The main purpose for the Polish economic policy should be the long lasting economic growth, the fastest among the EU countries. Only the dynamic economic development will increase the employment rate, improve the living conditions in Poland, enable Poland to join the highly developed countries and strengthen its international position.
The age of globalization brings both opportunities and treats. Reaching our goals would be possible only if we create an economic system more competitive than in other countries. Considering the current state of Polish economy, such as: technological and organizational delays, insufficient capital resources and “setting up claims" attitudes that remains from the former decade, the conditions of conducting business activities must be significantly more profitable than in the rest of the EU countries.
The necessary changes in order to facilitate entrepreneurship activities are following:
First of all, it is necessary to increase the capacity of accumulating and gaining capital. The foreign capital is a valuable supplement for the domestic capital but can not be the fundamental source of financial development. It is significant to increase the level of domestic savings, as well as investments.
Secondly, it is important to facilitate employing and exchanging relatively cheap but highly qualified work force. The system of economy in which know-how is becoming the most valuable of all resources, is more and more dependant on the educational level, mobility, innovative attitudes of both, the entrepreneurs and employees. That is why, it is indispensable to create a new model of education, as well as the liberalization of labor law and rationalization of the policy related to the payment regulations in a public sector.
Another significant thing is to limit the risk and costs related to business activities in Poland. This is not the risk connected with taking up business activities on the free market, but the additional risk and costs that result from the unclear, not transparent law regulations that leave functionaries too much free space, form too expensive formal obligations, cause unpredictable changes of regulations and economic policies, as well as a low effectiveness of activities of the state and local authorities.
The state authorities should back out of undertaking activities that would be realized significantly better and at smaller expense by individual citizens or their unions. Above all, the state authorities should back out of the economic activities and concentrate on their fundamental responsibilities, such as the formation and execution of regulations. The actual low quality of law, as well as low effectiveness of the state institutions impede in a large extent the economic growth.
The actions to undertake in order to enlarge the extent of the competitiveness of Polish economy are following:
1. Rationalization of public finance and reducing taxes:
- Limitations of redistribution through the budget which means fiscal stringency,
- Enhanced share of expenses for development purposes and limitations of social transfers within the public finance,
- Efficient transport infrastructure is a condition indispensable for the regional development,
- Enhanced modernization of Polish economy is necessary to develop and better direct outlays for the education,
- Set the income-tax from physical and corporate bodies that conduct the economic activity at the lowest level in the EU,
- Introducing the flat tax with the amount free from taxation at the minimum living wage level connected with suppression of reduced rates,
- Lower taxes and social contributions that charge the labor costs,
- Introducing the tax from the value of immovables at the lowest amount in the EU and compensated by the reduction of the income-tax.
2. Desist state institutions from the trade activities:
- Dissolution the issue of returning properties to the private ownership,
- Termination of privatization in market sector,
3. Increasing the liberty of economic activities and creating the equal opportunities for all entrepreneurs:
- Liberalization of employment,
- Limitations and modification of public assistance purpose for entrepreneurs,
- Limitations of bureaucracy related to decisions that can influence the turnover and its outcomes,
- More effective control over products certificates, copyright protection and non recorded sales,
- Shorten duration of lawsuits and execution of judgements,
- Decreasing the costs of the entry and exit from the economic activity,
- Initiate the competitiveness to the monopolized areas,
- Strengthen the role of consultations within the process of forming regulations.
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Lewiatan programme documents
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The Lewiatan programme consists of several documents that have been drawn up since the establishment of the organizations in 1999. Our views on development of Polish economy are best expressed in the PKPP Lewiatan Economic Programme. The Capitalist Manifesto, the European Manifesto and the Social Manifesto were all developed in specific circumstances as our response to an on-going debate or a way to stress our attitude to particular issues. Nevertheless, the message we contained there is still relevant.
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PKPP Lewiatan Economic Programme
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What can be done to make entrepreneurs’ life easier? What barriers should be removed to make the existing companies grow and new ones start up? This is the kind of questions that PKPP Lewiatan Economic Programme tries to answer. Rapid economic growth is the only way to increase employment and improve living conditions in our country, the only way to catch up with the world’s best developed economies, strengthen Poland’s safety and its international position. The challenges our economy is facing, e.g. growing global competition and technological progress, require reforms specified in the Programme.
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PKPP Lewiatan Capitalist Manifesto
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“Without understanding that profits are the source of enterprises’ development, it is impossible to achieve the social goals, however noble they may be”. In other words: capitalism cannot be built without capitalists, although part of the public thinks the opposite. Capitalist Manifesto, announced in 2000, calls clearly for convenient conditions for companies to develop and increase their profits, as this is the only way to ensure welfare for the whole society.
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PKPP Lewiatan European Manifesto
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European Manifesto was published on 30 April 2004, on the eve of Poland’s accession to the European Union. Since the very beginning of its activity Lewiatan has supported the process of Poland’s accession to the EU, regarding it as a historic chance to step up our country’s civilisational progress.
Nowadays Lewiatan represents Polish entrepreneurs’ interests in the EU via its own representation office in Brussels, its activity in the Confederation of European Business (Europe’s largest business organization) and its representatives in the European Social and Economic Committee.
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PKPP Lewiatan Social Manifesto
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The economic transformation has given Polish society a real chance to close the civilisational gap, caused by the previous ineffective, economic system. A large part of the society has made use of the economic freedom to increase social welfare, while working on their own account. However, the Lewiatan-associated entrepreneurs see also the problem of certain social groups failing to adjust to the new reality, the high unemployment rate and massive employment emigration. We believe that entrepreneurship and social solidarity do not have to contradict each other. This point of view is expressed in the PKPP Lewiatan Social Manifesto published on 12 July 2006.
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The Capitalist Manifesto
Private entrepreneurship has become the driving force of Poland’s development and the basis of employers’ and employees’ prosperity. It is a great success of all those who have established their firms, usually from the scratch, with their hard work and persistence. It also a great achievement of all those, who work in those companies.
However, the rules of the free market are not fully accepted yet, both by the public and the politicians. Without understanding that profits are the source of enterprises’ development, it is impossible to achieve the social goals, however noble they may be. Disputes on the budget money will not cause the economy to grow. We support the idea of multiplying jobs and opportunities for personal success instead of sharing the poverty.
Political declarations will not make entrepreneurs develop their businesses, pay higher taxes, create jobs, increase exports and investments. These actions depend mostly on profitability.
As entrepreneurs and employers we expect the national, regional and local authorities to lay down conditions for business development: to ensure macroeconomic balance, observe the budget discipline and refrain from empty promises. The responsibility of the Parliament and the Government is to improve Polish law in such a way as to raise competitiveness of our companies and products. Let us make the right use of the chances that have been given to us on our accession to the European Union.
WE DEMAND:
• lower, single tax rate, so that we have means to invest in our enterprises
• lower labour costs, including social insurance, so that we can safely increase employment
• legislation that provides for flexible labour relations
• adjustment of social guarantees to market requirements
• stable, coherent and enforceable law, that counteracts corruption by being independent of officials’ arbitrary decision-making
• subsidiarity
• equal rights and duties for private and state enterprises
• equal rights for employers’ organizations and trade unions
We proclaim this manifesto with the sense of responsibility for our companies and our employees. Let us, entrepreneurs, use the unique chance for the economic and social development of our country.
CAPITALISTS OF 21st CENTURY, UNITE!
The European Manifesto
1 May 2004 witnessed a historic event – Poland became a member of the European Union. The dreams of many generations of Poles came true. Our country reached the goal it had been pursuing for 15 years of democratic transformations.
Poland’s accession to the European Union is an event to celebrate for all the citizens, including Polish entrepreneurs and private employers.
We have used well the time of the economic and political transformations: the private sector generates today three quarters of the gross domestic product; it creates over 72 percent of jobs and accounts for 80 percent of the exports. Innovative, dynamic, brave – these are the main features of Polish entrepreneurs’ profile.
We join the European Union well aware of the chances that are being open to Polish citizens and Polish economy. To make the most of these chances, we have to work together. From now on, along with entrepreneurs from the European Union, we are going to endeavour to strengthen the market system, provide guarantees for free enterprise and limit the state interference with the economy.
We hope that our joint efforts will enable us to ensure welfare in Poland, reinforce the position of our country in the European Union and materialize the vision of the new Europe.
Polish Confederation of Private Employers
Warsaw, 30 April 2004.
The Social Manifesto
Owing to the freedom of initiative and enterprise and to the foundations of democracy and economy established after 1989 Poland today is a country of economic growth. The accession to the European Union opened new perspectives to the whole society. However, neither the market nor the EU membership are magic instruments to ensure welfare, justice and equal opportunities.
We are confronted with high unemployment rates and the danger of exclusion of large social groups. Only fifty percent of adult Poles are professionally employed. The young people, ambitious as they are in raising their education level – look for better perspectives abroad, uncertain of their future in Poland.
We are entrepreneurs but we do not treat economic activity as an objective for its own sake. We proclaim this SOCIAL MANIFESTO strongly believing, that what really matters for Polish people now and for the future generations are systemic solutions aimed at sustainable development: the combination of economic growth with increased employment and engagement of all the citizens into the social life, free of social exclusion and discrimination.
We believe that further development of Poland depends on:
• efficient state, focusing on tasks, that cannot be executed by citizens themselves, their organizations and self-governments, governed fairly and competently, making good laws and ensuring their enforcement, encouraging trust and cooperation between citizens
• liberal economy based on the principles of fair competition, promoting initiative and innovation, open to the European integration and globalisation, leading to the increase of employment and consequently to welfare, safety and social cohesion
• civil and solidary society, encouraging citizens’ resourcefulness and responsibility for their families, local communities and the State, supporting the disadvantaged, open and promoting friendly attitudes towards others regardless of their views, social and material status.
We are entrepreneurs, who focus not only on profits and barriers to the development of our businesses. We realize that satisfaction, happiness and welfare of individuals translates directly into success of our enterprises and the shape of our economy. That is why we are convinced that:
• it is crucial to provide market-determined conditions for creation of new jobs in order to reduce as much as possible the number of the unemployed, the professionally passive and the socially excluded
• it is very important to build the work environment where employers and employees obey the law and are loyal to each other, men and women have equal opportunities of development and promotion, where employees may develop their qualifications and are remunerated proportionally to their possibilities and productivity, where conditions are made for the right kind of balance between private and professional life
• it is significant to develop corporate social responsibility, so that ties are made between companies, their employees and their social environment.
Entrepreneurship and social solidarity do not have to contradict each other. We want to use the social dialogue to construct a social model that will give the Polish people a chance for a better life. This is how we understand our social mission.
Polish Confederation of Private Employers
Warsaw, 12 July 2006
THE CLIMATE MANIFESTO
Combating global warming is a challenge for us all. Preventing climate changes and reducing their negative effects is – on the one hand – an opportunity for the future generations to live in a friendly environment, but – on the other hand – it reduces the possibility of the current economic development due to the rise of the costs of economic activities connected with the investments into environmental protection. It also means an exposure to competition of enterprises operating in the countries, which have not signed the Kyoto Protocol. However, the Polish Confederation of Private Employers “Lewiatan” is of the opinion that the economic growth and climate protection are not necessarily contradicting issues.
We, the entrepreneurs support the activities of the European Commission in reducing the negative impact of the current growth on climate changes. There are some doubts, however, as to the tools, with which the Commission wants to achieve these changes, and as to the pace of their implementation. We think, nonetheless, that business, together with its partners – the government, self-governments of all levels, government agencies and NGOs, schools and universities, as well as each and every citizen – can and should undertake relevant actions, which will enable future generations to live in stable climate conditions.
Therefore, we think it necessary:
• to put the problems of climate changes on the list of priorities as a long-term subject having influence on the social, economic and ecological spheres;
• to prepare a national programme of adaptation to climate changes;
• to prepare a full analysis of costs and losses for Poland resulting from climate changes;
• to undertake proactive measures on the European Union level in the area of climate-energy package, and particularly the new system of emissions trading in order to prepare and implement the instruments of climate protection adjusted to the specifics of each country;
• to undertake proactive measures on the European Union level for the introduction of mechanisms, which will protect the European industry against unfair competition of the countries, which do not conduct active policy of climate protection;
• to undertake proactive measures on the European Union level for the use of structural funds in the fiscal years of 2014-2020 to construct “low-carbon” economies;
• to prepare a strategy of using the funds from the sale of excesses of the Kyoto Protocol and the means acquired from the auction for the rights to emit greenhouse gases in order to ease the difficult situation of Poland as a “high-carbon” country, and to promote an effective and innovative economy capable of competing in the world of the 21st century;
• to prepare legislature concerning mechanisms and incentives in the area of the improvement of energetic effectiveness – both by enterprises and households, regulations promoting pro-ecology initiatives and legal incentives to invest into renewable sources of energy and pure technologies;
• to prepare an analysis of the possibilities for using pure coal technologies in Poland and creating a friendly environment for their development and implementation;
• to engage the whole society into climate protection.
The consequences of climate changes will affect us all. With the sense of responsibility and common activities, the entrepreneurs, the society, the government and self-governments may prevent negative effects of the global warming. Moreover, these activities may become a stimuli to create a modern and a competitive economy, a source of scientific inspiration, to establish new sectors and branches of industry, as well as product and process innovations. However, they have to be undertaken together, taking into account the threats rising both from climate changes, and their restrictive limitation.
We are obliged to think in the long-term perspective, and therefore, we engage today into a well-considered, planned support of the activities for the prevention of climate changes to make a friendly climate for the entrepreneurship a fact.
The Polish Confederation of Private Employers “Lewiatan”
11 July 2008