTEMPLATING WORK OR ENTERING THE WORKFORCE;
-- THERE IS A GROWING PERCEPTION THAT FAMILIES MUST HAVE TWO WAGE
EARNERS TO ENJOY A MEASURE OF FINANCIAL STABILITY;
8. ON THE EXPENSE SIDE, AS PRICES EDGE TOWARD MARKET LEVELS,
AVERAGE POLES WORRY THAT THEIR INCREASING INCOME FAILS TO KEEP UP
WITH THE RISING COST OF LIVING:
-- UTILITY PRICE INCREASES CAN ALMOST DOUBLE THE COST OF HOUSING.
(SOLIDARITY RECENTLY CALCULATED THAT ENERGY PRICES HAVE RISEN 156
FOLD SINCE 1989.) WITH RENT CONTROL KEEPING HOUSING COSTS BELOW
MARKET LEVELS AND HOUSING LOANS REMAINING DIFFICULT TO OBTAIN,
THOUSANDS OF POLES HAVE CHOSEN NOT TO BUY THEIR APARTMENTS;
-- THEORETICALLY FREE EDUCATION AT ALL LEVELS NOW COSTS REAL
MONEY, LEADING TO CHARGES THAT ENTRY INTO THE HIGHLY-PAID
PROFESSIONS -- VIA HIGHER EDUCATION -- MAY BECOME INCREASINGLY
ONLY FOR THOSE WHO CAN AFFORD IT;
-- HEALTH CARE LONG AGO CEASED BEING "FREE." POLES MUST NOW
GREASE THE SKIDS FOR EVEN ROUTINE TREATMENT, WHILE MORE EXPENSIVE
CARE IS COMMENSURATELY MORE EXPENSIVE;
-- WHILE FOOD PRICES ARE STILL BELOW THOSE IN WESTERN EUROPE,
EXPENDITURES ON FOOD COMPRISE AT LEAST 38 PERCENT OF AVERAGE
POLES' INCOMES (AND AS MUCH AS 60 PERCENT OF MONTHLY EXPENSES FOR
LOWER INCOME POLES), ACCORDING TO A NOVEMBER ESTIMATE. THIS
PERCENTAGE IS HIGH COMPARED WITH COUNTRIES WITH WHICH POLES LIKE
TO COMPARE THEMSELVES; AND
-- A SENSATIONAL STORY IN OCTOBER CITING CONFIDENTIAL REMARKS AT
A GOVERNING SOCIAL DEMOCRACY OF THE REPUBLIC OF POLAND (SDRP)
RETREAT REPORTED THAT WHILE OVERALL INFLATION IS DECREASING,
INDIVIDUAL CONSUMER NECESSITIES ARE RISING FASTER WHICH HAS HIT
POLISH POCKETBOOKS -- AND THE SDRP ELECTORATE -- VISIBLY.
ESTIMATES OF POVERTY
9. THE POLISH PRESS COVERS THESE POCKETBOOK ISSUES VERY
CLOSELY. DURING THE LATTER HALF OF 1996, THE MEDIA REPORTED THE
RESULTS OF SEVERAL STUDIES (SEPTEL) WHICH CONCLUDED THAT ANYWHERE
FROM A SUBSTANTIAL MINORITY TO A SLIM MAJORITY OF THE POLISH
POPULATION "LIVES IN POVERTY." A SAMPLING OF THE RESULTING
HEADLINES: "FIVE MILLION POLES IN POVERTY;" "16.5 MILLION POLES
IN POVERTY;" (USING A MORE FLEXIBLE DEFINITION OF THE
PHENOMENON); "THE RICH ARE GETTING RICHER AND THE POOR POORER;"
"WILL POLAND FOLLOW THE PATH OF LATIN AMERICA?" AND "THE POLISH
FAMILY IS GETTING POORER."
10. RECENT OPINION POLLS WHICH ATTEMPT TO GAUGE POLES' MATERIAL
SITUATION COMPARED TO OTHER CENTRAL EUROPEANS PARTLY OVERLAP WITH
THESE STUDY RESULTS. A WALL STREET JOURNAL POLL RELEASED
FEBRUARY 10 PUT POLES AHEAD OF CITIZENS OF MOST FORMER SOVIET
BLOC STATES, BUT BEHIND THE CZECHS AND HUNGARIANS. THIS SURVEY
SHOWED THAT 44 PERCENT OF POLES QUERIED SAID THEY HAVE "LITTLE OR
NOTHING," 33 PERCENT SAID THEY HAVE "A LITTLE WHICH THEY NEED"
WHILE 23 PERCENT ANSWERED THAT THEY HAVE "ALL THEY NEED."
"LIVING LIKE HUMANS"
11. THE SHORTAGE OF WESTERN-STYLE HOUSING REINFORCES POLES'
SENSE THAT THEY ARE "POOR." ON THE ONE HAND, NEW TOWNHOUSE
COMPLEXES AND MODERN APARTMENT BUILDINGS CONTINUE TO GO UP IN
AROUND MAJOR CITIES AND IN PROVINCIAL AREAS AS WELL. THE DO-IT-
YOURSELF HOME RENOVATION MARKET IS BOOMING. MORTGAGES ARE ALSO
INCREASINGLY AVAILABLE. HOWEVER, THESE PHENOMENA TEND TO APPLY
MORE TO UPPER INCOME EARNERS THAN TO CITY-BUILT, LOW-RENT HOUSING
SO MANY POLES PREFER. HOMELESSNESS IS NOT A SERIOUS PROBLEM,
ALTHOUGH IT HAS RISEN IN RECENT YEARS.
12. POLES STATISTICALLY STILL LIVE IN LESS SPACE/PERSON THAN
MOST CENTRAL/EAST EUROPEANS, ACCORDING TO A POLL PUBLISHED IN
EARLY MARCH. THE AVERAGE POLE HAS 19 SQUARE METERS AT HIS/HER
DISPOSAL, LESS THAN SLOVAKS (22), BULGARIANS (25), CZECHS (25),
AND HUNGARIANS (30). THE SAME SURVEY SHOWED THAT POLES HAVE 286
APARTMENTS/1000 PERSONS, BEHIND SLOVAKIA (306), ROMANIA (339),
CZECH REPUBLIC (360), HUNGARY (388) AND BULGARIA (401).
13. THIS EXACERBATES THE FEELING OF "RELATIVE DEPRIVATION" FELT
EVEN BY MEMBERS OF THE EMERGING URBAN MIDDLE CLASS, WHO EARN
SOLID INCOMES, VACATION OUTSIDE POLAND, AND OTHERWISE HAVE JOINED
THE CONSUMER SOCIETY. WHEN THEY OFTEN HAVE TO RETURN HOME AFTER
WORK TO GRAFFITI-COVERED, URINE-STAINED, SOVIET-STYLE HOUSING
BLOCKS UNTIL THEY HAVE SAVED ENOUGH FOR A DOWN PAYMENT ON A
REALLY NICE PLACE, IT IS EASIER TO UNDERSTAND THE ROLE LIVING
CONDITIONS PLAY IN FORMING CONSCIOUSNESS OUT IN "POLSKA B."
14. THE HOUSING PROBLEM RECENTLY LED "GAZETA WYBORCZA," POLAND'S
LARGEST CIRCULATION, CENTER-LEFT DAILY, TO URGE READERS TO FORM A
MOVEMENT TO PLACE SAFE, NICE HOUSING ON THE POLITICAL AGENDA. A
MARCH 1 HEADLINE ARTICLE ENTITLED "LIVING LIKE HUMAN BEINGS"
OBSERVED THAT HOUSING COULD BECOME THE THIRD MOST IMPORTANT ISSUE
IN THE UPCOMING PARLIAMENTARY ELECTIONS (FOR 71 PERCENT OF THOSE
POLLED, JUST AFTER UNEMPLOYMENT AT 74 PERCENT. PERSONAL SECURITY
WAS THE HIGHEST AT 82 PERCENT). THE PAPER ADDED THAT NEW HOUSING
UNITS COMPLETED IN 1996 WERE AT THE LEVEL OF 1952.
PRIORITIES: POCKETBOOK ISSUES
15. MANY POLES CONTINUE TO CONSIDER THEIR MATERIAL SITUATION
MORE IMPORTANT THAN ANYTHING ELSE. IN JANUARY, THE "OBOP"
POLLING FIRM FOUND THE FOLLOWING ISSUES TO BE THE MOST IMPORTANT:
UNEMPLOYMENT (68 PERCENT)
POVERTY OF A LARGE PART OF SOCIETY (36 PERCENT)
LOW WAGES (25 PERCENT)
HEALTH SERVICE (17 PERCENT)
PRIVATIZATION (13 PERCENT)
HOUSING (13 PERCENT)
(FOREIGN AND DEFENCE POLICY WERE OF LESS CONCERN.)
16. ANOTHER JANUARY SURVEY REFLECTED THESE CONCERNS. FOR ALMOST
HALF THE POPULATION, THE MOST WORRISOME ISSUE WAS HEALTH CARE.
FORTY PERCENT OF THE POPULATION WAS MOST WORRIED ABOUT POVERTY,
37 PERCENT FEARED LOSING THEIR JOBS, 31 PERCENT A LACK OF
OPPORTUNITY FOR YOUTH, 27 PERCENT A LOWERED STANDARD OF LIVING.
"LIBERALISM": BECOMING A BAD WORD?
17. NOT SURPRISINGLY, THE OPPOSITION ZEROES IN ON THESE CONCERNS
IN DOMESTIC POLITICAL DEBATES (THUS TURNING TABLES ON COALITION
PARTIES WHICH USED THEM TO GREAT EFFECT IN 1989-93). AGAINST THE
BACKGROUND OF CONTINUING HARDSHIP, THE TERM (ECONOMIC) "LIBERAL"
HAS ACQUIRED PERJORATIVE OVERTONES, LEADING MANY POLITICIANS TO
TURN INTELLECTUAL SOMERSAULTS TO AVOID CALLING THEMSELVES OR
THEIR POLICY PRESCRIPTIONS "LIBERAL."
18. WHILE THE SDRP, FOR EXAMPLE, ENJOYS BEING CONSIDERED
RELATIVELY "LIBERAL" ON FOREIGN INVESTMENT, IT STUDIOUSLY AVOIDED
MENTIONING FREE MARKET REFORMS DURING A PROGRAM CONFERENCE
EARLIER THIS MONTH, STRESSING INSTEAD ITS SOCIALIST VALUES AND
FOCUSING ON POPULAR THEMES LIKE REDUCING HOUSING SHORTAGES,
UNEMPLOYMENT, POVERTY, AND ACHIEVING SOCIAL JUSTICE.
PARLIAMENTARY LEFT (UNION OF LABOR) AND EXTRAPARLIAMENTARY RIGHT
PARTIES (SOLIDARITY ELECTORAL ACTION (AWS) AND MOVEMENT FOR THE
RECONSTRUCTION OF POLAND (ROP) HAMMER ON THESE ISSUES. (NOTE:
NONE QUESTION A MARKET ECONOMY; THEY JUST DISAGREE AT THE MARGINS
OVER ISSUES LIKE THE PACE OF CHANGE AND DEGREE TO WHICH THOSE
AFFECTED BY CHANGE SHOULD PARTICIPATE IN THE PROCESS. END NOTE.)
19. MEANWHILE, GENUINE LIBERAL PARTIES (UNION OF FREEDOM),
LIBERAL-PEASANT PARTY (SKL), CONSERVATIVE COALITION (KK) AND THE
ONE HUNDRED MOVEMENT) TOGETHER APPEAL AT MOST TO PERHAPS 15
PERCENT OF THE ELECTORATE.
"OLIGARCHICAL CAPITALISM" AHEAD?
20. SOME OPPOSITION LEADERS WARN THAT "OLIGARCHICAL CAPITALISM"
LIES AHEAD IF PRESENT TRENDS CONTINUE. (IN POPULAR PARLANCE, THE
TERM REFERS TO THE CONCENTRATION OF WEALTH OR CONTROL OF KEY
ECONOMIC ASSETS IN POST-COMMUNIST HANDS WHILE AVERAGE POLES
STRUGGLE.) THIS PHRASE IS NOW COMMON IN ROP AND AWS, INCLUDING
AWS SIGNATORIES LIKE THE ONE HUNDRED MOVEMENT (WHOSE ECONOMIC
VIEWS ARE FREE MARKET BUT WHO BELIEVE "TRUE LIBERALS" SHOULD
WORRY MORE ABOUT THE GROWING ECONOMIC POWER OF POST-COMMUNIST-
CONTROLLED HOLDING COMPANIES LIKE "ELECTRIM," "UNIVERSAL," AND
"CIECH"). LEADERS OF SMALLER SLD SIGNATORIES LIKE OPZZ TRADE
UNION AFFILIATES AND THE POLISH SOCIALIST PARTY (PPS), WHOSE
ELECTORATES HAVE NOT BENEFITTED AS MUCH FROM THE TRANSFORMATION,
ALSO OBJECT TO THE CONCENTRATION OF ECONOMIC POWER
21. IN A RECENT DEBATE ON THE OP-ED PAGES OF THE FREE MARKET-
RIGHTIST DAILY "ZYCIE," PUBLICISTS LARGELY AGREED THAT POLAND
SHOWS SIGNS OF "OLIGARCHICAL CAPITALISM," WHILE DISAGREEING OVER
ITS SCOPE AND WHAT TO DO ABOUT IT. DEBATE PARTICIPANTS TENDED TO
AGREE THAT "OLIGARCHICAL CAPITALISM" HAS ACCELERATED SINCE 1993.
THEY WORRY LESS ABOUT THE ABSENCE OF SMALL/MEDIUM ENTERPRISES
(THERE ARE NOW MORE THAN 2M), BUT THEIR DEPENDENCE ON OFTEN POST-
COMMUNIST- RELATED COMPANIES AND BANKS AND GOVERNMENT OFFICIALS,
WHICH INHIBITS EMERGENCE OF A LARGER ENTREPRENEURIAL-BASED MIDDLE
CLASS. AS ONE HUNDRED MOVEMENT LEADER CIESLAW BIELECKI RECENTLY
PUT IT TO US: "WHAT IS IMPORTANT IN BUILDING HEALTHY CAPITALISM
IS NOT THE NUMBER OF MERCEDES ON THE STREETS BUT THE SIZE OF THE
MIDDLE CLASS AND THE PERCENTAGE OF YOUTH IN HIGHER EDUCATION. IN
THE LATTER, THE TRENDS ARE NOT THAT POSITIVE." ANDRZEJ
BRATKOWSKI, A PROMINENT ECONOMIST ASSOCIATED WITH LESZEK
BALCEROWICZ'S "CASE INSTITUTE," RECENTLY ENTITLED AN OP-ED PIECE
"IF THINGS ARE SO GOOD, WHY ARE THEY SO BAD?"
INCOME DISTRIBUTION TRENDS
22. INCOME DISTRIBUTION DATA SUGGEST STRONG INCOME-BASED SOCIAL
STRATIFICATION. THE KATOWICE DAILY "DZIENNIK ZACHODNY," CITING
GOVERNMENT STATISTICAL OFFICE (GUS) FIGURES) IN OCTOBER PUT 7-10
PERCENT OF THE POPULATION IN THE "RICH" CATEGORY, 13-30 IN
"SERIOUS POVERTY," AND CONCLUDED THAT THE REST OF THE POPULATION
WAS LIVING HAND-TO-MOUTH.
**Provided courtesy of the Central and Eastern Europe Business Information Center (CEEBIC)
April 18, 2001 3:34 pm
> Return to Index
POVERTY IN POLAND: "IF THINGS ARE SO GOOD, WHY ARE THEY SO BAD?"
April 18 2001 at 8:52 PM
No score for this post Óëüòðà Ðóññêèé Íàöèîíàëèñò (login Ultra_Russian_Nationalist)
from IP address 208.14.205.1
FM AMEMBASSY WARSAW
1. THIS IS THE FIRST IN A SERIES ON SO-CALLED "POLSKA B," THE
OTHER SIDE OF POLAND'S IMPRESSIVE ECONOMIC PERFORMANCE. THE
SECOND WILL VIEW THE GAP BETWEEN PERCEPTIONS OF POVERTY AND
REALITY. THE THIRD WILL ASSESS POVERTY'S INFLUENCE ON POLISH
POLITICS AND ECONOMIC AND SOCIAL POLICY.
INTRODUCTION AND SUMMARY
2. VIEWS ON HOW POLAND IS DOING EIGHT YEARS AFTER THE ROUNDTABLE
VARY CONSIDERABLY, DEPENDING ON THE SOURCE. THE PREVAILING VIEW
IN WESTERN INSTITUTIONS AND MUCH OF ELITE OPINION IN POLAND IS
THAT STRONG MACROECONOMIC PERFORMANCE IS LIFTING A MAJORITY OF
BOATS, ALTHOUGH IT WILL BE DECADES BEFORE POLAND REACHES EVEN
SPAIN'S STANDARD OF LIVING. THE MATERIAL SITUATION FOR A
MAJORITY OF POLES REMAINS TOUGH AND SOME LIBERALS WARN THAT WHILE
THE MARKET IS TAKING ROOT, IT SHOWS SIGNS OF "OLIGARCHICAL
CAPITALISM." THE DIFFERENCE IN THESE ASSESSMENTS IS PARTLY
POLITICS, PARTLY REFLECTS GENUINE DIFFICULTIES IN ADAPTING TO THE
MARKET AND VARIOUS PATHOLOGIES WHICH HAVE EMERGED DURING THE
TRANSFORMATION, BUT ALSO THE TENDENCY FOR SOME OBSERVERS TO SEE
THE GLASS HALF FULL ("POLSKA A"), WHILE OTHERS SEE IT HALF EMPTY
("POLSKA B"). IN SHORT, THE GOOD NEWS IS ACCURATE, BUT SO ARE
REPORTS ABOUT THE OTHER SIDE OF THE COIN.
THE GOOD NEWS
3. POLAND'S GROWTH STATISTICS ARE IMPRESSIVE BY ANY STANDARD.
IBRD AND IMF ASSESSMENTS OF AGGREGATE ECONOMIC TRENDS ARE
FAVORABLE, DESPITE INDIVIDUAL AREAS OF CONCERN (REF A). AS
COMPARED WITH MOST OTHER POST-SOVIET ECONOMIES, THE POLES HAVE IT
GOOD: THEIR CURRENCY IS STABLE, BANKING CRISES ARE RARE, CONSUMER
CREDIT IS EXPANDING, WORKERS GET PAID FULLY AND USUALLY ON TIME,
WAGES/SALARIES RISE REGULARLY AND IN REAL TERMS (INCLUDING IN THE
"BUDGET SECTOR"), AND POLAND IS IN THE MIDDLE OF AN UNPRECEDENTED
POST-1989 ERA OF SOCIAL PEACE (THE NUMBER OF STRIKES HAS
PLUMMETED FROM A HIGH OF SEVERAL THOUSAND IN THE EARLY 1990S TO
SEVERAL DOZEN IN 1996). PER CAPITA INCOME HAS RISEN EVERY YEAR
SINCE 1994 AND FAR EXCEEDS THE AVERAGE IN THE FSU AND IN SOUTHERN
TIER STATES. EVEN UNEMPLOYMENT, WHICH REMAINS HIGH AT ABOUT 14
PERCENT, IS NOW NOT MUCH HIGHER THAN IN GERMANY (WITH WHICH
POLAND PREFERS TO COMPARE ITSELF) AND THIS FIGURE OBSCURES A
LARGE NUMBER OF TECHNICALLY UNEMPLOYED HARD AT WORK IN THE GREY
ECONOMY.
4. THE PACE OF CHANGE IN LANDSCAPES AND CITYSCAPES CONTINUES TO
PICK UP. BRIGHT, WELL-STOCKED NEW SHOPS CONTINUE TO SPRING UP
LIKE MUSHROOMS AFTER THE PROVERBIAL RAIN, INCLUDING IN PROVINCIAL
TOWNS RELATIVELY UNTOUCHED BY THE DYNAMISM VISIBLE IN MAJOR
CITIES, WHERE NEW OFFICE BUILDINGS ARE GOING UP AND ROADS ARE
CLOGGED WITH NEW CARS. (IN 1996, POLAND WAS IN FIRST PLACE IN
EUROPE AS MEASURED BY GROWTH IN CAR SALES OVER 1995, UP 41
PERCENT.) HOME APPLIANCE SALES ARE WAY UP AND MORE AND MORE
POLES NO LONGER THINK OF TAKING THEIR HOLIDAYS IN POLAND.
5. JOURNALISTS HAVE IDENTIFIED A NEW CLASS OF "PUPPIES" (POLISH
YUPPIES), VISIBLE PARTICULARLY IN MAJOR CITIES. SERIOUS
RESEARCHERS FIND EVIDENCE THAT POLAND HAS CROSSED THE LINE AND
BECOME A WESTERN-STYLE "CONSUMER SOCIETY," ALBEIT AT A DIFFERENT
STAGE. SOLIDARITY'S CHIEF ECONOMIST, JANUSZ MICHALSKI, ESTIMATES
THAT ABOUT 30 PERCENT OF THE POPULATION HAS BENEFITTED
SIGNIFICANTLY FROM THE ECONOMIC TRANSFORMATION. IN SHORT, POLAND
HAS TRAVELLED AN ENORMOUS DISTANCE SINCE 1989 (REF B) AND
DESERVES ITS REPUTATION AS AN "EASTERN EUROPEAN TIGER."
THE SQUEEZE CONTINUES
6. THERE IS, HOWEVER, ANOTHER SIDE TO THE POLISH "SUCCESS STORY"
WHICH CAN GET LOST AMIDST THE CONTINUING, USUALLY GOOD NEWS. THE
FACT REMAINS THAT A MAJORITY OF THE POPULATION STILL STRUGGLES TO
MAKE ENDS MEET. STEADY PRICE INCREASES, PARTICULARLY IN DAILY
NECESSITITIES HAVE ERODED INCOME GROWTH, LEAVING MILLIONS OF
POLES BELIEVING THEY ARE STILL NOT MUCH BETTER OFF NOW THAN THEY
WERE 3-5 YEARS AGO, EVEN AFTER THEIR APARTMENTS NOW SPORT
SATELLITE TVS, CHILDREN WEAR SPORTY SNEAKERS, AND VCR OWNERSHIP
IN WORKERS' HOUSEHOLDS HAS INCREASED FOUR-FOLD (FROM 20 TO 70
PERCENT) AND AMONG PEASANTS SIX-FOLD (FROM 5 TO 30 PERCENT) SINCE
1990.
7. ON THE INCOME SIDE, WAGES/SALARIES IN MOST CATEGORIES,
INCLUDING THE "BUDGET SECTOR" AND FOR PENSIONERS HAVE RISEN AT
LEAST 15 PERCENT IN REAL TERMS SINCE 1994, BUT:
-- AVERAGE WAGES IN "POLSKA A" (MAJOR CITIES AND HEAVY INDUSTRY)
REMAIN LOW: ABOUT USD 350/MONTH, OR SOME USD 3/PERSON/DAY FOR A
FAMILY OF FOUR WITH ONE WAGE EARNER;
-- IN "POLSKA B" (THE PROVINCES) AVERAGE INCOME IS LOWER: OFTEN
LESS THAN USD 250/MONTH, OR USD 2/PERSON/DAY IN FAMILIES WITH ONE
WAGE EARNER;
-- INCOMES ARE LOWER STILL IN THE POCKETS OF CHRONIC, STRUCTUAL
POVERTY ("POLSKA C") WHERE UNEMPLOYMENT HAS REMAINED IN THE 20-30
PERCENT RANGE SINCE 1990, AND AMONG SOCIAL GROUPS LIKE LARGER
FAMILIES AND YOUTH WITH BASIC EDUCATIONS.
-- OFFICIAL SALARIES IN MANY "MIDDLE CLASS" PROFESSIONS REQUIRING
HIGHER EDUCATION (PROFESSORS, TEACHERS, CULTURAL WORKERS AND
MEDICAL PROFESSIONALS) ARE SO LOW (AND LESS THAN INDUSTRIAL
WORKERS) THAT THEY SEVERELY DISTORT THE FUNCTIONING OF SUCH KEY
SECTORS AS HEALTH AND EDUCATION. (MANY OF THESE HAVE SECOND,
OFTEN LUCRATIVE, JOBS);
-- WOMEN IN FAMILIES WHERE ONLY THE HUSBAND TRADITIONALLY WORKS
(E.G. RELATIVELY WELL-PAID MINERS IN UPPER SILESIA) ARE
INCREASINGLY CONTEMPLATING WORK OR ENTERING THE WORKFORCE;
-- THERE IS A GROWING PERCEPTION THAT FAMILIES MUST HAVE TWO WAGE
EARNERS TO ENJOY A MEASURE OF FINANCIAL STABILITY;
8. ON THE EXPENSE SIDE, AS PRICES EDGE TOWARD MARKET LEVELS,
AVERAGE POLES WORRY THAT THEIR INCREASING INCOME FAILS TO KEEP UP
WITH THE RISING COST OF LIVING:
-- UTILITY PRICE INCREASES CAN ALMOST DOUBLE THE COST OF HOUSING.
(SOLIDARITY RECENTLY CALCULATED THAT ENERGY PRICES HAVE RISEN 156
FOLD SINCE 1989.) WITH RENT CONTROL KEEPING HOUSING COSTS BELOW
MARKET LEVELS AND HOUSING LOANS REMAINING DIFFICULT TO OBTAIN,
THOUSANDS OF POLES HAVE CHOSEN NOT TO BUY THEIR APARTMENTS;
-- THEORETICALLY FREE EDUCATION AT ALL LEVELS NOW COSTS REAL
MONEY, LEADING TO CHARGES THAT ENTRY INTO THE HIGHLY-PAID
PROFESSIONS -- VIA HIGHER EDUCATION -- MAY BECOME INCREASINGLY
ONLY FOR THOSE WHO CAN AFFORD IT;
-- HEALTH CARE LONG AGO CEASED BEING "FREE." POLES MUST NOW
GREASE THE SKIDS FOR EVEN ROUTINE TREATMENT, WHILE MORE EXPENSIVE
CARE IS COMMENSURATELY MORE EXPENSIVE;
-- WHILE FOOD PRICES ARE STILL BELOW THOSE IN WESTERN EUROPE,
EXPENDITURES ON FOOD COMPRISE AT LEAST 38 PERCENT OF AVERAGE
POLES' INCOMES (AND AS MUCH AS 60 PERCENT OF MONTHLY EXPENSES FOR
LOWER INCOME POLES), ACCORDING TO A NOVEMBER ESTIMATE. THIS
PERCENTAGE IS HIGH COMPARED WITH COUNTRIES WITH WHICH POLES LIKE
TO COMPARE THEMSELVES; AND
-- A SENSATIONAL STORY IN OCTOBER CITING CONFIDENTIAL REMARKS AT
A GOVERNING SOCIAL DEMOCRACY OF THE REPUBLIC OF POLAND (SDRP)
RETREAT REPORTED THAT WHILE OVERALL INFLATION IS DECREASING,
INDIVIDUAL CONSUMER NECESSITIES ARE RISING FASTER WHICH HAS HIT
POLISH POCKETBOOKS -- AND THE SDRP ELECTORATE -- VISIBLY.
ESTIMATES OF POVERTY
9. THE POLISH PRESS COVERS THESE POCKETBOOK ISSUES VERY
CLOSELY. DURING THE LATTER HALF OF 1996, THE MEDIA REPORTED THE
RESULTS OF SEVERAL STUDIES (SEPTEL) WHICH CONCLUDED THAT ANYWHERE
FROM A SUBSTANTIAL MINORITY TO A SLIM MAJORITY OF THE POLISH
POPULATION "LIVES IN POVERTY." A SAMPLING OF THE RESULTING
HEADLINES: "FIVE MILLION POLES IN POVERTY;" "16.5 MILLION POLES
IN POVERTY;" (USING A MORE FLEXIBLE DEFINITION OF THE
PHENOMENON); "THE RICH ARE GETTING RICHER AND THE POOR POORER;"
"WILL POLAND FOLLOW THE PATH OF LATIN AMERICA?" AND "THE POLISH
FAMILY IS GETTING POORER."
10. RECENT OPINION POLLS WHICH ATTEMPT TO GAUGE POLES' MATERIAL
SITUATION COMPARED TO OTHER CENTRAL EUROPEANS PARTLY OVERLAP WITH
THESE STUDY RESULTS. A WALL STREET JOURNAL POLL RELEASED
FEBRUARY 10 PUT POLES AHEAD OF CITIZENS OF MOST FORMER SOVIET
BLOC STATES, BUT BEHIND THE CZECHS AND HUNGARIANS. THIS SURVEY
SHOWED THAT 44 PERCENT OF POLES QUERIED SAID THEY HAVE "LITTLE OR
NOTHING," 33 PERCENT SAID THEY HAVE "A LITTLE WHICH THEY NEED"
WHILE 23 PERCENT ANSWERED THAT THEY HAVE "ALL THEY NEED."
"LIVING LIKE HUMANS"
11. THE SHORTAGE OF WESTERN-STYLE HOUSING REINFORCES POLES'
SENSE THAT THEY ARE "POOR." ON THE ONE HAND, NEW TOWNHOUSE
COMPLEXES AND MODERN APARTMENT BUILDINGS CONTINUE TO GO UP IN
AROUND MAJOR CITIES AND IN PROVINCIAL AREAS AS WELL. THE DO-IT-
YOURSELF HOME RENOVATION MARKET IS BOOMING. MORTGAGES ARE ALSO
INCREASINGLY AVAILABLE. HOWEVER, THESE PHENOMENA TEND TO APPLY
MORE TO UPPER INCOME EARNERS THAN TO CITY-BUILT, LOW-RENT HOUSING
SO MANY POLES PREFER. HOMELESSNESS IS NOT A SERIOUS PROBLEM,
ALTHOUGH IT HAS RISEN IN RECENT YEARS.
12. POLES STATISTICALLY STILL LIVE IN LESS SPACE/PERSON THAN
MOST CENTRAL/EAST EUROPEANS, ACCORDING TO A POLL PUBLISHED IN
EARLY MARCH. THE AVERAGE POLE HAS 19 SQUARE METERS AT HIS/HER
DISPOSAL, LESS THAN SLOVAKS (22), BULGARIANS (25), CZECHS (25),
AND HUNGARIANS (30). THE SAME SURVEY SHOWED THAT POLES HAVE 286
APARTMENTS/1000 PERSONS, BEHIND SLOVAKIA (306), ROMANIA (339),
CZECH REPUBLIC (360), HUNGARY (388) AND BULGARIA (401).
13. THIS EXACERBATES THE FEELING OF "RELATIVE DEPRIVATION" FELT
EVEN BY MEMBERS OF THE EMERGING URBAN MIDDLE CLASS, WHO EARN
SOLID INCOMES, VACATION OUTSIDE POLAND, AND OTHERWISE HAVE JOINED
THE CONSUMER SOCIETY. WHEN THEY OFTEN HAVE TO RETURN HOME AFTER
WORK TO GRAFFITI-COVERED, URINE-STAINED, SOVIET-STYLE HOUSING
BLOCKS UNTIL THEY HAVE SAVED ENOUGH FOR A DOWN PAYMENT ON A
REALLY NICE PLACE, IT IS EASIER TO UNDERSTAND THE ROLE LIVING
CONDITIONS PLAY IN FORMING CONSCIOUSNESS OUT IN "POLSKA B."
14. THE HOUSING PROBLEM RECENTLY LED "GAZETA WYBORCZA," POLAND'S
LARGEST CIRCULATION, CENTER-LEFT DAILY, TO URGE READERS TO FORM A
MOVEMENT TO PLACE SAFE, NICE HOUSING ON THE POLITICAL AGENDA. A
MARCH 1 HEADLINE ARTICLE ENTITLED "LIVING LIKE HUMAN BEINGS"
OBSERVED THAT HOUSING COULD BECOME THE THIRD MOST IMPORTANT ISSUE
IN THE UPCOMING PARLIAMENTARY ELECTIONS (FOR 71 PERCENT OF THOSE
POLLED, JUST AFTER UNEMPLOYMENT AT 74 PERCENT. PERSONAL SECURITY
WAS THE HIGHEST AT 82 PERCENT). THE PAPER ADDED THAT NEW HOUSING
UNITS COMPLETED IN 1996 WERE AT THE LEVEL OF 1952.
PRIORITIES: POCKETBOOK ISSUES
15. MANY POLES CONTINUE TO CONSIDER THEIR MATERIAL SITUATION
MORE IMPORTANT THAN ANYTHING ELSE. IN JANUARY, THE "OBOP"
POLLING FIRM FOUND THE FOLLOWING ISSUES TO BE THE MOST IMPORTANT:
UNEMPLOYMENT (68 PERCENT)
POVERTY OF A LARGE PART OF SOCIETY (36 PERCENT)
LOW WAGES (25 PERCENT)
HEALTH SERVICE (17 PERCENT)
PRIVATIZATION (13 PERCENT)
HOUSING (13 PERCENT)
(FOREIGN AND DEFENCE POLICY WERE OF LESS CONCERN.)
16. ANOTHER JANUARY SURVEY REFLECTED THESE CONCERNS. FOR ALMOST
HALF THE POPULATION, THE MOST WORRISOME ISSUE WAS HEALTH CARE.
FORTY PERCENT OF THE POPULATION WAS MOST WORRIED ABOUT POVERTY,
37 PERCENT FEARED LOSING THEIR JOBS, 31 PERCENT A LACK OF
OPPORTUNITY FOR YOUTH, 27 PERCENT A LOWERED STANDARD OF LIVING.
"LIBERALISM": BECOMING A BAD WORD?
17. NOT SURPRISINGLY, THE OPPOSITION ZEROES IN ON THESE CONCERNS
IN DOMESTIC POLITICAL DEBATES (THUS TURNING TABLES ON COALITION
PARTIES WHICH USED THEM TO GREAT EFFECT IN 1989-93). AGAINST THE
BACKGROUND OF CONTINUING HARDSHIP, THE TERM (ECONOMIC) "LIBERAL"
HAS ACQUIRED PERJORATIVE OVERTONES, LEADING MANY POLITICIANS TO
TURN INTELLECTUAL SOMERSAULTS TO AVOID CALLING THEMSELVES OR
THEIR POLICY PRESCRIPTIONS "LIBERAL."
18. WHILE THE SDRP, FOR EXAMPLE, ENJOYS BEING CONSIDERED
RELATIVELY "LIBERAL" ON FOREIGN INVESTMENT, IT STUDIOUSLY AVOIDED
MENTIONING FREE MARKET REFORMS DURING A PROGRAM CONFERENCE
EARLIER THIS MONTH, STRESSING INSTEAD ITS SOCIALIST VALUES AND
FOCUSING ON POPULAR THEMES LIKE REDUCING HOUSING SHORTAGES,
UNEMPLOYMENT, POVERTY, AND ACHIEVING SOCIAL JUSTICE.
PARLIAMENTARY LEFT (UNION OF LABOR) AND EXTRAPARLIAMENTARY RIGHT
PARTIES (SOLIDARITY ELECTORAL ACTION (AWS) AND MOVEMENT FOR THE
RECONSTRUCTION OF POLAND (ROP) HAMMER ON THESE ISSUES. (NOTE:
NONE QUESTION A MARKET ECONOMY; THEY JUST DISAGREE AT THE MARGINS
OVER ISSUES LIKE THE PACE OF CHANGE AND DEGREE TO WHICH THOSE
AFFECTED BY CHANGE SHOULD PARTICIPATE IN THE PROCESS. END NOTE.)
19. MEANWHILE, GENUINE LIBERAL PARTIES (UNION OF FREEDOM),
LIBERAL-PEASANT PARTY (SKL), CONSERVATIVE COALITION (KK) AND THE
ONE HUNDRED MOVEMENT) TOGETHER APPEAL AT MOST TO PERHAPS 15
PERCENT OF THE ELECTORATE.
"OLIGARCHICAL CAPITALISM" AHEAD?
20. SOME OPPOSITION LEADERS WARN THAT "OLIGARCHICAL CAPITALISM"
LIES AHEAD IF PRESENT TRENDS CONTINUE. (IN POPULAR PARLANCE, THE
TERM REFERS TO THE CONCENTRATION OF WEALTH OR CONTROL OF KEY
ECONOMIC ASSETS IN POST-COMMUNIST HANDS WHILE AVERAGE POLES
STRUGGLE.) THIS PHRASE IS NOW COMMON IN ROP AND AWS, INCLUDING
AWS SIGNATORIES LIKE THE ONE HUNDRED MOVEMENT (WHOSE ECONOMIC
VIEWS ARE FREE MARKET BUT WHO BELIEVE "TRUE LIBERALS" SHOULD
WORRY MORE ABOUT THE GROWING ECONOMIC POWER OF POST-COMMUNIST-
CONTROLLED HOLDING COMPANIES LIKE "ELECTRIM," "UNIVERSAL," AND
"CIECH"). LEADERS OF SMALLER SLD SIGNATORIES LIKE OPZZ TRADE
UNION AFFILIATES AND THE POLISH SOCIALIST PARTY (PPS), WHOSE
ELECTORATES HAVE NOT BENEFITTED AS MUCH FROM THE TRANSFORMATION,
ALSO OBJECT TO THE CONCENTRATION OF ECONOMIC POWER
21. IN A RECENT DEBATE ON THE OP-ED PAGES OF THE FREE MARKET-
RIGHTIST DAILY "ZYCIE," PUBLICISTS LARGELY AGREED THAT POLAND
SHOWS SIGNS OF "OLIGARCHICAL CAPITALISM," WHILE DISAGREEING OVER
ITS SCOPE AND WHAT TO DO ABOUT IT. DEBATE PARTICIPANTS TENDED TO
AGREE THAT "OLIGARCHICAL CAPITALISM" HAS ACCELERATED SINCE 1993.
THEY WORRY LESS ABOUT THE ABSENCE OF SMALL/MEDIUM ENTERPRISES
(THERE ARE NOW MORE THAN 2M), BUT THEIR DEPENDENCE ON OFTEN POST-
COMMUNIST- RELATED COMPANIES AND BANKS AND GOVERNMENT OFFICIALS,
WHICH INHIBITS EMERGENCE OF A LARGER ENTREPRENEURIAL-BASED MIDDLE
CLASS. AS ONE HUNDRED MOVEMENT LEADER CIESLAW BIELECKI RECENTLY
PUT IT TO US: "WHAT IS IMPORTANT IN BUILDING HEALTHY CAPITALISM
IS NOT THE NUMBER OF MERCEDES ON THE STREETS BUT THE SIZE OF THE
MIDDLE CLASS AND THE PERCENTAGE OF YOUTH IN HIGHER EDUCATION. IN
THE LATTER, THE TRENDS ARE NOT THAT POSITIVE." ANDRZEJ
BRATKOWSKI, A PROMINENT ECONOMIST ASSOCIATED WITH LESZEK
BALCEROWICZ'S "CASE INSTITUTE," RECENTLY ENTITLED AN OP-ED PIECE
"IF THINGS ARE SO GOOD, WHY ARE THEY SO BAD?"
INCOME DISTRIBUTION TRENDS
22. INCOME DISTRIBUTION DATA SUGGEST STRONG INCOME-BASED SOCIAL
STRATIFICATION. THE KATOWICE DAILY "DZIENNIK ZACHODNY," CITING
GOVERNMENT STATISTICAL OFFICE (GUS) FIGURES) IN OCTOBER PUT 7-10
PERCENT OF THE POPULATION IN THE "RICH" CATEGORY, 13-30 IN
"SERIOUS POVERTY," AND CONCLUDED THAT THE REST OF THE POP > Return to Index
POVERTY IN POLAND: "IF THINGS ARE SO GOOD, WHY ARE THEY SO BAD?"
April 18 2001 at 8:52 PM
No score for this post Óëüòðà Ðóññêèé Íàöèîíàëèñò (login Ultra_Russian_Nationalist)
from IP address 208.14.205.1
FM AMEMBASSY WARSAW
1. THIS IS THE FIRST IN A SERIES ON SO-CALLED "POLSKA B," THE
OTHER SIDE OF POLAND'S IMPRESSIVE ECONOMIC PERFORMANCE. THE
SECOND WILL VIEW THE GAP BETWEEN PERCEPTIONS OF POVERTY AND
REALITY. THE THIRD WILL ASSESS POVERTY'S INFLUENCE ON POLISH
POLITICS AND ECONOMIC AND SOCIAL POLICY.
INTRODUCTION AND SUMMARY
2. VIEWS ON HOW POLAND IS DOING EIGHT YEARS AFTER THE ROUNDTABLE
VARY CONSIDERABLY, DEPENDING ON THE SOURCE. THE PREVAILING VIEW
IN WESTERN INSTITUTIONS AND MUCH OF ELITE OPINION IN POLAND IS
THAT STRONG MACROECONOMIC PERFORMANCE IS LIFTING A MAJORITY OF
BOATS, ALTHOUGH IT WILL BE DECADES BEFORE POLAND REACHES EVEN
SPAIN'S STANDARD OF LIVING. THE MATERIAL SITUATION FOR A
MAJORITY OF POLES REMAINS TOUGH AND SOME LIBERALS WARN THAT WHILE
THE MARKET IS TAKING ROOT, IT SHOWS SIGNS OF "OLIGARCHICAL
CAPITALISM." THE DIFFERENCE IN THESE ASSESSMENTS IS PARTLY
POLITICS, PARTLY REFLECTS GENUINE DIFFICULTIES IN ADAPTING TO THE
MARKET AND VARIOUS PATHOLOGIES WHICH HAVE EMERGED DURING THE
TRANSFORMATION, BUT ALSO THE TENDENCY FOR SOME OBSERVERS TO SEE
THE GLASS HALF FULL ("POLSKA A"), WHILE OTHERS SEE IT HALF EMPTY
("POLSKA B"). IN SHORT, THE GOOD NEWS IS ACCURATE, BUT SO ARE
REPORTS ABOUT THE OTHER SIDE OF THE COIN.
THE GOOD NEWS
3. POLAND'S GROWTH STATISTICS ARE IMPRESSIVE BY ANY STANDARD.
IBRD AND IMF ASSESSMENTS OF AGGREGATE ECONOMIC TRENDS ARE
FAVORABLE, DESPITE INDIVIDUAL AREAS OF CONCERN (REF A). AS
COMPARED WITH MOST OTHER POST-SOVIET ECONOMIES, THE POLES HAVE IT
GOOD: THEIR CURRENCY IS STABLE, BANKING CRISES ARE RARE, CONSUMER
CREDIT IS EXPANDING, WORKERS GET PAID FULLY AND USUALLY ON TIME,
WAGES/SALARIES RISE REGULARLY AND IN REAL TERMS (INCLUDING IN THE
"BUDGET SECTOR"), AND POLAND IS IN THE MIDDLE OF AN UNPRECEDENTED
POST-1989 ERA OF SOCIAL PEACE (THE NUMBER OF STRIKES HAS
PLUMMETED FROM A HIGH OF SEVERAL THOUSAND IN THE EARLY 1990S TO
SEVERAL DOZEN IN 1996). PER CAPITA INCOME HAS RISEN EVERY YEAR
SINCE 1994 AND FAR EXCEEDS THE AVERAGE IN THE FSU AND IN SOUTHERN
TIER STATES. EVEN UNEMPLOYMENT, WHICH REMAINS HIGH AT ABOUT 14
PERCENT, IS NOW NOT MUCH HIGHER THAN IN GERMANY (WITH WHICH
POLAND PREFERS TO COMPARE ITSELF) AND THIS FIGURE OBSCURES A
LARGE NUMBER OF TECHNICALLY UNEMPLOYED HARD AT WORK IN THE GREY
ECONOMY.
4. THE PACE OF CHANGE IN LANDSCAPES AND CITYSCAPES CONTINUES TO
PICK UP. BRIGHT, WELL-STOCKED NEW SHOPS CONTINUE TO SPRING UP
LIKE MUSHROOMS AFTER THE PROVERBIAL RAIN, INCLUDING IN PROVINCIAL
TOWNS RELATIVELY UNTOUCHED BY THE DYNAMISM VISIBLE IN MAJOR
CITIES, WHERE NEW OFFICE BUILDINGS ARE GOING UP AND ROADS ARE
CLOGGED WITH NEW CARS. (IN 1996, POLAND WAS IN FIRST PLACE IN
EUROPE AS MEASURED BY GROWTH IN CAR SALES OVER 1995, UP 41
PERCENT.) HOME APPLIANCE SALES ARE WAY UP AND MORE AND MORE
POLES NO LONGER THINK OF TAKING THEIR HOLIDAYS IN POLAND.
5. JOURNALISTS HAVE IDENTIFIED A NEW CLASS OF "PUPPIES" (POLISH
YUPPIES), VISIBLE PARTICULARLY IN MAJOR CITIES. SERIOUS
RESEARCHERS FIND EVIDENCE THAT POLAND HAS CROSSED THE LINE AND
BECOME A WESTERN-STYLE "CONSUMER SOCIETY," ALBEIT AT A DIFFERENT
STAGE. SOLIDARITY'S CHIEF ECONOMIST, JANUSZ MICHALSKI, ESTIMATES
THAT ABOUT 30 PERCENT OF THE POPULATION HAS BENEFITTED
SIGNIFICANTLY FROM THE ECONOMIC TRANSFORMATION. IN SHORT, POLAND
HAS TRAVELLED AN ENORMOUS DISTANCE SINCE 1989 (REF B) AND
DESERVES ITS REPUTATION AS AN "EASTERN EUROPEAN TIGER."
THE SQUEEZE CONTINUES
6. THERE IS, HOWEVER, ANOTHER SIDE TO THE POLISH "SUCCESS STORY"
WHICH CAN GET LOST AMIDST THE CONTINUING, USUALLY GOOD NEWS. THE
FACT REMAINS THAT A MAJORITY OF THE POPULATION STILL STRUGGLES TO
MAKE ENDS MEET. STEADY PRICE INCREASES, PARTICULARLY IN DAILY
NECESSITITIES HAVE ERODED INCOME GROWTH, LEAVING MILLIONS OF
POLES BELIEVING THEY ARE STILL NOT MUCH BETTER OFF NOW THAN THEY
WERE 3-5 YEARS AGO, EVEN AFTER THEIR APARTMENTS NOW SPORT
SATELLITE TVS, CHILDREN WEAR SPORTY SNEAKERS, AND VCR OWNERSHIP
IN WORKERS' HOUSEHOLDS HAS INCREASED FOUR-FOLD (FROM 20 TO 70
PERCENT) AND AMONG PEASANTS SIX-FOLD (FROM 5 TO 30 PERCENT) SINCE
1990.
7. ON THE INCOME SIDE, WAGES/SALARIES IN MOST CATEGORIES,
INCLUDING THE "BUDGET SECTOR" AND FOR PENSIONERS HAVE RISEN AT
LEAST 15 PERCENT IN REAL TERMS SINCE 1994, BUT:
-- AVERAGE WAGES IN "POLSKA A" (MAJOR CITIES AND HEAVY INDUSTRY)
REMAIN LOW: ABOUT USD 350/MONTH, OR SOME USD 3/PERSON/DAY FOR A
FAMILY OF FOUR WITH ONE WAGE EARNER;
-- IN "POLSKA B" (THE PROVINCES) AVERAGE INCOME IS LOWER: OFTEN
LESS THAN USD 250/MONTH, OR USD 2/PERSON/DAY IN FAMILIES WITH ONE
WAGE EARNER;
-- INCOMES ARE LOWER STILL IN THE POCKETS OF CHRONIC, STRUCTUAL
POVERTY ("POLSKA C") WHERE UNEMPLOYMENT HAS REMAINED IN THE 20-30
PERCENT RANGE SINCE 1990, AND AMONG SOCIAL GROUPS LIKE LARGER
FAMILIES AND YOUTH WITH BASIC EDUCATIONS.
-- OFFICIAL SALARIES IN MANY "MIDDLE CLASS" PROFESSIONS REQUIRING
HIGHER EDUCATION (PROFESSORS, TEACHERS, CULTURAL WORKERS AND
MEDICAL PROFESSIONALS) ARE SO LOW (AND LESS THAN INDUSTRIAL
WORKERS) THAT THEY SEVERELY DISTORT THE FUNCTIONING OF SUCH KEY
SECTORS AS HEALTH AND EDUCATION. (MANY OF THESE HAVE SECOND,
OFTEN LUCRATIVE, JOBS);
-- WOMEN IN FAMILIES WHERE ONLY THE HUSBAND TRADITIONALLY WORKS
(E.G. RELATIVELY WELL-PAID MINERS IN UPPER SILESIA) ARE
INCREASINGLY CONTEMPLATING WORK OR ENTERING THE WORKFORCE;
-- THERE IS A GROWING PERCEPTION THAT FAMILIES MUST HAVE TWO WAGE
EARNERS TO ENJOY A MEASURE OF FINANCIAL STABILITY;
8. ON THE EXPENSE SIDE, AS PRICES EDGE TOWARD MARKET LEVELS,
AVERAGE POLES WORRY THAT THEIR INCREASING INCOME FAILS TO KEEP UP
WITH THE RISING COST OF LIVING:
-- UTILITY PRICE INCREASES CAN ALMOST DOUBLE THE COST OF HOUSING.
(SOLIDARITY RECENTLY CALCULATED THAT ENERGY PRICES HAVE RISEN 156
FOLD SINCE 1989.) WITH RENT CONTROL KEEPING HOUSING COSTS BELOW
MARKET LEVELS AND HOUSING LOANS REMAINING DIFFICULT TO OBTAIN,
THOUSANDS OF POLES HAVE CHOSEN NOT TO BUY THEIR APARTMENTS;
-- THEORETICALLY FREE EDUCATION AT ALL LEVELS NOW COSTS REAL
MONEY, LEADING TO CHARGES THAT ENTRY INTO THE HIGHLY-PAID
PROFESSIONS -- VIA HIGHER EDUCATION -- MAY BECOME INCREASINGLY
ONLY FOR THOSE WHO CAN AFFORD IT;
-- HEALTH CARE LONG AGO CEASED BEING "FREE." POLES MUST NOW
GREASE THE SKIDS FOR EVEN ROUTINE TREATMENT, WHILE MORE EXPENSIVE
CARE IS COMMENSURATELY MORE EXPENSIVE;
-- WHILE FOOD PRICES ARE STILL BELOW THOSE IN WESTERN EUROPE,
EXPENDITURES ON FOOD COMPRISE AT LEAST 38 PERCENT OF AVERAGE
POLES' INCOMES (AND AS MUCH AS 60 PERCENT OF MONTHLY EXPENSES FOR
LOWER INCOME POLES), ACCORDING TO A NOVEMBER ESTIMATE. THIS
PERCENTAGE IS HIGH COMPARED WITH COUNTRIES WITH WHICH POLES LIKE
TO COMPARE THEMSELVES; AND
-- A SENSATIONAL STORY IN OCTOBER CITING CONFIDENTIAL REMARKS AT
A GOVERNING SOCIAL DEMOCRACY OF THE REPUBLIC OF POLAND (SDRP)
RETREAT REPORTED THAT WHILE OVERALL INFLATION IS DECREASING,
INDIVIDUAL CONSUMER NECESSITIES ARE RISING FASTER WHICH HAS HIT
POLISH POCKETBOOKS -- AND THE SDRP ELECTORATE -- VISIBLY.
ESTIMATES OF POVERTY
9. THE POLISH PRESS COVERS THESE POCKETBOOK ISSUES VERY
CLOSELY. DURING THE LATTER HALF OF 1996, THE MEDIA REPORTED THE
RESULTS OF SEVERAL STUDIES (SEPTEL) WHICH CONCLUDED THAT ANYWHERE
FROM A SUBSTANTIAL MINORITY TO A SLIM MAJORITY OF THE POLISH
POPULATION "LIVES IN POVERTY." A SAMPLING OF THE RESULTING
HEADLINES: "FIVE MILLION POLES IN POVERTY;" "16.5 MILLION POLES
IN POVERTY;" (USING A MORE FLEXIBLE DEFINITION OF THE
PHENOMENON); "THE RICH ARE GETTING RICHER AND THE POOR POORER;"
"WILL POLAND FOLLOW THE PATH OF LATIN AMERICA?" AND "THE POLISH
FAMILY IS GETTING POORER."
10. RECENT OPINION POLLS WHICH ATTEMPT TO GAUGE POLES' MATERIAL
SITUATION COMPARED TO OTHER CENTRAL EUROPEANS PARTLY OVERLAP WITH
THESE STUDY RESULTS. A WALL STREET JOURNAL POLL RELEASED
FEBRUARY 10 PUT POLES AHEAD OF CITIZENS OF MOST FORMER SOVIET
BLOC STATES, BUT BEHIND THE CZECHS AND HUNGARIANS. THIS SURVEY
SHOWED THAT 44 PERCENT OF POLES QUERIED SAID THEY HAVE "LITTLE OR
NOTHING," 33 PERCENT SAID THEY HAVE "A LITTLE WHICH THEY NEED"
WHILE 23 PERCENT ANSWERED THAT THEY HAVE "ALL THEY NEED."
"LIVING LIKE HUMANS"
11. THE SHORTAGE OF WESTERN-STYLE HOUSING REINFORCES POLES'
SENSE THAT THEY ARE "POOR." ON THE ONE HAND, NEW TOWNHOUSE
COMPLEXES AND MODERN APARTMENT BUILDINGS CONTINUE TO GO UP IN
AROUND MAJOR CITIES AND IN PROVINCIAL AREAS AS WELL. THE DO-IT-
YOURSELF HOME RENOVATION MARKET IS BOOMING. MORTGAGES ARE ALSO
INCREASINGLY AVAILABLE. HOWEVER, THESE PHENOMENA TEND TO APPLY
MORE TO UPPER INCOME EARNERS THAN TO CITY-BUILT, LOW-RENT HOUSING
SO MANY POLES PREFER. HOMELESSNESS IS NOT A SERIOUS PROBLEM,
ALTHOUGH IT HAS RISEN IN RECENT YEARS.
12. POLES STATISTICALLY STILL LIVE IN LESS SPACE/PERSON THAN
MOST CENTRAL/EAST EUROPEANS, ACCORDING TO A POLL PUBLISHED IN
EARLY MARCH. THE AVERAGE POLE HAS 19 SQUARE METERS AT HIS/HER
DISPOSAL, LESS THAN SLOVAKS (22), BULGARIANS (25), CZECHS (25),
AND HUNGARIANS (30). THE SAME SURVEY SHOWED THAT POLES HAVE 286
APARTMENTS/1000 PERSONS, BEHIND SLOVAKIA (306), ROMANIA (339),
CZECH REPUBLIC (360), HUNGARY (388) AND BULGARIA (401).
13. THIS EXACERBATES THE FEELING OF "RELATIVE DEPRIVATION" FELT
EVEN BY MEMBERS OF THE EMERGING URBAN MIDDLE CLASS, WHO EARN
SOLID INCOMES, VACATION OUTSIDE POLAND, AND OTHERWISE HAVE JOINED
THE CONSUMER SOCIETY. WHEN THEY OFTEN HAVE TO RETURN HOME AFTER
WORK TO GRAFFITI-COVERED, URINE-STAINED, SOVIET-STYLE HOUSING
BLOCKS UNTIL THEY HAVE SAVED ENOUGH FOR A DOWN PAYMENT ON A
REALLY NICE PLACE, IT IS EASIER TO UNDERSTAND THE ROLE LIVING
CONDITIONS PLAY IN FORMING CONSCIOUSNESS OUT IN "POLSKA B."
14. THE HOUSING PROBLEM RECENTLY LED "GAZETA WYBORCZA," POLAND'S
LARGEST CIRCULATION, CENTER-LEFT DAILY, TO URGE READERS TO FORM A
MOVEMENT TO PLACE SAFE, NICE HOUSING ON THE POLITICAL AGENDA. A
MARCH 1 HEADLINE ARTICLE ENTITLED "LIVING LIKE HUMAN BEINGS"
OBSERVED THAT HOUSING COULD BECOME THE THIRD MOST IMPORTANT ISSUE
IN THE UPCOMING PARLIAMENTARY ELECTIONS (FOR 71 PERCENT OF THOSE
POLLED, JUST AFTER UNEMPLOYMENT AT 74 PERCENT. PERSONAL SECURITY
WAS THE HIGHEST AT 82 PERCENT). THE PAPER ADDED THAT NEW HOUSING
UNITS COMPLETED IN 1996 WERE AT THE LEVEL OF 1952.
PRIORITIES: POCKETBOOK ISSUES
15. MANY POLES CONTINUE TO CONSIDER THEIR MATERIAL SITUATION
MORE IMPORTANT THAN ANYTHING ELSE. IN JANUARY, THE "OBOP"
POLLING FIRM FOUND THE FOLLOWING ISSUES TO BE THE MOST IMPORTANT:
UNEMPLOYMENT (68 PERCENT)
POVERTY OF A LARGE PART OF SOCIETY (36 PERCENT)
LOW WAGES (25 PERCENT)
HEALTH SERVICE (17 PERCENT)
PRIVATIZATION (13 PERCENT)
HOUSING (13 PERCENT)
(FOREIGN AND DEFENCE POLICY WERE OF LESS CONCERN.)
16. ANOTHER JANUARY SURVEY REFLECTED THESE CONCERNS. FOR ALMOST
HALF THE POPULATION, THE MOST WORRISOME ISSUE WAS HEALTH CARE.
FORTY PERCENT OF THE POPULATION WAS MOST WORRIED ABOUT POVERTY,
37 PERCENT FEARED LOSING THEIR JOBS, 31 PERCENT A LACK OF
OPPORTUNITY FOR YOUTH, 27 PERCENT A LOWERED STANDARD OF LIVING.
"LIBERALISM": BECOMING A BAD WORD?
17. NOT SURPRISINGLY, THE OPPOSITION ZEROES IN ON THESE CONCERNS
IN DOMESTIC POLITICAL DEBATES (THUS TURNING TABLES ON COALITION
PARTIES WHICH USED THEM TO GREAT EFFECT IN 1989-93). AGAINST THE
BACKGROUND OF CONTINUING HARDSHIP, THE TERM (ECONOMIC) "LIBERAL"
HAS ACQUIRED PERJORATIVE OVERTONES, LEADING MANY POLITICIANS TO
TURN INTELLECTUAL SOMERSAULTS TO AVOID CALLING THEMSELVES OR
THEIR POLICY PRESCRIPTIONS "LIBERAL."
18. WHILE THE SDRP, FOR EXAMPLE, ENJOYS BEING CONSIDERED
RELATIVELY "LIBERAL" ON FOREIGN INVESTMENT, IT STUDIOUSLY AVOIDED
MENTIONING FREE MARKET REFORMS DURING A PROGRAM CONFERENCE
EARLIER THIS MONTH, STRESSING INSTEAD ITS SOCIALIST VALUES AND
FOCUSING ON POPULAR THEMES LIKE REDUCING HOUSING SHORTAGES,
UNEMPLOYMENT, POVERTY, AND ACHIEVING SOCIAL JUSTICE.
PARLIAMENTARY LEFT (UNION OF LABOR) AND EXTRAPARLIAMENTARY RIGHT
PARTIES (SOLIDARITY ELECTORAL ACTION (AWS) AND MOVEMENT FOR THE
RECONSTRUCTION OF POLAND (ROP) HAMMER ON THESE ISSUES. (NOTE:
NONE QUESTION A MARKET ECONOMY; THEY JUST DISAGREE AT THE MARGINS
OVER ISSUES LIKE THE PACE OF CHANGE AND DEGREE TO WHICH THOSE
AFFECTED BY CHANGE SHOULD PARTICIPATE IN THE PROCESS. END NOTE.)
19. MEANWHILE, GENUINE LIBERAL PARTIES (UNION OF FREEDOM),
LIBERAL-PEASANT PARTY (SKL), CONSERVATIVE COALITION (KK) AND THE
ONE HUNDRED MOVEMENT) TOGETHER APPEAL AT MOST TO PERHAPS 15
PERCENT OF THE ELECTORATE.
"OLIGARCHICAL CAPITALISM" AHEAD?
20. SOME OPPOSITION LEADERS WARN THAT "OLIGARCHICAL CAPITALISM"
LIES AHEAD IF PRESENT TRENDS CONTINUE. (IN POPULAR PARLANCE, THE
TERM REFERS TO THE CONCENTRATION OF WEALTH OR CONTROL OF KEY
ECONOMIC ASSETS IN POST-COMMUNIST HANDS WHILE AVERAGE POLES
STRUGGLE.) THIS PHRASE IS NOW COMMON IN ROP AND AWS, INCLUDING
AWS SIGNATORIES LIKE THE ONE HUNDRED MOVEMENT (WHOSE ECONOMIC
VIEWS ARE FREE MARKET BUT WHO BELIEVE "TRUE LIBERALS" SHOULD
WORRY MORE ABOUT THE GROWING ECONOMIC POWER OF POST-COMMUNIST-
CONTROLLED HOLDING COMPANIES LIKE "ELECTRIM," "UNIVERSAL," AND
"CIECH"). LEADERS OF SMALLER SLD SIGNATORIES LIKE OPZZ TRADE
UNION AFFILIATES AND THE POLISH SOCIALIST PARTY (PPS), WHOSE
ELECTORATES HAVE NOT BENEFITTED AS MUCH FROM THE TRANSFORMATION,
ALSO OBJECT TO THE CONCENTRATION OF ECONOMIC POWER
21. IN A RECENT DEBATE ON THE OP-ED PAGES OF THE FREE MARKET-
RIGHTIST DAILY "ZYCIE," PUBLICISTS LARGELY AGREED THAT POLAND
SHOWS SIGNS OF "OLIGARCHICAL CAPITALISM," WHILE DISAGREEING OVER
ITS SCOPE AND WHAT TO DO ABOUT IT. DEBATE PARTICIPANTS TENDED TO
AGREE THAT "OLIGARCHICAL CAPITALISM" HAS ACCELERATED SINCE 1993.
THEY WORRY LESS ABOUT THE ABSENCE OF SMALL/MEDIUM ENTERPRISES
(THERE ARE NOW MORE THAN 2M), BUT THEIR DEPENDENCE ON OFTEN POST-
COMMUNIST- RELATED COMPANIES AND BANKS AND GOVERNMENT OFFICIALS,
WHICH INHIBITS EMERGENCE OF A LARGER ENTREPRENEURIAL-BASED MIDDLE
CLASS. AS ONE HUNDRED MOVEMENT LEADER CIESLAW BIELECKI RECENTLY
PUT IT TO US: "WHAT IS IMPORTANT IN BUILDING HEALTHY CAPITALISM
IS NOT THE NUMBER OF MERCEDES ON THE STREETS BUT THE SIZE OF THE
MIDDLE CLASS AND THE PERCENTAGE OF YOUTH IN HIGHER EDUCATION. IN
THE LATTER, THE TRENDS ARE NOT THAT POSITIVE." ANDRZEJ
BRATKOWSKI, A PROMINENT ECONOMIST ASSOCIATED WITH LESZEK
BALCEROWICZ'S "CASE INSTITUTE," RECENTLY ENTITLED AN OP-ED PIECE
"IF THINGS ARE SO GOOD, WHY ARE THEY SO BAD?"
INCOME DISTRIBUTION TRENDS
22. INCOME DISTRIBUTION DATA SUGGEST STRONG INCOME-BASED SOCIAL
STRATIFICATION. THE KATOWICE DAILY "DZIENNIK ZACHODNY," CITING
GOVERNMENT STATISTICAL OFFICE (GUS) FIGURES) IN OCTOBER PUT 7-10
PERCENT OF THE POPULATION IN THE "RICH" CATEGORY, 13-30 IN
"SERIOUS POVERTY," AND CONCLUDED THAT THE REST OF THE POPULATION
WAS LIVING HAND-TO-MOUTH.
**Provided courtesy of the Central and Eastern Europe Business Information Center (CEEBIC)
ULATION
WAS LIVING HAND-TO-MOUTH.
**Provided courtesy of the Central and Eastern Europe Business Information Center (CEEBIC)
April 18, 2001 3:57 pm
Thornhill:
posting it once
would have been quite sufficient,
we thank you.
=====
{+3sk}
April 18, 2001 8:20 pm
bagel, I think ur too emotionally involved, think u need to get fuked by a palestinian before u can project an objective view.
Kim, im totally backing u to become the mresponsibility here. u seen to have an objective stand on just about every issue (relatively speaking), by not what u type but what you cut & paste.
lmx u r a character out of a cartoon.... u make me laugh ALL THE TIME!!!
Polaks have a good economic growth bec. the United Stats of AllAMERICA wants that way!!!
Hitting Amsterdam to chill like a pack of negros in a snow bank... till then gonna be as cool as a Polar Bears toe nails.
Peace !
April 19, 2001 1:40 am
"Same happened to Russia-Chechnia, - a "peace accord" of 1996, a gangsterization of Chechnia, an attack on Dagestan, Russians intervening. Doesn't matter how foul they cry "Foul!", Putin does not care. " THE ONLY DIFFERENCE BEING IS THAT ISRAEL WILL STILL GET MONEY WHILE US AND EU WILL TRY SOME SANCTIONS OUT ON RUSSIA.
Topic starter
April 19, 2001 10:00 am
* Just not so sure about the labels!
Pardonnez.
E-h-h ... , and the costume party might look too "politicised", right:o)
* Earth Liberation Front
There are fights here too over the plastic waste,- shopping bags, bottles. The paper waste is taken care of with cardboard boxes proudly bearing a "Recycled" logo. But paper is not the nasty plastic.
The more developed is a country, the more waste it produces. See the paradox? The development is (at least) supposed to bring the caring attitude towards environment, but ... the Universe is cruel, whatever and regardless of the clintonisms.
("Who was Saddam? - A small-time dictator of the Clinton era.";o)
I dislike those British animal rights terroristic maries & ann-frankensteins. They cannot (nothing short of a nuclear war can) stop the technology evolution. They offer no alternatives. And the research can be simply moved to some Africa and then, away from the public scrutiny, it may evolve into something else.
* Apparently the economist charge for their articles on the Web [...]
Not because of the new British law on the economics analysts? [Joke;o)]
* (for the CERN censors and paranoid government agents everywhere!)
Let's post everything encrypted! Just imagine Sligar's face!;o))))))))))))))))))))))
Seriously now, that I have come to think of it, - only the one who programs everything by oneself, can be somehow sure about trojans, silent "home-callers", etc..
Topic starter
April 19, 2001 10:05 am
* "THE ONLY DIFFERENCE BEING IS THAT ISRAEL WILL STILL GET MONEY WHILE US AND EU WILL TRY SOME SANCTIONS OUT ON RUSSIA.
Go away, Volk! Sanctions! What sanctions?! Enforcing of the debt return? - Russia pays it, as scheduled. Enforcing more? - One cannot put up more mileage, than a gas tank allows. Kicking Russia out of the Europarliament? - Who gives a damn about this unemployed lords' convention, that will fail, if they decide to lobby Germany into a sanctions folly, and the Russian spy speaks natively fluent German. Cutting off loans? - For the first time, since Gorby's "success" (the CIA owes him a dedicated monument) in burial activity, Russia has balanced its State Budget and refused IMF loans. The IMF urgently flew over to Russia to babble something. Sanctions work against small states, like Serbia. They don't work against hippos like Russia and China (I still stick to my view on reasons for that US spy-plane collision), and against Ivory Coasts and Burundis, which look like sanctions themselves.
Russia is richer, than the US, with their trillions in debt (if the Chinese decide one day to dump all their US Govt. bonds on them for liquidation, the whole US will look like a nucelar-war aftermath), it is only a matter of time for Russia to put on more hippo weight, if the spy doesn't make silly moves.
Get rid of Gusinsky & Co and put normal Jews, like Kirienko, in charge, and enjoy;o))
BTH, Maple Leaf crusader, what Israel gets, is a US Govt. handout for the US arms manufacturers:oP
And it is 7% or 8% of the Israeli budget.
And, for all I know, it stays in the US.
It's a single unique opportunity of uninterrupted rolling out of gunpowder for the sake of two noble goals - keeping US workers employed and taxable, and our local jihadniks unemployed for good;o))))) See, everyone wins. The Internal Revenue Rob... , e-e-h-h, sorry, Service and the Israeli Ministry of Defen... , e-e-h-h, sorry, Unemployment.
BBTH, want a couple of horror stories about ZoneAlarm to learn something useful and to keep Yourself off the silly Jew-bashing?
BBBTH, do You know that, toyguns are not popular in Israel?
BBBBTH, do You know that, the movies, containing some exposure action (exclude the explicit pornography, of course) do not bear an age-limit warning, but violent action ones, even the innocent "Executive Decision"-type, bear "Haseret haze lo mumlatz l'tzfiya l'eladim mitahat l'gil shmona-esre"? (Pity, the MB doesn't support Hebrew for more clear understanding.) Learn, that Israelis are not violent people and the "Make steak - not war" motto is the motto of choice, as distinct from usual mottos of our cousins nearby, which generally are a bad parody on an equally bad "Kill a commie for mommie". Sure, there are some crooks among Jews, - noone is perfect, even (and the last bite at You) the chosen people.
But for therapeutical purposes I will repeat that, the more other peoples dwell on Jewish "chosiness-whatever" - the more they dwarf themselves by themselves, and lose appetite, and get thinner 'n thinner, and, eventually, go into oblivion.
BBBBBTH, do You know that, there are internets parralell to the Internet You know of?
Topic starter
April 19, 2001 11:45 am
Tiz is progressing, - relatively less vol.% of stench, and collecting colloquialisms, - getting ready for a green card lottery, I guess.
But ... still advertizing himself as moron, and it is old "news".
April 19, 2001 11:49 am
OHAYA, KISAKO!
mornin. mum!
1044 am edt
===
K-san,
hard to believe perhaps, but Mad Mad Marie insists
that she's american, living in florida.
dunno what to say about her 4'10" transvestite
boyfriend; just another SUCKA who lives in a shed.
...just like _you_,
FAKE AMERICAN REAL ARAB GROSS PIG FARIS HOMOUD!
you forgot to tell us all
how much fun you had in BOSTON, FARIS HOMOUD.
what, you say? that was just an IDIOT LIE from an
IDIOT LIAR?
pince cabron. -_-
hock-ptui!
===
you're alone among people who consider you HUMAN
WASTE PRODUCTS, FAKE AMERICAN GROSS PIG FARIS
HOMOUD...
where's your good buddies, FAKE?
where's BACON? [maybe later? yeah, you'd better
hope so]
where's that stupid fool INFORMER?
no it's just _you_ here, FAKE.
paddling your way through an ocean
of PURE SCORN,
PURE DISGUST.
====
{+3sk}
April 19, 2001 12:14 pm
CORPORATE INCOME TAX
In 1994, the nominal rate of income tax was kept at 40%. Legal entities whose seat or management is to be found on Polish territory are liable to have their entire earnings taxed at this rate, However, should the taxpayer be based abroad, only that income generated in Poland is liable to taxation. Income tax on dividends or from other earnings derived from profits earned by legal entities based in Poland amount to 20% of that income.
INVESTMENT TAX RELIEF
A new investment tax relief system was introduced across the board in 1994. Economic entities whose pre-tax profits in 1993 were equal to at least 8% of their takings and which have no tax arrears or other liabilities such as contributions to the Social Insurance Fund will be able to subtract from the tax base any sum invested up to 25% of profits earned. Should at least 60% of receipts come from exports, the tax relief will rise to 50% of earnings. This tax relief will not be applicable to tax-payers availing themselves of tax relief, allowances and exemp-tions under the provisions of other regulations. Associated with the relaxation in income tax rates is the change in the law regarding joint venture companies. Previously, according to the law of 23rd December 1988, concerning joint venture firms, a three year moratorium on income tax was in force. The beginning of this period was calculated as starting from the first invoice. With the aim of activating companies which had hitherto not undertaken economic activity, this relief was limited to joint venture companies which started trading and presented their first invoice before 3 1 st March 1994.
VAT
The law of 8th January 1993 on the taxation of goods and services and excise duty came into force on 5th June 1993 and superseded the turnover tax. The basic char-acteristic of the new tax, being the Polish equivalent of VAT, is the manner by which it is calculated from the net value of every transaction, which in practice results in the tax liability falling wholly on the final purchaser of a given product. Businesses where the value of goods and services (including exports) provided did not exceed 1,200,000,000 zlotys in 1993 are not liable to VAT. Taxpayers who pay income tax by means of tax cards are similarly free of VAT liability. Firms which began trading in 1994 may also choose not to pay VAT if the projected value of goods sold, in relation to the sales period, does not exceed 1,200,000,000 zlotys. The VAT Law provides for three levels of taxation: the basic rate of 22%, the lower rate of 7% and finally a 0% rate. The basic rate is applicable to goods and services to which the lower rates do not apply. The categories of goods and services to which the various rates apply are sub-ject to change, so it is therefore necessary to consult the current regulations in order to determine any particular commodity's VAT liability. The following commodities are free of VAT: meat products, poultry and egg products, fish and seafood products, raw dairy products, horticultural products, game and forestry products, and basic medicines (as listed by the Minister of Health and Social Security). VAT is also not applicable to the export of goods and services, and the sale of goods. The 0% VAT rate is applicable to international transport, the leasing of stalls at exhibitions and trade fairs, on behalf of foreigners as defined by the Foreign Exchange Law, the transfer of electrical energy across Polish territory and the repair, refining, treatment or processing of materials brought within the jur-is-diction of Polish customs for a set period.
EXCISE DUTY
This tax was introduced with the Act of 8th January 1993 on the taxation of goods and services and excise duty (Journal of Laws No. 11, Item .50, with later amend-ments), Amongst the goods subject to excise duty are motor fuels, alcohol and tobacco products, gas weapons, tools for manufacturing gaming machines, electri-cal goods, boats, yachts, and cars. For most goods, the rate of excise duty cannot be higher than 25% of the manu-facturer's price and 46% of the customs value plus customs duty for the importer. However, for vodka and rectified spirits, the rates are 95% and 1900% respective-ly. For motor fuels, wines, beers, other alcoholic beverages and tobacco products, the rates are 65% and 190%. Cars are taxed at 40% and 65%. For goods liable to excise duty the base is arrived at by combining the customs value and the basic rate of customs duty plus the import tax. This also applies in instances where goods are exempt from some or all customs duties by virtue of other regulations, or the duty has been waived or lowered. If the basic rate of cus-toms duty has not been stipulated, one is determined on a case by case basis.
IMPORT TAX
Import tax was introduced on Ist January 1994 on goods imported from abroad. The tax rate adopted was based on the customs value plus customs duty, a rate which applies even for those goods which are free of some or all import duty by virtue of other regulations, or on which the duty has been waived or lowered. Import duty is included in calculating the rate of VAT as well as excise duty and amounts to 6% of the tax.
PERSONAL INCOME TAX
In 1994, three tax rates are applicable, with just a small sum exempt from taxation. The 21 % rate will apply where the rate of taxation will not yield more than 90.8 million zlotys in the course of the year. The rate of 33% will apply where the tax yield will fall between 90.8 million zlotys and 181.6 million zlotys, and for sums over the latter figure, the rate of taxation will be 45%. In comparison to 1993 all general income tax rates have risen, with the highest earners experiencing the greatest increase (one of 5%). Investment tax relief for all, however, is being introduced simultaneously. The accepted practice is that in the general raising of tax rates, those with the highest incomes are the most affected, and in particular when incomes are spent on con-sumption rather than on investment. The tax is levied on all individuals residing permanently in Poland and those who remain in the country for over 6 months. It is also payable on the income of individuals residing abroad if the source of that income is to be found in Poland,
PROPERTY TAX
There are three different types of tax in Poland, dealing with property, agriculture and forestry. The differentiation between these three similar taxes has an important practical aspect, as the rate of taxation for property is far higher than that for the other two. The Law of local taxation and payments covers the general principles governing the demarcation between agricultural and property -interests. If a given area of land is not covered by the provisions of the Law of agricultural taxation or that of forestry, then it is taxed at property levels. The levels of property tax rates are decided by the Minister of Finance, but they cannot, in the course of the year, exceed 0.1% of the value of a residential build-ing, 2% of the value of a farm building, and the specific rate per one square metre of taxable land surface. Commune councils have the authority to reduce these rates or to grant tax concessions in legally recognised situations. Individuals and legal entities, as well as organisational units without legal personality status, are all liable to property tax. The tax covers buildings, the parts thereof, buildings used for conducting business other than that connected with agriculture, land not covered by the provisions of agricultural tax, or if so covered, with the proviso that the use is other than agri-cultural. Agricultural tax is calculated on the basis of the "convertible hectare" units held, that take into account differing classes of arable land, as well as the different economic and climactic conditions. Only farms covering more than I hectare and with over 1 hectare of land in cultivation are liable to this tax. Exemptions from taxation include: nland given over to non-agricultural economic use u land made up of the poorest quality soils n land which is unproductive for the period of the installation of drainage systems. Further to the exemptions listed above, farmers also have the right to a tempo-rary suspension of tax (from I to 15 years) or a reduction in the tax rate (ie. in hilly or mountainous areas).
AVOIDANCE OF DOUBLE TAXATION
In accordance with the standard agreements of the OECD, to which Poland is a signatory, it is recognised as a general principle that the profits of a company are only taxed in the country where it is based. The exception being a company that has branches in the country of a possible partner, allowing for the profits earned there to be taxed in that country. The profits obtained from international transport services are also, as a rule, exempt from taxation "at source" (with the exception of some of the agreements concluded with developing countries). Agreements signed by Poland concerning the taxation of dividends sets the tax rate at 5-15% maximum. This rate may be lowered to 5% should the shareholder have a minimum share (usually 10% or 25%) in the equity capital of a company based in Poland. In the case of taxes on interest payments, most of the concluded agreements envisage exemption from taxation at source, which means that taxes on interest payments are co ecte exclusively by the state where the recipient is based. In the remaining agreements, tax is generally levied at a rate of 10%. Conventions on the avoidance of double taxation to which Poland is a signatory also envisage taxes on licence fees (usually of 1O%).
Source: The Foreign Trade Research Institute
¿Copyright by Instytut Koniunktur i Cen Handlu Zagranicznego
00-916 Warszawa, ul. Swietokrzyska 12
April 19, 2001 12:16 pm
Property relations between natural persons (private individuals), between legal persons (corporate bodies) and between natural and legal persons as well as civil rights, come under the jurisdiction of civil law. The basic normative Act in civil law is the Civil Code, which came on to the Statute Books on 23rd April 1964, with later amendments, particularly those of 28th July 1990. The Civil Code is based on the principle of the unity of civil law. This means that, in the Polish legal system, no distinction is made between so-called economic law and commercial law. All property relations between equal parties, regardless of whether they are profit-orientated or not, are subject to civil law. The Civil Code regulations are based on the following principles: the equality of all parties, regard-less of their ownership status, the equivalency of benefits (a benefit in favour of one party is subjectively reciprocated by a benefit in favour of the other party and non-beneficial actions are an exception), discretion and freedom of contracts. The Civil Code consists of four books, on the following: i. General issues, such as: legal status, legal capacity and capacity for legal actions, contracts, declarations of intent, representation and statutes of limitation. ii. Ownership and other substantive rights, in particular those dealing with the rights to property, the acquisition and loss of such rights, perpetual usufruct, the limited rights on property (pledge, mortgage, usufruct, casement) and posses-sion. These are absolute rights, the lists of which are finite. iii. Obligations, the definition and types thereof, contract and delict liability, the discharge and expiration of obligations; the detailed part defining typical, named types of contracts (such as of sale, contract deliveries, for works, mandatory contracts, agency contracts, commission sales, carriage and for-warding, hire, loans and bank credits). iv. Inheritance, for example, statutory and testamentary inheritance, wills, bequests, the liabilities of heirs, etc. Apart from the Civil Code, civil law also covers laws of copyright, invention and industrial design, trademarks, the Commercial Code, mining laws, the law on the use and conservation of inland waters, the skies and the seas, etc. In any appli-cation of these various laws, the Roman principle that the particular overrides the general prevails.
COMMERCIAL CODE
The Commercial Code, as decreed by the President of the Republic of Poland on 27th June 1934 (with later amendments), regulates the economic activity of the businessman - the person who, on his own behalf, runs a profit-orientated enter-prise. The provisions of the Commercial Code apply to commercial companies (registered partnerships, limited partnerships, limited liability companies and joint stock companies) as well as firms, procuration and the right of lien, the commer-cial register and liquidation of companies. A section of the Commercial Code, dealing with commercial contracts (agency, consignment, mediation and storage) was repealed in 1964 and it is now a part of the Civil Code. All Commercial Code provisions take precedence over those of the Civil Code. The Commercial Code guarantees a certain degree of leeway for parties negoti-ating the terms or founding the agreements of new firms. The provisions of the agreements take precedence over those of the Commercial Code. Amendments to the Commercial Code, which have been in preparation for over a year, are aimed at modemising its legal norms and adapting them to models pre-vailing in the EU. The provisions of the Commercial Code are strictly linked to such normative Acts as that of 13th July 1990, dealing with the privatisation of State-owned enter-prises, or the Act of 14th June 1991, concerning companies with foreign capital investment (Joint Ventures). The Commercial Code also includes: the 1926 law on restricting unfair competi-tion; the bankruptcy law of the 1936 Decree of the President of the Republic of Poland; the law on settlement procedures from the Decree of the President of the Republic of Poland of 1934.
LEGAL PROTECTION OF INDUSTRIAL PROPERTY
PROTECTION OF INDUSTRIAL AND INTELLECTUAL PROPERTY
In the last few years a number of changes have taken place with regard to the legal protection afforded industrial and intellectual property. One of the aims was to conforin with contemporary international standards and was the result of Poland signing the Association Agreement with the European Communities, the Patent Co-operation Treaty and the Polish-American Trade and Economic Treaty, all con-cluded in 199 1.
PROTECTION OF INDUSTRIAL PROPERTY
In Poland, industrial property - inventions, designs and patterns, trademarks and business names - are legally protected. In accordance with the amended law on inventions, foreigners or foreign legal persons are guaranteed legal protection for inventions, designs and technical improvements on the strength of international treaties to which Poland is a signa-tory (the Paris Convention of 1883 on the Protection of Industrial Property) or by reciprocal agreement.
PATENTS
A patent grants exclusive rights to an invention and its development for 20 years. The rights to a patent and the patent itself are transferable and can be inherited. Priority in claiming the rights to a patent is determined by the date of its submis-sion to the Patent Office. The law on inventions provides for two exceptions to the above rule. The first of these determines priority to the rights to the exploitation of a patent, according to the date on which the invention was first shown at an exhibi-tion or fair in Poland or abroad, should submission to the Patent Office take place within a six month period after this date. The Monitor Polski (Government Gazette) publishes the list of exhibitions/trade fairs decided upon by the President of the Patent Office as being eligible for con-sideration in these matters. Priority rights also apply to foreign citizens and the legal persons of states signatories to the International Union for the Protection of Industrial Property, as well as the citizens and legal persons of other states, should they have a place of residence or else run a business in a member state of the Union. Priority is determined by the date of the patent's registration in any one of these states. The patent must be submitted to the Polish Patent Office no later than 12 months after that date. The regulations concerning priority rights to a patent are also applicable to designs, patterns and trademarks. In order to receive a patent, an application and description have to be filed at the Patent Office. After at most 18 months from the moment of submission or the priority date, the Office announces the submission. From this moment the invention enjoys temporary protection. Within a 6 month period following the announcement, third parties can acquaint themselves with its particulars and lodge comments. When inventions are patented, a one-off fee is payable as well as regular pay-ments throughout the period under patent protection. An invention can be submitted to the Patent Office in person or through the offices of a patent agency, a registry of which is kept by the Office.
DESIGNS
In Poland, designs are protected upon submission to the Patent Office which grants protection rights and certificates to that effect. The holder of a protection certifi-cate has exclusive rights to the design in the territory of the Republic of Poland. These are valid for 5 years duration from the day of registration and can be extended for another 5 years.
PATTERNS
In Poland, these can also be protected. A certificate protecting ownership and exclusive rights to a pattern is issued by the Patent Office. Patterns for which a certificate has been granted are recorded in a special register. The right to an exclusive use of a pattern is granted for 5 years with an option for a further 5 year extension. A certificate is not issued when the use of a pattern would be contrary to law and the public good. Each pattern should be submitted to the Patent Office separately. In the event of several patterns being applicable to similar articles, ten of them can be presented at one time.
TRADEMARKS
Only those trademarks are registered which differentiate the goods produced or services rendered by one firm from the similar goods or services of another. A trademark cannot merely consist of the name of the type of goods, or infon-nation about their number, price, quality, etc. In Poland, a trademark is protected from the moment of registration. A trade-mark recognised by a sizeable element of the population to be associated with certain goods or services also enjoys legal protection even if it is not registered. This protection, however, is not afforded to goods or services of a different nature. Upon registration, a certificate of legal protection is issued. The right to use a trademark covers a 10 year period, that may be extended by another 10 years. The rights to a registered trademark are transferable. A trademark may be licensed. If a trademark has not been used in Poland for 3 consecutive years it loses legal pro-tection. A trademark can be filed at the Patent Office directly or through the offices of a patent agency. In Poland, separate legislation covers the legal protection of printed circuit designs (the Law on Protection of Printed Circuits of 30th October 1992, pub-lished in the Journal of Laws on 28th December 1992). The trading name (firma) of a business is protected by the regulations of the Commercial Code (Articles 26-38) and the Civil Code (Article 23). The various measures designed to bolster the legal protection afforded to indus-trial property are embodied in the law of 16th April 1993 dealing with unfair com-petition, which came on to the statute books on 9th December 1993. The practice of unfair competition is subject to civil liability and could also lead to the imposition of penalties. The injured party can demand that the illegal prac-tice be stopped, that its effects be redressed, that a declaration admitting such action be announced, that damages be made good and that the illegal gains be sur-rendered. Claims of unfair competition are no longer valid after 3 years have lapsed.
PROTECTION OF INTELLECTUAL PROPERTY
In Poland, intellectual property is also protected. The Act of 4th February 1994 covers copyright and related rights. This Act became law on 24th May 1994, with the exception of Article 124 Para 3, which came into force on the day it was pub-lished, that is 23rd February 1994. The copyright law covers a very wide range of creative endeavour. It is chiefly concerned with works of literature, journalism, science, music, the theatre, chore-ography, pantomime, audio-visuals, cartography, computer programs, visual arts, photography, industrial design, architecture and town-planning. The law does not provide for normative acts or their drafts, official documents, materials, signs and symbols, published descriptions of patents and protective certificates or general press information. The law also includes works for which the creator or co-creator is a Polish citi- zen, works which were first made public in Poland or, at any rate, simultaneously in Poland and elsewhere, or were first made public in Polish. Works which are pro-tected by international treaties, to which Poland is a signatory, are similarly pro-tected. The law protects the rights of the creator and created works; the former in mat-ters related to, for instance, the signing of one's name to attest ownership, etc., the date of first publication, control of the manner in which the work is exploited, the issue of the inviolability of the text. These rights are inalienable and cannot be inherited. The laws of copyright dealing with the created product (exclusive rights to, etc.) provide for the possibility of inheritance and transfer of ownership and are legally binding for a period of 50 years from the date of the creator's death or first publication, should the author be unknown, or the copyright the property of a third party. It is permissible, within the parameters set by the law, to reproduce a copyright-ed product free of charge on an individual basis, as well as on a large scale if this should be for a library, school, etc. The copyright law contains detailed regulations concerning the audio-visual works and computer software industries. In the case of audio-visual works, copyright is granted to the producer. The pro-ducer is responsible for paying any co-workers (the director, scriptwriter, compos-er, actors) monies in proportion to the income received from the work's distribu-tion. For legal purposes, computer programs are viewed in the same light as works of literature. The rights which apply cover the reproduction of the whole or any part of a program, its translation, any amendments or changes, its public distribution and copying. In the event of the sale of the carrier (ie. diskette) of the program, its further dissemination is forbidden. The making of a spare copy of the program is only permitted if it is indispensable in allowing full use to be made of the program. If the sale agreement does not provide otherwise, this copy cannot be used simul-taneously with the software original. The re-sale of a legally bought program marks the loss of the right to its use. Computer software cannot be rented or leased without the agreement of its manufacturer. The copyright law of 4th February 1994 came into force the day it was pub-lished, on 23rd February 1994. Any programs in existence before this date, no matter how obtained, are now legally recognised and covered by the Act's provi-sions. Their copying and distribution, however, is not allowed. The same Act also includes regulations concerning related laws regarding cre-ative works that do not possess all its characteristics, but are afforded the same legal protection. That includes the right to performances, phonograms, video pro-grammes, as well as broadcasting rights. The law also includes detailed regulations concerning the use in publications of pictures and correspondence. The matter of liability in the event of these laws being broken is also covered by the Act.
OWNERSHIP AND LEASING OF LAND
Legal rulings on land ownership are primarily contained in the Civil Code and in the Law on Land Management and Expropriation of 29th April 1985. The rights to land can take the following forms: the right of ownership, perpetual usufruct, usufruct, and easement. These rights may take the form of obligation rights: the right of lease and, less commonly, the right of tenancy. The right of ownership gives the owner, within the limits of the law and to the exclusion of other parties, the right to use the property according to its registered usage, controlling it and enjoying the profits derived from it. This right is dispos-able, subject to inheritance, and enforceable by law. The acquisition and disposi-tion of land is affected through a notarial deed. The principles pertaining to the acquisition of land in Poland by foreigners are contained in the Law on the Acquisition of Real Estate by Foreigners of 24th March 1920. Such acquisitions can take place solely subject to a permit issued by the Minister of Internal Affairs. The right of perpetual usufruct is the right established on state-owned land in urban areas and settlements, and/or in areas designated for future development. This right is concluded in the form of a notarial deed for a period of 99 years, with an option to extend it for another 45 years. This right is disposable, subject to inheritance, and enforceable by law. Property inherently tied to such land (build-ings, structures and machinery) is the property of the perpetual user, who is oblig-ed to pay the appropriate fees for the use of the land as well as the charges and taxes it incurs. All landed estates should have registers maintained by a State Notarial Bureau to bear witness to the legal status of the property. Section I of the Register speci-fies the estate itself; Section 11, its owner or perpetual user; Section 111, the ease-ments and utilisation of the property; while Section IV deals with the mortgage. The rights of utilisation and easement are limited property rights, affecting the property of a third party, and they give the legal user limited possibilities of using the land and deriving natural and legal benefits from it.
COMPANIES WITH FOREIGN PARTICIPATION
Foreign investors may conduct business in Poland in the form of companies regu-lated by commercial law, ie. limited liability companies or joint stock companies. Their business activities are regulated by the Commercial Code and by the Act on Companies with Foreign Participation of 14th June 1991. The conducting of business in the form of a commercial law corporation does not require any special administrative permits unless it is done so in the following areas: the operation of air and sea ports running an estate agency or dealing in property that part of the defence industry not covered by licensing agreements the wholesale trading in imported consumer goods the provision of legal services.
PERMITS
Permits for the conducting of business in those areas are issued by the Minister of Privatisation.
The foreign investor must obtain additional permits from various state agencies for the following: the purchase of land or real estate (from the Ministry of Internal Affairs) tax relief (from the Ministry of Finance) the purchase of privatised state assets (from the Ministry of Privatisation). Furthermore, both Polish and foreign investors must obtain permits to establish and operate:a bank - here the licensing agency is the President of the National Bank of Poland, in consultation with the Minister of Finance an insurance company - the licensing agency being the Ministry of Finance. Foreign investors may not operate in the gambling and lottery industries. The Minister of Privatisation may refuse to grant a permit for a foreign investor if the country's economic interest, national security, defence, or state secrets, are endangered.
Source: The Foreign Trade Research Institute
¿Copyright by Instytut Koniunktur i Cen Handlu Zagranicznego
00-916 Warszawa, ul. Swietokrzyska 12
April 19, 2001 12:46 pm
Er hello Jack, this was once, a long time ago, a Chechen war discussion, but hell Poland why not!!! I'm still reading through the first part. ( What was that bit about URN at the top?) Confused!
Delenne, the only person I would kill for, is now five and speaks better French than I do. I don't like the animal liberation front at all! The ELF policy is that you can claim membership for any distructive act, as long as it does not directly involve damage to "Human's, animals, trees and non-human's"
(still trying to work out what a non-human is as opposed to an Animal or a tree??!)
L'menexe , where've you been ? USC?
Topic starter
April 19, 2001 1:21 pm
Hi, L'-san.
She is Your AOL "neighbour".
Old "news", as usual, - wham-bam-boom in Jericho, Ramallah and Bethleem, and the allamerican voice of Dubai "kick me!" commercial breaks between the posts.
New "news" - a dust wind. Stingy European Union grabbed all the rain.
Topic starter
April 19, 2001 2:35 pm
* Delenne, the only person I would kill for, is now five and speaks better French than I do.
Mazel tov to him:o)
* The ELF policy is that you can claim membership for any distructive act, [...]
Wa!;o)
* (still trying to work out what a non-human is as opposed to an Animal or a tree??!)
An alien, that will be considered illegal and prosecuted to the full extent of the law after a landing.
April 19, 2001 3:02 pm
Thornhill:
would you be so kind as to take your massive posts and abuse somebody else's DMS space? this is ridiculous. who are you for real? why are you here?
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Konichiwa, Kisako!
Afternoon, mum!
1343
well, a few days back the russ page was pretty quiet, so i visited good ol' USC.
true, K-san, mad, mad marie is AOL. -_-
i thought i'd be done w/it and living elsewhere by now; no time soon for such a move as it stands.
y'know, i used to let marie be for the most part, but the transvestite boyfriend of hers [ann f, formerly ISA]...man, dunno why i come to such places...
mr. toyman lets anything go, and indeed...unfortunately his sympathies may lie near those of marie & co.
the lunatic fringe, at your service.
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somebody has impersonated URN there, the last couple days; they've got it out for him, whoever they are...
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kim, i never made it to the place where you were 'thiory'; annoyed that i got my name wrong. oy...
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daishki,K-san.
may you step lightly amidst the wham-bam-boom.
[w]
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{+3sk}
