On those occasions when they do talk about the economy, they either shock or amuse the economic experts. Yet, as democracy in Poland evolves, hopes arise that future campaigns will be more substance-based and down to earth
The short campaign cycle before the October 21 elections means that economic and business issues are not attracting much attention as political parties spar in the media. With so little time in which to win voters' trust, politicians are relying on emotional slogans and clichés to do the work for them.
Despite the political turmoil, however, questions important to business cannot be completely swept under the carpet. Thorough reforms are a must if Poland wants to make the most of its recent prosperity and prepare itself for future crises. The list of reforms is long: the legal system needs to be more transparent; measures are necessary to improve overall efficiency in the financial system; entrepreneurs are clamoring for simpler regulations; and promotion of innovation is desperately needed. And that's just the tip of the iceberg.
On the economic right...
While the economy may not loom large in political debate, each party running in the elections claims to have its own vision of the economy. The party which appears most friendly to entrepreneurs is the liberal conservative Real Politics Union (UPR) with its flamboyant leader Janusz Korwin-Mikke. In his view, the state is the worst manager possible.
"Every złoty managed by the state means a 1.4 złoty loss," he stated. Thus, UPR says it would limit authorities' interference in the economy to the minimum and, in many cases, ban it. The party also suggests that politicians and officials should be held responsible for the financial repercussions of their decisions.
UPR's clear and consistent political views have attracted some supporters, yet the party remains very low in the polls despite having entered an electoral coalition with the League of Polish Families (LPR) and the Right of the Republic (PR). To make things worse, the controversial behavior of Korwin-Mikke discourages potential voters.
The big fish, the highest profile free-market party, is Civic Platform (PO), the largest opposition party in the 2005-2007 parliament. PO is promising to work at liberalizing the market, lowering labor costs and speeding up reforms the previous government failed at, such as the public finances reform. "Due to the lack of reforms we have become an island in Europe," said Andrzej Halicki, a member of PO.
In reply, Law and Justice (PiS), ostensibly an economically liberal party and the main player in the previous government, claims that reform of public finances was in fact hindered by the opposition.
"This is one of the most urgent issues and we will continue working on it after the elections," Maks Kraczkowski, a PiS deputy, told WBJ.
Moreover, Kraczkowski stressed that his party promises to work on making the legal framework for business more transparent and to simplify business procedures. However, PiS does not want the state to withdraw completely from the economy - Kraczkowski noted that the state and business successfully cooperate in many Western countries, illustrating the example of France as one such success. This does not necessarily mean that privatization of state-owned companies will continue to be stalled. "We simply want to wait for the right moment," said Kraczkowski.
... and on the left
The presence of the state in the economy is necessary in the eyes of other, more leftist parties. "As much market as possible, as much country as necessary," is how Eugeniusz Grzeszczak, of the Polish Peasants' Party (PSL), puts it. His party does not see the need to lower taxes - "there is a range of other pro-development initiatives that can help businesses," argued Grzeszczak.
In the view of the Left and Democrats (LiD), a coalition of social-democratic parties, the country should be a regulator supported by an adequate legal framework. "The country should be flexible, so that the economy can develop," said Małgorzata Ostrowska, a LiD candidate.
Andrzej Lepper of Self-defense goes the furthest in advocating state control and generosity in social spending.
The majority of the parties support the idea of Poland's entering the euro zone, but they are all tight-lipped about when this might happen.
Nothing but words
According to economic experts, the parties' declarations are of little significance and no tangible effects are expected. Andrzej Sadowski, vice president of the Adam Smith Research Institute told WBJ that the parties on the political scene are more interested in gaining power than taking decisive action.
"The Bible says, 'you will know them by their fruits' and the vast majority of those who are running in this year's elections have already governed and did not prove to be particularly effective," he said.
Observers are worried that no party has a coherent and plausible strategy, even those which portray themselves as business-oriented. Thus the whole debate on economic issues comes down to mere slogans and random, often unrealistic, postulates.
Referring to one of PO's campaign slogans, Sadowski stated. "Such declarations as '[Poland deserves an] economic miracle' are totally unfounded, since no solutions to make this miracle happen are offered," he stated.
"Moreover, we hear ideas about introducing a flat tax, but with two thresholds, which is absurd," he added.
In any case, experts agreed that the long-discussed flat tax is a matter of secondary importance. Marcin Nowicki, a research fellow from the Gdańsk Institute for Market Economics (IBnGR), dismissed such talk as mere rhetoric. "What is necessary is a change of the whole tax system," he stated.
Experts interviewed by WBJ all agreed that the approach the politicians are taking to economic matters is undesirable and the need for structural changes is urgent.
"These days the government should be teeming with ideas," stressed Sadowski. IBnGR's Nowicki added that no problem should be neglected if Poland's economy is to receive a boost - especially since the time for decisive action is now. "Instead of constantly fixing a leaking roof, we need to replace it when the weather is right," he said.
In fact, none of Poland's political parties seem willing to make use of the favorable economic climate to make changes. According to Jarosław Górski of the Sobieski Institute, they lack the courage to make radical reforms and are afraid of losing popularity among the electorate. As an example of why, he pointed to the angry demonstrations held by labor unions against the economic policies of President Sarkozy in France.
Childhood disease
Indeed, even Polish society itself does not seem to be interested in the economy.
"During the 2005 elections, our research on the electorate showed that it was social and political issues, rather than economic ones that were of key significance," said Górski.
Nowicki sees the reason for this state of affairs in the country's recent history and its communist past. He claimed that although the economic boom after 1989 was fast, more time is needed for political debate to mature.
"We have to come through certain developmental stages which cannot be skipped," he stated. "This is a kind of a childhood disease," Nowicki concluded, adding that one or two more campaigns will be necessary before the economy and business are discussed properly.
"Poles are very rational and think economically, although they rarely transfer that onto a macroeconomic scale. This is why these issues need to be explained using household examples," commented Nowicki.
"It is the voting system that needs to be changed in the first place," said Sadowski, stressing that the system should allow votes to go for particular candidates instead of to a whole party. Moreover, politicians themselves need to overcome deep divisions and increase economic awareness of the society together, Nowicki remarked.
Jarosław Górski is skeptical that any of this will happen soon. "But I would like to believe it will," he said. Nowicki remains optimistic, however. "Despite various upheavals, we have often proven that we can display a great deal of solidarity and think in terms of the common good," he concluded.
