Revolutionary Changes in Poland - Essay Example

Running Head: POLAND: PART 2 Poland: Part 2 By Poland underwent revolutionary changes in the past decade which resulted in the collapse of age-old institutional structures and policies like communism. In addition, its immediate neighbors also experienced radical transformations brought about by the collapse of the Union Soviet Socialist Republic and the Berlin Wall, affecting Poland to some extent. All these turbulence occurred amidst the advent of globalization. For Poland’s part, it passed a Constitution in 1997 which was ratified by a majority of its people to make official thee new changes in the government brought about by the collapse of communism in the country. The new Constitution embodied the many changes in the political, economic and social structures of the government including the executive, legislative and judicial branches. Intensive efforts to turn around the country’s economy largely through liberalization and adoption of globalization measures as well as political decisions like entry into the European Union and aligning itself with the NATO were resorted to by the Polish government not only to access the wider European market but to ensure the security and integrity of its territorial jurisdiction. To some extent many of these measures worked, like for example, attracting foreign direct investments into the country. There is still however vestiges of the past that refused to go away, like corruption, which are unattended to largely because of the revolutionary way with which the country transitioned and therefore the resulting inadequacies of some of the laws that were put in place during the quick changing of the guard. Role of Institutional Designs in Poland President. The President of the Republic of Poland acts as its Head of State and Commander-in-Chief of the country’s Armed Forces. Previously, the President was elected by the National Assembly but since 1990, this position has been electable by popular vote. The powers of the Poland President is contained in the Short Constitution which was enacted on October 17, 1992, a document which formally put into writing all the changes and reforms instituted within the years 1989 and 1990 containing, among others, the legal framework of the entire government and its responsibilities. Subsequently, the Constitution of 1997, which was approved by a majority of the people in a national referendum, divided executive power between the Council of Ministers and the President. Among the powers of the President is the prerogative to nominate the members of the Council of Ministers which is composed of the Prime Minister, the Deputy Prime Ministers, the Chairmen and Ministers of Committees as laid down by law. This power however is subject to the approval of the Sejm, the lower house of the national Assembly. The Sejm itself can be dissolved by the President but only in two instances: when it fails together with the upper house to act on the Budget Bill within three months after its submission to it by the Government for consideration, and; when it, together with the upper house, fails to arrive at a consensus on the subject of the formation of a new government. In addition, the President is the national representative of the country internationally. He can enter into executive agreements with other countries, some of which will require the ratification by the National Assembly and nominates representatives of the country to other countries and in international bodies. He is a part of the Constitutional Tribunal which declares the constitutionality of laws and acts. He can also initiate the passage of laws and can call national referenda, a prerogative shared with the Sejm (Berglund, Ekman & Aarebrot 2004 pp 220). The National Assembly. The Polish legislature is bicameral in kind and is composed of the upper house called the Senate or Senat and the lower house called the Sejm. The Senat has 100 seats and its members are elected by the provinces for a term of four years, while the Sejm has 460 seats and its members are elected proportionally elected for a term likewise of four years. The Zgromadznie Narodowe (National Assembly) is the term used when the two houses meet in a joint session which is seldom (World Factbook 2008). The lower house or the Sejm is composed Deputies while the Senate or Senat consists of Senators. All the members of both houses are considered the representatives of the country and are compelled to obey the directions of the electorate. Both houses share legislative powers but between the two, it is the Sejm which exercises deeper powers. Balance of the power scale is therefore is tipped on the side of the Sejm rather than the Senat, an inequality guaranteed by the Polish Constitution itself. Between the two, for example, it is only the Sejm which is granted control over the Minister Council and reenact a law referred to it by the President with a three/fifths vote of its members. Together with the Senat, the body has the power to bring an indictment against the President for violations of the Constitution or a statute. More importantly, it is the Sejm which has control over the Government and the members of the Council Ministers are accountable to it as the former has the power to bring its members before the Tribunal Council. The right to introduce legislation can be exercised by the President, the Senate and even by the citizens themselves who must at least constitute 100,000 but the bulk of the non-governmental draft bills can be proposed only by the Sejm by a simple majority of the number of its Deputies unless otherwise required by the Constitution. A bill passed by the Sejm however still requires submission to the Senat which may adopt it, adopt it with amendments, or reject it. A rejection resolution of the Senate however may still be overpowered by the Sejm through a vote of absolute majority (Wilson & Brodecki 2003 pp 25-26). The Council of Ministers and the Prime Minister. As previously stated, the Council of Ministers is composed of the Prime Minister, Deputy Prime Ministers, and Ministers. The Prime Minster stands a s the head of the Council and is appointed by the President. The Council was created for the purpose of having a governmental body tasked with the function of creating and providing solutions to current policies of the country. Its functions, in particular, are: ensure “the implementation of statutes; issue regulations; co-ordinate and supervise the work of organs of State administration; protect the interests of the State Treasury; adopt a draft State budget; supervise the implementation of the State budget; pass a resolution on the closing of State accounts and reporting on the implementation of the budget; insure the internal and external security of the State and public order; exercise general control in the field of relations with other States and international organizations; conclude – as duly authorized State representatives – international agreements requiring ratification as well as accept or renounce other international agreements, exercise control in the field of national defence and annually specify the number of citizens required to carry out military service and determine the organization and manner of its own work” (Wilson & Brodecki 2003 p 28). The Ministers who composed the Council are each assigned to supervise a government bureaucratic branch and to this end they are granted the power to issue regulations within the area of their competence. However, the limits of their functions are only those which are prescribed by the Constitution itself (Wilson & Brodecki 2003 p 28). Judiciary. The judiciary exercises the judicial powers and is independent of the executive as well as the legislature. Needless to say, the courts’ primary function is the administration of justice. The highest court is the Supreme Court which administers over the lower courts including the common courts, administrative courts and martial courts. The common courts include the following: courts of appeal; provincial courts and district courts. The Constitutional Tribunal. The Constitutional Tribunal determines the constitutionality and legality of the following: laws, and; activities and purposes of political parties. It is made of 15 judges appointed by the Sejm for a term of 9 years and chosen from amongst outstanding personalities in the field of law. In brief, the most common functions of the Tribunal are: to determine whether a particular statute is in accord with international treaties and the Polish Constitution; to determine whether a statue is in conformity with international agreements with required prior ratification, and; to determine whether issuances of State organs are in accordance with the Constitution, ratified international agreements and statutes. The determinations of the Tribunal are final which even the powerful Sejm cannot revoke (Wilson & Brodecki 2003 p 34). State Tribunal. The State Tribunal is the government organ to which positions and offices created under the Polish Constitution are accountable to. This accountability applies to acts or omissions made by the government official within the scope of his office and functions and which qualify as unconstitutional or illegal under the laws of Poland. Consisting of 19 members, one of which is the chairperson, and two of which act as the Deputy Chairpersons, these people are directly appointed by the Sejm for a period coinciding with the latter’s tenure of office (Wilson & Brodecki 2003 p 34). Ombudsman. The Ombudsman or the Parliamentary Commissioner for Civil Rights Protection is a state organ whose main task is to investigate complaints of violation of civil rights of the citizens committed by public authorities, agencies of public administration, and government-related offices, as well as cases within the jurisdiction of the courts although it cannot infringe upon the latter’s independence. The Ombudsman is only accountable to the National Assembly and no other, and enjoys legal immunity from all suits. The Role of Corruption The radical changes that swept Poland during the last decade or so have positively resulted in giving fundamental freedoms, like freedom of speech and of the press, back to the people. However, because of the revolutionary way in which it took place and the recentness of the events, the resulting transition has some flaws in it. One of the problems faced by the new republic is the issue of corruption. And in Poland, this corruption presently takes the form of bribery (Plywaczewski & Plywaczewski 2005 pp 129-132). Corruption in Poland is being practiced in three levels: administrative; political, and; economic. With respect to administrative corruption, this occurs primarily at the government services level when a public servant requires a citizen financial favors in return for the rendering of services, legal or illegal, or the giving of services faster than what is given of the others. This kind of corruption almost always occurs in tax collector’s offices, customs offices and law enforcement agencies (Plywaczewski & Plywaczewski 2005 pp 129-132).. Political corruption may be committed by parliamentarians (the Deputies and the Senators), and other members of the government with the most dangerous kind being done to support the candidacy of a certain political figure or party. This is dangerous because the politician or the party then becomes beholden to the backer out of his or its gratitude and the exercise of his power as a politician becomes subject to the control and wishes of the latter. Poland is susceptible to this form of corruption because of the fact that the country has no established transparent system of financing political parties (Plywaczewski & Plywaczewski 2005 pp 129-132). On the other hand, economic corruption occurs when economic factors are being manipulated by those in whose hands lay the prerogative to issue and require certain formalities like the signing of a contract in certain economic turnover. Clearly, this is against the law on fair competition. The World Bank has already declared the manifestations that there is indeed a connection between politics and business in Poland with the following: “unclear criteria for supporting of acts; public contracts carried on not in keeping with accepted regulations; unclear criteria for privatization processes; interference in concession procedure, and; lack of uniform policy on tax exemption (Plywaczewski & Plywaczewski 2005 pp 129-132). In a BBC news report in 2005, the entry of Poland in the European Union market after the collapse of communism in the country in 1987 was hailed as a catalyst of progress earning the country a GDP (Gross Domestic Product) growth of 5.4% for that year. However, this figure, according to analysts could have easily reached 10% had the presence of corruption not overshadowed this unprecedented growth. According to Jerzy Brniak of the British oil giant BP in Poland, corruption in the country largely stemmed from unclear laws and unstable tax systems which resulted in room for misconduct of public personnel. As a matter of fact, corruption even hit the highest tier of the government resulting in the resignation of Prime Minister Leszek Miller as well as the incarceration of a high profile film producer when he declared that he could change legislation to favor film-making for the price of $18 (Lynam 2005). The Role of the Military Historically, the military in Poland once played a vital role in the country’s politics. In 1926, at the behest of Marshall Josef Pilsudski, the military staged a coup and wrested power from the civil government. Pilsudski’s military regime came to an end after his death in 1935 and the regime evolved into authoritarianism. The military also helped the institution of the communist regime after the World War II and helped stopped political unrest in the 1950s. In 1981, the military was used to put an end to the Solidarity crisis when Martial Law was imposed. This did not however earn the military a bad image with the populace as it was consistently voted as the most trusted institution in Poland outranked only by the Catholic Church (DeRouen & Heo 2005 p 638). During the imposition of martial law, the military leaders in the forefront were also Party officials and at the same time soldiers. The fall of the Berlin Wall as well as the collapse of the Union of the Soviet Socialist Republic (USSR) in the 1990s complicated things for Poland as it resulted in the emergence of new independent nations bordering the country which have seceded from Russia, doubling the number of its original neighbors from three to seven. To meet these new developments, Poland instituted military reforms, among others, and devised new policies which called for the streamlining the Ministry of National Defense and brought the military under civilian rule. The new reform measures included the setting of limits of terms of the commanders and the gaining control by the Parliament of the defense budget. Moreover, there was a move to create a military that was separate from and beyond politics. Subsequently the military was effectively pared down and was staffed by professionals (Lansford & Tashev 2005 p 196). In 1999, Poland took on a new role in European foreign policy by joining the North Atlantic Treaty Organization (NATO). Two weeks later, NATO took an offensive by launching a military intervention in Kosovo which caught Poland off-guard. Coming out from the dust of the recent internal strife, the Polish army, then still needing reforms and modernization, was less than prepared (Zaborowski & Dunn 2003 p 23). Institutional Arena Product-Market ‘Relatively-restrictive product-market regulation Competition Administrative burdens for corporations Barriers to entrepreneurship Public Sector Barriers to trade and investment Wage-labor nexus ‘Restrained tripartism’ Mildly regulated labour market Moderate employment protection Informal tripartite for a social dialogue Weak trade unions Defensive union strategies Financial sector Small, bank-based system Small, financial market Low sophistication of financial market Limited banking orientation Poor business environment Low conformity to standards of corporate governance Limited market for corporate control Importance of DFI by multinationals Table 1 Major characteristics of capitalism in Poland Source: Hancke, Rhodes & Thatcher 2007 p 367 The Role of Capitalism After the collapse of communism in the country and the election of the new government, the first of the tasks facing the latter is the decision as to what kind of government should be adopted by the country. The first model that was taken into consideration was the Anglo-Saxon model (similar to that of the British) because of the following factors: “readiness to take risks; strong entrepreneurial spirit; the ability to learn fast; deeply ingrained sense of individualism; reluctance to cooperate with others and operate with larger operational systems, and; the propensity to consume (Sriramesh & Vercic 2003 p 268). In the end, the new government chose to adopt the social market economy although it is more perceptibly like the Anglo-Saxon model. Table 1above shows the characteristics of the Polish system of capitalism from the product-market competition, wage labour-nexus to the financial sector. The embrace of capitalism by Poland was significant because it was what fueled the state to open itself to globalization and free trade and accept FDIs. The Role of Foreign Direct Investments As far as Foreign Direct Investments (FDIs) are concerned, Poland is one of the most attractive markets in Europe. This is attested to by the history of FDIs in Poland beginning in the 1990s. The reforms undertaken by the Government since the 1990s, its membership in the European Union also in the 1990s, and its inclusion in the Organisation for Economic Cooperation and Development (OECD) in 1996, all helped to work and make Poland emerge as a very attractive economy for FDIs. By the end of 2001, for example, Poland accounted for one-third of the total FDI investment in Central and Eastern Europe. However, there was a slump of FDI inflow into the country after ten years noticed in the early 2000 presumably caused by a parallel slump in the world economy causing a decline of the privatization pace in Poland (Jablonska 2003 p 396). Interests of the FDIs in the country were largely focused on the financial brokerage sector, the food industry, the automotive industry and the machine building industry. Most of these investors come from OECD countries like the United States, France, Germany, the Netherlands, and other EU member states. The primary reasons why FDIs flocked to Poland is its cheap labor, the market size, sufficient labor supply and prospects of economic growth. The labor factor however will inevitably change as the standard of living in Poland eventually rises. In 2003, foreign companies were becoming of importance in Poland and economic indicators in these companies were relatively better than the local ones (Jablonska 2003 p 399). The privatization measures also undertaken by the government in the 1990s was also a factor why FDIs were attracted to Poland. The country was then spearheading a two-pronged privatization: direct privatization of small and medium sized industries, and; indirect privatization of larger firms (Jablonska 2003 p 399). The most positive factor brought in by foreign companies operating in Poland is that these companies exhibit the greatest development potential aside from the fact these companies make the biggest expenditures, and implement various programmes on investment and restructuring. In other word, these companies have very positive impact on the economic life of Poland (Jablonska 2003 p 399). The Role of Global Influence Most of the changes instituted by the government after the post-communism period was palpably influenced by globalization considerations. There is evidence that the changes instituted in post-communist Poland was largely influenced by external events although it cannot be said that the internal strife which caused the communist stronghold to loosen was likewise influenced by the external world. The changes, for example, instituted by the government veered away from the eastern outlook to a more western perspective of the democratic way of governance. In addition, Poland’s transition was towards international economy, closer ties with competitive economies, exposure to technological advances, vulnerability to market shocks which all point to the influences of globalization (Plomien 2006 p 247). The transition policies therefore undertaken by Poland were obviously geared to catapu;t itself in the global market. When it was still in the process of applying as a full member of the EU , for example, Poland tried hard to diminish the economic gap between it and the rest of the EU as well as boost its GNP growth. Thereafter, it liberalized prices and market regimes, “privatized most of its state-owned enterprises, re-directed its trade from the Soviet Union-dominated COMECON trading bloc towards the EU and opened up its market to foreign investment” (Marinova & Marinova 2003 p. 230). Poland’s transition from a communist nation to a modern capitalist state had admittedly suffered initial setbacks. Today, however, the country’s institutional designs are well in place and working. The process of liberalization, privatization and other measures calculated to catapult the country well-entrenched in the global market have been made and as result of which FDIs have been pouring into the country and as a BBC News said the country “has been sucking in the most foreign direct investments in Central Europe” and has been enjoying economic success since its entry into the European Union in 2004. Despite all these positive feedbacks however, Poland like most emerging economies still suffer from corruption at the political, economic and administrative level. Vague laws and unclear tax laws whose loopholes have been left unplugged have made it possible for individuals to take advantage and accept or demand financial favors from citizens and corporations. The sad fact about corruption however is that if it is not stopped at the soonest it develops into a festering sore that never heals and eventually becomes an institution by itself. . References Berglund, Sten & Ekman, Joakim & Aarebrot, Frank H. (2004). The Handbook of Political Change in Eastern Europe. Edward Elgar Publishing. Betz, David. 2004. Civil-military Relations in Russia and Eastern Europe. Routledge. DeRouen, Karl R. & Heo, (2005). Defense and Security: A Compendium of National Armed Forces and Security Policies. ABC-CLIO. Hancké, Bob & Rhodes, Martin & Thatcher, Mark. (2007). Beyond Varieties of Capitalism: Conflict, Contradictions, and Complementarities in the European Economy. Oxford University Press. Jablonska, Danuta. Chap 22 The Role of Foreign Direct Investment in Poland’s Enterprise Sector Reform. Tumpel-Gugerell, Gertrude & Mooslechner, Peter. (2003). Structural Challenges for Europe. Edward Elgar Publishing. Lansford, Tom & Tashev, Blagovest. (2005). Old Europe, New Europe and the US: Renegotiating Transatlantic Security in the Post 9/11 Era. Ashgate Publishing, Ltd. Lynam, Joe 4 August 2005. Corruption shadows Polish growth. BBC News. http://news.bbc.co.uk/1/hi/business/4745551.stm Marinova, Svetla Trifonova & Marinova, Svetla. (2003). Foreign Direct Investment in Central and Eastern Europe: Theoretical and Practical Perspectives. Ashgate Publishing, Ltd. Olson, David M. & Crowther, William E. (2002). Committees in Post-Communist Democratic Parliaments: Comparative Institutionalization. Ohio State University Press. Osica, Olaf “In Search of a New Role: Poland in Euro-Atlantic Relations” Zaborowski, Marcin & Dunn, David H. (2003). Poland: A New Power in Transatlantic Security. Routledge. Plomien, Ania. Chapter 10. Women and the Labor-market in Poland. Blossfeld, Hans-Peter & Hofmeister, Heather Anne. (2006). Globalization, Uncertainty And Womens Careers: An International Comparison. Edward Elgar Publishing. Plywaczewski, Emil & Plywaczewski, Wieslaw. Chapter 9, The Threat of Corruption in Poland with Particular Reference to Public Servants. Sarre, Rick & Das, Dilip K. & Albrecht, Hans-Jörg. (2005). Policing Corruption: International Perspectives. Lexington Books. Republic of Poland. Un.org. http://unpan1.un.org/intradoc/groups/public/documents/un/unpan023221.pdf Sejm of the Republic of Poland. http://www.sejm.gov.pl/english/sejm/sejm.htm Sriramesh, Krishnamurthy & Verčič, Dejan. (2003). The Global Public Relations Handbook: Theory, Research, and Practice. Routledge. Wilson, Joseph & Brodecki, Zdzisław (2003). Polish Business Law. Kluwer Law International. . Read More