Poland Final Paper
POLAND
Business environment and Investment opportunities
Prepared By:
Fotios Psaltidis (email: fopsalt@less.gr) MAP 535 Dr. Gupta Fall 2006
Table of contents 1. Abstract 2. General Information 3. Infrastructure 4. Economy Overview 5. Human Capital 6. Business Climate 7. Establishing Business Presence 8. Real Estate 9. Investment Opportunities 10. Conclusions
1. Abstract
After the fall of communism in 1999, Poland has made remarkable progress in an effort to reform its economy pursuing liberalization and stabilization. Since mid1990’s Poland has been the leader in central Europe in terms of Foreign Direct Investment ($ 73 billions, 78% from EU countries and 11% from US), has joined NATO (1999) and EU (2004), economic indexes have improved, demand and supply mechanism has been reactivated and capital and labor market started to operate. An overview of the latest changes in Polish business environment will be given in this paper; investment opportunities will also be explored both in terms of financial aid available and taking advantage of: Poland’s strategic geographic position (member of EU in Central Europe, proximity to other markets such as Russia and Ukraine) its market size (population is about 38M) low labor cost combined with a well trained and young workforce (median age is 37 years)
Some problematic factors will also be reviewed such as the high unemployment rate, lack in infrastructure and communications, stalled privatization efforts in “sensitive” sectors and existing resistance from the society regarding changes in health care, education and pension system. One fundamental priority of successive governments has been economic growth and the means of achieving this goal is EU membership. Such a policy gives potential investors a great opportunity: EU firms can establish business presence in Poland while operating under EU terms and regulations, lowering costs and secure their position in a growing consumer market of 38M people. Non-EU
Business environment and Investment opportunities
Prepared By:
Fotios Psaltidis (email: fopsalt@less.gr) MAP 535 Dr. Gupta Fall 2006
Table of contents 1. Abstract 2. General Information 3. Infrastructure 4. Economy Overview 5. Human Capital 6. Business Climate 7. Establishing Business Presence 8. Real Estate 9. Investment Opportunities 10. Conclusions
1. Abstract
After the fall of communism in 1999, Poland has made remarkable progress in an effort to reform its economy pursuing liberalization and stabilization. Since mid1990’s Poland has been the leader in central Europe in terms of Foreign Direct Investment ($ 73 billions, 78% from EU countries and 11% from US), has joined NATO (1999) and EU (2004), economic indexes have improved, demand and supply mechanism has been reactivated and capital and labor market started to operate. An overview of the latest changes in Polish business environment will be given in this paper; investment opportunities will also be explored both in terms of financial aid available and taking advantage of: Poland’s strategic geographic position (member of EU in Central Europe, proximity to other markets such as Russia and Ukraine) its market size (population is about 38M) low labor cost combined with a well trained and young workforce (median age is 37 years)
Some problematic factors will also be reviewed such as the high unemployment rate, lack in infrastructure and communications, stalled privatization efforts in “sensitive” sectors and existing resistance from the society regarding changes in health care, education and pension system. One fundamental priority of successive governments has been economic growth and the means of achieving this goal is EU membership. Such a policy gives potential investors a great opportunity: EU firms can establish business presence in Poland while operating under EU terms and regulations, lowering costs and secure their position in a growing consumer market of 38M people. Non-EU