Eastern
Poland
Development challenges
Edited by
Bartosz Jóźwik · Mariusz Sagan
Eastern
Poland
Development challenges
Eastern
Poland
Development challenges
Edited by
Bartosz Jóźwik · Mariusz Sagan
Edited by
Bartosz Jóźwik
Mariusz Sagan
Copy editor
Dorota Partyka
Language editor
Dominika Kopaczek
Cover and book design, typesetting
Amadeusz Targoński
www.targonski.pl
Cover photo:
© Mikołaj Majda
© Equestrian Portrait of Wladyslaw Jagiello from the collections of the Lublin Museum
Reviewers
Jesús Sánchez Cotobal
Wojciech Kosiedowski
Wojciech Misterek
Teresa Pakulska
ISBN 978-83-60695-73-9
© Copyright by Authors and Instytut Europy Środkowo-Wschodniej, Lublin 2013
Instytut Europy Środkowo-Wschodniej
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Contents
Janusz Lewandowski
Wprowadzenie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Janusz Lewandowski
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Bartosz Jóźwik, Mariusz Sagan
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Bartosz Jóźwik
Economic growth and competitiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
1. Historical conditions of economic growth
in the voivodships of Eastern Poland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2. Economic growth in the voivodships of Eastern Poland. . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3. Growing disparities in the regional development in Poland . . . . . . . . . . . . . . . . . . . . . . 34
4. Competitiveness as a principal development tendency
in the voivodships of Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
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CONTENTS
Joanna Szafran
Cohesion policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
1. Voivodships of Eastern Poland as the poorest EU regions in 2004-2006 . . . . . . . 49
2. Participation of voivodships of Eastern Poland
in the 2007-2013 Cohesion Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Henryk Ponikowski
Demography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
1. Demographic situation of Eastern Poland voivodeships. . . . . . . . . . . . . . . . . . . . . . . . . . 73
2. The characteristics of diagnostic demographic features . . . . . . . . . . . . . . . . . . . . . . . . 76
3. Demographic distances in Eastern Poland voivodeships
on European background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4. Demographic future of Eastern Poland voivodeships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Paweł Pasierbiak
Labour markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
1. Main economic indicators in voivodships of Eastern Poland
and relations between economic growth and labor markets . . . . . . . . . . . . . . . . . . . 103
2. Condition of the labor markets in the voivodships of Eastern Poland. . . . . . . . . . 106
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
Katarzyna Sołkowicz
Cultural potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
1. Cultura as a potential of development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
2. Importance of cultural identity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
3. Role of historical conditioning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
4. Multiculturalism in Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145
Mariusz Sagan
Five regional capitals and their development potential . . . . . . . . . . 147
1. Economic potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152
2. Academic potential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
3. Potential of municipal government. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160
Fund acquisition for development by local governments (EU funds) . . . . . . . . . . . . . . . . . . 160
4. Potentials of cultural communities and tourism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONTENTS
5. Assessing the potentials of Lublin, Białystok,
Olsztyn, Rzeszów and Kielce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
Teresa Szot-Gabryś
Factors Influencing Entrepreneurship Development . . . . . . . . . . . . . . 169
1. The significance of entrepreneurship in economical development.
The level of entrepreneurship growth in Eastern Poland. . . . . . . . . . . . . . . . . . . . . . . . 169
2. Conditions for the development of entrepreneurship in Eastern Poland . . . . . . . 175
3. Conditions for undertaking economic activity –
entrepreneur’s perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
4. The system of entrepreneurship and MSMEs sector support . . . . . . . . . . . . . . . . . . 186
5.Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195
Krystyna Leszczewska
Condition of entrepreneurship and the micro,
small and medium-sized enterprise sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197
1. Regional conditions of entrepreneurship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200
2. Regions of Eastern Poland – characteristics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203
3. Entrepreneurship in the regions of Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
4. Innovative entrepreneurship. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
5. Developing structures of clusters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 218
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
Aneta Karasek
Creative class. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223
1. Concept of the creative class. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
2. Measuring the creative class in Poland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 230
3. 3T model applicable to Polish voivodships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234
4. Regional economic growth impacted by the creative class . . . . . . . . . . . . . . . . . . . . 238
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240
Jarosław Kuśpit
Foreign direct investment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
1. Foreign direct investment in theoretical and practical research. . . . . . . . . . . . . . . 244
2. Eastern Poland as a location for direct foreign investment. . . . . . . . . . . . . . . . . . . . . 246
Transport accessibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
Size and quality of labor force. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250
Labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
EASTERN POL AND. DEVELOPMENT CHALLENGES
7
8
CONTENTS
Access to sales markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
Economic infrastructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 254
Social infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
The level of economic development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 256
Natural environment protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 257
General safety level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
Voivodeship self-government activity in attracting investors . . . . . . . . . . . . . . . . . . . . . . . . 258
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260
Anna Nowak
Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
1. Agricultural transformation – conditions and significance . . . . . . . . . . . . . . . . . . . . . 266
2. The significance of agriculture for the economy
of the voivodships of Eastern Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
3. Structural reforms and changes in the productivity
of productive forces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 289
Bożena Oleszko-Kurzyna
Rural areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
1. Defining rural areas and the difficulties in rural development
in the EU and Poland . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295
2. Rural areas of the macro-region of Eastern Poland –
their principal development potentials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308
Małgorzata Dolata
Environmental infrastructure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 313
1. Infrastructure as a development determinant . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 314
2. Infrastructure in the rural areas of Polish eastern voivodships. . . . . . . . . . . . . . . . . 317
Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
Bartosz Jóźwik, Mariusz Sagan
Conclusions
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
333
Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 339
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
J A N U S Z L E WA N D O W S K I
Wprowadzenie
Wyzwania rozwojowe mają charakter powszechny. Słabsze regiony usiłują
„równać w górę”, w stronę silniejszych. Lepiej rozwinięte regiony nie mogą
spocząć na laurach, bo ich przewaga konkurencyjna nie jest dana raz na
zawsze. Problemy „ściany wschodniej” w Polsce – analizowane głęboko
i wszechstronnie w pracy Bartosza Jóźwika i Mariusza Sagana – stanowią
interesującą ilustrację zjawiska obecnego w wielu krajach członkowskich
Unii Europejskiej. Zabieganie o większą spójność terytorialną i wyrównywanie warunków życia jest celem świadomej polityki wszystkich państw.
Od lat 80. jest też deklarowanym celem unijnej polityki spójności, wspartej
przez wieloletnie ramy finansowe. Poligon doświadczalny Europy jest pod
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JANUSZ LEWANDOWSKI
tym względem bogaty, natomiast efekty tych zabiegów są mocno zróżnicowane. Dla przykładu, na dobrej drodze jest Saksonia, ale inne landy wschodnie
RFN nie zmniejszyły dystansu wobec landów zachodnich. Podobne kłopoty ma Extremadura w Hiszpanii oraz Walia w Zjednoczonym Królestwie.
Szczególnym przypadkiem jest jednak włoskie Mezziogiorno, zasilane od
stu lat przez transfery publiczne, najpierw krajowe, potem europejskie. Miliardy lirów i euro nie zmniejszyły dystansu rozwojowego południa Włoch
w stosunku do Mediolanu i Turynu – różnica nie maleje, a nawet rośnie! Jest
to wyrazisty, empiryczny dowód, iż subwencje publiczne nie są wystarczającą
odpowiedzią na wyzwania rozwojowe. Są prawdopodobnie warunkiem koniecznym, ale niewystarczającym do awansu regionów, które z rozmaitych
przyczyn – historycznych, geograficznych, klimatycznych, kulturowych –
nadrabiają zaległości.
Pochodzę z Lublina. Obserwuję losy wschodniej części Polski od początku naszych przemian ustrojowych. Pamiętam niechęć zagranicznych
inwestorów, których namawiałem do lokowania kapitału w Polsce na progu
lat 90., by przekroczyli Wisłę. Preferowali jednak Wrocław, Poznań, Śląsk
i Pomorze. Widzę dobrze mapę autostrad, szybkich pociągów oraz wielkich imprez w rodzaju Euro 2012 – mapę niezbyt korzystną dla wschodu.
Dobrze, więc, że „ściana wschodnia” miała dodatkową alokację funduszy
Unii Europejskiej w latach 2007-13 i nieźle wykorzystała pieniądze inwestycyjne. Podobnie będzie w Perspektywie Finansowej 2014-20. Cieszą mnie
statystyki i oceny wskazujące, że mój Lublin i Ziemia Lubelska idą śladem
Drezna i Saksonii, czyli nadrabiają dystans, ożywiając nie tylko gospodarkę,
ale także ofertę kulturalną i naukową. Jest to i nadal będzie praca w toku.
Przypominam i ostrzegam, że Unia Europejska to nie tylko miliardowe fundusze rozwojowe, ale także surowe reguły pomocy publicznej i konkurencji.
Szczęśliwie, zauważa się w nich szczególne wyzwania rozwojowe słabszych
regionów, co przekłada się na większy poziom dozwolonej pomocy publicznej. Polska Wschodnia pozostanie na poziomie 50% tolerowanej pomocy
do końca 2020 roku.
EASTERN POL AND. DEVELOPMENT CHALLENGES
WPROWADZENIE
Zachęcając do lektury niniejszej książki, wyrażam życzenie mieszkańców „ściany wschodniej” i życzenie osobiste: by możliwie szybko kojarzenie wschodu z „Polską B” – pejoratywne i krzywdzące – straciło aktualność.
Mam nadzieję, że pomogą w tym diagnozy i recepty kreślone w monografii
redagowanej przez Bartosza Jóźwika i Mariusza Sagana.
Janusz Lewandowski
EASTERN POL AND. DEVELOPMENT CHALLENGES
11
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
J A N U S Z L E WA N D O W S K I
Preface
Development challenges are universal and poorer regions attempt to adopt
a top-runner approach to catch up with stronger regions. Better developed
regions cannot rest on their laurels because their competitive advantage
is not given once and for all. The problems faced by Poland’s Eastern Wall
which are thoroughly and comprehensively examined in the monograph
edited by Bartosz Jóźwik and Mariusz Sagan can interestingly illustrate
the phenomenon present in many European Union member states. Striving for greater territorial cohesion and ironing out disparities in the quality of life is the aim of a conscious policy of all countries. Since the 1980s,
these have become a declared aim of the EU cohesion policy, supported by
the multiannual financial framework. Europe is a great testing ground for
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JANUSZ LEWANDOWSKI
these actions whose effects are highly diverse. For example, Saxony is on
a right path unlike the other Eastern German federal states which have not
reduced their distance to the Western German federal states. Extremadura in Spain and Wales in the United Kingdom encounter similar problems.
However, a special case can be called Mezziogiorno in Italy which has been
supported for a hundred years by public transfers, at first national and later
European. Billions of lire and euros have not managed to reduce the development distance between the South of Italy and Milan and Turin – the disparity is not decreasing and actually even growing! It is clear and empirical
evidence that public subsidies are not a sufficient response to development
challenges. They are probably a necessary though insufficient condition
to advance regions which for various reasons like historical, geographical,
climatic, cultural are catching up with the best.
Lublin is my hometown and I have been following the situation of Eastern Poland since the beginning of our political transformation. I remember
how much foreign investors were reluctant when I persuaded them to invest
in Poland in the early 1990s and to cross the Vistula River. Unfortunately,
they preferred Wrocław, Poznań, Śląsk [Silesia] and Pomorze [Pomerania].
I can clearly see a map of highways, high-speed trains and great events such
as Euro 2012 – a map which is not favourable enough for Eastern Poland.
It is perfect that the so called Polish Eastern Wall received an additional allocation of EU funds in 2007-13 and used the investment money quite well.
It will be similar in the Financial Perspective 2014-20. I enjoy statistics and
assessments indicating that my Lublin and Lublin Region are following
the best practice of Dresden and Saxony, or they are catching up and reviving
not only their economies but also cultural and scientific offer. These efforts
are already underway and will be continued. I am reminding and warning
that the European Union means not only billion-worth development funds,
but also strict rules of public aid and competition. Luckily, these are considered as a particular challenge in a development of weaker regions, which
is reflected in a greater level of allowable aid. Eastern Poland will remain at
a 50% tolerated aid level by the end of 2020.
EASTERN POL AND. DEVELOPMENT CHALLENGES
PREFACE
Encouraging to read this monograph, I am expressing the wish of residents of the Polish Eastern Wall and my own that the derogatory and hurtful
association of the so called “Poland B” with the East could become invalid
as soon as possible. I hope that the diagnosis and recommendations contained in the monograph edited by Bartosz Jóźwik and Mariusz Sagan can
be helpful.
Janusz Lewandowski
Translated by Dominika Kopaczek
EASTERN POL AND. DEVELOPMENT CHALLENGES
15
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
BARTOSZ JÓŹWIK, MARIUSZ SAGAN
Introduction
Eastern Poland1 as a border region in the EU is regarded just like Southern
Italy known as Mezzogiorno and the eastern states of Germany as a distinct
area of the European Union that faces numerous difficulties such as socioeconomic backwardness, underdeveloped infrastructure and unfavourable
age dependency. The European debate on the determinants behind and trends
in assistance policies to support poorer regions emphasises that those macro-regions are fairly similar with respect to factors that hinder their development. However, certain economic achievements in the selected regions
of eastern Germany indicate that correctly targeted assistance policies and
1
Considering the needs of this monograph and simplifying things somewhat, Eastern Poland is regarded
here as an area of 5 Polish voivodships: lubelskie, podlaskie, podkarpackie, świętokrzyskie and warmińskomazurskie. Based on the NUTS 2 delimitation, this approach chiefly relates to the implementation of the EU
programme for that area of Poland, i.e. Operational Programme Development of Eastern Poland 2007-2013.
18
BARTOSZ JÓŹWIK, MARIUSZ SAGAN
their substantial volume can overcome any adverse trends in development.
Unfortunately, the long-term assistance to southern Italy has failed to bring
the expected results there, and that region remains a significant financial
burden to rich northern Italy. Despite being a problem region that has been
regarded as “a trendy research topic” in the Polish literature for less than
10 years, Eastern Poland has already been indicated as a region where good
and bad experiences need to be applied to shape a dedicated and based on
endogenous potentials regional policy in the EU and the USA. Therefore,
the European reader should be introduced into the nature and specificity
of that region in view of the possible policies implemented by the EU and
national authorities to support development and the present efforts to do
so. It should also be borne in mind that Eastern Poland as a region neighbouring Ukraine, Belarus and Russia has become an important element
of the geopolitical and economic jigsaw puzzle. Accordingly, its possible
economic success can accelerate the convergence of European values into
the East, extend stabilisation in Europe and increase trade and investment
flows. Regarding that fact, the assistance policy to that region may become
much more significant (also for that region itself) than peripheral southern
Italy (in view of today’s geopolitics).
Today’s low social-economic development and investment attractiveness of Eastern Poland in relation to Central and Western Poland chiefly
result from the past implications that date back to the 19th century. Firstly,
the backwardness of that macro-region was caused by the unfavourable circumstances that accompanied the system transformation in Poland after 1989,
i.e. the collapse of the industry along with the frequently passive local elites
who expected “invisible market forces” or decision-makers from the capital2
to remedy that unfavourable situation. The poor government involvement
and assistance, especially in investment for over twenty years of the system
2
More in: M. Stefański, Świat jest płaski czy kolczasty; czyli jak wspierać innowacyjność w regionie lubelskim?
[Is the world ‘flat’ or ‘spiky’? How to support the innovativeness in the Lublin region?], [in:] Wspieranie procesów innowacyjnych w gospodarce regionu [Assistance to innovative processes in the regional economy],
ed. M. Stefański, Innovatio Press, Lublin 2009, p. 60
EASTERN POL AND. DEVELOPMENT CHALLENGES
INTRODUCTION
transformation, accompanied by typical phenomena for less developed regions like insufficient civil society activities, no enthusiasm among people
that taking matters into one’s own hands can change the adverse economic
situation have deteriorated the already difficult situation of Eastern Poland.
Actually, the unfavourable allocation of EU financial aid in 2004-2006 can
be an excellent example. Its algorithm favoured the richer regions of Western Poland and a majority of special economic zones to be established outside Eastern Poland. This, in fact, lasted from 1995 to 20073. Secondly, unlike
the German or Spanish assistance policies to their poor regions, the Polish
regional and transport policies provided for no investment to modernise
the road and railway infrastructure in eastern voivodships. The idea that
Eastern Poland should be abandoned or, as some decision-makers would
wish, be left to the free market was held until the first decade of 21st century,
or after nearly 20 years of the government assistance policy to almost only
rich regions or border regions in Western Poland. In the EU’s financial perspective for 2007-2013, much more funding was allocated for poorer regions
under the Regional Operational Programmes and the regional components
of the Operational Programme Human Capital as well as the Operational
Programme Development of Eastern Poland which is a special, individualised assistance programme for Eastern Poland.
The fact that Eastern Poland is a peripheral region is another important
though adverse factor behind the competitiveness of that region and consequently Poland. Moreover, when Poland joined the EU, Eastern Poland
turned from interface peripheries into external peripheries, which was accompanied by separating from Belarus, Russia and Ukraine4. The fact that
Eastern Poland’s economy depends on low-productive agriculture which
3
4
More in: M. Sagan, Potencjał rozwojowy miast wojewódzkich Polski Wschodniej [The development potential of the regional capitals in Eastern Poland], [in:] Strategiczna problematyka rozwoju Polski Wschodniej
[The strategic issues of the development of Eastern Poland], ed. D. J. Błaszczuk, M. Stefański, Innovatio
Press, Lublin 2010, p. 220.
T. Zarycki, Polska wschodnia w perspektywie centro-peryferyjnej [Eastern Poland in the central and peripheral
perspective] [in:] Strategiczna problematyka rozwoju Regionu Lubelskiego [The strategic issues of the development of Eastern Poland], ed. M. Stefański, Innovatio Press, Lublin 2011, pp. 96-97.
EASTERN POL AND. DEVELOPMENT CHALLENGES
19
20
BARTOSZ JÓŹWIK, MARIUSZ SAGAN
generates low income and reinforces the unfavourable economic structure
there is the key and intractable problem of that region5. Unfortunately, Eastern Poland is still quite often externally and internally stigmatised, which is,
unfortunately, a bad “habit” of Poland. Accordingly, rational decisions about
relevant policies of government intervention in that region can be hampered
and potential investors, tourists or students can often be frightened off.
Basically, this monograph discusses the implications of and obstacles
to the development and changes, especially in 2000-2010 in that macro-region of the European Union in view of contemporary global socio-economic
processes. An important objective of this study is the investigation on the nature of the challenges faced by Eastern Poland both in view of the EU cohesion
policy for 2014-2020 and the economic governance of the global economy
that has been shaped since the 2008 financial crisis. Eastern Poland is most
likely to obtain much more EU funding than it was in the 2007-2013 financial perspective. Therefore, any attempts to formulate recommendations for
the Polish economic policy to accelerate development in that region are justified. Actually, the faster development of Eastern Poland seems to be critical,
especially in the light of the implemented and planned expansion of the EU
to the East. Joining such a discussion is a great intellectual challenge, given
the difficulties in evaluating the efficiency of today’s policies addressed that
part of Poland6. Also, the assistance to that region – much more significant
than previously – started in the late 2000s so the data available is insufficient
to pre-evaluate the existing policy.
Numerous endogenous and exogenous factors are behind the development processes in Eastern Poland. Combining those two types of factors
of growth is an opportunity to improve the growth rate of the socio-eco-
5
6
M. W. Kozak, Kluczowe problemy rozwojowe Polski Wschodniej: próba identyfikacji [Key development difficulties in Eastern Poland. An attempt of their identification] [in:] Ibidem, p. 154.
The Central Statistical office provides the data on regional GDP with a 2-year delay so the scope of the true
convergence of Eastern Poland in relation to Poland and other EU regions is difficult to be estimated. The latest data available concern the year 2010 when the total 2007-2013 EU funds allocation to Eastern Poland
was still negligeable.
EASTERN POL AND. DEVELOPMENT CHALLENGES
INTRODUCTION
nomic changes there. At a time of certain internal potentials, Eastern Poland
should necessarily attract external capital generated to a far greater extent
by the inflow of foreign investment. The cases of the world’s less developed
regions that undergo a successful process of transformation and convergence indicate that a skilful combination of individual endogenous potentials and strong, mainly private external capital is an extremely important
factor. Therefore, this study examines the selected but important implications
of the development of Eastern Poland. They can enhance faster development
there although they are problem areas that require government assistance,
e.g. agriculture, SMEs, basic urban centres, age dependency.
The goals of this monograph are reflected in the layout and structure.
The investigation concerns Eastern Poland’s system and macroeconomic
determinants, implications for its demography and labour market and cultural environment; its entrepreneurship, creative classes and foreign direct
investment; its agriculture and rural areas.
Chapter 1 by Bartosz Jóźwik compares the economic growth and competitiveness of Eastern Poland and the remaining EU regions. The author
stresses that the deteriorating position of Eastern Poland in the ranking
of the EU regions based on the per capita GDP criterion can be improved
in the next financial perspective as a result of more involvement of the Polish
authorities. Chapter 2 by Joanna Szafran explores the opportunities of the EU
cohesion policy offered to the voivodships of Eastern Poland. The author
carefully studies the scopes of the use of the EU assistance programmes
in 2004-2006 and 2007-2013. She claims that Eastern Poland’s future absorption capacity and effective use of the EU assistance relate to the abilities of that macro-region to co-finance projects and respecting its needs
in the government’s development programmes and state budget assistance.
Henryk Ponikowski’s chapter is an attempt to answer the question to what
extent Eastern Poland’ economic development is impacted by demographic
phenomena there. The author formulates the thesis that Eastern Poland
should be subject to demographic convergence, just as it is to economic one
now. Regarding demographic trends, Paweł Pasierbiak carefully examines
EASTERN POL AND. DEVELOPMENT CHALLENGES
21
22
BARTOSZ JÓŹWIK, MARIUSZ SAGAN
the trends in the labour market in Eastern Poland in Chapter 4. Chapter
5 by Katarzyna Sołkowicz focuses on culture as an important element of regional changes. The author attempts to investigate the relationship between
the culture and implications for the development in Eastern Poland. She investigates the meaning of selected aspects of cultural conditions like cultural
identity, historical circumstances, multiculturalism and innovative culture
for Eastern Poland. In Chapter 6, Mariusz Sagan evaluates the development
potentials of Eastern Poland’s regional capitals. He formulates recommendations on the future state intervention policies for Eastern Poland which
are funded mainly from the 2014-2020 EU budget. The author emphasises
the need to concentrate financial assistance to be allocated to the largest cities regarded as engines of regions, which is consistent with a new EU’s approach to support large cities.
Chapters 7 and 8 focus on the development of entrepreneurship in Eastern Poland, which is a fundamental issue. Teresa Szot-Gabryś examines its
implications and institutional assistance to support it. Krystyna Leszczewska’s
comprehensive investigation on the trends in the development of the entrepreneurship in all of the voivodships of Eastern Poland in 2000-2010 brings
numerous recommendations on the assistance to develop small business
in Eastern Poland.
Chapter 9 by Aneta Karasek discusses the potential of the creative classes
in Eastern Poland that as R. Florida claims is a valuable asset of any region
in the world that should be used to develop the economy and innovation. She
points out that the clusters of creative classes in Eastern Poland, i.e. the largest regional capitals, are not sufficiently used to facilitate development there
although the EU funds in 2014-2020 should make a contribution. In chapter 10, Jarosław Kuśpit discusses Eastern Poland’s absorption potential concerning foreign direct investment (FDI). He attempts to indicate the reasons
why investors are not interested enough in that part of Poland and the EU.
Chapters 11, 12 and 13 focus on the agriculture and rural areas of Eastern Poland. Regarded as one of the key barriers to faster convergence there,
the low productive agriculture in Eastern Poland is steadily changing and
EASTERN POL AND. DEVELOPMENT CHALLENGES
INTRODUCTION
being modernised. Those issues are investigated by Anna Nowak in Chapter 11, Bożena Oleszko in Chapter 12 and Małgorzata Dolata in Chapter 13.
Certainly, this monograph does not attempt a survey of all of the difficulties, implications and development challenges faced by Eastern Poland as an
area specially supported by the EU 2020 regional policy. We assume, however, this monograph can inspire researchers to do the further and in-depth
research and prove to be useful in preparing recommendations for the new
2014-2020 programming period. We hope that the issues raised here can be
interesting not only to researchers who investigate economically underdeveloped regions but also policy makers in the European countries and regions,
e.g. the Balkans, Bulgaria, Ukraine that suffer from regional economic disparities and shall be able to take action, as Eastern Poland did, to develop their
own programmes of considered, relevant, regular and long-term assistance.
Bartosz Jóźwik, Mariusz Sagan
Lublin (Poland), September 2013
EASTERN POL AND. DEVELOPMENT CHALLENGES
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EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
BARTOSZ JÓŹWIK
Economic growth
and competitiveness
The economic growth and improvement of living conditions in the poorest European Union regions are frequently examined. Clearly, these issues
are also tackled by the European regional policy, especially the policies implemented by the EU Central and Eastern Europe regions, including Polish
eastern voivodships known as Eastern Poland. The economic development
of this region basically differs from that of other regions in Poland so this
region requires much attention, especially when economic growth is assisted by the EU cohesion policy. To explain the conditions of the economic
development in the regions of Eastern Poland, the several year economic
policy of the central authorities which chiefly supported the development
of Warsaw and the Polish coal mining district is discussed here. Some measurable effects of this policy can be still experienced today. Only recently,
the development of Eastern Poland has been improved. Unfortunately, even
26
BARTOSZ JÓŹWIK
the accelerated growth as seen there has not stopped the growing dispersion
measured by GDP per capita relative to the richer regions. These issues are
discussed in the second and third part of this chapter. Finally, the chapter
discusses the competitiveness of the regions of Eastern Poland and the priorities of regional operational programmes subsidised by the European Regional Development Fund and European Social Fund that are to improve it.
1. Historical conditions of economic growth
in the voivodships of Eastern Poland
The fact that the voivodships of Eastern Poland belong the least developed regions of the European Union has been chiefly conditioned by historical events
like the Partitions whose impact on today’s Polish economy is now regarded
as negligible and thus impossible. Such doubts can strengthen the current
spectacular fast growing economic and housing infrastructure, both in developed countries and in some developing countries such as China and India. The new location of Eastern Poland when Poland’s post-war border was
realigned1 was another significant and negative factor that hindered development in this area. The conditions for the development of the voivodships
of Eastern Poland were also inconvenient when the government of People’s
Republic of Poland was implementing its policies of making more than 40%
of investments in the southern macro-region, especially Górnośląski Okręg
Przemysłowy [Upper Silesian Industrial Region]. Accordingly, less than 0.1%
of the government industrial investment2 was made in the eastern and northern Polish voivodships then. It should be pointed out that such a percentage
of investment definitely determined development opportunities in Eastern
1
2
More in T. Zarycki, Polska Wschodnia w perspektywie centro-peryferyjnej [Eastern Poland and the centro-peripheral approach] [in:] Strategiczna problematyka rozwoju Regionu Lubelskiego [Strategic issues on the development of the Lublin region], ed. M. Stefański, Lublin 2011, p. 97.
Strategia rozwoju społeczno-gospodarczego Polski Wschodniej do roku 2020 [Strategy for the socio-economic
developement of Eastern Poland until 2020], Ministry of Regional Development, Warszawa 2008, p. 4.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
voivodships regardless of the then proclaimed ideological principles to balance development in each region.
The collapse of communism has changed the conditions for economic development in Poland. Since then, the economic development of post-socialist
countries and regions that joined the European Union has been impacted
by two key processes/factors: economic transformation and European integration. The beginning of the economic transformation witnessed the economic downturn similar to the Great Depression, followed by the rapid
growth primarily as a result of a change in labour productivity and resources
of the labour force due to the changed economic activity of the population
and demographic changes3. W. Siwiński’s analysis on how GDP per capita
was being shaped in 1995-2004 in the countries under transformation that
joined the European Union shows that these countries significantly managed
to bridge the income gap caused by the crisis in the first stage of transformation. W. Siwiński pointed out that the countries under study were easily
classified then as: a group of small Baltic states like Estonia, Latvia, Lithuania
that managed to reduce very quickly their income gaps and a group of other
countries like Hungary, Poland, Slovakia, Slovenia, Czech Republic that are
reducing these disparities twice slower 4.
At the time of the deep recession after the collapse of communism, the Polish government interventions focused primarily on balancing the negative
effects of economic transformation. Again, the most of assistance was granted
to the regions to which the most of development funds were allocated during
communism. The already mentioned ”Strategy of socio-economic development of Eastern Polish 2020”, developed by the government, states clearly
that “the voivodships of Eastern Poland had no chance to change their sta-
3
4
W. Siwiński, Wzrost gospodarczy Polski i krajów Europy Środkowo-Wschodniej: czy możliwa jest trwała konwergencja dochodowa z Europą Zachodnią? [Economic growth in Poland and EU Central and Eastern Member
States. Is a sustainable income convergence with Western Europe possible?] [in:] Konwergencja gospodarcza
Polski [Economic convergence in Poland], ed. Z. B. Liberda, Polskie Towarzystwo Ekonomiczne, Warszawa
2009, p. 126.
W. Siwiński, op. cit., p. 139.
EASTERN POL AND. DEVELOPMENT CHALLENGES
27
28
BARTOSZ JÓŹWIK
tus and they grew relatively slower in the 1990s than the rest of the country
[...], which resulted from both the decisions by the central authorities and
internal conditions in each region of Eastern Poland”5.
These unfavourable conditions for socio-economic development
of the voivodships of Eastern Poland triggered and gradually increased discrepancies between them and the other Polish voivodships. The development disparities between the former Polish 49 voivodships were discussed
by, e.g. Franz Barjak. He applied the method of cluster analysis to classify
these disparities into four categories/clusters6: a rural cluster with low economic capability and insignificant potential for growth; a cluster with medium economic capability and significant labour market problems; a cluster
with high economic capability, a very good supply of human capital and
with growth potential through technical progress; a manufacturing cluster
with a very good supply of capital and low-skilled labour force. The entire
area of the five voivodships of Eastern Poland is classified as rural areas with
low economic and growth potentials, see Map 1. F. Barjak stresses that areas
classified as rural are not homogeneous and sub-regions of more considerable economic and growth potentials should be distinguished there. Urban
centers, including Lublin, Białystok, Rzeszów and Kielce are such sub-regions in Poland.
5
6
Strategia rozwoju społeczno–gospodarczego Polski Wschodniej...[Strategy for socio-economic development
of Eastern Poland...], p. 7.
F. Barjak, Regional Disparities in Transition Economies: a Typology for East Germany and Poland, “Post-Communist Economies” 2001, vol. 13, no. 3, p. 299.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
Map 1. Clusters in the Polish voivodships as in the 1997 administrative division
Source: F. Barjak, Regional Disparities in Transition Economies: a Typology for East Germany and Poland, Post-Communist Economies,
vol. 13, no. 3, 2001, p. 299.
The pre-accession period was not more favourable for Eastern Poland,
either. The allocation of pre-accession funds as specified in the adopted priorities was more favourable for the central and western voivodships. Large
projects subsidised under the Instrument for Structural Policies for PreAccession (ISPA) were mainly implemented in the most developed regions.
EASTERN POL AND. DEVELOPMENT CHALLENGES
29
30
BARTOSZ JÓŹWIK
Also, the relatively low GDP per capita in the regions of Eastern Poland relative to a larger geographical space, i.e. the entire European Union,
is regarded as a result of the past system. In 2008, or nearly twenty years
after the fall of communism, GDP per capita in almost all of the regions
in the post-socialist countries was low (Map 2).
Map 2. GDP per capita as measured by PPS in the EU regions in 2008 (UE-27average =100)
Source: Eurostat
The favourable socio-economic development in Eastern Poland started
as soon as the EU cohesion policy was implemented. Obviously, considered to be one of the key areas of European integration, the EU cohesion
policy is to promote the harmonious development of the European Union,
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
to strengthen economic, social and territorial cohesion in the EU, and in particular to reduce any development disparities between various EU regions
and the underdevelopment of the least favoured regions, including rural areas and areas affected by industrial transformation7. It should be emphasised,
however, that the voivodships of Eastern Poland witnessed significant limitations in the absorption of funds for socio-economic development in the first
period of membership, i.e. in 2004-2006 because the implementation of sectoral economic priorities continued to focus on large transport and environmental protection investment projects to be implemented in the western
and central voivodships8.
2. Economic growth in the voivodships of Eastern Poland
The unfavourable historical conditions, including the insignificant allocation of funds on economic development triggered considerable disparities
in economic development between the voivodships of Eastern Poland and
other regions of Poland and Western Europe. The statistics by Eurostat for
the EU regions NUTS 2 on how GDP per capita in 2010 was developing indicate that the five voivodships of Eastern Poland belong to the poorest EU
regions (Table 1).
Table 1. NUTS2 EU regions with the lowest GPD per capita in 2010
Region
7
8
Country
GPD
per capita
Region
Country
GPD
per capita
Severozapaden
BG
2,900 Lubelskie
PL
6,200
Severen tsentralen
BG
3,100 Podkarpackie
PL
6,200
Yuzhen tsentralen
BG
3,300 Dél-Alföld
HU
6,300
Nord-Est
RO
3,600 Dél-Dunántúl
HU
6,600
Severoiztochen
BG
3,900 Vest
RO
6,600
Art. 174 of the consolidated version of the Treaty on the functioning of the European Union.
Strategia rozwoju społeczno-gospodarczego Polski Wschodniej... [Strategy for socio-economic development
of Eastern Poland...], p. 4.
EASTERN POL AND. DEVELOPMENT CHALLENGES
31
32
BARTOSZ JÓŹWIK
Region
Country
GPD
per capita
Region
Country
GPD
per capita
Yugoiztochen
BG
3,900 Podlaskie
PL
6,700
Sud-Vest Oltenia
RO
4,500 Warminsko-Mazurskie
PL
6,800
Sud-Est
RO
4,800 Świętokrzyskie
PL
7,000
Sud - Muntenia
RO
4,800 Opolskie
PL
7,300
Nord-Vest
RO
5,200 Kujawsko-Pomorskie
PL
7,700
Centru
RO
5,600 Małpolskie
PL
7,800
Észak-Magyarország
HU
5,900 Lubuskie
PL
7,800
Észak-Alföld
HU
6,100 Zachodniopomorskie
PL
8,000
Source: Prepared by the author based on the data from Eurostat
The long lasting low position of the voivodships of Eastern Poland
in the ranking of the poorest EU regions is associated with a relatively low
value of GDP per capita which cannot significantly reduce the gap between
the most or even medium-developed European regions, even if growth rates
are significant. For example, the average GDP per capita in the European Union region in 2010 was three and a half times higher than the average value
for the voivodships of Eastern Poland or almost four times, i.e. 3.8 higher
than in the lubelskie voivodship. Such considerable disparities mean that certain long-run fundamental economic changes if, of course, ever possible are
required to bridge the gap in the economic development between the least
developed EU regions and the EU average.
The growth rate of GDP per capita in the voivodships of Eastern Poland is high enough relative to that of other EU regions. The medium-term
growth rate of GDP per capita in the voivodships of Eastern Poland in 20002010 was 6.27%, whereas the average value for all EU NUTS2 regions was
3.47%9. The growth rate of GPD per capita in the voivodships of Eastern
Poland was as follows: 6.58% in świętokrzyskie, 6.41% in podlaskie, 6.19%
in lubelskie and podkarpackie, and 5.99% only in warmińsko-mazurskie.
9
The EU regional average was calculated without four German regions: Brandenburg, Dresden, Chemnitz,
Leipzig and two Italian ones: Emilia-Romagna and Marche due to no relevant data in Eurostat.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
Such a fast annual growth rate of GDP per capita increased nearly to Euro
3,500 in 2000 and to 6,500 in 2010. However, this high growth rate of GDP
per capita in the Polish eastern voivodships compared to the average value
calculated for all of the EU regions is insufficient to improve their rating
in the GDP per capita ranking of EU regions. Other less wealthy regions also
grow fast as they compete with the voivodships of Eastern Poland. The voivodships of Eastern Poland were steadily rated lower until 2007 (Figure 1). This
situation changed after 2008, or when the economic crisis made GDP drop
in many EU Member States and regions.
Fig. 1. Voivodships of Eastern Poland in the rating of the EU regions
in terms of GDP per capita as measured by PPP in 2000-2010
Source: Prepared by the author based on the data from Eurostat
Since 2008, the Polish eastern voivodships has been rated higher for
their GDP per capita among EU regions. Surprisingly, these changes have
been caused by the slower decrease rate of GDP per capita than that of their
competitors. In 2008-2010, the medium-term growth rate of GDP per capita
EASTERN POL AND. DEVELOPMENT CHALLENGES
33
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BARTOSZ JÓŹWIK
was negative for 187 regions, including the voivodships of Eastern Poland.
Despite this relatively more favourable situation of Polish Eastern voivodships, the decline rate of GDP per capita (-1.74%) is bothering as it was after
all almost twice the average for the EU regions (-0.95%).
3. Growing disparities in the regional development in Poland
Irregular regional growth of GDP per capita has increased disparities
in the economic development of many European Union Member States.
While GDP per capita is similar in the entire European Union, which is confirmed by the studies on convergence in the European Union regions,
the disparities in GDP per capita across regions, most notably in the European Union Central and Eastern European Member States are increasing. The phenomenon was discussed by, e.g. Petrakos G., P. Artelaris who
studied the convergence in the EU regions in 1990-200010. They claim that
the growing disparities may be due to the opening of markets as a result
of the European economic integration, and thus the intensified competition
there. Therefore, G. Petrakos, P. Artelaris stress the role of regional policy
as one of the most important types of European Union policy in the foreseeable future.
M. Smętkowski, P. Wójcik concluded in a similar way while studying
the convergence in the regions of the European Union Central and Eastern
European Member States11. They say that this area showed quite weak regional
convergence, and most of these countries hardly tended to polarise development processes although the situation in smaller countries was quite stable.
Similar conclusions can be drawn from the study by E. Łaźniewska, T. Górecki
and R. Chmielewski on the regional development in the EU Central and
10
11
G. Petrakos, P. Artelaris, European Regional Convergence Revisited: A Weighted Least Squares Approach, Growth
& Change vol. 40, no. 2 (Jun2009), p. 327.
M. Smętkowski, P. Wójcik, Regiony w Europie Środkowo-Wschodniej: tendencje i czynniki rozwojowe [Regions
in Central and Eastern Europe: development trends and factors], Centrum Europejskich Studiów Regionalnych i Lokalnych Uniwersytet Warszawski, Warszawa 2008.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
Eastern European Member States, Cyprus and Malta. The results prove,
for example, that geographical convergence occurred in this area although
the gap between the regions with the lowest GDP per capita and the highest
one increased. Moreover, the disparities between GDP per capita increased
in all of the countries studied, which may be due to the phenomenon typical
of early stages of national economic development, namely several core regions
drive a process of catching up as a result of strong agglomeration effects12.
Many countries face the problem of growing disparities between regional
GDP per capita in the various EU Member States. Table 2 shows the values
of dispersion index calculated as follows13:
D – dispersion,
yi – GDP per capita in the i-th region of a given country,
Y – GDP per capita of a given country,
pi – population of the i-th country,
p – population of a given country,
n – number of regions in a given country.
The so defined dispersion is zero if the values of GDP per capita across
regions are identical. Dispersion increases if the disparity in GDP per capita across regions increases. For example, the value of 20.7% in Poland
in 2009 means that GDP as measured by the population size of all Polish
12
13
E. Łaźniewska, T. Górecki, R. Chmielewski, Konwergencja regionalna [Regional convergence], Wydawnictwo
Uniwersytetu Ekonomicznego in Poznań, Poznań 2011, p. 204.
A. Krueger, Convergence and disparities in regional Gross Domestic Product, Economy and Finance, Eurostat.
Statistics and Focus, 46/2011, p. 7.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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36
BARTOSZ JÓŹWIK
voivodships/regions differs from the national average by 20.7% on average.
The dispersion index for Poland increased by 3.3 percentage points in 19992008. In 2009, a similar difference in regional gross domestic product was
recorded in Italy and Sweden (Table 2).
Table 2. Regional (NUTS2) GDP per capita dispersion index in the selected UE Member States
in 1999-2009 (given in % of national GDP per capita).
1999
2001
2003
2004
2007
2009
EU-27
32.4
31.6
30.1
29.4
28.2
27.2
Hungary
30.8
33.6
34.6
34.3
37.4
39.8
Bulgaria
21.9
20.5
24.3
25.8
36.1
39.6
Slovakia
25.9
26.8
27.8
28.1
30.8
33.2
Romania
20.8
22.9
23.5
23.1
28.5
30.4
Czech Republic
22.1
24.3
25.0
24.2
26.5
26.9
Great Britain
20.4
21.3
22.5
22.3
23.4
24.9
Belgium
25.4
25.6
25.2
25.3
24.3
24.2
Portugal
22.0
22.0
23.2
23.6
23.5
23.6
France
20.7
20.4
20.8
20.0
23.2
23.1
Italy
24.8
24.3
24.2
24.3
23.1
22.3
Poland
17.4
18.3
18.3
18.7
19.9
20.7
Sweden
16.2
14.9
14.9
15.6
15.5
19.0
Spain
20.5
20.4
19.1
18.8
18.3
18.5
Ireland
15.9
15.9
16.8
15.4
16.3
16.5
Germany
17.5
18.0
17.8
17.5
16.9
16.1
Finland
17.7
17.3
15.0
15.5
14.8
15.6
:
:
:
:
15.1
15.2
Austria
18.5
18.3
17.9
16.8
15.1
15.1
Netherlands
10.8
10.9
11.0
11.3
10.6
10.6
Denmark
Source: Prepared by the author based on the data from Eurostat
This dispersion index changed in a varied way in the remaining EU Member States for which statistics are available. Dispersion increased mostly
in Bulgaria (by 17.7 percentage points), Romania (by 9.6 percentage points)
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
and Hungary (by 9 percentage points), whereas it decreased mostly in Finland (by 2.1 percentage points), Italy (by 2.5 percentage points) and Austria
(by 3.4 percentage points). Actually, the reduced dispersion index calculated
for the European Union is an advantage for the balanced regional development within the European regional policy. In 1999, this indicator amounted
to 32.4% and in 2009 it was 27.2%, followed a steady decline.
Fig 2. Regional GDP per capita deviation in Poland in relation to the average value for 1995-2010
Source: Prepared by the author based on the data from Eurostat
EASTERN POL AND. DEVELOPMENT CHALLENGES
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BARTOSZ JÓŹWIK
The growing disparities in the regional development in Poland are similar to the EU average of 2.4%. Accordingly, the dispersion in Poland can be
assessed as similar to that in the European Union although it is worth being
examined in detail. Fig. 2 depicts how the regional GDP per capita in Poland differs from the average for Poland in 1995-2010. Clearly, the deviation
was increasing over the entire period, which reflects the growing dispersion.
The standard deviation of regional GDP per capita was five times higher then.
Although the voivodships of Eastern Poland are relatively steadily poorer, their GDP per capita is increasing in relation to the average value for Poland. The five lowest lines in Fig. 2 stand for the changes in the voivodships
of Eastern Poland, i.e. the lowest line refers to lubelskie, followed by podkarpackie, podlaskie, warmińsko-mazurskie and świętokrzyskie. The fact
that these disparities are growing may mean that the Polish economic policy is not efficient enough although it has been recently dedicated to bridge
the development gaps amongst the regions. This issue will be discussed
in detail in the next section.
4. Competitiveness as a principal development tendency
in the voivodships of Eastern Poland
In the current 2007-2013 programming period, the government (national) economic programmes like the National Cohesion Strategy, Development of Eastern Poland Operational Programme and regional operational
programmes for the five voivodships of Eastern Poland directly indicate
the development trends for the voivodships of Eastern Poland. Following
the principles of EU subsidised socio-economic projects, project objectives
and priorities must be consistent with the guidelines specified in the Commission Communication “Cohesion Policy in Support of Growth and Jobs:
Community Strategic Guidelines, 2007-2013”14.
14
Communication from the Commission: Cohesion Policy in Support of Growth and Jobs: Community Strategic Guidelines, 2007-2013, COM(2005) 299 final, Brussels, 5 July 2005.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
The one of the goals of the basic strategy, or the National Cohesion Strategy, i.e. “Enhancing the competitiveness of Polish regions and preventing
their social, economic and territorial marginalisation” refers to the voivodships of Eastern Poland. This goal is implemented by the national and regional operational programmes such as the national Development of Eastern
Poland Operational Programme whose main goal, i.e. accelerating the socio-economic development of Eastern Poland following the principle of sustainable development was formulated quite universally. Its objectives15, i.e.
the stimulation of the development of a competitive knowledge-based economy, better broadband Internet access and the removal of failures in the nextgeneration network (NGA) market and basic infrastructure for broadband
Internet access, the development of selected metropolitan functions of regional capitals, the better availability and quality of transport connections
in the voivodships of Eastern Poland, the stronger impact of sustainable
tourism on macro-economic development and optimisation of the implementation of this operational programme can specify how this development
can be achieved. The implementation of these objectives should improve
the dynamics of diffusion of development from metropolitan centers into
the surrounding areas and accelerate structural changes in these areas such
as agricultural transformation and modernisation, non-agricultural job creation and improving education and qualifications of people in rural areas
and small towns that serve these areas16.
The regional strategic objectives, i.e. the ones in the operational programmes of the five voivodships of Eastern Poland have been formulated
in a different way. They are primarily dedicated to enhance regional competitiveness. The main objectives of the five regional operational programmes
Program Operacyjny Rozwój Polski Wschodniej 2007-2013. Narodowe Strategiczne Ramy Odniesienia 20072013 [2007-2013 Development of Eastern Poland Operational Programme. 2007-2013 National Strategic
Reference Framework], Ministry of Regional Development, Warszawa 2009, p. 66.
16 Narodowe Strategiczne Ramy Odniesienia 2007-2013 wspierające wzrost gospodarczy i zatrudnienie. Narodowa
Strategia Spójności [National Strategic Reference Framework 2007-2013, supporting the economic development and employment in Poland. National Cohesion Strategy], Ministry of Regional Development, Warszawa 2007, p. 69.
15
EASTERN POL AND. DEVELOPMENT CHALLENGES
39
40
BARTOSZ JÓŹWIK
are summarised in Table 3. Importantly, the strategies adopted to achieve
the main objectives specified in Table 3 vary across regions.
Table 3. Main objectives of the five regional operational programmes for Eastern Poland
Voivodship
Main objective of the regional operational programme
lubelskie
Competitiveness enhancement in the lubelskie voivodship to achieve faster economic development and increase employment given regional environmental and cultural qualities
podkarpackie
National and international economic competitiveness enhancement
and improvement of regional accessibility
podlaskie
Acceleration of economic growth and non-agricultural job creation respecting and preserving the regional natural and cultural heritage
świętokrzyskie
Improving the conditions that support the development of competitiveness and generate new jobs in the regional economy
warmińsko-mazurskie
Economic, social and spatial cohesion of the region of Warmia and Mazury
with other EU regions
Competitiveness growth of the economy and number and quality of cluster relations
Source: Prepared by the author based on the regional operational programmes
Unfortunately, the indicators applied to achieve the main objectives
of the operational programmes as specified in Table 4 do not directly refer
to regional competitiveness but the number of jobs created and the impact
of implementing the programmes on how regional GDP can change (Table
4). This fact can be regarded as inconsistency or even confusion in strategic
planning. Although one can imagine that the improvement of the competitiveness of the regional economy can cause higher employment and accelerate GDP, there is an additional difficulty in assessing the effectiveness and
efficiency of administration if improvement competitiveness indicators are
defined so.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
Table 4. Indicators of implementing the main objective
of the regional operational programmes for Eastern Poland
Indicator/voivodship
lubelskie
podkarpackie
podlaskie
świętokrzyskie
warmińskomazurskie
Additional increase in
GDP generated owing
to the ROP assistance*
2.2%
1.28%
2.88%
2.15%
2.6%
Net number
of created jobs**
6,500
- 546
14,020
5,285
4,300
Gross number
of created jobs
5,980
3,696
3,667
951
4,710
* The impact of the implementation of the programme on the change in GDP means the change in GDP as measured by fixed market price
(in %) – the difference between the scenarios “with and without ROP”. Estimated following the HERMIN model, the target values reflect the cumulative impact of ROP in 2013.
** Net number of created jobs stands for the additionally employed in general as a result of implementing ROP – difference between the scenarios “with and without ROP”. Estimated following the HERMIN model, the target values reflect the status for the end of 2013. These values
are not cumulative.
Source: Prepared by the author based on the regional operational programmes for Eastern Poland
An unambiguous evaluation of the competitiveness of Polish Eastern
regions and its possible change due to the implementation of the regional operational programmes is not an easy task, either. The competitiveness
of economies is measured and defined in many ways in the economic literature. Definitions and methods to measure economic competitiveness are
comprehensively described in the Polish literature by J.W. Bossak and W. Bienkowski17 and J. Misala18. However, some of the most popular indicators
of international economic/regional competitiveness are reported, for instance, in The Global Competitiveness Index published by the World Economic Forum, the World Competitiveness Yearbook published by the Swiss
Institute for Management Development since 1989, the European Competitiveness Index published by the University of Wales Institute in Cardiff and
17
18
J. W. Bossak, W. Bieńkowski, Międzynarodowa zdolność konkurencyjna kraju i przedsiębiorstw. Wyzwania dla
Polski na progu XXI wieku [Country’s and enterprise’s international competitive competence. Challenges
for Poland at the edge of the 21st century], Szkoła Główna Handlowa in Warszawa, Warszawa 2004.
J. Misala, Międzynarodowa konkurencyjność gospodarki narodowej [International competitiveness of the national economy], Polskie Wydawnictwo Ekonomiczne, Warszawa 2011.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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42
BARTOSZ JÓŹWIK
the Atlas of Regional Competitiveness – Eurochambers published by the Association of European Chambers of Commerce and Industry.
Describing the European Union regional competitiveness, the European
Commission in the fifth report on economic, social and territorial cohesion
refers to the EU Competitiveness Index developed by the Joint Research
Centre’s Institute for the Protection and Security of the Citizen (IPSC) and
the Commission’s Directorate General for Regional Policy. This index is made
up of 69 variables related to eleven areas called pillars, classified into three
groups19: the first group (basic) covers indicators of key stimuli for each type
of economy: institutions, macroeconomic stability, infrastructure, health and
quality of primary and secondary education; the second group (efficiency)
refers to aspects that become important as the region develops: higher education and lifelong learning, labour market efficiency and size; the third group
(innovation) covers stimuli of advanced regional economies: technological
preparedness, business sophistication and innovation. Each of the eleven pillars enables the evaluation of regional performance in relation to the other EU
regions. Map 3 represents this competitiveness index for the 271 UE regions.
The evaluation of competitiveness of the EU regions in 2010 in the fifth
report on the EU cohesion indicates that Polish eastern voivodships are less
competitive regions. Their low competitiveness is reflected in a low level
of investment attractiveness there, which can significantly hamper their development20. A. Golejewska studied the inflow of foreign direct investments
into Polish voivodships in 1995-2005, i.e. before the economic programmes
subsidised in the present financial perspective and called all of the voivodships of Eastern Poland and actually only them losers21. Therefore, competiCompare: P. Annoni, K. Kozovska, EU Regional Competitiveness Index RCI 2010, European Commission, Joint
Research Centre, Institute for the Protection and Security of the Citizen, Luxemburg 2010, p. 29.
20 This issue was studied in detail in, e.g. P. Opala, B. Osieka, Atrakcyjność województwa lubelskiego [Attractiveness of the lubelskie voivodship] [in:] Uwarunkowania krajowej i międzynarodowej konkurencyjności
województwa lubelskiego [Conditions for the competitiveness of the lubelskie voivodship in Poland and
abroad], eds. P. Ciżkowicz, P. Opala, Ernst&Young, Warszawa 2011, pp. 111-112.
21 A. Golejewska, Rola bezpośrednich inwestycji zagranicznych w kształtowaniu struktury gospodarczej pol­
skich regionów w latach 1995-2005 [Role od indirect foreign investment in shaping the economic structure
19
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
Map 3. EU regional competitiveness in 2010
Source: Prepared by the author based on Investing in Europe’s future. The fifth EU report on the EU economic, social and territorial cohesion, Publications Office of the European Union, Luxemburg 2010, p. 69
tiveness enhancement seems to be reasonably a main objective. Nevertheless,
the Polish Eastern voivodships are unlikely to improve their competitive-
of the Polish regions in 1995-2005] [in:] Spójność ekonomiczno-społeczna regionów Unii Europejskiej. Tom II
Spójność ekonomiczno-społeczna w Polsce [Economic and social cohesion of the EU regions. Volume II Economic and social cohesion in Poland], eds. B. Jóźwik, P. Zalewa, Wydawnictwo KUL, Lublin 2010, p. 32.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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BARTOSZ JÓŹWIK
ness during one programming period so as it could be clearly distinctive
across the European Union or the EU Central and Eastern European Member States. Moreover, the EU subsidised economic priorities that are implemented in the current financial perspective focus chiefly on infrastructure
and transport22, which is a prerequisite though insufficient for competitiveness enhancement.
If the regional economic policy implemented by the local governments
of Eastern Polish voivodships is to be evaluated, experts’ opinions should be
considered. Experts actually point out that the peripheral location of Eastern Poland is not only determined by its inhabitants’ will, resourcefulness
or attitudes but largely by geopolitical aspects23. If such an evaluation is approached in a balanced way, much greater cross-regional support, e.g. by
the government is justifiable. As similar development difficulties are faced
by all regions of Eastern Poland, it definitely means that this problem is regional. A good solution in the 2007-2013 EU financial perspective is the national Development of Eastern Poland Operational Programme.
A key challenge is also how to improve the efficiency of business environment. The increasing complexity of business activity in the single European market requires increasingly skilled, experienced and knowledgeable
regional administration staff who deal with increasingly advanced planning,
organising, coordinating, implementing and monitoring the implementation
of the EU subsidised economic programmes. In the years ahead, the experience of the administration staff can be reliable and beneficial enough given
that a personnel policy in local government administration is correct.
22
The threats due to the allocation of EU funds for infrastructure that can be faced by the least developed regions in the EU Central and Eastern Member States, including the voivodships of Eastern Poland are discussed by: A. Cieślik, B. Rokicki, Cohesion Policy In the EU New Member States, [in:] Polityka
spójności i sąsiedztwa Unii Europejskiej [EU cohesion and neighbourhood policy], eds. B. Jóźwik, M. Sagan, T. Stępniewski, „Rocznik Instytutu Europy Środkowo-Wschodniej”, Year 9 (2011), Issue 4, p. 116.
23 T. Zarycki, op. cit., p. 99.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ECONOMIC GROWTH AND COMPETITIVENESS
Summary
The voivodships of Eastern Poland are the least developed EU regions. The examination here indicates that this fact is chiefly historically based. Less than
0.1% of government industrial investments were granted to the eastern and
northern voivodships according to the communist government policies,
which significantly weakened the development opportunities of eastern Polish voivodships. The regions which had been mostly financially supported
during communism received again most assistance when this system collapsed. The more favourable conditions for the socio-economic development
of the voivodships of Eastern Poland are only in the 2007-2013 European
financial perspective. Regional competitiveness enhancement is the main
priority of the regional economic policy of the five regions of Eastern Poland, which seems to be a reasonable though not doubtful approach. It is reasonable because the low competitiveness of eastern Polish regions means
their poor investment attractiveness, which hampers development there.
The doubts regard both the impact of the economic policy on this investment attractiveness and the methods to measure regional competitiveness
and thus an evaluation of effectiveness and efficiency of measures taken.
This examination on the evolution of GDP per capita indicates that the dynamics of the growth in the voivodships of Eastern Poland is good relative to other EU regions. The medium-term growth rate of GDP per capita
in the eastern voivodships in 2000-2010 was 6.27%, while the average for
all of the European Union NUTS2 regions was 3.47%. The fastest GDP per
capita growth across the eastern voivodships was recorded in świętokrzyskie,
followed by podlaskie, lubelskie, podkarpackie and warmińsko-mazurskie.
Moreover, it should be added that the medium-term growth rate of GDP
per capita in the eastern Polish regions in 2008-2010 was negative, just like
in the other 182 EU regions. However, the decline rate of GDP per capita
in the eastern Polish regions was quite high, i.e. -1.74%, almost twice as high
as the average for the EU regions then, i.e. -0.95%.
Although the regions of Eastern Poland Europe have been significantly
assisted in the current financial perspective to develop their economies, dis-
EASTERN POL AND. DEVELOPMENT CHALLENGES
45
46
BARTOSZ JÓŹWIK
parities between these and the other Polish regions are still growing. The phenomenon of increasing dispersion can be noticed in many EU Member States.
The disparities in regional development in Poland are similar to the EU average of 2.4% so this phenomenon can be regarded as similar to the one
in the European Union. It should be stressed, however, that the standard deviation of GDP per capita in Polish regions increased five times in 1995-2010.
At that time, the regions of Eastern Poland steadily became relatively poorer
in comparison to the remaining Polish regions. The decisions about the financial allocation in the forthcoming financial perspective for 2014-2020 will
be critical to reduce development disparities between the regions of Eastern
Poland and the other EU regions. However, the uncertainty about the appropriate fund allocation is even greater now due to the attempt to change
the European cohesion policy from a policy that chiefly supports the poorest Member States to a policy that supports development and growth in all
Member States24.
24
M. Sapała, Polityka spójności w Wieloletnich Ramach Finansowych Unii Europejskiej 2014-2020. Zmiana i kontynuacja [Cohesion Policy in the 2014-2020 EU Long-Term Financial Framework. Change and Continuation] [in:]
Polityka spójności i sąsiedztwa Unii Europejskiej [Policy of EU cohesion and neighbourhood], eds. B. Jóźwik, M. Sagan, T. Stępniewski, „Rocznik Instytutu Europy Środkowo-Wschodniej”, Year 9 (2011), Issue 4, p. 17.
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
JOANNA SZAFRAN
Cohesion policy
Historically, the voivodships of Eastern Poland, i.e. lubelskie, podkarpackie,
podlaskie, świetokrzyskie and warmińsko-mazurskie were poorly urbanized, industrialized, infrastructurally developed and undercapitalized and
thus less socially and economically developed relative to the rest of Poland.
The transformation has brought new challenges and phenomena that considerably have impacted on a regional structure1. Accordingly, the social and
economic development and regional competitiveness was reevaluated and
regional disparities deepened. Many researchers point out that the processes
of internationalization and structural change in CEE tend to favor metro-
1
Compare Raport OECD: Regional development problems and policies in Poland. Organisation for Economic
Co-operation and Development: Centre for Co-operation with the European Economies in Transition, Paris,
c1992; Prace Instytutu Badań nad Gospodarką Regionalną.
48
JOANNA SZAFRAN
politan and western regions, as well as regions with strong industrial base2.
Actually, poorly developed agriculture with small farms dominates in the developmentally lagged eastern regions of Poland or the problem of no alternative employment due to liquidated large state-owned farms is faced by
the areas of Warmia and Mazury. Moreover, these insufficiently urbanised
regions have poorly developed service and private sectors, infrastructures,
business environments, insufficiently educated and trained population, hidden unemployment, and thus suffer from immigration, especially of young
people, and least foreign investment. Also, the political transformation and
economic crisis beyond the eastern Polish border limited export opportunities and economic cooperation. Western regions in CEE countries sharing
common borders with EU countries will experience a faster and more successful adaptation to the new economic conditions than the eastern regions3.
In the 1990s, the Polish regional policy was subordinated to macroeconomic purposes and focused on reducing the adverse effects of the transformation, in particular the growing unemployment. Entered into force in 1999,
the territorial and administration reform of the country was an important
challenge for voivodships as it introduced a three-level model, i.e. gmina –
powiat – województwo [commune – district – voivodship]. The 49 small and
dependent voivodships were replaced by 16 large voivodships with their local
authorities elected. Also, decentralization referred to public finance (voivodships received specific sources of their own income and were responsible
for their financial policies) and the way their development is programmed
(adopting their regional development strategies).
Agenda 2000 and the accession negotiations on ​​regional policy (in 2000)
triggered the process of adapting law, institutions and instruments to ful-
2
3
G. Petrakos, Patterns of regional inequality in transition economies, “European Planning Studies” 2001, Vol.
9, No 3, p. 360.; G. Petrakos, G. Maier, G. Gorzelak (Eds.), Integration and transition in Europe: the economic
geography of integration, Routledge, London 2000, pp. 131-149.
G. Petrakos, Patterns of regional inequality..., p. 364; E. Ehrlich, L. Faltan, G. Gorzelak, M. Ihner (eds.), Central
Europe in transition: toward EU membership, Scholar Publishing House, Warsaw 2001.
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
ly participate in the EU’s regional policy. Accordingly, the activities to join
the EU obliged the authorities to implement a new model of regional policy4.
Could possibly the disturbing fact of belonging to the so-called Poland
B or Eastern Wall prevent these regions from seizing the opportunity offered by the European Union’s Cohesion Policy to accelerate their development? Are they active participants in the programming and implementing
of the European Union’s Cohesion Policy? Finding the answers to these questions is the aim of the considerations here, which comes from the experience gained in the first (2004-2006) and second (2007-2013) period of Polish
membership in the European Union, as well as on the basis of the findings
and official positions in the debate on the future of cohesion policy after 2013.
1. Voivodships of Eastern Poland
as the poorest EU regions in 2004-2006
When Poland joined the European Union (EU) in 2004, the entire country
was qualified under Objective 1 as a less developed area because its GDP
per capita for all of its regions (corresponding to NUTS 2) was below 75%
of the EU average. Table 1 shows the changes in regional GPD per capita,
compared to an EU average of 25 and 27 member states.
Table 1. Regional gross domestic product (PPS) per capita in % of the EU-25
and 27 average by NUTS 2 regions, 2000-2009
20002002a
2003
Mazowieckie
71.3
72.8
Dolnośląskie
47.7
Śląskie
Wielkopolskie
Voivodships
2004
2005
2006
2007
77
81
83
87
89
97
48.2
51
53
55
59
61
66
50.1
51.2
57
55
55
58
61
65
48.9
49.3
54
55
55
57
59
65
EU-25 = 100
4
2008
2009
EU-27=100
P. Churski, Problem areas in Poland in terms of the Objectives of the European Union’s Regional Policy, “European Planning Studies” 2005, Vol. 13, No 1, p. 56.
EASTERN POL AND. DEVELOPMENT CHALLENGES
49
50
JOANNA SZAFRAN
20002002a
2003
Pomorskie
45.9
46.3
Łódzkie
41.2
Zachodniopomorskie
2005
2006
2007
49
50
51
54
53
59
43.4
47
47
48
50
52
55
46.3
44.6
47
48
47
49
51
53
Małopolskie
39.7
40.4
43
44
45
47
49
52
Lubuskie
42.0
40.6
45
46
46
48
48
52
Kujawsko-pomorskie
42.4
42.1
45
45
45
47
49
51
Opolskie
38.2
37.3
43
43
42
45
48
50
Świętokrzyskie
35.5
36.7
39
38
39
42
45
47
WarmińskoMazurskie
35.6
37.0
39
39
39
40
42
45
Podlaskie
35.6
35.7
38
38
38
40
41
45
Podkarpackie
32.5
33.2
35
35
35
37
39
42
Lubelskie
32.7
33.2
35
35
35
37
39
41
Poland
46.4
47.0
51
51
52
54
56
61
Voivodships
2004
EU-25 = 100
2008
2009
EU-27=100
Explanation: a – the average for the years studied
Source: EUROSTAT & Gross Domestic Product Regional Account in 2010, Central Statistical Office, Statistical Office in Katowice, Katowice 2012, p. 26.
Table 1 shows significant differences in the level of economic development
between Polish regions. At the beginning of the Polish accession to the EU,
the GDP per capita in the richest mazowieckie voivodship reached almost
73% of the EU average, whereas it was less than 40% of the EU average
in the voivodships of Eastern Poland, which qualified them as the poorest regions in the EU-25. Regarding the so-called statistical effect caused by
the enlargement of the Union in 2007 by further poorer countries of Central Europe, it is clear that the mazowieckie voivodship reached already 89%
of the EU average in 2008. This voivodship is, therefore, an undisputed leader
of growth and can reduce its development gap quickly as compared to the EU
average, i.e. 20 percentage points in 2004-2009. The level of regional GPD
per capita in Eastern Poland is still low as compared to the EU average, e.g.
from 41% in the lubelskie voivodship to 47% in the świętokrzyskie voivod-
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
ship. Also, the processes of convergence are slower there. However, this group
shows some differences and positive changes. The świętokrzyskie voivodship
belongs to the voivodships where the level of convergence is fairly similar
to the national average and the other voivodships, i.e. 8 percentage points
in 2004-2009. GDP per capita in the comparable period changed slowly,
i.e. 6 percentage points in the following voivodships: lubelskie, warmińskomazurskie, kujawsko-pomorskie, and zachodniopomorskie.
In the first period of Poland’s EU membership, the allocation for Poland
totaled Euro12.8 billion from the EU’s budget. The EU’s financial contribution to implement the operational programmes and Community Initiatives
for 2004-2006 amounted to approximately Euro 8.6 billion, which is PLN
35.6 billion and represents 101.3% of the allocation of structural funds5.
The highest share in implementing the structural policy in Poland in 20042006 belonged to the European Regional Development Fund (ERDF),
concentrating 60% of the funds, the European Social Fund (ESF) – 24%
of the funds, the European Agricultural Guidance and Guarantee FundGuidance Section (EAGGF) – 14%, and the Financial Instrument for Fisheries Guidance (FIFG) – 2%. The Cohesion Fund functioned until the end
of 2006 under separate laws and rules6. The financing of Polish large infrastructural environmental and transport projects within this Fund and ISPA
amounted to nearly Euro 5.64 billion in 2000-20067.
5
6
7
Zamknięcie pomocy na lata 2004-2006, Ministerstwo Rozwoju Regionalnego, Komitet Monitorujący Narodowy
Plan Rozwoju/Podstawy Wsparcia Wspólnoty, Warszawa, czerwiec 2011 r. [Closing the 2004-2006 Assistance,
Ministry of Regional Development, Monitoring Committee for the National Development Plan/ Community Support Framework, Warsaw, June 2011.
Council Regulation (EC) No 1264/1999 of 21 June 1999 amending Regulation (EC) No 1164/94 establishing
a Cohesion Fund, OJ L 161 26.06.1999.
Projects submitted to ISPA, a pre-accession programme, were taken over and continued by the Cohesion
Fund on the day of accession, i.e. 1st May 2004.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JOANNA SZAFRAN
Figure 1. Subsidies granted to voivodships with the participation
of EU funds in 2004-2006 (in million PLN)
Source: Ministry of Regional Development “Map of the EU grants” (30 July 2011)
As seen, the regional distribution of the EU assistance received in 20042006 indicates that the most considerable amount, i.e. 45% was assigned
to the four richest voivodships: mazowieckie, śląskie, dolnośląskie and
wielkopolskie. Unfortunately, less than 17% of the total of the EU aid was
granted to the five poorest voivodships of Eastern Poland.
The financial assistance from the Structural Funds was allocated then
to implement the Community Support Framework (CSF), the National Development Plan (NDP), the seven operational programmes (OPs), and two
programmes of the Community Initiatives (CI): INTERREG III and EQUAL8,
whereas the financial assistance from the Cohesion Fund was granted within
The Strategy for Assistance from the Cohesion Fund.
The Community Support Framework was then the key document to implement the Cohesion Policy. It broadly dealt with regional and spatial is8
Other initiatives, i.e. URBAN II and LEADER+ were not undertaken in Poland and the other countries of the 10EU new member states.
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
sues, identified varied areas that required financial assistance and presented
the operational programmes and their funding in detail. The operating systems of CSF and NDP consisted of:
• one integrated regional operational programme known as the Integrated Regional Operational Programme for Regional Development (abbreviated in Polish as ZPORR)
• five sectoral operational programmes such as Increase of Economic
Competitiveness (SPO WKP); Transport (SPO Transport); Human Resource
Development (SPO RZL); Agriculture (SPO Rolnictwo) to restructure and
retrofit the food sector and develop rural areas; Fisheries (SPO Rybołówstwo)
to deal with fisheries and fish processing,
• a technical assistance programme (PO PT).
Figure 2. Value of funding under the Operational Programmes
in 2004-2006 by voivodship (in million PLN)
Source: Ministry of Regional Development “Map of the EU grants” (30 June 2011)
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JOANNA SZAFRAN
In this period, half of the regions depended on the Integrated Regional Development Operational Programme as the main programme to receive the EU
funding. Also, this programme was the main and sole operational programme
to implement the national administration policy with the EU funding. However, only about one third of the total allocation under the Community Support Framework was allocated to implement it. The following four priorities
were implemented under the Integrated Regional Development Operational
Programme:
I. Infrastructural development and retrofit to enhance regional competitiveness;
II. Regional human resources development;
III.Local development;
IV.Technical assistance.
The first and third priorities concerned largely infrastructural projects
financed by about 75% of the total funds of this programme. Less than 5%
of the funding were allocated for regional entrepreneurship and the development of a modern economy. Accordingly, the Integrated Regional
Development Operational Programme focused more on the development
of basic infrastructure and improvement of living conditions rather than
strengthening the competitiveness of regional economies, which was to be
its strategic goal9. Although the allocation algorithm was applied to distribute the Integrated Regional Development Operational Programme and include the level of regional development, the majority of funds, i.e. almost
40% was allocated in the four more developed voivodships: mazowieckie,
śląskie, dolnośląskie and pomorskie. The another group of regions that has
acquired from PLN 1.8 to 1 billion included, e.g. lubelskie, podkarpackie
and warmińsko-mazurskie. However, the voivodships of świętokrzyskie
and podlaskie belonged to the group of the least funded regions, i.e. less
than PLN 1 billion.
9
J. Szafran, Implementacja unijnej polityki regionalnej w Polsce [Implementing the EU Regional Policy in Poland], Wydawnictwo UMCS, Lublin 2010, p. 82.
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
The most of the structural funds was allocated in 2004-2006 to implement the sectoral operational programmes. Higher shares of the funding
within the sectoral programmes were in the following regions: SPO Transport
in the mazowieckie and łódzkie voivodships, SPO WKP – in the voivodships
of mazowieckie, śląskie, wielkopolskie and zachodniopomorskie and SPO
Rolnictwo – the wielkopolskie and podlaskie voivodships. If the total pool
of the EU funds allocated to the voivodships to finance their sectoral projects is compared, one can notice the advantage of the mazowieckie, śląskie,
wielkopolskie and łódzkie voivodships. The least financial assistance was allocated in the voivodships of opolskie and lubuskie as well as świętokrzyskie,
podkarpackie and podlaskie. A higher share of the funding from SPO Rolnictwo was reported in the eastern voivodships, except podkarpackie, as compared to the other Polish regions. This fact results from the highest share
of the agricultural sector in the gross value added. For example, the share
of this programme in the podlaskie voivodship accounted for almost 40%
of EU funding in this period. This assistance focused primarily on retrofitting farms, adapting the agri-food sector and supporting young farmers10.
The funding for direct assistance for enterprises is similar to the national
average in the podkarpackie, świętokrzyskie and lubelskie voivodships and
was allocated basically for investment in real capital and access to external
financing. However, relatively significant assistance for large enterprises was
reported in these regions (besides łódzkie and opolskie). The voivodships
of Eastern Poland, except the podlaskie voivodship, do not resolve the other
regions in raising funds to develop human resources within SPO RZL. Moreover, they show a significant share of expenditure on social infrastructure
and health protection, i.e. from 9% in świętokrzyskie to 3.6% in warmińskomazurskie related to about 2.5% of the national average)11. The eastern regions
spent two thirds of their funding for infrastructural projects on telecommu-
10
11
Doświadczenia i szanse regionów [Experience of regions and their opportunities], „Przegląd regionalny”
No. 2, Ministerstwo Rozwoju Regionalnego, Warszawa, September 2008, p. 11.
Ibidem, p. 23.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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nication and information society; whereas the other regions largely invested
the EU funds in R&D, including R&D infrastructure12.
The voivodships of Eastern Poland also received the least considerable aid from the Cohesion Fund which just as the European Regional Development Fund was the main source of assistance in most voivodships13.
The funds from the Cohesion Fund, including the ISPA Programme were
allocated to 130 projects, including 111 investment projects, 2 horizontal assistance projects, and technical assistance projects. The transport sector
was dominated by projects on road and highway construction (almost 50%
of the allocation of the Fund), railway line modernisation (37%) and national road modernisation (10%). 94% of the Fund was allocated for water
and sewage management which dominated the assistance in the environmental sector. Such a sectoral structure of funding from the Cohesion Fund
is reflected in the territorial distribution of assistance14. The highest number
of co-financed projects was recorded in the following voivodships: śląskie,
mazowieckie, dolnośląskie, wielkopolskie and małopolskie with the best
developed though requiring retrofitting transport infrastructure in Poland.
The same regions, except the last one also received the largest amount of assistance. However, the least financial aid was granted to the regions with the least
developed infrastructure: lubelskie, podlaskie, warmińsko-mazurskie and
świętokrzyskie.The voivodeships of Eastern Poland differ in their activity
in obtaining EU’s subsidies, e.g. lubelskie voivodeship ranked between mazowieckie and wielkopolskie in terms of the number of subsidised projects
(8,796 as for the end of June 2011). On the other hand, the value of grants
granted to the lubelskie voivodeship was more than PLN 4 billion. Slightly
12
Ibidem, p. 12.
By the end of 2011, the European Commission transferred about Euro 4.8 billion, i.e. more than 85%
of the available allocation. The period of eligibility for the Cohesion Fund was in force until the end
of 2010 but the deadline for eligibility for the projects financed by the Fund was extended until 2012 due
to the crisis and flooding that affected some of these projects. The data are based on the monthly information by the Ministry of Regional Development: The use of EU funds within the Cohesion Fund Strategy
2004-2006 and the National Strategic Reference Framework 2007-2013, Warszawa, January 2012, p. 2.
14 The regional data do not refer to the 14 projects implemented in the area larger than a single voivodship.
13
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
lower amounts of assistance, i.e. PLN 3.88 billion and 3.58 billion were acquired by the voivodships of warmińsko-mazurskie and podkarpackie, respectively. The smallest amount of aid was granted to the podlaskie and
świętokrzyskie voivodships, i.e. approximately PLN 2.7 billion and 2.6 billion, respectively but they were ranked ahead of the voivodships of lubuskie and opolskie where the subsidy in the latter amounted to less than PLN
2 billion. At the same time, the świętokrzyskie, podlaskie and warmińskomazurskie voivodships had one of the highest shares of equity in the subsidised projects, i.e. about 50%15. However, the amount of own funds generated
by the regions in financial engineering in terms of the number of their inhabitants looks slightly different. The least of own funds per inhabitant was
generated by the voivodships of małopolskie, podkarpackie, świętokrzyskie,
lubelskie and podlaskie, i.e. below PLN 1,100 while the national average was
PLN 1,516.75, which would reinforce the idea that poorer regions cannot
so easily raise funds to fulfill the principle of additionality.
To sum up, sectoral policies were dominant over regional policies
in the first period of Polish membership in the EU and thus priorities to develop the country were prevailing over specific ones and those of poorer
regions. The amount of assistance granted to individual regions was determined by the amount of funding from the Cohesion Fund and then followed by the Integrated Regional Development Operational Programme.
This means that the richest regions received most funds as they were implementing large infrastructural projects on transport and environmental protection. These developmental disparities were not wiped out in such a short
time by a regional programme that was actually centralised. The priorities
of the Integrated Regional Development Operational Programme were arbitrarily imposed to all voivodeships regardless of the disparities between
them. The appropriate department in the Ministry of Economy, Labour
and Social Policy and then in the Ministry of Regional Development served
15
Doświadczenia i szanse regionów [Experience of regions and their opportunities], „Przegląd regionalny”
No. 2, Ministry of Regional Development, Warszawa, September 2008, p. 8.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JOANNA SZAFRAN
the main function of the management process as a managing institution
of the Integrated Regional Development Operational Programme whereas
regional offices, or government agencies in regions functioned as intermediary institutions. The role of regional governments was limited so that they
functioned as the so-called units involved in managing regional component
and a steering committee. Accordingly, their participation in both the programming and management of the Integrated Regional Development Operational Programme became marginal. Also, a too large group of institutions
that managed this programme was criticized as this solution delayed the selection and implementation of projects16.
2. Participation of voivodships of Eastern Poland
in the 2007-2013 Cohesion Policy
The reform of Cohesion Policy for 2007-2013 amended its objectives, policies and funding instruments that operated under new legal acts. The Convergence objective which actually continued Objective 1 regarded the whole
of Poland. In addition, the programmes implemented under INTERREG III
Initiative were taken over by a new objective known as European Territorial
Cooperation (ETC). It served the strengthening of cross-border, transnational and interregional cooperation by promoting joint ventures by local
governments in various countries to develop their urban, rural and coastal
areas, develop economic relations and to create the networking of small and
medium-sized enterprises (SMEs). However, the Community Initiatives are
not currently continued.
16
Compare, e.g. T. Parteka, Warunki programowania i realizacji rozwoju regionalnego przez województwa
samorządowe po roku 2006 [Conditions to programme and implement regional development by self-governing voivodships], [in:] Polska wobec nowej polityki spójności Unii Europejskiej [Poland and the EU New
Cohesion Policy]. ed. T G. Grosse. ISP. Warsaw 2004, pp. 277-278; T. G. Grosse, Analiza zagrożeń korupcyjnych
w systemie zarządzania ZPORR 2004-2006 [Analysis of the corruption risks in the managing system for IRDOP 2004-2006], „Studia Regionalne i Lokalne” 2006, no 4, p. 19 and following.
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
Remaining a priority for the Structural Funds and the Cohesion Fund,
the objective of Convergence concentrates more than 80% of their financial
resources. However, the number of structural funds has been reduced from
four to two only, i.e. the European Regional Development Fund and European Social Fund. The regional distribution of the assistance from ERDF
and ESF and the Cohesion Fund is depicted in Chart 3.
Chart 3. Subsidies from EU funds that were granted to voivodships in 2007-2013
as for 31 January 2013 (in milion PLN)
Source: Ministry of Regional Development “Map of the EU grants” (31 January 2013)
The most significant aid from the Structural Funds and the Cohesion Fund
(more than one third) was granted again to the richest and more developed
voivodships like mazowieckie, śląskie, and małopolskie. It is worth pointing
out that the value of the subsidy for projects implemented in the mazowieckie voivodship was twice as high (PLN 61.8 billion) as in the małopolskie
voivodship (PLN 30.5 billion). Another group of voivodeships with the grants
ranging from PLN 20.7 billion to 28.8 billion is opened by the podkarpackie voivodship which ranks before the voivodships of śląskie, łódzkie and
wielkopolskie and finally the lubelskie voivodship. However, the least subsidy,
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JOANNA SZAFRAN
i.e. ranged from PLN 8.2 billion to 13 billion was granted to the voivodships
of opolskie, lubuskie, podlaskie and świętokrzyskie. The five voivodships
of Eastern Poland received in total just over 24% of the 2007-2013 EU funds.
The growing share of these regions in obtaining the EU assistance is due
to launching for them a separate operational programme known as Development of Eastern Poland and using the allocation from the Regional Operational Programmes.
The entire allocation of the Cohesion Fund for Poland, i.e. Euro 22.18 billion with the funding from the ERDF, i.e. Euro 5.76 billion and national
funds, i.e. Euro 9.7 billion has been allocated to implement the Operational
Programme Infrastructure and Environment (OP IE) which is the greatest
programme recognised in the EU. It aims at “improving the investment attractiveness of Poland and its regions by developing technological infrastructure while protecting and improving the environment, health, preserving
cultural identity and developing territorial cohesion”17. Under the OP IE, there
are conducted large infrastructural projects on transport with 71% of the resources allocated, the environment – 17%, energy – 6%, higher education,
culture and national heritage – about 2% for each and health care – 1% as well
as projects on technical assistance. The sectoral structure of the funding has
determined the territorial allocation within this programme. The lowest
value of the proposed project funding within the OP IE has been reported in the voivodships of opolskie, podlaskie and świętokrzyskie, i.e. from
PLN 2.0 billion to PLN 3.2 billion since the programme was launched.
The number and value of projects submitted by the voivodships of lubelskie (PLN 5.7 billion) and warmińsko-mazurskie (PLN 7.2 billion) has significantly increased. The podkarpacie voivodship ranked immediately after
the voivodships of mazowieckie, śląskie and małopolskie which remain
leaders in implementing major transport and environmental projects. OP
IE will be continued in 2014-2020, focusing on the low-carbon economy,
17
Operational Programme Infrastructure and Environment. National Strategic Reference Framework 20072013. Version 2.0, approved by the European Commission Decision K(2011) 5563, 3.08.2011, p. 88.
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
environmental protection, prevention of and adaptation to climate change,
transport and energy security. The program budget (over Euro 27.5 billion)
will come from the total allocation of the Cohesion Fund and partly form
the ERDF (and cross financing ESF).
Worth about Euro 11.5 billion, the Human Capital Operational Programme 2007-2013 is another programme in terms of contribution for
which the entire allocation of ESF in Poland, i.e. Euro 9.7 billion was spent,
which is an unrecognisable contribution in the EU. This programme set six
national-level and four regional-level priorities to be implemented. Regionally, the majority of subsidies was granted to the most populous voivodeships like mazowieckie, śląskie, wielkopolskie, małopolskie and dolnośląskie
as well as lubelskie and podkarpackie, i.e. more than PLN 2 billion. A slightly smaller allocation was for the voivodships of warmińsko-mazurskie and
świętokrzyskie. However, the lubuskie, opolskie and podlaskie voivodships
have got the lowest share in the programme, i.e. less than PLN 1 billion.
The available allocation in this programme for 2007-2013 was contracted
most by the voivodships of łódzkie and małopolskie, i.e. 82% and 77%, respectively and least, i.e. below 67% by the voivodships of wielkopolskie, opolskie and warmińsko-mazurskie. Other Eastern voivodships contracted from
69% to 73% of the allocation18. It is worth mentioning that these regions have
generated their own contributions for the Human Capital Operational Programme as highest per inhabitant, i.e. from PLN 768.2 in podlaskie to PLN
937.2 in świętokrzyskie. This programme will also continue after 2013 under
the name Knowledge, Education and Development. In addition to the development of competencies and skills it will focus on social inclusion and
good governance, with around Euro 4.4 billion from the ESF (and the ERDF
cross financing).
18
The data for the end of June 2012 based on „Sprawozdanie z realizacji PO KL za I półrocze 2012 r.” [Report on
the implementation of the Human Capital OP for the first six months of 2012], Ministry of Regional Development, Warszawa 2012, p. 7.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JOANNA SZAFRAN
The ERDF financial resources of approximately Euro 33.7 billion were
distributed in 2007-2013 among 4 national programmes like Infrastructure
and Environment – OPIaE, Innovative Economy – OPIE, Development
of Eastern Poland – DEP and Technical Assistance – PT and 16 regional
programmes for each voivodship and 13 programmes within the European
Territorial Cooperation. The territorial distribution of the ERDF assistance
of selected operational programmes is depicted in Chart 5.
Chart 4. Subsidy from the ERDF resources granted to the voivodships
within IE OP, DEP OP and ROP in 2007-2013 (in mln PLN)
Source: Ministry of Regional Development “Map of the EU grants” (30 January 2013)
About Euro 8.25 billion, including the measures of the national budget
in the amount of Euro 1.46 billion out of the total ERDF envelope was allocated to implement the Innovative Economy OP that best fits the priorities
of the Lisbon Strategy. Its main objective is to develop the Polish economy
based on innovative enterprises, which results in the enhancement of competitiveness and innovation and mutual cooperation between enterprises
and business institutions, R&D centers, and public administration. An unquestionable leader in terms of funds acquired from the IE OP is the ma-
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
zowieckie voivodship with more than 17% of the contracted funds, while
the five Eastern voivodships managed to contract a total of just over 14%
of the funds. The most of the OP IE funds was contracted by the podkarpackie voivodship, i.e. over PLN 3.4 billion and then the lubelskie and podlaskie voivodships. However, the voivodships of warmińsko-mazurskie and
świętokrzyskie just like zachodniopomorskie can be called outsiders for their
less than PLN 1 billion. In addition, the podkarpackie voivodship submitted most projects per 1,000 enterprises, which made it ahead of the regions
with the highest number of registered enterprises like the mazowieckie,
małoposkie and wielkopolskie voivodships. However, the lubelskie voivodship ranks at the forefront in terms of the average value of contracts for financing. At the end of 2012, within the Innovative Economy Operational
Programme all voivodships were dominated by projects on the information
society (Priority Axis 8), the promotion of the economy on international
markets (Priority Axis 6), innovation and entrepreneurship (Priority Axis 4)
and research and technological development (Priority Axis 1)19.
In the new programming period such fields as research, technology development and innovation, entrepreneurship (especially SMEs) will be supported under the Operational Program Intelligent Development (which provides
Euro 8,6 billion from ERDF). In turn, the development and dissemination
of digital technology, broadband Internet access, e-government services will
be devoted to Operational Program Digital Poland (Euro 2,25 billion allocation from ERDF).
These areas just like transport, social infrastructure and environmental
protection and risk prevention were prevailing priorities of the regional operational programs 2007-2013, e.g. in terms of the value of signed contracts.
A total of about Euro 16.5 billion from the ERDF and the national budget and
local government budgets was booked for the regional programmes in our
voivodship. These programmes have a special role in planning the develop19
Sprawozdanie okresowe z realizacji PO IG 2007-2013 [Periodic report on the implementation of OP Innovative Economy 2007-2013], Ministry of Regional Development, Warszawa 2012.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ment of various regions and the integration of their priorities in the development strategies of the European Union. At the end of 2012 under the regional
operational programme, 55,274 applications for the EU funding were submitted for a total amount of PLN 110 million, and nearly 60% of the applications
was approved and for more than 50% of the applications were contracted or
decided to be financed. In the seven voivodships, including podkarpackie
the value of contracts in relation to the available ROP allocation was above
the average of 85.1% at the end of 2012. The remaining voivodships of Eastern Poland failed to exceed the average, and the voivodships of lubelskie and
kujawsko-pomorskie reported the lowest level of absorption of the available
allocation. The voivodships of Eastern Poland differ in terms of the ROP priorities and the structure of their funding, which is related to their individual
problems as well as the established lines of development. For example, the podlaskie and warmińsko-mazurskie voivodships allocated more funds for tourism and culture as a third priority in their regional programmes as to the value
of the reserved allocation. On the other hand, the voivodships of podkarpacie, lubelskie and świętokrzyskie planned to allocate about 15% of the ROP
on environmental protection and risk prevention, and clean energy.
In 2014-2020 mazowieckie voivodship will be eligible for the more developed areas, while the remaining voivodships will continue to be less developed areas. In the fifteen voivodships included in the less developed regions
will implement regional programs (ROPs), which planned increase (from 37%
to 60%) in spending of structural funds, with both the ERDF and the ESF.
The planned share of the five eastern voivodships represents of over Euro
8.5 billion (30%) of the allocation of European Funds in ROPs.
An additional element in the EU’s support for the five regions of Eastern
Poland is the Development of Eastern Poland Operational Programme (DEP
OP) which should accelerate the socio-economic development in line with
the principle of sustainable development. Its priorities focus on20:
20
Program Operacyjny Rozwój Polski Wschodniej 2007-2013, NSRO 2007-2013 [Operational Programme Development of Eastern Poland 2007-2013, NSRF 2007-2013], approved the European Commission Decision K
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
ƒƒ
ƒƒ
ƒƒ
ƒƒ
stimulating the development of modern knowledge-based economy;
increasing wide-band Internet access;
developing the selected functions of metropolitan regional capitals;
improving the access to and quality of a transport network between
these voivodships, especially by developing road infrastructure;
ƒƒ increasing the role of sustainable tourism.
To implement the Development of Eastern Poland Operational Programme, a total of Euro 2.67 billion, including Euro 2.27 billion from
the ERDF and some additional support granted by the European Council
for the poorest regions in the EU-25 and Euro 401.3 million of national public
funds. The algorithm for allocating those funds among the five voivodships
of Eastern Poland refers to, e.g. the level of their development and a funding
source21. 181 grant contracts worth PLN 7.53 billion were signed at the end
of September 2012 within the DEP, OP which enabled the contracting of two
thirds of the 2007-2013 subsidies22. The lubelskie and podkarpackie voivodships have been reported to submit the highest number and value of subsidised projects, i.e. their share in the total amount of funding reached 23% and
22%, respectively, whereas the świętokrzyskie voivodship submitted the least
of projects and warmińsko-mazurskie acquired the least funds. Moreover,
around 30 projects are trans-voivodship. This structure of funding within
the DEP OP is dominated by projects on education and science (over 40%)
and transport (35%), followed by enterprise (10%). The greatest beneficiaries
of this programme are already universities and communes and then government authorities, enterprises and regional governments.
(2009) 5712, 1.10.2009, p. 65.
The highest ERDF funding was planned for the voivodships of lubelskie – Euro 508.57 mln and podkarpackie – Euro 487.48 mln; and then for the voivodships of: warmińsko-mazurskie – Euro 447.37 mln, podlaskie – 386.86 and świętokrzyskie – 375,30 mln Euro.
22 The data from Kwartalne informacje z realizacji Programu Rozwój Polski Wschodniej [Quarterly data on the implementation of the Development of Eastern Poland Operational Programme] for 2012 and Dla Rozwoju
Polski Wschodniej. POKL 2007-2013 w liczbach [Developing Eastern Poland. HC OP 2007-2013 in figures], Ministry of Regional Development 2011.
21
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JOANNA SZAFRAN
In effect, it is reasonable to create future programs to be targeting the poorest voivodships, which are included in the Key Areas of Strategic Intervention in the National Strategy of Regional Development 2010-2020 (adopted by
the Council of Ministers on 13 July 2010) and it will enable the implementation of the Strategy of socio-economic development of Polish Eastern 2020.
Operational Program in Eastern Poland 2014-2020 will cover the same five
voivodships and will continue to be managed by Ministry of Infrastructure
and Development, and the main source of its co-financing remains ERDF
(slightly more than Euro 2 billion).
The regions of Eastern Poland are also active in the European Territorial Cooperation programmes devoted to cross-border, transnational and
interregional cooperation. Besides the two transnational programmes such
as the 2007-2013 Baltic Sea Region programme and Central Europe programme which cover the entire area of Poland, some sub-regions and regional institutions in the Polish eastern voivodships participate in the two
cross-border cooperation programmes and five inter-regional cooperation
programmes. The municipal district of Rzeszów and sub-region (NUTS 3)
of Krosno-Przemyśl are both participants and managing parties in the 20072013 cross-border cooperation programme of the Republic of Poland – Slovak
Republic. On the other hand, the sub-regions (NUTS 3) of Białystok-Suwałki
and Ełk manage cross-border cooperation in the Poland-Lithuania programme. Additionally, the sub-region of Elbląg receives assistance as an area
adjacent to the core area that is covered by the South Baltic programme23.
However, very few Polish regions could benefit by far from the joint initiatives of the European Commission and the European Investment Bank
and other financial institutions that have been set up since 2007 to provide
return financial support such as Jeremie, Jessica or Jasmine or substantive like Jasmine, Jaspers in selected areas. The regions of Eastern Poland
participated only in the assistance from the Jaspers initiatives that funded
237 projects in Poland, including large transport projects, e.g. expansion and
23
Pursuant to Art. 21 of Regulation No 1080/2006.
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
retrofit of the road network, construction and expansion of airports in Lublin, Olsztyn and Rzeszów or trolleybus traction in Lublin, etc.; energy projects, e.g. an electricity distribution network in the lubelskie voivodship;
water, sewage and waste projects, e.g. municipal waste management system
in Białystok; cultural projects, e.g. construction of the European Centre for
the Arts in Białystok; and preparation the broadband Internet project within
the Development of Eastern Poland OP24. Strong interest in professional assistance in preparing complex and large projects corresponds to the enormous
need of those regions to construct, extend and retrofit their technical infrastructure by means of the EU funds. However, they do not undertake other
initiatives to promote innovative financial engineering solutions and those
based on return funding that gradually are replacing non-repayable grants.
Summary
The experience gained in the first and current programming periods indicates that the EU funds available within particular programmes to a greater
extent are absorbed by the richest voivodships, which would, in fact, result in increasingly deep disparities. However, the voivodships of Eastern
Poland are as efficient as leaders in absorbing funds available to them, e.g.
to compare the ratio of the value of submitted projects and signed contracts
for the intended allocation, and even they are capable of generating higher
own contribution per capita for structural funds than the other voivodships.
The voivodships of Eastern Poland are participating in all national programmes, pursuing their own regional programmes and the territorial cooperation programmes financed by the Cohesion Policy 2007-2013. However,
they received technical expert assistance within Jaspers only which is a programme within the joint initiatives of the Commission and the EIB.
The trends in the investment of the EU funds indicate that large share
of projects on R&D and innovation, information society, and human capi24
Website: http://www.jaspers-europa-info.org/index.php/poland.html
EASTERN POL AND. DEVELOPMENT CHALLENGES
67
68
JOANNA SZAFRAN
tal is a positive result and can benefit to the availability, competitiveness and
innovation of enterprises in each region and of the entire region. In the first
and current programming period, the voivodships of Eastern Poland stand
out thanks to a higher value of contracts for human resources, infrastructure, health and social services. Moreover, they have pursued their own
development priorities by investing in tourism, culture, environment and
risk prevention. This group of voivodships, however, is differentiated for
the number of submitted projects and the amount of received funding from
various programmes (the podkarpackie voivodship is coping much better
in the current period, whereas the podlaskie voivodship is remaining “behind”). The lower absorption capacity of these regions may be due to deficiencies in their economic bases, staff education and research centers, and
institutional environment that supports modern sectors of their economies.
In 2004-2015, the Polish Eastern regions should receive the largest support per inhabitant, which according to macroeconomic models (Hermin,
Mamor3, EuImpact) would speed up their growth and structural changes25.
Actually, the positive results of the EU assistance can be noticed today
as in 2008 as many as the three voivodships of Eastern Poland, e.g. podkarpackie, lubelskie and świętokrzyskie were among the leaders in economic
growth (around 7%) and GDP per capita. These regions also recorded rapid growth in the service sector, while the podlaskie voivodship in industry,
which means a decline of agricultural in their economic structure.
In the new financial perspective eastern regions will be the beneficiaries
of the programmes to be implemented at the national level include: European
Territorial Cooperation (financed under ERDF), 6 operational programmes
(financed under Structural Funds and Cohesion Fund), the operational programme for rural development (European Agricultural Fund for Rural Development), the operational programme for the development of marine and
25
Wpływ funduszy europejskich na gospodarkę polskich regionów i konwergencję z krajami UE. Raport 2010 [Impact of the EU funds on the economy in Polish regions and their convergence with the EU member states.
Report for 2010], Ministry of Regional Development, Warszawa 2010, pp. 39-43.
EASTERN POL AND. DEVELOPMENT CHALLENGES
COHESION POLICY
fishing (European Maritime and Fisheries Fund) as well as the new instruments such as the Connecting Europe Facility (CEF) or support unemployed
youth. However, its regional programmes (dual-funds) will be implemented at the regional level (by voivodships management). Such programmes
should also take new initiatives and learn new financial engineering solutions which are increasingly entering the instruments of the Cohesion Policy. However, their absorption capacity and efficiency of using EU assistance
are related to their capabilities of project co-financing, including the needs
of those regions in the government’s development programmes and support
from the state budget.
EASTERN POL AND. DEVELOPMENT CHALLENGES
69
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
HENRYK PONIKOWSKI
Demography
The region of Eastern Poland is not identified as a separate statistical unit
for scientific research. Thus, the demographic analysis of this territory will
be conducted using NUTS 2 units, that is voivodeships: lubelskie, podkarpackie, podlaskie, świętokrzyskie and warmińsko-mazurskie. Polish and foreign regional policies emphasize that Eastern Poland is an underdeveloped
area, which is strongly conditioned by history. As a border region it shows
typical features of economic peripherality1. Therefore, the Operational Program – Development of Eastern Poland was launched to provide this area
1
See A. Miszczuk, Uwarunkowania peryferyjności regionu przygranicznego, Norbertinum, Lublin 2013, Zarycki T, Polska Wschodnia w perspektywie centro-peryferyjnej, [in:] Strategiczna problematyka rozwoju regionu
lubelskiego, M. Stefański (ed.): Innovatio Press Wydawnictwo Naukowe Wyższej Szkoły Ekonomii i Innowacji,
Lublin 2011, pp. 91-198.
72
HENRYK PONIKOWSKI
with a special kind of aid. Obviously, it chiefly aims at improving economic
and not demographic cohesion in this area as compared to that of the EU.
It is a common opinion that economic barriers play a decisive role
in the development of Eastern Poland, while demographic problems are
usually marginalized. M. Okólski points out that “perhaps demographic factors – the population size and dynamics as well as its basic structural features – will turn out to be the most serious challenge for Europe in the 21st
century”2. At the same time, Eastern Poland is also characterized by demographic peripherality, i.e. low level of urbanization, low population density
and population decrease3. The aim of this study is to present the demographic
situation of Eastern Poland voivodeships in relation to other NUTS 2 type
European regions. Various research questions occur in this field of study.
Do demographic phenomena correspond to economic problems; do they
facilitate or halt economic development? Or maybe the demographic circumstances constitute the main obstacle of Eastern Poland development?
The demographic situation in Eastern Poland voivodeships in relation
to other NUTS 2 type regions will be analyzed using distance measures.
The method will allow for the evaluation of the position of the analyzed
voivodeships in the European demographic space. Economic distances for
the analyzed voivodeships will also be presented later in this chapter. The basis for the measure will be GDP per capita. Comparison of the two measures
will make it possible to present the spread between the demographic and
economic distances in the analyzed voivodeships of Eastern Poland. The calculation of distance measures for the demographic and economic situation
of the analyzed voivodeships in 2011 was conducted on the basis of appropriate data from the Central Statistical Office and Eurostat.
2
3
M. Okólski, Wyzwania demograficzne Europy i Polski, [in:] Europejskie wyzwania dla Polski i jej regionów, A. Tucholska (ed.), Ministry of Regional Development, Warsaw 2010, p. 93.
See M. Wesołowska, Migracje ludności i ich skutki w regionie peryferyjnym (na przykładzie województwa lubelskiego), “Regional Barometer. Analyses and prognoses” No 3(25) 2011.
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
1. Demographic situation of Eastern Poland voivodeships
Many modern demographic principles are the effect of so called second demographic transition4. This model is characterised with the following features: decrease in the number of deaths resulting in longer life expectancy.
This is an effect of better living conditions and development of medical care.
At the same time, number of births is falling to such an extent that the decreasing birth rate does not ensure even simple generational replacement.
Meanwhile, women become more and more professionally active, the age
of marriage and procreation is getting older and the model of large family is petering out. In effect of the above described processes the population is shrinking. Moreover, the population is aging and, at the same time,
is interested in active lifestyle. It brings about certain social and economic
consequences, especially on the job market, in the pension system, the level
of health care and rehabilitation spending or the development of personal care
and assistance services for the elderly5. In turn, this direction of demographic
changes facilitates the development of a new sector called silver economy.
The demographic situation of Eastern Poland voivodeships, apart from
the principles of second demographic transition, is defined by many current
phenomena, especially condition and distribution of population, demographic structures, natural population movement and migration. The population
of Eastern Poland is 8232.3 thousand people, i.e. 21.4% of the population
of Poland and 1.6% of the EU population. The distribution of the total number of Eastern Poland region inhabitants among particular voivodeships
is the following: lubelskie – 26.4%, podkarpackie – 25.9%, podlaskie – 14.6%,
świętokrzyskie – 15.5%, warmińsko-mazurskie – 17.6%.
The condition and distribution of the population is strongly connected
with urbanization. The proportion of city inhabitants in the total population
4
5
M. Okólski, Demografia. Podstawowe pojęcia, procesy i teorie w encyklopedycznym zarysie, Wydawnictwo
Naukowe Scholar, Warsaw 2005.
Diagnosis, development tendencies and consequences of demographic situation for the development of Eastern Poland are included in: D. Celińska-Janowicz, A. Miszczuk, A. Płoszaj, M. Smętkowski, Aktualne problemy
demograficzne regionu Polski wschodniej, EUROREG Reports and Analyses 5/2010, Warsaw 2010.
EASTERN POL AND. DEVELOPMENT CHALLENGES
73
74
HENRYK PONIKOWSKI
of Eastern Poland is 49.2%. In Poland the proportion is 60.7% and in the EU
it is 76.5%. In Eastern Poland, the most urbanized voivodeships are podlaskie
and warmińsko-mazurskie. In the podlaskie voivodeship, urban population
constitutes 60.3% living in 40 towns and in warmińsko-mazurskie 59.4%
in 49 towns. In the lubelskie voivodeship, 46.5% of people live in 42 towns,
in świętokrzyskie 45% in 31 towns and in podkarpackie 41.4% in 50 towns.
It should be pointed out that the number of towns and cities in Eastern Poland does not directly translate to the proportion of urban population. This
is mainly caused by the fact that the towns are mostly small (up to 10 thousand inhabitants). In Eastern Poland, there are 212 towns and cities altogether
but only three of them – Lublin, Białystok and Kielce have over 200 thousand
inhabitants. Together, these three cities have a population of 844.7 thousand
inhabitants, which is 20.8% of the total number of Eastern Poland urban
population and 3.6% of urban population of Poland.
Regarding the development of the analyzed voivodeships, the population aging process is highly significant. The demographic old age may
be used as a measure for this phenomenon. It is determined by calculating the ratio of the population aged over 65 years to the population aged
0-14 years within the current year6. The value of the measure lower than
1.0 means that the population aged 0-14 years is larger than the population
aged over 65 years. In the analyzed year 2011, such a value was observed
both in the entire country (0.85) and in the region of Eastern Poland (0.84).
The most favorable index ratios characterized warmińsko-mazurskie (0.70)
and podkarpackie (0.77) voivodeships. The demographic situation was worse
in the lubelskie (0.89), podlaskie (0.92) and świętokrzyskie (0.98) voivodeships. In relation to gender, the index shows that there are more boys than
girls both in Eastern Poland (0.62) and the whole country (0.62). The most
numerous population group are women aged over 65: in Eastern Poland
6
See Z. Długosz, S. Kurek, A. Kwiatek-Sołtys, Stan i perspektywy starzenia się ludności w Polsce i Europie, [in:]
Człowiek w przestrzeni zurbanizowanej, M. Soja, A. Zborowski (ed.), Institute of Geography and Spatial Management of the Jagiellonian University, Cracow 2011, pp. 11-26.
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
(1.07) and the entire country (1.09). Summing up, it can be concluded that
so far the population of Eastern Poland in not too old from the demographic
point of view. In the literature, it is stressed that, in 2005, in the whole Europe, the proportions of these two population groups were the same although
there were significant differences between particular countries. Development
tendencies show that in 2045, in all European countries, the demographic
old age ratio will exceed 1.07.
The demographic situation of Eastern Poland is affected by the migration
balance defined as the difference between in-migration and out-migration
in a particular region. The balance is the effect of domestic and international
population movements. The migration balance in all voivodeships of Eastern
Poland is negative. Due to this fact, the lubelskie voivodeship loses 2.4 persons per 1000 inhabitants (the highest number in Poland); in warmińskomazurskie the balance is -2.1/1000, in świętokrzyskie -1.8/1000, in podlaskie
-1.6/1000 and in podkarpackie -1.0/1000 inhabitants. In Eastern Poland
voivodeships, international migration is not as important as domestic economic migration, mainly to regions characterized with lower unemployment
rates. It is also essential that the analyzed voivodeships mainly lose young
people including ones who take up studies in other, renowned academic
centers and usually do not come back to their home towns and villages.
An important element of the demographic situation of Eastern Poland
– apart from migration balance – is the natural population movement.
In 2011, the birth rate reached values from 9.1‰ in świętokrzyskie to 10.2‰
in warmińsko-mazurskie. At the same time, the mortality rate was in the range
of 8.6‰ in the podkarpackie voivodeship to 10.7‰ in świętokrzyskie. Thus,
the result of the natural population movement is surplus population growth
in the podkarpackie (1.4‰) and warmińsko-mazurskie voivodeships (1.2‰).
From this perspective, the świętokrzyskie (-1.7‰), lubelskie (-0.7‰) and
podlaskie (-0.4‰) voivodeships are depopulational.
7
Ibid, p. 14.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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76
HENRYK PONIKOWSKI
Despite increasing migration movements in Eastern Poland, similarly to the whole country, the inhabitants of the region are mostly of Polish
origin and have Polish citizenship. Considering the national-ethnic structure, people who declare themselves as not Polish constitute only 0.4%
of population in lubelskie, 0.5% in podkarpackie, 4.2% in podlaskie, 0.3%
in świętokrzyskie and 1.7% in warmińsko-mazurskie. In the entire country
the proportion is 3.6%.
2. The characteristics of diagnostic demographic features
The methods of multidimensional comparative analysis facilitate research
of objects (regions, enterprises) simultaneously described by many diagnostic features (variables). In analysis of such objects, it is important to select
appropriate variables. They should be measurable, factually justified and
concern only significant aspects of the analyzed objects. The following demographic variables were selected for multidimensional demographic analysis
of Eastern Poland voivodeships: total population in thousands, population
density per 1 km2, fertility index and male life expectancy. These Eastern Poland characteristics alongside extreme values for all NUTS 2 type regions
in the 27 EU members have been presented in Table 1.
It is stressed in the literature that features selected for multidimensional evaluation should be entirely independent or at least as weakly correlated as possible8. The variables selected for the analysis meet the condition
of weak correlation.
8
A. Zeliaś (ed.), Ekonometria przestrzenna, Państwowe Wydawnictwo Ekonomiczne, Warsaw 1991, p. 84.
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
Tab. 1. Selected demographic characteristics of Eastern Poland voivodeships in 2011
Voivodeships
Total population Population density per 1 km2
in thousands
Fertility index
Male life span
in years
xi1
xi2
xi3
xi4
lubelskie
2151.9
86
1.41
70.7
podkarpackie
2103.5
118
1.35
73.3
podlaskie
1188.3
59
1.34
72.1
świętokrzyskie
1266.0
108
1.34
71.5
warmińsko-mazurskie
1427.2
59
1.45
70.9
min EU 27
28.0
Åland (FI)
3
Övre Norrland
(SE)
1.05
Principado
de Asturias (ES)
67.3
Lietuva (LT)
max EU 27
11866.9
Île-de-France
(FR)
9366
Inner London
(UK)
3.59
Guyane (FR)
80.8
Åland (FI)
Source: Own study based on: 2012 statistical yearbook of voivodeships, GUS, Warsaw, pp. 658-673 and Eurostat data
Despite the fact that there is a large spread between the highest and lowest population of particular voivodeships of Eastern Poland (963.6 thousand
people), the average variation of this diagnostic feature is only 28.6%. Analyzing the population sizes in all NUTS2 type regions in the EU 27, it turns out
that the difference between the highest population number region of Île-deFrance (FR) and the lowest Åland (FI) – an archipelago located in the Baltic
Sea, is as large as 11838.9 thousand people. In Europe, the population size
used as a diagnostic feature is also characterized with very large variation
(the coefficient of variation is 83.7%). The distribution of population in Europe according to NUTS 2 units has been presented in Map 19.
9
Collection of maps of various demographic phenomena in various research periods can be found in: The ESPON 2013 Programme. DEMIFER Demographic and migratory flows affecting European regions and cities.
Applied Research Project 2013/1/3. Atlas of maps for Draft Final Report, April 2010, http://www.espon.eu/
export/sites/default/Documents/Projects/AppliedResearch/DEMIFER/DEMIFER_Deliverable_11.pdf
EASTERN POL AND. DEVELOPMENT CHALLENGES
77
78
HENRYK PONIKOWSKI
Map 1. Population size according to NUTS 2 regions in 2011 in the EU 27 regions
and candidate states as well as EFTA members
Source: Eurostat, http://epp.eurostat.ec.europa.eu/cache/RSI/
The population density is another diagnostic variable used in our analysis.
As a measure of population distribution, it directly corresponds to the total area of the analyzed territory. The area of Eastern Poland is 99039 km2,
which constitutes 31.7% of the territory of Poland and 2.2% of European Union. In Eastern Poland, the biggest voivodeship is lubelskie (third in Poland)
while świętokrzyskie is the smallest. It should be pointed out that the consid-
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
erable portion of Eastern Poland area is occupied by rural areas and forest
complexes with important national and landscape parks. Thus, the population density in Eastern Poland ranges from 118 people per 1 km2 in the podkarpackie voivodeship (the highest in Eastern Poland) to 59 people per
1 km2 in the podlaskie and warmińsko-mazurskie voivodeships. Map 2 presents population density in all regions of the EU 27.
Map 2. Population density according to NUTS 2 regions in 2011 in the EU 27 regions
and candidate states as well as EFTA members
Source: Eurostat, http://epp.eurostat.ec.europa.eu/cache/RSI/
EASTERN POL AND. DEVELOPMENT CHALLENGES
79
80
HENRYK PONIKOWSKI
Considering all European NUTS 2 units, the population density is extremely varied. The spread between the highest density in the Inner London
region (UK) and the lowest in Övre Norrland (SE) is as wide as 9363 people per 1 km2. The coefficient of variation for population density is as high
as 245.5%.
Map 3. Birth rate according to NUTS 2 regions in 2011 in the EU 27 regions
and candidate states as well as EFTA members
Source: Eurostat, http://epp.eurostat.ec.europa.eu/cache/RSI/
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
Another demographic feature selected for the analysis is fertility index
which conveys the average number of children per one woman in reproductive age (15-49 years). The analyzed Eastern Poland voivodeships are very
similar to one another in this respect. Unfortunately, in all the five voivodeships fertility index is lower than 1.45. This means that the number of live
births per one woman in reproductive age does not even ensure simple generational replacement. Map 3 presents the spatial distribution of fertility index in all NUTS 2 type regions.
European fertility in all NUTS 2 units is characterized by 19.5% variability. The spread of the index values is also quite wide: from 3.59 in Guyane
(FR) to 1.05 in Principado de Asturias (ES).
The last diagnostic variable used in the demographic analysis was male
life expectancy. It is a demographic feature indicating population variability
according to sex. Obviously, male life span is significantly shorter than female. It has its demographic consequences. Spatial distribution of male life
expectancy in the EU 27 regions has been presented in Map 4.
The average male life span in Eastern Poland is 71.7 years and the variation is about 1 year on average. In the European Union, the mean life expectancy is 76.6 years, with average variation of 3 years. In Eastern Poland,
the longest male life expectancy is noted in the podkarpackie voivodeship
(73.3 years) and the shortest in the lubelskie voivodeship (70.7 years). In all
NUTS 2 units the spread of male life span is as wide as 13.5 years. The longest male life expectancy of 80.8 years is observed in Åland (FI) region and
the shortest in Lietuva (LT). Life expectancy is not only a demographic measure. Along with the level of education and wealth – it constitutes the basis for
the calculation of Human Development Index (HDI) which specifies the level
of social development. In UNDP report concerning regional and local development it has been stressed that the main reasons for male deaths in Eastern
Poland are cardiovascular system diseases and neoplasms10. High mortality
10
National Report of Social Development Poland 2012. Regional and local development, http://issuu.com/undp_
poland/docs/raport_lhdi [ 10.07.2013].
EASTERN POL AND. DEVELOPMENT CHALLENGES
81
82
HENRYK PONIKOWSKI
rate indicates poor prophylactics characteristic for poorly developed regions
of Europe. This observation is confirmed be the spatial distribution of this
demographic feature (Map 4).
Map 4. Male life expectancy according to NUTS 2 type regions in the EU 27 regions
and candidate states as well as EFTA members.
Source: Eurostat, http://epp.eurostat.ec.europa.eu/cache/RSI/
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
Numerical values of all the presented demographic features will form
a basis for the study of demographic distances in Eastern Poland voivodeships in relation to all other NUTS 2 type regions11.
3. Demographic distances
in Eastern Poland voivodeships on European background
NUTS 2 units are treated as points in a multidimensional space of demographic variables. This approach will let us determine a distance measure
in such a multidimensional classification space. Lower values of the measure
indicate the shorter distance between regions, which means that the regions
are characterized with similar demographic features. Higher values of the distance measure signify the longer distance between the analyzed regions.
The selected demographic features of the analyzed territorial units are
described in the form of the following data matrix:
where: n is the number of NUTS 2 units and m is the number of analyzed variables.
It should be noted that the selected demographic features have various
measurement units and dispersion. Certainly, the ones with bigger dispersion
possess larger information resources. Achieving compatibility of the primary values of diagnostic variables constitutes an important stage in multidimensional analysis. The compatibility was obtained using a standardized
formula which makes the values of all the demographic variables absolute,
11
Comprehensive review of theoretical issues and empirical analysis concerning demographic phenomena
may be found in: Bauer Ramon, Demography of European Regions. A Spatial Perspective on Current Population Patterns, Self-published by metropop.eu, 2010, http://www.metropop.eu/metropop001/metropop001.
pdf
EASTERN POL AND. DEVELOPMENT CHALLENGES
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84
HENRYK PONIKOWSKI
with their arithmetic mean 0 and standard deviation 1. The following standardisation method is used:
In order to measure the demographic distance between the analyzed
Eastern Poland voivodeships and other EU-27 NUTS 2 type regions, the customary Euclidean metric was used, calculated with the following formula12:
13
14
Zeliaś A. (ed.), Ekonometria przestrzenna, Państwowe Wydawnictwo Ekonomiczne, Warszawa 1991, p. 83.
Ibid, p. 82.
14 A. Młodak in: Analiza taksonomiczna w statystyce regionalnej, Difin, Warsaw 2006, p. 47 states that the nonnegativity condition results directly from other principles of topological matrix.
12
13
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
Obviously, the distances of the analyzed territorial units may result from
linked time relations. This type of mutual object relocations usually also results in a change of distances between them. The distance measures calculated according to formula (3) do not have a dynamic character. They are
rather cross-sectional, as they concern all EU-27 regions in statistical approach. They indicate the extent of demographic distances between each
Eastern Poland voivodeship and all the remaining NUTS 2 type regions
in 2011. At the same time, distances between respective Eastern Poland
voivodeships were also calculated. Obviously, the measure of demographic
similarity between the analyzed territorial units is gradable. A higher value
of the distance measure means that the analyzed territorial units are remote
from one another while low values indicate close similarity of the analyzed
objects. The demographic distances between Eastern Poland voivodeships
are presented in Table 2.
Tab.2. Demographic distances matrix for Eastern Poland voivodeships in 2011
i/k
lubelskie
lubelskie
podkarpackie
podlaskie
święto­
krzyskie
warmińskomazurskie
0
0.89
0.81
0.68
0.49
podkarpackie
0.89
0
0.72
0.81
0.97
podlaskie
0.81
0.72
0
0.21
0.57
świętokrzyskie
0.68
0.81
0.21
0
0.43
warmińskomazurskie
0.49
0.97
0.57
0.43
0
Source: own calculations on the basis of Eurostat data.
According to previous studies, considering all the analyzed features,
Eastern Poland voivodeships with the biggest demographical similarity
are podlaskie and świętokrzyskie. The value of the distance measure between them is 0.21. A large degree of demographic similarity also characterizes the świętokrzyskie and warmińsko-mazurskie (0.43) and lubelskie
and warmińsko-mazurskie (0.49) voivodeships. The most demographically
EASTERN POL AND. DEVELOPMENT CHALLENGES
85
86
HENRYK PONIKOWSKI
distant voivodeships are podkarpackie and warmińsko-mazurskie. The distance between these voivodeships is 0.97. Also, podkarpackie and lubelskie
(0.89) as well as podkarpackie and świętokrzyskie (0.81) are quite distant
demographically. It turns out that about 10% of all European NUTS 2 type
units are characterized with a similar distance correlation as podkarpackie
and warmińsko-mazurskie.
According to previous studies, all the voivodeships of Eastern Poland are
the most demographically distant to the metropolitan region of Inner London
(UK). There is also a very large demographic distance to the metropolitan
region of Île-de-France and highly urbanized Région de Bruxelles-Capitale/
Brusseles Hoofdstedelijk Gewest. Minimum and maximum distances and
territorial units similar to particular Eastern Poland voivodeships within
the first decentile of demographic distance have been presented in Table 3.
The closest region for the lubelskie voivodeship is Bulgarian Yugozapaden.
We may say that these are nearly twin regions. The lubelskie voivodeship
has only slightly higher population density. The podkarpackie voivodeship
has a minimum distance to the Stredni Morava voivodeship (CZ), podlaskie to świętokrzyskie and, obviously, the other way round. The warmińskomazurskie voivodeship has a minimum demographic distance to the Yuzhen
tsentralen region (BG).
It should be noted that within the scope of the first decile of demographic
distance, in a group of regions demographically similar to respective Eastern
Poland voivodeships, the majority of territorial units are poorly urbanized15.
Often, these are agricultural regions or regions with predominantly rural areas,
that is terrains located outside administrative city limits. For the analyzed Eastern Poland voivodeships, the group of 10% of demographically closest regions
include mostly Polish territorial units alongside other Eastern and Central
15
Information about the degree of urbanization of NUTS 2 type regions van be found in a report
by T. Tivig, K. Frosch, S. Kühntopf, Mapping Regional Demographic Change and Regional Demographic Location Risk in Europe, Schriftenreihe zu Nachhaltigkeit und CSR Band 2, Series on Sustainability and CSR
Volume 2, Rostocker Zentrum zur Erforschung des Demografischen Wandels; http://www.demographicrisk-map.eu/downloads/final-report.pdf
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
Europe regions. The only exceptions are two German regions (MecklenburgVorpommern and Sachsen-Anhalt) demographically similar to the podkarpackie voivodeship, two Portuguese regions (Região Autónoma da Madeira,
Região Autónoma dos Açores) least distant from the podlaskie voivodeship
as well as Estonia and the Portuguese region of Região Autónoma dos Açores
which are demographically closest to the warmińsko-mazurskie voivodeship.
It is also interesting that these 10% of demographically closest regions are
characterized with a low level of economic development expressed by GDP per
capita. It confirms high convergence of the analyzed demographic phenomena
with the level of economic development of these territorial units. With only
a few exceptions, Eastern Poland shares similar demographic distances with
these NUTS 2 type regions which – similarly to the analyzed voivodeships –
are included in the convergence program. These are territorial units with GDP
per capita below 75% of the EU average. The comparison of distance measures and GDP per capita distance measures has been presented in Figures 1-5.
The studies conducted so far confirm that the demographic distances
calculated for the analyzed Eastern Poland voivodeships compared to other
European NUTS 2 units are generally larger than the distances of economic development measured by GDP per capita. It should be pointed out that
this rule also applies to the differences between the analyzed Eastern Poland
voivodeships themselves. There is a larger demographic than economic distance between them. It seems that the discrepancies indicate a larger scale
of regional demographic problems than economic ones. Eastern Poland
voivodeships have the largest demographic distance to: Inner London (UK),
Région de Bruxelles-Capitale / Brussels Hoofdstedelijk Gewest (BE) , Berlin
(DE), Andalucía (ES), Ciudad Autónoma de Ceuta (ES), Ciudad Autónoma de Melilla (ES), Guyane (FR), Île de France (FR), Lombardia (IT), Inner
London (UK), Outer London (UK). Except for Andalucía (ES) and Guyane
(FR), these are certainly regions characterized with a high level of economic
development. At the same time, it is also worth noticing that most regions,
even the highly developed ones have smaller economic than demographic
distance to Eastern Poland voivodeships.
EASTERN POL AND. DEVELOPMENT CHALLENGES
87
0.95
0.21
PODLASKIE
0.65
Közép-Magyarország
SI
HU
PT
Bratislavsky kraj, Stredné Slovensko
Západné Slovensko
Dél-Alföld, Dél-Dunántúl, Észak-Alföld, Közép-Dunántúl, Nyugat-Dunántúl
SK
HU
Vest
RU
Moravskoslezko, Severozápad, Strˇedni Morava
Kujawsko-pomorskie, Lubelskie, Lubuskie, Opolskie, Podkarpackie, Pomorskie, Świętokrzyskie, Warmińsko-Mazurskie, Zachodniopomorskie
Região Autónoma da Madeira, Região Autónoma dos Açores
Vzhodna Slovenija
SK
Severen tsentralen, Yugozapaden, Yuzhen tsentralen
Bratislavsky kraj, Stredné Slovensko, Západné Slovensko
RU
PL
Centru
CZ
BG
Dolnośląskie, Kujawsko-pomorskie, Lubelskie, Małopolskie, Opolskie, Podlaskie, Pomorskie, Świętokrzyskie, Warmińsko-Mazurskie, Wielkopolskie, Zachodniopomorskie
Jihovy chod, Jihozápad, Moravskoslezko, Severovy chod, Severozápad, Strˇedni Cechy, Strˇedni Morava
HU
Mecklenburg-Vorpommern, Sachsen-Anhalt
Dél-Alföld, Dél-Dunántúl, Észak-Alföld, Közép-Dunántúl
SK
PL
Stredné Slovensko, Vchodné Slovensko, Západné Slovensko
RU
DE
Centru, Nord-Vest, Sud – Muntenia, Sud-Est, Sud-Vest Oltenia, Vest
CZ
Yugozapaden
Dolnośląskie, Kujawsko-pomorskie, Lubuskie, Łódzkie, Podkarpackie, Podlaskie, Pomorskie, Świętokrzyskie, Warmińsko-Mazurskie, Zachodniopomorskie
Moravskoslezko
BG
Severen tsentralen, Yugozapaden, Yuzhen tsentralen
PL
The first decile of distance
BG
1.01 CZ
1.06
PODKARPACKIE
0.05
LUBELSKIE
Min.
Tab. 3. Demographic distance measures
10.08
9.89
10.07
Max.
Inner London (UK)
Inner London (UK)
Yugozapaden (BG)
Stredni Morava (CZ)
Stredni Morava (CZ)
EASTERN POL AND. DEVELOPMENT CHALLENGES
Inner London (UK)
88
HENRYK PONIKOWSKI
0.94
Severen tsentralen, Yugozapaden, Yuzhen tsentralen
Kujawsko-pomorskie, Lubelskie, Lubuskie, Opolskie, Podkarpackie, Podlaskie, Warmińsko-Mazurskie, Zachodniopomorskie
Região Autónoma da Madeira, Região Autónoma dos Açores
Moravskoslezko, Severozápad, Strˇedni Morava,
Centru, Sud-Vest Oltenia, Vest
Bratislavsky kraj, Stredné Slovensko, Západné Slovensko
Dél-Alföld, Dél-Dunántúl, Észak-Alföld, Közép-Dunántúl, Nyugat-Dunántúl
BG
PL
PT
CZ
RU
SK
HU
0.92
Região Autónoma dos Açores
Moravskoslezko, Severozápad
Centru, Vest
Stredné Slovensko, Vchodné Slovensko
Dél-Alföld, Dél-Dunántúl, Észak-Alföld, Észak-Magyarország, Közép-Dunántúl
RU
SK
HU
PL
CZ
Kujawsko-pomorskie, Lubelskie, Lubuskie, Łódzkie, Podlaskie, Pomorskie, Świętokrzyskie, Zachodniopomorskie
EE
PT
Severen tsentralen, Severoiztochen, Severozapaden, Yugozapaden, Yuzhen tsentralen
Eesti
BG
Source: own calculations on the basis of Eurostat data.
0.20
WARMIŃSKO-MAZURSKIE
0.21
ŚWIETOKRZYSKIE
Podlaskie (PL)
Yuzhen tsentralen (BG)
The first decile of distance
10.10
10.06
Max.
Inner London (UK)
Inner London (UK)
Min.
DEMOGRAPHY
EASTERN POL AND. DEVELOPMENT CHALLENGES
89
90
HENRYK PONIKOWSKI
There are bound to be some exceptions, of course. Few European regions
have larger economic than demographic distance to Eastern Poland voivodeships. A good example is the region of Luxemburg (see Fig. 1-5).
Fig. 1. Lubelskie voivodeship’s span of demographic and economic distances from all EU 27 regions
Source: own calculations on the basis of Eurostat data
In the case of the lubelskie voivodeship the economic distance is larger
than the demographic one in relation to only 12 European regions. The largest difference in the economic distance compared to the demographic one
occurs for the following regions: Luxemburg, Hovedstaden (DK), HelsinkiUusimaa (FI), Bratislavský kraj (SK), Hamburg (DE) (see Fig. 1).
Fig. 2. Podkarpackie voivodeship’s span of demographic and economic distances from all EU 27 regions
Source: own calculations on the basis of Eurostat data
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
The podkarpackie voivodeship has a larger economic than demographic distance to as many as 45 European regions. They are 4 Belgian regions,
4 Danish regions, 15 German regions, 1 Spanish region, 3 Italian regions, Luxemburg, 5 Dutch regions, 7 Austrian regions, 1 Slovakian region, 2 Finnish
regions and 2 Swedish regions (see Fig. 2). The largest difference in the economic distance compared to the demographic one occurs for the following
regions: Luxemburg, Hovedstaden (DK), Groningen (NL), Hamburg (DE),
Tübingen (DE), Bratislavský kraj (SK).
Fig. 3. Podlaskie voivodeship’s span of demographic and economic distances from all EU 27 regions
Source: own calculations on the basis of Eurostat data
In the case of the podlaskie voivodeship, the collection of regions with
larger economic than demographic distances includes 33 territorial units.
The largest margin of difference between the economic and demographic
distance is seen between the podlaskie voivodeship and Luxemburg, Hovedstaden (DK), Groningen (NL), Helsinki-Uusimaa (FI), Bratislavský kraj (SK),
Hamburg (DE), Bremen (DE), Tübingen (DE), Stockholm (SE).
EASTERN POL AND. DEVELOPMENT CHALLENGES
91
92
HENRYK PONIKOWSKI
Fig. 4. Świętokrzyskie voivodeship’s span of demographic and economic distances from all EU 27 regions
Source: own calculations on the basis of Eurostat data
The świętokrzyskie voivodeship has a larger economic than demographic
distance in comparison with 18 regions. The largest span between the distances occurs for the following regions: Luxemburg, Hovedstaden (DK),
Helsinki-Uusimaa (FI), Bratislavský kraj (SK), Groningen (NL), Hamburg
(DE), Bremen (DE).
Fig. 5. Warmińsko-Mazurskie voivodeship’s span of demographic and economic distances
from all EU 27 regions
Source: own calculations on the basis of Eurostat data
The warmińsko-mazurskie voivodeship has a larger economic than demographic distance in relation to 13 European regions. The largest distance
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
span is observed in comparison with: Luxemburg, Hovedstaden (DK), Helsinki-Uusimaa (FI), Groningen (NL), Bratislavský kraj (SK), Hamburg (DE),
Stockholm (SE).
To sum up the distance analysis, it seems that, considering the demographic variables used in the analysis, it does not give us grounds for drawing
far-reaching conclusions. However, we can certainly claim that, compared
to other Polish and European regions, Eastern Poland voivodeships are
much more distant demographically than economically. This means that
the demographic disadvantages of Eastern Poland voivodeships should be
addressed within the framework of Polish and European regional policy at
least as much as economic ones. These large demographic distances of Eastern Poland voivodeships in comparison with other NUTS 2 type regions
result from insufficient population, especially the urban one, lower population density, similar fertility index and lower male life expectancy. These
demographic phenomena shaped the value of the analyzed demographic
distance measures.
4. Demographic future of Eastern Poland voivodeships
In Eastern Poland voivodeships, previous population changes were taking place with various intensity. In 2011, there were 1.47% less people than
in 2000. It translates to 32.4 thousand people, which is more than the current population of a district capital town of Łuków. In the świętokrzyskie
voivodeship the population decreased by 1.71%, that is 22.3 thousand people,
which is more than the current population of the town of Końskie. In the podlaskie voivodeship the decrease was 0.77%, that is 9.3 thousand people, almost as many as the population of Wysokie Mazowieckie. In the analyzed
period, in the podkarpackie voivodeship the population decreased by 1.34%,
that is 28.2 thousand people, more than the current population of Lubaczów
and Leżajsk. The population decrease of 1.9% also took place in warmińskomazurskie; this means 27.1 thousand people less, almost the population
of the town of Kętrzyn.
EASTERN POL AND. DEVELOPMENT CHALLENGES
93
94
HENRYK PONIKOWSKI
According to the prognosis elaborated by the Central Statistical Office
(GUS), the tendency of population changes in all Eastern Poland voivodeships will continue to be negative. The prepared prognosis takes into account
not only the expected general trends of fertility, mortality and migration but
also changes of demographic patterns and specificity of territorial population processes, separately analyzed for each voivodeship. The starting point
for the population change prognosis prepared by GUS is the population on
31 December 200716.
In 2007 Eastern Poland was inhabited by 8157.9 thousand people, which
was 21.4% of the population of Poland. In 2035, the population of Eastern Poland will be 10.2%, that is 836 thousand, smaller than in 2007. Thus, the proportion of the forecasted Polish population inhabiting Eastern Poland will
decrease from 21.4% in 2007 to 20.3% in 2035.
Graphic presentation of forecasted population of Eastern Poland voivodeships has been shown in Figures 6-8.
Fig. 6. Total population forecast (year 2007=100)
Source: own preparation based on Population prognosis for years 2007-2035, GUS, Warsaw 2009, p. 194.
In comparison with 2007, the largest population decrease by 2035 will
take place in świętokrzyskie (by 15.6%) and lubelskie (by 13.6%). The lowest
16
Population prognosis for the years 2008–2035, GUS, Warsaw 2009.
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
negative tendency will characterize podkarpackie (by 5.0%) and warmińskomazurskie (by 8.2%). In the podlaskie voivodeship, the population will decrease by 10.1% (Fig. 6).
In absolute figures, the population decrease in respective voivodeships
will be: 295 thousand people in lubelskie, equal to the current total population of Chełm, Zamość, Biała Podlaska and Świdnik; 199 thousand people
in świętokrzyskie, equal to the current population of the voivodeship capital, Kielce; 120 thousand people in podlaskie, equal to the current population of Łomża and Suwałki; 117 thousand in warmińsko-mazurskie, equal
to the current population of the voivodeship capital, Elbląg; 105 thousand
in podkarpackie, equal to the current population of Krosno and Przemyśl.
Fig. 7. Urban population forecast (year 2007=100)
Source: own preparation based on Population prognosis for years 2007-2035, GUS, Warsaw 2009, p. 194
In 2035, compared to 2007, urban population will decrease in the podlaskie (by 5.8%) and warmińsko-mazurskie (by 8.1%) voivodeships. The largest urban population decrease will occur in the świętokrzyskie voivodeship
(by 23.8%). In the lubelskie and podkarpackie voivodeships, the decrease
will be 16.8% and 11.2%, respectively (Fig. 7).
EASTERN POL AND. DEVELOPMENT CHALLENGES
95
96
HENRYK PONIKOWSKI
Fig. 8. Rural population forecast (year 2007=100)
Source: own preparation based on Population prognosis for years 2007-2035, GUS, Warsaw 2009, p. 194
By 2035, the rural population will also decrease in Eastern Poland voivodeships. The biggest reduction will take place in the podlaskie voivodeship (by
16.4%), in lubelskie it will be reduced by 10.9%, in świętokrzyskie by 8.7% and
in warmińsko-mazurskie by 8.3%. A specific situation will occur in the podkarpackie voivodeship. In the analyzed period, the number of rural population in this voivodeship will be higher than in the base year 2007. Only
in 2035, the number will decrease slightly (by 0.7%) (Fig. 8).
From the point of view of aging society, it is necessary to conduct a demographic forecast of aging. Current and forecasted changes in the structure
of population according to biological age groups in Eastern Poland voivodeships have been presented in Figure 9.
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
Fig. 9. Diagnosis and prognosis of total population according to biological age groups (in %)
Source: own preparation based on Population prognosis for years 2007-2035, GUS, Warsaw 2009, pp. 204-205
In all the voivodeships, we observe decreasing proportion of age groups
0-14 years (children) and 15-64 years (adults), while the proportion of older
people aged 65+ and 80+ is increasing. By the forecasted year 2035, the proportion of children will decrease from 3.5% in podlaskie to 4.1% in podkarpackie. In the analyzed period, the adult group will also decrease from 5.9%
in podlaskie to 7.5% in świętokrzyskie. The proportion of older people will
continuously grow with predominance of women. The largest population
increase in the 65+ age group will take place in the świętokrzyskie (11.3%)
and warmińsko-mazurskie (11.2%) voivodeships. In the other voivodeships
the increase will be sligthly lower: in lubelskie – 10.1%, in podlaskie – 10.1%
and in podkarpackie – 10.0%. In all voivodeships the proportion of the oldest
people aged 80+ will also grow. This means that we are going to see a progressive and systematic process of Eastern Poland society aging.
EASTERN POL AND. DEVELOPMENT CHALLENGES
97
98
HENRYK PONIKOWSKI
Summary
In the light of the criteria adopted for this analysis, Eastern Poland voivodeships are demographically varied. The most similar voivodeships are podlaskie and świętokrzyskie. The most distant ones are podkarpackie and
warmińsko-mazurskie. The podkarpackie voivodeship is the least demographically similar to all other Eastern Poland territorial units. Other studies
confirm that it is the only „demographically active”17 voivodeship in Eastern
Poland. The voivodeship that is the most demographically similar to all others is warmińsko-mazurskie.
In a European perspective, the characteristic demographic feature of all
Eastern Poland voivodeships is that they are the most similar to poorly urbanized European regions. Despite the fact that the calculated distance measures should only be interpreted in the context of the demographic features
they represent, it should be noted that there is a close correlation between
demographic distances and the level of urbanization of the analyzed regions.
At the same time, the largest demographic distances separate Eastern Poland voivodeships from highly developed European regions, while poorly
developed Polish and Central and Eastern European regions are the closest.
The conducted studies show that Eastern Poland voivodeships are more
demographically than economically distant from one another as measured
by GDP per capita. This principle, with just a few exceptions, is also true
for other European NUTS 2 type regions. In other words, Eastern Poland
voivodeships are much more distant from other European regions in terms
of demographic distance than economic one. This does not mean that they
are subject to different demographic rules. The nature of demographic phenomena, lifestyle or family models are similar and only the pace and intensity of changes differs between regions. The differences in demographic
distances are mainly grounded in the degree of urbanization and socio-cultural conditions.
17
D. Celińska-Janowicz, A. Miszczuk, A. Płoszaj, M. Smętkowski, Aktualne problemy demograficzne regionu
Polski wschodniej, EUROREG Reports and Analyses 5/2010, Warsaw 2010.
EASTERN POL AND. DEVELOPMENT CHALLENGES
DEMOGRAPHY
The demographic problems of Eastern Poland voivodeships, that is natural decrease and out-migration, are characteristic for depopulating areas.
Thus, the demographic problems are not limited only to low birth rate and
progressive aging but also the decreasing number of young people due to migration. It should be pointed out that migratory phenomena are not easily
registered. Official statistical data indicate that Eastern Poland voivodeships
are population outflow regions. Demographic forecasts show that the analyzed voivodeships are depopulational regions.
The presented considerations mean that, after EU enlargement, Eastern
Poland demographic problems have been marginalized in European and Polish regional policies. The demographic problems have their specificity but
they are strictly connected with the issues of economic and social development. In order to minimize European development disproportions observed
in Eastern Poland, more attention should be paid not only to economic development but also to demographic problems of this region. If the problems
are neglected, there will occur further demographic divergence of NUTS
2 type regions18. It seems that Eastern Poland voivodeships should be included in a demographic convergence program.
18
Specificity and conditions for European demographic variation is presented by M. Okólski in: Wyzwania
demograficzne Europy i Polski, [in:] Europejskie wyzwania dla Polski i jej regionów, A. Tucholska (ed.), Ministry
of Regional Development, Warsaw 2010.
EASTERN POL AND. DEVELOPMENT CHALLENGES
99
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
P AW E Ł P A S I E R B I A K
Labour markets
The economic development of Eastern Poland region is affected by economic
activities of entities treating this region as an area of their operation. The degree of this activity is reflected by indicators describing the state of the economy and regional labor market there. Regardless of the level of analysis, or
whether the reference point will be local, regional, national or supranational (e.g. the EU), current and previous economic conditions determine
conditions of the labor market. The overall condition of the labor market at
the supranational or national levels results from the situation at lower levels
(regional or local) and vice versa. Analysis of the labor markets of the European Union shows that depending on the period of analysis labor markets of Member States tend to converge or diverge1. This trend also occurs
1
See, e.g. Employment and Social Development in Europe 2012, European Commission, Publications Office
of the European Union, Luxembourg 2012, p. 17 and following pages.
102
PAWEŁ PASIERBIAK
at the regional level on the scale of a single country. In Poland, the degree
of divergence of labor markets at the regional level is assessed as relatively high2. Accordingly, the assessment of the domestic labor market should
also rely on the examination of markets at lower levels. Beside evaluating
the state of regional economy, the regional labor market also allows for other insights. The labor market reveals the degree to which the region is able
to utilize available labor resources and create jobs for different groups of society, including the long-term unemployed. In this sense, the current state
of the labor market is a measure of economic effectiveness.
The subject of this study is the labor market in Eastern Poland. The paper analyzes certain changes that have occurred in this market since the beginning of the 21st century to distinguish its most important trends and thus
give us insights into its basic characteristics. The time horizon of the analysis
covers the period 2000-2012. The examination employs a research method
of a presentation, analysis and statistical data interpretation as well as a descriptive method. The assumed aim of the analysis has determined a twopart structure of this paper. The first part discusses the international context
which determines to some extent the situation at lower levels of this analysis. For this purpose, changes in labor markets of the most important global economies are synthetically presented. The growing internationalization
of economies makes the internal situation increasingly dependent on exogenous factors, which also applies to regional labor markets. The second part
examines the situation on the labor markets of the five voivodships of Eastern
Poland and identifies certain regularities in their development. The analysis
ends with conclusions.
2
See, e.g. Terytorialne zróżnicowanie bezrobocia w Polsce w 2011 roku [Spatial divergence in unmenployment
in Poland in 2011], Ministerstwo Pracy i Polityki Społecznej, Departament Rynku Pracy, Warszawa 2011, p. 9;
E. Kwiatkowski, P. Kubiak, Poziom rozwoju regionalnego i dynamika restrukturyzacji a bezrobocie regionalne
w Polsce [Level of regional development and transformation rate in relation to regional unemployment
in Poland], Gospodarka Narodowa, No 7/1998, p. 30. Eurostat’s data show that a degree of differentiation
measured by dispersion of regional employment rate dropped in Poland from 2000 (from 7.5) to 2012 (5.1).
See: Eurostat Database, Dispersion of regional employment rates, by sex, [tsdec440]. http://epp.eurostat.
ec.europa.eu/portal/page/portal/statistics/search_database#. Date of access: 2013-7-16.
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
1. Main economic indicators in voivodships of Eastern Poland
and relations between economic growth and labor markets
Despite a contemporary strong dependency on national and international
external conditions, a regional labor market is to some extent an autonomous
area due to the explicit specificities that involve spatially defined employment
opportunities or availability of workers who are not required to change their
place of living3. If analyzed at the level of voivodship and district, Polish regional markets show such specificity4. In Poland, beside a group of highly
developed voivodships whose labor market is in generally better condition,
there is also a group of voivodships whose labor markets are assessed as relatively weak due to the specific nature of those voivodships. The data collected
in Table 1 illustrates the main indicators of the economic situation of Polish voivodships relative to the average for Poland and the European Union.
Table 1. Selected economic indicators for Polish voivodships in the years 2000-2012
Specification
Unemployment
Employment rate
2000
2010
2000
2012
2000
2012
EU-27
100%
100.0%
9.2
10.4
62.1
64.1
Poland
48.4%
62.4%
16.3
10.1
55.1
59.7
Łódzkie
43.2%
57.6%
16.2
11.1
56.0
61.0
Mazowieckie
73.7%
101.6%
13.3
8.0
61.2
65.8
Małopolskie
42.1%
53.1%
11.6
10.4
59.0
59.1
Śląskie
52.1%
66.9%
18.9
9.4
48.7
57.6
Pomorskie
47.9%
60.0%
17.1
9.5
53.0
59.3
Wielkopolskie
51.6%
64.9%
14.1
8.5
56.7
61.0
Zachodniopomorskie
48.4%
54.3%
20.4
10.9
51.7
55.9
Lubuskie
43.2%
52.7%
21.3
9.0
49.6
57.2
Dolnośląskie
49.5%
70.2%
22.6
11.1
50.7
57.6
3
4
GDP per capita
[in % of EU’s av.]
A. Jakubowski [ed.], Rynek pracy w województwie lubelskim w latach 2007-2010 [The labour market
in the Lubelskie voivodship in 2007-2010], Urząd Statystyczny in Lublin, Lublin 2011, p. 27.
The analysis in this paper covers the regions considered as the NUTS 2 level (voivodships).
EASTERN POL AND. DEVELOPMENT CHALLENGES
103
104
PAWEŁ PASIERBIAK
Specification
GDP per capita
[in % of EU’s av.]
Unemployment
Employment rate
2000
2010
2000
2012
2000
2012
Opolskie
40.0%
49.8%
14.6
9.5
55.9
59.7
Kujawsko-pomorskie
44.2%
52.2%
18.2
11.9
52.5
58.2
EASTERN POLAND
Lubelskie
34.2%
42.0%
13.6
10.5
60.2
60.2
Podkarpackie
33.7%
42.0%
14.5
13.2
56.3
57.0
Świętokrzyskie
37.4%
47.3%
16.9
13.1
53.4
59.1
Podlaskie
36.3%
45.3%
15.7
9.2
58.4
61.6
Warmińsko-Mazurskie
37.9%
45.7%
22.4
11.0
50.5
53.6
Source: Own preparation based on Eurostat Database: Employment rates by sex, age and NUTS 2 regions (%) [lfst_r_lfe2emprt]; Unemployment rates by sex, age and NUTS 2 regions (%) [lfst_r_lfu3rt]; Gross domestic product (GDP) at current market prices by NUTS 2 regions
[nama_r_e2gdp]. Date of access: 2013-7-15.
The data in Table 1 shows that unemployment unlike employment rate
in the more developed regions, measured by GDP was usually lower. Voivodships such as Mazowieckie, Dolnośląskie and Wielkopolskie were quite
quickly converging the value of their GDP relative to the EU’s average.
Consequently, the high level of economic activity improved the condition
of the labor market there.
Those five voivodships of Eastern Poland are the least advanced regions
for economic development not only in Poland but also in the European Union. Despite some improvements since 2000, the per capita GDP in those
voivodships in 2012 reached only 42% in Lubelskie and Podkarpackie in relation to the EU’s average GDP and 47.3% in Świętokrzyskie. Those indicators
show a wide development gap between regions in relation to other regions
of Poland and the European Union. That gap also determines the functioning of the labor market in Eastern Poland.
The relationship between the degree of economic development and
the functioning of the labor market is quite obvious5. Actually, more developed regions have a relatively modern economic structure, which also means
5
E. Kwiatkowski, P. Kubiak, Poziom, op. cit., p. 31.
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
a higher level of competitiveness of their companies and products. The higher
share of services in output and employment reduces the dependence of regional economy on changes of conjuncture. More developed regions have a more
skilled and mobile workforce, which facilitates structural matching between
labor demand and supply there. Moreover, less developed regions are less attractive to potential foreign investors, which adversely affects the demand for
labor and thus the labor market. Such regions, however, offer cheaper workforce, which may encourage investors to become more interested in them.
Graphs 1 and 2 visualize some changes in and relationship of economic
growth and unemployment of the voivodships of Eastern Poland against
the background of Mazowieckie voivodship – one of the fastest growing regions in Poland.
Chart 1. GDP growth in the voivodships of Eastern Poland in the years 2003-2010, 2003=100
Source: Own preparation based on the data of the Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/
strona.html?p_name=indeks. Date of access: 2013-07-15.
Analysis of those changes confirms a strong correlation between the economic growth rate and level of unemployment in those regions. At the same
time, we can notice a growing imbalance in the development of the individual voivodships. As depicted in the graphs, the Mazowieckie voivodship was
the most dynamically developing region, and the five provinces of Eastern
Poland failed to match its high level of development. Examining the developmental points of departure which were definitely beneficial for Mazowieckie
EASTERN POL AND. DEVELOPMENT CHALLENGES
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106
PAWEŁ PASIERBIAK
we can conclude that such uneven economic development continued and even
deepened. That fact is reflected in labor market indicators which in eastern Polish provinces unfavorably changed in relation to the more developed regions.
2. Condition of the labor markets
in the voivodships of Eastern Poland
In 2000, the unemployment rate in Poland amounted to an average of 16.3%,
whereas it was 13.3% in Mazowieckie, 13.6% in Lubelskie, 14.5% in Podkarpackie 15.7% in Podlaskie, 16.9% in Świętokrzyskie, and 22.4% in WarmińskoMazurskie6. Twelve years later, in 2012, the unemployment rate changed
as follows: the average for Poland amounted to 10.1%, 8% in Mazowieckie,
9.2% in Podlaskie, 10.5% in Lubelskie, 11% in Warmińsko-Mazurskie, 13.1%
in Świętokrzyskie and 13.2% Podkarpackie.
Chart 2. Unemployment rate in the voivodships of Eastern Poland in the years 2000-2012, in %
Note: Data on the economic activity of the population aged 15 and more developed on the basis of representative Labor Force Survey (LFS).
Source: Own preparation based on the data of the Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/
strona.html?p_name=indeks. Date of access: 2013-07-15.
The decreased unemployment rate should be considered a success.
It should, however, be borne in mind that the methodology of the LFS is ap-
6
See data in Table 2.
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
plied to measure that indicator7. When considering the unemployment rate
registered by labor offices, unemployment rate indicators change significantly.
In this perspective, the unemployment rate for Poland in 2011amounted
to 12.5% and 13.2% for the Lubelskie voivodship, 15.5% for the Podkarpackie
voivodship, 14.1% for the Podlaskie voivodship, 15.2% for the Świętokrzyskie
voivodship, and 20.2% for the Warmińsko-Mazurskie voivodship8. Those figures indicate a significant spatial divergence in Polish labor markets. This
is also true for the voivodships of Eastern Poland9. A regional economic
structure is another factor behind divergence. For example, the figures on
the employment and unemployment in the Podlaskie and Lubelskie voivodships are largely distorted due to the so-called hidden unemployment there.
The high share of the agricultural sector in their economic structures causes part of unemployment there to take a form of agrarian unemployment.
Therefore, it is difficult to estimate the exact number of the unemployed,
which helps artificially lower the rate of registered unemployment.
The earlier mentioned regional economic structure is another factor
negatively affecting the labor markets of the voivodships of Eastern Poland.
If those regions and more economically developed regions are compared,
it is clear that the former group depends more on agriculture than industry and services. Table 2 presents the data on the employment structure
of the population by economic sector in the regions studied.
In Poland, this is BAEL method (Badania Aktywności Ekonomicznej Ludności – Research on Economic Activity of Population).
8
Statistical yearbook of voivodships 2012, GUS, Warszawa 2012, p. 318.
9See: Rynek pracy w Polsce. 2012 rok [Labor market in Poland in 2012], Ministerstwo Pracy i Polityki Społecznej,
Departament Rynku Pracy, Warszawa 2013, p. 7.
7
EASTERN POL AND. DEVELOPMENT CHALLENGES
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PAWEŁ PASIERBIAK
Table 2. Employment structure by economic sector
in the voivodships of Eastern Poland in the years 2000-2012, in%
Specification
Agriculture
Industry
Services
2000
2005
2012
2000
2005
2012
1999
2005
2012
Mazowieckie
20.3
16.0
11.0
24.5
21.7
22.3
55.2
62.3
66.7
Lubelskie
39.0
35.9
27.7
20.6
19.3
21.5
40.4
44.8
50.8
Podkarpackie
26.8
25.7
19.7
28.8
28.3
30.4
44.4
46.0
49.9
Podlaskie
33.8
34.4
25.1
20.9
20.7
23.1
45.3
44.9
51.8
Świętokrzyskie
31.7
33.3
24.0
27.0
22.4
28.5
41.3
44.3
47.5
Warmińsko-Mazurskie
14.6
16.4
11.9
29.3
30.4
32.2
56.1
53.2
55.9
Note: Data on the economic activity of the population aged 15 and more developed on the basis of representative Labor Force Survey (LFS).
Source: Own preparation based on the data of the Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/
strona.html?p_name=indeks. Date of access: 2013-07-15.
Despite the positive developments, agriculture is still very important
in the economies of the Lubelskie, Podlaskie and Podkarpackie voivodships. Accordingly, the share of this sector in employment in 2012 ranged
there from 24 to 27.7%, whereas in the Mazowieckie voivodship it was 11%
only. The changes in the employment in the industry and services in Eastern Poland are clearly adverse, especially if compared to the Mazowieckie
voivodship. The share of employment in industry slightly increased in Eastern
Poland, whereas it declined in favor of employment in services in Mazowieckie. The growth rate of employment in services is today one of the inherent
features of dynamically developing economic regions. Simultaneously, a high
share of services in output and employment causes the economy of those
regions to be less sensitive to cyclical changes. This is of great importance,
particularly in the current unstable macroeconomic situation in Poland and
the European Union. Therefore, those changes that occurred in Eastern Poland should be evaluated as negative.
Analysis of regional labor markets in terms of a structure of professional qualifications (education) confirms a national characteristic of the labor
market, i.e. regional labor markets with a highly qualified workforce (with
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
a higher level of education) tend to be in relatively favorable condition. Nevertheless, in the second half of the decade the situation began to change.
In the voivodships of Eastern Poland, the percentage of unemployed tertiary
graduates significantly increased. The highest rise in this group as reported
in the Lubelskie voivodship. In 2000, 6.1 thousand tertiary graduates remained out of work, which accounted for 3.8% of all the unemployed there.
In 2012, this number increased to 20 thousand and the share of this group
increased to 15.2%. This situation results from a relatively low absorbency
of the local labor market, a high number of graduates from public and private universities. The labor market is unable to absorb so many graduates.
This situation is symptomatic as analogous changes occurred in the other
regions of Eastern Poland. Actually, a higher percentage of unemployed tertiary graduates is reported in all of these regions. At the same time, there
is a phenomenon of reducing unemployment in the group of persons with
secondary education only. In 2012, they accounted for the lowest percentage of the unemployed in virtually all Polish regions, except the WarmińskoMazurskie voivodship. Typically, the voivodships of Eastern Poland show
a larger drop of the unemployed with vocational education or lower that
the national average.
In this respect, the most dynamic changes were reported in the Podkarpackie and Świętokrzyskie voivodships. Accordingly, it is worth pointing out
that there were more women in a group of unemployed tertiary graduates,
whereas male unemployment was higher only in the group of those with
vocational and lower secondary education.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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110
PAWEŁ PASIERBIAK
Table 3. Registered unemployment by level of education in the years 2000-2012,
in thousands of persons and %
Specification
2000
2005
2010
2012*
2000
in thousand persons
2005
2010
2012*
Share
Poland
Tertiary
69.4
152.4
204.7
225.8
2.6%
5.5%
10.5%
11.4%
Vocational secondary
561.9
606.7
429.9
440.7
20.8%
21.9%
22.0%
22.2%
General secondary
168.7
211.5
213.1
214.5
6.2%
7.6%
10.9%
10.8%
Basic vocational
998.8
903.6
556.2
555.8
37.0%
32.6%
28.5%
28.0%
Lower secondary, primary
903.8
898.8
550.8
545.9
33.4%
32.4%
28.2%
27.5%
Total
2702.6
2773
1954.7
1982.7
100%
100%
100%
100%
13.9%
15.2%
Lubelskie voivodship
Tertiary
6.1
12.7
16.7
20.0
3.8%
8.1%
Vocational secondary
39.6
40.4
29.4
32.3
24.8%
25.8%
24.6%
24.7%
General secondary
11.7
14.0
15.1
15.9
7.3%
8.9%
12.6%
12.1%
Basic vocational
58.0
47.1
29.8
32.4
36.3%
30.0%
24.9%
24.7%
Lower secondary, primary
44.4
42.7
28.6
30.6
27.8%
27.2%
23.9%
23.3%
Total
159.7
156.8
119.7
131.1
100.0%
100.0%
100.0%
100.0%
Podkarpackie voivodship
Tertiary
4.9
10.2
16.6
20.2
2.7%
6.2%
11.7%
13.1%
Vocational secondary
40.5
40.6
36.0
39.4
22.2%
24.7%
25.3%
25.6%
General secondary
10.5
12.6
14.7
15.8
5.8%
7.7%
10.4%
10.3%
Basic vocational
73.2
57.7
43.9
47.0
40.2%
35.2%
30.9%
30.5%
Lower secondary, primary
53.0
42.9
31.0
31.5
29.1%
26.2%
21.8%
20.5%
Total
182.2
164.0
142.3
153.8
100.0%
100.0%
100.0%
100.0%
Podlaskie voivodship
Tertiary
2.5
5.3
7.9
9.3
3.2%
7.3%
12.3%
13.6%
Vocational secondary
18.6
17.7
14.6
15.8
23.5%
24.2%
23.0%
23.0%
General secondary
5.7
6.4
7.9
8.2
7.3%
8.8%
12.4%
11.9%
Basic vocational
26.8
20.9
15.6
16.6
33.8%
28.6%
24.4%
24.2%
Lower secondary, primary
25.5
22.8
17.8
18.7
32.2%
31.2%
27.9%
27.3%
Total
79.2
73.2
63.8
68.7
100.0%
100.0%
100.0%
100.0%
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
Specification
2000
2005
2010
2012*
2000
in thousand persons
2005
2010
2012*
Share
Świętokrzyskie voivodship
Tertiary
4.1
Vocational secondary
9.2
10.9
12.6
3.5%
7.8%
13.3%
14.5%
27.3
29.1
20.4
22.0
23.1%
24.7%
24.9%
25.3%
General secondary
8.3
10.1
9.2
9.4
7.0%
8.6%
11.2%
10.8%
Basic vocational
45.4
39.2
23.7
24.6
38.3%
33.3%
28.8%
28.4%
Lower secondary, primary
33.3
30.1
17.9
18.1
28.1%
25.5%
21.8%
20.9%
Total
118.5
117.8
82.1
86.7
100.0%
100.0%
100.0%
100.0%
Warmińsko-Mazurskie voivodship
Tertiary
2.9
5.7
7.8
9.9
1.8%
3.8%
7.4%
8.8%
Vocational secondary
29.1
29.5
20.4
22.0
18.4%
19.5%
19.2%
19.4%
General secondary
8.2
10.9
11.3
12.1
5.2%
7.2%
10.7%
10.7%
Basic vocational
54.1
47.6
30.3
32.0
34.2%
31.5%
28.6%
28.3%
Lower secondary, primary
63.9
57.3
36.1
37.2
40.4%
38.0%
34.1%
32.9%
Total
158.2
150.9
105.9
113.2
100.0%
100.0%
100.0%
100.0%
* Data for Poland: 2011.
Source: Own preparation based on: Rocznik statystyczny Rzeczpospolitej Polskiej 2012. Rok LXXII. GUS. Warszawa 2012. pp. 241-242 and the Local Data Bank of the Central Statistical Office. http://www.stat.gov.pl/bdl/app/strona.html?p_name=indeks. Date of access: 2013-07-15.
An important feature of the Polish labor market is the relatively long time
of being unemployed, which is reflected in a high long-term unemployment
rate. This phenomenon is highly disadvantageous as economic activity and
effective job search can be significantly reduced if persons remain unemployed. The changes that occurred in Poland and those regions show that
the number and share of the unemployed over 12 months in 2008-2009 decreased. One of the favorable factors was the economic upturn which increased the demand for labor in Poland and in particular provinces. However,
adverse effects began since 2010 (see Table 4).
EASTERN POL AND. DEVELOPMENT CHALLENGES
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112
PAWEŁ PASIERBIAK
Table 4. Share of the long-term unemployed relative to a total of the unemployed, in %
Specification
2006
2007
2008
2009
2010
2011
2012
Mazowieckie
53.9
50.2
40.8
30.8
34.6
39.1
39.6
Lubelskie
52.4
48.8
39.9
31.8
32.2
39.7
41.2
Podkarpackie
52.8
49.4
39.9
33.6
37.4
41.6
41.7
Podlaskie
46.4
43.5
32.6
27.8
34.0
39.1
41.0
Świętokrzyskie
52.9
49.7
43.2
31.7
30.7
35.1
36.8
Warmińsko-Mazurskie
47.1
42.7
31.5
26.1
28.1
32.7
34.4
Source: Own preparation based on the data of the Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/
strona.html?p_name=indeks. Date of access: 2013-07-15.
The data in Table 4 confirm that in 2011 and 2012, the percentage
of the long-term unemployed increased in all regions analyzed. In 2011,
the highest rates were recorded in the voivodhips of Podkapackie (41.6%),
Lubelskie (39.7%) and Podlaskie (39.1%), whereas the average for Poland
was 34.6%. The following year, these indicators even deteriorated. Thus, importantly, the situation was better in the voivodships of Świętokrzyskie and
Warmińsko-Mazurskie than in the Mazowieckie voivodship.
Long-term unemployment in the labor markets of Eastern Poland is accompanied by high youth unemployment there. Reported throughout
the European Union, this very serious problem touches to a certain extent
also Poland and its voivodships. In the period 2000-2008, the total number of the registered unemployed under 24 in Poland decreased. In 2000,
it amounted to 823.5 thousand persons and by 2008 decreased to 304.6 thousand10. The following year, this downward trend was reversed, and already
in 2009 the number of unemployed persons in this age group increased
to 425.9 thousand. Since then, this number remained relatively stable. In 2012,
the number of the registered unemployed under 24 reached 424.2 thousad.
A similar analysis of the voivodships of Eastern Poland confirms these general
10
See: Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/strona.html?p_
name=indeks. Date of access: 2013-07-15.
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
trends although the rate of decline in unemployment until 2008 and growth
in the following years were lower than the average for Poland11.
As stated in the analysis by the Ministry of Labor, the number of registered unemployed youth at the end of 2009 compared to the previous year
increased in Świętokrzyskie to reach 13.2%, Lubelskie – 23.7%, WarmińskoMazurskie – 33.7%, Podkarpackie – 36.8% and Podlaskie – 48.4%12. The figures
were much better than for the other provinces. For example, the highest rise
was reported in the Wielkopolskie voivodship (60.5%) but only slightly lower
in the voivodships of Śląskie (59%) and Pomorskie (58.9%). In comparison
to the previous year, the changes in 2012 were not so dynamic. According
to statistical data, the growth rate of unemployment among young people
was low or even in some cases unemployment reduced, e.g. in Lubelskie (by
4.2%) and Podkarpackie (by 1.3%). Those figures remained at the same level
in the Świętokrzyskie voivodship13. Those changes are confirmed by another
indicator of the labor market. i.e. employment rate.
As depicted in Chart 3, from 2000 to 2012 employment among people
aged 15-24 initially fell slightly, but since Poland joined the European Union
(2004) employment in this age group rapidly increased. By 2008, the growth
rate was relatively high with the highest values reported in the Mazowieckie voivodship and followed by the voivodships of Lubelskie, Podlaskie
and Świętokrzyskie. After 2008, the employment rate in the Podlaskie and
Świętokrzyskie voivodships increased clearly from nearly 29% to 23-24%
in 2012. In the other voivodships of Eastern Poland, employment rates remained stable at the level of 17-22%.
11
In the period 2000-2008, a decline in the number of the registered unemployed under 24 reached the following values: Poland – 63%, Lubelskie voivodship – 55.9%, Podkarpackie voivodship – 56.1%, Podlaskie
voivodship – 56.7%, Świętokrzyskie voivodship – 54.4% and Warmińsko-Mazurskie voivodship – 57.9%.
In 2008-2012, an increase in the number of the unemployed amounted to 39.3%, 20.2%, 33.2%, 44.5%, 11%
and 19.5%, respectively.
12 According to the data presented here, a young unemployed person is a person under 25 years old. See:
Sytuacja na rynku pracy osób młodych w 2009 roku [Condition of young people on the labor market in 2009],
Ministerstwo Pracy i Polityki Społecznej, Departament Rynku Pracy, Warszawa 2010, p. 4.
13 Sytuacja na rynku pracy osób młodych w 2012 roku, Ministerstwo Pracy i Polityki Społecznej, Departament
Rynku Pracy, Warszawa 2013, p. 4.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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PAWEŁ PASIERBIAK
Chart 3. Employment rate for the age group of 15-24 in the years 2000-2012, in %
Source: Own preparation based on the data of the Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/
strona.html?p_name=indeks. Date of access: 2013-07-15.
This stable level may have also resulted from other important processes
shaping labor markets, namely the migration process that occurs with varying intensity across Poland. For the labor market from where emigration outflows, this means a lower labor supply, which statistically (though in the short
term) can have a positive impact on the local labor market. In the period
analyzed, i.e. 2000-2012, less developed provinces of Eastern Poland had
a net emigration. This was the interprovincial and international migration
of temporary and permanent residency. Chart 4 illustrates the interprovincial migration for the voivodships of Eastern Poland and the Mazowieckie
voivodship. The graph clearly shows the trend of depopulation of Eastern
Poland. This phenomenon was most noticeable in the Lubelskie voivodship but the remaining voivodships of Eastern Poland witnessed the same
phenomenon. The proximity of the Mazowieckie voivodship and wage differential between that voivodship and the regions of Eastern Poland meant
that the Mazowieckie voivodship was the most popular destination for per-
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
manent emigration from Eastern Poland14. These adverse phenomena have
far-reaching and serious consequences for regional economies. Decisions
to emigrate are made usually by young, creative and well educated people.
This influences a regional GDP growth in a longer term15.
Chart 4. Net interprovincial migration for permanent residency in the years 2000-2012,
in thousands of people
Source: Own preparation based on the data of the Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/
strona.html?p_name=indeks. Date of access: 2013-07-15.
Consequently, a region from which people emigrate suffers in the long
term from adverse changes in the demographic structure and economic
decline16. The possible decline of a given area as an investment and entre14
For example, an average monthly salary in the Mazowieckie voivodship in 2010 was by 38% higher than
that in the Lubelskie voivodship. See: P. Maleszyk, Gospodarcze uwarunkowania regionalnego rynku pracy
[Economic conditions of the regional labor market] [in:] A. Jakubowski [ed.], Rynek pracy [Labor market],
op. cit., p. 40.
15 B. Mucha-Leszko, M. Kąkol, Procesy migracyjne po rozszerzeniu Unii Europejskiej [Migration processes following the enlargement of the EU], „Polityka Społeczna” No 8/2009, p. 11.
16 As estimated, over the decade of 2010-2020, the number of people in working age (aged 18-59/64)
in the Lubelskie voivodship will decrease by 10.3%. See: P. Ciżkowicz, P. Opala, Uwarunkowania krajowej
i międzynarodowej konkurencyjności województwa lubelskiego [Conditions for the domestic and foreign
competitiveness of the Lubelskie voivodship], Ernst&Young, Warszawa 2011, p. 66.
EASTERN POL AND. DEVELOPMENT CHALLENGES
115
116
PAWEŁ PASIERBIAK
preneurship destination can contribute to greater divergence in economic
development. Similar effects are associated with a process of foreign emigration. In that case, people seem to be even more determined to find a better
place to live and work. Table 5 shows the figures on migration for permanent residency17. These figures do not illustrate all foreign economic migration of Poles (temporary residency) but can be helpful to identify some
trends18. Those data confirm that Eastern Poland is a favorable foreign emigration destination19. That process was intensive in particular immediately
after Poland’s accession to the European Union. However, when in 20062008 the economic situation in Poland and Polish regions was steadily recovering, the phenomenon of emigration slowed down. In some years and
regions, e.g. in Świętokrzyskie and Podkarpackie in 2009-2012, immigration
had a clear advantage over emigration.
Table 5. Balance of foreign migration for permanent residency
Specification
Mazowieckie
2004
2005
2006
2007
2008
2009
2010
2011
2012
832
565
-823
-112
326
817
690
654
485
Lubelskie
91
4
-1433
-608
-315
84
-38
-176
-154
Podkarpackie
-85
-384
-2083
-984
-772
111
44
35
0
Podlaskie
-147
-103
-844
-346
-258
-69
100
-76
-63
32
-15
-688
-287
-317
65
22
103
52
Warmińsko-Mazurskie
-542
-837
-1927
-1051
-739
-70
15
-44
-174
Poland
-9382
-12878
-36134
-20485
-14865
-1196
-2114
-4334
-6617
Świętokrzyskie
Source: Own preparation based on the data of the Local Data Bank of the Central Statistical Office, http://www.stat.gov.pl/bdl/app/
strona.html?p_name=indeks. Date of access: 2013-07-15.
17
It is the result of comparing the numbers of check-ins and check-outs in the province.
For example, in 2004, the number of emigrants from Poland for temporary residency in the EU amounted
to 750 thousand. In 2007, it increased up to 1.86 million people, and in 2010, it decreased to 1.62 million
people. See: P. Kaczmarczyk, Labour market impacts of post-accession migration from Poland [in:] Free Movement of Workers and Labour Market Adjustment: Recent Experiences from OECD Countries and the European
Union, OECD Publishing. Paris 2012, p. 175.
19E. Marek, Emigracja zarobkowa Polaków po akcesji do Unii Europejskiej [Polish post-accession labour migration], Polityka Społeczna nr 11-12/2008, p. 24; P. Zientara, G. Kuczyński, High Unemployment in Polish Regions:
Is Hysteresis Behing It?, Wspólnoty Europejskie, Nr 6 (211)/2011, p. 57.
18
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
Since 2010, the phenomenon of foreign emigration became more significant, chiefly as a result of the deteriorating economic conditions households
needed to operate in. At the same time, the process is geographically diversified. While the Mazowieckie voivodship reported a final positive net migration, the voivodships of Lubelskie, Podlaskie and Warmińsko-Mazurskie
showed a negative total balance, which is another weakness of the labor market in Eastern Poland.
Summary
In the years 2000-2012, the Polish labor market showed a number of positive
changes that have contributed to its overall improvement. One of these indicators may be unemployment rate which was relatively high at the beginning
of this period but at its end it was close to the average level of the European
Union. Such a situation does not mean, however, that at lower levels of analysis, i.e. regional, provincial or district, all markets function so effectively. On
the contrary, the data and analysis presented in this paper support the thesis
of a relatively high level of spatial divergence of labor markets. That statement
applies in particular to the less developed five provinces of Eastern Poland.
Carried out in this study, the analysis of the labor market in Eastern Poland gives rise to some conclusions.
1. The voivodships of Eastern Poland showed higher than average in Poland unemployment rates, except the Podlaskie voivodship in 2012.
Employment rates were around the average for Poland (59.7%),
but lower values were reported in the voivodships of WarmińskoMazurskie (53.6%), Podkarpackiep (57%) and Świętokrzyskie (59.1%).
2. The voivodships of Eastern Poland were touched more than other regions by long-term unemployment. Despite the temporarily reduced
share of the long-term unemployed relative to total unemployment
(2008-2010), this indicator increased in the period 2011-2012. Four out
of the five regions analyzed had that the values of that indicator higher
EASTERN POL AND. DEVELOPMENT CHALLENGES
117
118
PAWEŁ PASIERBIAK
3.
4.
5.
6.
7.
than the average for Poland (34.6%), and the Warmińsko-Mazurskie
voivodship was the only province where this indicator was lower.
The analysis of the labor markets of Eastern Poland in terms of an educational structure confirms a nationwide feature of a relatively favorable condition of tertiary graduates. However, people with secondary
education constitute the lowest share in a group of the unemployed,
and the share of tertiary graduates grew rapidly. In the Lubelskie
voivodship, that share increased from 3.8% to 15.2% between 2000 and
2012.
The labor markets of Eastern Poland face a problem of youth unemployment although compared to the national average this problem
occurs on a smaller scale. In fact, the analysis of the rise in youth unemployment indicates its lower level in the regions analyzed, except
the Podlaskie voivodship where it was relatively high.
One of the most serious economic problems of the voivodships of Eastern Poland is domestic and foreign migration. In all of the cases analyzed, there is a negative balance of interprovincial migration with
the highest values reported in the Lubelskie voivodship. In the short
run, the regional labor markets may be improved to a certain extent
but over a longer period emigration can lead to serious negative consequences for investment and business opportunities.
Both the Polish labor market and the regional labor markets of Eastern Poland show a high degree of correlation with the overall economic situation at global, supranational, national and regional levels.
In the period 2000-2012, the rate of growth determined the changes
in labor markets: at the national level, the situation improved considerably (catching up to the level of the EU), whereas at the regional
level, or that of Eastern Poland, the situation relatively deteriorated.
The low level of economic development compared to the EU average
and other developed provinces is not conducive to the improvement
of the situation on the local labor market in Eastern Poland. That factor can negatively affect economic activity in that region, resulting
EASTERN POL AND. DEVELOPMENT CHALLENGES
LABOUR MARKETS
in a lower demand for labor there, and thus lower employment and
higher unemployment.
8. The economic structure of the voivodships of Eastern Poland is outdated. A largest share of the economy is the agricultural sector which
is accompanied by a relatively low share of services resulting in: firstly, their quite high sensitivity to cyclical changes in the labor market
and secondly, a phenomenon of hidden unemployment. In addition,
regions with such economic characteristics cannot attract sufficient
investment.
The above conclusions have primarily negative connotations. However,
the five provinces of Eastern Poland certainly have resources that can and
should be effectively utilized. In order to improve that situation on their labor markets, there is a need for a long-term economic development plan.
Actually, only regions that have highly developed economic structures are
able to compete in domestic and international markets, which also enables
a lasting improvement in the economic conditions of the labor market. Those
issues should be of interest for socio-economic policy at the local, regional,
national and transnational level.
EASTERN POL AND. DEVELOPMENT CHALLENGES
119
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
K ATA R Z Y N A S O Ł K O W I C Z
Cultural potential
Cultural potential and development should be considered as different aspects
of the same reality as they enable interaction, determine priorities and help
solve everyday problems by the creation of local and regional networks and
cooperative structures. They contribute to neutralising obstacles to regional
development and create a positive atmosphere which matters in establishing
the cooperation of all entities in these regions. This paper is in no way an
exhaustive description of cultural conditions of the development of Eastern
Poland. It is more an attempt to examine the relationship between the cultural potential and development conditions of Eastern Poland. Actually, this
multidimentional concept of cultural capital cannot be expressed by a single indicator so its various dimensions should be identified to study the relationship between them.
This chapter addresses the meaning of certain aspects of culture like
the potential of cultural heritage and cultural identity, historical circum-
122
KATARZYNA SOŁKOWICZ
stances, multiculturalism. This paper focuses on the aspects that are more
or less recognisable in the consciousness and experiences of the residents
of the region and attempts to identify these aspects, which is a part of qualitative research. Not studied here, cultural distinctiveness is subject to a number of historical, sociological, literary, ethnographic research. It should be
pointed out that on the one hand culture can condition behaviour and attitudes, establish codes and means of communication and the ways society
is organised, but it is a resource of tangible and intangible assets which create identity, including the identity of Eastern Poland.
1. Cultura as a potential of development
Chiefly, cultural potential is an open resource that can dynamically change
as a result of the continual reinterpretation of heritage and its manifestations
as well as the continual creation of new cultural objects, i.e. artistic, architectural, symbolic, etc. Creativity is an area of life that impacts much on the relationship between cultural and creative potentials as well as on models for
their efficient use. The creative attitude that is shaped and inspired by culture
brings about innovation and development, also in other areas of social life
and economy. Also, it helps cope with conflict as it can create a space to talk
and find together a solution. The cultural potential of Eastern Poland can be
also discussed in terms of institutions. If citizens are active and engaged in social life in various ways, from being informed to co-deciding, they regarded
authorities and institutions as more trustworthy, they develop their skills,
a dialogue and exchange of experiences are established. It can be concluded
that the cultural potential of Eastern Poland determines the ways of making decisions, creates an atmosphere of openness and mutual trust. Regional
social and economic development is impacted by the initiation of creative
potential of population there. Inherited and culturally established norms,
values a​​ nd patterns of behaviour are important elements of cultural potential
regarded as development potential. The cultural potential of Eastern Poland
is both the foundation of national, regional, local identities.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
Eastern Poland needs to have resources to support changes and development in this region. That is just cultural potential which can explain the purpose of changes, idea of ​​action, most important decisions and responsibility
for results. Actually, cultural potential is a true stimulus capable of triggering
any changes in a region. Accordingly, cultural factors can be assumed as methodologically indispensable to understand the idea of social and economic
changes in a given region. Cultural potential is the principle of human behavior that conditions the way a given region develops so it is capable of shaping
individual’s values and
​​ behaviour, which is depicted by the model in Fig.1.
This model contains the following elements: (1) national variables (economic,
legal, technological, political conditions), (2) social variables (language, ethnicity, religion, beliefs), (3) national culture (4) regional culture, (5) individual’s behaviour, (6) individual’s values and (7) innovative behaviour (Fig. 1).
Fig. 1 Model about the relationship between cultural variables and individual’s values
and their relationship to economic and social behaviour
(1)
national variables,
e.g. law, government, economy,
technology
(4)
regional
culture
(3)
national,
social culture
(2)
social variables,
e.g. language,
ethnic origin,
religion
(6)
individual’s values
(7)
economic
and social
behavoiur
(5)
individual’s
behavoiur
Source: Own developed
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KATARZYNA SOŁKOWICZ
What is more, cultural potential enables a kind of uniqueness that stands
out positively and is the foundation of an appropriate development strategy for Eastern Poland. Cultural potential can be rightly regarded as a component of today’s regions, necessary though appearing in various guises.
It is manifested in, e.g. innovation, active development strategy or becomes
one of independent goals of regional development and also an important
indicator of regional attractiveness.
As a competitive environment becomes increasingly complex and diverse,
each region needs to create a kind of diversity and originality if it wants to develop. This fact is manifested by the creation of social and economic changes
that can support better efficiency and effectively performance of a strategy
(relationship between certain elements of culture and the export performance
of enterprises in the Lublin region are discussed in the papers by O. Gorbaniuk, B. Jóźwik, R. Mącik, K. Sołkowicz)1. Accordingly, cultural potential:
ƒƒ allows inhabitants of a region to understand their regional identity;
ƒƒ integrates individuals to work on regional objectives;
ƒƒ integrates inhabitants to follow measures adopted to realise regional
objectives;
ƒƒ offers common assessment criteria to inhabitants of a region;
ƒƒ enables collaborative improvement and reformulation of objectives
if necessary;
ƒƒ provides a common language and set of concepts;
ƒƒ satisfies the need for security, friendship, co-operation;
ƒƒ offers a religion, an ideology to release tension and anxiety due to uncertainty.
1
O. Gorbaniuk, B. Jóźwik, R. Mącik, K. Sołkowicz, Wyróżniki kultury organizacyjnej przedsiębiorstw z województwa lubelskiego prowadzących działalność eksportową [Distincive features of organisational culture
in export enterprises in Lubelskie voivodship], „Przegląd Organizacji” 5, brak roku wydania, pp. 10-14.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
2. Importance of cultural identity
Cultural systems operate in certain conditions, which may determine the way
of perceiving culture that cannot be replaced by its signs. Nevertheless, a diverse system of signs, cultural formations which are necessary for a community to function should be recognised. Therefore, nature of a cultural system
in which individuals live is not indifferent to the way they act and develop.
An individual is, thus, somewhat thrown into the world of a particular cultural system, which is the raison d’etre of human life, the ways it functions,
and as a determinant of individual’s cognition, behaviour, assessment..
Jerzy Kmita advises researchers to find common ground, contrary
to the dominant trends in the so-called cultural studies, instead of farther
dividing based on the premise that culture chiefly creates differences that
matter in fact only. Martin Heidegger’s tradition, recently rediscovered by
Zygmunt Bauman is worth mentioning here. Culture is a mental reality that
describes separated communities by category. If perceived so, culture can
be treated as knowledge.
One should remember that each region has its own unique features like
knowledge, practical activities, creative activities, and religion which demands a social context as indispensable to upgrade opportunities. These
features can integrate culture, are non-contradictory or rather complementary to lines of human activities and constitute an important factor of development and coping with crises. Thus, social life makes the cultural context
of human activities and what is more, culture seems to clearly manifest itself by social life.
Without a doubt, permanent and unchangeable elements and ad-hoc
and dynamic elements can be recognised in every culture. The development
of the culture in Eastern Poland is mainly determined by geographical, historical, ethnic factors that impact on one another in an unconventional and
unique way. This fact is reflected in people and the way they act. Moreover,
individual’s own contribution according to his or her ability, talent and education to the culture of Eastern Poland cannot be neglected. Remember that
individuals are shaped by culture that is assimilated by the fact of contact-
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KATARZYNA SOŁKOWICZ
ing their families and communities while being educated and influenced by
the environment as well as by his or her fundamental ties with his or her
home region. A region’s community is a community of individuals united
by several common features but chiefly just culture. If the culture of Eastern Poland is respected and developed with care, individuals are respected
above all. Someone from the outside since the first moment of contact with
a given culture can notice its features that distinguish it from his or her culture and give a specific image out of elements of different nature. You may
also claim that an inhabitant of a given region is sure that he or she can still
identify himself or herself with this regional community for common goals,
interests, history, cultural heritage, regardless the change of generations
and conditions of life. These are subjective elements of the cultural identity
of Eastern Poland.
Cultural heritage as a resource that stimulates the creation and consolidation of a common identity and the development of creative potential is a key
element of cultural potential. Understanding the role and meaning of the cultural identity of Eastern Poland is dynamically evolving because of social,
cultural, economic and technological changes. The landscapes composed
of objects of culture (cultural landscape) and nature (natural landscape) are
crucial elements of the cultural identity of Eastern Poland. A similar proposition can be made in the context of engagement in culture, perceived on
three levels here. The first level refers to access to the culture and cultural
goods of Eastern Poland and actions for an open culture. The second one
is engagement in culture, i.e. a form of activities. The third level would involve transforming this particular form of activity towards culture into one’s
own creative activity. These levels intermingle. The relationship between
the density of material heritage and its multimodal availability, i.e. by different means of communication is meaningful when heritage is examined
in terms of cultural potential.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
Fig. 2. Density of cultural material heritage and its multimodal availability
Source: Research by ESPON 2006.
The ESPON research shows that Poland has got only one region, i.e. Mazowsze with its highly dense and multimodally available heritage. Quite many
other Polish regions, e.g. Wielkopolska, Dolny Śląsk, Górny Śląsk, Małopolska,
Podkarpacie have highly dense and well accessible heritage. However, many
regions, including those of Eastern Poland that are developmentally behind
other European Union regions could benefit from a relatively high quality
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KATARZYNA SOŁKOWICZ
of their heritage as an important development factor. Accordingly, the cultural identity of Eastern Poland is not only subject to protection but also
is the potential that should be used to develop the region today and in the future. The cultural identity of Eastern Poland includes not only tangible assets
of culture but the memory and identity of the local community. This composition reflects both the attitudes of the inhabitants of Eastern Poland to values and the process of their reinterpretation. Therefore, one should identify
the competitive advantages due to not only the better recognised sites of heritage but the attractiveness of the historical cities or towns of Eastern Poland
and the impact of cultural heritage on the quality of life there.
Cultural identity is perceived here most generally and operationally.
Consequently, such an approach can relate cultural identity to identification by group and territory and not to the realm of imaginary identification
shaped by media-created experiences. Discussing cultural identity, the author refers to the so called diffusing identities imposed by nationality, a local
group, family traditions, religion and ignores complex situational identities which are not studied here. It should be emphasised that now people
can choose from among many different identities, which is recognised by
the well-known claim by Daniel Bell that social identification by class and
layer is losing its meaning and is being replaced by cultural identity based
on individual’s choice of scope and level of participation in culture. Thus,
the factors that determine situational identity include: taste, lifestyle, and
chosen habits and customs.
The core of the cultural identity of Eastern Poland consists of the following elements: a geographical space, spiritual bonds among the people who
live now, a similar way of understanding a reality, a similar way of acting
and behaving. Cultural identity can become a kind of glue to keep people together in changing times and a geographical space. It should be pointed out
that it is easy today to indicate difference in the use of the cultural identity
of a given region. The idea of cultural identity is important as it helps better
understand the changes both in evaluation and in levels of regional economic and social development. Moreover, cultural identity and socio-economic
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
development are complementary notions. Their complementarity is proven
by the set of functions of cultural identity, indicated by Leon Dyczewski:
ƒƒ a foundation of duration and development of a region regarded
as a culture creator;
ƒƒ a factor of development of inhabitants’ personalities;
ƒƒ a kind of bridge between what is individual with what is social; it can
permanently join individual’s existence and private life with the existence of region’s community; on the other hand, the existence of region’s community is fulfilled and expressed by its inhabitants’ nature
and activities;
ƒƒ an important factor of interpersonal communication in a region;
ƒƒ it can impact on what you can and should not accept from others or
should even fight against;
ƒƒ it helps region’s inhabitants be rooted in the entire cultural and social
heritage of a region2.
The cultural potential of Eastern Poland should be studied with reference
to the notion of cultural capital which is treated as knowledge and competence to refer to values ​​of symbolic culture. Introduced by Pierre Bourdieu,
a French sociologist, this term describes the idea of ​​knowledge, skills and
items of a cultural value that
​​
people acquire when they take part in social
life. It is expressed chiefly by individual’s linguistic and cultural competence.
It is manifested in three forms:
ƒƒ embodied as long-term dispositions of a body and mind, in particular good manners, a cultural taste, knowledge of forms of high culture,
cultural and social conventions;
ƒƒ institutionalised as basically formalised education, particularly approved by diplomas issued by prestigious universities;
ƒƒ objectified as cultural assets like paintings, books, equipment, etc3.
2
3
L. Dyczewski, Trwałość polskiej kultury [in]: Wartości w kulturze polskiej [Durability of Polish culture [in]:
Values in Polish culture], ed. Dyczewski L., Lublin 1992.
T. Zarycki, Kapitał kulturowy. Inteligencja w Polsce i w Rosji [Cultural capital. Polish and Russian intelligentsia], Wydawnictwa Uniwersytetu Warszawskiego, Warszawa 2008.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KATARZYNA SOŁKOWICZ
Cultural capital can be exchanged for social capital and economic capital
which are two other forms of capital, distinguished by Bourdieu. The objectified form of cultural capital can be relatively easily converted because
it involves the acquisition of tangible property. However, to collect institutionalised cultural capital requires major investment and long-term activities.
Cultural capital of the embodied form is most stable, can be collected even
over many generations and thus it is hardest to acquire and be deprived of.
The notion of regional cultural identity is related to the Polish term
of “mała ojczyzna” [little homeland] used by Stanisław Ossowski4. However,
this seems to be not merely „the most local individual’s environment” but
now primarily a source and purpose of civil life with values s​​ uch as freedom,
rule of law, self-government, common good, regional social and economic
development. Accordingly, cultural identity can be called a framework for
individual’s judgments and evaluation though its content can be inferred
only indirectly, based on claimed standards and guidelines, chosen contents
and their justification.
The Polish regions with clearly defined cultural identity include Górny
Śląsk and Kaszuby. It is hard to clearly determine how the awareness of own
cultural identity among the inhabitants of Eastern Poland is well established. However, one should not disregard cultural heritage and its impact
on the level of the consciousness of the inhabitants of Eastern Poland and
the role of collective life perceived in different ways, i.e. axiological, social,
economic. D.C. North presents an extremely interesting theory on cultural
and institutional structures. He claims that specific institutional arrangements vary from culture to culture, „ideas, ideologies, myths, dogmas, and
prejudices matter; and an understanding of the way they evolve is necessary for further progress in developing a framework to understand societal
change.”5 An institutional change generates from and is determined by self4
5
S. Ossowski, O ojczyźnie i narodzie [On the homeland and the nation], PWN, Warszawa 1984.
D.C. North, Efektywność gospodarcza w czasie [Economic Performance through Time] [in]: Jasińska-Kania
A., Nijakowski L.M., Szacki J., Ziółkowski M. (ed.) Współczesne teorie socjologiczne [Contemporary sociological theories], Warszawa 2006, vol. I, pp. 556-558
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
serving social actions rooted in cultural identity. Accordingly, institutions
decide about the continuity of a region in terms of axiology and are the basis
for questions about the possibility of the formation of the cultural identity
of Eastern Poland and development of this area. The studies on the sociocultural factors in the development of the regions of Central and Eastern
Poland and the Bug Euroregion Transboundary Union demonstrate that6:
1. The residents of this region are highly homogeneous community
in term of ethnicity, religion and rite. These examinations refute
the established some journalists and linguists, myth-like opinions
about multi-ethnicity and multi-religiosity of this area, which was
its distinctive feature in the past (this issue will be discussed in detail
later in this paper). Actually, diversity here is now more religious than
ethnic, and this religious diversity is going in the creation of many religious groups of various origins and groups that are not interested
in any religion. The authors of the study point out that the ethnic and
religious minorities in Central and Eastern Poland are as numerous
as those in other regions of Poland so they cannot make this region
distinctive.
2. The residents of Eastern Poland are more open to ethnic and cultural
differences. Simultaneously, the authors claim that a strong negative
stereotype of a Ukrainian and a much more positive though not without negative features image of a Belarusian function in the mentality
of the residents there.
3. The majority of the residents finds Eastern Poland as an extremely
charming and ecological area. Moreover, they regard this fact as a positive value, a kind of competitive advantage and a factor of the devel6
The study within „Projekt zagospodarowania przestrzenno-gospodarczego makroregionu województw: bialskopodlaskiego, chełmskiego, lubelskiego, tarnobrzeskiego” [Planning the spacial and economic management
of the macroregion of voivodships: bialskopodlaskie, chełmskie, lubelskie, tarnobrzeskie] coordinated by
Lublin University of Technology, L. Dyczewski, Społeczno-kulturowe czynniki rozwoju regionu ŚrodkowoWschodniej Polski i Euroregionu Bug [Social and cultural factors of the development in Eastern and Central
Poland and the Euroregion Bug], developed in cooperation with Jezior J., Lachowski S., Szwed R., Wadowski
D., Wąsala P., Wydawnictwo Norbertinum, Lublin 1997, p. 338 and later.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KATARZYNA SOŁKOWICZ
4.
5.
6.
7.
opment of this region. Nevertheless, it should be pointed out that this
fact results from less economic activities there. The researchers also
point out that environmental awareness is strongly associated with
a level of education, i.e. higher awareness comes from better education. You also need to pay attention to the fact that the residents are
interested in their own environment and local, regional problems.
Family, local and regional ties are closely interrelated. Family ties
which are regarded as good are, of course, essential, which is particularly clear in rural communities.
Work is a firmly established value both for individuals and a community. Strongly related with family ties, it is primarily a way to earn
a livelihood. One should point out that the inhabitants of this region
have shown a lot of concerns about their work, which is stimulated
by satisfied with their job.
The residents of Eastern Poland are hardly active in social and political
life. The researchers even suggest that they are apolitical though aware
of the issues of their region and declare their willingness to work for
their local and regional environment.
Religiosity is one of the most important elements that shape cultural
identity. This is also the case of Eastern Poland where religion and religious beliefs are fundamental in residents’ lives, at an individual, family
and local levels. Importantly, religious values a​​ re an essential element
of the system of values. This is a fundamental factor to determine
the cultural identity of this region. The residents of the region show
strong universalist tendencies. Simultaneously, their religious identity
is most personal, more related to values ​​and norms than a particular religious community. The development of cultural identity based
on human values, related to none of religion is typical of the process
of urbanisation of Eastern Poland as well as a higher level of education. The researchers emphasise the possible gradual dualism of social life and Christian norms and values.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
8. Buildings, spaces or objects represent the cultural identity and distinctiveness of a given region. They stand for the former Polish culture,
manifest Polish craftsmanship, form historical and cultural background, confirm Polish identity. So it also is the case of Eastern Poland. The inhabitants of this region have indicated most frequently
sacred objects such as churches, shrines, Orthodox churches, chapels,
synagogues and cemeteries. This fact proves the values ​​that are embedded in them and religious events consolidated by previous generations. Also, natural environment sites and qualities as well as cities
and towns are meaningful, which means that the residents love and
are sensitive to the natural environment. The residents also regard
castles, palaces, manor houses, monuments to historical events and
memorials as significant.
9. Events and people associated with a region are also a valuable indicator of regional identity. The inhabitants mostly have a knowledge of the events during the Second World War (Battles of Kock,
Tomaszów, Bychawa; concentration camps at Majdanek, Sobibór,
Treblinka, Bełżec; martyrdom of Poles and Jews; pacification in Zamojszczyzna). The events before 1939 like Polish-Lithuanian Union,
the battle of Maciejowice, fighting in the January Uprising, the Miracle at the Vistula remain deep down in the identity of Eastern Poland.
People who were important for Eastern Poland are, e.g. General Franciszek Kleeberg, General Stefan Grot-Rowecki, guerrillas, commanders
of the Armia Krajowa [Home Army] troops, Jan Długosz, Mikołaj Rej,
Szymon Szymonowicz, Stanisław Staszic, Leon Wyczółkowski, Stefan
Żeromski, Boleslaw Prus, Julian Kawalec, representatives of the noble
and aristocratic families like Jan Zamojski, Tomasz Zamojski, Adam
Czartoryski.
10.The cultural identity of Eastern Polish also refers to folk and local art
which is manifested by customs, tradition, legends, fairy tales, cultural events. The inhabitants of this region have a poor knowledge
of legends, fairy tales, stories about the region. They also declare their
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KATARZYNA SOŁKOWICZ
strong commitment to the customs related to religious holidays, especially Christian, national and family events like weddings, baptisms,
name’s days; harvest festivals, Chmielaki [a local beer festival], Andrzejki [an evening feast on St. Andrew’s Day]. Folk artists, especially
poets, writers, painters, sculptors, artistic groups are respected much.
Also, the development of cultural contacts and cooperation is regarded
as a way to strengthen old international cultural ties.
11. The region of Eastern Poland is typically agricultural and its future
is just related to agriculture, leisure and international tourism.
The cultural potential of Eastern Poland can be threatened, if there is no
access to and opportunity to participate in culture. Cultural exclusion can
be caused by economic, temporal, spatial and geographical factors. Moreover, cultural exclusion results from quality of cultural offers, cultural aspirations of people and lifestyle changes. As with other areas of social activity,
poor groups and communities which are poorly educated and of low social
status are vulnerable to being culturally excluded. Financial barriers appear
most often as the first reason for no participation in culture. A spatial factor is of a comparable power. Access to a cultural offer differs both in urban
and rural areas and regions.
The eastern voivodships and estates where used to be state-owned farms
are hardly culturally active and have limited access to culture. At the same
time, there is the process of separating cultural activities, i.e. art and artistic
activity becomes more and more often niche7.
If social capital is to be strengthened, the activities to support cultural
life based on local tradition and patterns are meaningful. These activities include, e.g. cultural activities by Volunteer Fire Brigades, local leaders, folk
artists, youth groups.
7
W. Burszta, M. Duchowski, B. Fatyga, J. Nowiński, M. Pęczak, E. A. Sekuła, T. Szlendak, Raport o stanie
i zróżnicowaniach kultury miejskiej [Report on the conditions and disrepancies in urban culture], 2009.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
Accordingly, the awareness of the inhabitants of Eastern Poland of their
cultural identity is permanently associated with shaping culture, arranging a symbolic space which is crucial both for individuals and a community. Moreover, individuals and communities can identify themselves with
a given territory, symbols, system of values reflected
​​
in the culture of Eastern Poland. However, one may get the impression that emotions or tradition shape this awareness. This issue should be examined interdisciplinary
and is not studied here.
3. Role of historical conditioning
The history of Eastern Poland is a factor that shapes this region today. Social
development follows some general patterns that can be confirmed in the long
run. No contemporary meanings of certain events can be understood unless
one refers to the source and reconstructed mosaic of history. It is not too
much to say that history is a bottomless memory of mankind, and individuals
need their own memory and heritage. J. Zubrzycki claims that individuals use
historical experience of a given group to shape their own sense of belonging
to this group and affection to the way of life this group follows8. K. Dobrowolski expresses a similar opinion. He identifies a cultural identity of a given region as a historical aspect9. History manifests itself in different ways:
„as a talent and skills, a structure of responses to stimuli, moral qualities,
a level of education, attitudes towards religion and its practices, adaptation
to work in the industry, self-esteem, a variety of local customs, slang”.
The essence of the discussion here is to relate historical conditions
to the cultural identity of Eastern Poland to make this region distinctive.
History seems to be one of the basic elements of cultural identity, defined
primarily as national fighting for freedom which has shaped the patterns
8
9
J. Zubrzycki, Wielokulturowość w teorii i praktyce [Multiculturalism. Theory and practice], „Znaki czasu”, 1990,
no. 18, p. 161.
K. Dobrowolski, Studia z pogranicza historii i socjologii [Historical and sociological studies], Ossolineum,
Wrocław-Warszawa-Kraków, 1967, p. 21.
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of coherence and integration of this region. Bearing in their minds the specific historical events, the inhabitants of this region accept the same values​​
and ideals that stand behind them as well as they are ready to disseminate
and defend them. Modernisation, economic development, urbanisation and
globalisation impel individuals to identify determinants while suggesting
a narrower and more community-oriented method of determining them.
A regional cultural identity which is revealed by, e.g. multiculturalism gets
priority over a wider national identity.
One should point out that historical tradition is, undoubtedly, a factor
capable of preserving the cultural identity of Eastern Poland. First, it is about
the role of history in the development of this region, both subjectively, i.e.
from the perspective of the inhabitants of this region and objectively, i.e.
as methods to develop this region. Only if tradition is defined, the importance of tradition in the historical regional development can be determined.
Following Jerzy Szacki’s opinion that „this term means all relationships
between the present and the past”10, it can be concluded that the development of a region and tradition are inseparably related with history. It can be
claimed that Eastern Poland is, in principle, traditional, and tradition has
always been present there. Accordingly, the today’s development of this region cannot be completely separated from its past. Eastern Poland is subject
to historical development as economy, socio-political relations and culture
change. The communities of family and tribal or state structures though
with a limited role for a state, depended mainly or even merely on customs
as a source of historical tradition. The power of customs rooted from tradition, or a belief that a given standard is a pattern of behavior followed for
a long time, and best for ages. Ancient customs as a part of regional culture
made it distinct. Thus, many people find historical tradition a real control
of behavior and actions. One can even say that historical experience shows
that Eastern Poland cannot develop without tradition, or elements from
the past that are constantly present there. Such persistence/stability is indis10
J. Szacki, Tradycja. Przegląd problematyki [Tradition. Reviewing the issues], Warszawa 1970, p. 19.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
pensable to achieve a sense of stability and confidence in the society, otherwise an individual can lose his or her sense of security. No feeling of security
in society can trigger internal disorders, coups, and revolutions. This is directly related to a deliberate recourse to the past, a reference to the system
of values ​​typical of Eastern Poland, and cultivation of one’s own memory
about the past. All these efforts create basic characteristics that is the foundation to understand and preserve the awareness of the common past, and
thus strengthen social ties in Eastern Poland. Additionally, the reference
to the past can be one of the key elements to preserve the region’s cultural
identity. The care to understand the history of Eastern Poland can guarantee
its development and today’s shape. The historical conditions that preserve
specific values of a given region can help not only deepen social ties but enrich the personality of individuals of such a regional community, and thus
are an educational factor.
The researchers who investigate Eastern Poland claim that „the nature
of the historical consciousness of its inhabitants is primarily national, liberating and martyrdom. The events during the time of peace that express constructive actions known as Organic Work are weakly preserved in the minds
and experiences of the inhabitants. Their historical awareness is firmly rooted in the remote past and not in the present so it is discontinuous, reference
points to the past are irregularly distributed. Thus, the past is not helpful much
in the present as it is simply too remote and too different from their normal
life. Extreme situations and extraordinary people – heroes create the past.”11
Historical conditions influence different levels of the socio-economic
development of Eastern Poland. Development disparities are extremely durable They deepened during the Partitions and failed to be reversed when
the Second Polish Republic was reformed. In the 19th century and early 20th
century, the economy of the regions of Eastern Poland was based on tra11
L. Dyczewski, Społeczno-kulturowe czynniki rozwoju regionu Środkowo-Wschodniej Polski i Euroregionu Bug
[Social and cultural factors of the development in Eastern and Central Poland and the Euroregion Bug],
developed in cooperation with J. Jezior, S. Lachowski, R. Szwed, D. Wadowski, P. Wąsala, Wydawnictwo
Norbertinum, Lublin 1997, pp. 161-162.
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KATARZYNA SOŁKOWICZ
ditional agriculture and did not stimulate strong economic growth there.
From the beginning of the People’s Republic until 1985, despite the widely
proclaimed ideology, no measures were taken to compensate for disparities. In 1950-1985, 0.1% of investment in industry was recorded in 18 out
of 49 voivodships in the north-eastern Poland. Then, the centrally planned
economy limited financial transfers to the poorest regions. The pace of industrialisation in Poland in the second half of the 20th century was one
of the highest in Europe. When Western Europe invested in new technologies, Poland invested in traditional sectors. Moreover, negligible investment
expenditures in Eastern Poland were over-scaled objects that did not match
this region12. The historical background is still reflected in the level of development of sectors of economy of Eastern voivodships compared to the rest
of Poland, the level of infrastructure development, as well as the approach
to entrepreneurship13. The joining of Poland to the European Union revealed
development disparities between the countries of the same continent as well
as inter-regional disparities in the scale of the state and the entire Community. Deepening economic integration in Europe is preferable for more developed countries and regions though it poses a number of threats to the less
developed regions and peripheral areas. The adverse phenomena include:
no incentives to initiate sustainable development, low social activity and
entrepreneurship, and a self-perpetuating lower standard of living. Historical heritage enables models of regional development to be standardised and
a generation-to-generation transfer of beliefs and patters. Historical background also determines a regional economic structure. This means that development trends are determined not only by politics or economy but also
by historical background as an integral part of this process.
12
13
Strategia rozwoju społeczno-gospodarczego Polski Wschodniej do roku 2020 [Strategy on the social and economic development of Eastern Poland until 2020], (project to be consulted), Ministry of Regional Development, Warszawa, December 2006, p. 8.
Program Operacyjny Rozwój Polski Wschodniej 2007-2013 [Development of Eastern Poland Operational Programme], Ministry of Regional Development, Project 3, Warszawa, 11 July 2006, p. 6.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
4. Multiculturalism in Eastern Poland
Multiculturalism, cultural diversity cannot be neglected if the meaning
of cultural factors for the development of Eastern Poland is studied. Eastern Poland is typically a region where Polish culture coexists and overlaps with neighboring cultures of Lithuania, Belarusia, Ukraine. This long
coexistence has generated numerous specific values there. These values​​
as an important part of cultural identity determine its fundamental shape.
Researchers of different disciplines like psychology, sociology, cultural
studies apply these values to define culture of a given region. The Chapel
of the Holy Trinity at the Castle of Lublin which is one of the most valuable piece of medieval art in Poland serves an example. Its early 15th century
Ruthenian-Byzantine frescoes make is unique and invaluable. Multiculturalism in the Lublin region is reflected in the manner the frescoes are
painted there. Researchers suppose that the most of the scenes associated
with Christian holidays and the Lord’s Passion were painted by a painter called Andrew; the image of Maiestas Domini, the scene of Annunciation, the angels on the vaulting and the prophets and saints were painted
by Kiryl, i.e. Cyril, a painter who represents a hieratic and iconic manner
of painting; the archaic-like polychromy on the arch wall and at the lower
past of the nave are attributed to a painter called Juszko who was connected with an artistic circle from Galicia and Volhynia. They all used archaic
iconographic schemes.
It is worth mentioning that the rich scientific literature by,
e.g. F. Znaniecki, F. Koneczny, J. Kozielecki, J. Nikitorowicz, A. Sadowski
discusses how to understand and explain history and cultural coexistence.
Studies on cultural values followed by a population in a given region are
a very difficult task because values are perceived differently and there are
no appropriate research methods. The cultural identity of Eastern Poland
has got three-levels of values, i.e. values of an individual known as values
of the ego; values a​​ cquired in education, socialisation; values d
​​ ue to the fact
of being a member of a community, cultural or religious group, associated with a particular territory and its entire cultural heritage. The fact that
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KATARZYNA SOŁKOWICZ
these levels function causes a conflict or dilemma of preserving a regional
identity. Multiculturalism seems to be a solution here. Multiculturalism
is a model in which different cultures and national, ethnic, or religious
groups live in the same territory but are not interrelated. Relationships
and contacts are usually random. Society in this model consists of separate groups with their own interests protected by their own organisations
and social institutions. Minorities in this system are not accepted or appreciated, at most passively tolerated. In multiculturalism, social majority is active in assimilating minorities, which often triggers tension and
conflicts at the junction of “majority – minority”14. Rooted in rulers’ effort
to join their subjects to cooperate socially, multiculturalism was a model that was wide spreading in Western Europe since the Middle Ages
to make Western Europe different from despotic Eastern European traditions. The tolerance and democratic system of the Republic of Poland
favoured such a model of multiculturalism so that it could develop unrestrained. The institutional bodies of the Nobles’ Republic of Poland were
a kind of reaction that resulted from the responsibility of Polish nobles for
the condition of the state and depended mainly on them. Nobles, in turn,
spread it to other social classes. Thus, the model of multiculturalism relied on tolerance and spontaneity of system processes. One should not
neglect the importance of the Union of Lublin which resulted in a kind
of community composed of the king, parliament, senate, money and foreign policy with autonomous and separate armies, identities, administrations and treasuries. Differences were visible and preserved by regional
councils whose ranges overlapped those in the lands after the 12th century
fragmentation of Poland15. The Eastern Poland of the time was inhabited
14
15
M. Golka, Oblicza wielokulturowości [Faces of multiculturalism] [in:] Kempy M., Kapciak A., Łodziński S. (ed.):
U progu wielokulturowości. Nowe oblicza społeczeństwa polskiego [On the cusp of multiculturalism. New
faces of Polish society], Oficyna Naukowa Warszawa 1997, p. 55 and later.
J. Siewierski, Idea wielokulturowości. Tradycja Rzeczpospolitej i doświadczenia obecne [The concept of multiculturalism. The tradition of Rzeczpospolita and today’s experience], Oficyna Wydawnicza Szkoły Głównej
Handlowej, Warszawa 2010, p. 30 and later.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
by: Catholic Poles, Orthodox Russians, Lithuanians, Armenians, Muslims,
Tatars, Karaites, Jews. Given such a melting pot of religions and nationalities, full tolerance and none of enforcement by Catholicism need to be
stressed here. The Republic of Poland guaranteed autonomy, an opportunity to follow one’s own lifestyle and cultural heritage. These different
cultures were under the direct supervision of the rulers of the Crown and
Lithuania. These rulers granted to religious or ethnic minorities privileges which indicated the place of their settlement and type of business, e.g.
craft, trade, land holding, farming. The Jews received the greatest autonomy as the most populous and skillful community.
The multiculturalism in Eastern Poland can be thought of as a continuum
which needs to be understood in terms of the degree or level of differentiation
by relevant dimensions, and not as an absolute phenomenon. Multiculturalism that is the coexistence of different values ​​and customs within a single state becomes increasingly important and provokes thought, especially
in view of determinants of growth. Multiculturalism may be regarded with
reference to „a territory – usucapion or a process – referring to revealing
differences, revival of ethnic and nationalist movements, emergence of new
independent states, and in the context of migration and democratisation”16.
Modern regions are becoming more and more culturally diverse. One should
notice that legislation and globalisation contribute to this diversity. The cultural diversity of Eastern Poland may facilitate social changes in this region
but at the same time it is influenced by it. One can also claim that the cultural diversity of this region is its competitive advantage in today’s market.
Regions that managed to tame their cultural diversity are positively perceived and can attract both investors and human capital. Furthermore, regions with highly diverse culture can be more creative and innovative than
others. The cultural diversity of Eastern Poland brings more information,
16
J. Nikitorowicz, Pogranicze. Tożsamość. Edukacja międzykulturowa [Borderland. Identity. Intercultural education], Wyd. Uniwersyteckie Trans Humana, Białystok 1995, pp. 63-73.
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which can increase its flexibility with respect to changing conditions, including the ones of the economic environment, coping with crises.
J. Siewierski states that „many cultures can be understood as the sum
of mono-cultures coexisting in a compatible social environment though also
strongly autonomous and separated. Generally, excluding perhaps agreeable coexistence, this is typical of most European societies. Multiculturalism may be, however, understood as trans-culturalism, constant diffusion
and interpenetration. In the former case, a cultural identity is preserved
by separation but communication between cultures is neglected, whereas
in the latter one, on the contrary, mutual communication kills identity and
creates a hybrid culture”17. This corresponds to the idea of interculturalism
which is distinguished by the nature of social relations prevailing in a given
community. Interculturalism is, in turn, a model in which different ethnic,
national, or religious groups that live in the same area interact with each
other in an open, regular and sustained way. Such contacts are accompanied by an understanding of different lifestyles and mutual respect shown
to recognised values ​​and standards. This concept relies on the dialogue
to prevent any cultural conflict. By learning about different cultures and
interacting with them, people enrich their own personalities. Any hierarchies of cultures are eliminated so cultures are equal and evaluated by their
own values only. The boundaries between multiculturalism and interculturalism are slowly fading away. Multiculturalism and interculturalism can
be discussed in today’s society unless tolerance and intercultural dialogue
are mentioned. These are two essential elements to ensure good relations
between different ethnic groups and cultures. It is worth pointing out that
multiculturalism is a dynamic, constantly changing process in which cultural diffusion, hybridisation or assimilation occur. A policy of multiculturalism should, therefore, teach people how to respect diversity and should
17
J. Siewierski, Idea wielokulturowości. Tradycja Rzeczpospolitej i doświadczenia obecne [The concept of multiculturalism. The tradition of Rzeczpospolita and today’s experience], Oficyna Wydawnicza Szkoły Głównej
Handlowej, Warszawa 2010, p. 9.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
give a chance to preserve one’s national identity. Diversity is recognised
as a factor that can activate social, political and economic growth, and social relations are considered from the perspective of individuals rather than
a group. Accordingly, an individual has got the right to have and express
his or her own identity, difference and distinctiveness as long as they do
not infringe rights of others. Adopting a particular model of cultural diversity or dealing with it as a paradigm as well as fundamentals of a nature
of a given environment are also associated with the appropriate way of defining the situation of individuals and groups in society as well as the development of an appropriate concept of education.
J. Siewierski introduced an extremely interesting model of multiculturalism and claimed that „the principle of multiculturalism was followed peacefully in the union in Polish-Lithuanian Commonwealth unlike the European
Union because Poland required no different cultural communities to respect
individual’s rights and, in general, did not interfere with the internal life
of self-governing communities whose frameworks defined itself ”18. J. Siewierski claims that this approach was successful thanks to the following collectively developed rules:
ƒƒ the principle of separation consisted in voluntary separation accepted
by parties but representatives of a community could still join the life
of broader society;
ƒƒ the principle of autonomy meant subordination to its own regulations, judicial authorities and government representatives elected
from among themselves;
ƒƒ the principle of the priority of a community over an individual;
the rights of communities dominate the rights of individuals who
were subordinated to the authorities of his or her community19.
18
19
J. Siewierski, Idea wielokulturowości..., op. cit., p. 9.
J. Siewierski, Idea wielokulturowości..., op. cit, pp. 85-86.
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KATARZYNA SOŁKOWICZ
The skillfully applied multiculturalism of Eastern Poland to gain a competitive advantage of this region gives unique opportunities so particular attention should be paid to match it harmoniously to the existing conditions
while ensuring stability and protection against conflict. Mutual understanding must depend on both tolerance and the ability to interact. The process
of communication is becoming a bridge of between different cultures that
function within a community. Social interaction can lead to a common understanding of specific content. In the case of the different cultures of Eastern Poland, communication creates opportunities for avoiding erroneous
perception or misinterpretation in terms of a language, behaviour, attitudes,
and symbols. It seems that communication in the model of multiculturalism serves a kind of blood circulation of a regional community. The features
which can definitely ensure conditions for coexistence of different cultures
include: understanding, empathy, tolerance, communication, no prejudice
and discrimination. The quality of communication impacts on inhabitants’
satisfaction, standard of living, productivity and efficiency of their actions,
involvement in the life of a given region. Humboldt offers an extremely interesting theory of language: „the language is not created by nations but
it is a gift assigned to them by their internal development. (...) however,
it can be applied consciously only if members of a given community are intellectually mature; languages can be regarded as​​limited from the outset and
nation-dependent”20.
Religiosity which is strongly rooted in families and schools denotes
the multiculturalism of Eastern Poland. Most of the population of this region
are Christians, mostly Catholics as well as Orthodox Christians and a small
number of Muslims. Nevertheless, one should notice an utterly significant
role of Jewish culture in shaping the cultural identity. Jews rarely assimilated into a given community. They rather sought to consolidate their identity.
20
E. Kowalska, Wprowadzenie do Rozmaitość języków a rozwój umysłowy ludzkości [Introduction to On Language: The Diversity of Human Language-Structure and its Influence on the Mental Development of Mankind] W. von Humboltd, Wydawnictwo KUL, Lublin 2001, p. 14.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CULTURAL POTENTIAL
Religious beliefs seem to be an important part of personal and family life.
Religion as an integrating element enables storing the experience of past
generations and maintaining the continuity of cultural heritage. However,
religious beliefs are becoming more specific of individuals or their families.
Here, one needs to mention the role of a language as a tool of communication which primarily integrates and differentiates the multicultural population of a region.
Summary
In conclusion, cultural potential has a strong impact on the development
of Eastern Poland and is a kind of agreement in the region to unite its inhabitants and overcome any barriers to cooperative promotion of regional
economy, cooperation for the regional environment, infrastructure, implementation of joint projects on sport, education, culture. Culture is neither
the only nor the most important factor in the development and functioning of Eastern Poland. Cultural factors can be studied from different points
of reference if their impact on this process is regarded. These points of reference may result from a specific system of general cultural values and refer
to the individual domains of social life where they function locally. To distinguish between universal and regional levels is essential for conditions of development. Universal values determine a certain shape of this process and
also partly its nature. It is worth pointing out that it must be subject to much
attention as the relationship between the world of culture and various elements that determine its development need to be examined all the time.
It may be more difficult to identify successive layers of culture that influence
social change and development. Some values and
​​
norms are not always observed by residents of a region and remain a declaration only, while others
may be truly followed. Undoubtedly, there are some common elements that
bring about a similar behaviour of inhabitants of Eastern Poland. Attempts
to study this issue will be continued because of the significance of different
elements of the cultural potential of Eastern Poland for development as well
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KATARZYNA SOŁKOWICZ
as the resulting popularity of research on the relationship between cultural and economic potentials. Thus, it is worth discussing the identification
of cultural factors in the development of Eastern Poland to draw attention
to their potential drawbacks and find the most reliable ways to operationalise cultural potential in a given research context.
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
MARIUSZ SAGAN
Five regional capitals
and their development potential
The Polish regional capitals, or capitals of 16 voivodships in Poland are regarded as centres with potential that should impact on their region’s environment, create jobs, innovation and knowledge and stimulate entrepreneurship.
The regional centres of Eastern Poland seems to play the special pro-development role as they are located in the most deprived area of ​​high growth
which is the most of the east of Poland. Their economic, social, cultural,
innovation potentials should bring wealth and new ideas to their regions1.
The largest cities of eastern Germany that develop modern industries, e.g.
automotive industry and business services and diffuse their development
1
M. Sagan, Potencjał rozwojowy miast wojewódzkich Polski Wschodniej [Development potential of the regional
capitals in Eastern Poland] [in:] Strategiczna problematyka rozwoju Polski Wschodniej [Strategic issues for
the development of Eastern Poland], eds. D. J. Błaszczuk, M. Stefański, Innovatio Press, Lublin 2010, p. 197.
148
MARIUSZ SAGAN
into their regions can serve a good example of the impact of rapidly growing cities on their poor regions.
The literature cannot clearly define city’s potential. In this monograph,
the author adopts that city’s economic potential is a combination of many
socio-economic, cultural, demographic, technological and institutional variables which can determine the rate of development of a given centre and
its impact on its immediate environment and region. Economic potential
is measured by quantitative and qualitative indicators though they refer primarily to city’s “economic weight”, e.g. the total of GDP generated in the city/
agglomeration, and to a lesser extent these indicators are calculated per capita.
The literature focuses more on defining region’s potential. For example,
the strategic government document on the development of Eastern Poland
has listed and analysed four types of development potential, i.e. social, economic, institutional and spatial2. Demographic trends, level of education and
qualifications of labour force, incomes of population and local government,
living conditions were studied as social potential. Economic potential, according to the authors of the report, consists of GPD per capita, productivity
and sectoral structure of economy, innovation in business, and level of foreign direct investment. The third potential, i.e. institutional refers to the level
of development of higher education, R&D, access to the Internet, efficiency
of local government and business environment institutions. The last potential, i.e. spatial focuses on metropolitan functions of provincial cities, their
accessibility, geopolitical and tourism spaces.
The Polish literature on the subject offers a number of studies on the potentials of selected cities and regions, but it insufficiently focuses on the potential
of the regional capitals of Eastern Poland which should trigger development
and diffuse wealth to their closest neighbourhood, just like the largest metropolitan areas in Poland which can combine their rapid growth and strong
2
Strategia rozwoju społeczno-gospodarczego Polski Wschodniej do roku 2020 [Strategy for Socio-economic
Development of Eastern Poland until 2020], document adopted by the Council of Ministers on 30 December 2008 by Act 278/08, Ministry of Regional Development, Warszawa 2008, pp. 25-47.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
positive impact on their regional environment. Report Strategy for Socio-economic Development of Eastern Poland until 2020 mentions only that the metropolitan functions of the regional capitals of Eastern Poland are poor and
what is more, these cities are insufficiently connected with the rest of Poland3.
The growth of potential of regions and metropolitan areas depends on
combining certain factors, i.e. exogenous and endogenous. The endogenous growth theories emphasise the quality and price of human capital
as well as the relationship between these two variables as an important factor in the processes of real convergence and growth of potentials of a country, region, and city/agglomeration. The important areas of endogenous
development include knowledge
​​
and science, technology and innovation4.
The literature on the subject provides several interpretations of the endogenous growth theories. The following factors of endogenous regional development are mentioned: entrepreneurship and innovation, culture and tourism,
environment and renewable energy, modern agriculture and food processing,
inter-regional cooperation and management by local government5.
The new concepts on regional and urban development treat the creative
potential of inhabitants and institutions as one of key factors in transition
from traditional to modern ways of development6. This means that talented
city residents become a key resource to trigger rapid development of local/
regional economies based on knowledge, investments in technology, culture, science and art, accompanied by appropriate support by business in3
4
5
6
Ibidem, p. 42.
W. Orłowski, W pogoni za straconym czasem. Wzrost gospodarczy w Europie Środkowo-Wschodniej 19502030 [Making up for lost time. Economic growth in East-central Europe], PWE, Warszawa 2010, pp. 207-210
Analiza aktualnej sytuacji, trendów rozwojowych i prognoza zmian społeczno-gospodarczych w województwie
lubelskim [Studying the current situation, development trends and forecast for socio-economic changes
in the lubelskie voivodship], Instytut Badań i Analiz Olsztyńskiej Szkoły Biznesu, Urząd Marszałkowski Województwa Lubelskiego, Lublin 2009, p. 31.
G-J. Hospers, R. van Dalm, How to create a creative city? The viewpoints of Richard Florida and Jane Jacobs,
“Foresight” 2005, Vol. 7, no 4, pp. 9-10. Compare: J-M. Rousseau, Europejskie regiony w kontekście globalnej
bitwy o przyszłość [European regions and the global battle for the future], [in:] Problematyka przyszłości
regionów. W poszukiwaniu nowego paradygmatu [The Future of European Regions. Looking for a New
Paradigm], eds. P. Jakubowska, A. Kukliński, P. Żuber, Vol. 1, Ministry of Regional Development, Warszawa
2008, p. 107.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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MARIUSZ SAGAN
stitutions, NGOs and local governments7. The result is the increasing added
value derived from the so-called creative industries that can absorb individuals’ talent, artistic skills and a broad innovative potential to produce unique
and competitive goods and services. The sale of such goods and services
in the global market is now more than 3% of global exports of goods and
services8. The UNCTAD recognises as creative industries: cultural heritage
(festivals, museums, libraries, etc.), the arts, media (electronic and print),
functional services (designing and pattern-designing, computer games, architecture, advertising, etc.)9. Development in creative cities can be triggered
by creative industries, creative economy, creative employment concentrated
there and interesting cultural offers that can encourage foreign investors.
The report by UNCTAD and UNDP on creative economy indicates that
development is triggered by factors such as: technology, the demand for creative products and services, and tourism10. Thus, the question is which cities
– regional capitals of Eastern Poland besides traditional potential have got
creative potential to be capable of offering a higher level of prosperity and
attractiveness to their residents in the future and thus which could favour
the process of turning these centres into metropolises. By far no comprehensive answer has been given to this question.
The development of the cities of Eastern Poland should also be considered in the wider context of the processes of the global economy, the European Union and the adaptations made by decision-makers in Poland to adapt
to new strategic and institutional realities and business signals from outside
the country. As soon as the Lisbon Strategy failed to be implemented, the European Union prepared a strategic framework for development until 2020.
These assumptions are in the document entitled Europe 2020. A European
See: R. Florida, The Economic Geography of Talent, “Annals of the Association of American Geographers”
2002, 92(4), pp. 743-755.
8
Creative economy. Report 2008, The Challenge of Assessing the Creative Economy: towards Informed Policymaking, UNDP, UNCTAD, Geneva, New York 2008, p. 115.
9
Ibidem, p. 14.
10 Ibidem, p. 23.
7
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
strategy for smart, sustainable and inclusive growth11. They slowly become
the point of reference for the strategy drawn up at national and regional levels. They should also be taken into account by the cities of Eastern Poland.
The European Union sets out three strategic objectives to be achieved by
2020: a) “smart” growth based on knowledge and innovation, b) “sustainable”
growth based on increasingly renewable energy sources, and c) “inclusive”
growth which also contributes to achieving better social and territorial cohesion12. This means that the programming of regional development in Poland, which is implemented mainly by EU funds, shall take account of these
three goals. For the cities of Eastern Poland, the new strategy will involve
first of all better assistance to their schools of higher education and scientific
centres and innovative companies as well as the Lublin Metropolitan Area13.
The new urban EU policy 2014-2020 could serve as additional support
to the cities of Eastern Poland. This new trend in the EU regional policy consists in strengthening urban areas as key initiators and diffusers of growth.
As for national development conditions in the five cities, the National Regional Development Strategy also envisages that the voivodships of Eastern
Poland will be able to play a decisive role in the restructuring of the whole
area as soon as they reach their appropriate critical mass14.
This chapter discusses the basic elements of the development potential of the five regional capitals of Eastern Poland, i.e. economic, academic,
and governmental, cultural and tourism potentials, given in figures. Also,
the paper attempts to assess the potential of the regional capitals of Eastern
Poland and to formulate the recommendations concerning the future poliEurope 2020. A European strategy for smart, sustainable and inclusive growth, COM (2010) 2020, European
Commission, Brussels 2010.
12 Ibidem, p. 3.
13 Koncepcja Przestrzennego Zagospodarowania Kraju 2030 [National Spatial Development Concept 2030]
adopted by the government in December 2011 recognizes the city of Lublin as the only city in Eastern Poland that is a fundamental centre in the Polish settlement system and economy (national metropolia).
Consequently, Lublin is obliged to create a metropolitan area.
14 Krajowa Strategia Rozwoju Regionalnego 2010-2020: Regiony, Miasta, Obszary wiejskie. Projekt [National Strategy of Regional Development 2010-2020. Regions, cities, rural areas. Draft], Ministry of Regional Development, Warszawa, September 2009 r., p. 63.
11
EASTERN POL AND. DEVELOPMENT CHALLENGES
151
152
MARIUSZ SAGAN
cies of state intervention in this area, mainly assisted by the proposed 20142020 EU funds and the methods of their implementation.
1. Economic potential
Lublin is the largest centre in Eastern Poland. In 2010, its population was
348,000 and Lublin agglomeration had more than 700,000 inhabitants15.
The second largest centre in Eastern Poland is Bialystok (295,000 residents).
The populations of the next three cities are much smaller, i.e. 203,000 in Kielce,
176,000 in Olsztyn and 178,000 in Rzeszów (twice less than in Lublin)16.
The regional capitals of Eastern Poland have, therefore, much smaller population potential than centres of intensive development in Western Poland.
Moreover, these cities are the capitals of five least economically developed
regions in Poland. The already poorly developed regional surrounding
of the regional capitals of Eastern Poland is believed to significantly block
and hamper their economic development and metropolitan functions.
Lublin has got the best economic potential among these cities, see Table
1. This city generates the highest level of employment in the enterprise sector, i.e. nearly 56,000 employed in the first half of 2009, and the enterprises
from Lublin achieve the highest revenue, i.e. PLN 15 billion. The largest number of entities of the national economy, i.e. nearly 40,000 are seated in Lublin, and what is especially important, the majority of foreign investment
companies, i.e. nearly 460. Lublin was indicated in the KPMG report as one
of the eight key locations for Shared Services Centres (SSC) just like Kraków,
Lubelski Obszar Metropolitalny [Metropolitan Area of Lublin], Statystyczne Wademekum Samorządowca,
Urząd Statystyczny w Lublinie, Lublin 2011, p. 4, Miasta Wojewódzkie. Podstawowe dane statystyczne [Regional Capitals. Basic statistics], Urząd Statystyczny in Poznań, Główny Urząd Statystyczny, Warszawa, November 2009, p. 14.
16As in: Miasto Kielce [City of Kielce], Statystyczne Wademekum Samorządowca, Urząd Statystyczny in Kielce,
Kielce 2011, pp. 1-4, Miasto Olsztyn [City of Olsztyn], Statystyczne Wademekum Samorządowca, Urząd Statystyczny in Olsztyn, Olsztyn 2011, pp. 1-4, Miasto Białystok [City of Białystok], Statystyczne Wademekum
Samorządowca, Urząd Statystyczny in Białystok, Białystok 2011, pp. 1-4, Miasto Rzeszów [City of Rzeszów],
Statystyczne Wademekum Samorządowca, Urząd Statystyczny in Rzeszów, Rzeszów 2011, pp. 1-4.
15
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
Łódź, Poznań, Szczecin, Trójmiasto, Warsaw and Wrocław17. This proves that
Lublin is capable of attracting industrial investment as well as modern services. Six large SSCs are located in Lublin: Genpact, Proama, Orange, PKO
BP / Inteligo, Asseco Business Solutions, e-sąd18 and several smaller centres.
The rest of the regional capitals of Eastern Poland are considered either as unattractive or of regional importance only (for this type of investment)19. Lublin has the highest share of services in total revenue of enterprises despite
its relatively low number of enterprises, i.e. 1,194 per 10,000 inhabitants. 20
Table 1. Selected indicators of the economic potential in the regional capitals of Eastern Poland.
Average emEntities of the
ployment
national econin the sector of
omy
enterprises
(for 30 June
(January-June
2009)
2009)
Foreign
enterprises
(for 30 June
2009)
Revenue of
Revenue of
industrial
enterprises
enterprises
(January-June
(January-June
2009)
2009)
55,791*
39,162
458
15.0 BLN PLN
1.7 bln PLN
2. Białystok
38,606
29,744
251
6.56 bln PLN
1.7 bln PLN
3. Olsztyn
31,015
21,254
242
4.29 bln PLN
2.4 bln PLN
4. Rzeszów
45,475
19,448
209
6.33 bln PLN
1.4 bln PLN
5. Kielce
38,501
28,258
242
7.08 bln PLN
1.3 bln PLN
1. Lublin
* Figures in bold and underlined stand for the highest value of a given parameter among the five cities
** Figures in italics and underlined stand for the lowest value of a given parameter among the five cities
Source: Miasta Wojewódzkie..., pp. 17, 25-27.
Kielce is also a city of significant economic potential, especially if the data
on enterprises there is compared to its population21. The strong point of Kielce
is its high level of entrepreneurship, i.e. the number of entities per 10,000 resiPoland as the destination for Shared Services Centers, KPMG in Poland, Warsaw 2009, Chapter 5.
Onshore, Nearshore, Offshore: Unsure?. A 2010 Polish Perspective, Jones Lang LaSalle, Warsaw 2010, p. 9.
19 Olsztyn and Rzeszów have got one SSC only each, i.e. Citi Group and Pratt&Whitney, respectively. No SSCs
are reported there in Kielce and Białystok. See: Ibidem.
20 Miasto Lublin [City of Lublin], Statystyczne Wademekum Samorządowca, Urząd Statystyczny in Lublin, Lublin 2011, pp. 3-4.
21 The rates of entrepreneurship are as in: Miasto Lublin..., pp. 1-4, Miasto Kielce..., pp. 1-4, Miasto Olsztyn..., pp.
1-4, Miasto Białystok..., pp. 1-4, Miasto Rzeszów..., pp. 1-4
17
18
EASTERN POL AND. DEVELOPMENT CHALLENGES
153
154
MARIUSZ SAGAN
dents in this city is 1,401, which is the highest among the studied cities as well
as its highest, ranked second after Lublin, revenue in the sector of enterprises.
Białystok also shows a considerable economic potential. This city ranks second in Eastern Poland in terms of the number of enterprises, including foreign
investment ones. However, its rate of entrepreneurship is clearly the lowest
among the studied cities, i.e. only 1,058 entities per 10,000 residents. Rzeszów
has got a high level of employment, i.e. over 45,000 employed, ranked second
in this group of the cities but the lowest number of enterprises and the lowest number of foreign investment companies as well as the relatively low rate
of entrepreneurship, i.e. 1,196 companies per 10,000 residents. Also, Olsztyn
shows weak economic potential despite its relatively high rate of entrepreneurship – 1,246 companies per 10,000 residents. This city has got low employment
and business revenue as well as is much dependent on industry, i.e. Michelin
which is actually the largest plant in Olsztyn (this city has got the highest industry-generated revenue compared to the other cities of Eastern Poland, which
is clearly related to the investment by the French concern).
Economic potential can be reflected in, e.g. indicators on national gross
product. Although the GDP statistics prepared by Główny Urząd Statystyczny [Central Statistical Office] do not relate directly to the cities of Eastern
Poland in their administrative boundaries but can perfectly reflect any economic changes in individual metropolitan areas and their surroundings.
This is especially true of the three cities, i.e. Lublin, Bialystok and Rzeszów
where the corresponding NUTS 3 sub-regions coincide perfectly with an
area of agglomeration (or potential agglomeration). This can also enable
the estimation of GDP per capita in each city.
The consolidated data in Table 2 shows that the richest sub-regions (and
thus probably the wealthiest agglomerations) in Eastern Poland are the subregions of Lublin (with the city of Lublin) and Bialystok (with the city
of Bialystok)22, whereas Rzeszów is the weakest regional capital of Eastern
22
Estimated data on the GPD per capita in Lublin and Białystok were provided by consulting office PwC.
As specified, the GPD per capita in Lublin in 2008 was 111% of the national average, whereas in Białystok
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
Poland if the criterion of GDP per capita is adopted. Thus, the power of impact of Rzeszów on south-eastern Poland is, and is likely to remain, negligible. On the other hand, the sub-region of Rzeszów reduced its development
gap (the gap in GDP) compared to the national average as the only sub-region in the studied period of 2000-2010.
The city of Lublin and the sub-region of Lublin face some adverse changes. Its GDP per capita related to the national average was 92.0% in 2000 but
this rate lowered to 87.7% in 2010. It is difficult to analyse this phenomenon in Olsztyn and Kielce because the GDP figures refer to a much larger
area than just a city and its metropolitan area. It should be pointed out that
the agglomeration of Olsztyn left the farthest behind the national average
as its indicator – GDP per capita reduced as much as 7 percentage points.
Table 2. Changes in GDP per capita in the metropolitan sub-regions of Eastern Poland in 2000-2010
PKB per capita
(Poland=100)
2000
2002
2003
2004
2005
2006
2007
2009
2010
Sub-region of Lublin
92.0
91.7
89.5
86.9
85.5
84.9
85.1
87.9
87.7
Sub-region of Białystok
89.8
89.3
89.4
86.4
85.2
85.5
86.4
86.4
84.5
Sub-region of Olsztyn
88.8
86.9
90.3
87.7
86.7
84.8
82.6
82.4
81.6
Sub-region of Rzeszów
78.2
78.7
77.4
76.0
76.7
75.0
73.6
80.2
80.0
Sub-region of Kielce
84.0
82.0
82.7
82.1
80.0
80.1
82.6
83.9
81.5
Source: Own calculations based on Produkt Krajowy Brutto. Rachunki regionalne w 2010 r. [Polish GPD. Accounts in regions in 2010], Urząd
Statystyczny in Katowice, Katowice 2012, pp. 102-107, Produkt Krajowy Brutto. Rachunki regionalne w 2009 r. [Polish GPD. Accounts in regions in 2009], Urząd Statystyczny in Katowice, Katowice 2011, pp. 105-110, Produkt Krajowy Brutto. Rachunki regionalne w 2007 r. [Polish
GPD. Accounts in regions in 2007], Urząd Statystyczny in Katowice, Katowice 2009, pp. 140-149
2. Academic potential
Human capital, closely related with the quality of higher education and
the level of education in a given academic centre is considered to be one
of the key factors of endogenous regional development. The quality of human capital determines the way of development of a city and decides on its
102%. See: Raporty na temat wielkich miast Polski, Lublin, Białystok [Reports on the large cities in Poland.
Lublin, Białystok], PwC, Warsaw 2011, p. 5.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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MARIUSZ SAGAN
specialisation: rooted in traditional services and industries or that can create
a sector of modern services, e.g. Business Process Outsourcing, designing and
a sector of creative products23. Human potential in cities can also determine
the opportunities to create entrepreneurship in a given area both in terms
of the opportunities to develop traditional start-up businesses and innovative high-tech companies like spin-off ones. The development of the latter
ones is impossible if there are no high-quality higher education institutions
and mechanisms to transfer technology to a private sector.
A number of public and private higher education institutions operate
in the regional capitals of Eastern Poland. Table 3 summarises selected indicators, including academic potential of the cities – capitals of Eastern Polish
regions. A number of students is one of the indicators of academic potential although this indicator is not fully reliable as it does not cover technical and intellectual levels of students. In the academic year 2010/2011, most
students, i.e. over 82,000 studied in Lublin, whereas the least number, i.e.
39,000 in Olsztyn. The interesting thing can be a large disparity between
the largest academic centre in Eastern Poland, i.e. Lublin and the other four
centres that have a relatively similar number of students.
Table 3. Selected indicators of the academic potential in the regional capitals of Eastern Poland
Students
Foreign students*
PhD students
PhD degrees
2010/11
2010/11
2008/9
2010/11
Lublin
82,445
1,372
2,298
394
Białystok
45,547
1,001
412
123
Olsztyn
38,831
130
279
101
Rzeszów
54,529
94
295
40
Kielce
48,106
10
56
19
City
* data on state schools of higher education
Source: Own developed and calculated on Szkoły wyższe i ich finanse w 2010 r. [Schools of higher education and their finances in 2010],
Główny Urząd Statystyczny, Warszawa 2011, pp. 239-300, Statystyczne Wademekum Samorządowca [Statistical handbook for local authorities], Urząd Statystyczny in Lublin, Kielce, Olsztyn, Białystok and Rzeszów, GUS, Warszawa 2011, Bank Danych Lokalnych GUS.
23
M. Sagan, op. cit., p. 202.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
The ability of higher education institutions to create courses to be studied in foreign languages and to encourage foreign students to study them
is a very important indicator of academic potential. This strategic ability
is considered to be a key element in determining the competitive position
of higher education institutions in the educational market. The internationalization of studies increases the effectiveness and efficiency of higher education institutions, generates their higher revenue and positively impacts on
the processes of their restructuration and strategic changes24. Lublin stands
out positively among the academic centres studied as it is at the forefront
of Polish academic centres with the largest number of foreign students;
Białystok is ranked the second25. The success of these cities depends largely
on medical universities that attract students from the USA, Western Europe
and Asia. It is worth mentioning that foreign students who study in Poland can become a counterweight to the impending demographic decline
in Poland. The other centres in Eastern Poland have much less foreign students, which means a low level of education and research potentials of their
schools of higher education. In terms of opportunities for business coupled
with science, academic potential is reflected in a number of PhD students.
The examination indicates that PhD students show a high potential of economic cooperation (potential entrepreneurs and potential employees that
are capable of transferring their knowledge from universities to their enterprises). Most doctoral students, i.e. nearly 2,300 studied in Lublin, which
is almost six times more than in Bialystok, ranked the second; and almost
eight times more than in Olsztyn and Rzeszów. As a result, in the academic
year 2010/2011, the majority of doctoral degrees were defended in Lublin,
whereas the least in Kielce (Table 3).
See more: M. Sagan, Przewagi konkurencyjne polskich uczelni wyższych na globalnym rynku edukacyjnym
[Competitive advantages of Polish universities in the global educational market], „Zeszyty Naukowe WSEI”
Seria Ekonomia, Lublin 2011, no 1.
25 Internationalization indicators, i.e. share of foreign students in the total number of students in a city in Lublin and Białystok in 2010 amounted to 1.8% and 2.4%, respectively and are also one of highest in Poland.
24
EASTERN POL AND. DEVELOPMENT CHALLENGES
157
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MARIUSZ SAGAN
To comprehensively present the academic potential in the studied cities,
the indicators for their potentials were calculated total, based on the rating
of higher education institutions by Rzeczpospolita and Perspektywy (for 2004,
2009 and 2012) which is the most meaningful and recognized as reliable and
impartial26. This rating measures prestige, academic power, internationalization and studying conditions. The results are given in Table 4.
Table 4. Summary of the rating of the academic centres in the regional capitals of Eastern Poland
Rating of the academic
centre
1. Lublin
2. Białystok
3. Olsztyn
4. Kielce
5. Rzeszów
Points awarded
in 2012
Points awarded
in 2009
Points awarded
in 2004
30
25
10
4
4
40
17
8
4
4
48
14
8
4
4
Source: Own calculation based on: Ranking Szkół Wyższych 2012 [Rating on schools of higher education in 2012], „Rzeczpospolita”, Ranking Szkół Wyższych 2009 [Rating on schools of higher education in in 2009], „Rzeczpospolita”, 12 May 2009, Ranking Szkół Wyższych
2005 [Rating on schools of higher education in in 2005], „Rzeczpospolita”, 12 April 2005.
The best total position in 2012 was held by Lublin (33 points) and then
Bialystok (22 points)27. Compared to 2004, the academic position of Lublin
(according to this indicator) clearly weakened, whereas the results of Bialystok improved. Olsztyn was ranked as the third, and the universities from
Kielce and Rzeszów show poor results here. Actually, there is a kind of academic gap between Lublin and Bialystok as the strongest academic centres
in Eastern Poland and very weak academic institutions from Rzeszów and
Kielce. Simultaneously, these two cities did not show any improvement over
the period, and their disadvantageous position in terms of quality of their
26
The synthetic indicator of the academic potential of regional capitals in Eastern Poland refers to the following criteria: established rank for each position (by tens) in the global ranking for Poland. 20 points were
awarded if in the 10 top, 15 points if in the second 10, 10 points if in the third 10, 8 points if in the fourth 10,
and 5 points if in the fifth 10. 2 points were awarded for positions from 51 to 75 and 1 point was awarded
for position beyond 75. Universities only are indicated in this summary.
27 Uniwersytet Medyczny in Białystok holds in the Rzeczpospolita rating the 1st place among the schools
of higher education in Eastern Poland, which is the 17th position in Poland.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
teaching and status of their higher education institutions was deepened.
The higher education institutions from Rzeszów, i.e. Rzeszów University
of Technology and University of Rzeszów and from Kielce, i.e. Jan Kochanowski University of Humanities were ranked in the Rzeczpospolita Rating
as 51, 54 and 57, respectively. The general marks awarded to the individual
cities are reflected in the selected academic indicators such as the development of academic staff. In 2010, the title of professor was granted to 36 academics in Lublin, 18 in Bialystok, while only 2 in Rzeszów. In the same year,
a PhD degree was granted to 47 academics in Lublin and only 2 in Rzeszów
and Kielce!!! 28 The academic centre of Lublin is ranked as the 6th in Poland
in terms of the number of papers published in journals included in the ISI
Master Journal List. The rest of the regional capitals of Eastern Poland, especially Olsztyn, Rzeszów and Kielce occupy the end of this rating29.
The entrepreneurial activity of the students’ community can reflect
to some extent the potential of the academic character of a city, especially
in the time of knowledge-based economy. The higher city’s academic potential and the quality of its academic accumulated human capital is, the number
of incubated enterprises at universities, including spin-offs should be higher30.
This principle seems to be true in the case of the regional capitals of Eastern
Polish regions. The most of companies is incubated in the strongest academic
centres of Lublin and Bialystok where there were around 60 companies31 at
the Academic Incubators of Entrepreneurship (AIE)32 in both cities in early 2012. In the smaller centres like Olsztyn and Rzeszów, there were 9 and
14 micro-businesses, respectively. Kielce is an interesting case as the number
28
Szkoły wyższe i ich finanse w 2010 r...., pp. 294-306.
29As in: Polska 2030. Wyzwania rozwojowe [Poland 2030. Development challenges], Kancelaria Prezesa Rady
Ministrów, July 2009, p. 248.
See, e.g. the research in the USA: S. Y. Lee, R. Florida, Z. J. Acs, Creativity and Entrepreneurship: A Regional
Analysis of New Firm Formation, „Regional Studies” November 2004, Vol. 38, p. 890.
31 Academic Business Incubators are the most important institution that assists in establishing student enterprises in Poland.
32 According to the data published on the Academic Business Incubators’ website (data acquired in February
2012).
30
EASTERN POL AND. DEVELOPMENT CHALLENGES
159
160
MARIUSZ SAGAN
of incubated companies there, i.e. about 30 did not correspond with its position as an academic centre. However, Kielce, as already mentioned, is a city
with the highest entrepreneurship rate (number of companies per 10,000 inhabitants) among the five centres studied. Hence, its relatively high culture
of entrepreneurship encourages students to be more likely self-employed.
3. Potential of municipal government
The potential of municipal governments determines their ability to really
compete for external resources, i.e. financial capital, particularly foreign
investment, human capital, including the competition for students and
the so called creative classes. The ability to compete for scarce resources,
especially the abilities of these cities to absorb external funds will be largely
decided in the next few years of growth and development of these centres33.
The potential of the regional municipalities in Eastern Poland was assumed
to consist of two key elements: their ability to attract external investors and
ability to acquire external, basically EU funds. The potential to absorb students and partly outside investors have been discussed earlier.
Fund acquisition for development by local governments (EU funds)
Regional capital cities in Eastern Poland, except Rzeszów, to a small extent
made use of the opportunity of fund raising in the EU’s 2004-2006 perspective. Unfavourable to Eastern Poland and arbitrarily adopted, the allocation
algorithm of regional management (Integrated Regional Operational Programme) resulted in a limited amount of funding allocated to the said cities
over that period. The capacities to absorb funds for development in the 20072013 perspective are incomparably greater. Table 5 summarises the statistical data on the acquisition of EU funds by each of the cities in the current
financial perspective (2007-2013) from the three programs, i.e. Regional Operational Programmes, Infrastructure and Environment Operational Pro33
M. Sagan, Potencjał rozwojowy..., p. 205.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
gramme, and Development of Eastern Poland Operational Programme34.
This summary covers the projects with already signed grant agreements.
Moreover, the selected projects to be studied have to comply with the condition of EU funding in the amount of at least PLN 5 million. The data show
types of EU funding and their amounts that will be acquired by each city,
and thus what could be the inner potential of these cities to compete for external resources.
Białystok is the most active city as contracts for the largest pool were
signed there, i.e. for over PLN 843 million of the EU funding. Relatively
high amounts, i.e. PLN 635 million and 459 million were acquired by Lublin
and Kielce, respectively. The acquisition of EU funds by Rzeszów is the least
preferred. This city that was a leader in raising the EU funds in 20042006 in Eastern Poland has now become the weakest member in the group
of the four cities which attempt to effectively acquire the 2007-2013 EU
funds. By far, Rzeszów managed to gain PLN 163 million from the 20072013 EU budget only.
It is worth pointing out that the funds acquired by the regional capitals
in Eastern Poland largely come from the specific priorities of the Development of Eastern Poland Operational Programme, i.e. public transport and
road infrastructure and the Infrastructure and Environment Operational
Programme, i.e. sewage networks and water supply, waste management.
Therefore, these are large investments in infrastructure and largely indicated
earlier on the priority lists. In total, Białystok and Kielce acquired the largest
amounts of EU funds per capita to the end of 2011, i.e. PLN 2,858 and 2,252,
respectively. The rating is as follows: Lublin – PLN 1,822, Olsztyn – PLN
1,326, and finally Rzeszów – PLN 915 per capita35.
34
This summary does not include the funds from the Human Capital Operational Programme (negligible
value of the projects) and the Innovative Economy Operational Programme (local authorities are beneficiaries here but to a limited extent).
35 Own calculated on the data in Table 5 and demographic statistics.
EASTERN POL AND. DEVELOPMENT CHALLENGES
161
EASTERN POL AND. DEVELOPMENT CHALLENGES
-
5. Kielce
-
76.5
101.7
-
48.6*
Project EU
financing
in mln PLN
2
-
1
6
3
Number
of projects
288.5
-
55.1
649.6
405.1
Project EU
financing
in mln PLN
7
4
8
4
8
Number
of projects
170.8
86.6
77.1
193.6
181.3
Project EU
financing
in mln PLN
Regional Operational Programmes
Project EU financing
in total
in mln PLN
635
843
234
163
459
Number
of projects
15
10
11
7
9
Funds in total
* This summary includes the projects in which the EU funding was higher than PLN 5 million (Euro 1 mln was adopted as the estimated and standard limit of the EU funding).
Source: Own developed and calculated upon Mapa Dotacji UE [Map of EU funds], Ministry of Regional Development, the end of December 2011 (http://www.mapadotacji.gov.pl/)
2
3
4. Rzeszów
-
2. Białystok
3. Olsztyn
4
1. Lublin
Number
of projects
Infrastructure and Environment
Operational Programme
Development of Eastern Poland
Operational Programme
Number of projects
Table 5. Scope of 2007-2013 EU fund raising by the regional capitals of Eastern Poland (for the end of December 2011)
162
MARIUSZ SAGAN
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
4. Potentials of cultural communities and tourism
The ability to mobilize cultural communities and their resources and potentials is a key factor to develop creative entrepreneurship in a city, metropolitan area or region36. Consequently, not only more and more tourists
visit a given city but also more students come to study and in the long run
more and more new residents and new businesses (creative and other) appear. The regional capitals of Eastern Poland differ with this respect but
business results in each city, e.g. number of established creative enterprises
cannot be examined for no comparable statistical data. Thus, this examination depends on a partly reliable indicator which is the number of tourists
who visit a city. The potential of cultural communities needs to be analysed
more thoroughly and in detail.
Looking at how the creative class functions and develops by mobilising cultural communities, Lublin is the city that is coping best and is likely
to do so in the future, see Table 6. The city of Lublin was a strong candidate for the title of European Capital of Culture 2016 (the city participated
in the second and final stage of this competition) and is one of the largest
centres that create culture in Poland. Every year, more than 40 cultural festivals and massive events, especially Jarmark Jagielloński (Jagiellonian Fair)
and Carnaval Sztukmistrzów attract foreign and Polish tourists. It also has
numerous historical and cultural heritage sites, which has resulted in granting to Lublin two prestigious European titles, i.e. European Heritage Label
and Intercultural City. As a result, Lublin is visited by the largest number
of domestic and foreign tourists among the other regional capitals of Eastern
Poland, see Table 7. However, its poor accessibility is an obstacle to attract
as many visitors as the cities of Central and Western Poland.
36
N. C. Wilson, D. Stokes, Managing creativity and innovation. The challenge for cultural entrepreneurs, „Journal
of Small Business and Enterprise Development” 2005, Vol. 12, no 3, p. 367.
EASTERN POL AND. DEVELOPMENT CHALLENGES
163
164
MARIUSZ SAGAN
Tabela 6. Activities that support culture and tourism in the regional capitals of Eastern Poland
Tourist events
(10 top most frequently visited
mass events in Poland)
Labels/Titles of
European recognition
Jarmark
Jagielloński
(8th position)
110,000 visitors
1. European
Heritage Label
2. Intercultural
City
Białystok
-
Olsztyn
Candidate for the Number of culEuropean Capital tural festivals (per
of Culture 2016
year)
YES
43
-
YES
17
-
-
-
9
Rzeszów
-
-
-
5
Kielce
-
-
-
no data
Lublin
Source: Municipal Offices (Lublin, Białystok, Olsztyn, Rzeszów, Kielce)
The second ranked centre which is potentially capable of creating the creative class is Białystok. This city also competed for the title of European Capital
of Culture 2016. It has a huge resource of human capital in culture (almost
20 festivals per year) and is gradually attracting more and more tourists. Olsztyn is also able to develop based on its cultural potential. The other regional
capitals, i.e. Kielce and Rzeszów practically use no opportunities to stimulate
and create their culture – and tourism – based industries. In terms of culture and tourism, they are recognised as local centres. Perhaps, this tendency
results from their development strategies that focus more on the development of entrepreneurship and exhibition industry (Kielce) and aviation industry (Rzeszów).
Table 7. Accommodation offered in 2010 in the regional capitals of Eastern Poland
Number of
accommodation offered
Totally in thousands
Lublin
Białystok
Olsztyn
Rzeszów
Kielce
283.5
245.8
234.7
198.8
211.5
Source: Statystyczne Wademekum Samorządowca, Urzędy Statystyczne in Lublin, Kielce, Olsztyn, Białystok and Rzeszów, GUS, Warszawa 2011
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
5. Assessing the potentials of
Lublin, Białystok, Olsztyn, Rzeszów and Kielce
This study although it does not cover all issues enables some conclusions
and recommendations. These concern both the status of each regional capital of Eastern Poland and the entire region of Eastern Poland in terms of dynamically changing global economy and the emergence of new pro-growth
factors there as well as recent proposals by the Polish government to amend
the existing models of assisting regional development37. The considerations
on the potential of the five cities is summarised below. These cities are classified primarily in terms of their present and total potentials. The qualitative assessment is based on both the existing potential of these centres and
forecasts until 2020 on attracting external investors, acquiring the EU funds
and the activities of their academic and creative (culture) environment38.
Lublin (leader). This city has the greatest economic, academic, tourism,
cultural and creative potential. This potential has been accumulated for
many years but the agglomeration of Lublin economically developed slower in 2000-2010 than the national average and much slower than the largest
metropolitan areas in Poland like Warsaw, Poznań, Wrocław and Kraków.
Its economy is increasingly diverse and restructured but a share of modern industry and foreign investors is still insufficient. It is a city which by
2020 will maintain its leading position in Eastern Poland and can reduce its
development gap to Western Poland and Warsaw, providing its access to development stimuli improved (internal access and internationalising the city,
or external access). Its capacity and competitive position can be enhanced
by stimulating changes in the mentality of some of its residents, institutions
and businesses as well as by supporting the creation of business ecosystems
such as the strong IT industry and modern services (BPO/SSC, medicine).
37
38
See, e.g.: Polska 2030...
As in: M. Sagan, Potencjał rozwojowy..., p. 214-217.
EASTERN POL AND. DEVELOPMENT CHALLENGES
165
166
MARIUSZ SAGAN
Lublin also needs more governmental support to address its internal transport problems and to improve the quality of life of its residents.
Białystok (catching-up). This city has got much of economic and academic potentials and significant cultural and tourism potentials. An important
factor that can stimulate its growth in the following decade can be very large
inflows of the EU funds, external investors as well as the development of local
enterprises. An additional impetus for the development of Białystok will be
its better accessibility (road connections with Warsaw). These factors enable
the opinion that it is justified that the development gap between Białystok
and Lublin can be reduced. A very rapid development of academic potential in Białystok will continue to be an important factor in its development.
Kielce (potential city of business). Kielce with its considerable economic
potential (and high rates of entrepreneurship) and low academic, cultural
and creative potentials can still become a centre of rapid economic growth.
This growth will not probably be so much as in Lublin and Białystok based
on a combination of economic, academic and creative factors (preferably
without the latter two). Actually, its advantageous location in central Poland,
relatively easy access to the agglomeration of Warsaw and Kraków, the entrepreneurial potential of Kielce’s residents and the expected large inflow
of the EU funds are significant factors for the development of Kielce. This
city is also already one of the two most important exhibition centres in Poland (second after Poznań). The total potential of Kielce in 2020 will not be
so much as the potentials of Lublin and Białystok also due to the size of Kielce
and strong competitors like Łódź, Craków, Lublin and potentially Radom.
Kielce will likely be a wealthy medium-sized city of regional importance with
its limited total potential impact on the surrounding (the świętokrzyskie
voivodship only).
Olsztyn (prospective in the long run). Olsztyn in the previous many classifications holds in the middle of the ratings of potentials of the five cities.
It is a prospective academic, cultural and tourism centre. Its weak point
is its insufficient economic potential, which is accompanied by one dominant foreign investor. Moreover, its population potential is low, which makes
EASTERN POL AND. DEVELOPMENT CHALLENGES
FIVE REGIONAL CAPITALS AND THEIR DEVELOPMENT POTENTIAL
that any possible increase in this total potential will last long. Therefore, by
2020 Olsztyn will have remained a centre of regional impact (like Kielce).
Olsztyn is, however, the city in Eastern Poland that will be granted the highest EU support per capita in the next 5-6 years. This will improve the quality
of life and facilitate competition for external capital resources and students
and also the creative class in the future. Tourism should become a critical
stimulus of development in Olsztyn as now this city benefits insufficiently
from its location in the attractive for tourists part of Poland. On the other
hand, Olsztyn is increasingly dominated by Trójmiasto which is becoming
a strong economic centre.
Rzeszów (outsider). Among the regional capitals of Eastern Poland, its
potential is lowest. Rzeszów is the capital of the poorest region in Poland,
i.e. podkarpackie voivodship and the agglomeration of very low GDP per
capita. Rzeszów has not managed to increase significantly its total potential despite the time of its extensive growth, e.g. establishing the University
of Rzeszów, enlarging its airport, increasing the employment in the Aviation Valley cluster, shifting the labour force from its rural areas to the city
of Rzeszów and its very efficient absorption of the EU funds in the 20042006 perspective. It remains a very poor academic centre and even weaker
cultural centre. Rzeszów ranks the EU fund acquisition in 2007-2013 as last
as compared to the remaining regional capitals of Eastern Poland. Rzeszów
is absorbing foreign direct investment and locating it mainly in the aviation industry. In the long run, it may result in region’s dependence on a single, medium-innovative sector and lead to consequent problems (problems
of mono-cultural economy). This city should more diversify its economy
(by developing IT industry there) and invest in its cultural potential. Its peripheral location in Poland and the worst of all the studied cities connection
with Warsaw are its important problems. Its potential is insufficient to impact on the surrounding of south-eastern Poland and can be marginalised
by the much stronger centres of Kraków and Lublin.
EASTERN POL AND. DEVELOPMENT CHALLENGES
167
168
MARIUSZ SAGAN
Summary
As already indicated, the selected elements of the potentials of the regional
capitals of Eastern Poland and the selected cities should be assisted by the government more intensively than before. This support should be addressed
the most promising cities and areas of their functioning (supporting the key
functions). The author claims that additional development funds should
be directed primarily to the two centres of Eastern Poland with the greatest potential, e.g. Lublin and Białystok despite the fact that Bialystok was
wrongly omitted in the National Spatial Development Concept 2030 as one
of the potential metropolitan centres. 39 The economic potential of Kielce
and academic potential of Olsztyn should also be strengthened. The policy
towards Rzeszów needs to be considered: could be more effective to invest
additional funds in this city to boost its weak potential or could be a better
solution to allocate financial assistance also in some other economic driving
centres of the podkarpackie voivodship, especially Mielec and Stalowa Wola,
which could stimulate the development of the entire region and overcome
the unfavourable rating in terms of GDP and disposable revenue in the podkarpackie voivodship. The new 2014-2020 EU financial perspective should
support the development of infrastructure in the regional capitals of Eastern Poland (making infrastructure towards and within these cities) but also
a number of endogenous processes and activities, e.g. supporting academic potential which are associated with improving the internationalisation
of these centres and stimulating the initiatives by people, institutions, governments and businesses there.
39
It should be pointed out that regional financial assistance for the new 2014-2010 perspective could be accompanied, as the continuation of the Development of Eastern Poland Operational Programme, by additional priorities such as „Supporting the strongest metropolitan centers of Eastern Poland” to allocate
more funds for Lublin and Bialystok.
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
T E R E S A S Z O T- G A B R Y Ś
Factors Influencing
Entrepreneurship Development
1. The significance of entrepreneurship in economical development.
The level of entrepreneurship growth in Eastern Poland
In the 21st century, in the knowledge-based economy such factors as knowledge, innovation, social capital and entrepreneurship become more and
more important in economical and social development. The above mentioned factors are non-material and coexist with the traditional, acknowledged economical factors, capital, land and labor. There is a shared opinion
in scientific and economical circles that, in the free market economy, entrepreneurship is the driving force of economic development, and the dominant sector of micro, small and medium enterprises plays very important
social and economical roles. Individual entrepreneurship and the whole
MSMEs sector contribute to a decrease of unemployment rates through job
170
TERESA SZOT-GABRYŚ
creation and positively affect the economic structure, economic growth and
improvement of competitiveness and innovation in the economy1. Economic entities belonging to the sector of micro, small and medium enterprises
play important social and economical functions because: “on the one hand,
the MSMEs sector stimulates economic growth through an activation of innovative processes, which leads to a modernization of industrial structure
and, on the other hand, it generates new jobs and may ease social tensions by
providing entrepreneurial people with an opportunity of self-employment,
achieving success and elevating their social status”2.
The considerations included in this chapter concern the circumstances
and perspectives of economic development in Eastern Poland, on the background of a domestic economic situation, in the context of challenges and
expectations connected with the new EU Financial Perspective for the years
2014-2020. In this text, entrepreneurship is understood as a process of undertaking economic activity according to the regulations of Freedom of Business
Activity Act3 and conducting the activity in its initial stage. The socio-economical system change in Poland in 1989 resulted in a dynamic development of entrepreneurship. Nowadays, MSMEs constitute over 99% of all
economic entities. The statistical data for the years 2003-2009 concerning
the economic situation in Poland show a continuous increase of the dynamics
of newly established businesses, most of which are microenterprises. (Table
1). The number of closed businesses is also increasing, but in each of the analyzed years the number of newly established businesses was higher than
the number of the closed ones. In the years 2000-2003, the number of newly
established businesses within each year was decreasing. A positive alteration
of this trend was reported in 2005, most probably as a result of introduction
1
2
3
K. Safin, Zarządzanie małą firmą, Wydawnictwo AE im. Oskara Langego we Wrocławiu, Wrocław 2003, p. 51.
B. Piasecki, (ed.), Ekonomika i zarządzanie małą firmą, Wydawnictwo Naukowe PWN, Warszawa – Łódź 2001,
pp. 77-79.
Freedom of Business Activity Act of 2 July 2004, Dz. U. No 173, item 1807.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
of favourable revenue and legal regulations concerning social insurance rates
for individual entrepreneurs4.
Table 1. The number of newly established and closed businesses in Poland in the years 2003-2009
Year
2003
Year
2004
Year
2005
Year
2006
Year
2007
Year
2008
Year
2009
Newly established businesses,
including:
274 837
228 538
289 406
316 681
314 091
340 074
402 407
micro
265 946
223 863
282 517
311 732
309 248
334 286
396 733
small
7 569
4 144
6 144
4 409
4 317
5 180
5 240
medium
1 071
484
651
448
442
526
381
251
47
94
92
84
82
53
Closed businesses, including:
153 409
209 845
233 067
287 642
257 060
264 111
383 440
micro
148 202
204 979
228 171
283 271
253 100
257 717
377 920
small
3 888
3 723
4 059
3 742
3 348
5 166
4 726
medium
978
911
665
451
490
988
612
large
341
232
172
178
122
240
182
Businesses
large
Source: Report of the condition of small and medium enterprises sector in Poland in the years 2008-2009, Polish Agency for Enterprise
Development, Warsaw 2010, p. 229.
In the years 2001-2006, the business survival index for newly established
enterprises within the first year of their activity was between 61.5% and 67.6%,
4
High social insurance and health insurance rates were indicated as one of the main obstacles for undertaking economic activity by individuals. As a consequence of legal changes after 25 August 2005, an individual starting economic activity, who has not run any business within the previous 5 years and does not
provide services for the former employer, may, in the period of the first 24 months of business activity,
benefit from lower, preferential social insurance rates. The assessment basis for social insurance rate in this
period is 30% of minimum wage. Consequently the social insurance cost for fresh entrepreneurs is almost
two and a half times lower than for the existing enterprises paying social insurance according to regular
rates (in 2013, together with health insurance, the preferential rate was 414.85 PLN, while the regular rate
was 1026.98 PLN): Social Insurance System Reform Act of 1 July 2005, Dz. U. No 150, item 1248. The quoted
changes in the fiscal regulations introduced a 19% flat rate tax on income of individuals as enterprises.
EASTERN POL AND. DEVELOPMENT CHALLENGES
171
TERESA SZOT-GABRYŚ
while in the years 2007 and 2008 it was 70.7% and 76.4%, respectively5.
In spite of the economic crisis, also in the subsequent years, that is 2010 and
2011, the business survival index for newly established enterprises still grew
reaching 77.0% and 77.8%, respectively6.
Regarding the situation in Eastern Poland, i.e. Podkarpackie,
Świętokrzyskie, Lubelskie, Podlaskie and Warmińsko-Mazurskie voivodeships the number of newly established SMEs per 1000 inhabitants is the lowest in Poland (with the exception of the Opolskie voivodeship) but, at
the same time, the number of closed businesses is lower than in other parts
of the country7. The data have been presented in Tables 2 and 3.
Świętokrzyskie
Warmińsko – mazurskie
163 199
147 567
91 204
110 094
118 101
Proportion of the total number of businesses in Poland (%)
4.21
3.80
2.35
2.84
3.04
Number of businesses closed according
to the number of employees
13 960
13 462
9 566
11 832
14 425
Businesses
Number of businesses
0
Podlaskie
Podkarpackie
Table 2. Entities registered in the REGON register in 2009 by the number of employees
Lubelskie
172
321
647
328
225
363
13 791
13 325
9 471
11 677
14 198
10-49
142
113
78
130
201
50-249
18
14
12
16
19
> 249
9
10
5
9
7
3.64
3.51
2.49
3.09
3.76
0-9
Proportion of the total number of closed
businesses in Poland (%)
5Source: Report of the condition of small and medium enterprises sector in Poland in the years 2008-2009, Pol-
ish Agency for Enterprise Development, Warsaw 2010, p. 37.
6Source: Report of the condition of small and medium enterprises sector in Poland in the years 2008-2009, Pol7
ish Agency for Enterprise Development, Warsaw 2010, p. 70.
ibid, p. 142.
EASTERN POL AND. DEVELOPMENT CHALLENGES
Number of newly established businesses according to the number of employees
0
Warmińsko – mazurskie
14 991
Świętokrzyskie
18 163
Podlaskie
Podkarpackie
Businesses
Lubelskie
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
9 589
10 320
14 474
495
430
354
269
955
17 993
14 833
9 523
10 187
14 293
163
145
60
124
165
50-249
7
10
5
4
15
> 249
0
3
1
5
1
4.51
3.73
2.38
2.56
1.89
0-9
10-49
Proportion of the total number of newly
established businesses in Poland (%)
Source: Report of the condition of small and medium enterprises sector in Poland in the years 2008-2009, Polish Agency for Enterprise
Development, Warsaw 2010, pp. 85-131.
Most of the registered as well as closed businesses were micro-enterprises. In Table 2, the microenterprises category includes individualpreneurs
with no employees.
Lubelskie
Podkarpackie
Podlaskie
Świętokrzyskie
Warmińsko – mazurskie
Table 3. SMEs registered in the REGON register in 2009 in relation to the number of inhabitants
SMEs in total
Number of businesses per 1000 inhabitants
Location in Poland
75.66
15
70.21
16
76.66
14
86.68
12
82.75
13
Newly established SMEs
Number of businesses per 1000 inhabitants
Location in Poland
8.42
12
7.13
16
8.06
15
8.13
14
10.14
11
Enterprises
EASTERN POL AND. DEVELOPMENT CHALLENGES
173
Warmińsko – mazurskie
Świętokrzyskie
Podlaskie
Enterprises
Podkarpackie
TERESA SZOT-GABRYŚ
Lubelskie
174
Closed SMEs
Number of businesses per 1000 inhabitants
Location in Poland
6.47
3
6.41
2
8.04
4
9.32
8
10.11
9
SMEs with foreign capital
Number of businesses per 1000 inhabitants
Location in Poland
0.58
13
0.54
15
0.55
14
0.54
16
0.60
12
Source: Report of the condition of small and medium enterprises sector in Poland in the years 2008-2009, Polish Agency for Enterprise
Development, Warsaw 2010, pp. 85-131.
The data presented in the tables indicate that, compared to the nationwide values, Eastern Poland is characterized with the lowest index of entrepreneurship in relation to the number of inhabitants and the lowest level
of foreign capital investment in the SMEs sector. Also, the mean number
of microenterprises per 1000 inhabitants is significantly below the nationwide
average. In 2010, the value of the index was 43.3% for all voivodeships, while
it was just 35.9% in the Świętokrzyskie voivodeship, 33.7% in the Podlaskie
voivodeship, 32.7% in the Lubelskie voivodeship and only 31.1% in the Podkarpackie voivodeship8. When we consider the number of registered SMEs
per 1000 inhabitants in Poland, Eastern Poland voivodeships are among
the worst in the country. However, the value of the index in each voivodeship was higher in 2010 than in 2009 reaching: 73.8% in Podkarpackie,
78.9 in Podlaskie, 86.0 in Warmińsko-Mazurskie, 80.6 in Lubelskie and
90.3 in Świętokrzyskie 90.39.
8
9
Report of the condition of small and medium enterprises sector in Poland in the years 2010-2011, Polish Agency
for Enterprise Development, Warsaw 2012, p. 71.
Ibid, p. 101.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
2. Conditions for the development of entrepreneurship
in Eastern Poland
The significance of entrepreneurship in the social and economic development of the whole country as well as regional development is undeniable
and has been stressed by many authors10. As a result of entrepreneurship understood as undertaking and conducting economic activity, business entities
are created, generating new jobs, often in the form of self-employment and
family businesses, higher income and thus creating increased local demand
for goods and services.
However, in Eastern Poland, entrepreneurship is characterized with
the lower potential compared to other regions of Poland, which is the result of a general economic situation as well as the condition of the region’s
economic and technical infrastructures.
The diagnosis of the social and economical situation in Eastern Poland
shows that this region is underdeveloped compared to the rest of the country,
which does not form favorable conditions for the development of entrepreneurship. Eastern Poland has certain features due to which it is considered
peripheral in relation to national and European centres of economic activity. The features include11:
ƒƒ a low level of wealth, indicated by low GDP per capita,
ƒƒ a low level of spatial, social and economic cohesion,
ƒƒ a noneffective economic structure with predominant traditional farming and relatively low levels of entrepreneurship, competitiveness and
innovation,
ƒƒ insufficient potential of growth centres like well developed urban areas
with established metropolitan functions for stimulating development,
10
11
T. Szot-Gabryś, Znaczenie przedsiębiorczości i innowacji dla rozwoju regionu [in:] Szot-Gabryś T., PałaszewskaReindl T., (ed.), Uwarunkowania rozwoju przedsiębiorczości i innowacji, Wydawnictwo Wyższej Szkoły
Umiejętności im. Stanisława Staszica w Kielcach, Kielce 2008, pp. 34-43.
Operational Program – Development of Eastern Poland 2007-2013. National Strategic Reference Framework
2007-2013, Ministry of Regional Development, Warsaw 2009, p. 58.
EASTERN POL AND. DEVELOPMENT CHALLENGES
175
TERESA SZOT-GABRYŚ
ƒƒ an underdeveloped infrastructure of higher education and limited
links between science and economy,
ƒƒ a low level of technical infrastructure, especially in the sphere of IT
and transportation as well as inefficient communication services make
Eastern Poland poorly accessible.
The above description of the situation in Eastern Poland indicates that
it is a region with unfavorable conditions for entrepreneurship due to its insufficiently developed economic base. It has been confirmed by the studies
of investment attractiveness of Eastern Poland voivodeships in comparison
with other voivodeships. The results have been presented in Table 4.
Resources and labour costs
Market
Economic infrastructure
Social infrastructure
General safety
Active support of investors
Investment attractiveness
Table 4. Investment attractiveness of voivodeships in 2010
Transport accessibility
176
Weights
20
25
15
10
5
5
20
100
1.
Śląskie
4
1
2
2
1
16
1
1
2.
Dolnośląskie
1
5
4
1
3
15
2
2
3.
Mazowieckie
3
13
1
3
4
13
3
3
4.
Małopolskie
7
2
5
5
2
10
4
4
5.
Wielkopolskie
2
3
8
6
10
7
5
5
6.
Zachodniopomorskie
6
8
6
9
6
12
6
6
7.
Łódzkie
9
4
11
7
7
9
7
7
8.
Pomorskie
11
10
3
11
5
14
8
8
9.
Opolskie
8
12
9
4
14
5
9
9
No.
Voivodeships
10.
Lubuskie
5
11
7
12
8
11
10
10
11.
Kujawsko–pomorskie
10
6
10
14
9
8
11
11
12.
Podkarpackie
14
7
14
8
12
1
12
12
EASTERN POL AND. DEVELOPMENT CHALLENGES
No.
Voivodeships
Transport accessibility
Resources and labour costs
Market
Economic infrastructure
Social infrastructure
General safety
Active support of investors
Investment attractiveness
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
13.
Warmińsko – mazurskie
13
14
12
16
11
6
13
13
14.
Świętokrzyskie
12
9
15
15
13
2
14
14
15.
Lubelskie
15
15
16
10
16
3
15
15
16.
Podlaskie
16
16
13
13
15
4
16
16
Source: K. Markowski, (ed.), Perspektywy rozwoju przedsiębiorstw z Lubelszczyzny. Studium empiryczne, European Meeting Centre – Nowy Staw Foundation, Lublin 2011, p. 27, elaborated on the basis of: M. Nowicki, (ed.), Atrakcyjność inwestycyjna województw
i podregionów Polski 2010, Institute for Market Economics, Konrad Adenauer Stiftung, Gdańsk 2010, p. 7.
In almost all aspects except for internal safety, Eastern Poland voivodeships are worse than the rest of the country. The region has underdeveloped
communication, economic, human resources and local market infrastructure.
These factors are very important for the development of entrepreneurship.
Looking for possible scenarios for the development of Eastern Poland, one
can begin with SWOT analysis12 in order to identify the region’s resources.
The endogenous potential of Eastern Poland which could facilitate its development, according to strategic documents13, includes:
ƒƒ natural environment,
ƒƒ agriculture,
ƒƒ tourism,
12In the document Strategy for Socio-Economic Development of Eastern Poland until 2020, Ministry of Regional
13
Development, Warsaw 2008, pp. 47-48, the following strengths of Eastern Poland were indicated: 1) Some
well-developed branches of economy successful not only on the domestic but also on international market (e.g. aviation industry, furniture industry, cement manufacturing industry, car tyre production, milk
processing); 2) Relatively high level of education and significant improvement in this aspect in the last several years; 3) Foreign language education and competence; 4) High natural, landscape and cultural benefits making the region attractive for tourism; 5) Academic centre development potential in some areas; 6)
Experience of the regional business environment institutions; 7) Schools well-equipped with information
technology devices; 8) Self government relatively eager to invest.
Ibidem, p. 22.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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TERESA SZOT-GABRYŚ
ƒƒ
ƒƒ
ƒƒ
ƒƒ
natural resources,
cheap labor,
polycentric urban network,
border area.
Whereas the development of entrepreneurship understood as a creation
of new enterprises may be reinforced by a strong position of the existing
economic entities in the branches constituting the regional specialization
of Eastern Poland. The new businesses can function as spin-offs, cooperants
or subcontractors of the existing companies. Generally speaking, in the whole
region of Eastern Poland, according to studies conducted in all counties,
the leading branches are14: agriculture and food industry, wood and furniture industry, textile industry, construction, machine building and means
of transport industry as well as non-manufacturing branches such as healthcare and health resorts, education and tourism.
Seeking perspectives for the development of entrepreneurship in Eastern Poland, one should keep in mind that the growth of business enterprise
is conditioned by macro- and microeconomic factors. There is a strict connection between the level of regional economic development and the growth
of entrepreneurship. General conditions for the development of entrepreneurship may be characterized in the following way: “The modern economy
is shaped by three interconnected processes: globalization, competition and
innovation. Permanent competitive advantage is achieved by regions in which
there are enterprises capable of creating and absorbing innovation. Innovative
companies locate their business in places guaranteeing favorable conditions
for their development. In a competition for new investments, quantitative
localization factors such as accessibility of natural resources, labor or transport infrastructure gradually begin to lose ground to qualitative factors such
as qualifications, reliable and fast infrastructure, research and development
14
Development of Cluster Structures in Eastern Poland, Ministry of Regional Development, Warsaw 2007, pp.
72-121.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
facilities, well developed business support environment, efficient administration and life and work conditions. Not only the quality of human capital,
involving elements such as qualifications and abilities of individuals, gain
importance, but also social capital, that is the ability to cooperate, trust and
institutional efficiency of the whole region”15. These are important factors for
the development of entrepreneurship and general competitiveness in any region. Thus, considering conditions shaping the circumstances of small companies business activity in a competitive environment on the local market,
one should pay attention to how the social and economic system is shaped
by local government and non-governmental institutions.
3. Conditions for undertaking economic activity –
entrepreneur’s perspective
The development of entrepreneurship understood as starting and running
own business, mainly by natural persons, is the result of individual decisions to establish a company. According to the literature, the determiners
of entrepreneurship development, comprehended as factors influencing entrepreneurial attitudes, may be divided into internal, associated with the entrepreneurs themselves, and external ones – also referred to as objective
factors, beyond enterprise’s influence as well as according to the character
of a stimulus prompting business to action. These are political, cultural and
economic factors16. The knowledge about the entrepreneurship factors is important for the sake of shaping the policy of assisting the entrepreneurial
process.
Regional Operational Program of the Lubelskie Voivodeship 2007-2013, Board of Lubelskie Voivodeship, Lublin 2007, p. 8.
16 A. Paździor, Kondycja finansowa przedsiębiorstw z województwa lubelskiego a perspektywy rozwoju „ściany
wschodniej” [in:] M. Stefański (ed.) Wspieranie procesów innowacyjnych w gospodarce regionu, Wydawnictwo
Naukowe Wyższej Szkoły Ekonomii i Innowacji in Lublin, Lublin 2009, p. 140.
15
EASTERN POL AND. DEVELOPMENT CHALLENGES
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TERESA SZOT-GABRYŚ
Table 5. Entrepreneurship factors
Factors
External
Internal
Political
economic system
the range of state interventionism
the scope of legal limitations
the scope of decision making decentralization
management evaluation criteria
Economical
fiscal system
the system of subsidies
monetary policy
customs system
enterprise goals
enterprise efficiency evaluation criteria
economic motivation system
Cultural
social acceptance of entrepreneurship
the system of values and ethical standards
organization culture
management style
professional promotion track
Source: W. Janik, Przedsiębiorczość i przedsiębiorstwo, WSPA, Lublin 2001, p. 19
Many important circumstances for the development of entrepreneurship are systemic, which means that they are formed at the state level, within
the scope of the country’s social and economic system. In order to complement the above described factors, local conditions of business development
should also be pointed out because most MSMEs operate on local markets
where local authorities and business environment institutions shape the background for economic activity.
Coming back to the entrepreneur’s perspectives in the Polish model of entrepreneurship development, a typical scenario involves undertaking economic activity by a natural person and running a microenterprise, which
takes some time to start creating new jobs and hiring first employees (most
of these companies do not go beyond the self-employment stage). In the Polish structure of MSMEs, family businesses are dominant. This means that
a well-developed entrepreneurship culture and business traditions are also
important elements of entrepreneurial initiatives. Nowadays, a new generation is commencing their professional activity. Many are children of entrepreneurs who established their businesses in the 1990s and they often
succeed their parents in family companies or establish their own businesses.
In such a case the new entrepreneurs can use the existing business models
and capital resources, which improves the chances for the enterprise survival
EASTERN POL AND. DEVELOPMENT CHALLENGES
10.0
18.1
Podlaskie
Świętokrzyskie
Warmińsko -Mazurskie
Poland average
3.
4.
5.
Employed in a private company
28.4
24.4
27.3
14.6
24.1
37.0
Employment In a state-owned company
34.0
45.7
32.9
41.5
36.5
25.6
Running an individual farm business
2.9
2.5
0.0
5.9
8.3
4.3
3.7
1.4
2.9
2.9
4.1
2.6
in %
Attending school or university
4.7
10.0
7.8
5.1
1.4
6.4
Source: R. Drozdowski, P. Matczak, (ed.), Samozatrudnienie. Analiza wyników badań, Polish Agency for Enterprise Development, Warsaw 2004, p. 12.
22.9
26.5
20.9
Podkarpackie
2.
16.7
Lubelskie
Percentage in each line
summing up to 100%
Voivodeships
Employed in public sector
1.
No.
Unemployed
Table 6. Previous situation of self-employed entrepreneurs on the labor market
Conducting economic activity
4.8
2.1
4.6
1.6
1.4
4.2
Other
3.4
3.9
1.6
1.9
3.3
3.2
Altogether
100.0
100.0
100.0
100.0
100.0
100.0
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
EASTERN POL AND. DEVELOPMENT CHALLENGES
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TERESA SZOT-GABRYŚ
in the market17. Economically, the weaker region of Eastern Poland does not
have a sufficiently developed business culture, which is especially apparent
in people’s mentality and attitudes.
Self-employment is a typical phenomenon in the free market economy.
In stable economies of European Union countries, 12% of professionally
active people are self-employed18. Self-employment is defined as “generating one’s own income”, “earning one’s livelihood directly from one’s own
business” or “working for oneself ”. The development of entrepreneurship
and MSMEs sector in Poland has been thoroughly studied and analyzed.
It should be stressed that, for a long time, private entrepreneurs were not
held in high esteem in the society, which could have been a factor limiting
entrepreneurship19. There are many barriers and difficulties of micro- and
macroeconomical character that entrepreneurs encounter in their economic
activity20. There are also various motivations for natural persons to undertake economic activity and very often the financial aspects are not the most
important21. However, studies concerning self-employment indicate a significant stratification of the labor market situation of individuals choosing
self-employment.
See J. Jeżak, W. Popczyk, A. Winnicka-Popczyk, Przedsiębiorstwo rodzinne. Funkcjonowanie i rozwój, DIFIN,
Warsaw 2004; Ł. Sułkowski, A. Marjański, Firmy rodzinne, jak osiągnąć sukces w sztafecie pokoleń, POLTEXT,
Warsaw 2009.
18 The partial renaissance of self-employment, OECD 2000, p. 159.
19 K. Duczkowska–Małysz, Wizerunek przedsiębiorcy w świetle badań gospodarstw domowych i opinii lokalnych
społeczności, in: Przedsiębiorcy jako grupa społeczna, Polish Foundation for Promotion and Development
of Small and Medium Enterprises, Warsaw 1999, p. 30.
20 See R. Borowiecki, B. Siuta-Tokarska, Problemy funkcjonowania i rozwoju małych i średnich przedsiębiorstw
w Polsce. Synteza badań i kierunki działania, DIFIN, Warsaw 2008.
21 The research conducted by A. Macko and T. Tyszka indicates that the hierarchy of motivations (from most
important to least important) for running own business is the following: to be independent from others,
to be able to make own decisions, to have good relations with colleagues, to make more money, to have
more time for oneself and family, to have a chance to prove oneself, to have an opportunity to meet people
and to manage people (A. Macko, T. Tyszka, Jacy są i jak są postrzegani przedsiębiorcy? „MBA” 1/2006, p. 13).
17
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
The results of the quoted studies show that self-employment is rather
the consequence of Polish economy restructuring (redundancies)22, and
to a lesser degree the result of own economic initiative. Moreover, a low index of undertaking economic activity by people who are unemployed or who
have been involved in agriculture indicates a low level of entrepreneurship
in these groups. The research results also point out that self-employment
should be promoted in various social and economic environments and not
only among the unemployed.
In the common view, self-employment is often perceived as the way
of commencing business activity by unemployed people who have no other chance of getting employed. It is especially justified, as there is a special
program offering subsidies provided by the Labor Fund to the officially registered unemployed who undertake economic activity23.
The decision to undertake economic activity is preceded by choosing:
ƒƒ the sphere (category) of business activity,
ƒƒ the legal and organizational form of the activity.
Considering the classification of activity, three business categories are
generally distinguished, manufacturing, trade and services. The choice
of the branch of economic activity is determined by many factors such as:
ƒƒ education, skills and professional experience of a person undertaking economic activity,
22
High proportion of the self-employed who used to work for private companies may result from a more
and more frequent phenomenon of employers encouraging their own employees to open their own businesses and provide services for their former employer as contractors. This is how employers try to avoid
high labour costs: social insurance costs are fully covered by the self-employed, there is no paid holiday
leave or sick leave. There is a possibility to introduce a more flexible policy of contracting one’s services
in case of deterioration of the company’s economic situation. In reality, a self-employed person very often
does exactly the same job as before but loses all the benefits of an employee.
23 A program of subventions for the unemployed who undertake economic activity is provided by Employment Agencies. The subvention is appropriated for the purchase of fixed assets and partly for current assets
necessary to begin economic activity. The subvention amount is six times of the average monthly salary
(in 2013 it was almost 22000 PLN). In order to be able to apply for the subvention, a person has to be registered as unemployed and meet certain conditions (Employment Promotion and Labour Market Institutions
Act of 20 April 2004, Dz.U. No 69 of 2008, item 415, as amended).
EASTERN POL AND. DEVELOPMENT CHALLENGES
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184
TERESA SZOT-GABRYŚ
ƒƒ market capabilities of achieving success depending, including demand and competition,
ƒƒ capital the entrepreneur invests in the economic activity and the ability for raising additional capital.
According to the effective business rules, a person who is planning to start
economic activity should begin with analyzing the conditions for the future
business. The knowledge about the decision premises determining establishment of a new enterprise as well as about the barriers and obstacles encountered by an entrepreneur may serve as a basis for identification of areas and
domains of business activity support. Putting oneself in the place of a person
undertaking economic activity, you can ask yourself the following question:
What do you need to start a new business?:
ƒƒ Define the objectives of your activity – in practice it means a business idea, which in turn determines the category of business activity according to the Polish Classification of Business Activity (PKD);
ƒƒ Depending on the chosen line of business, the entrepreneur needs employees with appropriate qualifications and professional competence.
The human factor involves features such as: knowledge, experience,
skills, expertise, motivation, mentality etc. An entrepreneur who establishes a new business as a natural person, without employing anyone at first, must accumulate all the necessary expertise including
knowledge about management (taxes, finances, marketing) as well
as professional skills because individual entrepreneurs must provide
services themselves. About 60% of the self-employed choose the line
of business compatible with their own professional qualifications.
This is an argument in favor of vocational education and training24.
ƒƒ The selected category of economic activity determines the market for
the offered goods and services. In many cases, the business is “bound
24
R. Drozdowski, P. Matczak, (ed.), Samozatrudnienie. Analiza wyników badań, Polish Agency for Enterprise
Development, Warsaw 2004, p. 13.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
to the land”, which means that the offer is limited to a local market.
The market’s potential is an important factor of achieving success.
ƒƒ In order to start a new business, it is necessary to accumulate sufficient resources (tangible, financial, human, intangible and legal assets). In Poland, a natural person can legally start a business without
any capital guarantees, which obviously is not rational. In principle,
a new enterprise suffers from a lack of sufficient resources, and the possibilities of acquiring external financing are limited.
Awareness of the realities of opening and running a business in the early stages is important for an appropriate designation of the system for entrepreneurship support and promotion. In general, the most urgent needs
concern raising capital and acquiring the necessary knowledge and skills.
Thus, typical tools of business support in the initial stages of activity include:
subsidies, preferential credits, short-term loans as well as training and free
consulting and information services.
Considering the circumstances of economic activity in its early stages
and the limitations concerning its scale as well as conditions characteristic
for Eastern Poland, it is possible to point to a few model business strategies
for newly established enterprises:
ƒƒ trade and services for a local market,
ƒƒ services provided locally but directed towards customers from outside the region – for example tourism and recreation,
ƒƒ services provided on customer’s premises, outside the company’s region, for example, construction services, specialized repair services,
consulting, transport services,
ƒƒ cooperation and subcontracting for larger companies within and outside the region ,
ƒƒ specialization (untypical or unique products, upmarket products) and
targeting domestic and foreign markets,
ƒƒ moving beyond the traditional form of providing services and using
the Internet, e.g. online shops, consulting, translation etc.
EASTERN POL AND. DEVELOPMENT CHALLENGES
185
186
TERESA SZOT-GABRYŚ
4. The system of entrepreneurship and MSMEs sector support
In Poland, since the pre-accession time until today, there has emerged an
efficient institutional system of entrepreneurship support involving valid
mechanisms stimulating the development of business activity which can serve
as a solid base for continuing the supportive activities in the next European
Union financial perspective 2014-2020. The administrative and instrumental
structure of entrepreneurship support in Poland overlaps, to a large extent,
with the support system for the micro, small and medium enterprise sector.
Nevertheless, it might be useful to initiate a discussion concerning the introduction of more efficient mechanisms to stimulate entrepreneurship, taking into account the specificity of Eastern Poland as an area characterized
with the underdeveloped technical infrastructure, including communication
and information technology, poorly developed local markets, the lower level
of urbanization and economy based mostly on agriculture.
The general scope of the system of entrepreneurship and MSMEs sector
support has been defined in the Freedom of Business Activity Act. Chapter
7 includes the following fragment: respecting the principle of equality and
competitiveness, the state creates favorable conditions for the functioning
and development of micro, small and medium enterprises, especially by25:
ƒƒ initiating changes in the legal system favoring the development of micro, small and medium enterprises, including ones concerning access to financial resources from credits, loans and credit guarantees;
ƒƒ supporting institutions facilitating entrepreneurship financing on favorable conditions within functioning government programs;
ƒƒ evening out conditions for economic activity by adjusting regulatory
liabilities;
ƒƒ facilitating access to information, training and consulting;
ƒƒ supporting institutions and organizations assisting entrepreneurs;
ƒƒ promoting cooperation between micro, small and medium businesses
and other Polish and foreign companies.
25
Freedom of Business Activity Act of 2 July 2004, Dz. U. No. 173, item 1807(103).
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
Institutions and tools within the system of entrepreneurship development support function on various levels and are financed using domestic
funds as well as Structural Funds assets (European Regional Development
Fund, European Social Fund):
ƒƒ Due to a considerable significance of the MSMEs sector for the economic development of the country, the role of the state is to eliminate
the obstacles inhibiting the development of entrepreneurship. The domestic economic policy is shaped by the government which creates and
implements instruments to support small and medium enterprises.
The Polish Agency for Enterprise Development is the main institution
responsible for implementing government programs as well as European Union programs designed for the MSMEs sector. The agency
administers, for example, the selected priorities of the Operational
Program – Innovative Economy and Operational Program – Human
Capital cooperating with business environment institutions in particular regions, accredited in the National System of Services (KSU)
for Small and Medium Enterprises.
ƒƒ On the regional scale, the development of entrepreneurship is influenced by self-governments of particular voivodeships which implement
Regional Operational Programs and coordinate the implementation
of regional components of Operational Program – Human Capital,
as well as by business environment institutions like regional development agencies, chambers of craft, branch associations, science and
technology parks, entrepreneurship incubators, loan and loan guarantee funds as well as other entities, mostly operating as non-profit
organizations.
ƒƒ Local business initiatives are supported by local authorities, agencies,
foundations and associations.
ƒƒ The support for the process of establishing and developing microenterprises in rural areas is also provided by local branches of the Agency
for Restructuring and Modernisation of Agriculture using Common
Agricultural Policy funds. Also, the LEADER program and Local Ac-
EASTERN POL AND. DEVELOPMENT CHALLENGES
187
188
TERESA SZOT-GABRYŚ
tivity Groups are financed from the same source. These institutions
play a very important role of energizing local rural communities.
In Eastern Poland, similarly to other regions, there functions a system
of entrepreneurship development and MSMEs sector support. The tools and
mechanisms used in this system are generally the same, however, it should
be noted that the needs of micro, small and medium enterprises at the moment of their opening and in the early stage of development are different
from the needs of well-established businesses present on the market for
a long time. The needs usually result from the deficit of capital, knowledge
and expertise.
Thus, it should be pointed out that an efficient stimulation of entrepreneurship development process in Eastern Poland and in the rest of the country must be multidirectional because it takes place at various levels. They are26:
ƒƒ Central, state level – legal regulations are formed here. The legal and
economic frameworks for the social and economic system of the whole
country are also shaped at this level as well as the financial and institutional scope for the system of entrepreneurship development
in Poland;
ƒƒ Regional, voivodeship level – a current degree of economic development and activities conducted in order to improve the existing
economic base as well as the shape of the implemented operational
programs along with the activities of business environment institutions play important role at this level;
ƒƒ Local level – local government activities and initiatives along with
local business environment institutions operations take place here.
26
T. Szot-Gabryś, Metody wspierania rozwoju sektora MMSP na szczeblu lokalnym [in:] Jóźwik B., Zalewa P. (ed.),
Spójność ekonomiczno-społeczna regionów Unii Europejskiej. Tom II, Spójność ekonomiczno-społeczna w Polsce, Wydawnictwo KUL, Lublin 2010, pp. 273-291.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
Starting with the conditions dependent on the frameworks of the social
and economic system shaped at the central level, according to research conducted among entrepreneurs, the most important obstacles for development
resulting from macroeconomical circumstances (economic, political, social,
legal environment) are27:
ƒƒ poor quality of legislation, unclear and imprecise laws and regulations, an unstable legal system,
ƒƒ a fiscal system – high taxes and unclear fiscal system regulations, unfriendly fiscal administration,
ƒƒ labour law incompatible with the company operating conditions (for
example, national minimum wage constituting high cost for an entrepreneur),
ƒƒ grey economy, corruption and a low level of business ethics,
ƒƒ high, non-payroll labor costs (mandatory social insurance costs),
ƒƒ high interest rates, difficult access to external sources of economic
activity financing,
ƒƒ obstacles connected with the land management regulations.
The state strives for the improvement of economic activity conditions for
small and medium enterprises. For example, the gradual decrease (within
the last few years) of income tax rates and introduction of a flat-rate tax
have created better opportunities for reinvesting the retained profits. Other
examples include the introduction of decreased social insurance rates for
individual entrepreneurs in the first two years after registering business activity or a possibility of one time depreciation of the purchased fixed assets
and non-material and legal assets by small business tax-payers28.
The Polish Agency for Enterprise Development (PARP), which centrally
administers entrepreneurship and MSMEs sector support programs, is a gov-
Report of the condition of small and medium enterprises sector in the years 2005–2006, Polish Agency for Enterprise Development, Warsaw 2007.
28 Up to 50 000 euro, which in 2011 equaled 197 000 PLN.
27
EASTERN POL AND. DEVELOPMENT CHALLENGES
189
190
TERESA SZOT-GABRYŚ
ernment agency established for running economy development programs,
especially in the sector of small and medium enterprises, export, national
social and economic cohesion, utilization of new technologies as well as creating jobs, counteracting unemployment and developing human resources.
PARP is a state legal person, formed on 1 January 2001 on the basis of the Polish Foundation for Promotion and Development of Small and Medium Enterprises which operated in the years 1995-200029. On its web page, PARP
declared that the year 2011 was dedicated to newly established businesses,
so called start-ups and technostarters30. An example of the agency’s activity
in this respect is the introduction of a new service called “economic activity
assistance”31. Within this service, for a symbolic charge (maximum 120 PLN),
the interested enterprises, especially in the first 6 months of their activity,
have their business needs assessed and then they are assisted with consulting. Currently, 23 institutions registered in the National System of Services
are entitled to provide the above described service. Two of them are located
in Eastern Poland.
For over 10 years, PARP has coordinated a program involving the establishment and operation of Consultation Points. People planning to start
economic activity as well as MSMEs sector companies may obtain (within
the scope of de minimis aid) free information services concerning the procedure of starting business activity, available subventions as well as advice
concerning finances, taxes, marketing, quality management and other issues
related to economic activity. Consultation Points are operated by entities reg29www.parp.gov.pl
30
31
A start-up is a new business in the early stage of its activity, that is an enterprise which has just started its
operation and is in the early stage of its development. Most often it is a micro or small enterprise. Technostarters are enterprises established by one or more researchers using innovative solutions that they are
legally entitled to. Technostarters are most often associated with technical universities, research departments and medical universities. A technostarter can be financially or operationally connected with their
parent institution as a spin-off or not as a spin-out (www.parp.gov.pl, 26.07.2011).
Other services for newly established businesses are: educational support within the frameworkwork of elearning platform, information service provided by PARP Informatorium, educational and consulting support provided by Consultation Points as well as by the Enterprise Europe Network, and others (www.parp.
gov.pl – 12.02.2013).
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
istered in the National System of Services (KSU). Within 284 KSU accredited
centres, 73 entities are located in Eastern Poland, and among 58 Consultation
Points operating in Poland, 12 are located in Eastern Poland32.
Considering the system of entrepreneurship development at the regional
level, apart from the Consultation Points, which provide information and
consulting services, from the point of view of benefits for persons undertaking economic activity, the most attractive offer seems to be the opportunity
of participation in a project realized by an entity selected in a competition
(most often a District Employment Agency or a non-profit organization)
as part of Operational Program – Human Capital, priority 6.2 “Support
and promotion of entrepreneurship and self-employment”. Within this project, people who are planning to open a business get assistance in the form
of substantive training, individual consulting (e.g. business plan preparation), investment subvention (a minimum project value is 50,000 PLN and
a subvention is up to 40,000 PLN) as well as bridging support in the form
of partial covering of current expenses for the first few months of business activity. Complex support obtained by new entrepreneurs gives them
a chance to survive and expand their business. The number of people who
can take part in such a project is limited due to fierce competition at the stage
of application. On the other hand, the application process allows for selecting potential participants and choosing the most promising business ideas.
Good, well designed mechanisms of entrepreneurship support should be
continued also in the next financial perspective 2014-2020.
A specific feature of the newly established businesses in the form of individuals as enterprises, at least in the initial phase of activity, is a small
scale of operation, mostly limited to a local market. Businesses established in the rural environment often encounter the problem of insufficient demand. However, even if we take into account the relatively low level
of Eastern Poland urbanization, we should still strive for improving entre32
In 2011, there were 110 Consultation Points in the country, including 27 in Eastern Poland. But consultants
also provide their services in many local offices, outside the main office of the Consultation Points.
EASTERN POL AND. DEVELOPMENT CHALLENGES
191
192
TERESA SZOT-GABRYŚ
preneurship in rural areas which are still struggling with hidden unemployment in agriculture. In the process of stimulation of entrepreneurship
in rural areas, local authorities and non-government organizations should
play a more significant role. District authorities usually include objectives
concerning entrepreneurship support in their Local Development Strategies but these objectives are usually not reflected in specific action plans.
It is therefore recommended for local authorities to prepare a different type
of document – “Entrepreneurship Development Program” with the support of professional consultants, financed from a dedicated subvention program, including a module of training for self-government administration
employees. The scope of possible mechanisms and tools for entrepreneurship stimulation as well as MSMEs sector development at the local level has
been described by M. Strużycki33:
ƒƒ land management, financial and economic plans and programs of public duties (including development strategies, land management plans,
long term investment plans and programs, financial analysis);
ƒƒ regulatory instruments in the form of orders and prohibitions, permits and decisions;
ƒƒ property management – granting access to lands and municipal facilities and multiplying property value;
ƒƒ instruments to stimulate an economy, e.g. differentiating tax rates
and fees, setting prices for the access to public property and services;
ƒƒ institutional instruments – forming organizational units responsible
for a realization of objectives connected with local economy development;
ƒƒ direct activities in the sphere of enterprises, e.g. construction of infrastructure;
33
M. Strużycki (ed.), Przedsiębiorczość w procesach rozwoju rynków lokalnych, Institute for Market, Consumption and Business Cycles Research, Warsaw 2006, p. 87, quoted after: A. Matuszko, (ed.), Rola gospodarki
przestrzennej w pobudzaniu rozwoju ekonomicznego gminy, Institute of Spatial and Municipal Management,
Cracow Branch, British Know-How Fund and Foundation in Support of Local Democracy, Warsaw 1998, p. 12.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
ƒƒ information instruments – granting access to data bases administered
by district authorities;
ƒƒ social policy instruments, including marketing.
There is also a need for better access to free consulting services and information concerning establishment and running business. Although such
services are provided by the Consultation Points, operated by organizations
registered in the National System of Services for Small and Medium Enterprises, cooperating with the Polish Agency for Enterprise Development , but
their number and, consequently, availability is insufficient. Such Consultation Points could be created in every district (operated by District Administrative Units or local non-governmental organization) fulfiling duty hours
at set times in particular communities34.
In the current financial perspective, entrepreneurship in rural areas
is supported from the Rural Development Programme 2007-2013, within
the measures “Creation and Development of Microenterprises” and “Nonagricultural Activities”. The competitions of projects within these measures
are managed by the Agency of Restructuring and Modernization of Agriculture. There is also a separate budget administered by Local Activity
Groups financed from the LEADER program35. Local Activity Groups possess
the most thorough knowledge about local specificity, problems and needs
which makes them more suitable for efficient administration of a limited
subvention budget. The experience of the Local Activity Group in stimulating local development should be further utilized in the 2014-2020 period36.
34
Some of the consultants working in such consultation points could be employed as interns or volunteers.
They could be students who had been coached by experienced consultants.
35 The basis for the LEADER approach is the cooperation of local partners representing three sectors: public economic and social, who form a Local Activity Group and promote economic activity within the local community in its area of operation, see: A. Futymski, R. Kamiński, Budowanie lokalnej strategii rozwoju
w ramach osi 4 Leader Programmeu Rozwoju Obszarów Wiejskich na lata 2007-2013, Ministry of Agriculture
and Rural Development, Warsaw 2008.
36 Currently, the budget that Local Activity Groups can use for supporting entrepreneurship development
depends on the regulations of Local Development Strategies and usually allows for granting 3.4 and not
EASTERN POL AND. DEVELOPMENT CHALLENGES
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TERESA SZOT-GABRYŚ
In the local environment of MSMEs establishment and operation, the competitiveness of these enterprises can be improved through fruitful cooperation with business environment institutions such as insurance companies,
banks, loan and loan guarantee funds, economic organisations – chambers
of economy, societies and associations, for example of craftsmen, merchants,
local and regional development agencies, incubators for entrepreneurship,
research and development centres, universities. Some of the above mentioned
institutions provide capital for micro, small and medium enterprises, others
assist them with consulting and training services, provide information, act
as brokers in trade contacts or support entrepreneurs in the process of implementing new technologies and transfer of knowledge and innovation. Some
of the mentioned institutions are non-profit entities (foundations, associations) and their activity and the quality of services they provide positively
influence the sphere of entrepreneurship. Thus, it is necessary to strengthen
the business environment institutions in Eastern Poland, not only by reinforcing their tangible and human resources but also by allowing them to realize projects that would enable them to cover the costs of their functioning37.
Another direction of activity is connected with promoting academic
entrepreneurship, according to the idea of knowledge-based economy. Academic entrepreneurship is perceived as one of the options for efficient commercialization of inventions, innovations and transfer of technology from
the academic and research and development sphere to the business sector.
In a wider perspective, the main objective of academic entrepreneurship
is a promotion of business activity among students and graduates as well
as preparing them to utilize knowledge and skills acquired in course of their
studies in their own economic activity.
37
more than several subventions within a single enrolment period (competitions are usually announced
once a year or every second year).
Non-governmental organizations established in order to support local development finance their activity
with funds acquired from the implemented projects that they obtain by winning competitions. Limited
resources of the non-governmental organizations limit the scope of their activity.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FACTORS INFLUENCING ENTREPRENEURSHIP DEVELOPMENT
5. Summary
The development of entrepreneurship in Eastern Poland is dependent on
many microeconomic and macroeconomic factors. Thus, the support of this
process in the next European Union financial perspective 2014-2020 requires
diverse activities of direct and indirect character. The whole range of indirect
factors is associated with strengthening the region’s economic base including technical (transport and municipal facilities), social and information
technology infrastructures as well as reinforcement of the quality of human
and social capital along with promotion of the idea of information society.
Another aspect of the process is to improve public institutions functioning
and reinforce business environment institutions including the creation of incubators for entrepreneurship, technology and innovation transfer centres
as well as recapitalising or establishing new loan and loan guarantee funds.
The direct policy of stimulating entrepreneurship development in the 20142020 perspective in Eastern Poland should be conducted on the basis of complex activities such as:
1. Stronger emphasis should be placed on developing district towns
and strengthening their function as centres for local economic and
social life.
2. Selecting the preferred business branches that would receive additional
support. Their activity could be based on local resources and regional
strengths, for example tourism (rich natural and cultural resources),
agricultural and food production, wood processing.
3. Establishing centres for entrepreneurship based on key regional
branches. Initiating and strengthening cluster structures.
4. Know-how worked out by Local Activity Groups should be used for
a wider promotion of entrepreneurship in rural areas. This requires
more funds to be made available to Local Activity Groups to be distributed among entrepreneurs by means of competitions.
5. Support for business environment institutions, including smaller local organizations.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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TERESA SZOT-GABRYŚ
6. Establishing Consultation Points in every district (and every municipality on selected days) providing free advice for people starting economic activity and for MSMEs.
7. Direct investment subventions for newly established businesses (e.g.
a program that would continue the current mechanism of OP HR 6.2).
8. Implementating innovative programs and projects like business mentoring, coaching, internship, forming Business Angels networks, venture capital funds, innovative entrepreneurs clubs.
9. Activities promoting the idea of entrepreneurship and reinforcing
human resources quality including instruments of information society through projects involving training, consulting and providing
information.
10.Promoting entrepreneurship in academic communities as well as at
the level of vocational and general secondary education.
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
KRYSTYNA LESZCZEWSKA
Condition of entrepreneurship
and the micro, small and
medium-sized enterprise sector
Entrepreneurship means the quality of activities, undertaking economic
activities and creating and developing new enterprises and entrepreneurial
centers in a region1. Entrepreneurs, local communities and business institutions are involved in developing economic activities manifested by establishing new enterprises. Observations, statistical data and research enable
the premise that economic and social development in a region relies on entrepreneurial activities undertaken by region’s residents. The level of entrepreneurship is one of the elements that can describe the level of economy
1
A. Klasik, Przedsiębiorczość i konkurencyjność a rozwój regionalny. Synteza wyników projektu badawczego
[Entrepreneurship, competitiveness and regional development. Synthetised results of the research project], [in:] Przedsiębiorczość i konkurencyjność a rozwój regionalny [Entrepreneurship, competitiveness
and regional development], ed. A. Klasik, Prace Naukowe Akademii Ekonomicznej in Katowice, Katowice
2006, p. 11.
198
KRYSTYNA LESZCZEWSKA
in a given area. Statistical data on the Polish economy show clear long-term
territorial discrepancies in the level of economic and social activity, including
entrepreneurship. Persistent discrepancies in the economic potential of individual regions are one of the main problems of the modern economy. This
situation is not beneficial to the socio-economic development of Poland and
even becomes one of the main constraints as confirmed by the reports prepared for the Member States2. The entrepreneurial potential of the voivodships of Eastern Poland is examined here with the use of a quantitative
analysis of its development.
The concept of entrepreneurship has not been clearly defined in the literature. The multidimensionality of entrepreneurship as a socio-economic
phenomenon requires a multidimentional examination. Traditionally, entrepreneurship is approached chiefly in view of the establishment of new enterprises. It is defined as a process by stages that starts when an enterprise
is established until it is managed, i.e. from a concept to value formation.
As a multidimensional phenomenon entrepreneurship needs to be analysed
on four interrelated levels: economic, social, individual and organisational3.
The economic level of entrepreneurship refers to the phenomena related
to economic development. Entrepreneurial economy means the economy
in which one can recognise a number of processes that enable the economy
to be easily adapted to the changing global environment. So defined, entrepreneurship is a feature of the economy that favours dynamic economic
development. The level of entrepreneurship in the economy can be studied
using statistics that can reflect:
2Compare: Fourth Report on Economic and Social Cohesion. Growing regions, Growing Europe, European Com-
3
mission, Luxembourg 2007, Territory matters for competitiveness and cohesion. Facets of regional diversity
and potentials in Europe., ESPON Synthesis Report III, results by autumn, Luxembourg 2006.
J. Strojny, B. Stankiewicz, Wielowymiarowa analiza przedsiębiorczości – metodologia, narzędzia i znaczenie
dla społeczeństwa informacyjnego [Multidimentional study on entrepreneurship. Methogology, tools and
significance for the information society] [in:] Rola przedsiębiorczości w kształtowaniu społeczeństwa informacyjnego [Significance of entrepreneurship in shaping the information society], ed. Z. Zioło, T. Rachwał,
„Przedsiębiorczość – Edukacja” [Entrepreneurship – Education] 2009, no 5, p. 123.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
ƒƒ state’s economic policy, in particular state’s participation in the economy and freedom of business entities;
ƒƒ process of the development of small and medium-sized enterprises
in the national economy, in particular their contribution to GDP and
employment;
ƒƒ ownership and industrial structures;
ƒƒ growth of relations between economic entities, including the development of clusters;
ƒƒ territorially differentiated entrepreneurship.
The social dimension of entrepreneurship covers the behaviour of individuals and social groups which can guarantee that society can develop and
adapt to new conditions. The issues examined here are as follows4:
ƒƒ level of openness to new cultural and technological phenomena and
level of knowledge;
ƒƒ entrepreneur’s role in the local community;
ƒƒ identification of social factors that determine entrepreneurial attitudes;
ƒƒ process of building conditions to support entrepreneurship.
The individual level of entrepreneurial refers to certain personal qualities, typical of entrepreneurs. Entrepreneurship in this sense is usually interpreted as a sign of activity triggered by the spirit of initiative, breaking
standard rules, innovative ideas and solutions5.
The premise that entrepreneurship is one of the most important factors
of regional economic and social development calls for evaluating the entrepreneurial potential in the voivodships of Eastern Poland and studying
the measures taken to stimulate entrepreneurship there. G. Garofoli describes the essence of entrepreneurship for regional development, as de4
5
J. Strojny, Przedsiębiorczość w badaniach empirycznych Instytutu Gospodarki Wyższej Szkoły Informatyki
i Zarządzania w Rzeszowie [Entrepreneurship in the empirical studies by Instytut Gospodarki Wyższej Szkoły
Informatyki i Zarządzania from Rzeszów] [in:] Rola przedsiębiorczości w podnoszeniu konkurencyjności
społeczeństwa i gospodarki [Role of entrepreneurship in improving the competetiveness of society and
economy], ed. Z. Zioło, T. Rachwał, Wydawnictwo Nowa Era, Warszawa 2006, p. 69.
J. Targalski, A. Francik, Przedsiębiorczość i zarządzanie firmą. Teoria i praktyka [Entrepreneurship and enterprise’s management. Theoretical and practical approach], Wydawnictwo C.H. Beck, Warszawa 2009, p. 19.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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200
KRYSTYNA LESZCZEWSKA
fined from the perspective of small and medium-sized enterprises. He
indicates certain consecutive stages of creating them and their influence
on the economy6:
ƒƒ establishing small enterprises;
ƒƒ establishing networks of local enterprises that cooperate with each
other, e.g. to implement of innovative solutions, which improves the
labour productivity in these enterprises and a given region;
ƒƒ establishing a comprehensive system of local production capable of
stimulating a further increase in labour productivity that results from
launching production to foreign markets;
ƒƒ an increase in exports outside the local system accompanied by the
development of services and optimal use of regional resources;
ƒƒ investment by local enterprises outside their region.
Factors that condition the development of a region and regional entrepreneurship can be internal (endogenous) or external (exogenous). The internal factors rely on resources and potential of the regional economy and
the premise that economic development should be initiated by bottom-up
initiatives. The external factors depend on the premise that development
is triggered by top-down initiatives. At present, the creation of a regional
development strategy combines both concepts, i.e. endogenous and exogenous. The growth of regional entrepreneurship and regional development
depend much on the development of a given region, its economic and spatial structure, its human capital and public authorities.
1. Regional conditions of entrepreneurship
The factors of the development of regional entrepreneurship fall into four
groups:
6
T. Pakulska, Bezpośrednie inwestycje zagraniczne w rozwoju przedsiębiorczości w regionie [Direct foreign investment in developing entrepreneurship in the region] [in:] Przedsiębiorczość a rozwój regionalny w Polsce
[Entrepreneurship and regional development in Poland], ed. K. Kuciński, Difin, Warszawa 2010, p. 158.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
ƒƒ natural,
ƒƒ economic,
ƒƒ social,
ƒƒ institutional.
Natural factors determine the physical capabilities of establishing and operation of enterprises: number of protected areas in a region which prevent
from or limit conducting business activity and reduce the space for new enterprises. Economic factors are usually indispensable for making decisions
whether an enterprise should be established in a given region. The most critical economic factors are: technical infrastructure, the possibility of financial
support for entrepreneurs, including the availability of loan financing, local
private capital, establishment expenses in a given region (availability of potential sites, renting costs). These factors reflect conditions for conducting
business activity that are in a given community. These conditions result from
regional cultural factors, e.g. attitudes, religious values as well as the quality of regional human capital (level of professionalism of labour resources,
migration in a region, population age structure in a region).
Socio-economic studies indicate that individual entrepreneurship can
transform into business activity if there are favourable institutional conditions, created mainly by public authorities. Institutional conditions such
as a legal framework for enterprises to operate, activity of local governments,
creating a business climate in a region are treated in the literature as principal determinants to stimulate entrepreneurship in a region. Aydalot claims
that it is not enterprises that make a local environment but a structured environment is a prerequisite for enterprises to be established7. Business and
technical infrastructures, efficient public institutions make an area attractive
for conducting business activity.
7
Z. Przygodzki, Teoretyczne podstawy rozwoju regionalnego i lokalnego [Theoretical principles of regional
and local development] [in:] Region i jego rozwój w warunkach globalizacji [Regions and their development in the reality of globalisation], ed. J. Chądzyński, A. Nowakowska, Z. Przygodzki, CeDeWu, Warszawa
2007, p. 131.
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KRYSTYNA LESZCZEWSKA
There are many theories of regional development that attempt to explain
the reasons for uneven in space and time economic development. Each theory identifies some aspects of business activity that support its growth by
a given type of impact on business entities, and thus contribute to regional
development8. The concepts that explain and describe regional entrepreneurial opportunities and constraints are summarised in Table 1.
Table 1. Regional development theories and the development of SME sector
Theory
Recommendations for SMEs
Core-Periphery Model (Dependency Theory) SMEs are established and operate chiefly in well– there is a relationship between the developdeveloped centres. Development is balanced by
ment of core and peripheral areas. Resources of
keeping enterprises in peripheral areas.
peripheral areas are drained due to initial disparities in regional development.
Neo-Classical Theory of Economic Growth –
relies on the premises of perfect competition
model; provides for removing discrepancies in
regional resources by shifting these resources
between regions.
Development of small and medium-sized enterprises can contribute to regional development
which needs some support in less developed
regions.
Post-Keynesian economics states that the
most important factor in regional development
are investments that produce a multiplier effect.
Differentiated level of investment in regions increases inter-regional disparities which need to
be corrected by the state.
To reduce disparities in development of individual regions, involvement of SMEs in public
investment in economically underdeveloped areas should be assisted.
Economic Base Theory assumes the relationship between economic growth and an owned
sector (base) capable of producing for export.
The dynamic development of this export due
to higher export revenues can stimulate the
growth of other sectors of the economy of this
region.
The most significant impact to stimulate development can trigger increased export of small
and medium-sized enterprises in regions.
Endogenous growth theories assume that re- Stimulating cooperation between SMEs and netgional development if initiated on the basis of
working are methods to stimulate development
its own resources creates an opportunity to firm- of small and medium-sized enterprises
ly change regional economic potential.
8
Z. Makieła, Przedsiębiorczość regionalna [Regional entrepreneurship], Difin, Warszawa 2008, pp. 26-28.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
Theory
Recommendations for SMEs
François Perroux’s Concept of A Growth Pole
regards innovations as a major factors capable
of shaping regional development. Innovations
are, therefore, the driving force behind regional
development because they can attract resources
from other industries and regions.
The driving force behind regional development
can become innovative enterprises. The positive
results can be achieved by establishing large
innovative firms in a region such as subsidiaries of multinational corporations and technology parks.
Theory of Cumulative Causation (G. Myrdal)
– regional disparities tend to deepen over time
if economic, political and cultural reasons cumulate. Economy faces backwash and spread effects
that trigger the process of positive changes that
results in positive growth and negative ones
that bring about regression.
Regional development can occur as a result of
an intervention programme such as state’s assistance for certain activities by SMEs. If not
large-scale, such intervention can bring multiplier effects.
Source: Developed on: M. Bąk, M. Grabowski, P. Kulawczyk, M. Nowicki, M. Wargacki, E. Wojnicka, Małe i średnie przedsiębiorstwa a rozwój regionalny [Small and medium-sized enterprises and regional development], PARP, Warszawa 2001, pp. 24-29
2. Regions of Eastern Poland – characteristics
Eastern Poland is an area of five neighbouring voivodships, i.e. podlaskie, warmińsko-mazurskie, lubelskie, podkarpackie, świętokrzyskie. These
voivodships are called Polish peripheral areas. Started after 1989, the disparities in the development of Poland have not been reduced. Accordingly,
these voivodships have been still ranking as last in GDP per capital value
since the transformation began. In 2010, GDP per capita were only 67.3% and
67.6% of the average GDP per capita in Poland in the voivodships of podkarpackie and lubelskie, respectively, followed by 72.7% in podlaskie, 73.4%
in warmińsko-mazurskie and 75, 8% in świętokrzyskie. These provinces
form an spatially compact area that occupies 31.7% of the territory of Poland with its population of approximately 20.1% of the population in Poland
in 2010 and 15% of GPD9.
Presented in The Strategy for Socio-economic Development of Eastern Poland until 2020, the comprehensive research into the socio-economic situ9
Rocznik Statystyczny Województw 2012 [Statistical yearbook of voivodships for 2012], GUS, Warszawa 2012,
pp. 259, 631.
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KRYSTYNA LESZCZEWSKA
ation of the regions of Eastern Poland points out strengths, weaknesses,
opportunities and threats to their development.
Table 2. SWOT analysis for the voivodships of Eastern Poland
Strengths
Weaknesses
ƒƒ Emerging clusters of modern branches of industry, e.g. clusters of milk processing, wood
processing, aviation (“Dolina Lotnicza”)
ƒƒ Relatively high-educated society and recent
significant progress in education
ƒƒ Developing academic centres with quite
good R&D potential in some fields
ƒƒ Certain tourism potential
ƒƒ High efficiency in raising the EU funds
ƒƒ Peripheral location, significant distance to
capital and technological resources, less developed countries as neighbours
ƒƒ Unfavourable demographic structure, reducing population
ƒƒ Hardly accessible due to their underdeveloped transport infrastructure
ƒƒ Low economic development and low income
of their population
ƒƒ Poorly developed network of cities.
ƒƒ Underdeveloped economic structure, i.e.
a considerable share of inefficient agriculture,
underdeveloped modern branches of industry and service
Opportunities
Threats
ƒƒ Investors who represent environment-friendly branches are more interested in this region
ƒƒ Polish and foreign tourists are increasingly interested in Eastern Poland
ƒƒ Eastern Poland joins research and cultural cooperation networks
ƒƒ Inflow of EU funds
ƒƒ Residents of the other Polish voivodships and
foreigners are increasingly interested in Eastern Poland as a place to live
ƒƒ Experience in international relations thanks to
their peripheral location and residents’ travels
for work abroad
ƒƒ Other Polish voivodships and foreign regions
are highly competitive
ƒƒ Increasing external demand for labour force
from Eastern Poland
ƒƒ Poor relationship with the neighbouring
countries, e.g. Russia, Belarus
ƒƒ Poland and foreign countries still recognise
Eastern Poland as a peripheral region in a peripheral country
Source: Developed according to: Strategia Rozwoju Społeczno-Gospodarczego Polski Wschodniej do roku 2020 [Strategy for the Socioeconomic Development of Eastern Poland until 2020], Ministry of Regional Development, Warszawa, 2008, pp. 41-42
The table shows the weaknesses and strengths of the regions of Eastern
Poland. These economically underdeveloped voivodships have got an unfavorable economic structure and deficient infrastructure. The opportunities
for their growth and competitive potential include: a higher level of education of their population than it could be expected from the level of economic
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
development and a significant progress in this area recently. Their growing
academic centers with good research potential play a crucial role in improving education in Eastern Poland.
The advantage that could stimulate the development of the regions of Eastern Poland are emerging clusters of modern branches of industry, e.g. aviation, milk processing, manufacturing furniture, cement, car tires. These
branches are successful not only on the Polish market but also an international one. Areas where modern sectors of the economy are located are
the beginning of regional centers of growth. Note also that the voivodships
of Eastern Poland are highly efficient in applying for the EU funds. This fact
can contribute to more investment in these regions and enhance their competitiveness relative to much economically developed regions.
3. Entrepreneurship in the regions of Eastern Poland
Entrepreneurship in Poland was dynamically developing during the transformation. Entrepreneurial potential varies regionally as regions differ in terms
of their economic structure, availability of technical infrastructure, level
of development of business environment institutions, local government activity and quality of human capital. The potential of entrepreneurship in regions
usually depends on a quantitative analysis of its development. The regional level of entrepreneurship is illustrated here by the following indicators:
1. number and size of enterprises by voivodship
2. SME density, i.e. number of enterprises per 1,000 people
3. number of active SMEs per 1,000 people
4. employees in SMEs per 1,000 inhabitants
5. innovation indicators in enterprises
In Poland in 2011, the number of companies registered in the National
Official Business Register, REGON, was 4,071,57610. The structure of busi10
Data from Raport o stanie sektora małych i średnich przedsiębiorstw w Polsce w latach 2010-2011 [Report on the condition of the SME sector in Poland in 2010-2011], A. Tarnawa, P. Zadura-Lichota (ed.), PARP, Warszawa 2012, p. 19.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KRYSTYNA LESZCZEWSKA
ness enterprises was dominated by SMEs – 99.9% of all enterprises registered
there. Among all of the registered entities, there were 3,861,352 micro enterprises (94.8%), 173,449 small enterprises (4.3%), 31,329 medium-sized enterprises (0.8%), and 5,446 large enterprises (0.1%). The number of companies
registered in the REGON register decreased in 2011 by 0.4% as compared
to 4,086,409 entities in 201011. A slight increase in the number of registered
enterprises, i.e. by 0.2% was recorded in 2011 in small enterprises only. Actually, a decrease was in the other types of enterprises, i.e. by 1.4% in large
enterprises, by 1.1% in medium-sized enterprises, and by 0.4% in micro
enterprises. In 2010, there was a significant increase, i.e. by more than 5%
in the number of enterprises registered in the REGON register, as compared
to the previous year.
According to the Central Statistical Office, GUS, small and mediumsized enterprises that operate in Poland generated 47.6% of GDP, including
29.6% of micro-enterprises in 2010. The sector of small enterprises in Poland in terms of its share in gross value added of enterprises is significantly smaller than in the EU. However, the contribution to gross value added
of micro enterprises is much higher in Poland than in the EU. Recently, there
has been a clear growing trend of enterprises in Poland. The branch structure of this sector in Poland is different from the average one in the EU, just
like the structure of the gross value added of the enterprise sector in Poland
by size. According to Eurostat, the share of services in value added in Poland is much lower than in the EU Member States, i.e. 26.5% in Poland and
40.1% in the EU.
In the past ten years, the number of registered enterprises has increased
by about 23%. Most registered entities operate in municipalities. The most
significant increase in the number of entities in Eastern Poland was reported
for the voivodships of podkarpackie (5.6%) and lubelskie (5.1%). The increase
below the national average was recorded for the voivodships of podlaskie
and świętokrzyskie, i.e. 1.4% and 1.6%, respectively. Enterprises that belong
11
This decline was partly related to the REGON verification by GUS.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
to natural persons engaged in business activity are the most frequent kind
of enterprises in all voivodships.
Enterprise density shows the number of registered enterprises per
1,000 people and is the most frequently applied indicator of strength of entrepreneurship in regions. In Poland, this indicator significantly increased
during the transformation. The number of registered entities per 1,000 inhabitants was 83.3 in 2000, 94.8 in 2005, and 100.4 in 2011. In 2000-2011,
this indicator was below the national average in all voivodships of Eastern
Poland, see Table 3. The trend of strong differentiation in the level of entrepreneurship in regions of Poland maintained throughout the economic transformation. The highest values of this indicator were reported in the regions
with the highest level of economic development, whereas the lowest ones
were recorded in 2011 in the voivodships of podkarpackie – 71.0%, lubelskie
– 74.6%, and podlaskie – 76.4%.
Table 3. Entities registered in the REGON register per 1,000 inhabitants
by voivodship in 2000-2011
Country/voivodships
2000
2005
2011
POLAND
83.3
94.8
100.4
Dolnośląskie
92.6
104.8
112.3
Kujawsko-pomorskie
81.4
90.5
87.9
Lubelskie
60.4
68.4
74.6
Lubuskie
87.1
101.1
102.1
Łódzkie
80.3
96.8
90.2
Małopolskie
78.3
88.7
99.1
Mazowieckie
102.0
116.7
127.7
Opolskie
71.9
86.5
96.2
Podkarpackie
60.7
66.3
71.0
Podlaskie
70.7
74.1
76.4
Pomorskie
92.0
103.0
113.1
Śląskie
81.1
91.0
95.8
Świętokrzyskie
67.8
81.3
82.9
EASTERN POL AND. DEVELOPMENT CHALLENGES
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208
KRYSTYNA LESZCZEWSKA
Country/voivodships
2000
2005
2011
Warmińsko-Mazurskie
71.6
77.1
80.7
Wielkopolskie
88.1
101.2
109.0
106.2
122.1
124.6
Zachodniopomorskie
Source: Rocznik Statystyczny Województw 2012 [Statistical yearbook of voivodships for 2012], GUS, Warszawa 2012, p. 45
An efficient indicator of entrepreneurship is the number of individuals engaged in business activity per 1,000 residents because it reflects individual’s activeness and level of his or her creativity, courage, independence. As compared
with the other EU Member States, the level of entrepreneurship in Poland measured by the number of individuals starting business activity is relatively high.
In 2000, 65.4 entrepreneurs per 1,000 residents were registered in Poland; and
in subsequent years, this value increased as follows: 72.8 and 74.5 business entities in 2005 and 2011, respectively. This indicator considerably varies if analysed
by region. In 2011, the least of entrepreneurs, i.e. 54.6 per 1,000 inhabitants were
in the podkarpacie voivodship, followed by 57.4 in lubelskie, 58.6 in warmińskomazurskie, 60.3 in podlaskie and 65.3 in świętokrzyskie (Table 4).
Table 4. Entrepreneurs per 1,000 inhabitants in Poland by voivodship in 2000-2011
Country/voivodships
2000
2005
2011
POLAND
65.4
72.8
74.5
Dolnośląskie
72.5
77.0
78.2
Kujawsko-pomorskie
66.2
72.3
66.8
Lubelskie
47.5
53.1
57.4
Lubuskie
68.1
76.7
74.1
Łódzkie
64.7
78.1
69.6
Małopolskie
61.3
68.2
75.0
Mazowieckie
76.8
85.8
89.3
Opolskie
54.8
64.8
70.7
Podkarpackie
48.6
51.7
54.6
Podlaskie
57.9
60.1
60.3
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
Country/voivodships
2000
2005
2011
Pomorskie
70.8
77.1
83.1
Śląskie
63.3
69.8
71.7
Świętokrzyskie
55.2
65.6
65.3
Warmińsko-Mazurskie
55.8
57.7
58.6
Wielkopolskie
70.8
80.1
83.8
Zachodniopomorskie
85.1
96.2
94.8
Source: Rocznik Statystyczny Województw 2012 [Statistical yearbook of voivodships for 2012], GUS, Warszawa 2012, p. 45
The degree of differentiation of the level of entrepreneurship in the regions of Eastern Polish was assessed by analysing the indicator of enterprise
density, i.e. number of enterprises per 1,000 inhabitants, in the NUTS 3 subregions in 2011 (Table 5). The highest value of this indicator was recorded
in the NUTS 3 sub-regions in all the voivodships. These NUTS 3 sub-regions
covered the regional capitals: 93.3 entities per 1,000 inhabitants in sub-region
of Kielce, 90.4 in the sub-region of Lublin, 89.53 in the sub-region of Białystok,
87.9 in the sub-region of Olsztyn and 77.8 in the sub-region of Rzeszów.
The values in these regional centres of growth are higher than the average
one for Poland, which can be regarded as a positive sign of initiation of development in the regions of Eastern Poland. The level of entrepreneurship
varies much in each voivodship; and it is highest in the voivodships of lubelskie and świętokrzyskie. In the lubelskie voivodship, the number of registered business entities per 1,000 inhabitants in the sub-region of Lublin was
90.4 whereas in the bielski sub-region was 64.4 only. The świętokrzyskie
voivodship has got 93.3 registered entities per 1,000 inhabitants in the subregion of Kielce and 66.4 in the sandomiersko-jędrzejowski sub-region
only. Similarly, some low values of this indicator were recorded in the other
Eastern sub-regions, remote from the regional capitals. This fact confirms
that the clusters of SMEs can chiefly flourish if there are adequate markets,
a skilled workforce, access to specialised services and financial resources,
and developed infrastructure.
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Table 5. Business entities in the NUTS 3 sub-regions in Eastern Poland in 2011
Entities registered
in the REGON register
per 1,000 inhabitants
Entrepreneurs
per 1,000 inhabitants
LUBELSKIE
Sub-regions:
bialski
chełmsko-zamojski
lubelski
puławski
74.6
57.4
64.4
67.2
90.4
67.8
49.1
52.5
68.4
53.2
PODKARPACKIE
Sub-regions:
krośnieński
przemyski
rzeszowski
tarnobrzeski
71.0
54.6
72.2
62.3
77.8
68.8
56.9
46.3
59.4
53.2
PODLASKIE
Sub-regions:
białostocki
łomżyński
suwalski
76.4
60.3
89.5
66.0
67.8
70.3
52.8
53.0
ŚWIĘTOKRZYSKIE
Sub-regions:
kielecki
sandomiersko-jędrzejowski
82.9
65.3
93.3
66.4
73.6
52.2
WARMIŃSKO-MAZURSKIE
Sub-regions:
elbląski
ełcki
olsztyński
80.7
58.6
74.4
76.7
87.9
54.3
56.4
63.5
Region/sub-region
Source: Developed according to: Rocznik Statystyczny Województw 2012 [Statistical yearbook of voivodships for 2012], GUS, Warszawa
2012, pp. 172-176
The annual study of SMEs by Polska Agencja Rozwoju Przedsiębiorczości
[Polish Agency for Enterprise Development] provides data about the number
of active enterprises and employees of active enterprises per 1,000 inhabitants.
According to the GUS data, about 1.73 million enterprises out of all companies
registered in the REGON register in 2010 were active12. However, the European Commission claims that there are 1.42 million enterprises in Poland, which
12
Działalność przedsiębiorstw niefinansowych w Polsce w 2010 roku [Activity of non-financial enterprises in Poland in 2010], GUS, Warszawa 2011, p. 31.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
ranks the Polish economy in the sixth place in the EU in terms of the number
of enterprises. The number of active SMEs, or actually engaged in economic
activities per 1,000 inhabitants in Poland in 2010 was 45.2 (Table 6). Most
active enterprises are micro-enterprises or enterprises with 0-9 employees.
The number of SMEs by region in 2010 was as follows: most enterprises per
1,000 residents were recorded in the mazowieckie voivodship (54.4), followed by wielkopolskie (51.2), pomorskie (49.8); and least enterprises were
in podkarpackie (32.7), lubelskie (34.0) and podlaskie (35.1).
Table 6. Active enterprises per 1,000 residents in 2010
Country/voivodships
Total
POLAND
45.2
Dolnośląskie
47.2
Kujawsko-pomorskie
41.3
Lubelskie
34.0
Lubuskie
44.0
Łódzkie
45.8
Małopolskie
47.7
Mazowieckie
54.4
Opolskie
35.7
Podkarpackie
32.7
Podlaskie
35.1
Pomorskie
49.8
Śląskie
43.4
Świętokrzyskie
37.4
Warmińsko-Mazurskie
38.9
Wielkopolskie
51.2
Zachodniopomorskie
53.3
Source: Developed according to Działalność przedsiębiorstw niefinansowych w Polsce w 2010 roku [Activity of non-financial enterprises
in Poland in 2010], GUS, Warszawa 2011, pp. 64-65
At the end of 2010, the surveyed companies employed 8,859.1 employees
(Table 7). Most employees were reported in enterprises established in ma-
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KRYSTYNA LESZCZEWSKA
zowieckie (21.4%) and śląskie (13.2%) 13. Least employees were in the enterprises from the voivodships of podlaskie, opolskie, lubuskie, and świętokrzyskie,
i.e. from 1.9% to 2.3%. The voivodships of mazowieckie, wielkopolskie, śląskie
were at the forefront in terms of the number of employees per 1,000 inhabitants. At the end of 2010, 361.6 and 266.2 persons per 1000 inhabitants were
employed in enterprises in mazowieckie and wielkopolskie, respectively.
The least number of employees in enterprises per 1,000 inhabitants were reported in podlaskie and lubelskie, i.e. 144.0 and 153.0, respectively.
Table 7. Employees in the active enterprises per 1,000 inhabitants in 2010
Country/voivodships
Employees in active enterprises
per 1,000 inhabitants
POLAND
231.9
Dolnośląskie
240.7
Kujawsko-pomorskie
191.6
Lubelskie
153.0
Lubuskie
200.1
Łódzkie
217.8
Małopolskie
227.9
Mazowieckie
361.6
Opolskie
167.9
Podkarpackie
171.4
Podlaskie
144.0
Pomorskie
218.4
Śląskie
251.8
Świętokrzyskie
163.1
Warmińsko-Mazurskie
165.2
Wielkopolskie
266.2
Zachodniopomorskie
190.5
Source: Developed according to Działalność przedsiębiorstw niefinansowych w Polsce w 2010 roku [Activity of non-financial enterprises
in Poland in 2010], GUS, Warszawa 2011, pp. 64-65
13
Działalność przedsiębiorstw niefinansowych w Polsce w 2010 roku [Activity of non-financial enterprises in Poland in 2010], GUS, Warszawa 2011, p. 32.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
4. Innovative entrepreneurship
Innovation is considered in today’s economy as a key factor behind competitiveness of enterprises, regions and countries. The previous competitive
advantages such as low labour costs are losing their meaning. Creating new
competitive advantages based on knowledge and innovation can ensure sustainable development. Innovative entrepreneurship is becoming a necessity
for companies if they want to compete internationally. Analysis of the potential of innovative entrepreneurship in the regions of Eastern Poland can
help evaluate the prospects of gaining a competitive advantage by the entities operating there. As defined by GUS, innovative activity involves a number of research, technical, management, financial and commercial activities
to develop and implement innovations14. Innovation involves implementing
a new or significantly improved product (good or service) or process, a new
method or a new management or marketing method in business practice,
workplace management or a relationship with the environment. Typically,
innovations implemented by the company can fall into technological innovations to a product and innovations to a production process15.
Innovativeness of Polish enterprises, including product, process, management and marketing innovation in terms of statistical indicators is poorer than in most EU countries. Polish companies rank nearly last in terms
of average expenditure on innovative activities, percentage of companies that
implement innovation, and the average value of sold new or significantly
improved products. Polish companies also achieve poor results as compared
to other EU countries in terms of expenditure for R&D and the number of enterprises engaged in R&D. Actually, R&D activities are regarded as a chief
factor of global technological progress.
Published in report Innovation 2010, the studies by Polska Agencja Rozwoju Przedsiębiorczości on the innovative activities by enterprises in Poland
Based on the GUS PNT-02 form Sprawozdanie o innowacjach w przemyśle za lata 2006-2008 [Reporting innovation in the industry in 2006-2008].
15 Innowacyjność 2010 [Innovativeness 2010], ed. A. Wilmańska, PARP, Warszawa 2010, p. 11.
14
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214
KRYSTYNA LESZCZEWSKA
in 2006-2008 allow for ranking Polish voivodships according to the percentage of industrial enterprises engaged in innovation activity in Poland in 20062008 to be compared to the corresponding data for companies in the European
Union (Table 8). With the average value of the indicator for industrial enterprises that operate in the EU, i.e. 41%, this indicator reached its highest value
in Poland for the voivodships of mazowsze and pomorskie, i.e. 25%. The regions of Eastern Poland ranked relatively high compared to the other Polish
regions: podlaskie – 24%, podkarpackie – 23%, lubelskie – 22%, świętokrzyskie
20%, warmińsko-mazurskie – 18%. The least number of innovative companies
was recorded in this period in the voivodship of lubuskie – 15%.
Table 8. Percentage of industrial enterprises engaged in innovation in Poland in 2006-2008 by voivodship
General/regions
Percentage of innovative enterprises
UE – 27*
41
Mazowieckie
25
Pomorskie
25
Dolnośląskie
24
Podlaskie
24
Opolskie
23
Podkarpackie
23
Lubelskie
22
Małopolskie
22
Śląskie
22
Kujawsko-pomorskie
21
POLAND
21
Świętokrzyskie
20
Wielkopolskie
19
Warmińsko-Mazurskie
18
Zachodniopomorskie
17
Łódzkie
15
Lubuskie
14
* the data for the EU refers to 2004-2006
Source: Developed according to: Innowacyjność 2010 [Innovativeness 2010], ed. A. Wilmańska, PARP, Warszawa 2010, p. 1
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
The statistics on the amount of expenditure incurred by Polish industrial enterprises on innovation to implement product and process innovations show that this value is increasing year by year. The expenditure
incurred in 2011 was higher by 35.2% compared to 2005. A significant increase in expenditure on innovative activity in the regions studied was reported in podkarpackie only, i.e. by 58.7%. The expenditure on innovation
activity in the other regions of Eastern Poland in 2011 compared to 2005 decreased (Table 9). In 2005-2011, the percentage of companies that incurred​​
expenditures on product and process innovations reduced across Poland,
i.e. from the national average of 38.9% in 2005 to 35.0% in 2011. The reduced
percentage of enterprises that incurred expenditure on innovative activities
was recorded in all regions of Eastern Poland.
Table 9. Expenditure incurred for innovative activity in Poland in 2005 and 2011 by voivodship*
Country/voivodship
Expenditure for product
and process innovation
in industry
(in thousands of PLN)
Enterprises that incurred
expenditures for product and process innovation
(% of industrial enterprises)
2005
2011
2005
2011
14329.1
19376.5
38.9
35.0
1138.6
1721.0
36.1
35.2
Kujawsko-pomorskie
784.2
567.7
31.2
35.5
Lubelskie
493.9
478.8
43.5
36.5
Lubuskie
121.2
222.8
35.6
27.7
Łódzkie
350.9
2254.3
27.6
31.0
Małopolskie
866.3
1169.5
40.1
40.1
Mazowieckie
3533.9
3808.2
43.5
37.8
Opolskie
275.0
191.2
36.6
35.6
Podkarpackie
671.0
1089.5
47.2
42.0
Podlaskie
304.1
290.5
43.8
34.6
Pomorskie
784.4
777.4
40.8
30.6
2497.7
3838.2
49.2
36.3
422.5
324.3
38.2
36.3
POLAND
Dolnośląskie
Śląskie
Świętokrzyskie
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KRYSTYNA LESZCZEWSKA
Country/voivodship
Warmińsko-Mazurskie
Wielkopolskie
Zachodniopomorskie
Expenditure for product
and process innovation
in industry
(in thousands of PLN)
Enterprises that incurred
expenditures for product and process innovation
(% of industrial enterprises)
2005
2011
2005
2011
257.8
256.1
40.0
32.5
1455.9
1848.1
34.6
33.9
371.7
538.9
25.2
26.0
* the data refers to entities with more than 49 employees
Source: Rocznik Statystyczny Województw 2012 [Statistical yearbook of voivodships for 2012], GUS, Warszawa 2012, p. 53
Comparative studies on the level of innovation of individual economies
employ R&D activity as a key comparative indicator. Involvement of entities in R&D in each region is described by the following indicators: employment in R&D per 1,000 economically active people, expenditure on R&D
per 1 inhabitant in PLN and expenditure on R&D in relation to GDP in %
in 2010 (Table 10). Employment in R&D per 1,000 economically active people
in 2011 in Poland was 4.8. This indicator was lower in value in all voivodships
of Eastern Poland than its average value for Poland. The level of expenditure
incurred on R&D per 1 inhabitant in PLN in the regions studied was also
lower than its average value for Poland. The expenditure on R&D in relation to GDP in Poland in 2010 amounted to 0.74%. Some higher values than
the average one for Poland were reported for podkarpackie only, i.e. 0.97%.
Table 10. Employment in R&D and expenditure on R&D in 2011 by voivodship
Employment in R&D
per 1,000 economically active people
Expenditure for R&D
per 1 person in PLN
Expenditure for R&D
related to GPD
in % for 2010
POLAND
4.8
303
0.74
Dolnośląskie
5.2
249
0.52
Kujawsko-pomorskie
3.1
89
0.32
Country/voivodships
Lubelskie
3.1
174
0.67
Lubuskie
1.7
55
0.14
Łódzkie
3.4
228
0.64
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
Country/voivodships
Employment in R&D
per 1,000 economically active people
Expenditure for R&D
per 1 person in PLN
Expenditure for R&D
related to GPD
in % for 2010
Małopolskie
7.0
362
1.05
Mazowieckie
9.8
886
1.35
Opolskie
2.4
83
0.13
Podkarpackie
2.9
255
0.97
Podlaskie
3.3
116
0.32
Pomorskie
5.6
274
0.61
Śląskie
3.6
223
0.46
Świętokrzyskie
1.5
112
0.47
Warmińsko-Mazurskie
2.6
138
0.45
Wielkopolskie
4.6
264
0.59
Zachodniopomorskie
3.0
114
0.32
Source: Rocznik Statystyczny Województw 2012 [Statistical yearbook of voivodships for 2012], GUS, Warszawa 2012, p. 55
Analysis of innovative sources of financing shows that the percentage of companies using innovative public support in the EU Member
States is much higher than in Poland. The values for 2006-2008 are as follows: Austria – 52%, Finland – 46%, Cyprus – 43%, the Netherlands –
38%16. The percentage of innovative enterprises that received public support
in 2006-2008 in Poland amounted to 22%. Funds from the EU institutions
constitute the largest share of public support for enterprises in Poland, i.e.
15%. The Eurostat data show that Polish companies are the most numerous
beneficiaries of the EU assistance, followed by national resources, i.e. 7%
of innovative companies have benefited from this assistance and local resources, i.e. 4% of companies.
National public support in regions was mostly granted to innovative
enterprises from podlaskie and warmińsko-mazurskie, i.e. 36% and 30%,
respectively. It is should be remembered that companies from both regions
were the most frequent beneficiaries of the EU funds. Enterprises from
the warmińsko-mazurskie voivodship just like the ones from lubuskie, re16
Ibidem, p. 66.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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KRYSTYNA LESZCZEWSKA
ceived local assistance most frequently. State government assistance was
granted most often to enterprises from the voivodships of mazowieckie
and śląskie.
Table 11. Percentage of innovative enterprises that received public assistance (in %)
Percentage of enterprises that
received
public assistance
Including the percentage of
enterprises that received
the EU assistance
Dolnośląskie
22
16
Kujawsko-pomorskie
22
16
Lubelskie
21
16
Lubuskie
25
20
Łódzkie
21
14
Małopolskie
18
14
Mazowieckie
21
12
Opolskie
19
10
Podkarpackie
22
14
Podlaskie
36
33
Pomorskie
23
15
Śląskie
25
16
Świętokrzyskie
22
9
Warmińsko-Mazurskie
30
26
Wielkopolskie
23
15
Zachodniopomorskie
17
12
Voivodships
Source: Developed on Innowacyjność 2010 [Innovativeness 2010], A. Wilmańska (ed.), PARP, Warszawa 2010, p. 67
5. Developing structures of clusters
Small and medium-sized enterprises which compete with large enterprises
suffer from strong market competition. Technological development in many
areas of the economy makes this internal knowledge solely insufficient.
It is indispensable to benefit from the advantages of synergy due to the exchange of knowledge and experience between the company and its en-
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
vironment. Enterprises are encouraged to cooperate because of the scale
of expenditures for innovation, particularly R&D. Accordingly, the cost
of such projects can be dispersed thanks to collaboration with other parties, including competitors. Collaboration is also supported by the fact that
enterprises need to collaborate today in highly competitive markets that offer products of a short life cycle. Therefore, these enterprises need to incur
high expenditures. The Eurostat data show that Polish enterprises in 20062008 were in the middle of the ranking of companies in the EU countries
in terms of the share of companies engaged in innovative collaboration with
other entities.
The way to strengthen the competitive advantage of regions and enterprises can be collaboration between entities that operate there like companies, research institutions, local governments. This collaboration could
involve a direct exchange of knowledge and experience to improve market
values of these
​​
companies. Clusters are formed out of operating in a given
area collaborating enterprises, specialised suppliers, enterprises from related
branches and institutions associated17. The benefits from conducting business in a cluster are as follows:
ƒƒ creating conditions for dynamic growth in companies by: access to
new technologies, transfer of know-how, better access to project financing, lower production and transaction costs;
ƒƒ collaboration with academic and R&D institutions and centres;
ƒƒ intensifying the relationship between cluster members: joint product
promotion, joint implementation of R&D, commercial projects, cooperation in the EU funds raising, joint legal and financial consulting;
ƒƒ making an enterprise more reliable for business partners: building a positive enterprise’s image, increasing its bargaining power, its
stronger impact on the environment or regional development strategies.
17
M. E. Porter, Clusters and Competition [in:] Porter o konkurencji [Porter on competition], ed. M. E. Porter,
PWE, Warszawa 2001, p. 246.
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KRYSTYNA LESZCZEWSKA
So far, no factors that determine the emergence of clusters in specific locations have been unequivocally identified. The favourable conditions include
historical factors, availability of natural resources, nearby markets, availability
of research staff. Concentration helps create new enterprises, products and
new jobs for highly skilled workers. Typically, clusters are groups of enterprises that on the one hand compete with each other but cooperate in those
areas where synergy is possible. The synergy of a cluster involves: transfer
of know-how, better productivity inside a cluster by consolidated resources.
Synergistic effects also bring deeper social trust between partners (building social capital). Accordingly, the risk of small enterprises and cost of risk
management can be much less.
Table 12. Clusters in Poland*
Voivodship
Clusters
Cluster initiatives
Dolnośląskie
3
7
Kujawsko-pomorskie
1
4
Lubelskie
7
15
Lubuskie
1
3
Łódzkie
5
6
Małopolskie
7
4
Mazowieckie
5
6
Opolskie
3
1
Podkarpackie
4
8
Podlaskie
4
4
Pomorskie
6
2
Śląskie
7
1
Świętokrzyskie
5
6
Warmińsko-Mazurskie
5
3
Wielkopolskie
6
3
Zachodniopomorskie
3
4
the data on the clusters are from 2008, updated by benchmarking in 2010
Source: www.pi.gov.pl/PARP/data/klastry/indeks.html 21.07.2011
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONDITION OF ENTREPRENEURSHIP AND THE MICRO, SMALL AND MEDIUM-SIZED ENTERPRISE SECTOR
The territorial distribution of clusters that already function in Poland
and cluster initiatives shows that these institutions are relatively numerous
in the regions of Eastern Poland (Table 12). Most clusters and cluster initiatives are reported in the lubelskie voivodship, i.e. 7 and 15, respectively.
These organisations are also quite numerous in the other regions studied:
świętokrzyskie (5 and 6), podkarpackie (4 and 8), podlaskie (4 and 4) and
warmińsko-mazurskie (5 and 3). Collaboration in clusters should be considered a positive boost to enhance entrepreneurial potential in regions of low
economic potential.
Summary
This study on the entrepreneurial potential of the voivodships of Eastern Poland compared to the rest of Poland enables conclusions and recommendations for programmes to support the development of these
areas. The voivodships examined, i.e. lubelskie, podkarpackie, podlaskie,
świętokrzyskie, warmińsko-mazurskie rank last in the rankings of economic development of Polish regions. Their economic structure is outdated and
their infrastructure is insufficient​​. Their development is hindered by their
peripheral location, distance from the sources of capital and technology,
less developed and lagging in the transformation countries as neighbours.
The following aspects need to be stressed if one attempts to identify the courses of action to support the development of entrepreneurship
in the voivodships of Eastern Poland in view of the new 2014-2020 cohesion policy:
The need to exploit the endogenous potential of the voivodships of Eastern Poland. The experience of developed countries shows that long-term
development can be achieved if activities are focused on flagship economic
sectors for a given region which already have a competitive advantage on
the national and international scale. One can indicate some emerging clusters of modern industries in the voivodships of Eastern Poland, e.g. aviation, milk processing, furniture, cement, automotive tires manufacturing,
EASTERN POL AND. DEVELOPMENT CHALLENGES
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and clusters, e.g. Milk Cluster, Food Cluster “Naturalnie z Podlasia” Podlasie Cluster of Underwear, Eco-Energy Cluster of Lublin, Eastern IT Cluster
– Lubelska Wyżyna IT, Aviation Cluster “Dolina Lotnicza”, Cluster of Biomass Manufacturers “Biomasa Świętokrzyska”, Cluster of Elbląg Furniture,
Warmia and Mazury Cluster “Razem Cieplej”. Regional and local authorities
should encourage the existing clusters to develop, create incentives for new
initiatives and foster relationships between cluster members and regional
research institutions.
Building the business environment in the regions. The development
of entrepreneurship in economically underdeveloped regions can be intensified only if it is supported and assisted by business entities. Accordingly,
the instruments to support the development of the SME sector, development
of entrepreneurship education and development of local business support
organisations working for the MSME sector should be applied. The system
to support innovation and technology transfer to small and medium-sized
businesses should play a special role as this can contribute to building a competitive advantage of these entities.
The development of human capital. Nowadays, intangible factors such
as human capital, universities and research institutes are increasingly important because they become a determinant of attractiveness of a given place for
investment. The impact on the quality of the human capital in Eastern Poland should cover the measures to increase a general level of qualifications
and skills of people who live there. Recently, young people living in Eastern Poland have tended to be more interested in education. It is important,
however, to accompany a satisfactory quantitative level of school attendance by high quality education, and most importantly to reverse the trend
of migration of best-educated young people. To support the quality of human capital requires high-quality education to be supported and regional
R&D centers to be developed.
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
A N E TA K A R A S E K
Creative class
Polish regions face the challenges to strengthen and use endogenous potential of individual regions and develop certain mechanisms to enhance
the spread of development processes. Consequently, Poland can be capable
of joining a group of highly developed creative societies with developing advanced forms of an information society and knowledge-based economies1.
The new concepts of regional and urban development refer to creative potential of residents and institutions as one of the key factors in the transition
from a traditional to modern development path2.
1
2
P. Artymowska, A. Kukliński, P. Żuber, Rozwój regionalny, polityka regionalna, studia regionalne – nowe interpretacje [Regional development, regional policy, regional studies – new interpretations], Vol. 1, Forum
Rozwoju Regionalnego i Polityki Regionalnej Regio Forum, Ministry of Regional Development, Warszawa
2011, p.43.
M. Sagan, Potencjał rozwojowy miast wojewódzkich Polski Wschodniej [Development potential of region al
capitals of Eastern Poland][in:] Strategiczna problematyka rozwoju Polski Wschodniej [Strategic issues of development in Eastern Poland] edited by D. J. Błaszczuk, M. Stefański, Wyższa Szkoła Ekonomii i Innowacji
in Lublin, Lublin 2010, p. 198.
224
ANETA KARASEK
At the beginning of 1990’s, in Australia the concept of a “creative nation’ was
developed, in response to challenges that had to be faced by innovation in information technology. In the late 1980’s, the term creative city was coined by
Charles Landry3 who discussed it in his book The Creative City (1995). In 2003,
Richard Florida presented his concept of the creative class in his book The Rise
of the Creative Class. His concept of the creative class is based on the prerequisite that it is just creative people who have an impact on economic growth,
and representatives of this creative class head for large cities and regions that
offer a variety of economic opportunities and stimulating and tolerant environment. Actually, they are capable of creating novelty ideas and are likely
to create new jobs to contribute to regional economic growth. It is important
to verify whether this concept applies to Polish voivodships and whether a level
of economic growth depends on a size of the creative class.
In Poland, the group of voivodships with a low level of GDP per capita
should be carefully examined. Despite the fact that the GDP per capita in Poland in 2010 (measured by purchasing power parity) has already reached
half the average for the EU-25, the GDP per capita of the least developed
voivodships, i.e. lubelskie, podkarpackie, warmińsko-mazurskie, podlaskie
and świętokrzyskie amounts to only 41-47% of the average for the countries
of the enlarged EU4. Adopted by the Council of Ministers in 2008 and revised by the Council of Ministers to be adopted on 11 July 2013, the Strategy
of Socio-economic Development of Eastern Poland until 2020 reflects such
a special approach towards this macro-region.
This study focuses on the creative class of Polish voivodships, especially
that of Polish Eastern voivodships and identifies certain interactions between
the creative class and economic growth. This paper shall discuss the concept
of the creative class, Florida’s 3Tmodel, some methods to measure the size
of the creative class in Polish voivodships, the spatial distribution of the crea-
3
4
More in: Ch. Landry, F. Bianchini, The Creative City, Demos, UK 1995.
Strategy for Socio-economic Development of Eastern Poland until 2020 (adopted by the Council of Ministers
on 30 December 2008 by Resolution no 278/2008), p. 8.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
tive class in Eastern Poland and evaluates the impact of the creative class on
regional economic growth there.
The examination employs secondary data, i.e. the statistical data from
the Central Statistical Office on the number of active registered business entities operating in certain industries according to the PKD 20075 in the fourth
quarter of 2009, 2010, 2011 and 2012 as well as the data provided by the Eurostat, the Polish Patent Office and The Situation of LGBT Persons in Poland.
2010 and 2011 Report. SPSS software is applied for calculating Pearson correlation coefficient.
1. Concept of the creative class
The distinguishing characteristic of the Creative Class is that its members
engage in work whose function is to ‘create meaningful new forms’. Richard
Florida defines the Creative Class as consisting of two components. The Super-Creative Core of this new class includes scientists and engineers, university professors, poets and novelists, artists, entertainers, actors, designers and
architects, as well as the thought leadership of modern society: nonfiction
writers, editors, cultural figures, think-tank researchers, analysts and other
opinion-makers. Whether they are software programmers or engineers, architects or filmakers, they fully engage in the creative process6.
Beyond this core group, the Creative Class also includes ‘creative professionals’ who work in a wide range of knowledge-intensive industries such
as high-tech sectors, financial services, the legal and health care professions,
and business management. These people engage in creative problem solving,
drawing on complex bodies of knowledge to solve specific problems. Doing
so typically requires a high degree of formal education and thus a high level
of human capital. People who do this kind of work may sometimes come
5
6
PKD – Polska Klasyfikacja Działalności – a Polish classification of economic activities performed by economic
entities.
R. Florida, The Rise of the Creative Class, Basic Books, New York, 2002, pp. 68-69.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ANETA KARASEK
up with methods or products that turn out to be widely useful, but it’s not
part of the basic job description7.
As specified in the concept of the creative class, the Super-Creative Core
create novelty ideas, products, services, and the another group of Creative
Professionals known as knowledge-based workers selects them to use commercially. These two groups are accompanied by a smaller group of Bohemians who review novelty ideas, products, services in varied ways, often
parodying them or protesting against it. Bohemians can also create novelty
ideas and intellectually support and revive ideas. Bohemian communities
include smaller groups of artists, celebrities, niche and alternative art artists,
performers, active anarchists, minority activists, etc.
Creative Class people such as physicians, lawyers and managers do
this kind of work in dealing with the many varied cases they encounter.
In the course of their work, they may also be involved in testing and refining new techniques, new treatment protocols, or new management methods
and even develop such things themselves. As a person continues to do more
of this latter work, perhaps though a career shift or promotion, that person
moves up to the Super-Creative Core: producing transferable, widely usable
new forms is now their primary function8. The major occupational categories included in the definitions of the major classes are as follows:
Table 1. Creative class
Super-Creative Core
Creative Professionals
Computer and mathematical occupations
Management occupations
Architecture and engineering occupations
Business and financial operations occupations
Life, physical, and social science occupations
Legal occupations
Education, training,
and library occupations
Healthcare practitioners and technical occupations
Arts, design, entertainment, sports, and media
occupations
High–end sales and sales management
Source: Florida R., The Rise of the Creative Class--Revisited: 10th Anniversary Edition--Revised and Expanded, Basic Books, 2012, p.401.
7
8
Ibidem, p. 69.
Ibidem, p. 69.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
Richard Florida claims that a country’s geographic center of gravity has
shifted from the old industrial regions towards new creative and innovative
areas. The creative class heads for large cities and regions that can offer a variety of economic opportunities, a stimulating environment and convenience
for everyone9. Members of the creative class are capable of creating novelty
ideas and are likely to create new jobs that can contribute to regional economic growth. If regions and cities want to implement the cohesion policy
in such a way, they encourage representatives of the creative class to settle
there. However, the key to economic growth is not only an ability to attract
the creative class, but also to create conditions for creating novelty ideas and
high-tech companies.
Florida with colleagues and graduated students from Carnegie Mellon developed a statistic portrait of the creative class in the United States
of America. Studying the factors capable of attracting creative companies, he
focused on finding quantitative and measurable evidence of the significance
of diversity and multiculturalism in cities, including tolerance for creativity,
cultural preferences and their impact on regional economic development.
His findings suggest that the high number of staff representing the creative
class is a key determinant of developing creative businesses which look for
creative workers in different places. Because it is just an area that can determine that representatives of the creative class can be found there, a given area can also be helpful in finding a job, partners and can provide good
conditions for creativity.
Regional economic growth as specified by the creative capital theory
is driven by the three Ts of economic development10. These three Ts stand for:
ƒƒ Talent – creative capital which is measured by the number of persons
engaged in creative occupations,
R. Florida, Narodziny klasy kreatywnej oraz jej wpływ na przeobrażenia w charakterze pracy, wypoczynku,
społeczeństwa i życia codziennego [The Rise of the Creative Class: And How It’s Transforming Work, Leisure,
Community and Everyday Life], Narodowe Centrum Kultury, Warszawa 2010, p. 33.
10 Ibidem, p. 257.
9
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ANETA KARASEK
ƒƒ Tolerance – regarded as being versatile, open minded and friendly
to people of different races, nationalities and those who live varied
ways,
ƒƒ Technology – measured by the volume of concentrated innovation
and industries based on cutting-edge technologies because it is just
technology and innovation that are behind economic growth.
Although necessary, none of these elements is inherently capable of ensuring economic development. If a given area wants to be attractive to creative people, generate innovation and stimulate economic growth, all of these
three factors are indispensable11.
The fact that these three elements are interdependent has an impact on
the size of the creative class which was most influential in 2011 in the following countries:Singapore (47.3%), the Netherlands (46.3%), Switzerland
(44.8%), Australia (44.5%) Sweden (43.9%), Belgium (43.8%), Denmark
(43.7%), Finland (43.4%), Norway (42.1%), and Germany (41.7%). The United
States does quite a bit worse on this measure than on innovation and technology – ranking 27th in the world, just behind Slovakia. One BRIC nation,
Russia ranks higher than the U.S. at 20th (38.6%). Brazil is 57th (18.5%), and
China 75th (7.4%)12.
The U.S. creative class in 2002 includes some 38,3 million Americans,
roughly 30 percent of the entire U.S. workforce. It has grown from roughly 3 million workers in 1900, an increase of more than tenfold13. As of 2010,
the Creative Class composed more than 40 percent of the workforce in larger
metro areas like San Jose, the fabled Silicon Valley, greater Washington, DC,
and Boston, as well as smaller college towns such as Durham, North Carolina; Ithaca, New York; Boulder and Ann Arbon14.
11
Ibidem, p. 256.
12http://www.theatlanticcities.com/jobs-and-economy/2011/10/worlds-leading-creative-class-countries/228/
13
14
R. Florida, The Rise..., p. 74.
R. Florida, The Rise of the Creative Class – Revisited: 10th Anniversary Edition – Revised and Expanded, Basic
Books, 2012, p. 11.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
Research on economic growth of different countries have shown a clear
interrelation of country’s economic success and aggregate human capital
(measured by the level of education)15. Jane Jacobs verified this phenomenon
empirically and noticed that cities are capable of attracting creative people
and thus stimulating economic growth16.
The concept of the Creative City advocates that a culture of creativity
should be embedded in how urban stakeholders operate. Accordingly, a set
of regulations and incentives should be revised and there should be a shift
towards a more ‘creative bureaucracy’. Effective management is inherently
an advantage capable of generating potential and wealth. While promoting
creativity and accepting the use of imagination in the public, private and
community spheres, arange of opportunities and potential solutions to city’s
problems is expanded17.
The surveyed within the ACRE18 project were to indicate the most creative metropolitian regions out of the ones participating in the project, i.e.
Amsterdam, Barcelona, Birmingham, Budapest, Dublin, Helsinki, Leipzig,
Milan, Munich, Poznań, Riga, Sofia and Toulouse. The aim of this study was
to assess the impact of the emerging ‘creative class’ and the rise of the ‘creative industries’ on the competitiveness of EU metropolitan regions. Wrocław,
Kraków, Poznań and Warszawa were most frequently indicated among Polish cities; whereas the most often mentioned European cities included Paris,
Berlin, London and Prague19.
R. Florida, Narodziny..., op.cit., pp. 228-229.
More in: J. Jacobs, Cities and the health of nations, Vintage; Reprint edition, 1985.
17 Ch. Landry, Kreatywne miasto, Zestaw narzędzi dla miejskich innowatorów [The Creative City: A Toolkit for
Urban Innovators], Narodowe Centrum Nauki, Warszawa, 2013, pp. 33-34.
18 ACRE project – Accommodating Creative Knowledge – Competitiveness of European Metropolitan Regions
within the Enlarged Union.
19 T. Stryjakiewicz, M. Męczyński, Sektor kreatywny w poznańskim obszarze metropolitarnym [Creative Sector
in Poznań metropolita area], Vol. II, Atrakcyjność poznańskiego obszaru metropolitarnego dla pracujących
w sektorze kreatywnym [Attractiveness of Poznań metropolita area for the employed in the creative sector], Bogucki Wydawnictwo Naukowe, Poznań 2010, pp. 112-114.
15
16
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ANETA KARASEK
2. Measuring the creative class in Poland
The creative class in Poland was measured with the creative class model20
which is based on the prerequisites of Richard Florida’s concept that the creative class consists of two groups, i.e. the Super-Creative Core corresponding
to a range of activities of creative industries and Creative Professionals who
largely use knowledge at work, i.e. knowledge-intensive industries.
This research model distinguishes six groups of industry whose operating economic entities are regarded as the creative class. Creative activities
and entertainment are qualified as industries whose economic entities are
engaged in film, sound and music making, journalism, radio and television, advertising, publishing, cultural activities, designing service, and retail sale of cultural property. The other group of industries, i.e. Information
and Communication Technologies (ICT) is composed of entities engaged
in manufacturing ICT, including computers, electronic and optical devices;
in providing ICT services, software and games. The four other groups of industries are: financial intermediation, legal and business services, R&D and
higher education, architecture and engineering21.
Out of all the registered business entities, we have selected those that can
be classified as creative according to the research model adopted, i.e. these
entities are engaged in the above industries. The creative class in a given
voivodship is measured here by the number of active, registered economic entities operating in the selected industries as of the PKD 200722. Economic entities from the all Polish NUTS 2 regions, in particular the Polish
Eastern voivodships of lubelskie, podlaskie, podkarpackie, świętokrzyskie
and warmińsko-mazurskie that operated from 2009 to 2012 are examined.
More in: A. Karasek, Influence of the creative class on regional development in Poland, [in:] European Union
cohesion policy. Experiences, conclusions and recommendations for the years 2014-2020. Vol. 1. Selected problems related to implementing European Union cohesion policy/Influence of the creative class on regional development in Poland, ed. by B. Jóźwik, M. Sagan, T. Stępniewski, Wydawnictwo KUL, 2012, pp. 181-182.
21 Ibidem, pp. 181-182.
22 The Polish Economic Activity Classification (PKD) for 2007 uses symbols, names and scopes for classification groups at five different levels, i.e. section and subsection, division, group, class and sub-class.
20
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
The data can not be compared because the PKD 200423 was applied to collect the data for the previous years.
The creative class, as defined by the research model adopted, of all voivodships in the fourth quarter of 2009 had more than 486,000 active entities.
However, more than 508,000 entities were active in the fourth quarter of 2012,
which was an insignificant rise of 4.55%. as compared to 2009. Importantly,
this increase in the number of entities classified in the creative sector was
accompanied by growing GDP per capita in PPS, as shown in Table 2.
Table 2. Creative class and GDP per capita in PPS in Poland
Size of the creative class
GDP per capita in PPS EU-28=100
2009
486,033
61
2010
507,670
63
2011
401,106
65
2012
508,153
66
Source: author’s own study based on data from the Central Statistical Office and the Eurostat
The investigation of the share of entities that belong to the creative class
relative to all active, registered entities enables its occurrence intensity in Poland to be verified. The average share of entities operating in the creative sector related to the total of registered, active entities operating in the fourth
quarter of 2012 in Poland amounted to 14.31%, which is low compared to European countries or the United States. A small size of the creative class in Poland was also reported in Poland 2030. Development Challenges, which, as its
authors claim, results from a low share of people who recognise post-material values as the key to achieve development capital, and culture still fails
to be regarded as a valuable development resource24.
23
Data collected according the PKD 2007 and PKD 2004 differ in terms of accuracy and classification methods. The PKD 2004 comprises 17 sections and 62 divisions, whereas the PKD 2007 21 sections and 88 divisions.
24 Polska 2030. Wyzwania rozwojowe [Poland 2030. Development challenges], Kancelaria Prezesa Rady Ministrów [Chancellery of the Prime Minister of Poland], Warszawa, 2009, p. 340.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ANETA KARASEK
The highest concentration of active entities that belong to the creative class
was reported in 2012 in mazowieckie (118,235 entities) and śląskie (57,421 entities). Compared with 2009, the highest increase was in małopolskie (109.1%)
and mazowieckie (108.7%). The highest share of entities of the creative sector in the total number of entities was reported in mazowieckie (18.82%),
whereas this share was below the national average in all the voivodships
of Eastern Poland, see Chart 1. This reflects the low share of entities that belong to the creative sector in the total of active, registered entities relative
to the other voivodships.
Chart 1.Share of economic entities that belong to the creative sector relative to the total of active,
registered entities in the 4th quarter of 2012
Source: author’s own study based on data from the Central Statistical Office
The size of the creative class in all the voivodships of Eastern Poland
is below the national average, and its greatest severity was reported as follows in: lubelskie, podkarpackie, warmińsko-mazurskie, świętokrzyskie and
podlaskie. The highest rate of growth of the number of entities operating
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
in the creative sector between 2009 and 2012 can be recorded for the voivodship of podkarpackie, i.e. 6.08%, while the number of entities decreased by
2.5% in świętokrzyskie. The remaining voivodships recorded a slightly higher
number of entities. Note that the ranking of regions has not been impacted
by the changes in the size of creative class since 2009, see Chart 2.
Chart 2. Creative class in the voivodships of Eastern Poland
in the 4th quarters of 2009, 2010, 2011 and 2012
Source: author’s own study based on the data from the Central Statistical Office.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ANETA KARASEK
3. 3T model applicable to Polish voivodships
The distinguished elements of Technology, Talent, Tolerance in Florida’s 3T
model shall have decribed indicators to enable interregional comparisons.
Florida’s method of describing his 3T model can not be applied in Poland
now for no available regional and comprehensive data. Therefore, this model is adapted to local conditions, and the indicators adopted are based on
the available socio-economic data.
Talent is measured by a human capital index calculated by the share of tertiary graduates aged 25-64 relative to the total population of this age range
in a given voivodship. The highest share of this population relative to the total population is in mazowieckie (29.4%) and the lowest in lubuskie (17.3%),
as depicted in Chart 3.
Chart 3. Share of tertiary graduates aged 25-64 relative to the total of population
of this age in the 4th quarter in 2012
Source: author’s own study based on the data from the Local Data Bank of the Central Statistical Office
The highest share of third-level graduates aged 25-64 across the voivodships of Eastern Poland relative to the total population was reported in lubelskie (22.8%) and podlaskie (22.3%) which have much more schools of higher
education than the average value for this region. It should be pointed out that
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
the shares of third-level graduates in lubelskie, podlaskie and świętokrzyskie
are more than 20% of the total population only.
The concept of the creative class focuses on creating a climate of openness
and tolerance as important determinants for economic growth. The U.S. study
employed the indicator of the number of homosexual persons to evaluate
the level of tolerance. There is no similar research in Poland so the data
from The Situation of LGBT Persons. 2010 and 2011 Report serve to evaluate the level of tolerance in Poland. This report analyses the social situation
of bi- and homosexual persons in Poland in 2010-2011 based on the results
of the survey of 11,144 LGBT persons in 2011. The results show that a high
percentage of bi- and homosexual persons continue to experience physical and psychological violence because of their sexual orientation, i.e. 12%
and 44% of the surveyed were victims of physical and mental violence, respectively25. The share of persons who hide their sexual orientation from
the public sphere decreased by 15 percentage points in the workplace, by
10 percentage points in the school/university, by 13 percentage points from
their neighbors. About 70% of the surveyed hide their sexual orientation
in their workplace and at school/university, 50% in their place of living,
e.g. from their neighbors, and 40% do so even while being in a relationship
with a partner of the same sex. However, the share of persons who conceal
their sexual preference from their family increased by 7 percentage points,
i.e. 63% of the surveyed currently declared that at least one member of his
or her family knows his or her sexual orientation26.
The third element of the model, or Technology is evaluated based on
the Innovation Index which is measured by the number of patents and
rights of protection for utility models granted to domestic entities. In 2011,
2,487 patents and rights of protection for utility models were granted to do-
Sytuacja społeczna osób LGBT, raport za lata 2010 i 2011 [The Situation of LGBT Persons. 2010 and 2011 Report], ed. by M. Makuchowska and M. Pawlęga, Kampania Przeciw Homofobii, Warszawa, 2012, p. 13.
26 Ibidem, p. 15.
25
EASTERN POL AND. DEVELOPMENT CHALLENGES
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236
ANETA KARASEK
mestic entities, which was a significant rise of 26.44% compared to 200927.
This increase resulted from a better protection of intellectual property as well
as higher expenditures for research and development. The largest number
of patents and rights of protection for utility models was granted to entities
from mazowieckie (511), śląskie (404) and dolnośląskie (293). The least number was granted to entities from lubuskie(21), podlaskie (21) and warmińskomazurskie(24), see Chart 4.
Chart 4. Patents and rights of protection for utility models granted in each voivodship
Source: author’s own study based on the data from Raport roczny za 2011 rok [2011 Annual Report], Urząd Patentowy Rzeczypospolitej
Polskiej [Polish Patent Office]
The number of patents and rights of protection granted in the Polish Eastern voivodships in 2011 is well below the national average. The least of them
were granted to entities from warmińsko-mazurskie (24) and podkarpackie
(75) which have a small number of schools of higher education relative
to the remaining voivodships of Eastern Poland.
It is worth examining whether the size of the creative class in a given region depends on the level of technology there. Chart 5 depicts the interre-
27
Raport roczny 2009 [2009 Annual Report], Urząd Patentowy Rzeczypospolitej Polskiej [Polish Patent Office], p. 36 and Raport roczny 2011 [2011Annual Report], Urząd Patentowy Rzeczypospolitej Polskiej [Polish
Patent Office], p. 54.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
lation between patents and rights of protection for utility models granted
to domestic entities and the size of the creative class in 2011. Pearson correlation coefficient for the Polish voivodships amounts for 0.931 at a significance level of 0, which indicates a strong interrelation between the size
of the creative class in each voivodship and the number of patents and rights
of protection for utility models granted to domestic entities. This indicator
for the Polish Eastern voivodships is 0.869 at a significance level of 0.56.
Chart 5. Patents and rights of protection for utility models granted to domestic entities
and the size of the creative class in 2011
Source: author’s own study based on the data from the Central Statistical Office and Raport roczny za 2011 rok, Urząd Patentowy Rzeczypospolitej Polskiej
The data collected shows a clear relationship between patents and rights
of protection for utility models granted to domestic entities and the size
of the creative class in 2011, which is depicted in Chart 5.Importantly, the rise
of entities of the creative sector overlaps with the higher number of patents
and rights of protection for utility models in four out of the five eastern
voivodships, which is except warmińsko-mazurskie. This is due to the fact
that members of the creative class working in these voivodships create, implement and patent new projects, which is an impact on the level of technology there.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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238
ANETA KARASEK
4. Regional economic growth impacted by the creative class
The emerging geography of the Creative Class is dramatically affecting
the competitive advantage of regions across the United States. Significant
competitive advantage goes to regions that are home to substantial concentrations of this class, whereas regions that are home to substantial concentrations of this class, whereas regions that are home to large concentrations
of the Working and Service Classes are by large being left behind28.
Concentrations of educated people drive regional growth what is written
in the human capital theory advanced by Robert Lucas and Edward Glaeser.
Florida said that regional development is powered by creative people, who
prefer places that are diverse, tolerant and open to new ideas. Greater and
more diverse concentrations of creative capital in turn lead to higher rates
of innovation, high-technology business formation, job generation and economic growth29.
As discussed previously, Polish studies indicate the small distribution
of the creative class in each Polish voivodship. Similarly, the level of economic growth in each region measured by gross domestic product (GDP)
per inhabitant, in purchasing power standard (PPS) varies and is lower than
50% of the EU average in all the Polish Eastern voivodships.
To verify the impact of the creative class on regional growth, we examined
the relationship between the number of entities that belong to the creative
class by voivodship in 2010 and gross domestic product (GDP) per inhabitant, in purchasing power standard (PPS), by NUTS 2 region in 2010, which
is depicted in Chart 6.
28
29
R. Florida., The Rise..., p. 243.
Florida R., The Rise..., p. 249.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
Chart 6. Gross domestic product (GDP) per inhabitant, in purchasing power standard (PPS),
by NUTS 2region in 2010 (in percentage of EU-27 = 100) and the size of the creative class in 2010
Source: author’s own study based on the data from the Central Statistical Office and the Eurostat
Pearson correlation coefficient for the Polish voivodships amounts
to 0.944, which indicates a strong correlation between GDP per inhabitant
in PPS and the occurrence of the creative class in each of the voivodships.
In contrast, Pearson correlation coefficient for the Polish Eastern voivodships is 0.933. This indicates a strong negative correlation and that the growth
of the creative class decreases the level of GDP. The potential of the creative
class of these voivodships is not entirely used.
In reference to Florida’s view presented in his book The Rise of the Creative Class, regions with a high share of creative people will perform better
economically because they generate more innovations, have a higher level
of entrepreneurship, and attract creative businesses. Places that are home
to large concentrations of the Creative Class also rank highly as centres of innovation and high-tech industry. Working class centres by contrast have low
levels of high-tech industry, innovation, human capital and employment
growth. The correlation between Working Class concentration and these
factors are uniformly negative and statistically significant. Service Class also
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ANETA KARASEK
have low levels of innovation, low levels of high-tech industry, and low levels of economic growth30.
Summary
The paper discusses the concept of the creative class, Florida’s 3T model,
some methods to measure of the size of the creative class in Polish voivodships, the spatial distribution of the creative class in Polish Eastern voivodships and evaluates the impact of the creative class on regional economic
growth. The aims of the paper, i.e. studying the occurrence of the creative
class in Polish voivodships, especially in Eastern Poland and describing
the correlation between the creative class and economic growth have been
achieved. The investigation proves a clear and significant interdependence
between GDP per inhabitant in PPS and the creative class in each voivodships. There is a strong negative correlation in the voivodships of Eastern Poland, which means that the larger creative class there can decrease the level
of GDP, and thus the creative class is not sufficiently used there.
Moreover, the study indicates a strong correlation between the size
of the creative class in each voivodship and the patents and rights of protection for utility models granted to domestic entities. This fact confirms
that regions where creative people settle show a better level of technological
development, which is reflected in the number of patents and rights of protection for utility models granted to domestic entities.
Florida claims that a universal strategy for regions can not be formulated
because creating a creative eco-system is an integrated process related to regional specific strengths, and solutions can be found in the knowledge, intelligence and abilities that have region’s inhabitants. Each voivodship can
decide individually on solutions but the key is ‘to block those who are block-
30
R. Florida, The Rise..., p. 243.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CREATIVE CLASS
ing’, i.e. decision makers, micro-managers, structures of social control and
vertical structures of power that suppress this energy and channel to lose it31.
The share of creative class in Poland is small relative to that in Europe
and the United States and even smaller in Eastern Poland than the average
for Poland. The low level of the creative class in Polish eastern voivodships
should be a clue what kind of action should be taken to attract the creative
class to come there. Decision makers should focus on creating an environment for the creative class by creating the best possible conditions to live
and grow. Smart regional specialisation seem to be important to create an
efficient environment for the creative class. The new programming period
of 2014-2020 and the 2020 Strategy for European guide the European Union’s
action and funds to use regional endogenous potential as efficiently as possible, which provides the voivodships of Eastern Poland with an opportunity to use the existing potential of creative people of this macro-region and
attract new potentials there.
31
R. Florida, Narodziny..., p. 17.
EASTERN POL AND. DEVELOPMENT CHALLENGES
241
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
J A R O S Ł AW K U Ś P I T
Foreign direct investment
Intensive capital flow in the form of foreign direct investment (FDI) is a characteristic phenomenon in the modern world economy. Since the early 1990s
Poland has been considered to be one of the most attractive investment markets. Its share in capital absorption as FDI in recent years is about 1% of global capital flow. Capital influx, the motives for foreign investments and their
influence on the economy are subject to numerous studies and publications.
Among tendencies characterizing FDI influx to Poland, the trend of strong
concentration of investments in some regions of the country with almost
totally neglected other regions is especially striking. This means that there
are certain specific factors in the region that can influence its attractiveness
for foreign investors.
The subject of this analysis will be the influx of direct foreign investment
to voivodeships of the Eastern Poland macroregion. It includes a group of five
244
JAROSŁAW KUŚPIT
voivodeships: Lubelskie, Podkarpackie, Podlaskie, Warmińsko-Mazurskie
and Świętokrzyskie. The main purpose of this analysis is to determine the reasons for scarce interest of foreign investors for locating their activity in this
macroregion. Diagnosing the causes should help in forming recommendations for potential activities that may improve investment attractiveness
of Eastern Poland.
In this chapter, literature data will be reviewed. Based on the available
statistical data and an analytical descriptive method, the author will try
to identify the most important tendencies and draw appropriate conclusions.
1. Foreign direct investment in theoretical and practical research
Capital transfers in the form of foreign direct investment have been part
of world economy since its earliest emergence. The especially quick increase in investment values has been observed since the 1980s. Larger
scale and significance of FDI flows have been reflected in the increased
number of studies attempting at explaining the nature and reasons for
this phenomenon on theoretical grounds. A significant area of theoretical deliberations is establishing the determinants influencing the location
of foreign direct investments. There is a noticeable disparity among approaches of authors of various theoretical concepts, and the theory itself
is considered to be informal1. Many concepts refer to J.H. Dunning’s eclectic theory of international production, also referred to as the OLI (Ownership, Location, Internalization) paradigm. According to this approach,
an economic enterprise makes a decision to directly invest in a foreign
country when it dominates over the local companies in terms of ownership, location and internationalization and if it is in line with the strategic
goals of the enterprise2. Studies on the OLI paradigm allowed for deter1
2
A. Golejewska, Lokalizacja bezpośrednich inwestycji zagranicznych w układzie sektorowo-regionalnym,
[in:], A. Zielińska-Głębocka (ed.) Lokalizacja przemysłu a konkurencyjność polskich regionów (w kontekście
integracji europejskiej), University of Gdańsk Press, Gdańsk 2009, p. 177
A. Cieślik, Geografia inwestycji zagranicznych, University of Warsaw Press, Warsaw 2005, p. 29.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
mining three groups of factors behind the decision to make FDI. These
are factors specific for the country (both of origin and of investment), for
the branch of economic activity and for the enterprise itself3. A new theory of international enterprise emerged at the time of dynamic FDI expansion in the late 1980s and early 1990s. It combines elements of Dunning’s
concept with empirical studies results. These new approaches are mostly based on models of so called new foreign trade theory utilizing tools
of the market organization theory4. The views of the following researchers
should be mentioned here: E. Helpman, P. R. Krugman, J. R. Markusen,
A. J. Venables and S.R. Yeaple5.
Theories concerning direct investment use various approaches to explain the reasons for undertaking economic activity abroad and motives
that investors take into account when choosing a country of investment.
At the same time, the literature does not include too much data on the factors determining the decisions to locate FDI in particular regions. Analysis
of empirical data at the state level allows for a quite precise determination
of such factors because national authorities encourage foreign investment
inflow by implementing well-defined policies. Thus, many factors occurring
at the national level play a similar role in particular regions. However, there
are also numerous specific factors determining the evaluation of their investment attractiveness. Analysis of empirical data concerning a spatial distribution of FDI in particular countries indicates significant regional variation.
It is most often characterized with strong concentration in certain regions
of a country and a total marginalization of many others. A telling example
of the described situation is FDI influx into China. Foreign capital concentrates its attention in eastern regions, while the central and western part
of the country is largely neglected by foreign companies. It can doubtlessly
be explained by central government policy (creation of special economic
3
4
5
A. Golejewska, Lokalizacja..., op. cit., p. 179.
A. Cieślik, Geografia..., op. cit. p. 46.
Ibidem, p. 48-57.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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246
JAROSŁAW KUŚPIT
zones) but it is also a result of the evaluation of investment attractiveness.
Such a structure of investment influx shows that there are specific factors
determining investment location in particular regions.
2. Eastern Poland as a location for direct foreign investment6
As it was mentioned above, analysis of data concerning foreign direct investment influx to particular Polish voivodeships has demonstrated a strong
territorial concentration of FDI. Such a tendency is very unfavorable for
Eastern Poland. In the specification presented below, the regions analyzed
occupy the bottom positions. The combined share of Eastern Poland voivodeships did not exceed 6% of the total value of FDI in Poland in recent years.
As many as six single voivodeships had a higher share, and in the dominant
Mazowieckie voivodeship there was seven times as much FDI as in the five
analyzed voivodeships combined. It should also be stressed that this structure of foreign investment influx has been typical of the whole time period
since the 1990s.
Analyzing the data in Table 1, we should remember that they are imprecise. Specifications prepared by the Central Statistical Office (GUS) are based
on the location of company registration and not the actual place of operation. Due to management reasons and for the sake of prestige many foreign
investors register their Polish headquarters in Warsaw and other large cities
so their branches and factories established in other parts of the country are
counted as investments in the headquarters location.
6
The analysis included here is an extension and actualization of the author’s considerations included in:
J. Kuśpit, H. Żukowska, Przyczyny słabego rozwoju zagranicznych inwestycji bezpośrednich we wschodnich
regionach Polski, [in:], Cz. Skowronka (ed.), Regionalne aspekty społecznej gospodarki rynkowej, Polish Economic Society, Warsaw 2006.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
Table 1. Foreign direct investment influx to Polish voivodeships in the years 2007-2010 in million euros
No.
Territorial unit
2007
2008
2009
2010
Midyear
20072010
Midyear
share
in %
Poland
17242
10128
9896
7319
11146
100
1.
Mazowieckie
6746
4412
4215
3412
4696
42.1
2.
Śląskie
1801
921
828
568
1029
9.2
3.
Dolnośląskie
1967
839
773
423
1001
9.0
4.
Wielkopolskie
1193
952
773
733
912
8.2
5.
Małopolskie
1145
514
547
492
675
6.1
6.
Pomorskie
956
493
719
449
654
5.9
7.
Zachodniopomorskie
760
518
481
271
507
4.6
8.
Łódzkie
601
310
384
186
370
3.3
9.
Lubuskie
461
265
159
114
250
2.2
10.
Kujawsko-Pomorskie
341
225
245
121
233
2.1
11.
Podkarpackie
276
193
207
161
209
1.9
12.
Opolskie
265
154
160
106
171
1.5
13.
Lubelskie
221
98
138
74
133
1.2
14.
Podlaskie
201
56
96
71
106
1.0
15.
Warmińsko-Mazurskie
173
76
98
71
104
0.9
16.
Świętokrzyskie
136
103
72
67
94
0.8
Eastern Poland
1007
526
611
444
647
5.8
Source: Estimation of GDP per capita and foreign direct investment in voivodeships and leading indicators, BIEC (Bureau for Investments and Economic Cycles), Warsaw 2011, pp. 32-34.
However, this remark does not significantly alter the general tendency. Eastern Poland voivodeships score even more poorly if the criterion
of FDI per capita is used. They were classified on the five bottom positions
and the midyear value of foreign investment in the period analyzed exceeded 100 euro in none of them. In this respect, the Lubelskie voivodeship
was the worst in Poland with its FDI per capita of only 61 euro in the years
2007-2010. In comparison, it was 902 Eeuro in Mazowieckie, 348 euro
in Dolnośląskie, 300 euro in Zachodniopomorskie. Even in the Łódzkie
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
voivodeship classified as 10th, the FDI per capita was two and a half times
higher7.
The starting point for determining the reasons of little FDI influx to Eastern Poland voivodeships should be the identification of the most important
factors deciding about their investment attractiveness. Multidimensional
studies in this area conducted by institutions dealing with the issue of FDI
allow for dividing the location determining factors into two groups8.
1. Direct, so called “hard” factors – allowing for a reduction of investor’s
costs:
ƒƒ transport accessibility;
ƒƒ size and quality of labor force;
ƒƒ labor costs;
ƒƒ access to local and foreign sales market;
ƒƒ development of economic infrastructure.
2. Indirect, so called “soft” factors:
ƒƒ level of economic development;
ƒƒ development of social infrastructure;
ƒƒ environmental protection policies;
ƒƒ local community activity in attracting investors;
ƒƒ level of general safety.
The role of particular factors changes depending on the type of investors’
economic activity9. In the case of industrial investment the most important
factors, in the following order, are: size and quality of labor force, transport
accessibility, labor costs and economic infrastructure development. Decisions concerning investment in services, apart from direct factors, should
take into account the following indirect factors much more than in the case
of industrial investments: safety level, environmental protection and the level
of economic development. Advanced technologies investments, alongside
7
8
9
Estimation of GDP per capita, foreign direct investment in voivodeships and leading economic indicators, BIEC
Bureau for Investments and Economic Cycles Warsaw 2011, p. 36.
M. Nowicki (ed.) Atrakcyjność inwestycyjna województw i podregionów Polski 2012, IBNGR, Gdańsk 2012, p. 12.
Ibidem.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
the above mentioned factors, additionally require a high level of social infrastructure.
Transport accessibility
The evaluation of this factor depends on the geographical location and
the degree of development of particular elements of transport infrastructure. The significant distance between Eastern Poland voivodeships and
the western border or sea ports makes access to the EU market difficult. This
is a serious obstacle for foreign investment inflow, especially for industrial
investors. An additional difficulty results from the poorly developed transport infrastructure. The road network density in the voivodeships analyzed
is below the national average. According to the 2011 data, almost all Eastern
Poland voivodeships had lower public surfaced road network density compared to the national average. The only exception was the Świętokrzyskie
voivodeship with its road density of 127.9% of the national average. The highest ranked Polish voivodeship in this category was the Śląskie voivodeship
with its road network density of 200% of the national average10. It should
also be pointed out that the proportion of trunk roads, most important for
potential investors, was very small. Investment plans concerning a construction of new motorways and expressways do not promise significant improvement in this area. Only two East-West motorways are going to cross Eastern
Poland. With no well-developed North-South road network in Eastern Poland, it is hard to assume that this region will become significantly more attractive for foreign investors.
The evaluation of the existing railway network indicates that the situation is very similar to the road network system. According to the 2011 data,
the Lubelskie and Podlaskie voivodeships had about 4 km of railway tracks
per 100 km2. The Podkarpackie, Warmińsko-Mazurskie and Świętokrzyskie
voivodeships had their railway network densities in the range of 5.1–
10
Local Data Bank, GUS, Warszawa, www.stat.gov.pl (as of 22.07.2013.)
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
6.2 km/100 km2. In the Śląskie voivodeship, which had the best developed
network, it was 17.4 km/100 km2.11
When evaluating the weight of the transport accessibility factor for foreign
investment location, generally the low level of the whole Polish transport infrastructure should be taken into account. This fact inclines foreign companies to invest in the parts of the country situated closer to countries with their
well-developed infrastructure. We should also keep in mind that a well-developed road and railway system within voivodeships determines efficient labor
force movement. It is very important, especially for investments in services
and advanced technologies sectors. In Eastern Poland voivodeships, it is even
more significant due to a low level of urbanization and a small number of urban agglomerations. Such investments can only be located in large centres.
It should also be stressed that the voivodeships analyzed are almost totally devoid of air transport infrastructure. Passenger airports are in Rzeszów
and Lublin, but the number of airline operations and passengers is marginal.
Size and quality of labor force
The labor force resources in Eastern Poland have been presented in the table below.
Table 2. Eastern Poland voivodeships population in 2011
Age
Population
Pre-productive
Productive
Post-productive
Unemployed
Lubelskie
2 174.8
410.2
1 372.2
389.5
128.6
Podkarpackie
2 127.8
422.2
1 360.2
346.4
148.8
Podlaskie
1 202.0
223.3
746.7
212.9
63.9
Świętokrzyskie
1280.1
228.7
811.1
238.3
87.6
WarmińskoMazurskie
1453.1
284.5
947.9
220.2
99.5
Source: Voivodeships Statistical Yearbook 2012, GUS, Warsaw 2012, pp. 259,266.
11
Voivodeships Statistical Yearbook 2012, GUS, Warsaw 2012, p. 565.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
The data included in Table 2 indicate the quite good population potential
of the voivodeships analyzed. The combined number of inhabitants of Eastern
Poland constitutes 21.4% of the total population of Poland, while the combined area of the five voivodeships is 20.2% of the territory of Poland. Thus,
the population density is lower than the national average of 122 people per
1 km2. It is also much lower than the population density of the top voivodeships: Śląskie – 381 people/km2, Małopolskie – 215 people/km2, Dolnośląskie
and Mazowieckie – 145 people/km2 and Łódzkie – 142 people/km2.
There is a significant population density variation within individual
voivodeships, e.g. in the Lubelskie voivodeship, the Świdnik district has
the population density of 154 people/km2, and the Włodawa district only
32 people/km2. Lubelskie and Podkarpackie, alongside Małopolskie and
Świętokrzyskie are the only Polish voivodeships in which the majority of inhabitants live in rural areas. At the same time, there are no significant variations in the population age structure although it should be pointed out
that the number of people who are not professionally active per 100 people in productive age is above the national average, namely, 56.5 in Podkarpackie, 58 in Lubelskie, 57 in Podlaskie and 57.6 in Świętokrzyskie. Only
in the Warmińsko-Mazurskie voivodeship, it has a lower value of 53.2 people12. The worsening of these indicators is the result of unfavorable demographic trends and negative migration balance.
The measure often used in a quantitative evaluation of labor force resources is the unemployment rate. However, its significance in investors’
decision making process is rather doubtful. Investors are more interested
in cheap labor force with appropriate qualifications. Thus, regions traditionally associated with certain branches of economy are preferred, mostly for
industrial investments.
The problem of unemployment in Eastern Poland is quite complex.
The unemployment rates do not differ much from the national average,
12
Local Data Bank, GUS, Warsaw, www.stat.gov.pl (as of 22.07.2013.).
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
which was 13.0%13 at the end of 2011. However, if we consider the number of the unemployed per job offer, the situation on the job market looks
much worse. In 2011, in Poland, the average value of the indicator was
90. The Eastern Poland macroregion voivodeships had the worst values
of the indicator, from 152 in Podkarpackie to 266 unemployed per job offer in Warmińsko-Mazurskie14. The common feature of the unemployment
structure in the voivodeships analyzed is the dominance of the up to 34 years
age group. It is a group of relatively highest space and competence mobilities.
But the structure of the education level among the unemployed is not too favorable. The largest group consists of people with basic vocational education
(Lubelskie – 24.4%, Podkarpackie – 30.2%, Podlaskie – 24.4%, Świętokrzyskie
– 28.1%, Warmińsko-Mazurskie – 27.8%)15. The proportion of people with
an even lower level of education, i.e. junior secondary, primary and incomplete primary education, is also very high (Lubelskie – 23.2%, Podkarpackie
– 20.9%, Podlaskie – 27.3%, Świętokrzyskie – 21.1%, Warmińsko-Mazurskie –
33.2%)16. However, these values are generally lower than the national average.
The distinctly lowest unemployment rate characterizes people with higher
education (from 8.5% in Warmińsko-Mazurskie to 15.4% in Lubelskie, with
the Polish average of 11.4%). It should be pointed out that the unemployment
rate in this group has increased by 2-3 times compared to 2004. The potential of academic centres in voivodeship capitals as well as newly established
colleges in smaller cities facilitate this education level increase. Summing
up, the structure of the level of education among the unemployed in Eastern Poland is more favorable than the national average. This gives potential
investors a chance for easy recruitment of better educated employees.
Number of registered unemployed and unemployment rate in voivodeships, subregions and districts www.stat.
gov.pl (as of 20.07.2013).
14 Voivodeships Statistical Yearbook 2012, GUS, Warsaw 2012, p. 318.
15 Ibidem, p. 320.
16 Ibidem.
13
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
Labor cost
In many studies of investment motives, low labor costs are often stressed
as one of the main factors determining FDI influx to Poland. However,
it seems that the significance of this factor when choosing location for direct foreign investment decreases, especially because there is little variation
between wages and labor costs in voivodeships. Average cost of 1 paid hour
of work in Poland in 2008 was 23.96 PLN. In all the voivodeships analyzed,
this value was lower than the national average (in Lubelskie it was 21.81 PLN,
in Podkarpackie – 19.68 PLN, in Podlaskie – 22.14 PLN, in Świętokrzyskie –
20.62 PLN, and in Warmińsko-Mazurskie – 20.97 PLN)17. The existing differences in labor costs result from numerous factors such as the employment
structure, level of competence or labor market situation. It seems then that
this slight advantage of Eastern Poland voivodeships does not compensate
the unfavorable influence of other FDI location factors.
Access to sales markets
This factor considered as local market absorption is extremely important
in making the decision of investing in the sector of services. If nominal
household incomes are adopted as a measure of market absorption, Eastern
Poland voivodeships cannot be regarded as attractive for this kind of investment. The value of monthly net income per capita situates the voivodeships
analyzed much below the national average, which was 1226.95 PLN in 2011.
Among the Eastern Poland voivodeships, Podkarpackie had the lowest
net income of 937.85 PLN. Its level was only 76.4% of the national average.
The Lubelskie voivodeship had an income of 1025.80 PLN – 83.6% of the national average, Świętokrzyskie – 86.6% and Warmińsko-Mazurskie – 89.4%.
The Podlaskie voivodeship had the highest net income of 1224.92 PLN – 99,8%
of the national average18. Low market absorption limits foreign investment
influx in the services sector. The influence of market absorption on invest17
18
Labor costs in the domestic economy in 2008, GUS, Warsaw 2009, p. 161.
Voivodeships Statistical Yearbook 2012,GUS, Warsaw 2012, p. 318.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
ment in the industrial sector is less important. In this case, the investment
location does not have to be fully compatible with high local demand. Potential chances for Eastern Poland to attract this type of FDI cannot be fully
realized due to the large distance of this macroregion from Western European markets, its low level of transport infrastructure and the existing labor
market limitations. This is why investors’ interest is limited.
The frequently stressed advantage of Eastern Poland is the vicinity of Eastern European countries. It is believed that the absorption of Ukrainian, Russian and Belorussian markets, with a simultaneous opportunity of conducting
economic activity on the EU territory should be attractive for investors. Unfortunately, previous experiences do not confirm that investors have taken
advantage of such opportunities. Data from companies with foreign capital
show that only 6% of their export production reaches the markets of the former USSR countries19. Also, the foreign capital companies share in the total
Polish export to the EU was lower than that of other Polish companies. We
should keep in mind that only about 35% of foreign investors are involved
in export activity.
Economic infrastructure
This factor plays a very important role, especially due to potential savings
for the investor. The insufficient level of this development constitutes a serious obstacle for some forms of economic activity.
The network of companies providing financial, insurance, real estate and
other services existing in Eastern Poland can be regarded as sufficiently developed. However, there occur certain unfavorable phenomena in this area
such as a removal of bank headquarters. A specific element of economic infrastructure with great significance for investors is the functioning of Special Economic Zones (SEZ). Exemptions and facilitations offered by SEZs
constitute a significant factor increasing investment attractiveness of a par19
J. Choina, Udział produktów z kapitałem zagranicznym w polskim handlu zagranicznym, [in:], J. Choina (ed.)
Inwestycje w Polsce, IKiCHZ, Warsaw 2005, p. 125.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
ticular area. Four SEZs have been located on the territory of the voivodeships analyzed (Mielec SSE, Tarnobrzeg SSE, Suwałki SSE and Starachowice
SSE). Additionally, numerous subzones of SEZ are formed in other Eastern
Poland towns. So far all Eastern Poland SEZs have attracted 15.1 billion PLN
in investment funds and generated almost 60 thousand jobs20. The existence
of SEZs in this region of Poland is even more important as they offer appropriately prepared areas ready for investment that are scarce in the voivodeships analyzed.
Innovation centers constitute another important element of infrastructure. They are formed with support from academic centers and research and
development units. In Eastern Poland voivodeships, favorable conditions for
such centers are mainly in academic centers located in voivodeship capitals.
Lublin, Rzeszów, Białystok, Olsztyn and Kielce have a sufficient material
and personal resources to conduct R&D activities. However, when we analyze the scientific potential in relation to the total area of the voivodeships
analyzed, the situation seems much less favorable. In all five voivodeships,
the number of scientific and research personnel per 1000 professionally active
people is below the national average of 5.3. In Lubelskie, it is 3.4, in Podlaskie – 3.6, in Podkarpackie – 3.4, in Świętokrzyskie – 1.7, and in WarmińskoMazurskie – 2.8 per 1000 professionally active people21. The expenditure on
the research and development activity in relation to GDP in Eastern Poland
was also below the national average. Only in the Lubelskie voivodeship,
it reached the national average level of 0.33% in 201122.
Social infrastructure
As an indirect factor it does not considerably influence costs of economic activity. However, it defines the quality of living conditions, which may encourage people to migrate to a given territory and increase labor force resources.
Special Economic Zones, KPMG, Warszawa 2013, p. 28.
Science and technology in 2011., GUS, Warsaw 2012, p. 90.
22 Ibid., p. 69.
20
21
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
Due to this fact, it is a significant factor regarded by investors in their decision making process. One of the most important elements of social infrastructure is the quality and activity of cultural, educational and health care
institutions as well as accessibility of touristic infrastructure. A synthetic
evaluation of these elements on the territory of Eastern Poland shows that
the voivodeships analyzed are not very attractive for investors in this respect. Nevertheless, it should be pointed out that the situation in particular
voivodeships is much varied depending on the respective elements of social
infrastructure. Moreover, some elements of social infrastructure may be more
important for particular investors than others. That is why an objective evaluation of this factor is difficult and goes beyond the scope of this analysis.
The level of economic development
One of the factors determining the level of economic development is the structure of economy on a given territory. Even general analysis of the structure
of regional economies indicates that Eastern Poland voivodeships differ from
the rest of the country in this respect. This is especially true for the Podlaskie and Lubelskie voivodeships, and to a lesser extent for the Podkarpackie
voivodeship. If we adopt the contribution of agriculture, industry and services
in generating gross value added as a measure of the economic structure, then
on the basis of data analysis, the following differences become apparent:23
the contribution of agriculture was much higher than the national average of 3.7% in Podlaskie – 9.6%, Lubelskie – 6.6%, Warmińsko-Mazurskie
– 6.6% and Świętokrzyskie – 5.3%. It was lower only in the Podkarpackie
voivodeship – 2.9%. It should be pointed out that the value of this indicator in the voivodeships analyzed was higher in 2010 than in the period before 2004.
The contribution of industry was lower than the national average of 24.3%
in Podlaskie – 18.9%, Lubelskie – 19.9% and Warmińsko-Mazurskie – 22.9%.
23
Gross Domestic Product. Regional Accounts 2010, Statistical Office in Katowice, Katowice 2012, p. 66. Gross
Domestic Product. Regional Accounts 2010, Statistical Office in Katowice, Katowice 2005, p. 48.
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
In these three voivodeships the contribution of market services was also
lower than the national average. While the contribution of non-market services was the highest in Poland – 23.1% in Lubelskie, 22.5% in Podlaskie and
20.8% in Podkarpackie, with the national average of 16.4%.
It is certainly not viable to formulate far-reaching conclusions concerning investment attractiveness on the basis of the differences in the economic
structure. Nevertheless, considering the economic structure as an indirect
factor influencing investors’ decisions about FDI location, it should be stated that the voivodeships analyzed appear to be less attractive than other regions. Such a structure may condition limited possibilities for cooperation
with local companies and a lower level of development of business environment services.
Natural environment protection
The significance of this factor for direct foreign investment influx is not
clear-cut. On the one hand, a good condition of natural environment may
increase investment attractiveness thanks to better quality of living conditions on a given territory. It may attract investors from the sectors of services and advanced technologies. On the other hand, strict requirements
concerning natural environment protection increase costs of investment
and economic activity. Some areas, with the especially valuable natural environment are entirely inaccessible for investors. This aspect of environmental
protection mostly concerns industrial investment. Because there are no regional differences in legal regulations concerning natural environment protection, the strength of their influence on investment location is determined
by the proportion of protected areas in particular voivodeships. In Eastern
Poland voivodeships, the share of legally protected areas of significant environmental value in the total voivodeship area is much varied. It is the lowest
in the Lubelskie voivodeship where such areas constitute 22.7%. In the Podlaskie voivodeship, it is 32.0%, while the remaining voivodeships are characterized with values much higher than the national average. The highest value
is in Świętokrzyskie – 64.5%, followed by 46.7% in Warmińsko-Mazurskie and
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
44.7% in Podkarpackie. In Poland, protected areas occupy 32.5% of the whole
territory with large variation among voivodeships24.
Although it is difficult to determine a straightforward relationship between the proportion of protected areas and investment influx, it should be
pointed out that in the five voivodeships which attracted 70.2% of FDI by
2010, this factor value was below the national average.
General safety level
This factor has little influence on costs of economic activity although such
correlations do exist, for example varied personal and property insurance
rates in case of higher safety risk. Safety level is mostly connected with
the quality of living on a given territory, which can be important for investors and their employees. However, considering the motives of foreign
investors in Poland,, it is quite clear that this factor has only marginal significance at the moment. Nevertheless, it should be pointed out that Eastern Poland voivodeships are considered to have the highest level of general
safety in the whole country25.
Voivodeship self-government activity in attracting investors
Although this factor is described last, it is commonly regarded as one
of the most influential elements in investors’ decision making process.
It was also confirmed by the above mentioned results of questionnaire surveys. The state of preparation of investment areas and intensity of informational and promotional activities among potential investors are regarded
here. Synthetic analysis of this factor revealed that within 16 Polish voivodeships, the Świętokrzyskie voivodeship was ranked as 16th, Podlaskie 15th,
Podkarpackie 13th, Warmińsko-Mazurskie 12th and Lubelskie 10th26. Such
low positions resulted mainly from poorly prepared investment areas there.
Environmental Protection 2012, GUS, Warsaw 2012, p. 278.
Atrakcyjność..., op. cit., p. 74.
26 Ibidem, p. 65.
24
25
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
Analyzing the activities directed towards foreign investors, other local
phenomena should also be taken into account, especially local administration efficiency, general attitudes of authorities and local communities towards
foreign investors and a transparence of granting location permits.
In a report published by the Research Institute for Market Economy concerning the evaluation of investment attractiveness in 2012, Eastern Poland
voivodeships were classified in the bottom five positions27. And in a report
prepared by the Warsaw School of Economics Centre for Regional and Local
Analysis, the Lubelskie and Świętokrzyskie voivodeships were ranked in class
F, that is the least attractive for foreign investors. Warmińsko-Mazurskie and
Podlaskie did not score much better (class E) and Podkarpackie was relatively the most attractive (class D)28.
The analysis of factors influencing decisions of FDI location in Eastern
Poland voivodeships has confirmed their low investment attractiveness.
The reasons for this state of affairs are varied. Some conditions are objective
and result from historical vicissitudes. A relative lack of industrial tradition
compared to other voivodeships and the existing economic structure limit
an influx of industrial investment. A slight advantage in terms of lower labor costs may be of a very limited significance for investors. It can only appeal to companies which absolutely need relatively inexpensive labor force
in their activity. However, one should keep in mind that such investors will
continue looking for further cost reduction so there is a possibility of relocation of their business to different regions or countries in the future.
The current structure of foreign investment location in Poland is also
unfavorable for the voivodeships analyzed. Due to the agglomeration effect,
large FDI influx to certain regions attracts more investors interested in cooperation. Also, competitive companies invest in the same regions because
27
28
Ibidem.
H. Godlewska-Majkowska, A. Komor, P. Zarębski, M. Typa, Atrakcyjność inwestycyjna regionów 2012, Warsaw
2012, p. 55.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
they treat their competitors’ investment as a proof that this area is attractive
for their branch of business. This is a kind of self-perpetuating mechanism.
Summary
We should certainly appreciate the current investments in transport and economic infrastructure, but we should also be aware that the progress in this
area will not bring about a significant increase of investment attractiveness
of these regions compared to other parts of the country. In other regions,
the investments are equally large and often even much more significant. What
is more, one should bear in mind that the initial state of the infrastructure
was much better in other regions and that they are better situated in relation to domestic and foreign sales markets. An improvement of the level
of transport infrastructure in Eastern Poland voivodeships may rather remove the existing obstacles for investment. The distance to the leading FDI
regions will most probably be increasing than diminishing. It can be expected that fulfilling investors’ expectations in terms of improved infrastructure
will allow for utilizing other attributes of investment attractiveness like, for
example, access to the ready markets of the former USSR countries or access
to cheaper labor force. The previous experiences with a construction of elements of modern transport infrastructure seem to fully confirm the above
remarks, for example, investments along the Garwolin beltway increased interest in investment along the constructed Lublin ring-road. The potential
directions of transport infrastructure development should also be considered. Nowadays, the trend to develop East-West transport routes is dominant. It is certainly a positive development although one should keep in mind
that it will result in obtaining faster connections with better developed regions of Poland and will not considerably increase the transport accessibility
of Eastern Poland for Western European investors. It may, however, improve
the utilization of advantages resulting from the vicinity to the Eastern border
and development of economic links with Ukraine, Russia and Belorussia.
Developing borderland infrastructure should also be regarded as activity fa-
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
cilitating the increase of the significance of the Eastern market. More interest in foreign direct investment in Eastern Poland may also occur in the case
of higher FDI influx to Ukraine or Belorussia. International corporations
locating their enterprises in these countries will be trying to stimulate cooperation between their outlets located in neighboring countries. This may
also result in better foreign market absorption.
To achieve real integration within the Single European Market (SEM), activities should be intensified to develop transport connection on the NorthEast route. The most important task would be the transformation of the current
S19 trunk road into a transeuropean expressway known as via Carpatia connecting the Baltic states (Estonia, Lithuania, Latvia) through the territory
of Eastern Poland with South-Eastern European countries (Slovakia, Czech
Republic, Romania, Hungary, Bulgaria) and going further South to the Balkans and Turkey. Such an investment will provide real opportunities for
taking advantage of the geographical position of Eastern Poland within
the SEM. This concept is justified by the changes in the geographical structure
of Lubelskie voivodeship foreign trade. In the years 1999-2008, the highest
export dynamics of about 420% was recorded between companies located
in the Lubelskie voivodeship and countries which joined the European Union
in 2004 and 2007. In effect, the share of export to these countries in the total
export of the voivodeship doubled. Especially high dynamics has occurred
in export to the Czech Republic, Slovakia, Hungary and Romania29.
In order to achieve true advantage of investment attractiveness, more
money should be spent in short time to improve infrastructural elements
which are still poorly developed compared to other parts of the country like
broadband internet availability. It would form a basis for attracting investors
offering services such as customer care (call centers), accounting etc. which
could use the potential of qualified labor force.
29
For further information see: J. Kuśpit, Handel zagraniczny Województwa Lubelskiego-główne tendencje i ich
przyczyny, [in:], J. Rymarczyka, M. Domiter, W. Michalczyka (ed.), Problemy regionalizmu i globalizacji, Prace
naukowe Uniwersytetu Ekonomicznego we Wrocławiu, no. 221, Wrocław 2011, pp. 312-320.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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JAROSŁAW KUŚPIT
It seems that the utilization of advantages embedded in the labor force
resources of Eastern Poland voivodeships requires significant changes
in the system of personnel training. Firstly, it must be fully correlated with
the policy of attracting foreign direct investment in preferred branches
of economy. Secondly, a system should be created that would facilitate local
influence on the creation and support of study and training programs required by the economy. It should involve a strict coordination of activities
of public institutions and private entities including secondary schools, universities, job agencies and economic enterprises. Strict cooperation in determining future needs for certain employees qualifications, developing
practice and internship systems could enhance education system efficiency
from the point of view of potential investors. It is especially important for
Eastern Poland voivodeships because, in contrast to other, better developed
regions they cannot count on in-migration of employees with desired qualifications. All the voivodeships analyzed have negative migration balance,
which, only in 2011 equaled 14588 people30. It should be assumed that such
systems should be formed in individual voivodeships because macroregional
cooperation in this respect seems unrealistic. European Funds can be used
to create and operate such systems.
It should be pointed out here that there exists some interpretative imprecision in evaluating the level of competence of labor force in particular regions. Frequently, the presented data include numbers of graduates of various
types of schools and evaluations of the level of education based on university
rankings, research grants absorption, numbers of citations, etc. It should be
emphasized that this kind of evaluation is useful for a limited number of investors only. It is certainly meaningful for research and development center
location. But the majority of investors expect solid professional preparation
in a sought after specialty. Practical skills and the possibility to obtain personnel with strictly defined competence are more important for them. Only
an efficient educational system can ensure this effect even with a lower posi30
Statistical Vademecum of Self-government 2012, GUS, Warsaw, www.stat.gov.pl (as of 22.07.2013.)
EASTERN POL AND. DEVELOPMENT CHALLENGES
FOREIGN DIRECT INVESTMENT
tion of Eastern Poland universities and schools in nationwide rankings according to the currently used criteria.
We should also remember that the improvement of investment attractiveness of Eastern Poland voivodeships largely results from factors independent from regional activity. For example, the utilization of advantages
resulting from the geographical location on the Eastern border of the European Union depends on the political and economic relationship between
the EU and neighboring countries. The eventual signing of an association
agreement with Ukraine and improved economic relations with Belorussia
would facilitate more interest in conducting economic activity on the territory of the voivodeships analyzed.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
A N N A N O WA K
Agriculture
Some spontaneous economic processes and achieved agricultural policy objectives can trigger agricultural development. Therefore, all trends in the development of that sector are shaped by national circumstances and global
trends which determine the position of agriculture in the economies of individual countries and regions.
Regardless of any changes in agriculture and its environment, agriculture remains an integral and essential part of overall social and economic
development. The structure and productivity of Polish agriculture have significantly been changed by the new reality shaped by the structural transformation and the CAP instruments affecting Polish agriculture since Poland
joined the European Union. Agricultural producers have needed to modernise faster their farms to become competitive on the Community market.
Not all farms, however, are able to satisfy the demands of a market economy
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ANNA NOWAK
and the competitive agriculture of developed countries. This is particularly
true about farms with low production potential from Eastern Poland. Agriculture in regions with a lower level of socio-economic development can
usually face more serious structural problems and worse production factors.
The Cohesion Policy and CAP instruments serve to reduce development
disparities, including those in agricultural development.
This chapter identifies the role of agriculture in the economy of eastern
Polish voivodships and discusses the transformations in this sector. Basically,
the investigation refers to the 2000-2011 period, or the time span before and
after Poland’s accession to the EU. However, some indicators are studied for
the 2002-2010 period only because the figures from the agricultural censuses
referring to those years can be compared more efficiently or no data is available for 2011. The aspects like the impact of agriculture on macroeconomic
indicators, structural transformation and changes in the efficiency of basic
factors of agricultural production such as land, labour and capital are evaluated using the data from EUROSTAT and the Polish Central Statistical Office, including those from the Local Data Bank.
1. Agricultural transformation — conditions and significance
Agricultural transformations are increasingly shaped by the superordinate
system which is no longer industry but the widely understood service sector. That system increasingly goes beyond the scope of national macroeconomics to become global1. Agricultural producers are obliged to compete
with European and global producers, which results from Poland’s accession
to the EU and globalisation2.
Typically, agriculture in economies of developing countries has a declining impact on macroeconomic indicators. This does not mean, however,
1
2
J. S. Zegar, Współczesne wyzwania rolnictwa [Modern challenges to agriculture], PWN, Warszawa 2012, p. 19.
D. E. Staszczak, Theoretical Interpretations of the European Union Enlargement: Perspectives from a New Global
Paradigm; „Journal of Knowledge Globalization” 2011, Vol. 4, No. 1, pp. 71-92.
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
that agriculture is losing its tasks like the task of feeding people, social tasks
to make rural areas populous and economically coherent, environmental or
cultural ones. However, if some of them are simultaneously implemented,
they are often mutually exclusive. For example, farms should become concentrated and specialised to improve their competitiveness and income,
which in turn may be contrary to the environmental objective of sustainable development. Undoubtedly, that sector has been transformed for years
and still should be to meet the challenge of competitiveness with the highly
developed agriculture in many European Union Member States.
The necessity to accelerate structural changes in agriculture is frequently
emphasised. However, that change is limited by a distorted allocative function
of the market. While the resource allocation mechanism based on market
conditions is the core of a market economy, it can sometimes be inefficient.
That allocation mechanism in agriculture can often be interrupted because
supply is poorly responsive to price changes and the inefficient selection
mechanism which is as an important part of the market mechanism is disabled. That fact is based on the prerequisite that labour and capital flow can
proceed smoothly either in time or in space in the economy. Actually, that
assumption is out of touch with Polish agriculture which typically shows low
mobility of those factors. Regarding that fact, the improved agricultural production in Poland is expensive if its agricultural structure is changed. This
follows from the fact that social costs include the case when a new technique
replaces numerous production factors irrevocably lost in the economic cycle as a result of that process3.
It should be emphasised that structural transformation in agriculture
is a comprehensive phenomenon that refers to both change in productivity
3
A. Kowalski, Miejsce polskiego rolnictwa na globalnym rynku żywnościowym [The position of Polish agriculture in the global food market] [in:] Ekonomiczne i społeczne uwarunkowania rozwoju polskiej gospodarki
żywnościowej po wstąpieniu Polski do Unii Europejskiej [Economic and social conditions for the development of the Polish food economy after Poland’s accession to the EU], collective work edited by A. Kowalski, IERiGŻ, Warszawa 2010, pp. 13-14.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ANNA NOWAK
and the rural labour market4. One of the structural problems is an incorrect
agricultural structure. Accordingly, there is a tendency to concentrate agricultural land. Admittedly, economic development can devaluate the importance of land in production in favour of capital outlays5, but the improved
farm structure favours efficient farm production and economy.
Polish agriculture is heavily influenced by the CAP instruments. The main
objective of the CAP is to re-transfer economic surplus from the taxpayer
and the consumer to the farmer. Czyżewski pointed out that surplus can be
returned to producers of raw materials under liberal and global market conditions in an automatic way and without intervention6. Structural change
in agriculture is supported by the structural policy which is a part of the CAP.
As specified in the structural policy, farms should be large enough to benefit
from the achievements of modern agricultural technology and be rationally
responsive to the incentives and instruments of the CAP7. In 2007-2013, all
actions to develop agriculture and rural areas were excluded from the cohesion policy to be under the CAP. Also, the instruments for structural transformation were more emphasised. The reform of September 2005 consolidated
the rules on funding under the market policy and rural development by introducing the European Agricultural Fund for Rural Development8. The instru-
4
5
6
7
8
G. Buchenrieder, J. Möllers (eds.), Structural Change in Europe’s Rural Regions – Farm Livelihoods Between
Subsistence Orientation, Modernization and Non-farm Diversification, Vol. 49 of the IAMO Studies Series, 2009, p. 4.
D. G. Johnson, The declining importance of natural resources: lessons from agricultural land. Resource and
Energy Economics, No. 24, 2002, pp. 157-171.
A. Czyżewski, P. Kułyk, Mechanizmy wsparcia rolnictwa w wybranych krajach wysokorozwiniętych i ich makroekonomiczne uwarunkowania [Mechanism to aid agriculture in the selected developed countries and
their mascroeconomic conditions] [in:] Regulacyjna rola państwa we współczesnej gospodarce [State’s
regulatory role in the modern economy], collective work edited by D. Kopycińska, Printgroup, Szczecin
2006, p. 58.
J. S. Zegar, Struktura obszarowa gospodarstw rolnych w Polsce. Stan i perspektywa zmian [Areal structure
of farms in Poland. Condition and perspective of transformations], IERiGŻ Warszawa 2009, p. 121.
Council Regulation (EC) No 1698/2005 of 20 September 2005 on support for rural development by the European Agricultural Fund for Rural Development (EAFRD).
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
ments of support focused on four topic9: strengthening the competitiveness
of agriculture and forestry, improving the environment and landscape, improving the quality of life in rural areas and diversifying the rural economy.
The cohesion policy is interrelated with the development of agriculture.
The structural characteristics of agriculture depends on the level of socioeconomic regional development so if that socio-economic regional development is supported enough, structural changes, including agricultural ones are
triggered. This can be even true about the unemployment structure. The volume of regional disparities in Poland makes the objective of the cohesion
policy in Poland in 2007-2013 involve “creating conditions for strengthening the competitiveness of the economy based on knowledge and entrepreneurship so that the rise in employment and the level of social, economic
and spatial coherence is ensured”10. The instrument to achieve the objective
of convergence in Poland in 2007-2013 was chiefly a special trans-regional programme to support the weakest voivodships of Eastern Poland. That
programme aimed at creating conditions for rapid socio-economic development and complementing interventions under the regional operational
programmes11.
Focusing on the structural part of the CAP seems to be justified because
the incorrect agricultural structure is reflected in low productivity and insufficient farm income and hinders any technological progress in farms. A farm
area does not entirely though can largely determine total farm production
potential, its economic strength and a type of farm production12. The transPolityka UE w zakresie rozwoju obszarów wiejskich na lata 2007-2013 [The EU rural development policy 20072013], Komisja Europejska, Luksemburg 2006, pp. 7-9.
10 Ekspercki projekt Koncepcji Przestrzennego Zagospodarowania Kraju do roku 2033, przygotowany przez Zespół
Ekspertów Naukowych do spraw Zagospodarowania Przestrzennego Kraju, powołany przez Ministerstwo Rozwoju Regionalnego [Expert draft of the National Spatial Development Concept until 2033, developed by
the Expert Research Team for the National Spatial Development], supervised by Professor Piotr Korcelli,
Warszawa, December 2008.
11 Efekty polityki spójności UE w Polsce, dokument problemowy [Results of the EU Cohesion Policy in Poland.
Problem document], Ministry of Regional Development, Warszawa, sierpień 2009, p. 25.
12 A. Mierosławska, Zmiany w strukturze agrarnej w 3 lata po akcesji Polski do UE w ujęciu regionalnym [Transformations in the agricultural structure after three years following Poland’s accession to the EU] [in:] Rocznika
9
EASTERN POL AND. DEVELOPMENT CHALLENGES
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270
ANNA NOWAK
formation in Polish agriculture has previously been impacted by the following CAP instruments13: land consolidation, support offered to farms in areas
having unfavourable farming conditions, structural pensions, support offered to semi-subsistence farms, and direct payments.
Moreover, determinants that influence agricultural transformation go
far beyond agriculture and significantly concern the macroeconomic situation, social issues and the state policy14. Also, that change proceeds differently in each region because of different economic realities there.
Gradual structural change contributes to more efficient agricultural productive forces. Agricultural productivity growth in the new EU Member
States after 2013 is expected to be largely associated with further technological restructuring that can trigger two economic effects, i.e. food supply
growth reflected in lower prices and higher welfare and the ability to achieve
higher production at a lower level of employment15.
2. The significance of agriculture for the economy of the voivodships
of Eastern Poland
The varied agricultural production potential is determined by many factors,
including country’s environmental conditions and economic development,
e.g. the role of agriculture in the economy and the historical conditions of ag-
Naukowych Stowarzyszenia Ekonomistów Rolnictwa i Agrobiznesu, vol. X, issue 3, Wieś Jutra Sp. z o.o.,
Warszawa-Poznań-Lublin 2008, pp. 393-394.
13 A. Sikorska, Instrumenty oddziaływania Państwa na kształtowanie struktury obszarowej gospodarstw rolnych
w Polsce; rola systemu ubezpieczenia społecznego rolników w kształtowaniu tej struktury. Stan obecny i rekomendacje na przyszłość oraz propozycje nowych rozwiązań dotyczących tego obszaru dla systemu ubezpieczeń
rolników [The instruments applied by the state to shape the areal structure of farms in Polsce; the role
of farmers social insurance system in shaping that structure. Contemporary state, recommendations for
the future and suggestions of new solutions to be applied in farmers insurance system], IERiGŻ Warszawa
2009, p. 41.
14 Ibidem, p. 22.
15 Y. Mundlak, D. Larson, A. Crego, Agriculture and Development, Bulletin World Bank Policy and Research, Vol.
8, No. 1, January-March 1997, pp. 1-4.
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
ricultural development there16. Regarding those factors, Polish regions are
quite divergent. The impact of a given region on the national economy can
also depend on how that region can use its production potential. If the production potential is known, regional development trends can be specified.
Consequently, an investigation of the production potential is an important
economic and agricultural research trend. The role of agriculture in the regional economy should be studied in terms of economy, society and environment because the tasks of agriculture go beyond food production.
The regional agricultural production potential is shaped, for instance, by
agricultural land resources. The share of agricultural land in an area of a given
region determines a territorial scope and role of agriculture in the economy.
The area of agricultural land and its share in a total region’s area is highest
in the lubelskie voivodship among the voivodships of Eastern Poland and
ranked second, following the łódzkie voivodship, among Polish voivodships.
That share in the remaining regions studied ranges from 53.5% to 64.4%.
The total area of agricultural land in those voivodships accounts for nearly
one third of their total area in Poland and slightly more than 3% of agricultural land in the European Union. This fact manifests the significant production potential in Eastern Poland.
Table 1. Agricultural land in Eastern Poland in 2010
Area
of agricultural land
Share of agricultural
land in an area
of a region
Share of regional
agricultural land
in Polish
agricultural land
thousands
of hectares
%
%
Poland
18869.9
60.3
100
Lubelskie
1773.2
70.6
9.4
Podkarpackie
954.2
53.5
5.0
Specification
16
L. Christiaensen, J. Swinnen, Economic, Institutional and Political Determinants of Agricultural Production
Structures in Western Europe, Department of Agricultural Economics, Catholic University of Leuven, 1994,
Working paper 11.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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ANNA NOWAK
Area
of agricultural land
Share of agricultural
land in an area
of a region
Share of regional
agricultural land
in Polish
agricultural land
thousands
of hectares
%
%
Podlaskie
1217.2
60.3
6.4
Świętokrzyskie
754.5
64.4
4.0
Warmińsko-Mazurskie
1322.6
54.7
7.1
Eastern Poland in total
6021.7
60.8
31.9
Specification
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – the Local Data Bank.
Agriculture as one of the sectors of the economy can impact on macroeconomic indicators, including gross domestic product or gross value added. The strength of this impact can depend on the economic development
of a country or region. Economic growth is usually accompanied by a reduced share of agriculture in national income. In 2000-2010, all the regions
of Eastern Poland except the podkarpackie voivodship showed positive
growth in agricultural gross value added. The largest increase was reported
in the podlaskie voivodship which specialises in animal production.
Table 2. Changes in the gross value added in the agriculture of Eastern Poland in 2000-2010
Specification
Gross value added (mln PLN)
2000
2010
Growth rate
Poland
32890
46050
140.0
Lubelskie
2196
3504
159.6
Podkarpackie
1140
1051
92.2
Podlaskie
1567
2943
187.8
Świętokrzyskie
1230
1600
130.1
Warmińsko-Mazurskie
1996
2809
140.7
Eastern Poland in total
8129
11907
146.5
Eastern Poland in total (Poland=100)
24.72
25.86
-
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – the Local Data Bank.
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
The declining share of agriculture in gross value added is supported by
factors such as demographic changes, changed consumption patterns and
higher social costs of food production17. In Poland in the years 2000-2011,
the share of agriculture, hunting, forestry and fishing in the national GDP
decreased from 4.4% to 3.6%18.
Table 3. Share of agriculture, hunting, forestry and fishing in the gross value added of the voivodships
of Eastern Poland in 2000-2010 (in %)
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Poland
2000
Specification
Share of agriculture, hunting, forestry and fishing
in the regional gross value added (%)
4.9
5.1
4.5
4.3
5.0
4.4
4.2
4.2
3.6
3.6
3.7
Lubelskie
8.2
9.2
7.5
8.0
8.3
7.3
6.9
7.8
6.6
6.5
7.4
Podkarpackie
4.4
3.8
3.2
2.8
3.2
3.2
3.0
3.4
2.9
2.5
2.3
Podlaskie
9.9
10.2
8.9
9.1
12.0
11.8
11.5
10.7
9.5
10.2
10.4
Świętokrzyskie
7.0
6.3
6.7
7.3
7.7
6.3
6.2
6.3
5.3
5.1
5.1
Warmińsko-Mazurskie 10.3
10.1
8.6
8.4
9.2
8.5
8.2
7.8
6.6
7.2
8.2
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – the Local Data Bank.
The share of agriculture in the gross value added in Poland changes by
voivodship and over time. At the national level, it decreased by 1.2 percentage points in 2000-2010 in Poland to reach 3.7% in 2010, whereas it was below 1% in Germany, the UK and Belgium and 1.7% in France and Norway.
The countries such as Romania, Bulgaria, Latvia only had that indicator
higher than in Poland19. Regarding the voivodships of Eastern Poland, agriculture is the most significant for the economy of the voivodship of podlaskie as its share in the total gross value added of that region has remained
almost the same to be highest across Poland. In the remaining voivodships,
A. Woś, F. Tomczak, Ekonomika rolnictwa zarys teorii [Economics of agriculture: outline of the theory] PWRiL,
Warszawa 1983, p. 32.
18 Based on the figures from the Central Statistical Office [GUS] – www.stat.gov.pl [date of access: 05.02.2013].
19 Based on the figures from EUROSTAT – http://epp.eurostat.ec.europa.eu [date of access: 05.02.2013].
17
EASTERN POL AND. DEVELOPMENT CHALLENGES
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that share decreased over that period. However, the voivodships of lubelskie
and warmińsko-mazurskie rank second among the 16 voivodships, which
means a lower level of development in those regions but on the other hand
the great importance of agriculture in their economies. Undoubtedly, that
fact provides the ground to find some agricultural strengths of those regions
to gain a competitive advantage both at the national and EU levels.
Investment is the economic outlay to create new or expand existing production potentials and non-productive assets. Importantly, agriculture unlike industry produces an insignificant amount of investment goods which
are as pedigree livestock and nursery stock only, but making investment involves outlays like farmer’s work, tractive force livestock and soil20.
Table 4. Investment outlay in the agriculture of Eastern Poland in 2000 and 2010
Investment outlay
Specification
2000
2010
mln PLN
Poland
Growth
rate
2000=100
Investment outlay
per 1 ha of agricultural land
2000
%
2010
Share of outlay in
agriculture in the
total outlay
2000
PLN
2010
%
2 078.7
4282.4
206.0
112.9
276.2
1.5
2.0
Lubelskie
91.7
326.4
355.9
53.5
230.4
2.2
3.9
Podkarpackie
41.9
181.4
432.9
44.5
261.7
1.1
1.8
Podlaskie
138.4
300.8
217.3
115.3
281.0
6.1
5.9
Świętokrzyskie
66.3
127.4
192.2
90.7
231.4
2.4
1.8
WarmińskoMazurskie
97.0
248.3
256.0
74.3
235.2
3.6
3.8
Source: Self-elaborated from the data of the Central Statistical Office [GUS]: Rocznik Statystyczny Rolnictwa oraz Środki trwałe w gospodarce narodowej z odpowiednich lat [Statistical yearbook for agriculture and Fixed assets in the national economy for the years specified]
The investment outlays in agriculture significantly increased in Poland
and in each voivodship over that period. The highest growth rates, i.e. more
than 4 and 3 times were reported respectively in the voivodships of podkar20
A. Woś, Agrobiznes. Makroekonomia [Agribusiness. Macro-economy], Wyd. KEY TEXT, Warszawa 1996, p. 168.
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
packie and lubelskie so those regions were ranked first and second in Poland. The lowest investment outlay was in the voivodship of świętokrzyskie
with its growth rate lower than that for Poland. However, regarding the value of investment outlay per 1 ha of agricultural land that indicator was
in the podlaskie voivodship only as high as the national average. The highest growth rate, however, was reported in those regions where its value was
lowest, i.e. the voivodships of podkarpackie and lubelskie. The investment
outlays in Poland, including those in agriculture largely increased because
of external competition and the need to adapt farms to EU standards, which
contributed to a much better status of Polish agriculture on the EU market
and higher productivity.
The contribution of each region to agricultural national production varies
by region. In 2010, the lubelskie voivodship had the largest share in the total
production in Poland, i.e. ranked 3rd, following mazowieckie and wielkopolskie and in goods production, i.e. ranked 4th in Poland. Also, that voivodship was a leader in sugar beet production, cereal crop harvest and berry
production which was more than one third of national berry production
in Poland and nearly half of the total berry production of Polish Eastern
voivodships. Also, Eastern Poland produced in 2011 more than one third
of the national fruit production and one fourth of the national vegetable
production. The voivodship of podlaskie, however, produced more than 18%
of milk (2nd position), and a little more than 37% of the national milk production was in Eastern Poland.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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Table 5. Share of the voivodships of Eastern Poland in the national agricultural production in 2011
market*
cereals
sugar beets
vegetables
fruit
pigs for slaughter
cattle for slaughter
cow’s milk
Share in production (in %)
gross*
276
Poland
100
100
100
100
100
100
100
100
100
Lubelskie
8.4
7.8
9.7
14.6
10.8
22.6
8.1
6.6
6.0
Podkarpackie
2.7
2.2
2.7
1.4
3.4
1.9
1.2
1.2
2.1
Podlaskie
6.3
6.0
4.7
0.3
1.4
0.7
4.8
9.5
18.2
Świętokrzyskie
3.4
3.1
2.6
2.5
7.8
9.9
2.1
5.0
3.2
Warmińsko-Mazurskie
5.6
5.7
6.0
1.2
1.5
0.7
4.9
3.1
7.8
Eastern Poland in total
26.4
24.8
25.7
20.0
24.9
35.8
21.1
25.4
37.3
Specification
* the figures refer to the year 2010
Source: Self-elaborated from the data of the Central Statistical Office [GUS]: Rocznik statystyczny województw 2012. GUS [Statistical Yearbook
of the Regions – Poland 2012], Warszawa 2012, pp. 520-528
The structure of the market agricultural production in Eastern Poland
indicates the spatial divergence of production there. Fruit and vegetable
production constitutes more than 30% of market production in the lubelskie and świętokrzyskie voivodships, whereas milk production is typical
of the podlaskie and warmińsko-mazurskie voivodships because the shares
in sold production are 49.9% and 28.8%, respectively.
Table 6. Structure of the agricultural market production in Eastern Poland in 2010
Share in
market production
Poland
Podkarpackie
Lubelskie
Podlaskie
Świętokrzyskie
WarmińskoMazurskie
Crop production
total
37.7
54.0
31.6
10.1
45.6
23.1
cereals
10.1
6.9
7.4
3.9
5.3
12.1
industrial
6.5
9.5
6.7
0.9
3.8
5.1
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
Share in
market production
Poland
Lubelskie
Podkarpackie
Podlaskie
Świętokrzyskie
WarmińskoMazurskie
vegetables
8.2
12.5
8.7
2.2
18.3
1.9
fruit
5.8
19.8
5.5
1.1
13.5
1.1
total
62.3
46.0
68.4
89.9
54.4
76.9
cattle for
slaughter
6.0
4.8
5.2
13.4
7.3
4.2
pigs for
slaughter
18.1
15.2
16.7
12.6
13.4
16.2
poultry for
slaughter
12.8
7.3
12.8
8.9
9.1
24.3
cow’s milk
17.0
12.6
21.3
49.9
18.7
28.8
Animal production
Source: Self-elaborated from the data of the Central Statistical Office [GUS]: Rocznik statystyczny województw 2011 [Statistical Yearbook
of the Regions – Poland 2011], GUS, Warszawa 2012, p. 540
The agriculture of Eastern Poland plays an important role in organic production which is steadily growing in Poland. In 2011, there were 46% of all
organic farms in the five regions. In the years 2000-2011, the number of such
farms increased by more than 24 times. The greatest growth rate is reported
in the voivodship of warmińsko-mazurskie to follow the voivodship of zachodnio-pomorskie in terms of the number of organic farms and the area
of organic farming (98.5 thousands of hectares). The opportunities to develop
Eastern Poland can be found, for example, in organic farming, the more that
there is a steady increase in the number of organic food processing plants
there, e.g. the voivodships of lubelskie and podkarpackie rank third and fifth,
respectively. Accordingly, Klaster Dolina Ekologicznej Żywności [Organic
Food Valley Cluster] was established to bring together various entities involved in promoting and developing organic food. The cluster is a platform
open to entities and organisations committed to developing organic food
production in Eastern Poland21.
21
Find our more at: www.dolinaeko.pl
EASTERN POL AND. DEVELOPMENT CHALLENGES
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Table 7. Number of organic farms in the voivodships of Eastern Poland in 2004-2010
Specification
Organic farms
Changes in
2000-2011
2000
2011
Poland
949
23449
22500
Lubelskie
193
2065
1872
Podkarpackie
20
2045
2025
Podlaskie
33
2440
2012
Świętokrzyskie
209
1296
1087
Warmińsko-Mazurskie
55
3033
2978
Eastern Poland in total
510
10879
10369
Eastern Poland in total (Poland=100)
0.54
0.46
-
Source: Self-elaborated from the data of IJHARS [Agricultural and Food Quality Inspection], Raport o stanie rolnictwa ekologicznego w Polsce
w latach 2009-2010 [Report on the condition of organic farming in Poland in 2009-2010], GIJHARS, Warszawa 2011 and Rolnictwo ekologiczne w Polsce w latach 1999-2000 [Organic farming in Poland in 1999-2000], Warszawa 2001
The development of organic agricultural production in Eastern Poland
is also supported by a relatively low level of applied inorganic fertilisers.
In the farming year 2010/2011, the level of inorganic fertilisation in none
of the five Eastern Polish voivodships was higher than the average values
for Poland and was lowest across Poland in the voivodships of podkarpackie and podlaskie.
Thus, the facts that Eastern Poland is a peripheral region and its agriculture differs from that of the other Polish regions and the intensive agriculture
in many EU Member States appear to be somewhat favourable for the production of high quality products and enable a competition on the national
and foreign markets. However, it is very unfavourable that farms there are
semi-subsistence due to their fragmentation.
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
Fig. 1. Consumption of inorganic fertilisation per 1 ha of the agricultural land in Eastern Poland
in terms of pure ingredient in the 2010/2011 farming year
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – Środki produkcji w rolnictwie w roku gospodarczym
2010/2011 [Means of production in agriculture in the 2010/2011 farming year], GUS, Warszawa 2011, p. 25
3. Structural reforms and changes
in the productivity of productive forces
The major problem faced by Polish eastern voivodships is their low development measured by GDP per capita. In 2010, the GDP per capita in Poland by purchasing power parity (PPP) constituted 60.6% of the EU average
(the EU-27)22 compared to 50.6% in 2004. That value reflects a decreasing
development gap between Poland and the EU. However, the disparities
across Polish regions are reduced only slightly. That indicator in the voivodships of Eastern Poland in 2010 ranged from 66% in podkarpackie to 77%
in świętokrzyskie of the value for Poland and that ratio remained unchanged
since 200423. The conclusion can be that those voivodships need to do more
22
Referring to the figures from the Central Statistical Office (GUS) – Polska w liczbach [Poland in figures],
GUS, Warszawa 2011, p. 39.
23 Referring to the figures from the Central Statistical Office (GUS) – Local Data Bank.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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than the other Polish regions to catch up with the EU. That fact also impedes
smooth agricultural development, especially structural reforms.
The EU structural policy aims at strengthening the competitiveness of agriculture by improving agricultural structures and providing less developed
regions with equal opportunities to develop because agricultural structural
problems are usually associated with an unfavourable economic situation
in a given region. The most important indicators to evaluate agriculture include: share of persons employed in agriculture, share of large farms in the total number of farms and an average farm area24.
The number of persons employed in agriculture in Poland over the years
shows a downward trend, which is also confirmed by the number of persons
employed per 100 ha of agricultural land. That indicator decreased in Poland in 2000-2010 from 23 to 15 persons, whereas it was 6 persons/100 ha
in the EU-27 in 2010. Regardless of that downward trend, the percentage
of persons employed in agriculture in Poland is also much higher than the average value for the EU-27, i.e. 5.1% in 201025. Employment in this sector remains even several times higher in some Polish regions than that in the EU.
Actually, the voivodship of warmińsko-mazurskie is the only region where
the share of persons employed in agriculture in the total working population is lower than the average value for Poland. The other regions of Eastern
Poland occupy the first four places in Poland with the voivodship of lubelskie ranked first. It is worth pointing out that those are actually the regions
which have recently reported the most significant drop in employment in that
sector. Simultaneously, such large labour resources in agriculture mean that
agriculture in those regions plays an important social role.
M. Wojtas: Wspólna polityka rolna a przemiany strukturalne w rolnictwie Unii Europejskiej [Common agricultural policy and structural transformations in the EU agriculture], „Annales UMCS” 2007, Vol. XLI (3), Sectio H, p. 55.
25 Based on the figures from EUROSTAT – http://epp.eurostat.ec.europa.eu [date of access: 05.02.2013].
24
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
Table 8. Persons employed in agriculture, hunting, forestry and fishing in Eastern Poland in 2000-2010
Specification
Share of persons employed in
agriculture, hunting, forestry and
fishing in the total number of
persons employed in a given region
(%)
Persons employed per 100 ha
of agricultural land
2000
2010
2000
2010
Lubelskie
51.7
38.8
29.5
19.3
Podkarpackie
46.9
33.2
47.0
34.3
Podlaskie
45.0
31.8
18.9
10.8
Świętokrzyskie
48.6
32.7
39.5
25.6
Warmińsko-Mazurskie
25.3
16.5
9.0
6.5
POLAND
28.0
17.3
23.1
15.0
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – Produkt Krajowy Brutto. Rachunki Regionalne z odpowiednich
lat [Gross Domestic Product. Regional accounts for the years specified]
A farming structure is one of the important features of agriculture.
If the production potential is too dispersed, agricultural output cannot
be improved sufficiently and biological and technological progress can be
blocked. In the years 2002-2010, the average farm size in Poland increased
by 1.2 ha to reach 9.6 ha in 2010. The largest farms are in the voivodships
of warmińsko-mazurskie and zachodnio-pomorskie, whereas the smallest
ones are in the voivodships of małopolskie and podkarpackie. The average
farm size in the voivodships of lubelskie and świętokrzyskie is below than
the national average. Regarding the other EU countries, one can notice that
the average farm size in Greece, Italy, Cyprus, Hungary, Romania, Malta and
Slovenia only is smaller than that in Poland.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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Table 9. Changes in the average farm area in Eastern Poland in 2002-2010
Average farm area in ha
Specification
2002
2010
Lubelskie
6.6
7.3
Podkarpackie
3.5
4.4
Podlaskie
11.1
12.4
Świętokrzyskie
4.7
5.2
Warmińsko-Mazurskie
17.1
23.6
POLAND
8.4
9.6
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – the results of the National Agricultural Census in 2002 and 2012
The study into the farming structure in Eastern Poland in 2002-2010 shows
that the agricultural land is steadily being concentrated (see Table10).
Table 10. Structure of farms larger than 1 ha in Eastern Poland by area group of agricultural land
and voivodship in 2002 and 2010 (%)
Świętokrzyskie
>50 ha
Podlaskie
20-50 ha
Podkarpackie
15-20 ha
Lubelskie
Years
10-15 ha
POLAND
Share in the total number of farms (%)
Number of
farms
in thousands
5-10 ha
Specification
1-5 ha
282
2010
1562.6
55.1
22.5
9.8
4.6
6.2
1.8
2002
1956.1
58.6
21.8
9.3
4.4
4.9
1.0
2010
189.9
54.1
27.9
9.5
3.8
4.2
0.5
2002
223.3
54.2
28.7
9.9
3.6
3.2
0.4
2010
145.2
82.0
13.3
2.2
0.7
1.3
0.5
2002
198.6
83.4
14.0
1.6
0.4
0.4
0.2
2010
86
30.1
25.6
18.4
10.5
13.9
1.5
2002
99.8
31.9
24.6
19.1
11.2
12.4
0.8
2010
103.1
66.5
23.9
5.7
1.8
1.8
0.3
2002
125.7
66.9
25.3
5.3
1.3
1.1
0.1
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
Years
5-10 ha
10-15 ha
15-20 ha
20-50 ha
>50 ha
Warmińskomazurskie
Share in the total number of farms (%)
Number of
farms
in thousands
1-5 ha
Specification
2010
44.4
30.7
17.1
15.3
11.1
19.5
6.0
2002
52.1
35.7
15.1
15.5
11.1
18.0
4.8
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – the results of the National Agricultural Census in 2002 and 2010
The share of the smallest farms of ​​up to 5 ha of agricultural land amounted
to a little more than 55% in Poland in 2010, while that share had been higher there by 3.5 percentage points in 2000. Those shares in the voivodships
of lubelskie, podlaskie, warmińsko-mazurskie were lower than the corresponding one for Poland. Podlaskie and warmińsko-mazurskie are exceptional because the share of the smallest farms there accounted for 30% only.
Actually, the share of such farms is decreasing in all the regions. The share
of the largest farms, i.e. l​​ arger than 50 hectares of agricultural land increased
in all the regions in Poland. However, that share in Eastern Poland, except warmińsko-mazurskie continues to be insignificant. The growth rate
in the number of the largest farms was reported just in the regions where
the share of such farms was low, i.e. lubelskie – 304%, podlaskie – 228%,
świętokrzyskie – 263%, podkarpackie – 172%.
One of the methods to strengthen the position of farmers and overcome the effects of the incorrect agricultural structure is team management
based on groups of agricultural producers. Unfortunately, as the figures provided by the Ministry of Agriculture and Rural Development show, farmers in Eastern Poland are insufficiently organised in cluster organisations.
In 2010 (as of 12 January), there were 81 producer groups in the five voivodships of Eastern Poland, which accounted only for 16% of all such groups
in Poland. Consequently, the idea of ​​establishing all forms of farmers cooperation needs further promotion.
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Besides the farming structure, another important factor that can impact
on the quality of management is the interrelation between production results and resources of factors of production.
Polish agriculture faces the problem of low labour productivity which
can directly determine the volume of per capita income. The low labour
productivity of Polish agriculture can threaten the competitiveness of Polish agriculture or can certainly result in a low cost of labour outlay. To stay
competitive, Polish agriculture needs to maintain a low cost of labour26 and
improve labour efficiency.
The low level of employment in national or regional agriculture is usually accompanied by a high level of economic development. Fereniec distinguishes three phases of employment in sectors of the national economy,
i.e. agriculture, industry and services. He claims that agricultural civilisation
with about 80% of employment in agriculture is the first phase of social development. Later, it transforms into industrial civilisation known as transient
civilisation with agricultural population reaching 10-20% of the workforce.
The last phase is service civilisation with employment in agriculture below
10%27. This means that the decrease in agricultural population conditions
agricultural progress over a certain period because it contributes to the improvement of the agrarian structure and economic and social consequences,
e.g. agricultural income relations and social productivity are improved and
social division of labour is enhanced28.
Different measures can be used to study labour productivity in agriculture.
One of them is the ratio between gross value added and persons employed
in agriculture. The productivity measured like that increased in Poland by
53.6% in 2002-2010. However, that ratio increased most in 2004. After 2004,
the productivity remained nearly unchanged despite some minor fluctuaStan polskiej gospodarki żywnościowej po przystąpieniu do UE [The condition of Polish food economy following Poland’s accession to the EU], Raport 6 (Synteza), ed. by R. Urban, IERiGŻ, Warszawa 2009, p. 38.
27 J. Fereniec, Ekonomika i organizacja rolnictwa [Economics and agricultural arrangement], Wyd. KeyText,
Warszawa 1999, p. 38.
28 A. Woś, F. Tomczak: op. cit., p. 87.
26
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
tions. That more significant increase in labour productivity in 2004 can result
from, for example, Poland’s accession to the EU and especially the pre-accession programme aid received by Polish agricultural producers. Actually,
the labour productivity in three eastern Polish voivodships, i.e. lubelskie,
podlaskie and warmińsko-mazurskie increased more than the national
value of that indicator. Also, the investment growth rate in those regions
increased more than that of Poland, which was discussed in detail in the previous section.
2002
2003
2004
2005
2006
2007
2008
2009
2010
2010
Growth rate (2002=100)
16 voivodships
rating
Table 11. Labour productivity in the agriculture, hunting, forestry and fishing of Poland in 2002-2010
by voivodship (in thousands PLN)
Lubelskie
7.8
8.6
9.8
8.9
8.9
11.1
10.4
10.5
13.4
13
171.8
Podkarpackie
4.4
4.0
5.0
5.2
5.3
6.4
6.0
5.5
5.2
16
118.2
Podlaskie
11.9
12.4
17.8
18.1
18.9
19.4
18.5
21.4
25.1
9
210.9
Świętokrzyskie
8.4
9.7
11.1
9.2
9.9
11.2
10.7
10.6
11.7
14
139.3
WarmińskoMazurskie
25.2
26.6
32.3
30.5
31.3
32.2
29.4
34.5
40.6
1*
161.1
POLAND
13.8
13.9
17.9
16.6
17.0
18.9
17.7
18.3
21.2
-
153.6
Gross value added per 1 person employed
(thousands PLN/person)
Specification
*the position shared with zachodniopomorskie
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – Local Data Bank
Labour resources should be converted into annual work units (AWU)
because they are not fully used in agriculture. A single annual work unit corresponds to a person who works 2.120 hours per year. In fact, such a method of conversion was applied for the first time in 2002, so our study covers
the years 2002-2010 only. The labour productivity per 1 AWU is slightly higher, and it is one of the highest in Poland in warmińsko-mazurskie, i.e. 3rd place.
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The labour productivity in the voivodships of lubelskie and podkarpackie
is lower than the average one in Poland though that of lubelskie is higher
than the national growth rate. It is worth pointing out that the labour productivity in Polish agriculture is much lower than in most EU countries.
It is nearly 4 and even 8 times lower than that of the EU-27 and countries
such as Germany, Denmark, France, Great Britain and France, respectively29. Regarding the fact that the labour productivity in some of the regions
under study is lower than the national average, the gap between the agriculture of Eastern Poland and the EU is even greater. This fact reflects the need
to continue supporting agriculture and increasing that support especially
in those regions, following the principle of cohesion.
Table 12. Labour productivity in agriculture, hunting, forestry and fishery in Poland
and the selected voivodships in 2002-2010
Gross added value per 1 AWU
(thousands PLN/AWU)
Specification
Growth rate
(2002=100)
2002
2005
2010
Lubelskie
8.0
8.9
13.6
170.0
Podkarpackie
4.5
4.9
5.4
120.0
Podlaskie
12.3
19.6
25.6
208.1
Świętokrzyskie
8.5
9.4
11.9
140.0
Warmińsko-Mazurskie
29.1
33.2
43.7
150.2
POLAND
14.6
16.9
21.9
150.0
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – Local Data Bank and the National Agricultural Census for
the years specified
The land productivity in agriculture, calculated as a value of gross production per 1 ha of agricultural land, also improved in 2002-2009 by 40% and even
more in three eastern Polish voivodships. The voivodship of świętokrzyskie
29
The figures from EUROSTAT indicate that labour productivity as measured by gross value added produced
by 1 person fully employed in agriculture in 2010 amounted to 12.9 mln Euro per person in the EU-27, 3.5 mln
Euro per person in Poland and ranged from 26 to 35.9 mln Euro per person in Germany, Denmark, France,
Great Britain.
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
is a standout because its land productivity in 2009 was higher than 5,000 PLN
per ha and ranked one of highest in Poland, i.e. 6th place.
Table 13. Land productivity in Eastern Poland in 2002-2009 (PLN/ha)
2002
2003
2004
2005
2006
2007
2008
2009
Growth rate
(2002=100)
Gross production per 1 ha of agricultural land (in PLN)
Lubelskie
3 169
3 383
3 332
3 638
3 351
3 522
4 719
4 280
135.1
Podkarpackie
2 786
2 833
2 894
3 108
2 680
3 193
3 520
3 394
121.8
Podlaskie
3 030
3 102
3 151
3 657
3 589
3 771
4 676
4 877
161.0
Świętokrzyskie
3 505
3 707
3 794
4 215
3 891
4 194
5 485
5 001
142.7
WarmińskoMazurskie
2 723
2 713
3 026
3 149
3 052
3 216
3 980
4 295
157.7
POLAND
3 540
3 420
3 674
4 046
3 803
4 107
4 886
4 967
140.3
Specification
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – Local Data Bank
The capital productivity in Poland increased only by 4% in 2002-2010;
a greater increase was reported in the voivodships of lubelskie and podlaskie. The ratio between global productivity and gross fixed capital deteriorated in podkarpackie to be below 60% of the national productivity. It should
be pointed out that the investment in agriculture in that region is lowest
in Poland regardless of its largest growth rate in 2000-2010. In 2010, that
indicator amounted to 190.3 PLN per 1 ha of agricultural land, while it was
nearly 240 PLN per ha and 322.4 PLN per ha as the average for Poland and
the wielkopolskie voivodship, respectively. Capital productivity also decreased because of the lowest gross production rate in Eastern Poland.
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Table 14. Capital productivity in agriculture in Eastern Poland in 2002 and 2010 (in PLN)
Specification
Gross production per 1 PLN
of gross fixed assets (in PLN)
Growth rate
(2002=100)
2002
2010
Lubelskie
0.54
0.65
120.4
Podkarpackie
0.51
0.40
78.4
Podlaskie
0.54
0.67
124.1
Świętokrzyskie
0.58
0.60
103.4
Warmińsko-Mazurskie
0.66
0.68
103.0
POLAND
0.65
0.68
104.6
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – Local Data Bank
The agricultural production potential depends not only on the resources
of factors of production but also their interrelation30. Following the principle of harmonisation, all productivity factors should remain in proportion.
If one of those factors is in excess while the others are in deficit, the production process can be disrupted and unfavourable production results can
occur31. There are depicted two indicators: the first one refers to the area of ​​
agricultural land per person fully employed in agriculture and the second
one stands for land technical infrastructure. The former indicator shows
how much land is per the workforce and determines the level of labour productivity. The latter one reflects the volume of technical infrastructure in an
area and determines, e.g. the intensity of agricultural production. The land
technical infrastructure in the Polish eastern voivodships is below the national average unlike the land workforce in the voivodships of warmińskomazurskie and podlaskie where productivity is simultaneously higher than
W. Poczta, A. Baer, Zróżnicowanie regionalne w krajach Europy Środkowo-Wschodniej kandydujących do
Unii Europejskiej [Regional disparities in the countries of Central and Eastern Europe that are candidates
to the EU] [in:] Zróżnicowanie regionalne gospodarki żywnościowej w Polsce w procesie integracji z Unią
Europejską [Regional disparities in Polish food economy during the process of integration with the EU],
eds. W. Poczta, F. Wysocki, Wyd. AR Poznań, 2002, pp. 85-106.
31 A. Kowalski: Czynniki produkcji w agrobiznesie. Encyklopedia agrobiznesu [Determinants of production
in agribusiness. Encyclopaedia of agribusiness], Fundacja Innowacja, Warszawa 1998.
30
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
the national one. In the EU-27, there were 16.6 ha of agricultural land per
1 person fully employed in agriculture in 201032. This means that the voivodship of warmińsko-mazurskie had got its workforce greater than the average
one in the EU agriculture.
Table 15. Correlation of production indicators in agriculture in Eastern Poland in 2010
Agricultural land per 1 person employed in agriculture
(ha/AWU)
Gross fixed assets per 1 ha
of agricultural land (PLN/ha)
Lubelskie
6.9
6147
Podkarpackie
4.9
5930
Podlaskie
10.6
6531
Świętokrzyskie
5.6
6420
Warmińsko-Mazurskie
20.7
5205
POLAND
9.0
6583
Specification
Source: Self-elaborated from the data of the Central Statistical Office [GUS] – Local Data Bank. Fixed assets in the national economy in 2010,
GUS, p. 110
Summary
1. Agricultural underdevelopment, including structural problems is associated with the level of development of a country or region. Hence,
the less developed regions like the voivodships of Eastern Poland need
to be supported by the coordinated activities of the structural policies pursued by the Common Agricultural Policy and the instruments
of the Cohesion Policy to speed up their socio-economic development
and develop their agriculture. However, regional development strategies that set the trends of transformations in individual voivodships
play a key role there.
2. The share of agriculture in the gross value added of the voivodships
of Eastern Poland is relatively high. However, that indicator does not
32
Based on the figures from EUROSTAT – http://epp.eurostat.ec.europa.eu [date of access: 05.02.2013]
EASTERN POL AND. DEVELOPMENT CHALLENGES
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have to be regarded as an indicator of underdevelopment and a hindrance to development there. If the strengths of agriculture are exploited and the correct transformation trends are followed, agricultural
regions can have opportunities to develop as a result of the considerable potential of the agricultural production in selected regions and
the development of appropriate production trends. For example, dairy
cattle should be raised in podlaskie or hops and soft fruit in lubelskie.
3. Despite its structural problems, the agriculture in Eastern Poland
is important for the economy of each voivodship and the national
economy. It produces more than 26% of global agricultural production, including more than one third of fruit and cow’s milk. What
is more, the competitive position of that region can be strengthened
by the development of organic farming. Reduced inorganic fertilisation and large resources of land and labour contribute to such a production trend. Therefore, we should support that action because it can
enable Eastern Poland to become competitive in that way in Poland
and the European Union.
4. Structural changes have been done in Polish agriculture since the structural transformation in Poland began. Actually, they became more intensive as a result of Poland’s accession to the European Union and
some instruments of the Common Agricultural Policy. Also, the transformation trends are shaped by globalisation. Actually, the pace of that
transformation is not sufficient enough although it is higher in some
regions of Eastern Poland than that at the national level. Therefore,
promoting the concept of group management should become a particularly important trend of ​​regional, national and EU policies, especially in regions such as Eastern Poland which shows the dispersed
agricultural production potential.
5. Structural transformations in agriculture are inhibited by some CAP
market instruments, especially direct payments to aid farmers’ income. As indicated in the OECD study, direct payments contribute
in almost 100% to higher prices of agricultural land and higher lease
EASTERN POL AND. DEVELOPMENT CHALLENGES
AGRICULTURE
rents33. As a consequence, the flow of agricultural land from farms
with low production potential is hindered. The underdeveloped agriculture and rural areas in Poland, especially in the south-east make
both the CAP Pillar I and II instruments important and rating them
is difficult. However, it should be reasonable to increase the impact
of structural instruments to improve quickly the agricultural structure
which is one of the major hindrances to improve the competitiveness
of the regions of Eastern Poland.
6. Regional divergence in agriculture can be considered as a development opportunity, especially in less developed regions because of lower production costs that result from high employment in agriculture
in those areas. Additionally, attention is drawn to achieve sustainable
development which means less intensive agricultural production and
reduced outlays on agriculture. At the same time, the changes in agricultural and cohesion policies should make them more regional.
33
Farm household income – issues and policy responses, OECD, Paris 2003, p. 70.
EASTERN POL AND. DEVELOPMENT CHALLENGES
291
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
BOŻENA OLESZKO-KURZYNA
Rural areas
Rural areas (regions) cover up to 93.2% of the European Union, which follows from the definition that a criterion for identifying rural areas is population density and rural population. Accordingly, rural areas are not only
agricultural areas, but also sparsely populated areas, forests, and other areas that are not transformed by human activity. Therefore, assistance can
be granted to different types of problem areas in the EU. Importantly, rural areas are less competitive than urban areas, regardless of their specificity in a given country, which causes problems like increasing depopulation
and marginalisation. These problems occur across the EU in varied intensity
and any further enlargement of the EU can significantly increase the diversity of rural areas there and deepen gaps in their development. In particular, the conditions of rural areas in the old and new EU Member States differ
much but the new EU Member States suffer from this unfavourable situa-
294
BOŻENA OLESZKO-KURZYNA
tion more because the agriculture sector plays a relatively significant role
in their economies. Moreover, the development gap in rural areas is accompanied by internal regional disparities. This problem is also experienced
in Poland as the country is informally divided into two parts, i.e. more developed western and underdeveloped eastern known as Poland A and Poland B, respectively. Despite certain differences in socio-economic structure
of the voivodships of Eastern Poland, their economies are dominated by
their low efficient agricultural sectors. Also, these regions have got the poorest technical and social infrastructures which determine their investment
attractiveness as one of the indicators of quality of life. Additionally, access
to the majority of public services is considerably different in the rural and
urban areas in these regions.
This paper discusses the rural areas of Eastern Poland in terms of their
key development problems and identifies their strengths and potential
strengths that could be used to improve the competitiveness of these areas. The first part of this chapter provides the definition and typical features
of rural areas in the European Union and in Poland and identifies the typical features of the rural areas in the macro-region of Eastern Poland. These
are mostly agricultural areas so the development potential of agro-food
industry and its environment are studied here. Issues like the infrastructure, innovation capacity and quality of labor resources are not studied here
as they are significant for the development of these regions. The examination addresses the rural areas distinguished in the territorial division by
Krajowy Rejestr Urzędowy Podziału Terytorialnego Kraju (TERYT) [National Register of Territorial Division of the Country]. This division regards
gmina wiejska [rural commune] and a rural part of gmina miejsko-wiejska
[urban-rural commune] are rural areas. This study focuses on the specific
features of the entire macro-region and to a lesser extent, of each voivodship of Eastern Poland. The research covers the time span of 2002-2010,
depending on source data available.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
1. Defining rural areas and the difficulties
in rural development in the EU and Poland
Rural areas are defined in the EU1 as areas (regions) whose rural population is more than 50% or have a population of less than 150 people per km2.
Accordingly, there is a high share of rural areas in many countries despite
a frequent low percentage of agricultural area there. For example, more than
90% of Sweden or Finland is regarded as rural areas despite the fact that agriculture in these countries is hardly significant for their economies (Fig. 1).
Fig. 1. Rural areas and population in the rural districts in the EU Member States (%)
Source: According to: B. Wieliczko, Polityka Unii Europejskiej wobec obszarów wiejskich [EU policy on rural areas], Studia i Monografie,
no 134, Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej, Warszawa 2006, p. 50.
To formulate a coherent policy of rural development, the EU areas need
to be classified by statistical units of NUTS 2 or NUTS 3, recommended by
the OECD, which distinguish2:
1
2
Council Decision of 20 February 2006 on Community strategic guidelines for rural development (programming period 2007 to 2013) (2006/144/EC).
Project CORINE Land Cover provides a detailed typology of rural areas. European Comission, From land cover to landscape diversity in the European Union, Brussels, May 2000. The European Commission is formulating alternative definitions which could reflect better a diversity of largely rural areas and areas near cities.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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296
BOŻENA OLESZKO-KURZYNA
ƒƒ regions with predominant rural areas where over 50% of population
live in administrative units of a population density of less than 150
people per km2;
ƒƒ largely rural regions where 15%-50% of population live in administrative units of a population density of less than 150 people per km2,
ƒƒ regions with predominant urban areas where rural population is less
than 15%.
Approximately 58% of the population of the Community3 live in predominantly rural and largely rural regions. These regions generate 45% of gross
value added in the EU-27 and 53% of employment. They remain, however,
much less developed than urban areas with respect to many indicators. For
example, the per capita income in rural areas (as measured by GDP at purchasing power parity) is about one third lower than in urban areas. Also,
women economic activity rates are lower, the service sector is less developed, education and access to broadband Internet are worse in rural areas4.
Rural areas distant from cities (predominantly rural regions) suffer most
because the process of urbanisation leads to an increasing problem of their
depopulation and marginalisation. Largely rural regions are in a much better situation as they are becoming more and urban areas in terms of their
development thanks to the process of reverse urbanisation5.
The diversity of rural areas across the EU Member States results from
numerous different factors such as discrepancies in their socio-economic
development or geographical and natural conditions, including climate, distance from large cities. However, the condition of rural areas is particularly
3
4
5
B. Wieliczko, Polityka Unii Europejskiej wobec obszarów wiejskich [EU policy on rural areas] Studia i Monografie, no 134, Instytut Ekonomiki Rolnictwa i Gospodarki Żywnościowej, Warszawa 2006, p. 42 overviews
definitions widely.
Communication from the Commission to the Council and the European Parliament „Employment in rural
areas: closing the jobs gap” {COM(2006) 857 final} (SEC(2006) 1772), p. 3.
Council Decision of 20 February 2006 on Community strategic guidelines for rural development..., op. cit.
Moving from urban areas to easily accessible rural areas.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
related to the condition of agriculture and its importance in the economy.
Given this criterion, the EU’s rural areas can fall into the following groups6:
ƒƒ rural areas of the EU-15 (old EU) with the share of agriculture in GDP
and employment as 2% and 4%, respectively;
ƒƒ rural areas of the new EU Member States (2004) with the share of agriculture in GDP and employment as 3% and 12%, respectively;
ƒƒ rural areas of Romania and Bulgaria (2007) with the share of agriculture in GDP and employment as 10% and more than 20%, respectively.
Obviously, a large share of agriculture in GDP and employment are typical
of less developed countries, which means that agriculture and the environment is still an integral and important element in country’s overall development, including rural development. Note that rural development is now
one of the top priorities of the EU Common Agricultural Policy, CAP, that
is increasingly shifting from strongly supported sectoral interventions towards market-oriented policies for sustainable rural development. The CAP
is evolving towards a rural development policy7 which recognises agriculture
as an important though not the only trend of business activity. The growing significance of a rural development policy is reflected in the gradually
transformed structure of the EU CAP expenditures. The CAP expenditures
for rural development were nearly 12% in 2000, whereas they were almost
twice as high in 20128.
The term of rural areas is not clear in Poland because it is not commonly
and universally defined. Rural areas are recognised by the official statistics
of the TERYT register as the entire territory of ​​Poland excluding urban com-
6
7
8
Commission of the European Communities: Commission Staff Working Document: Update to Impact Assessment Report {SEC(2004) 931}, p. 3.
The EU policy on rural areas is assumed to appear in the 1970s along with Pillar II of the CAP (structural
policy) and now is carried out within the European Agricultural Fund for Rural Development (it is under
discussion whether one can talk about the policy on rural areas or rather the agricultural policy which
is extended by the measures to support rural development).
According to general EU’s budgets, European Commissions decisions and statistical data.
EASTERN POL AND. DEVELOPMENT CHALLENGES
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298
BOŻENA OLESZKO-KURZYNA
munes and rural areas in urban and rural communes9. This approach results
from the Polish administrative division and three types of communes, i.e.
urban, rural, and urban-rural. However, “Strategy for sustainable rural development, agriculture and fisheries”10 and the previous document by the Ministry of Agriculture and Rural Development “Development trends for rural
areas”11 define rural areas as it is in the official statistics though expanded by
towns of up to 5,000 people. Also, the programmes co-financed by the EU
funds in 2007-2013 regarded the smallest towns of up to 5,000 people (this
limit is sometimes higher to be of 20,000 people) as rural areas. However,
Eurostat and the OECD use a population density criterion for identifying
intensively or poorly urbanised areas.
It should be emphasised that a definition of rural areas is important
in view of a rural development policy and the ability to support regions.
If the definition of rural areas by the EU were adopted in Poland, some underdeveloped though densely populated regions would be deprived of assistance. On the other hand, the today’s definition of rural areas results
in the administrative status of rural areas retained to suburban municipalities to which people move from a main city and rural areas where the socioeconomic situation does not differ significantly from the one in urban areas
(suburbanisation). Rural areas can be classified as12:
ƒƒ located near big cities and closely related with them,
ƒƒ located within the impact of large cities and agglomerations,
ƒƒ peripheral.
9
Council of Ministers Regulation of 15 December 1998 on detailed rules for handling, applying and sharing
the national official register of territorial division and the related responsibilities of government administration bodies and local government units. Dz. U. [Journal of Laws] No 157, item 1031 as amended.
10 Resolution of 25 April 2012, Dz. U. [Journal of Laws] No. 163, item 839.
11 Kierunki rozwoju obszarów wiejskich – założenia do „Strategii zrównoważonego rozwoju wsi i rolnictwa „[Development trends for rural areas – premises for “Strategy for sustainable agricultural and rural development]”, Warszawa, January 2012.
12 Potencjał obszarów wiejskich szansą rozwoju – warunki życia na wsi [Potential of rural areas as a development opportunity – living conditions in rural areas], Forum Debaty Publicznej, 2 March 2001, p. 7.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
These areas are differentiated territorially and functionally, and their condition depends on their distance from a regional centre and its influence.
Rural areas cover 93.2% of the total area of ​​Poland. The population there
is 38.8% of the total population (14.8 million people), i.e. by 1.5 percentage
points more than in 2001. The decreasing percentage of urban population
seemingly indicates that the process of urbanisation is stopping and the initial phase of reverse urbanisation has just started. Actually, urbanisation
is progressing, but much of migration to cities and suburban areas is not
registered. Moreover, the slowly changing administrative status of rural areas near cities can even further distort the picture13. In fact, many rural areas
and small towns are depopulated and population in central areas of major
cities decreases. Population in metropolitan areas, the cities of Eastern Poland and medium-sized cities of a regional function for surrounding rural
areas and smaller towns is growing14.
Rural areas in Poland are areas where agriculture is important (even
dominating in the past). The rural areas are used as agricultural land – 62%,
including 46% of arable land. The labour resource is highly involved in agriculture but labour productivity there is much lower than in other sectors
of the economy. Agriculture, despite the decline in employment from 22%
of the total workforce in Poland in 2002 to 15.8% in 2009 remains an important place of work and a livelihood15. Interestingly, the data collected during
the agricultural census indicates that the number of people living on farming is increasing, i.e. it amounted to more than 2.2 million people in 2010,
i.e. 13% more than in 2002. Also, the number of people for whom living on
13
If the number of people employed in non-agricultural jobs in urban areas around big cities is estimated,
the level of urbanization in Poland will amount to about 65-68%, which is more in line with the criteria
adopted in most EU Member States. Ekspercki Projekt Koncepcji Przestrzennego Zagospodarowania Kraju
– EPKPZK, 2008.
14 Rozwój miast w Polsce [Development in Polish cities], Raport wprowadzający MRR opracowany na potrzeby
przygotowania przeglądu OECD Krajowej Polityki Miejskiej [Introductory report by the Ministry of Regional
Development written to prepare the OECD review by the National Urban Policy], Ministry of Regional Development, Warszawa 2010.
15 Rocznik Statystyczny Województw 2003 i 2010 [Statistical yearbook for voivodships for 2003 and 2010], GUS,
Warszawa, p. CL-CLIII and p. 284.
EASTERN POL AND. DEVELOPMENT CHALLENGES
299
300
BOŻENA OLESZKO-KURZYNA
farming is a main but not the only occupation increased four times, i.e. from
68,000 to 271,000 people. This situation results from the EU subsidies, higher cost of living in cities and difficulty in finding work on the national and
(more and more often) foreign labour markets. The number of households
engaged in agricultural activity reduced from nearly 1.9 million in 2010, i.e.
by 13% less than in 2002 (the average farm size increased from 8.4 ha to 9.6
ha)16. This means that agriculture as a sector of employment is becoming increasingly important, especially thanks to developing labour-intensive types
of production such as organic farming or taking additional non-agricultural activity on the farm17. The number of organic farms increased from 949
in 2000 to 23,449 in 201018.
Economic stimulation of rural areas requires diversification of local economies to create new non-agricultural jobs in rural areas and find alternative
sources of income in jobs primarily related to the agricultural environment.
The number of REGON-registered economic entities determines non-farming employment opportunities. Actually, economic activity in rural areas
is much less than in urban areas. In 2003, a total of 3,581,600 business entities was registered in the REGON register in Poland, including 76.3% operating in urban areas and 23.7% in rural areas. During the accession to the EU,
the number of entities in this register increased and slightly more of these
were operating in rural areas. In 2008, the number of registered entities increased to 3,757,000, including 75.3% that operate in urban areas and 24.7%
in rural areas19. Every fourth registered business entity operates in rural areas. Importantly, the number of newly registered business entities is about
60,000 and is twice more than the number of cancelled from the register.
16
According to the data by GUS – results of the Agricultural Census in 2002 and 2012.
A. Woś, J.S. Zegar, Rolnictwo społecznie zrównoważone [Socially sustainable agriculture], IERiGŻ, Warszawa
2002, pp. 13-17 and pp. 37-44.
18 According to the data by GUS – results of the Agricultural Census in 2002 and 2012.
19 Konkurencyjność i znaczenie rolnictwa oraz sektora rolno-spożywczego w województwach Polski Wschodniej
[Competitiveness and importance of agriculture and agri-food sector in the voivodships of Eastern Poland],
Expertise commissioned by the Ministry of Regional Development to update „Strategy for socio-economic
development in Eastern Poland until 2020”, Warszawa, November 2011, p. 25.
17
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
High employment in agriculture has a direct impact on the labour market.
The employment rate in 2010 for the countryside was as high as the national
average in Poland, i.e. about 51%, and the unemployment rate there amounted
to 9%. Simultaneously, there are significant differences in professional activity
of farming and non-farming people, i.e. 66% and 49%, respectively. It should
be pointed out that more than 1.1 million employees commuted to the city,
which was more than 48% of all commuters in Poland20.
The creation of new jobs is chiefly related to the development of small
and medium-sized enterprises. The number of registered enterprises was
3,880,237 in 2009, which represents a 6.6% increase compared to 2003. With
respect to the size of the enterprises, micro-enterprises with up to 9 employees were dominating in 2009, i.e. 94.7% of all registered enterprises, followed
by small enterprises – 4.4%, medium-sized enterprises – 0.8%, and large ones
– 0.1%. Larger enterprises are more frequent in urban areas. In 2009, a total
of 935,300 business entities was registered in rural areas, which accounted
for 24.1% of all entities in Poland. The SME sector in rural areas is more dynamic than in urban areas. In 2003-2008, 39.5% of newly registered enterprises were reported in rural areas and 20.5% in urban areas only.
The rural areas in Poland differ much in terms of access to services and
technical infrastructure, institutional and social infrastructure as compared
with urban and rural areas as well as rural areas that are near cities but still
peripheral. An underdeveloped sewerage system and technical and sanitary
installations are serious problems. For example, approximately 60% of the rural population is estimated to have no access to sanitation facilities and 80%
to a gas pipeline. In 2009, 43% of households (8% in 2004) had Internet access. Moreover, implementing infrastructure projects is increasingly expensive, and thus delayed because of low population density in many regions
and protected areas which constitute almost 40% of the territory of Poland.
High quality public services are hardly available to people who live in rural areas. For example, serious problems can be significant discrepancies
20
Potencjał obszarów wiejskich szansą rozwoju ..., op. cit., p. 9.
EASTERN POL AND. DEVELOPMENT CHALLENGES
301
302
BOŻENA OLESZKO-KURZYNA
in quality of schools due to their location in urban and rural areas and level
of education. The promotion of pre-school education largely differs in urban and rural areas. Access to leisure activities is much worse in rural areas.
About 58% of children aged 3-5 years from cities and only 19% from rural
areas attended kindergartens. Another problem is that more elementary
schools are being closed due to a decreasing number of pupils21.
The condition of the rural areas in Poland varies a lot and is impacted by
many factors, including especially suburbanisation, changes related to the labour market and fluctuating spatial mobility of rural residents.
2. Rural areas of the macro-region of Eastern Poland –
their principal development potentials
The regions of Eastern Poland are one of the least socially and economically developed EU regions. The level of their development in 2010 as measured by GDP per capita at the purchasing power parity (PPP), amounted
to 60.6% of the EU average22 (50.6% in 2004). In 2009 in none of the voivodships of this macro-region GDP per capita was not higher than PLN 28,000,
whereas the average value for Poland was PLN 35,200. The per capita income
in the richest Polish voivodship, i.e. mazowieckie was more than 2.3 times
higher than in the poorest voivodships, i.e. lubelskie and podkarpackie23.
The share of Eastern Poland in the production of the GDP in Poland is relatively low, e.g. in 2009, it accounted for only 15.2% of the total GDP in Poland and was lower than in 2008 by 0.5 percentage points24.
Inhabited by more than 21% of the total population, the macro-region
of Eastern Poland occupies 31.7% of the territory of Poland. With the aver-
21
Oświata i wychowanie w roku szkolnym 2010/2011 [Education in the school year 2010/2011]. 2012, Informacje
i Opracowania Statystyczne, GUS, Warszawa, p. 58.
22 According to the data by GUS – Polska w liczbach, GUS, Warszawa 2011, p. 39.
23 The data do not refer to the migration between these voivodships.
24 Statistical yearbooks for voivodships for 2003 and 2010 and GPD – Regional Calculation for 2009.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
age population density for Poland of 122 people25, the value of this indicator
for Eastern Poland is low as 86 people only live per 1 km2 there. The natural
environment in this macro-region is hardly polluted, which results from its
underdeveloped industry. Actually, as much as 40% of the region is protected
by law, which, on the one hand, hampers infrastructure projects but favours
a tourism function of the region26.
The degree of urbanisation in this macro-region is low. Urbanisation, defined as a percentage of urban population, has recently reached about 52%
there, whereas the national average in Poland has been 60%. The voivodships
of lubelskie and podkarpackie have been most urbanised due to the number
of city inhabitants (Fig. 2).
Fig. 2. Urban indicators for the regions of Eastern Poland
Source: Statistical yearbook for voivodships for 2010, p. 259.
Eastern Poland has got the lowest percentage of towns and cities. Out
of 962 cities in Poland, 22.9% of them, i.e. 220 towns and cities are in the five
25
Roczniki Statystyczne Województw [Statistical yearbooks for voivodships], GUS, 2001-2010 and GPD – Regional Calculation for 2009.
26 Strategia rozwoju społeczno-gospodarczego Polski Wschodniej do roku 2020 [Strategy for socio-economic
development of Eastern Poland until 2020], document adopted by the Council of Ministers on 30 December 2008 (annex to Resolution 278-08).
EASTERN POL AND. DEVELOPMENT CHALLENGES
303
304
BOŻENA OLESZKO-KURZYNA
voivodships of Eastern Poland. The average area of towns and cities in Eastern
Poland is 472 km2, whereas the average for Poland is 346 km2. The towns and
cities of this macro-region are less populated than in the rest of Poland. There
are three cities only of a population more than 200,000 people, i.e. Lublin,
Białystok and Kielce and three cities of a population of 100,000 to 200,000.
Towns with up to 5,000 people are most frequent. 30.8% out of 54,033 villages
in Poland are just in Eastern Poland. In the years 2002-2009, there were less
villages and this reduction was slower in Eastern Poland than in the other
voivodships. The progress in infrastructure and transport chiefly reflects
the changes caused by the pace of absorbing the rural areas by cities27.
The rural areas of Eastern Poland occupy 95.7% of a total territory of this
macro-region, which is by 2.5 percentage points more than the national average in Poland. As compared to the other voivodships of Eastern Poland,
the voivodship of lubelskie has got most rural areas, i.e. more than one quarter
of the rural areas of Eastern Poland (25.5%), followed by warmińsko-mazurskie
(24.9%), podlaskie (20.3%), podkarpackie (17.3%) and świętokrzyskie (11.7%).
Fig. 3. Population and rural areas in Eastern Poland in 2009 in (%)
Source: Statistical yearbook for voivodships for 2010, pp. 91-95 and p. 284.
27
Konkurencyjność i znaczenie rolnictwa oraz sektora rolno-spożywczego..., op. cit.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
Eastern Poland has got significant quantity and quality potentials of agricultural land as nearly 31% of the national resources of agricultural land
is there. Agricultural land is about 60% of the macro-region, similarly
to the rest of Poland. The highest percentage of farming land is in lubelskie
and świętokrzyskie (Table 3). This macro-region has got favourable environment conditions to develop agriculture, and the rate of indexation of agricultural production in the three provinces, i.e. lubelskie, podkarpackie,
świętokrzyskie are 74.1%, 70.4%, 69.3%, respectively, which is higher than
for Poland, i.e. 66.6%. This rate is lower than the national average for Poland
in the podlaskie voivodship only, i.e. 55% and similar to the national average
in warmińsko-mazurskie, i.e. 66%28.
The share of rural population in Eastern Poland is much higher than
in the entire country, and the relation is 50.8% to 39%. The employment
in agriculture in the macro-region reaches 27.4% of a total employment
in Poland, with a total of 15.8% for Poland (5.1% for the EU). The high level of employment in agriculture which is much less productive than other
sectors of the economy results in lower values of indicators of labour productivity in the whole economy of this macro-region. As indicated, the agriculture of Eastern Poland is by about 29% less productive than the national
average in Poland. This indicator is, however, different in each voivodship,
e.g. the labour productivity in agriculture in warmińsko-mazurskie and
podlaskie in 2009 was much higher than the average for Poland and was
less than 60% of the average in the other voivodships of the macro-region29.
In Eastern Poland, the labour resources are less engaged in other sectors of the economy, e.g. in the industry, it amounts to 18.7% for the macroregion and 22.1% for entire Poland, in market services it amounts to 24.2%
and 28%, respectively. The labour productivity in non-agricultural sectors
of the economy is also lower, e.g. in the industry, excluding processing, it is by
Charakterystyka rolniczej przestrzeni produkcyjnej Polski [Characteristics on the Polish productive agricultural space], www.stat.gov.pl.
29 Draft of the updated version of Strategia rozwoju społeczno-gospodarczego Polski Wschodniej do roku 2020,
version of 5 April 2013, p. 15.
28
EASTERN POL AND. DEVELOPMENT CHALLENGES
305
306
BOŻENA OLESZKO-KURZYNA
12.5% lower than the average for Poland, and in market services – by 11.4%.
The lower productivity in various sectors of the economy also results from insufficient tangible assets in the macro-region, e.g. infrastructure, technology
and innovation potentials and the quality of labour. Importantly, an increase
by 25% of the average productivity of regional economies in 2002-2009 was
generated chiefly by individual growth rates in some sectors but hardly by
the cross-sectoral changes in employment, or shifting employees from agriculture to other sectors, except for the warmińsko-mazurskie voivodship30.
The data indicate that the situation of the labour market in Eastern Poland is not favourable. In 2009, the working population in Eastern Poland
was 22.4% of the national labour force resources and the number of economically inactive population was similar, i.e. 21.2% of the economically
inactive in Poland31. The years 2002-2009 witnessed the highest growth rate
of the economically active population in Eastern Poland, i.e. by 9.4% to 3.0%
of the national average but the condition of the labour market in Eastern Poland is worse than in the other regions of Poland. This means that
the share of the employed in the economically active population in Eastern
Poland is lower than the national average, i.e. 90.6% to 91.8% with a higher
share of the unemployed, i.e. 9.4% to 8.2%. In 2009, the unemployment rate
in Eastern Poland ranged from 12.8% in the podlaskie voivosdhip to 20.7%
in the warmińsko-mazurskie voivodship, and the national average for Poland was lower, i.e. 12.1%. The worse condition of the labour market in Eastern Poland is confirmed by the lowest rate of decline in the unemployment
rate. In 2002-2009, this indicator for Eastern Poland ranged from 5.5 percentage points for the podkarpackie voivodship to 7.5 percentage points for
the warmińsko-mazurskie voivodship and the average value of this indicator in Poland was 9.0 percentage points.
The development of labour market and the creation of non-agricultural
jobs is hampered by the low rate of entrepreneurial development in the mac30
31
Ibidem, p. 14.
Rocznik Statystyczny Województw 2010 [Statistical yearbook for voivodships for 2010], p. 282 and 292.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
ro-region. In 2010, it ranged from 726 business entities per 10,000 people
in the podkarpackie voivodship to 859 in business entities per 10,000 people
in the świętokrzyskie voivodship (the national average is 1,024 entities per
10,000 people). In 2010, 105 new enterprises per 10,000 people on average
were established in Poland, including 84.4 only in Eastern Poland32. Regional
capitals and counties attractive to tourists stands out in this respect in Poland.
Eastern Poland has got a specific sectoral structure of industry, namely
above all a more significant than on average in Poland role of the food industry33. Accordingly, the food industry accounts for nearly 18% of the industry, or by 2 percentage points more than the national average (which is 2-3
times more than two other branches, i.e. rubber and plastics industry and
mineral industry). An important role of the food industry in Eastern Poland
is confirmed by the share of the sold industrial output of the food industry
in the total sold industrial output in the macro-region. In 2010, this share
was more than 26%, which means its increase by more than 1 percentage
point over a decade. This relationship describes the condition of the food
industry in the region and was significantly higher than the national average
in the industry by nearly 9 percentage points. The food industry is principal in the podlaskie voivodship, i.e. 52.5% of sold industrial output in the region, followed by the voivodships of warmińsko-mazurskie and lubelskie,
i.e. 39.3% and 32.6%, respectively34. The growth rate of the sold industrial
output of the food industry over the last decade was much higher in these
three regions than the growth rate of total industrial output. Nevertheless,
the food industry, i.e. fruit and vegetables, meat and milling in the lubelskie
voivodship, dairy in the podlaskie voivodships and meat, poultry and fodder in the warmińsko-mazurskie voivodship is much better developed than
in the other two voivodships of Eastern Poland.
Rocznik Statystyczny Województw 2010 [Statistical yearbook for voivodships for 2010], p. 282 and 292.
Konkurencyjność i znaczenie rolnictwa oraz sektora rolno-spożywczego...,op. cit., p. 158.
34 Other leading industries in Eastern Poland are: rubber and plastics, wood, furniture, mineral, manufacturing machinery and equipment, metal products. These industries generate 63% of sold industrial output
and account for 60% of employment in the industry in the macro-region.
32
33
EASTERN POL AND. DEVELOPMENT CHALLENGES
307
308
BOŻENA OLESZKO-KURZYNA
The growth of tourism, including agro-tourism is often indicated as nonagricultural employment. Eastern Poland has got favourable conditions,
especially environmental and landscape, e.g. a high percentage of the area
of outstanding environmental features ideal to develop this type of leisure
and create non-agricultural jobs. In 2009, the national average percentage
of the area of outstanding natural beauty amounted to 32.3% of the total
area. This indicator was much higher in the voivodships of eastern voivodships, e.g. 64.6% in świętokrzyskie, 46.5% in warmińsko-mazurskie, 44.5%
in podkarpackie, 32.0% in podlaskie and 22.7% in lubelskie35. The development of tourism in Eastern Poland can be evaluated by an accommodation
utilisation indicator. Surprisingly, the percentage of accommodation utilisation was less than that of offered accommodation. Accordingly, tourists
insufficiently used the “accommodation resources”. In 2009, the percentage of average accommodation utilisation in Poland and in Eastern Poland
was 39.2% and 32.7%, respectively. Therefore, much more tourist services
are supplied that they are demanded. In 2000-2009, there was an increase
in the number of people who utilised accommodation in all regions, however, but the growth rate in the number of these people was lower in Eastern Poland than the national average, i.e. 16.4% and 32.9%, respectively)36.
Summary
The study on the condition of the rural areas of the macro-region of Eastern
Poland can identify at least three types of development potential in the agrofood industry and its environment.
First, agriculture continues to be the basic macro-economic sector for
its significant output potential. This fact does not necessarily mean that underdevelopment and development barriers in these regions are solidified.
If the current trend of the transformation is followed and the strengths are
35
36
Konkurencyjność i znaczenie rolnictwa oraz sektora rolno-spożywczego..., op. cit., p. 57.
Rocznik Statystyczny Województw 2010 [Statistical yearbook for voivodships for 2010], p. 57.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
taken advantage of, agriculture can become an opportunity for development
of agricultural areas of Eastern Poland. The competitive position of this
macro-region can also be strengthened by developing organic farming and
searching for alternative sources of income from jobs essentially related
to the agricultural environment, e.g. agro-tourism, craft, services. It should
be pointed that the diversification of the local economy, enabling the creation
of new non-agricultural jobs is indispensable to economically revive the rural
areas of Eastern Poland. Referring to the experience of developed countries,
extensive agriculture results from the dynamic development of the non-agricultural sector, mainly sectors that work for agriculture37. Rural areas are
becoming increasingly multi-functional, and agriculture has got many, not
only manufacturing, tasks to do: socio-cultural, environmental. The structural transformation in agriculture and economic revival of the rural areas
in Poland is supported by the 2014-2020 rural development policy as part
of the EU CAP. This new financial perspective assumes for remaining the twopillar CAP, beneficial for Poland, i.e. a market policy as I Pillar, a structural
policy as II Pillar38. The novelty in a rural policy is the possibility of shifting
funds between the pillars, up to 10% from I Pillar to II Pillar and 5% from
the Rural Development Programme to direct payments. Also, thematic subprogrammes can be formulated. It has been suggested that within the new
financial perspective the rural policy should be excluded from II Pillar and
shifted to the EU cohesion policy39. However, this change is hardly possible, given the nature of these policies and other mechanisms behind them.
M. Adamowicz, Przesłanki rozwoju wielofunkcyjności rolnictwa i zmian we wspólnej polityce rolnej [Conditions for the development of multi-functionality of agriculture and changes in the Common Agricultural
Policy], „Zagadnienia Ekonomiki Rolnej” 2005, no 1 and K. Duczkowska-Małysz, Od zmodernizowanego rolnictwa do wielofunkcyjnej wsi [From the modernised agriculture to the multifunctional countryside], „Wieś
i Rolnictwo” 1991, no. 3.
38 Nearly 14% of a total of resources for II Pillar was allocated in Poland, which made this country the main
beneficiary of II Pillar of the CAP in 2007-2013.
39 Ł. Hardt, Wspólna polityka rolna a polityka spójności w kontekście przeglądu budżetu UE [Common Agricultural Policy and Cohesion Policy in the context of the EU budget’s revision], „Wieś i Rolnictwo” 2008, no 4.
37
EASTERN POL AND. DEVELOPMENT CHALLENGES
309
310
BOŻENA OLESZKO-KURZYNA
Second, the present economic specialisation of Eastern Poland, i.e. food
industry has got a much stronger position there than in the rest of Poland
on average, which is development potential there. The share of employment
in the food industry in the total industrial employment in this macro-region
is nearly 18%, or by more than 2 percentage points than the national average. This sector has got a 26% share in the total sold industrial output, i.e.
the growth by more than 1 percentage point over a decade, which supports
its significance. Many years of agricultural tradition in this macro-region,
its rather evenly distributed agricultural productive potential and clean environment can benefit any further development of the food processing industry there. Related with agriculture, the food industry contributes to this
specialisation and improves the quality of agricultural output. Accordingly,
food processing is fundamental to the economic development of Eastern
Poland, especially the voivodships of lubelskie, podlaskie and warmińskomazurskie.
Third, the development of tourism, including agro-tourism can provide
non-agricultural employment. Eastern Poland’s environment and landscape is favourable to develop and create non-agricultural jobs. However,
the main difficulty in developing both tourism and SME sector is its underdeveloped infrastructure, particularly technological and transport. However, the tourism function of rural areas there seems to be able to grow. About
25% of the urban population in the developed countries of the EU take a rest
in the countryside. The literature stresses the increasing importance for
the development of countryside leisure combined with bank holiday tourism
and building the so-called second houses40. To develop this form of making
a living, the implementation of rural health programmes to make tourism
and investment in rural areas more attractive can be extremely beneficial.
To sum up, Eastern Poland is a highly internally diversified macro-region. The values of certain basic socio-economic indicators differ between
its voivodships and are accompanied by the discrepancies between the rural
40
Konkurencyjność i znaczenie rolnictwa oraz sektora rolno-spożywczego..., op. cit., p. 57.
EASTERN POL AND. DEVELOPMENT CHALLENGES
RURAL AREAS
areas there due to their distance from the urban centers, especially the regional capitals. Accordingly, there is the question about defining rural areas in the 2014-2020 programming and legislative documents of the EU
and the Polish Government. Increasingly, there are demands, first of all
not to regard areas closely related with large cities as rural areas although
they are rural or urban-rural communes by administration, and secondly
to diversify rural areas according to their distance to large cities and a type
of their management. It would be reasonable also so that the New Financial
Perspective could more differentiate cohesion policy instruments targeted
to different types of rural areas.
EASTERN POL AND. DEVELOPMENT CHALLENGES
311
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
M A Ł G O R Z ATA D O L ATA
Environmental infrastructure
The development of any region is chiefly to provide inhabitants there with
the highest possible standard of life as a result of establishing new business
entities, jobs, new goods and services there to satisfy their needs and to develop and maintain a high-quality natural and cultural environment.
Economic infrastructure as one of the main and critical factors for regional development is the basis of all economic activity and determines living standards of rural population. Regions with high-quality infrastructure
gain a competitive advantage over other areas. Accordingly, prospective investors find such areas attractive enough to establish and grow business activity there, and potential inhabitants as attractive places to live (Dolata and
Łuczka-Bakuła 2005).
Environmental infrastructure known as infrastructure for environmental protection protects and monitors the environment and prevents negative
314
MAŁGORZATA DOLATA
consequences of human activities to occur and spread. It consists of systems
and devices chiefly to supply water, discharge and treat wastewaters, conserve
air and safely store waste. Environmental infrastructure is a relatively new
infrastructure system that is usually recognised as economic infrastructure.
Note, however, that with the growing popularity of the concept of sustainable
development that recognises an environmental policy as at least equivalent or
even superior to economic and social policies, environmental infrastructure
starts being regarded as a separate branch of infrastructure, besides social
and economic infrastructures (Dobrzański 2001, Ratajczak 1999).
This chapter discusses the level of environmental infrastructure and disparities in its development in the rural regions of Polish eastern voivodships:
lubelskie, podlaskie, warmińsko-mazurskie, świętokrzyskie and podkarpackie in 2000-2011 as well as examines the changes in environmental infrastructure in these areas over that period1. The following three key components
of environmental infrastructure related to rural development and improvement of rural inhabitants’ quality of life are examined here2:
ƒƒ water supply systems,
ƒƒ sewerage systems,
ƒƒ wastewater treatment plants.
1. Infrastructure as a development determinant
Global infrastructure was first investigated in the literature in the 1930s after
economists started to be strongly interested in economic growth and development. Numerous theories, models and concepts of growth and development
of entire economies and regions highlighted the importance of infrastruc-
1
2
The changes in the number of people serviced by water-line systems, sewage systems and wastewater
treatment plants were examined for 2002 – 20011 due to the statistical data provided by the Central Statistical Office.
The issue is discussed here based on the electronic data published by the Central Statistical Office known
as the Local Data Bank in 2013.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ENVIRONMENTAL INFRASTRUCTURE
ture3, which resulted from the fact that the level of infrastructural development largely determines population’s quality of life and productivity, and
thus is one of the most critical elements that can impact quality of life and
labour conditions.
Historically, traditional rural economies typically had weak economic
systems, which made these areas less competitive than urban centers. Significant gaps in infrastructural facilities, including environmental infrastructure
determined unfavourable conditions for economic activity in rural areas at
a traditional stage of economic development. Accordingly, one of the main
objectives at a stage of contemporary rural development is to create attractive conditions to live and work in rural areas by, e.g. improving infrastructural facilities there.
The concept of sustainable development was accompanied in the literature
by the concept of ​​rural development relying on the idea of equal rural-urban
partnership but not of being subordinated to development processes in urban centers. This concept has also become the ground for the part of “Study
Programme on European Spatial Planning”. Published by the European Union, this document was developed when the EU’s concept of spatial development was determined. Its section on a partnership for developing rural and
urban areas stresses infrastructure as a factor supporting integration of rural and urban areas. It is one of main factors that contribute to both spatial
concentration and dispersion4.
If sustainable development in rural areas is investigated, one should be
remember that Polish rural areas were developing in a somewhat different
way than rural areas in the other post-industrial developed countries. Therefore, Polish rural areas need to solve different environmental problems, and
3
4
R. J. Barro, X. Sala-i-Martin, Economic Growth, Cambridge, Mass.; The MIT Press, 2003; D. Biehl, The Contribution of Infrastructure to Regional Development, European Communities, Luxemburg 1986; K. Button, Infrastructure, Investment, Endogenous Growth and Economic Convergence, „The Annals of Regional Science”,
13/1998; R. Rodriguez, The Role of Infrastructure Investment in Economic Growth, Economics and Inequality, The Century Foundation, 5/2010.
Study Programme on European Spatial Planning (SPESP), Conclusions and Recommendations, Nordregio
Report 2000.
EASTERN POL AND. DEVELOPMENT CHALLENGES
315
316
MAŁGORZATA DOLATA
one of their priority objectives is primarily creating environmental infrastructural facilities, especially water supply systems, drainage and wastewater treatment systems, and safe waste disposals.
Dynamic infrastructural development is one of the key factors which
shape regional competitiveness. Supporting infrastructural development
has become an important element in regional authorities’ efforts to improve
their regional competitiveness5. Areas with extensive spatial and point infrastructural systems are regarded as attractive enough for business activity. Therefore, they can gain a competitive advantage over areas deprived
of such qualities6.
It should be pointed out that consistent views on the critical role of infrastructure in regional development are accompanied by a growing awareness
that not all types of infrastructural development can at once help improve
a region and that sometimes changes in infrastructure may also trigger certain undesirable results such as significant local external disadvantages7.
Some papers criticise the theories of regional development that overstress
the role of infrastructure which can be hardly regarded as the only or even
main cause of constraints to development8.
Despite the development of environmental infrastructure in Polish rural
areas has recently progressed much and the attitudes of local authorities and
villagers there have changed positively, these areas continue to have few basic
infrastructural facilities and show significant disparities in the level of de5
6
7
8
E. Łaźniewska, P. Nowak, Konkurencyjność gospodarek w ujęciu regionalnym [Regional economic compe­­titiveness], [in:] Kompendium wiedzy o konkurencyjności [Compendium on competitiveness],
(eds.) M. Gorynia, E. Łaźniewska, Wyd. Naukowe PWN, Warszawa 2009, pp. 201-202.
D. Stawasz, Infrastruktura jako czynnik warunkujący rozwój regionu [Infrastructure as a regional development determinant], [w:] Ekonomiczno-organizacyjne uwarunkowania rozwoju regionu – teoria i praktyka
[Economic and management conditions for regional development. Theoretical and practical approach],
(ed.) D. Stawasz, Wyd. Uniwersytetu Łódzkiego, Łódź 2004, p. 237.
M. Ratajczak, Znaczenie infrastruktury w procesach globalizacji i integracji regionalnej [Role of infrastructure in globalisation and regional integration], [in:] Problemy wdrażania strategii rozwoju województwa
wielkopolskiego [Difficulties in implementing the development strategy for the wielkopolskie voivodship],
(ed.) E. Skawińska, Wyd. Polskiego Towarzystwa Ekonomicznego, Branch in Poznań, Poznań 2002, pp. 35-36.
Ch. Hurst, Infrastructure and Growth; A literature review, EIB Papers 1994, no. 23, pp. 59-60.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ENVIRONMENTAL INFRASTRUCTURE
velopment compared to the other Polish regions as well as between urban
and rural areas, chiefly in terms of development and modernisation of entire infrastructure, especially its environmental facilities9.
The dissemination of environmental infrastructural systems proceeds
much worse in rural than in urban areas, which is not only due to high costs
to install them but also the belief shared by Polish villagers that the environment is polluted and destroyed by industry and urban areas, whereas rural
areas and agriculture protect it. Nevertheless, this view is not entirely correct because agriculture and rural population also contribute much to environmental pollution10.
2. Infrastructure in the rural areas of Polish eastern voivodships
The development changes that are reported in Polish rural areas, pollution
of surface waters and increasingly frequent droughts have caused a water
supply system to become the fastest growing element of environmental infrastructure over the last two decades of the 20th century.
Water supply systems particularly intensively developed in 19902000 when their length increased by about three times, i.e. from 56,000.6 km
to 161,000.8 km, and the number of house water connections was by 2.5 times
higher, i.e. from 887,000.5 to 2,390,000.3. Polish rural areas continued to be
provided with water supply systems in the said period, i.e. 2000-2011 although
the growth rate was much slower than in the previous decade. The length
of water distribution systems increased by 54,000.5, i.e. by 33.7%, while
the number of house water connections by 813,480 or by 35.4%.
The rural areas of Eastern Poland in 2000-2011, just like the whole of Poland were steadily equipped with water supply systems. Over this period,
9
10
M. Dolata, J. Lira, Rozwój infrastruktury gospodarczej na obszarach wiejskich [Developing rural economic
infrastructure], Wiadomości Statystyczne, no. 4, 2009.
A. Hałasiewicz, Program aktywizacji obszarów wiejskich a ochrona środowiska [Rural activisation programme
and environmental protection], [in:] Rozwój infrastruktury obszarów wiejskich w aspekcie ochrony środowiska
[Developing rural infrastructure in view of environmental protection], Barzkowice 2000, p. 16.
EASTERN POL AND. DEVELOPMENT CHALLENGES
317
318
MAŁGORZATA DOLATA
the length of water distribution networks in these rural areas increased by
more than 17,000 km, or 38%. Water supply systems were installed fastest
in the voivodship of warmińsko-mazurskie as their length in the rural areas there increased by 4,751.6 km, i.e. 63.2% then, which accounted for 30%
of the entire new distribution system installed then. The slowest growth rate
of 1,290.8 km, i.e. 13.8%, which was 7.6% of an installed new network was reported in the voivodship of podkarpackie.
The growth of water supply distribution systems was reflected in the higher number of their users. The number of house water supply connections
in the rural areas of Eastern Poland in 2000 and at the end of the said period
was 634,000.2 and 858,000.4, respectively, which means an increase by more
than 35.3%. This progress was especially fast in the rural areas of the voivodships of świętokrzyskie as the number of connections increased there by
45.6%. The least significant increase was reported in the voivodship of podkarpackie, i.e. 42,938 connections, which is by 25.8% (Table 1).
The increase in the length of water distribution networks and the number of house water connections in the rural areas of Eastern Poland in 20002011 was also accompanied by the steady increase in a network density
measured by network length given as km/100 km2 of a given area. The value of this indicator should, however, be indicative because that each administrative unit, i.e. a voivodship, district or municipality has got its own
specific afforestation rate, population density, size and structure of rural
areas. Actually, while 47 km of a water supply network were reported per
100 km2 of the rural area of Eastern Poland at the beginning of this period, there was an increase by 18 km at the end of this period (average values for Poland were 55.5 km/100 km2 and 74.3 km/100 km2 in 2000 and
2011, respectively). In 2011, the highest density of water supply systems,
i.e. 98.9 km/100 km2 was in świętokrzyskie where this indicator increased
most in the said period, i.e. by 28.6 km. The lowest density was reported
for warmińsko-mazurskie, i.e. 52 km/100 km2 with an increase by 20.2 km
(growth indicator for Polish rural areas was 18.8 km) (Fig. 1).
EASTERN POL AND. DEVELOPMENT CHALLENGES
858,389
263,774
209,141
112,930
172,050
100,494
838,385
258,274
205,454
109,721
168,178
96,758
822,432
254,543
203,326
107,099
163,673
93,791
807,591
249,755
201,192
106,125
159,999
90,520
791,755
242,839
201,138
104,340
155,645
87,793
775,025
237,779
198,057
102,474
151,891
84,824
766,317
233,320
195,204
99,773
147,695
90,325
742,678
229,026
191,682
96,366
141,964
83,640
713,216
219,144
186,011
92,250
136,110
79,701
66,533
212,303
181,148
88,962
128,072
76,048
660,230
204,832
172,847
86,256
122,780
73,515
196,585
166,203
82,719
118,186
70,525
17,212.4
10,632.4
10,766.0
10,924.8
12,265.4
16,777.8
10,465.9
10,530.3
10,566.9
11,798.2
16,290.6
10,542.8
10,201.1
10,302.3
11,377.8
16,065.2
10,393.2
10,163.5
10,076.1
11,178.1
15,764.2
10,551.9
9,964.6
9,911.0
10,905.6
15,476.7
10,460.3
9,808.0
9,774.2
10313.7
15,063.31
10,404.3
9,466.3
9,452.7
10,125.6
14,795.1
10,147.8
9,102.5
9,240.6
9,211.5
14,042.6
9,975.0
8,602.4
9,043.6
8,698.6
13,609.9
9,962.9
8,185.7
8,590.5
8,104.8
13,122.4
9,564.6
7,824.8
8,118.0
7,509.3
12,618.5
9,341.6
7,504.2
7,781.4
7,513.8
634,218
61,801.0
60,139.1
2011
58,714.6
2010
57,876.1
2009
57,097.3
2008
55,832.9
2007
54,512.2
Years
2005
2006
52,497.5
2004
50,362.2
2003
48,,453.8
2002
46,139.1
2001
44,759.5
2000
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical Office]. Warszawa 2013. .
Total of water connections,
including their number
in the following voivodships:
lubelskie
podkarpackie
podlaskie
świętokrzyskie
warmińsko-mazurskie
Total network length
(km), including the values
for the following voivodships:
lubelskie
podkarpackie
podlaskie
świętokrzyskie
warmińsko-mazurskie
Specification
Table 1. Water supply systems and water connections in 2000-2011
ENVIRONMENTAL INFRASTRUCTURE
EASTERN POL AND. DEVELOPMENT CHALLENGES
319
320
MAŁGORZATA DOLATA
Fig. 1. Water supply system length per 100 km2 of rural areas
(as of 31 December 2000 and 31 December 2011)
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical
Office]. Warszawa 2013.
An access to water supply system services in Eastern Poland improved
along with an increased density of water supply systems there. In 2002, 64.9%
of the total rural population in this area depended on water supplied by water supply systems, whereas in 2011 it was higher by 6.3 percentage points.
In the corresponding periods, 69.7% and 75.7% of the population respectively
used water supply system services in rural areas across Poland.
Among the five voivodships studied, the rural areas in the voivodships
of warmińsko-mazurskie, podlaskie and świętokrzyskie were supplied with
water in the most efficient way. Actually, in 2011 the shares of population using water supply system services were 76.9%, 75.7% and 75.5%, respectively.
The lowest share of population serviced by a water supply system in relation to total rural population, i.e. 64.8% was recorded in the podkarpacie
voivodship. Interestingly, the greatest progress in improving rural popula-
EASTERN POL AND. DEVELOPMENT CHALLENGES
ENVIRONMENTAL INFRASTRUCTURE
tion’s access to water supply systems in this period of eight years was reported in the voivodship of świętokrzyskie as the share of users of water supply
system services in those rural areas increased by 7.8 percentage points.
Fig. 2. Water supply system users related to the total rural population (in %)
(as of 31 December 2002 and 31 December 2011)
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical
Office]. Warszawa 2013.
Last 10 years of the 20th century witnessed the significant progress in developing sewage systems in rural areas. Their gradual growth was typical
then. Unlike it was with water supply systems, a „boom” in growing sewerage systems occurred only after 1995 and continued for the next 15 years.
In 1990, the length of active sewage systems in the Polish rural areas
amounted to 3,100 km with 39,100 houses connected. Over the next ten years,
this sewage system was five times longer and the number of sewer connections was nearly eight times more. This tendency continued over the next
decade when a considerably recovered investment in sewerage systems resulted in increasing their length and the number of house sewer connections
by 3.5 times, i.e. by 47,400 km and 756,200 sewer connections, respectively.
EASTERN POL AND. DEVELOPMENT CHALLENGES
321
322
MAŁGORZATA DOLATA
Favourably, the emergence of tangible effects of sewage systems in rural areas resulted in a higher number of rural residents who could benefit from
such services. Actually, the percentage of population serviced by sewage
systems was 14.2% in 2002, and it was higher by 13.6 percentage points at
the end of 2011 (Fig. 4).
The rural areas of Eastern Poland in 2000-2011 just like the rural areas
across Poland witnessed a rapid development of sewage systems. Accordingly, the length of sewage systems, number of sewer connections and population serviced increased. In total, rural separate sewage systems in the said
voivodships in 2000 were 5,270.7 km long and 76,510 houses were connected to them. Eleven years later, the networks were longer four times just like
the number of house sewer connections (Table 2) .
Among the five Eastern Polish voivodships, the fastest growth of rural separate sewage systems in 2000-2010 measured by changes in system
length and number of house sewer connections was reported in the voivodhip of podkarpackie. A network of 7 969.3 km and 114,186 house sewer
connections were completed in this area, which meant a four-time increase.
However, the sewage system in podlaskie increased least because a network
of 906.3 km and 14,295 house sewer connections only were installed there
(Table 2).
Some favourable changes due to installing sewage systems in rural Eastern
Poland in 2000-2010 were also reflected in a sewerage density ratio which
is calculated as system net length per 100 km2. In 2000, system net length
ranged from 2.1 km per 100 km2 in podlaskie to 15.4 km per 100 km2 in podkarpackie. In 2011, these values were much higher and ranged between 6.8 km
per 100 km2 to 63.5 km per 100 km2 there. It is worth examining the significant increase in the sewage system density in the voivodship of podkarpackie, i.e. by about 48 km per 100 km2 as compared with a corresponding value
for rural areas, i.e. 16.3 km per 100 km2 (Fig. 3).
EASTERN POL AND. DEVELOPMENT CHALLENGES
289732
44972
151258
21951
39618
31933
253426
39691
133756
20459
31084
28436
231250
35307
121654
19784
27942
26563
220699
33586
114382
20318
27063
25350
204,762
31,285
105,530
18,991
25,596
23,360
192,330
28,728
99,518
17,996
23,939
22,149
180,635
25,247
94,144
16,556
22,905
21,783
158,315
23,294
83,862
14,900
17,041
19,218
134,471
20,142
70,189
12,867
14,193
17,080
108,181
17,015
56,190
10,858
10,959
13,159
89,484
14,811
44,758
9,025
9,671
11,219
12,614
37,072
7,656
9,243
9,925
2593.5
10574.4
1317.8
2784.9
3186.7
2222.3
9387.8
1105.8
1964.3
2709.5
1940.4
8255.1
1035.1
1666.7
2515.4
1871.1
7760.6
988.7
1602.5
2482.7
1,764.0
7,279.0
956.4
1,572.1
2,334.2
1,639.5
6,905.0
929.4
1,439.5
2,172.8
1,430.3
6,587.5
832.0
1,447.7
2,041.1
1,305.7
5,954.5
758.2
1,124.9
1,806.6
1,134.4
5,126.1
696.0
971.5
1,975.2
995.3
4,131.4
547.6
687.9
1,250.8
883.3
3,184.1
472.0
593.0
993.6
759.3
2,605.1
411.5
569.0
925.8
76,510
20457.3
2011
17389.7
2010
15412.7
2009
14705.6
2008
13,905.7
2007
13,086.2
2006
12,338.6
2005
10,949.9
2004
9,903.2
2003
7,613.0
2002
6,126.0
2001
5,270.7
2000
Years
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical Office]. Warszawa 2013.
Total of sewer connections,
including their numbers in
the following voivodships:
lubelskie
podkarpackie
podlaskie
świętokrzyskie
warmińsko-mazurskie
Total network length (km) including the values for the following voivodships:
lubelskie
podkarpackie
podlaskie
świętokrzyskie
warmińsko-mazurskie
Specification
Table 2 Separate sewage systems and sewer connections in 2000-2011
ENVIRONMENTAL INFRASTRUCTURE
EASTERN POL AND. DEVELOPMENT CHALLENGES
323
324
MAŁGORZATA DOLATA
Fig. 3. Sewerage length per 100 km2 of rural areas (as of 31 December 2000 and 31 December 2011)
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical
Office]. Warszawa 2013.
The higher sewerage density in the rural areas of Eastern Poland was accompanied the increased population serviced, i.e. from 13% of the total rural
population in 2002 to 27% in 2011 as compared to corresponding values for
the rural areas across Poland, i.e. 14.2% and 27.8%, respectively. The largest
share of population serviced by a sewage system in the last year of the investigation related to the total number of population was reported in podkarpackie, i.e. 43.1% and was higher by 15.3 percentage points than in the rural
areas across Poland and higher by 27.2 percentage points than in the lubelskie
voivodship with the lowest share recorded among the voivodships examined.
Note that the highest increase in the percentage of rural population serviced
by sewerage over these ten years was reported in podkarpackie, i.e. 23.8 percentage points, whereas the lowest increase was in podlaskie and lubelskie,
i.e. 6.3 and 8.3 percentage points, respectively (Fig. 4).
EASTERN POL AND. DEVELOPMENT CHALLENGES
ENVIRONMENTAL INFRASTRUCTURE
Fig. 4. Population serviced by sewerage in the total rural population (in %)
(as of 31 December 2002 and 31 December 2011)
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical
Office]. Warszawa 2013.
However, despite a considerable progress in the development of sewerage in rural areas both across Poland and Eastern Poland, the level of its
development is still insufficient regarding needs. These shortcomings are
particularly clear if a development of sewerage is compared with a much
better developed water supply system there. While a ratio of water supply
systems and sewerage in the rural areas across Poland much improved over
this period, the levels of development of these two systems varied a lot.
The sewerage in the rural areas across Poland in 2000 was 10 times shorter
than the water supply system there, but this ratio significantly improved
in 2011 though still the sewerage was nearly four times shorter than the water supply system. Also, a sewer connection to water supply connection ratio in these years improved much because in 2000, it was 1 to 9, whereas
in 2011 it reduced to be 1 to 3.
EASTERN POL AND. DEVELOPMENT CHALLENGES
325
326
MAŁGORZATA DOLATA
An unfavourable ratio of sewerage to water supply systems also improved
in the rural areas of Eastern Poland. In 2000, the water supply system was
about eight times longer than the sewerage; and the sewer connection to water supply connection ratio was 1 to 8. In 2011, the sewage system was three
times shorter than the water supply one and less than three water supply
connections are for one sewer connection.
To thoroughly examine this issue, a ratio of population serviced by sewerage and population serviced by water supply systems was calculated for
rural areas in each eastern voivodship. This ratio enables measuring needs
related to sewerage development. If this ratio is lower in a given voivodship,
these needs are greater there. In 2000, the least significant discrepancies between these two types of systems in rural areas were reported in the following voivodships: podkarpackie – 32.1% and warmińsko-mazurskie – 26.5%,
whereas the most significant ones were in świętokrzyskie – 11.2% and lubelskie
– 12%. However, this ratio improved in all voivodships in the last year of the examination, i.e. 2011 although it remained most favourable in the voivodships
of podkarpackie – 66.6% and warmińsko-mazurskie – 37.4% and least favorable in lubelskie – 22.5%, podlaskie – 23.2%, and świętokrzyskie – 29.2%.
Fig. 5. Sewage system users and water supply system users
(as of 31 December 2000 and 31 December 2011)
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical
Office]. Warszawa 2013.
EASTERN POL AND. DEVELOPMENT CHALLENGES
ENVIRONMENTAL INFRASTRUCTURE
A steady expansion of water supply and sewage systems in rural areas is accompanied by an increasingly common problem of decontaminating a rapidly increasing amount of wastewater. The reasons behind
wastewater decontamination are chiefly rational water management and
correct protection of waters to avoid pollution11 (Kupiec,Truskolaski and
Gołębiowska 2005).
The attempts taken during the last few years to steadily increase the number of wastewater treatment plants in the Polish rural areas improved
the wastewater treatment facilities there. The number of rural wastewater
treatment plants increased by nearly 58% in 2000-2011, from 1,459 to 2,34512.
Accordingly, the number of rural users also increased from 14% of the total rural population in 2002 to 30.6% in 2011. Yet, despite the intensively increased number of wastewater treatment plants, the number of wastewater
treatment plants operating in the rural areas and the percentage of population not serviced indicate that these needs are not satisfied enough, which
results in frequently discharged wastewaters into the nearest watercourses
or directly onto the ground.
The rural areas of Eastern Poland witnessed a significant progress in developing wastewater treatment systems in 2000-2010. Accordingly, the total number of wastewater treatment plants nearly doubled from 382 to 761.
Biological wastewater treatment plants were dominating and accounted for
82% of all wastewater treatment plants both in the first and last year of this
examination. However, wastewater treatment plants with increased bio gene
removal were developing fastest because they almost tripled during these
12 years to amount to 125 at the end of 2011 (Table 3).
11
12
L. Kupiec, T. Truskolaski, A. Gołębiowska, 2005: Gospodarka przestrzenna. Infrastruktura ekonomiczna [Spatial economy. Economic infrastructure], Wydawnictwo Uniwersytetu in Białystok, Białystok.
The number of mechanical and chemical wastewater treatment plants is not given here because the Central
Statistical Office provides their number for a period of 2000-2002 only, i.e. respectively 14, 11 and 13 wastewater treatment plants of that type were in operation then.
EASTERN POL AND. DEVELOPMENT CHALLENGES
327
EASTERN POL AND. DEVELOPMENT CHALLENGES
183
156
74
64
143
198
160
76
68
148
205
162
77
72
184
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical Office]. Warszawa 2013.
180
147
68
62
131
210
165
79
72
184
219
175
77
77
184
222
177
75
82
179
228
184
74
83
192
142
85
43
32
80
Watestewater treatment plants
in voivodships:
lubelskie
podkarpackie
podlaskie
świętokrzyskie
warmińsko-mazurskie
172
143
65
55
124
14
622
125
12
603
120
14
601
117
14
583
113
18
571
111
17
531
102
22
499
99
26
468
94
29
443
87
24
406
70
27
369
60
26
311
45
168
122
61
46
103
761
735
732
710
700
650
620
588
559
500
456
382
Wastewater treatment plants in total,
including:
mechanical
biological
with increased bio gene removal
158
108
53
45
92
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
Years
2000
Specification
Table 3. Municipal wastewater treatment plants in the voivodships studied in 2000-2011
328
MAŁGORZATA DOLATA
ENVIRONMENTAL INFRASTRUCTURE
The higher number of wastewater treatment plants in the rural areas
of Eastern Poland was accompanied by a steadily increasing number of their
users there. In 2011, the largest share of population serviced by wastewater
treatment plants in relation to the total population was reported in the rural
areas of podkarpackie – 46.9% and warmińsko-mazurskie – 35.5%. In fact,
these areas witnessed some major positive changes about it for the past nine
years as the percentage of rural population serviced by wastewater treatment
plants increased by 27.6 and 17 percentage points, respectively. The rural areas
of the other three voivodships, i.e. podlaskie, lubelskie and świętokrzyskie
had a relatively low share of population serviced by wastewater treatment
plants, i.e. 18.3%, 18.9% and 21.7%. These shares increased in the said period
there by 7.1, 8, and 13.3 percentage points, respectively (Fig. 6).
Fig. 6. Users of wastewater treatment plants related to the total rural population (in %)
(as of 31 December 2002 and 31 December 2011)
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical
Office]. Warszawa 2013.
Wastewater treatment plants and sewage systems are essential elements
of economic infrastructure so they should definitely function as a whole,
which is not, however, frequent. It happens that an area with a well-developed
EASTERN POL AND. DEVELOPMENT CHALLENGES
329
330
MAŁGORZATA DOLATA
sewage system has got no wastewater treatment plant or in spite of a wastewater treatment plant, there is no sewerage or only part of that area is serviced
by a sewage system. The latter case has been recently reported in the Polish
rural areas. This is a less harmful case as there are more rural users of wastewater treatment plants than those of sewage systems. In 2011, the percentage of rural population serviced by sewage systems reached 27.8% and was
lower by 2.8 percentage points related to the percentage of users of wastewater treatment plants. This phenomenon was reported over the entire period under study, except the year of 2002 when these quantities were similar
in value, i.e. 14% of the rural population were serviced by wastewater treatment plants and 14.2% were serviced by sewerage.
Fig. 7. Population serviced by water supply systems and sewage systems related
to the total rural population (in %) (as of 31 December 2011)
Source: compiled by the author based on Bank Danych Lokalnych [Local Data Bank]. Główny Urząd Statystyczny [Central Statistical
Office]. Warszawa 2013.
In 2011, the share of the rural population in the four voivodships of Polish
Eastern serviced by wastewater treatment plants was higher than that by sew-
EASTERN POL AND. DEVELOPMENT CHALLENGES
ENVIRONMENTAL INFRASTRUCTURE
erage. It should be pointed out that this difference varied considerably across
the voivodships. The greatest discrepancy between the number of inhabitants serviced by wastewater treatment plants and those by sewage systems
was reported in the voivodships of warmińsko-mazurskie – 6.8 percentage
points, lubelskie – 3 percentage points, and podkarpackie – 3.8 percentage
points. The smallest discrepancy was in podlaskie – 0.7 percentage points.
The voivodship of świętokrzyskie was an exception because the share of its
rural population serviced by sewage systems was higher by 0.3 percentage
points than the one serviced by wastewater treatment plants.
Summary
The changes of the recent decades in the Polish economy have resulted in that
Polish rural areas do not perform agricultural functions only and that the idea
of necessary activation of these areas, i.e. their multi-purpose development
is indisputable. Environmental infrastructure is particularly important in restructuring and rural development. The importance of infrastructure and
services provided to rural areas is largely due to the fact that an appropriate level of development is one of prerequisites for economic development.
The level of infrastructural facilities is also an essential criterion for taking
up and running business activity, determines its scope, structure and spatial
distribution and is a factor that determines the quality of life in a given area.
Conclusions from the research results on changes, levels and discrepancies of the development of rural environmental infrastructure in Eastern
Poland, i.e. lubelskie, podlaskie, warmińsko-mazurskie, świętokrzyskie and
podkarpackie can be as follows:
1. basic facilities of rural environmental infrastructure such as water supply systems, sewerage and wastewater treatment plants were quickly
installed there in 2000-2011;
2. the least developed facilities of environmental infrastructure, i.e. sewerage and wastewater treatment plants in the rural areas of Eastern Poland were steadily developing then; the length of sewage systems and
EASTERN POL AND. DEVELOPMENT CHALLENGES
331
332
MAŁGORZATA DOLATA
number of wastewater treatment plants were increasing every year and
thus these services became more available to more population there;
3. sewage systems were especially fast developing there, so their growth
rate was much higher than that of water supply systems in terms of
system length and number of connections;
4. in the last year under study, all the Eastern Polish voivodships witnessed a positive phenomenon that more users were serviced by wastewater treatment plants than by sewage systems.
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
Conclusions
This study into the regional economic development of Eastern Poland has
allowed for a set of conclusions and recommendations both for local government units and the central government. They can make a contribution
which facilitates the implementation economic policies in the following years.
As already indicated in this monograph, Eastern Poland is one of the least
developed EU regions, which is mostly caused by the priorities of the economic policy pursued in the recent decades. For example, the government
policy at the times of the People’s Republic of Poland assumed less than
0.1% of industrial investment for the eastern and northern Polish voivodships. Obviously, such an approach was an absolutely decisive factor behind
the development opportunities of Polish eastern voivodships. Similarly,
when communism collapsed in Poland, the regions favoured in the past
once again received the most greatest assistance. Secondly, the peripheral
334
CONCLUSIONS
location of Eastern Poland weakens its development. Eastern Poland is far
away from the sources of capital and technology and neighbours the underdeveloped countries with their lagging structural transformation. Thus,
the regions of Eastern Poland are ranked the last in the Polish economic development rankings. Eastern Poland’s economic structure is outdated and
its technical ​​infrastructure is insufficient.
The change of such a socio-economic development of Eastern Poland
was not attempted until Poland’s accession to the European Union in 2004.
The regions of Eastern Poland are estimated to receive the largest financial
allocation per 1 inhabitant in 2004-2015. Accordingly, as indicated by macroeconomic models (Hermin, Mamor3, EuImpact), the growth and structural
transformation of that macro-region could be accelerated. In 2008, as many
as three of the eastern regions, i.e. Podkarpackie, Lubelskie, Świętokrzyskie
were among the leaders in economic growth (approx. 7%) and in GDP per
capita. All of the voivodships of Eastern Poland also reported their rapid
growth in their services sector and Podlaskie – in its industry. The trends
in EU funds investment indicate the considerable shares of R&D projects and
innovation, information society or human capital which facilitate the availability, competitiveness and innovation of business entities in all of the regions.
However, the experience from both the previous and present programming
periods suggests that the EU funds available under each programme are
largely obtained by the richest voivodships, which results in growing disparities in development.
Eastern Poland has got a relatively high share of agriculture in gross value
added. In fact, its agriculture despite its structural difficulties remains a very
important part of both the economies of those voivodships and the national
economy. It produces more than 26% of overall agricultural output, including more than one third of fruit and cow’s milk output. The agricultural production will remain a primary sector in the economy of that macro-region
because its potential in considerable. This does not necessarily mean that
the underdevelopment and barriers to development are strengthened there.
If the current trend in transformation and use of strengths is followed, agri-
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONCLUSIONS
culture can create a window of opportunity to develop the agricultural regions
of Eastern Poland. Moreover, the structural transformation in the agriculture of Eastern Poland have been reported since the structural transformation in Poland began, but they have been more intensive since Poland joined
the European Union and certain instruments of the Common Agricultural
Policy started to operate. That transformation is not fast enough although
it is faster in some eastern voivodships than in Poland. The adverse impact
of the Common Agricultural Policy (CAP) on the structural transformation in agriculture cannot be neglected in our conclusions. Actually, some
of the CAP market instruments, especially direct payments to support farmers’ income hamper the structural change. The OECD study indicates that
direct payments contribute in almost 100% to higher prices of agricultural
land and higher lease rents. Accordingly, the flow of the land for farms with
low production potential is not smooth enough.
The transformation is also proceeding in rural areas which are no longer agricultural only, and the promoted need to revitalise them to achieve
multi-purpose development is widely accepted. Restructuring and rural
development largely depend on environmental infrastructure and its basic
components, including water supply networks, sewerage networks and wastewater treatment plants that have recently been built so quickly. The development of a sewerage network was speeded up much, and, regarding the length
of the distribution network and the number of connections to houses, it was
much faster than that of a water supply network. The improved infrastructure
in rural areas and the know-how developed by the Polish Local Action Groups
can considerably enhance economic development, e.g. food industry one
which is found the significant development potential of that macro-region.
This study shows that there are differences in population rather than
economic development measured by GDP per capita between the voivodships of Eastern Poland. Hence, the demographic gap between them and
other European regions is much larger that the economic one. Importantly,
the demographic differences in those regions are closely related to the level
of urbanisation there. The voivodships of Eastern Poland are much behind
EASTERN POL AND. DEVELOPMENT CHALLENGES
335
336
CONCLUSIONS
the developed EU regions and are closer to the less developed regions of Central and Eastern Europe. Demographic forecasts indicate that the voivodships of Eastern Poland are depopulating. The most serious demographic
problems in that macro-region include low birth rates, the negative balance
of migration and progressive aging of its population.
The voivodships of Eastern Poland except Podlaskie in 2012 showed higher than average unemployment rates. Long-term unemployment was more
significant there than in Poland. The phenomenon of hidden unemployment
in rural areas known as agrarian unemployment is another problem. This type
of unemployment can be reduced if tourism, including agritourism can be
developed. The environment and landscape in Eastern Poland are excellent
for agritourism and creating non-agricultural jobs. One of the most serious
economic problems faced by Eastern Poland is internal and cross-border migration. Actually, a negative balance of internal migration is reported in all
of those voivodships with the largest one in the Lubelskie voivodship. The labour markets of Eastern Poland suffer from youth unemployment which is,
fortunately, above the national average. Favourable academic trends among
the young can remedy this situation. Undoubtedly, satisfactory gross enrollment indicators need to be accompanied by high quality education, and most
importantly, to stop the trends in migration of best-educated young people.
The education system in Eastern Poland must be correlated with the preferences of industry, also in terms of attracting foreign investment. A system
that allows for shaping the trends in staff training at the local level should be
based on well-coordinated activities undertaken by numerous institutions
and business entities, ranging from those of secondary and higher education
to employment agencies and business entities. Close cooperation in determining future requirements for worker’s skills and developing internship systems could improve the efficiency of the education system to satisfy investors’
requirements. This is particularly important for the voivodships of Eastern
Poland because unlike the more developed regions they cannot expect workers with certain qualifications would like to migrate to that macro-region.
EASTERN POL AND. DEVELOPMENT CHALLENGES
CONCLUSIONS
An important factor behind the economic development of Polish regions in the next years will be to use the potential of cities that should be
more than ever before supported by the government. Accordingly, the most
promising cities and the areas of their functioning, i.e. their key functions
should be supported. Additional development resources should be above all
allocated to the two centres of Eastern Poland that have the greatest potentials, i.e. Lublin and Białystok. Of course, such an approach does not mean
that the economic and academic potential of the other cities of Eastern Poland like Kielce or Olsztyn should not be strengthened. The policy toward
Rzeszów should be re-evaluated. Thus, the question remains whether additional funds should be allocated to boost the weak potential of Rzeszów
or to support the other economic engines of the Podkarpackie voivodship,
especially Mielec and Stalowa Wola. In Eastern Poland, there are emerging clusters of modern industries (aviation, milk processing, furniture, cement, automotive tires) and cluster initiatives, e.g. Dairy Cluster, Podlaski
Food Cluster “Naturalnie z Podlasia”, Podlaski Lingerie Cluster, Lublin Eco
Energy Cluster, Eastern Cluster ICT – Lublin IT Upland, Aviation Cluster
“Dolina Lotnicza”, Cluster of Biomass Producers “Biomasa Świętokrzyska”,
Mebel Elbląg Furniture Cluster Association, Warmia and Mazury Cluster
“Razem Cieplej” .
The possible trends in the development of transport infrastructure need
a special focus. To achieve real integration within the Single European Market
(SEM), the activities to develop north-south transport connection should be
intensified. It is about transforming the current national road S19 into a transEuropean express road known as Via Carpatia that runs from the Baltic
countries like Estonia, Lithuania and Latvia though Eastern Poland to South
– Eastern Europe, i.e. Slovakia, Czech Republic, Romania, Hungary and Bulgaria as well as the Balkans and Turkey. Accordingly, the geographical location of Eastern Poland in the SEM can be truly used. Developing the border
infrastructure can be enhance the significance of the nearby eastern market.
The investment in Eastern Poland can also improve if the foreign investment
flow increases in Ukraine and Belarus.
EASTERN POL AND. DEVELOPMENT CHALLENGES
337
338
CONCLUSIONS
It should also be borne in mind that the possibilities for improving the investment attractiveness of Eastern Poland can largely result from the factors
independent of regional activities. For example, the best possible use of the favourable location of Eastern Poland on the eastern EU border depends mostly
on the contractual relations between the EU and its neighbours. The possible association agreement with Ukraine and better economic relations with
Belarus could allow for more interest in doing business in Eastern Poland.
EASTERN POL AND. DEVELOPMENT CHALLENGES
EASTERN POLAND. DEVELOPMENT CHALLENGES
Edited by Bartosz Jóźwik & Mariusz Sagan, Lublin 2013
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EASTERN POL AND. DEVELOPMENT CHALLENGES
Eastern
Poland
Development challenges
Lublin is my hometown and I have been following the situation
of Eastern Poland since the beginning of our political transformation. I remember how much foreign investors were reluctant when I persuaded them to invest in Poland in the early
1990s and to cross the Vistula River. Unfortunately, they preferred Wrocław, Poznań, Śląsk [Silesia] and Pomorze [Pomerania]. I can clearly see a map of highways, high-speed trains and
great events such as Euro 2012 – a map which is not favourable
enough for Eastern Poland. It is perfect that the so called Polish Eastern Wall received an additional allocation of EU funds
in 2007-13 and used the investment money quite well. It will be
similar in the Financial Perspective 2014-20. I enjoy statistics
and assessments indicating that my Lublin and Lublin Region
are following the best practice of Dresden and Saxony, or they
are catching up and reviving not only their economies but also
cultural and scientific offer. These efforts are already underway and will be continued.
Encouraging to read this monograph, I am expressing the wish
of residents of the Polish Eastern Wall and my own that the
derogatory and hurtful association of the so called “Poland B”
with the East could become invalid as soon as possible.
Janusz Lewandowski
Commissioner for Financial Programming and the Budget
ISBN 978-83-60695-73-9