Foreign investment's new voice
By Karol Chlipalski
Foreign investors here now have an ombudsman. Andrzej Szejna, who was appointed undersecretary of state at the ministry of economy, labor and social policy last month, has vowed to intervene whenever foreign businessmen need help in dealing with administrative obstacles. He is also responsible for promoting the country's economy abroad.
Szejna's appointment comes at a time when the country's foreign direct investment is declining. According to the Polish Agency for Foreign Investment (PAIZ), the country's FDI dropped to €5.6 billion ($6.06 billion) in 2002 from €6.6 billion ($7.14 billion) in 2001, as investors increasingly turned to neighboring countries with better government support, less burdensome laws, more favorable tax conditions and better infrastructures.
"There is a necessity to introduce serious changes into government policy towards foreign investors," said Szejna, who has been charged with overseeing matters related to foreign investment. "It is necessary to create a strong institutional framework and an aggressive strategy to attract foreign investors, even to fight for them."
Until now, PAIZ had been providing marketing and information services for foreign companies, but Szejna said that at present the agency's responsibilities are very limited. PAIZ suffered a blow in 2002 when the Miller administration decided that it would combine it with the Polish Information Agency (PAI), another organization that was previously responsible for promoting the country abroad. According to Szejna, the merger should be completed by year-end.
Nevertheless, Szejna said that the draft law to create the new agency - the Polish Agency for Export and Foreign Investment "Pro Polonia" - has several weak points and must be reviewed. Szejna will take part in creating the new agency.
"The discussion about (the promotion of Poland abroad) started with the issues that should have been looked at last," said Adam Szejnfeld, a Sejm deputy, who is the chairman of the economy commission.
Szejna said that Pro Polonia should become a "one-stop shopping" institution to provide all services to foreign investors, ranging from help in finding a company location to support in negotiations with local governments, administration and the finance ministry. Foreign investors have long criticized the country for lacking a single organization to meet all their needs and to make all decisions regarding investment. Pro Polonia also would establish a database to help companies find business partners and employees.
"The agency should be by the investor's side from the beginning to the end of the investing process," Szejna said.
Szejna sees his own role in intervening when a problem has to be solved at the governmental level. "I will fight so that my fellow ministers have a better understanding of barriers met by investors," Szejna said.
Reactions to Szejna's appointment have been mixed.
"We are very happy that the prime minister has created such a position," said Sebastian Mikosz, the general director of the French Chamber of Industry and Commerce, which represents the largest organization of foreign investors in the country. But he said that Szejna still has to prove that he can influence the government's policy towards foreign investors. Mikosz noted the country's failure to convince PSA Peugeot-Citroen to build a E700 million plant here, losing the investment to Slovakia after the Slovak deputy prime minister, who gained the trust of the French carmaker, got directly involved in the factory's implementation.
Adam Pawłowicz, former president of PAIZ, downplayed the new role that Szejna is to play because the economy ministry has three different sub-sections dealing with foreign investment instead of one-stop shopping. He also believes that smaller foreign investors will have more difficulties with receiving assistance from the ministry.
"The smaller companies en masse are creating more jobs," Pawłowicz said. "Their contribution to (the country's) GDP is more important (than larger companies), so they should be more important for the government.
"The fact that an ombudsman has been nominated proves that the situation is very bad. If the situation were perfect, no ombudsman would be necessary. But when the situation is like it is, a systematic dialogue would help both sides to understand each other better."
Others are quick to point out that Szejna lacks experience and a track record in dealing with foreign businessmen, though Szejna defends his business background as adequate preparation for his current position.
Szejna, 30, worked as an adviser in Leszek Miller's cabinet and presided over the administrative board of the second National Investment Fund. He also teaches European Union law at the Higher School of Banking and Finance in Warsaw and is the school's vice-dean of international relations. An attorney by training, he has also worked as a lawyer at e-point, a high-tech firm. In addition, Szejna also served as an adviser to the general inspector of tax control for a year and a half, representing foreign businessmen and dealing with the tax office, customs and other authorities. This last post was not listed on Szejna's official curriculum vitae provided by the economy ministry.
"That is quite enough (experience) to form an opinion on the obstacles investors encounter in Poland," Szejna said.
The new minister went on to add that he also had an opportunity to learn about the area of his activity as foreign investor ombudsman when he presided over the SLD's foreign affairs bureau.
"I have taken part in numerous receptions at embassies, where discussions concerned mainly doing business in Poland," he said.
