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Export Expansion and Acceleration of Economic Growth




The abolition of foreign trade monopoly in the early 90s enabled 300 thousand entities to commence co-operation with foreign markets. Association treaties with the EU, EFTA and CEFTA have liberalised trade. Most likely, owing to the initial asymmetry of this liberalisation, the pace of export growth in 1993-96 exceeded the pace of import growth. Nonetheless, the lack of modern commodities as well as the lack of the possibility of applying export subsidies resulted in a swifter growth of imports in comparison with exports. The introduction of visas for citizens of the former Soviet Union coming to Poland brought about a drastic decrease in border trade revenues.


Long lasting investment import, which was supposed to enhance the economy's competitiveness, did not live up to expectations. KUKE (National Office for Export Control) operates only a fraction of the turnover. The promotion fund is not developed enough to perform its functions. The principle of subsidies to export loan rates calls for changes. The condition for export growth is the change in export financing methods. Exorbitant interest rates require the sales of goods on prepayment basis at much lower prices.


It is imperative for trade relations between Russia and Poland to be intensified. Many facilities constructed and equipped by Polish companies are in need of reconstruction and renovation (the former Soviet Union, Arab countries and former Yugoslavia). To restore border exchange (until we join the EU) visa requirements for the CIS citizens should be lifted.


It is estimated that the export growth by 1 billion dollars will result in the creation of 40 thousand new jobs, thus the restoration of any export forms will be of extraordinary importance when trying to limit unemployment, which to a large extent is a product of stalling the economy.


In the long run the advancement in production growth and maintaining its dynamics will be determined by both the non-inflation internal demand growth as well as the expansion of Polish companies on external markets, not only EU ones. Therefore, it is so crucial to draft a growth strategy of "export-led" type (as was the case in 1994-97) and not the "import-fed" type (as has been the case in 1998-2001).