Poland was ranked 50th in terms of economic freedom, up by 7 places, in a poll carried out by the Heritage Foundation and Wall Street Journal (WSJ). According to experts, until the country makes a spectacular leap forward then advancing by 7 places is nothing to get excited about. Investors, who analyze such rankings in much more detail than politicians, see flaws in the Heritage report.
Rarely do new ideas appear among concepts of how to return to speedy growth following economic crisis. Ideas that have already been tested garner the most references. A renewed hope is found in the notion that if the economy can’t fix itself, then the state should do so. And from there it is only a small step to a full return of the state to business.
In 2013, 50 foreign investors announced that they would be investing approximately 825 million euro in the Polish market. This is less than in 2012. Professor Saul Estrin from the London School of Economics maintains that larger investment incentives are unnecessary, and that foreign direct investment can also have negative consequences.
According to data published by Eurostat and the European Commission Poles are raising labour efficiency while the wage share in Poland’s GDP is among the lowest in the EU and continues to deteriorate. Yet, employers are reluctant to increase wages. For workers to feel wage growth similar to their productivity growth, there must be a stable tax system and more investment.
A long standing Fed President, William McChesney Martin, kept saying that the central bank is like a good chaperone at a party: one that cares that the guests always have enough punch in their glasses. When the atmosphere gets too hot, the punch bowl must be taken away. If spirits are low and the guests are floating about sluggishly, punch must be topped up.
In his report, World Bank analyst Marcin Piątkowski predicts Poland’s new golden age. Relative to Western European countries, Poland’s GDP is the highest in 500 years. In 10 years, Warsaw is expected to be a better place to live in than London. It will be appreciated by immigrants from the East, whom we should start attracting now.
According to the report on the Financial Knowledge of Poles by the Kronenberg Foundation, people who are deeply interested in economics in Poland are twice outnumbered by geni who qualify to Mensa. It could have been optimistic news if not for the fact that only 2 percent of population can join Mensa. The article has been awarded in the Obserwator Finansowy contest "If it depended on me...".
Poland is once again changing the rules of operation of Special Economic Zones. After the recent proposals of the Ministry of Economy, some experts predict their revival. Especially after Prime Minister Donald Tusk recently declared support for investors. Permanent state aid may be criticised, but it is a path followed by almost all countries.