The popularity of the Polish Great Orchestra of Christmas Charity is encouraging a return to the arguments of Nobel Prize winner Milton Friedman. He claimed that state support for underprivileged people is unnecessary, since private donors would give such help of their own accord.
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.
Public-private partnership investment projects are still few and far between in Poland, and most tenders called for projects to be launched under this formula end up in a fiasco. Without incentive from the government and without some fairly uncomplicated changes to legislation, things are going to stay this way.
It will be 25 years on 23 December since the Act on Economic Activity, popularly called Wilczek’s bill, was passed. It introduced into the stubborn reality the rule that what is not prohibited is permitted. State regulation was reduced. This act is commonly considered to be the “Sevres standard” for free-market economic reforms. Is this a deserved opinion?
The reform of the pension system will only decrease the cost of debt servicing and the cost of refunding contributions – a total of PLN 9 billion. The government will not spend any more, as it pursues fiscal consolidation within the excessive deficit procedure - says Dariusz Rosati, Chairman of the Public Finance Committee of the Sejm.
In 2012, the EU decreased its total carbon dioxide emissions by 2.3 per cent. Even though Poland has been given bad press in this matter, it managed to decrease them by 3 per cent. In the U.S., emissions were reduced by 4 per cent, while in China they continue to rise, albeit at a slower pace. The EU has launched a crusade against global warming, but other countries have a more pragmatic approach to the issue, which is why the climate summit in Warsaw may end in failure.
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.