I

POLAND
Climb back over the fence
A Globetrotters View
1

Issue No 9
As Lech tells the story, he details how the human spirit This process is poignantly displayed in the Warsaw prevailed as he lay broken, I can lie here and die, or I can museum through a series of letters by a german soldier force myself to climb back over that fence. Which he whose responsibility it was to plant the bombs that blew did ... to fanatical cheers from the polish protesting the doors off each home. In the end, 700,000 lives, population. He became a global hero and the rst post-war tremendous brainpower, and an entire professional President of Poland. Today hes on a lecture circuit telling society were lost... suddenly there were no doctors, his remarkable story of tenacity, and persistence... traits bankers, accountants, or musicians in Warsaw. Not that Poles exonerate everyday. surprisingly, it was the Poles that had the most active Some would think Americans are the true believers and and effective underground movement during the fanatic defenders of freedom but believe it, Poles defend it communist regime even more. Poland has graduated beyond their courageous plumber, who put them back on the map, but their human spirit, tenacity, and passion perpetually prevail. To be sure, you can count on the Poles to ALWAYS climb back over the fence. And no wonder.... their country has been wiped off the map twice in history as they stood between the Prussian and Russian giants. Later in the century few survived the Warsaw ghetto uprising of 1943 and the Warsaw general uprising of 1944 where Hitler ordered the destruction of the Polish Animals by literally blowing the doors off their homes and opening re on every man, woman, and child.

When many of us think of Poland we think Lech Walesa, the courageous plumber who inspired an entire nation to rise against communism. Similar to Marlon Brando in the famous union maa scene in On the Waterfront we imagine the organized union protest of the solidarity union, only to be strong-armed by secret police, beaten to near death, and thrown over the fence to die. (picture above: Lech Walesa)

Warsaw blown to pieces 1944

and rebuilt in 1990s below - now UNESCO world heritage site

ECONOMIC MIRACLE..... Today, the Poles are safe and strong players in the international scene and doing well economically. The clear advantage is the largest CEE population of 40MM, central location, highly skilled labor, and more english speakers everyday as they learn english from kindergarten through MBA school. They are integrated with the EU but trade with many nations beyond that. Ironically, Poland has better relations with Germany and Russia than ever before. They are able to make a distinction between Germany at large, and the Nazi anomaly.The nation is strong, free, open, globalized, and growing, with a vibrant and successful stock market, low tariffs, and high Foreign Direct Investment (the U.S. has invested over $20 Billion in Poland representing only 6% of Polands total FDI). Poland was the only country in Europe to GROW during the nancial crisis.

MARKET REFORM CONTINUED.... In terms of market reforms, following the collapse of communism, many of the old leaders privatized themselves and reaped the benets, creating great tension in Polish society. Like many CEE countries, corruption after the fall of the wall was rampant, but it is better today as their capitalism is more broadly based.

Joining the EU has helped transparency, but the privatization process is not b complete. Rule of law is strengthening, but police still hold people too long without reporting it and the legal system is abominably slow. Petty corruption is still a problem e.g. bribing police and ofcials for trafc tickets etc. Structural reforms are still needed such as banking reform and greater access to markets by all polish citizens (as opposed to Oligarchs and government, who tend to dominate and cohesively block market access by rigging the bid system).

SUCCESS STORIES:

Today, Strategic Entry into Poland is fairly seamless. There are few barriers to entry, banks can be used effectively, and there are plenty of good services and educated/ skilled workforce. Distribution partners are often a good idea, if only for the language/ localization and relationship network, but one can go it alone. Keep in mind,, teambuilding is a requisite part of management and can be a challenge because of the legacy of distrust ... requiring immense training and practice.

R Thomas E S Kolaja S (BELOW) moved to Poland nearly 20 years ago from Ohio, starting with Mckinsey & Co, devising their CEE strategies. He now heads his own successful consulting business designed to speed companies into the free market economy, with specialty in corporate restructuring that incorporates operational and nancial solutions.

Great business opportunities exist for mid- level services and for construction in rural areas. Examples include transportation of medical patients - there is no such thing as helicopter transfer, making rural transport to hospitals an issue. Educational services and training to develop new skills are important ... particularly management training. One interviewee describes how his mother after the fall of the wall brought back carloads of western goods to sell to Poland, Hungary, Romania, and Turkey, and had a great time doing it - traveling across borders for the rst time in her life, and a REAL shopping tour! A number of Polish Americans from around Detroit and Chicago (the largest Polish population outside of Warsaw) moved to Poland after the fall of the wall and have become very successful, but many fences have been climbed to get where they are today, some 20 years later. Stanley Urban,(LEFT) a graduate of the University of MIchigan, came to Poland from Detroit, nearly 20 years ago. He was involved in a joint venture with Thomson electronics, who purchased POLKOLOR a manufacturer of TV tubes, in Poland. He streets and they were alive with Germanys win describes the place as a wreck when he arrived, but within a year one could not have recognized the place. We replaced old equipment, introduced quality bonus incentives, reduced rejection rates to within .7% from 20%. The story has been well publicized in the Wall St. Journal and other business magazines. John Lynch, left New York City to join US AID in Poland when he learned they needed recent business school grads to help kick start the new economy in 1991. After a self described exhilarating gig as a consultant he saw the lack of tourism products in Poland and began a company sporting promotional apparel. Today LYNKA is a thriving enterprise with thousands of clients and has one more than 40 international awards. He founded the Krakow AMCHAM in 1995. David DeBendetti (right) is a New York attorney turned merger/acquisition expert who pioneered the legal profession in Warsaw. THE CULTURE Poles are satised with democracy, and have resigned themselves to satisfaction with the least-worst of their political leadership choices (sounds familiar). They are freedom loving, idealistic, and entrepreneurial. They waste no time being victims, (whereby some countries in Central and Eastern Europe seem to dwell excessively). No question they have a strong penchant for uniting in the face of adversity, but have a free spirited individualism in quieter times of prosperity. Yet, a lack of diversity may hold Poland back. Unlike more pluralistic democracies, Poland is 98% catholic and white. They have a tolerant society but do not have great experience with diversity or minorities in its social framework. Therefore, the inability to deal with a global, diverse, world, may be a handicap as global business continues to move into the territory, requiring cross cultural management skills.

It should also be emphasized that Poland like many countries in Central and Eastern Europe is currently experiencing a profound generation gap. The young, urban, hip, generation refuses to defer gratication of any kind, and have no historical memory of long lines to buy loaves of bread. Rather, the shopping center theory has triumphed in Poland ... by our Thanksgiving, the Poles were fully celebrating the holidays and shopping malls and coffee houses were abuzz and packed with young people in tight blue jeans, ipods, and high heels.

SPECIAL THANKS TO AMCHAM POLAND who arranged these tremendous interviews .

Poland