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MINISTRY OF REGIONAL DEVELOPMENT P O L A N D. EU Expansion – three years later The Polish Perspective Jerzy Kwieciński Undersecretary of State Los Angeles, April 18, 2007. Session II. Poland – assets and weaknesses. Human capital and entreprenurship. Investment attractiveness.

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slide1

MINISTRY OF REGIONAL DEVELOPMENTP O L A N D

EU Expansion – three years laterThe Polish Perspective

Jerzy KwiecińskiUndersecretary of State

Los Angeles, April 18, 2007

Session II

poland assets and weaknesses
Poland – assets and weaknesses

Human capital and

entreprenurship

Investment

attractiveness

According to the A.T. Kearney Agency Poland ranks among of the 5 best world investment locations

Almost half of the population is below 35 years old

poland assets and weaknesses1
Poland – assets and weaknesses

Environment and

natural resources

Economic

development

poland assets and weaknesses2
Poland – assets and weaknesses

Spatial arrangement

of the state

poland assets and weaknesses3
Poland – assets and weaknesses

Labor market

Innovativeness

Economy needs both: growth in B&R expednitures and strengthening of cooperation between science and industry

Unemployment rate is systematically falling.In February it stood at 14.4%.

slide6

Rate of GDP growth in the selectedEU countries in the period 2003-2006

Source: Eurostat. Database – General Economic Background/Real GDP growth rate

slide8

Foreign Direct Investments in Poland

  • Inflow of FDI in 2006 amounted to about 15 billions USD
  • So far, accumulated FDI in the transformation period (since 1989) reached about 105 billions USD
  • Results: - modernization of the economy: share of exports of high and medium technology products in the total exports of enterprises increased – in foreign investor enterprises- from about 30% in 1995 to 55% in 2005 (in domestic-capital enterprises 26%)- growth in productivity: productivity in foreign investor enterprises is over two times higher in the foreign capital enterprises than in thedomestic-capital enterprises- growth in exports (in 2006 57.4% of exports were generated by foreign investor enterprises)
regional development and raising of territorial cohesion
Regional Development and Raising of Territorial Cohesion

GDPPer capita in Voivodships (at purchasing power parity)

2004

EU-27 = 100

Poland on average 50.7

Source: Eurostat. 2007

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LONG - TERM EFFECTS OF EU MEMBERSHIP FOR POLAND

Improved positionof Polandon the global scene (political and financial credibility)

Accelerationand strengthening of the reform process

Influence of the Single European Market on the economy (GDP growth, productivity)

Impact of the EU funds

Improved national security and higher level and quality of life

slide11

IMMEDIATE EFFECTS OF EU MEMBERSHIP FOR POLAND

Growth in exports of foodstuffs and agricultural products

Reduction of duties on 35% of the volume of imports

Changes in the level of prices (in both directions)

Improved consumer protection standards

Widening of educational

opportunities

Poland’s eastern border became the EU external frontier

Gradual opening of the EU labor market

Participation in the EU decision-making process

impact of the cohesion policy
IMPACT OF THE COHESION POLICY
  • GROWTH: Instruments of the cohesion policy contribute to increase in public and private investments in the regions that receive assistance
  • CONVERGENCE: Funds contribute to the GDP growth in backwarded regions
  • EMPLOYMENT: Creation of new jobs and maximalization of the human resources potential
  • ACCRETION IN CAPITAL : Human and material
  • BETTER GOVERNANCE on the regional and local level
  • FINANCIAL STABILITY in the period of seven years
slide13

Poland as the beneficiary of the EU Cohesion Policy

For the 2004-2006 financial perspective Poland is receiving within the framework of structural assistance 12. 8 billions Euro (6% of the total EU assistance in that period).

In the period 2007-2013 Poland will have at its disposal 67.3 billions Euro for the cohession policy, that is almost 1/5 of the total EU cohesion policy financing.

Financing of other fields will exceed 18 billion Euro. Co-financing is estimated at over 22 billion Euro. Altogether, the above-mentioned funds will reach about 108 billion Euro.

slide14

Distribution of the UE resources among operational programmes NSRF/NCS 2007-2013 (in Euro)

NSRF = 67.3 mld EUR,

Including national reserve

For implementation (3% of the value of allocation)

slide15

Impact of the NSRF on the rate of growth

Difference between GDP rates of growth in the NSRF scenario and base scenario (without NSRF) expressed in percentage points

slide16

Impact of the NSRF on unemployment rate

Difference between unemployment rate in the NSRF - based scenario and base scenario (without NSRF) expressed in percentage points

slide20

MINISTRY OF REGIONAL DEVELOPMENTP O L A N D

Ministry of Regional Developmentul. Wspólna 2/4www.mrr.gov.plstrategia@mrr.gov.pl