The 'Secret' of Poland's Economic Success

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Feb 15, 10, 21:07 #1

The 'Secret' of Poland's Success
http://online.wsj.com/article/SB10001424052748704375604575022863718985 470.html?mod=googlenews_wsj

Poland is the only country in Europe to have come through 2009 without recession. What is more, growth was about 1.5%, which is the trend rate of the euro-zone countries, though well below Poland's own potential. How can we account for Poland's success, and what lessons should we draw from it?

Several factors account for the country's performance: strong institutions, a resilient economic structure, and well designed economic policy during the crisis. High levels of trust in the government ensured that statements by politicians about the strength of economic fundamentals and of the financial system were believed. This trust was partly based on the success of Poland's institutions and economy over the last 20 years, during which time the country has had the highest sustained growth in the region—real GDP has doubled over this period, while increasing only 70% in Slovakia, 45% in the Czech Republic, Hungary and Estonia, and not increasing at all in Russia and Bulgaria.

joepilsudskiThreads: 44 Posts: 2,521 Joined: Apr 27, 07 ♂	Feb 15, 10, 21:14 #2
Positive news...Shows that Kaczynski does something right, or at least stays out of way on certain economic matters...What is Polish foreign debt?

rdw	Feb 15, 10, 21:16 #3
Just wait. You can't give people making 2500pln a month loans to buy 500,000pln flats without the bottom falling out eventually. So many people are overextended on credit in Poland it's going to be really ugly.

bullfrogThreads: 4 Posts: 379 Joined: Apr 23, 09 ♂	Feb 15, 10, 21:16 #4
Article is right and reasons mentioned are wrong

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Feb 15, 10, 21:20 #5

rdw:

Just wait. You can't give people making 2500pln a month loans to buy 500,000pln flats without the bottom falling out eventually. So many people are overextended on credit in Poland it's going to be really ugly.

All we need to do is package up those loans, securitise them into a structured investment vehicle and sell them several times to other people (banks) and we can have our very own sub-prime crisis po-polsku. ;)

santanderThreads: 1 Posts: 95 Joined: Sep 14, 09 ♀	Feb 15, 10, 21:22 #6
Happymeal: High levels of trust in the government [Now I know that you are joking. The credibility of the Polish government is about as credible as the credentials of a "used car salesman".

rdw	Feb 15, 10, 21:23 #7
Don't think it won't happen if they can get away with it. Poland's financial system is notorious for manipulating things. I noticed the zl is dropping as we speak. They can only keep up the charade for so long.

TheOtherThreads: 4 Posts: 1,439 Joined: Jul 13, 09 ♂	Feb 15, 10, 21:41 #8
I don't know what all this "bragging" about Poland's economic growth is all about. The country has enjoyed significant foreign investment over a long period of time due to its comparetively low wages. Change this cost factor to the disadvantage of the corporations and we will see how strong Poland's economy really is.

rdw	Feb 15, 10, 21:49 #9
Yep...take away the cheap labor advantage and Poland will fall flat on it's face. They fail miserably at service which is the other 50% of business after cost. I don't see that changing either because it's so ingrained in the culture.

NikaThreads: 3 Posts: 651 Joined: Jul 21, 09 ♀	Feb 15, 10, 21:51 #10
rdw: Just wait. You can't give people making 2500pln a month loans to buy 500,000pln flats without the bottom falling out eventually. So many people are overextended on credit in Poland it's going to be really ugly. TheOther: I don't know what all this "bragging" about Poland's economic growth is all about. You people are just being jealous....you are such sore losers :)

TheOtherThreads: 4 Posts: 1,439 Joined: Jul 13, 09 ♂	Edited by: TheOther Feb 15, 10, 21:55 #11
Nika: You people are just being jealous What else could an investment banker say? And now go out and tell the people the truth... ;)

ExiledThreads: 5 Posts: 729 Joined: Jan 17, 10 ♂	Edited by: Exiled Feb 15, 10, 21:57 #12
Secret of Poland's success.Poland's unemployed get benefits from GB.Also no immigrants no borrowing of money to pay them on projects,old pensionists living off vegetables in villages etc. All Europe should become like Poland.A model.

TheOtherThreads: 4 Posts: 1,439 Joined: Jul 13, 09 ♂	Feb 15, 10, 22:03 #13
Exiled: All Europe should become like Poland Sponging off the UK system? ;)

NikaThreads: 3 Posts: 651 Joined: Jul 21, 09 ♀	Feb 15, 10, 22:04 #14
TheOther: And now go out and tell the people the truth... ;) Well, Polak potrafi and we've just been doing better then the rest of Europe lately, that's it. Of course we wish you well for the incoming year(s). Exiled: All Europe should become like Poland.A model. Definitely. Beware All Europe and do not follow the Greek model! ;)

szarlotkaThreads: 14 Posts: 3,340 Joined: Feb 20, 07 ♂	Feb 15, 10, 22:11 #15
Nika: do not follow the Greek model! Now that's sound advice.

TheOtherThreads: 4 Posts: 1,439 Joined: Jul 13, 09 ♂	Feb 15, 10, 22:14 #16
Nika: we've just been doing better then the rest of Europe lately No doubt. Just don't forget to mention the reasons for this positive development.

NikaThreads: 3 Posts: 651 Joined: Jul 21, 09 ♀	Feb 15, 10, 22:19 #17
TheOther: Just don't forget to mention the reasons for this positive development. Obviously, thanks to You Western Europe, only you....

ExiledThreads: 5 Posts: 729 Joined: Jan 17, 10 ♂	Edited by: Exiled Feb 15, 10, 22:19 #18
Yes,soon English will come to clean and build houses in Poland.The only negative development will be the English deployment in prostitution. Greece is the country of clowns.I told them you are clowns they thought they are smarter and can cheat the Europeans. And there is no solidarity here.I mean I don't care if they get burnt because they deserve it.

TheOtherThreads: 4 Posts: 1,439 Joined: Jul 13, 09 ♂	Edited by: TheOther Feb 15, 10, 22:21 #19
Nika: Obviously, thanks to You Western Europe, only you.... I'm not in Europe, but still ... you're right, if you add the USA to the list ... ;)

ExiledThreads: 5 Posts: 729 Joined: Jan 17, 10 ♂	Edited by: Exiled Feb 15, 10, 22:24 #20
Wait till you become a paki third world and then you will see too much positive economic development.You will swim in wealth. Fekers,liars your heads will be cut(I warn our enlightened heads).

NikaThreads: 3 Posts: 651 Joined: Jul 21, 09 ♀	Feb 15, 10, 22:26 #21
Exiled: English will come to clean and build houses in Poland. Cool! Then I will definitely hire a nice, strong English cleaning-gentleman! I will give him chocolate and my old clothes to send back home, ask him if they have internet in England, what kind of cars they drive (you have Mercedes and BMW as well????!!!!!! Really?????!!!!! Unbelievable!!!!!!!!!!!!!!) etc. Really, I can't wait!

ExiledThreads: 5 Posts: 729 Joined: Jan 17, 10 ♂	Feb 15, 10, 22:30 #22
But you have to allow them watch football and drink some beer from time to time.

NikaThreads: 3 Posts: 651 Joined: Jul 21, 09 ♀	Feb 15, 10, 23:07 #23
TheOther: if you add the USA to the list I missed the Big Brother off of my list? It's an outrage! I shall immediately add it there.

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Edited by: TheOther Feb 15, 10, 23:23 #24

"One in 10 world's investors plans to invest in Poland for the 1st time. More than 25 percent positively perceived the Polish market with higher investors' confidence indexes being scored by only by India, China and Brazil."
http://www.ottawa.polemb.net/index.php?document=58

Only India, China and Brazil are seen in a more positive light by investors than Poland. Hmmm, wonder why that is? Let's see...

"Poland is perceived as the second best destination after China for foreign investment in production sector due to its convenient geographical location in the heart of Europe and competitive labour costs."
http://www.paiz.gov.pl/index/?id=b7d0858d41a6c29b873e4aba411e6d04

As I said before, it's the low cost of labour. Take that away and you will see how strong the Polish economy really is. At the moment your people are fooled by the government and exploited by foreign corporations.

NikaThreads: 3 Posts: 651 Joined: Jul 21, 09 ♀	Edited by: Nika Feb 15, 10, 23:32 #25
TheOther: As I said before, it's the low cost of labour. You don't seriously think, that the only criteria a company would take into consideration is the cost of labour? And thank you for your consideration, but I am not being exploited by any one here. I actually have a better life in PL than I did, when I was living in Belgium.

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Edited by: TheOther Feb 15, 10, 23:38 #26

Nika:

that the only criteria a company would take into consideration is the cost of labour

Not the only criteria, but the most important (cost) factor together with favourable local tax laws. Why do you think corporations like Dell and others invested so heavily in Ireland? Because they loved the country? Same answer for Poland...

I actually have a better life in PL than I did, when I was living in Belgium

Did you have the same job in Belgium as you have now?

Espana2	Feb 15, 10, 23:40 #27
rdw: So many people are overextended on credit in Poland it's going to be really ugly. You,re right, but you can,t get through to some idiots. Nika: Really, I can't wait! Exiled: But you have to allow them watch football and drink some beer from time to time. Keep it in the playground kids.

ExiledThreads: 5 Posts: 729 Joined: Jan 17, 10 ♂	Feb 15, 10, 23:43 #28
I am proud to contribute to polish economy by direct investment on Polki.In this way I support the new European countries contributing to growth and redistribution of wealth.

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Edited by: Nika Feb 15, 10, 23:45 #29

TheOther:

Not the only criteria, but the most important cost factor together with favourable local tax laws. Why do you think corporations like Dell and others invested so heavily in Ireland? Because they loved the country? Same answer for Poland...

You are forgetting that first of all, someone has to be able/skilled enough to do the job. As cheap as the labor can be, if they not go to skools, have diploma and know speaking lenguages, then you can not do a thing with them!

And yes, I do have the same job, just the comany (and the country) that's changed.

Espana2	Feb 15, 10, 23:45 #30
Nika: I actually have a better life in PL than I did, when I was living in Belgium. Belgium ? What a dump. How can you compare ?

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