Poland

 

Poland 

 

Bureau of European and Eurasian Affairs                                       
August 2007                                                                   
                                                                       
  Background Note: Poland                                                      
                                                    
PROFILE                                                                     
                                                                       
  OFFICIAL NAME:                                                              
  Republic of Poland                                                          
                                                                       
  Geography                                                                   
  Area: 312,683 sq. km. (120,725 sq. mi.); about the size of New Mexico.      
  Cities (2004): Capital--Warsaw (pop. 1,690,821). Other cities--Lodz         
  (776,297), Krakow (757,957), Wroclaw (636,854), Poznan (573,003), Gdansk    
  (460,524).                                                                  
  Terrain: Flat plain, except mountains along southern border.                
  Climate: Temperate continental.                                             
                                                                       
  People                                                                      
  Nationality: Noun--Pole(s). Adjective--Polish.                              
  Population (July 2006): 38.5 million.                                       
  Annual growth rate: Unchanging.                                             
  Ethnic groups: Polish 98%, German, Ukrainian, Belorussian, Lithuanian.      
  Religions: Roman Catholic 90%, Eastern Orthodox, Uniate, Protestant, Judaism.
  Language: Polish.                                                           
  Education: Literacy--98%.                                                   
  Health (2006): Infant mortality rate--7.2/1,000. Life expectancy--males 71  
  yrs., females 79 yrs.                                                       
  Work force: 17.2 million. Industry and construction--29%; agriculture--16%; 
  services--54%.                                                              
                                                                       
  Government                                                                  
  Type: Republic.                                                             
  Constitution: The constitution now in effect was approved by a national     
  referendum on May 25, 1997. The constitution codifies Poland's democratic   
  norms and establishes checks and balances among the president, prime        
  minister, and parliament. It also enhances several key elements of democracy,
  including judicial review and the legislative process, while continuing to  
  guarantee the wide range of civil rights, such as the right to free speech, 
  press, and assembly, which Poles have enjoyed since 1989.                   
  Branches: Executive--head of state (president), head of government (prime   
  minister). Legislative--bicameral National Assembly (lower house--Sejm, upper
  house--Senat). Judicial--Supreme Court, provincial and local courts,        
  constitutional tribunal.                                                    
  Administrative subdivisions: 16 provinces (voivodships).                    
  Political parties (in parliament): Law and Justice (PiS), Civic Platform    
  (PO), Self-Defense (SO), Democratic Left Alliance (SLD), League of Polish   
  Families (LPR), and the Polish Peasant Party (PSL).                         
  Suffrage: Universal at 18.                                                  
                                                                       
  Economy                                                                     
  GDP (2006): $265.4 billion.                                                 
  Real GDP growth (2006): 5.3%.                                               
  Per capita GDP (2006): $14,100.                                             
  Rate of inflation (2006): 1.3%.                                             
  Natural resources: Coal, copper, sulfur, natural gas, silver, lead, salt.   
  Agriculture: Products--grains, hogs, dairy, potatoes, horticulture,         
  sugarbeets, oilseed.                                                        
  Industry: Types--machine building, iron and steel, mining, shipbuilding,    
  automobiles, furniture, textiles and apparel, chemicals, food processing,   
  glass, beverages.                                                           
  Trade (2006): Exports--$110.7 billion: furniture, cars, ships, coal, apparel.
  Imports--$113.2 billion: crude oil, passenger cars, pharmaceuticals, car    
  parts, computers.                                                           
                                                                       
  PEOPLE                                                                      
  Poland today is ethnically almost homogeneous (98% Polish), in contrast with
  the World War II period, when there were significant ethnic minorities--4.5 
  million Ukrainians, 3 million Jews, 1 million Belorussians, and 800,000     
  Germans. The majority of the Jews were murdered during the German occupation
  in World War II, and many others emigrated in the succeeding years.         
                                                                       
  Most Germans left Poland at the end of the war, while many Ukrainians and   
  Belorussians lived in territories incorporated into the then-U.S.S.R. Small 
  Ukrainian, Belorussian, Slovakian, and Lithuanian minorities reside along the
  borders, and a German minority is concentrated near the southwest city of   
  Opole.                                                                      
                                                                       
  HISTORY                                                                     
  Poland's written history begins with the reign of Mieszko I, who accepted   
  Christianity for himself and his kingdom in AD 966. The Polish state reached
  its zenith under the Jagiellonian dynasty in the years following the union  
  with Lithuania in 1386 and the subsequent defeat of the Teutonic Knights at 
  Grunwald in 1410. The monarchy survived many upheavals but eventually went  
  into a decline, which ended with the final partition of Poland by Prussia,  
  Russia, and Austria in 1795.                                                
                                                                       
  Independence for Poland was one of the 14 points enunciated by President    
  Woodrow Wilson during World War I. Many Polish Americans enlisted in the    
  military services to further this aim, and the United States worked at the  
  postwar conference to ensure its implementation.                            
                                                                       
  However, the Poles were largely responsible for achieving their own         
  independence in 1918. Authoritarian rule predominated for most of the period
  before World War II. On August 23, 1939, Germany and the Soviet Union signed
  the Ribbentrop-Molotov nonaggression pact, which secretly provided for the  
  dismemberment of Poland into Nazi and Soviet-controlled zones. On September 
  1, 1939, Hitler ordered his troops into Poland. On September 17, Soviet     
  troops invaded and then occupied eastern Poland under the terms of this     
  agreement. After Germany invaded the Soviet Union in June 1941, Poland was  
  completely occupied by German troops.                                       
                                                                       
  The Poles formed an underground resistance movement and a government in     
  exile, first in Paris and later in London, which was recognized by the Soviet
  Union. During World War II, 400,000 Poles fought under Soviet command, and  
  200,000 went into combat on Western fronts in units loyal to the Polish     
  government in exile.                                                        
                                                                       
  In April 1943, the Soviet Union broke relations with the Polish government in
  exile after the German military announced that they had discovered mass     
  graves of murdered Polish army officers at Katyn, in the U.S.S.R. (The      
  Soviets claimed that the Poles had insulted them by requesting that the Red 
  Cross investigate these reports.) In July 1944, the Soviet Red Army entered 
  Poland and established a communist-controlled "Polish Committee of National 
  Liberation" at Lublin.                                                      
                                                                       
  Resistance against the Nazis in Warsaw, including uprisings by Jews in the  
  Warsaw ghetto and by the Polish underground, was brutally suppressed. As the
  Germans retreated in January 1945, they leveled the city.                   
                                                                       
  During the war, about 6 million Poles were killed, and 2.5 million were     
  deported to Germany for forced labor. More than 3 million Jews (all but about
  100,000 of the Jewish population) were killed in death camps like those at  
  Oswiecim (Auschwitz), Treblinka, and Majdanek.                              
                                                                       
  Following the Yalta Conference in February 1945, a Polish Provisional       
  Government of National Unity was formed in June 1945; the U.S. recognized it
  the next month. Although the Yalta agreement called for free elections, those
  held in January 1947 were controlled by the Communist Party. The communists 
  then established a regime entirely under their domination.                  
                                                                       
  Communist Party Domination                                                  
  In October 1956, after the 20th ("de-Stalinization") Soviet Party Congress in
  Moscow and riots by workers in Poznan, there was a shakeup in the communist 
  regime. While retaining most traditional communist economic and social aims,
  the regime of First Secretary Wladyslaw Gomulka liberalized Polish internal 
  life.                                                                       
                                                                       
  In 1968, the trend reversed when student demonstrations were suppressed and 
  an "anti-Zionist" campaign initially directed against Gomulka supporters    
  within the party eventually led to the emigration of much of Poland's       
  remaining Jewish population. In December 1970, disturbances and strikes in  
  the port cities of Gdansk, Gdynia, and Szczecin, triggered by a price       
  increase for essential consumer goods, reflected deep dissatisfaction with  
  living and working conditions in the country. Edward Gierek replaced Gomulka
  as First Secretary.                                                         
                                                                       
  Fueled by large infusions of Western credit, Poland's economic growth rate  
  was one of the world's highest during the first half of the 1970s. But much 
  of the borrowed capital was misspent, and the centrally planned economy was 
  unable to use the new resources effectively. The growing debt burden became 
  insupportable in the late 1970s, and economic growth had become negative by 
  1979.                                                                       
                                                                       
  In October 1978, the Bishop of Krakow, Cardinal Karol Wojtyla, became Pope  
  John Paul II, head of the Roman Catholic Church. Polish Catholics rejoiced at
  the elevation of a Pole to the papacy and greeted his June 1979 visit to    
  Poland with an outpouring of emotion.                                       
                                                                       
  In July 1980, with the Polish foreign debt at more than $20 billion, the    
  government made another attempt to increase meat prices. A chain reaction of
  strikes virtually paralyzed the Baltic coast by the end of August and, for  
  the first time, closed most coalmines in Silesia. Poland was entering into an
  extended crisis that would change the course of its future development.     
                                                                       
  The Solidarity Movement                                                     
  On August 31, 1980, workers at the Lenin Shipyard in Gdansk, led by an      
  electrician named Lech Walesa, signed a 21-point agreement with the         
  government that ended their strike. Similar agreements were signed at       
  Szczecin and in Silesia. The key provision of these agreements was the      
  guarantee of the workers' right to form independent trade unions and the    
  right to strike. After the Gdansk agreement was signed, a new national union
  movement--"Solidarity"--swept Poland.                                       
                                                                       
  The discontent underlying the strikes was intensified by revelations of     
  widespread corruption and mismanagement within the Polish state and party   
  leadership. In September 1980, Gierek was replaced by Stanislaw Kania as    
  First Secretary.                                                            
                                                                       
  Alarmed by the rapid deterioration of the PZPR's authority following the    
  Gdansk agreement, the Soviet Union proceeded with a massive military buildup
  along Poland's border in December 1980. In February 1981, Defense Minister  
  Gen. Wojciech Jaruzelski assumed the position of Prime Minister as well, and
  in October 1981, he also was named party First Secretary. At the first      
  Solidarity national congress in September-October 1981, Lech Walesa was     
  elected national chairman of the union.                                     
                                                                       
  On December 12-13, the regime declared martial law, under which the army and
  special riot police were used to crush the union. Virtually all Solidarity  
  leaders and many affiliated intellectuals were arrested or detained. The    
  United States and other Western countries responded to martial law by       
  imposing economic sanctions against the Polish regime and against the Soviet
  Union. Unrest in Poland continued for several years thereafter.             
                                                                       
  In a series of slow, uneven steps, the Polish regime rescinded martial law. 
  In December 1982, martial law was suspended, and a small number of political
  prisoners were released. Although martial law formally ended in July 1983 and
  a general amnesty was enacted, several hundred political prisoners remained 
  in jail.                                                                    
                                                                       
  In July 1984, another general amnesty was declared, and 2 years later, the  
  government had released nearly all political prisoners. The authorities     
  continued, however, to harass dissidents and Solidarity activists. Solidarity
  remained proscribed and its publications banned. Independent publications   
  were censored.                                                              
                                                                       
  Roundtable Talks and Elections                                              
  The government's inability to forestall Poland's economic decline led to    
  waves of strikes across the country in April, May, and August 1988. In an   
  attempt to take control of the situation, the government gave de facto      
  recognition to Solidarity, and Interior Minister Kiszczak began talks with  
  Lech Walesa on August 31. These talks broke off in October, but a new series,
  the "roundtable" talks, began in February 1989. These talks produced an     
  agreement in April for partly open National Assembly elections. The June    
  election produced a Sejm (lower house), in which one-third of the seats went
  to communists and one-third went to the two parties which had hitherto been 
  their coalition partners. The remaining one-third of the seats in the Sejm  
  and all those in the Senat were freely contested; virtually all of these were
  won by candidates supported by Solidarity.                                  
                                                                       
  The failure of the communists at the polls produced a political crisis. The 
  roundtable agreement called for a communist president, and on July 19, the  
  National Assembly, with the support of some Solidarity deputies, elected    
  General Jaruzelski to that office. Two attempts by the communists to form   
  governments failed, however.                                                
                                                                       
  On August 19, President Jaruzelski asked journalist/Solidarity activist     
  Tadeusz Mazowiecki to form a government; on September 12, the Sejm voted    
  approval of Prime Minister Mazowiecki and his cabinet. For the first time in
  more than 40 years, Poland had a government led by non-communists.          
                                                                       
  In December 1989, the Sejm approved the government's reform program to      
  transform the Polish economy rapidly from centrally planned to free-market, 
  amended the constitution to eliminate references to the "leading role" of the
  Communist Party, and renamed the country the "Republic of Poland." The Polish
  United Workers' (Communist) Party dissolved itself in January 1990, creating
  in its place a new party, Social Democracy of the Republic of Poland. Most of
  the property of the former Communist Party was turned over to the state.    
                                                                       
  The May 1990 local elections were entirely free. Candidates supported by    
  Solidarity's Citizens' Committees won most of the races they contested,     
  although voter turnout was only a little over 40%. The cabinet was reshuffled
  in July 1990; the national defense and interior affairs ministers--holdovers
  from the previous communist government--were among those replaced.          
                                                                       
  In October 1990, the constitution was amended to curtail the term of        
  President Jaruzelski. In December, Lech Walesa became the first popularly   
  elected President of Poland.                                                
                                                                       
  The Republic of Poland                                                      
  The Republic of Poland in the early 1990s made great progress toward        
  achieving a fully democratic government and a market economy. In November   
  1990, Lech Walesa was elected President for a 5-year term. Jan Krzysztof    
  Bielecki, at Walesa's request, formed a government and served as its Prime  
  Minister until October 1991, introducing world prices and greatly expanding 
  the scope of private enterprise.                                            
                                                                       
  Poland's first free parliamentary elections were held in 1991. More than 100
  parties participated, representing a full spectrum of political views. No   
  single party received more than 13% of the total vote.                      
                                                                       
  Since 1991, Poland has conducted five general parliamentary elections and   
  four presidential elections--all free and fair. Incumbent governments have  
  transferred power smoothly and constitutionally in every instance to their  
  successors. The post-Solidarity center-right and post-Communist center-left 
  have each controlled the parliament and the presidency since 1991. Most     
  recently, Poles elected Law and Justice (PiS) candidate and Mayor of Warsaw 
  Lech Kaczynski to a 5-year term as President. Kazcynski narrowly defeated   
  Civic Platform (PO) candidate Donald Tusk and was sworn in December 23, 2005.
                                                                       
  PiS was also the top vote-getter in September 25, 2005, parliamentary       
  elections. After coalition talks with runner-up PO collapsed, PiS alone     
  formed a minority government under Prime Minister Kazimierz Marcinkiewicz.  
  Frustrated by its inability to achieve its legislative program alone, PiS   
  formed a formal coalition government with Self-Defense (SO) and the League of
  Polish Families (LPR) in April 2006. In July 2006, Prime Minister           
  Marcinkiewicz resigned and was replaced by PiS party leader Jaroslaw        
  Kaczynski as Prime Minister.                                                
                                                                       
  GOVERNMENT AND POLITICAL CONDITIONS                                         
  The current government structure consists of a council of ministers led by a
  Prime Minister, typically chosen from the majority coalition in the bicameral
  legislature's lower house (Sejm). The president, elected every five years for
  no more than two terms, is the head of state and commander-in-chief of the  
  armed forces. The judicial branch plays a minor role in decision-making.    
                                                                       
  The parliament consists of the 460-member Sejm and the 100-member Senat, or 
  upper house. The new constitution and the reformed administrative division  
  (as of 1999) required a revision of the election ordinance (passed in April 
  2001). The most important changes were liquidation of a national list (all  
  deputies are elected by voters in electoral districts) and introduction of a
  new method of calculating seats (the modified St. Lague method replaced the 
  d'Hondt method, thus eliminating the premium for the top parties). The law  
  stipulated that with the exception of guaranteed seats for small ethnic     
  parties, only parties receiving at least 5% of the total vote could enter   
  parliament.                                                                 
                                                                       
  Parties represented in the newly elected Sejm are Law and Justice (PiS),    
  Civic Platform (PO), Self-Defense (SO), Democratic Left Alliance (SLD), the 
  League of Polish Families (LPR), and the Polish Peasant Party (PSL).        
                                                                       
  Principal Government Officials                                              
  President--Lech Kaczynski (PiS)                                             
  Prime Minister--Jaroslaw Kaczynski (PiS)                                    
  Deputy Prime Minister--Przemyslaw Gosiewski (PiS)                           
  Deputy Prime Minister and Minister of Finance--Zyta Gilowska (PO)           
  Minister of Agriculture and Rural Development--Wojciech Mojzesowicz         
  Minister of Transport--Jerzy Polaczek                                       
  Minister of Health--Zbigniew Religa                                         
  Minister of Science and Higher Education--Michał Seweryński                 
  Minister of Interior and Administration--Władysław Stasiak                  
  Minister of National Defence--Aleksander Szczygło                           
  Minister of Environment--Jan Szyszko                                        
  Minister of Culture and National Heritage--Kazimierz Michał Ujazdowski      
  Minister, Member of the Council of Ministers--Zbigniew Wassermann           
  Minister of Economy--Piotr Grzegorz WoŸniak                                 
  Minister of Justice--Zbigniew Ziobro                                        
  Minister of Construction--Mirosław Barszcz                                  
  Minister, Member of the Council of Ministers, Head of the Chancellery of the
  Prime Minister--Mariusz Błaszczak                                           
  Minister of Foreign Affairs--Anna Fotyga                                    
  Minister of Regional Development--Grażyna Gęsicka                           
  Minister of Marine Economy--Marek Gróbarczyk                                
  Minister of Sport and Tourism--Elżbieta Jakubiak                            
  Minister of State Treasury--Wojciech Jasiński                               
  Minister of Labour and Social Policy--Joanna Kluzik-Rostkowska              
  Minister of National Education--Ryszard Legutko                             
  Coordinator for Special Services--Zbigniew Wassermann (PiS)                 
                                                                       
  Ambassador to the United States--Janusz Reiter                              
  Deputy Chief of Mission--Woijciech Flera                                    
                                                                       
  Poland maintains an embassy in the United States at 2640 16th St. NW,       
  Washington, DC 20009 (tel. 202-234-3800/3801/3802); the consular annex is at
  2224 Wyoming Ave. NW, Washington, DC 20008 (tel. 202-234-3800). Poland has  
  consulates in Chicago, New York City, and Los Angeles.                      
                                                                       
  ECONOMY                                                                     
  The Polish economy grew rapidly in the mid-1990s, slowed considerably in 2001
  and 2002, and returned again to healthy growth rates in 2003. Poland's gross
  domestic product (GDP) grew at an annualized rate of 5.2% in the first      
  quarter of 2006. Faster growth has begun to reduce persistently high        
  unemployment, from nearly 20% in the middle of 2004 to 16.5% in May 2006.   
  Tight monetary policy and dramatic productivity growth have helped to hold  
  down inflation, which was 2.1% in 2005. Likewise, Poland's current account  
  deficit, which grew rapidly in the late 1990s, has since moderated to 1.4% of
  GDP in 2005. The 2005 budget deficit was 27.5 billion zloty, or 2.8% of GDP 
  in 2005, and the current government pledged to restrain the 2006 and 2007   
  budgets at 30 billion zloty.                                                
                                                                       
  Throughout the 1990s, the United States and other Western countries supported
  the growth of a free enterprise economy by reducing Poland's foreign debt   
  burden, providing economic aid, and lowering trade barriers. Poland graduated
  from U.S Agency for International Development (USAID) assistance in 2000 and
  paid the balance of its U.S.-held Paris Club debt in 2005. Poland officially
  joined the European Union (EU) on May 1, 2004.                              
                                                                       
  Agriculture                                                                 
  Agriculture employs 16.1% of the work force but contributes only 5% to the  
  gross domestic product (GDP), reflecting relatively low productivity. Unlike
  the industrial sector, Poland's agricultural sector remained largely in     
  private hands during the decades of communist rule. Most of the former state
  farms are now leased to farmer tenants. Lack of credit is hampering efforts 
  to sell former state farmland. Currently, Poland's 2 million private farms  
  occupy 90% of all farmland and account for roughly the same percentage of   
  total agricultural production. These farms are small--8 hectares (ha) on    
  average--and often fragmented. Farms with an area exceeding 15 ha accounted 
  for only 9% of the total number of farms but cover 45% of total agricultural
  area. Over half of all farming households in Poland produce only for their  
  own needs with little, if any, commercial sales.                            
                                                                       
  Poland is a net exporter of confectionery, processed fruit and vegetables,  
  meat, and dairy products. Processors often rely on imports to supplement    
  domestic supplies of wheat, feed grains, vegetable oil, and protein meals,  
  which are generally insufficient to meet domestic demand. However, Poland is
  the leading producer in Europe of potatoes and rye and is one of the world's
  largest producers of sugarbeets. Poland also is a significant producer of   
  rapeseed, grains, hogs, and cattle. Attempts to increase domestic feed grain
  production are hampered by the short growing season, poor soil, and the small
  size of farms.                                                              
                                                                       
  Pressure to restructure the agriculture sector intensified as Poland prepared
  to accede to the European Union, which is unwilling to subsidize the vast   
  number of subsistence farms that do not produce for the market. The changes 
  in agriculture are likely to strain Poland's social fabric, tearing at the  
  heart of the traditional, family-based small farm as the younger generation 
  drifts toward the cities. Nonetheless, dramatically increasing agricultural 
  exports to the EU-15 (38% growth in 2005) and payments to farmers from      
  Brussels following accession have enriched Polish commercial farmers and    
  dramatically increase support for EU membership in Poland's rural areas.    
                                                                       
  Industry                                                                    
  Before World War II, Poland's industrial base was concentrated in the coal, 
  textile, chemical, machinery, iron, and steel sectors. Today it extends to  
  fertilizers, petrochemicals, machine tools, electrical machinery,           
  electronics, and shipbuilding.                                              
                                                                       
  Poland's industrial base suffered greatly during World War II, and many     
  resources were directed toward reconstruction. The communist economic system
  imposed in the late 1940s created large and unwieldy economic structures    
  operated under a tight central command. In part because of this systemic    
  rigidity, the economy performed poorly even in comparison with other        
  economies in central Europe.                                                
                                                                       
  In 1990, the Mazowiecki government began a comprehensive reform program to  
  replace the centralized command economy with a market-oriented system. While
  the results overall have been impressive, many large state-owned industrial 
  enterprises, particularly the railroad and the mining, steel, and defense   
  sectors, have remained resistant to the change and downsizing required to   
  survive in an open market economy.                                          
                                                                       
  Economic Reform Program and Direct Foreign Investment                       
  The economic reforms introduced in 1990 removed price controls, eliminated  
  most subsidies to industry, opened markets to international competition, and
  imposed strict budgetary and monetary discipline. Poland was the first former
  centrally planned economy in central Europe to end its recession and return 
  to growth in the early 1990s. The private sector now accounts for over      
  two-thirds of GDP.                                                          
                                                                       
  In early 2002, the government announced a new set of economic reforms known 
  as the Hausner Plan, designed in many ways to complete the process launched 
  in 1990. The package acknowledged the need to improve Poland's investment   
  climate, particularly the conditions for small and medium-sized enterprises,
  and better prepare the economy to compete as a European Union (EU) member.  
  The government also aimed to improve Poland's public finances to prepare for
  eventual adoption of the euro. Though the government was able to enact only 
  portions of the Hausner Plan, those successes coupled with successful       
  monetary efforts to strengthen the zloty, have put Poland within reach of the
  National Bank's goal of Euro accession in 2008-2009.                        
                                                                       
  As a result of Poland's growth and investment-friendly climate, the country 
  has received over $85 billion in direct foreign investment (DFI) since 1990,
  with roughly $7 billion in 2004 alone. According to a recently publish report
  by Ernst and Young, Poland is tied with Germany as the most attractive      
  destination for foreign investment in Europe. The availability of cheap land
  and a large, relatively skilled labor force are among Polish strengths.     
  However, the government continues to play a strong role in the economy, as  
  seen in excessive red tape and the high level of politicization in many     
  business decisions. Investors complain that state regulation is not         
  transparent or predictable, and the economy suffers from a lack of          
  competition in many sectors, notably telecommunications.                    
                                                                       
  Foreign Trade                                                               
  With the collapse of the ruble-based COMECON trading bloc in 1990, Poland   
  scrambled to reorient its trade. As early as 1996, 70% of its trade was with
  EU-15 members, and neighboring Germany today is Poland's dominant trading   
  partner. Most of Poland's imports are capital goods needed for industrial   
  retooling and for manufacturing inputs, rather than imports for consumption.
  Therefore, a deficit is expected and should even be regarded as positive at 
  this point. Poland, a member of the World Trade Organization (WTO) and      
  European Union, applies the EU's common external tariff to goods from other 
  countries--including the U.S.                                               
                                                                       
  In the year after it joined the EU, Poland experienced an overall growth in 
  exports of 30%. This growth was not confined to trade among EU partners:    
  while exports to EU countries rose by 27%, exports to developing countries  
  rose by 46%, and exports to Russia rose an unexpected 77%. Poland's trade   
  balance continued to improve, with export growth significantly outpacing    
  import growth. Opportunities for trade and investment continue to exist     
  across virtually all sectors. The American Chamber of Commerce in Poland,   
  founded in 1991 with seven members, now has more than 300 members. Strong   
  economic growth potential, a large domestic market, EU membership, and      
  political stability are the top reasons U.S. and other foreign companies do 
  business in Poland.                                                         
                                                                       
  FOREIGN RELATIONS AND NATIONAL SECURITY                                     
  Poland became an associate member of the EU and its defensive arm, the      
  Western European Union, in 1994. In a June 2003 national referendum, the    
  Polish people approved EU accession by an overwhelming margin, and Poland   
  gained full membership in May 2004.                                         
                                                                       
  Changes since 1989 have redrawn the map of central Europe, and Poland has had
  to forge relationships with seven new neighbors. Poland has actively pursued
  good relations, signing friendship treaties replacing links severed by the  
  collapse of the Warsaw Pact. The Poles have forged special relationships with
  Lithuania and particularly Ukraine in an effort to firmly anchor these states
  to the West.                                                                
                                                                       
  Poland became a full member of the North Atlantic Treaty Organization (NATO)
  in March 1999 as part of the first wave of enlargement outlined at the July 
  1997 NATO Summit in Madrid. Poland's top national security goal is to further
  integrate with NATO and other west European defense, economic, and political
  institutions while modernizing and reorganizing its military. Polish military
  doctrine reflects the same defense posture as its Alliance partners.        
                                                                       
  Poland maintains a sizable armed force currently numbering about 140,572    
  troops divided among an army of 87,877, an air and defense force of 31,147, 
  and a navy of 21,548. Poland relies on military conscription for the majority
  of its personnel strength. All males (with some exceptions) are subject to a
  12-month term of military service. The Polish military continues to         
  restructure and to modernize its equipment. The Polish Defense Ministry     
  General Staff and the Land Forces staff have recently reorganized the latter
  into a NATO-compatible J/G-1 through J/G-6 structure. Although budget       
  constraints remain a drag on modernization, Poland has been able to move    
  forward with U.S. assistance on acquiring 48 F-16 multi-role fighters, C-130
  cargo planes, HMMWVs, and other items key to the military's restructuring.  
                                                                       
  Poland continues to be a regional leader in support and participation in the
  NATO Partnership for Peace Program and has actively engaged most of its     
  neighbors and other regional actors to build stable foundations for future  
  European security arrangements. Poland continues its long record of strong  
  support for UN peacekeeping operations by maintaining a unit in Southern    
  Lebanon, a battalion in NATO's Kosovo Force (KFOR), and by providing and    
  actually deploying the KFOR strategic reserve to Kosovo. Polish military    
  forces have served in both Operation Enduring Freedom in Afghanistan and    
  Operation Iraqi Freedom.                                                    
                                                                       
  Poland assumed command of a multinational division of stabilization forces in
  Iraq (MDN-CS) on September 3, 2003. Poland and its MND-CS partners have     
  worked effectively since then to stabilize south central Iraq while working 
  to train Iraqi forces to take over MND-CS responsibilities and operate      
  independently.                                                              
                                                                       
  U.S.-POLISH RELATIONS                                                       
  The United States established diplomatic relations with the newly formed    
  Polish Republic in April 1919. After Gomulka came to power in 1956, relations
  with the United States began to improve. However, during the 1960s, reversion
  to a policy of full and unquestioning support for Soviet foreign policy     
  objectives and anti-Semitic feelings in Poland caused those relations to    
  stagnate. U.S.-Polish relations improved significantly after Gierek succeeded
  Gomulka and expressed his interest in improving relations with the United   
  States. A consular agreement was signed in 1972.                            
                                                                       
  In 1974 Gierek was the first Polish leader to visit the United States. This 
  action, among others, demonstrated that both sides wished to facilitate     
  better relations.                                                           
                                                                       
  The birth of Solidarity in 1980 raised the hope that progress would be made 
  in Poland's external relations as well as in its domestic development. During
  this time, the United States provided $765 million in agricultural          
  assistance. Human rights and individual freedom issues, however, were not   
  improved upon, and the U.S. revoked Poland's most-favored-nation (MFN) status
  in response to the Polish Government's decision to ban Solidarity. MFN status
  was reinstated in 1987, and diplomatic relations were upgraded.             
                                                                       
  The United States and Poland have enjoyed warm bilateral relations since    
  1989. Every post-1989 Polish government has been a strong supporter of      
  continued American military and economic presence in Europe. As well as     
  supporting the Global War on Terror, Operation Enduring Freedom in          
  Afghanistan, and coalition efforts in Iraq, Poland cooperates closely with  
  American diplomacy on such issues as democratization, nuclear proliferation,
  human rights, regional cooperation in central and eastern Europe, and UN    
  reform.                                                                     
                                                                       
  Principal U.S. Embassy Officials                                            
  Ambassador--Victor Ashe                                                     
  Deputy Chief of Mission--Ken Hillas                                         
  Press and Cultural Affairs Counselor--Edward J. Kulakowski                  
  Political Counselor--Mary Curtin                                            
  Economic Counselor--Richard Rorvig                                          
  Consul General--Lisa Piascik                                                
  Management Counselor--Sara Drew                                             
  Agricultural Counselor--Ed Porter                                           
  Defense Attaché--Henry Nowak                                                
  Principal Officer, Krakow--Anne Hall                                        
  Counselor for Commercial Affairs--John McCaslin                             
                                                                       
  The street address and international mailing address of the U.S. Embassy in 
  Poland is Aleje Ujazdowskie 29/31, 00540 Warsaw, Poland; tel: 48-22-504-2000;
  fax 48-22-504-2688. The Consulate General in Krakow is at Ulica Stolarska 9,
  31-043 Krakow, Poland; tel: 48-12-424-5200; fax: 48-12-424-5100; and a      
  Consular Agency in Poznan is at Ulica Paderewskiego 8, 61-708 Poznan, Poland;
  tel: 48-61-851-8516; fax: 48-61-851-8966.                                   
                                                                       
  TRAVEL AND BUSINESS INFORMATION                                             
  The U.S. Department of State's Consular Information Program advises Americans
  traveling and residing abroad through Consular Information Sheets, Public   
  Announcements, and Travel Warnings. Consular Information Sheets exist for all
  countries and include information on entry and exit requirements, currency  
  regulations, health conditions, safety and security, crime, political       
  disturbances, and the addresses of the U.S. embassies and consulates abroad.
  Public Announcements are issued to disseminate information quickly about    
  terrorist threats and other relatively short-term conditions overseas that  
  pose significant risks to the security of American travelers. Travel Warnings
  are issued when the State Department recommends that Americans avoid travel 
  to a certain country because the situation is dangerous or unstable.        
                                                                       
  For the latest security information, Americans living and traveling abroad  
  should regularly monitor the Department's Bureau of Consular Affairs Internet
  web site at http://www.travel.state.gov, where the current Worldwide Caution,
  Public Announcements, and Travel Warnings can be found. Consular Affairs    
  Publications, which contain information on obtaining passports and planning a
  safe trip abroad, are also available at http://www.travel.state.gov. For    
  additional information on international travel, see http://www.usa.gov/     
  Citizen/Topics/Travel/International.shtml.                                  
                                                                       
  The Department of State encourages all U.S citizens traveling or residing   
  abroad to register via the State Department's travel registration website or
  at the nearest U.S. embassy or consulate abroad. Registration will make your
  presence and whereabouts known in case it is necessary to contact you in an 
  emergency and will enable you to receive up-to-date information on security 
  conditions.                                                                 
                                                                       
  Emergency information concerning Americans traveling abroad may be obtained 
  by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular   
  toll line 1-202-501-4444 for callers outside the U.S. and Canada.           
                                                                       
  The National Passport Information Center (NPIC) is the U.S. Department of   
  State's single, centralized public contact center for U.S. passport         
  information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service   
  representatives and operators for TDD/TTY are available Monday-Friday, 7:00 
  a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.           
                                                                       
  Travelers can check the latest health information with the U.S. Centers for 
  Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP
  (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give the
  most recent health advisories, immunization recommendations or requirements,
  and advice on food and drinking water safety for regions and countries. A   
  booklet entitled "Health Information for International Travel" (HHS         
  publication number CDC-95-8280) is available from the U.S. Government       
  Printing Office, Washington, DC 20402, tel. (202) 512-1800.                 
                                                                       
  Further Electronic Information                                              
  Department of State Web Site. Available on the Internet at http://          
  www.state.gov, the Department of State web site provides timely, global     
  access to official U.S. foreign policy information, including Background    
  Notes and daily press briefings along with the directory of key officers of 
  Foreign Service posts and more. The Overseas Security Advisory Council (OSAC)
  provides security information and regional news that impact U.S. companies  
  working abroad through its website http://www.osac.gov                      
                                                                       
  Export.gov provides a portal to all export-related assistance and market    
  information offered by the federal government and provides trade leads, free
  export counseling, help with the export process, and more.                  
  STAT-USA/Internet, a service of the U.S. Department of Commerce, provides   
  authoritative economic, business, and international trade information from  
  the Federal government. The site includes current and historical            
  trade-related releases, international market research, trade opportunities, 
  and country analysis and provides access to the National Trade Data Bank.   

 

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