Hyper-unaware

There's a reason hypermarket operators spent more than $2 billion last year opening additional super-sized outlets around the country: Poles like shopping in them. After decades of having little or no choice, people enjoy entering one store and buying everything they need for the best available price. And as quaint as some corner skleps might be, it's hard to find the words "nie ma" charming. Mom-and-pop shops are, unfortunately, the victims in this display of free-market capitalism, but this doesn't mean that the government should limit competition ahead of European Union membership just to appease the little guy. If the Senate approves the government-backed bill to limit hypermarket operators' right to sell goods for whatever price they wish, an ominous message would be sent to Polish businesses needing to modernize their operations: Don't bother trying to become more competitive because we will protect you (although once Poland joins the EU and foreign products hit store shelves tariff-free, you're on your own). Instead of blaming the "unfair" practices of foreign hypermarket operators, the government should realize that it's precisely what these big firms are doing right that should be encouraged and emulated by Polish operators.

The big players are successful because they understand what their customers want - price, choice and convenience. Their Polish counterparts are often criticized for trying to be all things to all customers, rather than specializing in what they ought to do best - stocking fewer brands consistently so that consumers know what to expect. The Democratic Left Alliance (SLD) would also do well to realize that Polish businesses stand a better chance of competing if corporate and social-security taxes were lowered and labor law made far less restrictive, moves that would allow operators to redirect profits into growing and modernizing their stores. And access to credit? There's another area where the government can help out. By trying to protect Polish market share, the government and working-class agitators like Self-Defense's Andrzej Lepper aren't doing Poles any favors. The world is changing and EU membership is looming, but most politicians prefer to overlook what all of this means, cashing in instead on the short-term gain to be had from the clamoring of the disgruntled masses.

That the government would back such a bill is a bad sign. It implies that foreign investors like hypermarket chains are harming the economy by stealing business from local firms. The truth is that these companies have provided thousands of jobs and already paid millions of złotys in taxes. Their presence here should be encouraged, just as improving the competitiveness of Polish companies should be encouraged. If the SLD is serious about joining the European Union in 2004, it needs to start showing real support for business of all shapes and sizes, and back that support with policies that will stimulate investment and create long-term economic growth.