Abstract
Poland has historically been a victim of its strategic geographic position between Germany and Russia, with its borders fluctuating throughout the century. In addition to Germany and Russia, Poland also borders the Czech Republic, Slovakia, Ukraine, Belarus and Lithuania.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
See also Appendix 2: Political structure of Poland
THE ECONOMIST INTELLIGENCE UNIT (EIU), Status: September 1999
POLISH AGENCY FOR FOREIGN INVESTMENTS — PAIZ (1998) Poland, International Economic report 1997/98, PAIZ (1998) Poland Fundamental Facts and Figures 1998
THE ECONOMIST INTELLIGENCE UNIT (2nd quarter 1999) Country Report: Poland, p. 6
EIU (2nd quarter 1999) Country Report: Poland, see above
The European Commission’s regular Opinion, issued in October 1998, pointed to Poland’s generally favourable progress in moving to meet the terms of EU accession. The Commission recognised that provided it strengthens the pace of industrial restructuring and maintains open trade policies, Poland will be able to cope with competitive pressure and market forces within the EU in the medium term. However, areas that still demand action include, among others, the privatisation of the remaining state enterprises, and the restructuring and modernisation of the coal, steel and agricultural sectors. EIU (2nd quarter 1999) Country Report: Poland, see above
N.N. (October 5 1999) Brüssel hofft auf neuen Schwung für die Erweiterung, in FRANKFURTER ALLGEMEINE ZEITUNG — FAZ, Nr 231, p. 26
According to these criteria, membership requires that the candidate country:
has achieved stability of institutions guaranteeing democracy, the rule of law and human rights (political criteria);
has a functioning market economy and the ability to cope with competitive pressures and market forces within the EU (economic criteria);
has the ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary Union (legal and institutional criteria).
See EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT — EBRD (November 1999) Transition Report; see also DR. EGGERSTEDT, H. (November 15 1999) Emerging Markets Research, Commerzbank AG: Central and Eastern Europe: Two Reports on Progress, in Emerging Markets, No. 30/1999
LIPOWSKI, A. (1998) Towards normality, overcoming the heritage of central planning economy in Poland in 1990–1994, Adam Smith Research Centre & Centre for Social and Economic Research Warsaw p. 9
See also REISINGER, H. (1994) Marktoffensive in Osteuropa, Übernahme oder Neugründung von Unternehmen see above. p. 23
MILANOVIC, B. (1989) Liberalisation and Entrepreneurship; Dynamics of Reform in Socialism and Capitalism, New York, in The Economist (September 21 1991) Survey: Business in Eastern Europe, p.10
Several Polish industries, including shoes and textile industries and heavy industries such as iron and steel, were produced for distribution in the former USSR. In return, Poland received oil and other natural resources that it lacked. Overall, heavy industry — e.g. iron, steel, cement — received preferential treatment in Polish economic planning. Consumer product industries, such as soap, confectionery and drinks, were neglected. The service sector barely existed. See GAY, G. (1995) Poland European Tiger, Euromoney Publications PLC, pp. 28ff
Compare also with HARE, P.; HUGES, G. (1991) The international competitiveness of industries in Czechoslovakia, Hungary and Poland, in European Economy, Special Edition, Nr 2, CEC, Brüssel
In comparison, subsidies in OECD countries were approximately at 2.3% of GDP, See OECD (1992) Reforming the Economies of Central and Eastern Europe, p. 36
BLUM, P. (November 2 1993) Unwanted Tanks, The Slovak Republic, Financial Times Survey, p. 12
Compare with WOLMUTH, K. Zur Transformation von Plan- und Marktwirtschaften, in FISCHER J.; MESSNER, F.; WOHLMUTH, K. (1992) Die Transformation der osteuropäischen Länder in die Marktwirtschaft, pp. 33–57
OECD (1992) Reforming the Economies of Central and Eastern Europe, see above, p.65
LIPOWSKI, A., Towards normality, overcoming the heritage of central planning economy in Poland in 1990–1994, see above, p. 10ff.
GAY, G., Poland European Tiger, see above, pp. 13ff
See BERG, A.; SACHS, J. (April 1992) Structural Adjustment and International Trade in Eastern Europe: The Case of Poland’s Economic Policy and GOMULKA, S. (1992) Polish Economic Reform, 1990–1991: Principles, Policies and Outcomes, Cambridge Journal of Economics, No. 16
For example, in 1990, Bulgaria had an inflation rate of 335%, Poland 554%, in Russia approximately 1,450% in 1992, see OECD (1992) Reforming the Economies of Central and Eastern Europe, see above, p. 23
See Appendix 3–6: Poland’s economic structure, quarterly indicators and trade data, direction and structure of trade, in EIU (2nd quarter 1999) Country Report Poland
See KPMG POLSKA (January 1999) Investment in Poland p. 12 ff.
Own analysis of various 5-year-forecast tables of EIU and comprehensive research in REUTERS.
See EIU (2nd quarter 1999) Country Report, see above; REUTERS (July-December 1999; EBRD (November 1999) Transition Report. See also Appendix 7: Outlook of economic situation in 2000
See Appendix 8–10: CEE comparisons of GDP development 1990–2000, inflation 1990–2000 and unemployment 1990–2000. A comprehensive research on these data was done, especially regarding GDP and inflation, where diverging information has often been found. This is especially true for data from the beginning of the 1990s, but to some extent also for recent years.
EBRD (November 1999) Transition Report; BANK AUSTRIA (3/99) East-West Report and estimates Institute LIFEA.
PAIZ (1999), see also N.N. (November 01 1999) Inflation und höhere Arbeitslosigkeit begleiten Polens Wachstum, in Handelsblatt, p. 8
See also PAIZ (1999)
PAIZ (1999
PAIZ (1999)
Status May 2000
In 1998, Poland reached an unemployment rate of approximately 10%, similar to most of the EU countries. However, unemployment has been rising again. The Northern areas of Poland around Slupsk and Suwalski continue to suffer exceptionally high unemployment (above 18%) while Warsaw and other booming regions (Katowice, Krakow, Poznan) have rates well below the average (2–4%). EBRD (1999) Transition Report; OECD (1999) Economic Surveys Poland; REUTERS (1999)
The share of total exports to Germany was 36.3% in 1998 with a turnover of USD 22.6bn. The share of total imports accounted for 26.4%. Italy, France and Russia are further important trading partners. See EIU (1999) Country Report, see above, and REUTERS (1999)
COMMERZBANK AG (September 1999) Länderrisikoanalyse Polen
See EIU (1999) Country Report; EBRD (November 1999) Transition Report and REUTERS (1999)
See Appendix 11: EBRD (1999) Private sector share of the GDP in Central and Eastern Europe
Own portfolio design, status end of 1999, discussed with DR. EGGERSTEDT, H., Head of Emerging Markets Research, Commerzbank AG; model based on KRALJIC, P. (1990) The Economic Gap Separating East and West, in The McKinsey Quarterly, pp. 62–74
In this context, market entry decisions have to be carefully evaluated. In industries such as telecommunications, energy or cement, you have to be first in the country to take a predominant market position. However, for example, the Russian crisis in 1998 has shown that risks linked to those businesses should not be underestimated.
See also DUNNING, J.H. (February 1994) Re-evaluating the benefit offoreign direct investment, Transnational Corporations, 3rd edition, No. 1 p. 39
PAIZ (February 2000); PAIZ data covers investment outlays in excess of USD lm and estimates of investment projects lower than USD lm, which include the flow of investment in the form of acquisitions of more than 10% of shares in Polish companies, loans and credits given by parent companies to their subsidiaries in Poland and reinvestment of profit in Poland.
See Appendix 12: Overview of Special Economic Zones in Poland
PAIZ (2000)
At the end of 1999, for example, with regard to the automotive sector, Poland has become the 7th largest automobile market in Europe, with car sales growth rates of approximately 20% (3rd place in Europe). Meanwhile, Italian Fiat has a market share of ca. 28%, followed by Daewoo with a 27% market share. General Motors covers ca. 9%, Czech Skoda 7%, and French Renault 5% of the Polish car market. It is estimated that Polish car sales will grow by a further 5% in 2000. See VWD-NEWS (December 23 1999) Mittel- und Osteuropa, Reormländer und Baltische Republiken, Eschborn, No. 249
MINISTRY OF THE STATE TREASURY (September-December 1998), Department of European Integration and Foreign Relations, Privatisation quarterly, Warsaw, page 20
Based on HABUDA, J. (7/1992) Wirtschaftliche Entwicklung und Perspektiven in Ungarn, Polen und der CSFR, in WO Schnelldienst, pp. 17–22; see also REISINGER, H., see above, p. 26
SÜß, D. (15/1997) Privatisierung in Polen, der Tschechischen Republik und Ungarn: Das Erlösparadoxon und seine Auflösung, Frankfurter Institut für Transformationsstudien (FIT) an der Europa Universität Viadrina, Frankfurt (Oder)
MINISTRY OF THE STATE TREASURY (1997) Polish Enterprises in Privatisation Process. General information, Profile, Warsaw, p. 5
Appendix 13 lists further legal acts upon which privatisation is based. See PATZ (December 1999) The Polish Privatisation Process in 1990 –1998
Own overview
SÜß, D. see above
Based on the Law on National Investment Funds and Their Privatisation of 30 April 1993, implementation started in December 1995. For an overview of the NIFs see Appendix 14: National Investment Funds
PAIZ, see above, internet source
MINISTRY OF THE STATE TREASURY Polish Enterprises in Privatisation Process, see above, p. 23
KPMG POLSKA (January 1999) Investment in Poland, 5th edition p. 16
MINISTRY OF THE STATE TREASURY Polish Enterprises in Privatisation Process, see above. See also PRICEWATERHOUSECOOPERS (February 1998) Doing business in Poland, p. 20
For example, a tender was launched in January 2000 to search an advisor to handle the privatisation of Poland’s biggest power plant in Belchatow, which was planned to be privatised in 2001, later postponed. Furthermore, tender for advisors were launched regarding the privatisation of the companies of the Polish spirits sector. See VWD-NEWS (December 1999) Mittel- und Osteuropa, Reformländer und Baltische Republiken, Eschborn, No. 249. See also example in Appendix 15: Privatisation methods for Polmos companies/ spirits sector
See also THE PRIVATISATION AGENCY (June 1999) Disposal of shares in the course of public invitation to negotiation and Disposal of shares in the course of public offer.
The information memorandum includes the operational review of the company and extracts of the financial, legal and environmental reviews.
Access to the company is usually denied to potential purchasers until an indicative bid has been made.
MINISTRY OF THE STATE TREASURY (1997) Polish Enterprises in Privatisation Process, see above, p. 18
MINISTRY OF THE STATE TREASURY (1997) Polish Enterprises in Privatisation Process, see above, p. 20
For example, size of the company, value, financial performance of the last three years, prospects, etc.
Liquidation based on the Privatisation Law, in contrast to Liquidation based on the State Enterprise Law (Bankruptcy).
KWASNIEWSKI, J. (1992) Vademecum prywatyzacji II (Privatisation manual II), Poltext, Warszawa, p.52;
BALTOWSKI, M. (1996) Prywatyzacja przedsiebiorstw panstwowych. Przebieg i ocena (Privatisation of state owned companies. Implementation and valuation.), Wydawnictwo Naukowe PWN, Warszawa, p. 26
KWASNIEWSKI, J. (1992) Vademecum prywatyzacji II (Privatisation manual II), see above, p. 54;
BALTOWSKI, M. Prywatyzacja przedsiebiorstw panstwowych (Privatisation of state owned companies), see above, p. 27; SURDYKOWSKA, S.T. (1996) Prywatyzacja (Privatisation), Wydawnictwo Naukowe PWN, Warszawa, pp. 41–45
DABROWSKI, J.M. (1996) Privatisierung der polnischen Wirtschaft: Fünf Jahre Erfahrung, Berlin, Deutsches Institut für Wirtschaftsforschung
See KPMG POLSKA Investment in Poland, see above, p. 21 and PRICEWATERHOUSE-COOPERS Doing business in Poland, see above
MINISTRY OF THE STATE TREASURY (June-September 1999) Department of European Integration and Foreign Relations, Privatisations Quarterly, Warsaw, p. 7
WASACZ, E., Minister of State Treasury (September 15 1999) press-conference on the Economic Forum Poland-East, quoted by Polish press agency PAP
INTERFAX INFORMATION SERVICES (September 20–24 1999) Poland Business Report, Volume 01, Issue 26
Rights and permissions
Copyright information
© 2001 Deutscher Universitäts-Verlag GmbH, Wiesbaden
About this chapter
Cite this chapter
Tewes, C. (2001). Framework conditions for acquisitions in Poland. In: M&A and Privatisations in Poland. Deutscher Universitätsverlag, Wiesbaden. https://doi.org/10.1007/978-3-322-99195-9_3
Download citation
DOI: https://doi.org/10.1007/978-3-322-99195-9_3
Publisher Name: Deutscher Universitätsverlag, Wiesbaden
Print ISBN: 978-3-8244-7415-8
Online ISBN: 978-3-322-99195-9
eBook Packages: Springer Book Archive