Donald Evans and Jerzy Hausner in joint FDI promotion
In a visit to Poland last month, U.S. Secretary of Commerce Donald Evans met with his counterpart Jerzy Hausner to co-host a planning summit at Belvedere Palace attended by leaders of industry from both countries. "American investors have some 8.7 billion dollars invested in Poland," Evans said at a joint press conference with Hausner. "We want to do more, and we want to see more, because Poland is our largest commercial market in Eastern Europe."
During the visit, industry chiefs as diverse as Zbigniew Wróbel, CEO of the PKN Orlen oil company, and Wanda Rapaczyńska, President of the Agora media group, sat at a long table across from representatives of American investment such as Donald Bohler, VP Lockheed Martin (Central Europe) and Richard M. Lada, VP Motorola (Central Europe). At the heads of the table, Donald Evans and Jerzy Hausner jointly chaired the discussion, which served as a basis for the year's plan of action.
"In a few months, in the U.S., we are going to hold a meeting with U.S. business circles to discuss with them how many of their suggestions have been implemented," added Hausner at the press conference.
Key points aired at the meeting, says Edgar Fulton, an American diplomat close to the summit, have been turned into "immediate action items" rather than a wish-list that risks falling of deaf ears.
For example, despite a major recent victory - helping Poland to get on the Hyundai investment shortlist - the inward investment agency PAIiIZ "still has room for improvement," according to U.S representatives at the summit. In the U.S. each individual state has its own inward investment agency, competing with others and driven to rationalize and innovate in this way. Using U.S. agencies as models, the White Paper on Polish-American Economic Cooperation, the fruit of the summit co-written by the Polish Confederation of Private Employers and the American Chamber of Commerce in Poland argues that 'In order to ensure that the agency is adequately business-like and resistant to politics, at least half of its board should be comprised of independent private sector managers and entrepreneurs.'
The United States Commercial Service in Warsaw, Evans' Department's office in Poland, has begun leading the organization of a seminar to provide know-how to Polish firms seeking to participate in Iraq reconstruction contracts, and is discussing future trade and investment missions centered on the theme of creating '21st century jobs' in higher technology sectors through U.S.-Polish joint investments. Given this special attention from an American mentor, Polish bids for US direct investment and Iraq reconstruction tenders are set to have a head start way in front of their rivals.
The key target now in sight is a soon to be announced zł.375 million ($100 million) fund for Central Europe from the U.S. Overseas Private Investment Corporation which will support new American investments into Poland. In anticipation of this, the government has now announced that it has approved the modifications to the U.S.-Poland Bilateral Economic Treaty, which need to be put in place to keep this U.S. investment funding valid after Poland joins the EU.
Though the Americans are taking exceptional measures to help the government to boost FDI this year, the advice and incentives are not unconditional. According to Fulton, "Secretary Evans singled out the Polish government's unwillingness to address instances of unfair treatment raised by U.S. pharmaceutical companies on the Polish market", as a current problem area in U.S.-Polish commercial relations.
The ongoing diplomatic and commercial negotiations also serve as an interface at which legislators are forced to listen to the business community. Though Polish and involved with the formation of a new Radio and Television Act this year, Marek Sowa, VP of United Pan-Europe Communications, was able to sit on the 'American' side of the table.
"Having members of both (Polish and American) administrations talking about, for example, the Radio and Television Act is extremely effective," says Sowa. "It gets the legislators to reduce their frequent emphasis on political objectives, and to listen to the private sector whose goals coincide with American investors."
The White Paper echoes Sowa's words. 'Better business climate would result in an increase in FDI inflow from USA and other countries. It would benefit local companies as well,' runs the conclusion of the paper.
The Paper refers to a bilateral and cross-sector consensus on what has to be done, including '... a significant change in the way the state approaches entrepreneurs' and stating that 'a new, powerful institution analogous to the U.S. Small Business Administration must be created.'
Now that U.S.-Polish commercial cooperation is being given as much focus as cooperation in other spheres, this initiative has a high probability of achieving real change this year. Indicating the will of the U.S. administration to tap the exceptionally strong political and military relations between the two countries to spur stronger trade in 2004, the paper states that 'America is able to support Polish business in order to turn political co-operation into a lasting, mutually beneficial strategic partnership.'
During the visit, industry chiefs as diverse as Zbigniew Wróbel, CEO of the PKN Orlen oil company, and Wanda Rapaczyńska, President of the Agora media group, sat at a long table across from representatives of American investment such as Donald Bohler, VP Lockheed Martin (Central Europe) and Richard M. Lada, VP Motorola (Central Europe). At the heads of the table, Donald Evans and Jerzy Hausner jointly chaired the discussion, which served as a basis for the year's plan of action.
"In a few months, in the U.S., we are going to hold a meeting with U.S. business circles to discuss with them how many of their suggestions have been implemented," added Hausner at the press conference.
Key points aired at the meeting, says Edgar Fulton, an American diplomat close to the summit, have been turned into "immediate action items" rather than a wish-list that risks falling of deaf ears.
For example, despite a major recent victory - helping Poland to get on the Hyundai investment shortlist - the inward investment agency PAIiIZ "still has room for improvement," according to U.S representatives at the summit. In the U.S. each individual state has its own inward investment agency, competing with others and driven to rationalize and innovate in this way. Using U.S. agencies as models, the White Paper on Polish-American Economic Cooperation, the fruit of the summit co-written by the Polish Confederation of Private Employers and the American Chamber of Commerce in Poland argues that 'In order to ensure that the agency is adequately business-like and resistant to politics, at least half of its board should be comprised of independent private sector managers and entrepreneurs.'
The United States Commercial Service in Warsaw, Evans' Department's office in Poland, has begun leading the organization of a seminar to provide know-how to Polish firms seeking to participate in Iraq reconstruction contracts, and is discussing future trade and investment missions centered on the theme of creating '21st century jobs' in higher technology sectors through U.S.-Polish joint investments. Given this special attention from an American mentor, Polish bids for US direct investment and Iraq reconstruction tenders are set to have a head start way in front of their rivals.
The key target now in sight is a soon to be announced zł.375 million ($100 million) fund for Central Europe from the U.S. Overseas Private Investment Corporation which will support new American investments into Poland. In anticipation of this, the government has now announced that it has approved the modifications to the U.S.-Poland Bilateral Economic Treaty, which need to be put in place to keep this U.S. investment funding valid after Poland joins the EU.
Though the Americans are taking exceptional measures to help the government to boost FDI this year, the advice and incentives are not unconditional. According to Fulton, "Secretary Evans singled out the Polish government's unwillingness to address instances of unfair treatment raised by U.S. pharmaceutical companies on the Polish market", as a current problem area in U.S.-Polish commercial relations.
The ongoing diplomatic and commercial negotiations also serve as an interface at which legislators are forced to listen to the business community. Though Polish and involved with the formation of a new Radio and Television Act this year, Marek Sowa, VP of United Pan-Europe Communications, was able to sit on the 'American' side of the table.
"Having members of both (Polish and American) administrations talking about, for example, the Radio and Television Act is extremely effective," says Sowa. "It gets the legislators to reduce their frequent emphasis on political objectives, and to listen to the private sector whose goals coincide with American investors."
The White Paper echoes Sowa's words. 'Better business climate would result in an increase in FDI inflow from USA and other countries. It would benefit local companies as well,' runs the conclusion of the paper.
The Paper refers to a bilateral and cross-sector consensus on what has to be done, including '... a significant change in the way the state approaches entrepreneurs' and stating that 'a new, powerful institution analogous to the U.S. Small Business Administration must be created.'
Now that U.S.-Polish commercial cooperation is being given as much focus as cooperation in other spheres, this initiative has a high probability of achieving real change this year. Indicating the will of the U.S. administration to tap the exceptionally strong political and military relations between the two countries to spur stronger trade in 2004, the paper states that 'America is able to support Polish business in order to turn political co-operation into a lasting, mutually beneficial strategic partnership.'
