Skip to content
Advertisement

Business

Cross Border Cooperation could spell alternative to gray economy

Bradley Dunbar, the Scottish consultancy firm that specializes in advising government institutions and small and medium sized enterprises (SMEs) on European Integration, has announced plans to strengthen its presence in the Polish market by opening a Lublin office within the next three to six months.
The move will build on the company's established activity within Poland and is focused on developing their consultancy offering in Eastern Poland, where massive EU funds will be available for border control, though few mechanisms are in place specifically to compensate for the expected reduction in the cross-border 'gray economy' - on which so many small business in Eastern Poland depend.
Bradley Dunbar's first Polish office in Poznań, has specialized in sectoral analyses and market segmentation for UK and EU regional development agencies, whereas its new, Lublin office will be dedicated to the management of Structural Fund projects and Cross Border Cooperation (CBC) arrangements. "Part of our activity will link institutions and SME's in Eastern Poland with their Western Ukrainian counterparts," says Alastair Clyne of Bradley Dunbar, "...and we will provide them with specialist assistance to seek EU-derived funding."
According to an official European Commission statement, EU pre-Accessions assistance (Phare) funding will remain a major feature of the developing, accession nations. "Phare is providing some ?11 billion of co-financing for institution building support... and technical assistance and for investment support to help applicant countries in their efforts."
Clyne speaks of a certain amount of frustration in his company's Polish activity, where there has been some difficulty in persuading potential UK public and private sector clients to pay for the specialist consultancy and support that many believe to be freely available. "We are not in Warsaw competing with the likes of KPMG," says Clyne, "...we are tailored for small and medium sized clients, that are focused on developing links and a committed presence and activity in the regions of Poland and many are either not prepared to pay for the expert knowledge we can provide, or are unaware of the potential business benefits that could ensue."
From August 2002 until November 2002, Bradley Dunbar successfully helped to implement a CBC in Bulgaria and Romania. The company continues to assist Lithuania and other Enlargement countries with the programming and implementation of Phare funds and the planning and implementation of Structural Funds. "The edge that we can provide in Poland is our experience of applying for funds for projects such as CBC in other developing areas of Europe," says Clyne.
Mariusz Biedrzycki, of the EU Information Point in Warsaw, says that the new visa regime has already created difficulties for businesses in the Lublin area. "They will (eventually) be able to apply for structural funds," says Biedrzycki, "but at this stage there is no provision by the Ministry of Economy for application and award."
The barrier to semi-legal trade, without adequate incentives and new opportunities, is seen by political analysts as a key reason why EU membership is least popular in Eastern areas of Poland. "The solution to the problem has to be new investments into these regions," says Clyne, "...and this needs to be promoted by a coordinated effort to seek out those investments."
Without any rival organization meeting this need, Clyne hopes that the new economic environment being created in the east of Poland with a new, impermeable border will offer new business opportunities. He was interviewed by the Business Journal while accompanying the Scottish Trade Mission to Poland.

More from Business All