Our chamber practices lobbying in the positive meaning of the word. If we hear that one of our members is having a problem, we determine whether the issue affects the interests of other members of the chamber. If not, we take action as a serious organization representing American investors in Poland. Our lobbying supports the market economy and free competition. I would say instead that in Poland one can get by without practicing lobbying. Poland is a country in which lobbying is just as important as in any other democratic country around the world.
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Roman Rewald |
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ROMAN REWALD
President of the
American Chamber of Commerce in Poland
Damian A. Zaczek: Can lobbying be practiced in Poland?
ROMAN REWALD: I would say instead that in Poland one can get by without practicing lobbying. Poland is a country in which lobbying is just as important as in any other democratic country around the world. In other countries lobbying doesn’t necessarily have negative connotations. In short, lobbying is a way for citizens or professional groups to express their will with respect to legislative and executive bodies. This is a democratic instrument for influencing new or changing old legislation. By engaging in lobbying, citizens inform authorities about what they believe is important, including what and how these elements should be written into the law and why certain formulations are important. Of course lobbying in the name of an individual company may create suspicions of a narrow, group interest, which comes close to corruption. This type of lobbying eliminates the competition and does not serve wider, general interests. If, however, my activities are based on securing changes in regulations that are beneficial for the entire economic sector, including my competition, then this is real and badly needed lobbying. Citizens express their will through the election urn. However, business votes with money, or in other words investments in the economy, as well as lobbying. Lobbying is therefore essential for the effective management of the state.
How effective is AmCham lobbying?
Our chamber practices lobbying in the positive meaning of the word. If we hear that one of our members is having a problem, we determine whether the issue affects the interests of other members of the chamber. If not, we take action as a serious organization representing American investors in Poland. Our lobbying supports the market economy and free competition. I would like to add that Americans are still the largest investors in Poland.
Could you provide a recent example of successful lobbying by AmCham?
American enterprises which opened research centers in Poland, who work for their mother companies abroad, were being forced to pay VAT tax. This considerable financial burden meant that conducting this type of activity in Poland was unprofitable. In this case the arguments formulated by AmCham were accepted by the minister of finance and the regulations were changed. We also demonstrated that poor regulations were not the result of bad will on the part of the legislator but ignorance or unfamiliarity concerning the specifics of the trade. Levying VAT was caused by inaccuracy in classifying this type of service. We were also able to prove that the sums collected in VAT taxes were miniscule for the state budget, while the social costs would be much greater if these centers were relocated to another country and the Polish scientists they employed lost their jobs.
Let’s leave lobbying aside. What American economic practices would you like to see in Poland?
The United States is the least bureaucratic country around the world in terms of the economy. Everything that deviates from those standards in Poland is surprising for Americans. They ask why so many bureaucratic procedures are required in Poland just to arrange the simplest matter. The US is a country where everything is easy, no problem, arranged right away and without a fuss. Obviously, Poland is not going to become America and no one expects it to. In my opinion, when communist economic restrictions were revoked in 1991 and the basis for a market economy was created, the ease with which economic activity could be conducted in Poland was close to that of the US. It is strange that with the passage of time the disproportion between our countries has grown. Today one of the implications is the need to introduce regulations concerning economic activity. Currently, what was widely available a few years ago is now being overturned. We might say that in Poland there is interest in adopting American patterns, which are primarily distinguished by their reduced bureaucratic nature and elimination of unnecessary regulations. I would like to point out one crucial difference in the business approaches of our two countries: in the United States there is a certain amount of trust in other market participants, since not everything can be regulated by law. In Poland there is no sign of a similar approach. The American approach to the law is also different – more emphasis is given to the spirit rather than the letter of the law. Laws regulate logical matters, which are obvious to everyone. The rest is left up to market processes. Therefore in America there are many elements that could be successfully implemented in Poland.
Is there anything in Poland that deviates fundamentally from international standards?
These kinds of discrepancies don’t exist. Several years ago, when I participated in various economic forums, I had a list of six iron conditions without which Poland’s market economy would be unable to operate. Today all of those conditions have been fulfilled. In some areas there are details that are gradually being resolved in favor of the economy. These concern mainly the application and interpretation of the law. At AmCham we still believe that the largest investment barrier in Poland is execution of the law in the sphere of contract law. The Polish court system and law enforcement system do not require reform, since such a program was already implemented, but treatment through the education of judges, prosecutors and law enforcement organs. In this respect there is much to be done.
The growing role of Asia, Russia and the Middle East – these are the main fields of political interest in Washington. What significance does Europe, and hence Poland, have for America?
Despite what you might think, Poland has great significance for America, not only as a member of the European Union, but in a more widely understood Europe. Poland is one of the few fervent supporters of the United States on the continent. After its accession to the EU, Poland’s importance for America did not decrease, which at one point we were concerned about. President Bush consults others on many European issues, including Warsaw authorities. I want to underline that Poland does not appreciate and cannot exploit its involvement in Iraq on the American side. Americans have a saying: boots on the ground. These "boots in Iraq," or military engagement, are of particular importance for American public opinion and represent our mutual ties as our soldiers risk their lives for a common cause. This brotherhood is highly valued in Washington and by Americans, however Warsaw hasn’t used this for economic benefit. In my opinion, under the current circumstances, Poland could achieve considerably more in Washington. It would be enough to hire a lobbying firm in Washington that is able to take up Polish issues effectively. I even believe that Americans would value Poland even more if Polish issues were pursued more forcefully in America. As long as the military alliance in Iraq exists, I would advise Polish decision-makers to take advantage of this to a greater extent than they do now.
Isn’t the US focus shifting farther afield to Asia?
It is difficult for me to evaluate Washington’s foreign policy. I am more interested in the conditions for conducting American-Polish business. However, what goes on around the world also influences our mutual relations. The growth of China as an economic dragon does not threaten Poland’s position. Poland is closer and its skilled labor is not much more costly. Moreover, US-Polish political relations are probably the best in history, which has a large influence on American perceptions of Poland, including with respect to investment.
Thank you.
