Morawiecki unveils economic development plan

Image: Wikipedia
Image: Wikipedia

Poland’s government has accepted a resolution concerning a long-term economic development plan for the country. The program is based on five pillars: reindustrialization, the development of innovative companies, foreign expansion, sustainable social and regional development and increased savings.

The author of the concept, Development Minister Mateusz Morawiecki (hence “the Morawiecki plan”), has identified five challenges that Poland faces. These are: the middle-income trap, lack of balance between Polish and foreign capital, the lack of innovative products, the demographic trap, and the weak institutions trap.

In order to overcome them, the government has singled out strategic sectors of the economy which will be supported by the state.  Spendings on R&D is set to reach two percent of GDP, compared to merely 0.8 percent at present.  Under the plan, PLN 1 trillion will be spent on investments within the coming years. The sum is to come from European funds, Polish companies’ savings and state-owned companies. Up to PLN 80 billion will be delivered in development programs carried out in cooperation with international institutions, such as the European Bank for Development and Reconstruction, and the World Bank.

One of the key ideas of the plan is the establishment of the Polish Development Fund (Polski Fundusz Rozwojowy), which will come from merging existing institutions, including the Export Credit Insurance Corporation (KUKE),  development bank BGK, the Polish Agency for Enterprise Development (PARP), the Polish Information and Foreign Investment Agency (PAIiIZ), Industrial Development Agency (ARP) and Polish Investments for Development (PIR).

The plan sets ambitious aims. It envisages that by 2020, Poland’s GDP will stand at 79 percent of the EU average, the level of investment will reach 25 percent of GDP, the number of small and medium sized companies will grow to 22,000 and Poland’s outward FDIs will increase by 70 percent.

 

 

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