Poland
Basic information
- Area: 312,679 km²
- Calling code: +48
- Population (EST): 38,116,000
- Official language: Polish
- Time zone: CET (UTC+1)
Overview
Poland is situated in Central Europe on the Baltic Coast and has a population approaching 40 million people. It shares borders with Russia, Lithuania, Belarus, Ukraine, the Czech Republic, Slovakia and Germany. Since the fall of the Berlin wall the country has ably managed the political transition towards democracy and undergone dramatic economic reforms that have led it to become an attractive location for foreign investors. Figures published by the Polish Agency for Foreign Investment (PIAZ) show that foreign direct investment stock in Poland rose from 2,830 million USD in 1993 to 65,115 million USD in 2002. According to a survey commissioned by PIAZ, some of the main reasons given by investors for choosing Poland are its qualified workforce, low labour costs, market potential and central location. Poland is a member of numerous international bodies including NATO, the OECD, the WTO, the Council of Europe and, more recently, the European Union.
Economy
Following the break up of the Eastern Bloc Poland's economy has undergone a radical transformation from a centrally planned economy to a vibrant free market based economy. Western approval of the country's economic policies and political development has ensured consistent financial support from the IMF, World Bank and EU and, after some initial difficulties, the economy has developed well. According to figures from the OECD, Poland's economy averaged a 4.5 per cent growth rate from 1991 to 2001 by which time GDP stood at 176.5 billion USD. Growth in the economy did slow quite dramatically during 2001 and 2002, however, the IMF has predicted a healthier growth rate of 2.75 per cent for 2003, while the Polish Ministry of Finance is predicting a rate of 3.5 per cent. The country has a strong industrial base with dominant chemical, metalwork, steel and textile industries. The high technology and service sectors are also developing and are playing a significant role in employment and the restructuring of the economy. The agricultural sector is still a major employer in Poland although it contributes relatively little to the country's GDP. A large proportion of the farms in Poland do not participate in commercial activity and produce only for their own needs. This has led to a great deal of pressure for the restructuring of the agricultural sector as Poland prepares to join the EU and the common agricultural policy. Some of Poland's main agricultural products include grains, livestock, potatoes and sugar beets.
Infrastructure
Poland benefits from an excellent location in the centre of Europe, sharing borders with seven neighbouring countries. It contains several important routes linking western and eastern Europe as well as routes to southern Europe from its Baltic Seaports, which are themselves an integral part of Europe's transport infrastructure. The Ministry of Infrastructure has embarked on a programme of construction and modernisation of motorways and express ways to develop the road network to meet EU standards by 2015. This programme will include approximately 2000 kilometres of new motorways being built. The country has several airports including Warsaw, Cracow, Poznan and Gdansk. Warsaw Airport is by far the busiest and catered for 4.7 million passengers and over 41,000 tonnes of cargo in 2001. In a recent report published by America's National Science Foundation, Poland was regarded as one of the best countries for encouraging high-technology development. The report considered the businesses, government, and culture of 15 nations mainly from Asia, Central Europe and Latin America, which had shown increased technological activity.
Business Costs
There are many incentives available for companies to invest in Poland. For example, 14 Special Economic Zones have been established to foster economic development, which offer preferential conditions. Such benefits may include exemption from various taxes and grants for job creation and employee training. According to figures published by PIAZ, wage costs in Poland are significantly below those of numerous countries within the EU. In 2001, the hourly wage rate for a worker in the manufacturing industry average just $2.8 in Poland, compared with $10.5 in Spain, $11.7 in Ireland, $15.5in France and $22.6 in Germany.
