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Where does „Lewiatan” come from?
On 28 October 2004 Polish Confederation of Private Employers made reference to the tradition of the pre-war Central Union of Polish Industry, Mining, Commerce and Finance Lewiatan by attaching the word „Lewiatan” to its official designation.
”15 December 1919 marks the establishment of the Central Union of Polish Industry, Mining, Commerce and Finance (CZPPGHiF). „Robotnik” (a press outlet of PPS – Polish Socialist Party) welcomed the new organization by comparing it to the legendary Leviathan, that had emerged from the depths of the sea. We decided to assume that name, the more so because we were just wondering what designation to use for post and communication purposes. And so Lewiatan was born. Paradoxically it was a PPS newspaper who became its godfather and gave it a name” – writes Andrzej Wierzbicki, chairman of CZPPGHiF, a leading representative and advocate of economic circles in the reborn Republic of Poland.
”The newly established organization is meant to be a free union of economic associations, which basically does not limit the autonomy of its members but tries to align their opinions and views, while harmonising and enhancing their efforts to achieve the common objectives of raising Poland’s economic level and developing guidelines for its economic policy.” (extract from a circular informing of establishment of the Central Union).
Lewiatan was definitely one of the most important and influential institutions in the independent Republic of Poland. Some socialists and communists used to regard it even as a central organ of authority. They believed that the facts that Poland had adopted capitalism, Lewiatan was the main representation of capitalists and their interests, and successive governments approved of the existing political system, proved that Lewiatan had actually pulled all the strings in the state and ministers were merely puppets. Certainly, this was not the case. Indeed, Lewiatan represented a huge group of interests but to make these interests understood and taken into consideration and to make the Polish industry a matter of national importance was a hard job, demanding coordinated efforts in several fields. Andrzej Wierzbicki struggled for these objectives in parliamentary commissions, at plenary meetings of the Parliament, during his consultations with Prime Ministers, meetings with ministers and contacts with politicians and the press.
Owing to its members’ personal links with right-wing political groupings, Lewiatan represented the interests of entrepreneurs and financers in the lower and upper chamber of the Parliament, influencing strongly Poland’s economic policy. Lewiatan managed to encourage the authorities to raise prices of coal and iron and to introduce tax relieves for entrepreneurs. It is also believed to have affected considerably the decisions to reduce wages and lengthen working time in the mining and metal industries.
Lewiatan was opposed by socialist Parliament members, who saw owners and managers of a private enterprise as exploiters, regarding Lewiatan itself as the worst of „bloodsuckers.” Persuasive arguments needed to be used with successive Ministers of Treasury, generally statesmen of great calibre (in particular those in office before the May Coup d'Etat of 1926). They seemed to understand these arguments quite well; however, under the pressure of the public they always tended to treat industry as a tax cow to be milked. Lewiatan was forced to educate people of backward views, so much in love with the Polish borderland, landscapes and wheat fields that they were decided to pursue their dream of Poland’s remaining an agricultural country forever. In the nineteen thirties, the army of industry opponents was reinforced by journalists representing the National Radical Camp, who launched an aggressive campaign against the system of free enterprise, world’s financial elites and Polish class of the wealthy.
Activity of the pre-war Lewiatan
CZPPGHiF was managed by a Board elected by general assembly of delegates representing all associated organizations. From among its members the Board selected a Management acting as an executive body. One of the Management members was appointed Union’s Chief Director.
In December 1919 the Union had 29 member organizations and a few years later as many as 44. In 1920 the Permanent Conference of Economic Organizations was established to comprise – apart from Lewiatan – the Central Craftsman Society and three main agricultural federations: Chief Department of Central Agricultural Organizations, Chief Council of Landowners’ Organizations and Association of Trade and Agricultural Organizations.
The organizational structure of the Central Union consisted of a director, a deputy director, secretary’s office, departments for economy and statistics, labour, communications, law, advice on business organization and a biweekly “Przegląd Gospodarczy”.
The departments of the Central Union dealt mainly with the following issues: trade treaties and international relations, customs duties and quotas in international trade, foreign trade, statistical studies, communication issues, analysis of railway functioning, tariffs, labour issues, social legislation, taxes, legal acts, particularly in the area of administration.
All the Lewiatan’s tasks and necessary work had to be done by a small permanent staff of about 20 supported by equally small auxiliary staff, including handwrites and cleaning service. The Union’s headquarters, very modestly furnished and equipped, occupied just two floors of a small house at the corner of Chmielna street and the Nowy Swiat.
„We were able to do such magnitude of work with such a small staff, because we managed to stimulate an active cooperation of all the 44 member organizations and their most competent professionals. Let us take for example the year 1926. At that time Lewiatan’s staff consisted of members of the Presidium, twenty members of the Management and a hundred members of the Board. These people were true representatives of the industry, the mining sector, trade, finance and all segments of production and trade from all parts of Poland. They shared responsibility for the whole of the country’s economic life. The Central Union, according to the tradition set by the Society of Industrialists, had a well selected but small staff, in relation to the number of tasks it had to accomplish.” – writes Andrzej Wierzbicki in his memories.
Apart from the Management and the Board there were also standing commissions responsible for the areas of communication, labour and customs. The Union participated in 40 (1926) social and scientific institutions and government advisory bodies. It also took part in the work of international organizations: League of Nations International Labour Organization, International Organization of Employers in Brussels and International Chamber of Commerce in Paris. To strengthen cooperation with the Chamber, Polish National Committee of the International Chamber of Commerce was formed.
On 1 April 1920 the first issue of the Union’s press outlet, the biweekly “Przegląd Gospodarczy”, was published. Now it is an inexhaustible source of information concerning progress of the national economy and the economic policy of the Polish industry in the interwar period – twenty volumes in folio, around a thousand printed pages each.
The international activity of the Central Union included also reception of foreign delegations, organization of visits abroad, participation in international congresses and contacts with similar organizations from other countries.
„During the twenty-year interwar period, the Central Union paved the way for Poland’s versatile economic development. General issues of Polish economic policy, international economic relations, tax policy, finance, credits and currency, industry and mining, trade and prices, customs and international trade relations and treaties, agricultural issues, communication policy, labour and social affairs, etc. – all these constituted the subject of the Central Union’s studies an influence it exerted on the Government, legislative bodies and the public. Its activity was marked with absolute transparency enabling public control over the actions taken” – writes Andrzej Wierzbicki.
Andrzej Wierzbicki – founder of Lewiatan
Andrzej Wierzbicki, President of the Central Union of Polish Industry, Mining, Commerce and Finance was a leading representative and advocate of the economic circles in the reborn independent Republic of Poland. His postulates and reflections are still highly applicable.
He was one of the most brilliant statesmen in the period of II Republic of Poland and earlier years of struggle for independence. Throughout this time his efforts focused on development of Polish private industry that was being rebuilt in spite of obstacles placed by the occupant countries and caused by the destructions of war.
Andrzej Wierzbicki strongly supported and promoted the idea of economic liberalism, free competition and reduction of state intervention into the economy. His struggle against State control was the second point of his agenda, next to efforts to make industry a matter of national importance. He ridiculed government plans to build state industry in the areas where private enterprises already operated, fully supplying the demand of the market. He mocked officials’ plans to introduce a state monopoly in production and imports of cars. He criticised the preferential treatment of state enterprises and demanded equal rights and duties for all. He fought with the detrimental policy of high taxes, sneered at the Ministers of Treasury for whom private entrepreneurs’ profits constituted outrageous violation of the principles of social justice. He was opposed to rescue measures provided to enterprises which were not able to cope themselves. He objected to "credit assistance", arguing that credits should be granted to those who had credit capacity rather than those who needed help. He called the State to stop healing and saving the industry and let it live instead.
Lewiatan Award
Polish Confederation of Private Employers Lewiatan refers to the pre-war tradition not only by its everyday work for improvement of investment conditions in Poland but also by granting annual Andrzej Wierzbicki Awards to entrepreneurs who are successful in business, but at the same time participate actively in actions to improve business environment and support good economic and social initiatives that correspond to the idea of social responsibility of business.
Reference used in the text:
• Andrzej Wierzbicki, „Żywy Lewiatan – wspomnienia” [Living Lewiatan – memories], KAW 2001
• Andrzej Wierzbicki, „Wspomnienia i dokumenty” (1877-1920)”, [Memories and documents (1877-1920)], PWN 1957
• „Myśli Andrzeja Wierzbickiego” [Andrzej Wierzbicki’s reflections] (manuscrit) |
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