American Aviation Day signals take-off for U.S. direct investment

By Kamil Tchorek

Linda Mysliwy-Conlin, U.S. Assistant Secretary of Commerce, has said in an interview with the Business Journal that the massive turnout by the American aerospace industry for its visit to Poland last week is just the beginning of a raft of diplomatic measures that are being undertaken to enhance the commercial bonds between the two countries.

"The bilateral (political) relationship between the United States and Poland could not be stronger," says Mysliwy-Conlin, re-emphasising the gratitude that she and her colleagues feel for Poland's contribution to "Operation Iraqi Freedom", the reconstruction process and the presence of Marek Belka in the Iraqi Coalition Provisional Authority.

Mysliwy-Conlin, a Polish-American as her name suggests, points out that George W. Bush signed a document during his last visit to Poland that committed his administration to significantly increasing commercial ties through diplomatic means.

The commercial relationship should be brought up to the same speed as the political, says Mysliwy-Conlin, and there is a need to "...talk very frankly" with Polish counterparts about how they can cooperate to improve the climate for American investment. On December 16-17 U.S. Secretary of Commerce Donald Evans will be here to hold high-level discussions to do just that.

For Mysliwy-Conlin, the aerospace sector may lead the way for rapid growth of investment from the United States into Poland. "Indisputably, America has leadership in this sector," she says, "... and in Poland you have a pool of incredible talent, a work ethic that I can attest to and a competitive cost structure." Added to this, the need for the overhaul of civil aviation infrastructure and the national flag carrier's fleet is expected to require the size of investments that only world-leading - American - aerospace firms are able to provide.

Though the Czech Republic is sometimes billed as having a better-educated workforce, and Romania has lower labor costs (the aviation delegation has gone on to visit these two countries), Mysliwy-Conlin is confident that American business will be attracted to Poland because of the excellence of the work produced. Quoting Motorola representatives that she met during the Bush visit last year, Mysliwy-Conlin says that American firms "...are here because of a quality of work that is unparalleled, that matches the quality of work in the United States."

Several small- and medium-sized enterprises (SMEs) were represented at the delegation and in Mysliwy-Conlin's words will be key to a growth in jobs in the sector. Though the big names catch the headlines, she says, the real growth in employment will be provided by companies that are allowed to grow rapidly by the protection of intellectual property, and reduction of the amount of licensing needed for business; these are measures that only central government can take, and as Mysliwy-Conlin would have it, diplomacy can influence.

In essence, Mysliwy-Conlin is optimistic about the efforts that the Polish government is making so that Poland "... can be called a good place to do business," citing the reduction of Corporate Income Tax (CIT) to 19 percent. Such joint visits by industry and government representatives are deemed to have started the long task of turning around Polish FDI numbers that have started to catch up with regional competitors.

The key message is that as dialogue between Polish government and U.S. investors continues, sector-by-sector, so will the call for more helpful actions to be taken by the government. "There is no reason why Poland cannot be the choice for investment," says Mysliwy-Conlin, "(the talks) indicate to the business community that Poland is taking steps to be called a 'good place to do business'."