What is the reason for the low rate of private investment in Poland? Why do most companies use short-term strategies? What investment challenges does our country face? These and other questions were answered by Professor Jerzy Hausner together with a group of prominent economic experts.
The latest Economic Alert describes the factors contributing to the poor private investment situation in our country, focusing on three issues.
1. the epidemic and scale of the recession
There are now two additional extremely important factors that will limit business investment: uncertainty caused by fears about the length of the epidemic and concerns about the scale of the recession in the Polish and European economies, as well as a large drop in corporate earnings in a situation where own funds are the main source of financing business investment in our country.
2. publicly financed investments and their inefficiency
Publicly financedinvestments have a relatively high share in the Polish economy, which is primarily due to the extensive inflow of EU funds. However, many of them are ineffective or even misguided. Examples: the billion zlotys sunk in the merely initiated construction of a coal-fired unit at the Ostrołęka Power Plant, the millions put into the modernization of the practically non-operational ST 3 company in Szczecin, or the millions currently being spent on digging the Vistula Spit. These will find their way into the investment statistics, but their significance for the future of the economy is questionable, to say the least.
3. long-term investors
The Polish economy needs long-term investors who have a stabilizing effect on the capital market and provide capital to support the development of businesses. Therefore, it is important to build people's trust in financial institutions and encourage them to invest. Long-term savings can provide an important source of support for investment in the economy. We can't afford to continue to undermine trust in entities that act as intermediaries for the placement of long-term savings.
The document was developed by:
- Prof. Jerzy Hausner - Cracow University of Economics
- Bartłomiej Biga, PhD - Cracow University of Economics
- dr. hab. Agnieszka Chłoń-Domińczak - Warsaw School of Economics
- Prof. Jan Czekaj - Cracow University of Economics
- Sławomir Dudek, Ph.D. - Chief Economist of the Employers of Poland
- Dariusz Filar, Ph.D. - Professor Emeritus of the University of Gdansk
- dr Mirosław Gronicki - former Minister of Finance
- drJanusz Jankowiak - Chief Economist, Polish Business Roundtable
- Robert Kowalski - Stanford University
- Leszek Pawłowicz, Ph.D. - Coordinator of the European Financial Congress, Vice-President of the Management Board of the Gdańsk Institute for Market Economics
- dr. hab. Andrzej Rzońca - Warsaw School of Economics
- Prof. Andrzej Slawinski - Warsaw School of Economics
- dr. Małgorzata Starczewska-Krzysztoszek - University of Warsaw
The above measure is an initiative of the Open Eyes Economy Summit think tank and the College of Economics and Public Administration at the Cracow University of Economics.
The full text of the new Economic Alert is now available on the OEES website.
The results of the discussions of special expert groups are presented and made public in the form of opinions on the most important current problems facing state institutions and state bodies.
elaborated. ed.
