During the nearly fifty years of communist rule, especially in the cold war period, autarky virtually became a state economic doctrine. The size of the country and its population, as well as natural resources were quoted as an argument in favour of the doctrine. Fortunately, the ideal of the doctrine proved impossible to achieve. But nevertheless of all the countries of the former Soviet bloc Poland had the lowest per capita foreign trade figures.
For the past two decades or so Poland has been working to make up for the lost time. Over the past ten years the share of exports and imports in Polish GDP has grown by half. It is not just that trade with foreign countries has increased. A geographical shift was also achieved. Two thirds of Polish exports was once bound for the Soviet market. Now the EU is the main market. This change has brought about the need to constantly improve the quality of Polish products. In the past decade labour efficiency in Poland in relation to the EU average has grown by a quarter.
The time has now come for Polish companies to venture into eastern markets, and more generally into emerging markets. In fact, Polish products and services used to be exported to many of the countries in question under communism. Polish shipping companies used to maintain regular links with China even in the lowest point of the cold war. Coal mines were developed by Polish companies in India. Polish engineers designed and built motorways in Iraq. Polish merchant ships, aircraft, tractors, motor cars and even entire factories, such as complete sugar refineries, cement plants and chemical works were exported to a number of countries. But little of that was then based on economic thinking. It was all about politics. Once Poland became democratic again, it had to put its external trade on a sound economic footing.
It seems that this new direction has paid off. Of late exports and imports have significantly boosted Poland’s economic growth. This country ranks high on a list of the world’s most attractive places to invest investments projects in manufacturing and services. Whenever the overall climate allows, Poland’s trade with Eastern European countries grows by 30-40 pct a year. Things are looking up for close co-operation in manufacturing and capital ventures. Even more attractive opportunities in this respect are offered by Poland’s large-scale investment programme for the 2008-2013 period.
In August the eyes of the world, including business circles, are trained on the Chinese capital Beijing, the host city of the 29th Olympic Games. We thought it fitting to start our review of the outward-looking Polish economy with a glance at Polish-Chinese trade relations. The rewards for both sides are clearly there, but both are just at the starting point. The sheer distance should be no problem, given better transport links, and the vast opportunities offered along the traditional Silk Route. In fact, there is a lot of business going on already between Poland and countries such as Ukraine and Kazakhstan. The two countries’ ambassadors tell us all about it.
It seems that one sign of the world’s appreciation for Poland’s new openness is the fact that this country is increasingly becoming the venue of important international events. In December the mid-western Polish city of Poznań will be hosting a climate change summit. Ahead of that, in September, we would like to take this opportunity to invite you to the World Mining Congress in Krakow and Sosnowiec.