New Europe, Old Economy
Poland is America's new best friend. But the country is also in deep distress
Bucking the Trend
One polish community thinks prosperity is the real thing
This Land Is Your Land
Wild West City. America in Europe, or the new economic frontier?

End of the Affair?
How attractive is E.U. expansion?
[10/21/02]
Cashing In
Out With The Old and in With the Euro [1/14/2002]

E-mail your letter to the editor






Posted Sunday, May 25, 2003; 17.12BST
ZIV KOREN/POLARIS for TIME
CIVIC HEAD: Mayor Stanislaw Kracik
Kracik's answer is bitter: "Poland is still waiting for a government that puts the interests of the average Pole above the next election results," he says. While years of political infighting on the national level have stymied economic reform and dented investor confidence (foreign direct investment dropped from $10.6 billion in 2000 to $6.1 billion last year), Niepolomice continues to grow and keeps unemployment in check. Poland's economy grew by a paltry 1.3% last year, while Niepolomice's surged 5%. Polish unemployment exceeds 18%, while in Niepolomice it's 7%. Before the global slump struck two years ago, unemployment in the municipality was as low as 5.5%. Kracik has kept local taxes at the maximum allowed by Polish law, but spends the money wisely on new roads and other infrastructure improvements. To many locals Kracik, a 52-year-old former labor organizer who was elected mayor in 1990, is living proof that Poland can change. "We are very lucky to have him," says Barbara Wlodarska, a 51-year-old coffee-shop owner. "Taxes are high, but we get a lot in return."

Krakow's proximity has been a major draw to investors, as well as Niepolomice's leisure facilities, which include an 18-hole golf course and a painstakingly restored 16th century castle, a venue for concerts and conferences. But Kracik's pro-business approach has been the key. His staff routinely handle the paperwork associated with new investments, and construction permits are granted within days rather than weeks. Last year, when PSA Peugeot Citroën was looking for a place to build a $700-million car plant, Niepolomice was the only municipality in Poland to offer the necessary 200 hectares of land in a single plot, a feat that required Kracik and his staff to convince some 600 individual owners to sell. "I like to hear the investors drop to the floor with surprise," Kracik says. However, the full-service approach is not foolproof. Try as he might to impress the French, Kracik lost the investment to a location in Slovakia.

The current slump has slowed Niepolomice down, but also presented new opportunities. Thanks to falling real-estate prices, Kracik picked up an old military garrison that he plans to develop into shops and a retirement community. "I believe in providing a fishing rod, not handing out fish," he says. "My responsibility is to ensure that schools are well equipped, the infirm and elderly taken care of, and there are jobs." The approach has worked for Niepolomice and it may be just what Poland needs as well.

Previous | 1 | 2




Table of Contents
Subscribe to TIME

ADVERTISEMENT

On New Year's Eve, the Miseries of Minsk
As Russia hikes up the cost of gas for Belarus, the mood turns gloomy
Mogadishu at 60 Miles an Hour
Arms merchants are once again doing brisk business after a rapid change of power in this tough town, but so far the peace has held
The Year of The Nuke
A rundown of the world's nuclear powerhouses, and what to expect in the coming months
QUICK LINKS: New Europe, Old Economy | Bucking the Trend | This Land Is Your Land | Back to TIMEeurope.com Home
FROM THE MAY 12, 2003 ISSUE OF TIME MAGAZINE; POSTED SUNDAY, MAY 4, 2003

BANNER PHOTO JOHN MCCONNICO/AP

 © 2003 Time Inc. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
Subscribe | Customer Service | FAQ | Site Map | Privacy Policy | Terms of Use | Contact Us
World Watch e-mail | Try AOL UK for 120 hours FREE | Try FOUR free issues of TIME