'Business as bad as government'
The figures speak for themselves. A Swiss think-tank, the International Institute for Management Development (IMD), placed Poland 57th - only three positions off the bottom - in its competiveness league. Perhaps more worryingly, Poland's position has worsened since IMD included Poland for the first time in 2000 when it was ranked 40th.
IMD has marked Poland down mostly for the inefficiency of government and business. The government is criticized for inconsistency in taking political decisions, protectionism, legal barriers for business, and lack of social policy. Companies in Poland are no better, IMD researchers concluded. Employees are unmotivated, managers are unreliable, marketing is inefficient, and there are, apparently, no ethics in business.
The blacklist of objections also includes infrastructure drawbacks. No country on the list has a worse telecommunication system than Poland. The country has poor flight connections, both domestic and international. Regulations in the country hamper the development of new technologies and hiring foreign specialists. On top of that, there are the complicated and ever-changing VAT regulations, and high unemployment rate.
The president of the Business Center Club, Marek Goliszewski, is not surprised by the results. "Unstable taxation policy, unskilled workers, high employee costs, corruption, ailing public finance is all that our observers see," Goliszewski says.
IMD experts have given solace to Poland by appreciating its high export rate, GDP growth, cheap labor force, and high levels of education. The report's conclusion was that Poland should gradually switch from production to services, and that the government must spend more on R&D. The country's cornerstone should be the stabilization of budget expenditures, reduction of unemployment, and rapid adjustment to EU regulations.
The authors of the report predict a bright future for CEE countries. They highlight Slovakia, Czech Republic, Lithuania, Latvia and Estonia, for their impressive development, that mirrors Ireland's post-EU position. Although it seems that Poland has reached a deadlock, specialists are optimistic. Goliszewski told the WBJ: "It will not be too bad, provided that the people who govern have some knowledge on economy. There is a storm, but I do hope that taxes will be lowered, and privatization continued. There are still 1,300 companies to be privatized."
IMD has marked Poland down mostly for the inefficiency of government and business. The government is criticized for inconsistency in taking political decisions, protectionism, legal barriers for business, and lack of social policy. Companies in Poland are no better, IMD researchers concluded. Employees are unmotivated, managers are unreliable, marketing is inefficient, and there are, apparently, no ethics in business.
The blacklist of objections also includes infrastructure drawbacks. No country on the list has a worse telecommunication system than Poland. The country has poor flight connections, both domestic and international. Regulations in the country hamper the development of new technologies and hiring foreign specialists. On top of that, there are the complicated and ever-changing VAT regulations, and high unemployment rate.
The president of the Business Center Club, Marek Goliszewski, is not surprised by the results. "Unstable taxation policy, unskilled workers, high employee costs, corruption, ailing public finance is all that our observers see," Goliszewski says.
IMD experts have given solace to Poland by appreciating its high export rate, GDP growth, cheap labor force, and high levels of education. The report's conclusion was that Poland should gradually switch from production to services, and that the government must spend more on R&D. The country's cornerstone should be the stabilization of budget expenditures, reduction of unemployment, and rapid adjustment to EU regulations.
The authors of the report predict a bright future for CEE countries. They highlight Slovakia, Czech Republic, Lithuania, Latvia and Estonia, for their impressive development, that mirrors Ireland's post-EU position. Although it seems that Poland has reached a deadlock, specialists are optimistic. Goliszewski told the WBJ: "It will not be too bad, provided that the people who govern have some knowledge on economy. There is a storm, but I do hope that taxes will be lowered, and privatization continued. There are still 1,300 companies to be privatized."
