Treasury report generally positive on the nature of FDI

A Treasury report evaluating the state of foreign investment in Poland has b een drawn up, following the announcement of Treasury Minister Wieslaw Kaczma rek at the beginning of March that the operations of foreign investors would be investigated. The report reads that foreign investors have participated i n the privatization process on equal terms with Polish investors, and that i n 2000 39% of all direct investment in Eastern and Central Europe was made i n Poland. "Participation of foreign investors in the privatization of compan ies, which have been taken over by foreign companies, has had a positive eff ect on the condition of the economy," the report reads. Yet, the authors adm it that not this has not always been case. About 15% of the companies taken over by foreign investors have suffered losses due to trade with their headq uarters as many of them, in order to avoid paying taxes in Poland, artificia lly raise their costs and transfer profits home. Foreign investors are also rarely interested in cooperation with Polish scientific institutes and liqui date research centers in the companies they take over. Although the report p resents a generally positive evaluation of foreign investment in Poland, onl y 30% of the public polled between 1995-2001 believed that privatization is good for the economy, while 50% claim it is foreign investors who benefit mo st from privatization. (Gazeta Wyborcza, May 26-27, p. 24) K.S.