Passport Poland : Your Pocket Guide to Polish Business, Customs and Etiquette 9781885073334

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PASSPORT Poland Passport To The World

Passport Argentina Passport Brazil Passport China Passport France Passport Germany Passport Hong Kong Passport India Passport Indonesia Passport Israel Passport Italy Passport Japan Passport Korea Passport Mexico Passport Philippines Passport Poland Passport Russia Passport Singapore Passport South Africa Passport Spain Passport Taiwan Passport Thailand Passport United Kingdom Passport USA Passport Vietnam

PASSPORT Poland Your Pocket Guide to Polish Business, Customs & Etiquette

Natalia Kissel

World Trade Press 1450 Grant Avenue, Suite 204 Novato, California 94945 USA Tel: (415) 898-1124; Fax: (415) 898-1080 USA Order Line: (800) 833-8586 http://www.worldtradepress.com http://www.globalroadwarrior.com E-mail: [email protected] “Passport to the World” concept: Edward G. Hinkelman Cover design: Peter Jones, Marge Stewart Illustrations: Tom Watson Editor: Jeffrey Edmund Curry Copyright Notice

© Copyright 2001 by World Trade Press. All Rights Reserved. Reproduction of any part of this work without the express written permission of the copyright holder is unlawful. Requests for permission or further information should be addressed to World Trade Press at the address above. Disclaimer This publication is designed to provide general information concerning the cultural aspects of doing business with people from a particular country. It is sold with the understanding that the publisher is not engaged in rendering legal or any other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Kissel, Natalia, 1947– Passport Poland: Your Pocket Guide to Polish Business, Customs & Etiquette /Natalia Kissel. p. cm. -- (Passport to the World) Includes bibliographic references (p. ). ISBN 1-885073-33-X 1. Business etiquette--Poland. 2. Corporate culture--Poland. Negotiation in business--Poland. 4. Intercultural communication. I. Title. II. Series. HD58.7.K528 1999 390' .009438--dc21 99–32548 CIP Printed in the United States of America

Table of Contents

Poland The White Eagle Overview Poland Quick Look ................................................... 6 1: Country Facts ..................................................... 7 2: The Poles ........................................................... 14 3: Cultural Stereotypes ........................................ 23 4: Regional Differences ....................................... 27

Business Environment 5: 6: 7: 8: 9: 10: 11: 12: 13:

Government & Business ................................. The Work Environment .................................. Women in Business ......................................... Making Connections ....................................... Strategies for Success ...................................... Time ................................................................... Business Meetings ........................................... Negotiating Styles ............................................ Business Outside the Law ..............................

31 35 40 44 46 52 55 60 62

Customs & Etiquette 14: 15: 16: 17: 18: 19: 20:

Names & Greetings ......................................... Communication Styles .................................... Customs ............................................................. Dress & Appearance ........................................ Reading the Poles ............................................ Entertaining ...................................................... Socializing .........................................................

65 67 72 76 79 83 86

Additional Information 21: 22: 23: 24:

Basic Polish Phrases ........................................ Correspondence ............................................... Useful Telephone Numbers ........................... Books & Internet Addresses ...........................

Poland

89 90 92 94

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Quick Look Official name Land area Capital Largest cities Official language People Population Annual growth Distribution Major religions

Republic of Poland 304,510 sq km Warsaw Warsaw, Krakow, Wroclow, Gdansk, Poznan, Lodz Polish 38.7 million 0% 62% urban, 38% rural Roman Catholic (95%), Protestant, Eastern Orthodox & Uniat, Jewish

Economy GDP (1998) US$145.0 billion Per capita GDP US$3,750 Growth rate 4.8% Foreign trade Imports US$43.9 billion Exports US$30.2 billion Principal trade partners EU, Russia, U.S. Currency Zloty (Zl), 1 Zl = 100 groszy Exchange rate US$1 = Zl3.65 Education and Health Literacy 99% Life expectancy Males – 68 years, Females – 77 years. Infant Mortality rate 13 per 1,000 live births

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POLAND Country Facts Geography and Demographics

On a map, Poland (officially the Republic of Poland) forms a rough square about the same size as the United Kingdom and Ireland combined. Poland is the largest country in a region that has been called Eastern Europe, but which the Poles prefer to call Central Europe. This reflects the fact that, if one were to measure from the western border of France to the Ural Mountains and from the tip of Norway to the Black Sea, Poland is roughly the geographical center of the European continent. The terrain of Poland consists of a flat plain with low mountain ranges (the Sudeten, Carpathian, and Tatras Mountains) encircling the country on the southeast. In an east-west direction, Poland is part of a continuous plain that ends at the foothills of the Ural Mountains in Russia. The name of the country is said to derive from a plains dwelling Slavic tribe of people who were called “Polanie.” The name literally means plains-dwellers.

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Crossing Poland from south to north is a navigable system of rivers and connecting canals. Major rivers include the Oder, which forms part of the western border with Germany; the Vistula, which runs for 1,047 miles through the heart of the country, and the Bug, a tributary of the Vistula, which forms part of the eastern border. All of the rivers drain into the Baltic Sea, Poland’s natural northern boundary. The Baltic Sea offers Poland the benefits of maritime commerce with other Baltic littoral states as well as about 524 miles of seashore to which many Europeans gravitate during the summer holidays. Unfortunately, although the sandy seashore beaches along the Baltic are clean, most of the waters have been badly polluted by the surrounding industrial economies. Poland’s nine port cities and its network of rivers and canals make the country an important north-south, as well as east-west, trade link. This is particularly so as the Baltic is opened to trade.

Geography is Destiny Poland’s present geographical location is quite advantageous for trade and commerce within the wider developing European market. The country’s location and terrain have unfortunately also contributed to a tragic history. No natural barriers exist to protect Polish lands on east and west. The terrain of plain, forest, lake, and meadow is generally flat and featureless. One can walk across a field or through a copse of trees and not know if one is in Poland or in Germany to the west or in Belarus to the east. Only the mountains of the southeast afford some protection. Without natural barriers, Poland has been open to many invaders. Not only have the armies of Aus-

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tria, Russia, and Germany trampled Poland, but Polish soil has been crossed by the French, Italians, Swedes, Huns, Mongols, and Turks. The country was once described by Napoleon as an ideal place for a battle. Sadly for Poland, history has confirmed his opinion. Until 1998, the country was divided into 49 provinces (called Wojewodstwo or Voivodships) that were further divided into local districts, both rural and urban. The Polish parliament long considered a consolidation of historical provinces. The final draft to reduce the present number to 12 provinces and 307 “powiaty” or counties was adopted during the government session on March 13, 1998. The core of Poland is the wide central plain comprising the regions of Wielkopolska (Greater Poland), Lower Silesia (Dolny Slask), Kujawy, Mazovia (from where the folk singers and dancers known as “Mazowsze” take their name), and Podlasie. The forest and lake zone of northern Poland includes the provinces of Pomerania (Pomorze Danskie), Kashubia (Kaszuby), Warmia, and Masuria. This is a popular vacation area of lake and forest. South of the central belt are the two big provinces of Little Poland (Malopolska) and the industrial province of Upper Silesia (Gorny Slask). Along the edge of the country are the mountain ranges and just north of the Tatras is another densely forested lower range of the Bieszczady (Beskid) Mountains.

Poland’s Westward Shift The Russian dictator Joseph Stalin helped “design” the present shape of Poland by the forcible acquisition of a large portion of eastern Poland during World War II. He later legitimized the land grab in the agreements that were made with the

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Western allies at Yalta and Potsdam. Poland was moved westward 200 kilometers (90 miles) from where it was located on maps prior to World War II. As a result of the territorial shift, many Poles were forced to leave homes, villages, and farms in the east and had to resettle in lands that were, in turn, taken from a defeated Germany by the Allied powers. This dislocation, although tragic at the time, has given Poland a more western orientation with some important strategic advantages for trade and commerce. Cities formerly known as Stettin, Breslau, Danzig, and Posnan that were under German rule before 1945 are now populated, owned, and governed by Poles. They are now known by their original Polish names of Szczecin, Wroclaw, Gdansk, and Poznan. The contours of Poland are nearly the same as they were when the country was formed in the 11th to 13th centuries. Poles regret the loss of their eastern lands, particularly, since many celebrated statesmen, heroes, and writers were born in these provinces. They include King Jan Sobieski III, Thaddeus Kosciuszko, Adam Mickiewicz, Henryk Sienkiewicz, and Ignaz Paderewski. From an economic perspective, the Poles improved their position by the loss. The eastern lands were a poor economic area, apart from some oil resources near Lwow, while the regained western provinces are rich industrial and fertile agricultural areas.

Climate The climate is temperate to continental, with cold winters and mild summers. The unbroken Polish plain presents no barrier to the Siberian winds carrying cold and snow from the East as well as rain and fog from the Baltic Sea. Much of Poland, including the capital Warsaw, experiences rain and fog for

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nearly eight months of the year, and even the mild summers are broken by frequent showers and thunderstorms. Annual rainfall varies from 50 centimeters (20 inches) in most of the country to a heavy 122 centimeters (48 inches) in the mountains. Be advised that winter can be severe in Poland (-10˚ C / 13˚ F), but there is usually a brief thaw in January. In the mountains the winter snows often stay until the end of April.

When To Go The best months for travel to Poland are May, June, July, August (which can be very hot), and early September. For those who want to combine business travel with some leisure activities, Poland often experiences a late summer (or grandmother’s summer as it is called) in September and early October. That is the time when Poles go out to the countryside for the annual gathering of mushrooms and when the hunting season is in full flourish.

Business Hours Polish businesses are normally open for eight hours a day with no lunch break. The workday is from about 8:00 A.M. to 4:00 P.M. A half-day on Saturday was the norm for many years, but some businesses have now changed to a five-day week with slightly longer hours. Banking hours are generally 9:00 A.M. to 3:00 P.M., with some variation on either side. Government offices open at 9:00 A.M. and close at 3:00 P.M. Invariably, when one needs to have a permit or a stamp put on some official documents, the office is just closing. For that reason and others, it helps to know someone or to have an expediter who knows how to get around in bureaucratic Poland.

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Food stores, which have been strongly affected by the new service culture, are now open on Saturday and even Sunday. In the major cities, some food stores are open twenty-four hours a day as the small shopkeepers try to compete with the new “hypermarkets” and malls. On weekdays, shops open as early as 7:30 A.M. and many do not close their doors until 8:00 P.M. Apart from the retail food stores, most shops open at 9:00 A.M. or 10:00 A.M. and close at 6:00 P.M. or 7:00 P.M. Poles do not take a long midday lunch break, if any. Instead they eat a light snack, usually a sandwich, at their offices at about 11 A.M. or at noon. They then have their main meal (obiad) at home after they leave work, which may be as early at 4:00 P.M. or as late as 6:00 P.M. Poles then have a late evening snack (kolacja). The kolacja ranges from a cup of tea and a pastry to a meal that may be nearly as substantial as the obiad (See discussion of meals and food under customs).

Holidays The following are the main public holidays observed in Poland New Year’s Day . . . . . . . . . . . . . . . Easter Monday . . . . . . . . . . . . . . . . Labor Day . . . . . . . . . . . . . . . . . . . . Constitution Day . . . . . . . . . . . . . . . Corpus Christi . . . . . . . . . . . . . . . . Assumption . . . . . . . . . . . . . . . . . . All Saints’ Day . . . . . . . . . . . . . . . . Independence Day . . . . . . . . . . . . . Christmas . . . . . . . . . . . . . . . . . . . .

January 1 Day after Easter May 1 May 3 In May/June August 15 November 1 November 11 December 25-26

Museums are open on Sundays but closed on Mondays. Most also stay closed on the day following a public holiday. Note should be taken that

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museums stop selling tickets a half hour before the official closing time. In addition, many Polish institutions are closed on “free Saturdays.” There are generally three such days per month, although there is no precise national coordination of these off-days. Since more than 75 percent of the Polish people are practicing Catholics, churches are often crowded on Sundays and on public holidays. Visitors who wish to view the art or architecture of a church are advised to go when services are not held. The major churches are open all day. However, in rural areas, churches are often locked except during services, which may be early in the morning or only on Sundays. The local priest often lives next door to the church and will, on occasion, open the church for visitors—a service for which a contribution is usually given.

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The Poles

Ethnically, Poles are part of the Slavic group of nations. Slavic peoples includes Bulgarians, Czechs, Slovaks, Serbs, Sorbs, Russians, and Ukrainians. According to a legend of the origins of Poland, three brothers (Czech, Lech, and Rus) went out to find new homes. They came to a fertile valley and Czech decided that he would settle there. The other two continued until Lech saw an eagle circling a plain, which then landed on a nest. He thought that it was a good omen and he would build a homeland on the plain below and so founded the city of Gniezno (the name means nest) —which became the first capital of Poland. Rus went further east to settle the lands known as Russia. Judging by geopolitical standards, Lech may have made the least attractive choice of the three.

The Crossroads of Europe After Russia, Poland is the most populous country in Eastern Europe, with close to 40 million people. Today, for the most part, the country is ethnically homogeneous—98 percent Polish.

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As a people, the Poles reflect their country’s location on the crossroads of Europe. There are tall light-haired Poles with blue eyes who look Scandinavian, as well as Poles with high cheekbones, slightly tilted dark eyes, and raven hair, who show that their ancestors had encounters with the Tartar hordes before they were stopped on Poland’s doorstep. Poles come in all sizes, colorings, and shapes, but on average they are fair complexioned, of medium height and build, and indistinguishable in most ways from their West European neighbors.

The Polish Character: Heart above Head In 1776, the American colonists who signed the Declaration of Independence pledged “their lives, their fortunes and their sacred honor” to the cause of independence. The words of the Americans and their cause could as well have been expressed by Poles as they have a long history of fighting for their country’s independence. From the 10th to the 20th century, the Poles have been renowned as valiant fighters, often against impossible odds. It should also be noted that the Polish generals Pulaski and Kosciuszko were instrumental in defeating the British during the American Revolution. (America’s historical debt to Poland even forms the basis of a wry Polish quip, “When America was fighting for independence we sent them two of our greatest military leaders, Kosziusko and Pulaski, and now they thank us by sending us two of their generals–General Motors and General Electric.”) The high values of honor and country have at times led the Poles to be reckless. Their bravery is well known, but it has, on occasion, taken the form of grand-standing—making a grand, albeit futile, gesture that has had negative consequences for themselves and for others. In the Warsaw military

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museum, which is next door to the Muzeum Narodowe (National Museum), there is a picture of a group of Polish officers on horseback charging German Panzer tanks at the outset of World War II. Knowing full well they had no chance to survive, the Polish cavalry charged the armored tanks because they had pledged to defend their country to the last. A Pole would not subscribe to the tenet, “He who fights and runs away will live to fight another day.” The Polish sense of “sacred honor,” that a Polish man should conduct himself as a czlowiek honoru (a man of honor), mandates that what a Pole does is honorable but not necessarily practical. Poles are not all heroes, but throughout their history, many have lived according to the values of God, country, and honor above all else. There have been many instances in history (like the cavalry charge mentioned above) where the Poles have conducted themselves with valor but at a dreadful cost. Because of this long history of valor and defeat, the Poles have earned the reputation as being touchingly brave, but also of being reckless and even obstinate (see Chapter 3 on stereotypes). Their sense of self-sacrifice cannot be denied and is best summed up in the refrain of an old Polish marching song: “We die for Poland. Poland will repay.”

A Pole-Vault to the Past To understand the Poles, it is necessary to know a bit of their history. History has an importance for Poles seldom matched by other nationalities. As a people, the Poles are devoutly proud of their cultural heritage and their ability to survive as a nation after centuries of war and control by foreign powers. They are also impressed by visitors that have taken the time and interest to learn about

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Polish history. By the late middle ages, Poland was the largest and best organized of the Slavic states, and its size nearly doubled again in the 14th century when Queen Jadwiga of Poland was married to Duke Jogailo of Lithuania to create a dynastic union. Ten years later, the Queen died, but the dynastic union of Poland and Lithuania lasted for more than two centuries. At its zenith, the unified Kingdom of Poland/Lithuania was one of the largest and most powerful in all of Europe. The Kingdom included a large swath of the present-day countries of the Ukraine and Belarus. Polish-held territory extended right up to the gates of Muscovy, as Russia was then known.

The Partitioning of Poland The constant struggle to fend off invaders coupled with domestic dissension among the Polish landowners and aristocrats (the Szlachta) weakened the country. Soon, stronger and more aggressive neighbors (Austria, Prussia, and Russia) were able to attack and slice up Poland into three successive partitions in the 18th century. The story of Poland from that point to the present is how the Poles have resisted foreign-imposed rule and how they managed to preserve their national identity.

Where is Poland? When Pope John Paul II returned to his native Poland in 1979, he asked a little girl at a gathering to show him where Poland was. In response, the child pointed to the ground. The Pope corrected her and pointed to his heart saying, “No, Poland is here.” For more than 250 years, Poland ceased to exist as a sovereign state or even a locatable spot on

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the map. But the Poles preserved the spirit of their nation, their language, and culture in their hearts wherever they went. Among those who have made important contributions to Polish culture as well as to the lands that took them in were political leaders (Kosciuszko, Pulaski, Pilsudski, and Sikorsky); poets and writers (Adam Mickiewicz, Henryk Sienkiewicz, Joseph Slowacki, Joseph Conrad, and Czeslaw Milosz); composers and musicians (Frederic Chopin, Karol Szymanowski, and Ignaz Paderewski); and scientists (Marie Sklodowska Curie). Some of them spent a good portion of their lives in exile, yet none of the émigrés and exiles lost the feeling of being Polish.

Look Homeward Poles Today, there are people of Polish descent living in almost every corner of the world and many come to visit the land of their origin. The Polish community around the world numbers about 10 million. Another 10 million could easily prove some Polish ancestry. Recent changes enacted in the repatriation law allow anyone with a Polish background the right to return and acquire Polish citizenship. If only two percent were willing to take advantage of their legal right to return, Poland's population could surge by a few hundred thousand. A massive influx of Poles is not likely, except from Kazakhstan in Central Asia where some 100,000 Poles still live years after they were transported as unwilling “tourists” during the communist era. The Polish government has met with a delegation from Kazakhstan to assure Polish expatriates that their repatriation remains an important part of Poland’s future.

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The Polish Language From the Polish partitions through the wars of the 20th century, two institutions have held the Polish nation together—the Polish language and the Roman Catholic Church. Unlike the Czechs, who had to virtually recreate their language after they regained their independence, the Poles never lost their language by adopting the language of their conquerors. The Polish language belongs to one of three divisions of the Slavic languages group. There are linguistic similarities with Bulgarian, Czech, and Ukrainian. The Slavic languages are also part of the greater family of Indo-European languages, of which English and French are also members. Polish is written in the Roman script, unlike Russian, Serbian, or Bulgarian, which use Cyrillic script similar to Greek. Cognates, foreign word borrowings and basic Indo-European root words, are an aid in recognizing the meaning of words, although the Polish spelling of these words may be slightly different. For example, komputer (computer), telefon (telephone), teatr (theater), doktor (doctor), and dentysta (dentist) are all easily recognizable for most European language speakers.

Language Assistance Poles are happy to have a foreigner try to learn their language, but it takes time, and most visitors do not have the time to master the complexities of Polish grammar. As a result, the language is not being spread except by virtue of the country’s birth rate and the valiant attempts by Polish communities outside Poland to teach it to children in cultural centers and summer camps. Luckily for foreign visitors, many Poles speak several European languages, a fact due to the recent and not so recent

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occupations of their land. A knowledge of several key Polish phrases and words, however, will allow a visitor to get around, and Poles appreciate any effort to speak Polish. Poles might smile at your pronunciation, but you won’t be derided.

The Polish Catholic Church Poland is comparable to Spain in that 95 percent of the population is Roman Catholic, although only 75 percent practice Catholicism. The Polish Catholic church has been and is an integral part of Polish society. Since the political state did not exist for many years, the Catholic church took over as the institution representing the people. Consequently, the Church has played an important role in supporting the people’s resistance to outside rule. Poland has never had the division between church and state that characterizes the Englishspeaking nations. It should be noted, however, that Poland’s parliament approved a new Constitution in 1997 to replace the communist-era charter. The new Constitution guarantees civil and economic liberties and free health care and education for the people. There is also a provision in the Constitution for a separation of church and state, but until the people vote in a national referendum, the provisions will not enter into effect.

The Peasants Unfortunately, every society has its less fortunate citizens, and the have-nots in Poland are rural farm people tied to the land. These agricultural workers account for about 30 percent of the population. There are some prosperous farmers, but, overall, agricultural workers comprise the most economically depressed group. Peasant income is

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one third that of the urban population, the amenities of life are fewer, and the educational opportunities are even less. Most are still locked into the state-subsidy system that has been so detrimental to 20th-century Polish economic development. It is the only system in living memory, and sadly the peasants have become like their old adage: “Frogs in the pond know nothing of the sea.”

The Polish Family The average urban family in Poland has one or, at most, two children. But rural families often have four or more children. The Polish family is an extended family unit of three generations that often live under the same roof. Polish families also include numerous “cousins,” though many of these cousins may be purely “honorary relatives,” having no blood ties to the family. The extended family relationships make up a social clan that also functions as a business network (see zalatwic sprawe below). An important fixture in the Polish household is the grandmother, who is the arbiter of morals and manners as well as the main child-tender. Since women generally outlive men, the widowed grandmother usually moves in with one of her children. Friction among families as to who will take granny in is sometimes an issue. However, the elderly are not farmed out to retirement villages and nursing homes, although some such homes do exist in Poland. The elderly are usually cared for in the family environment, as crowded as it may become.

Marketing Target: Young Poles The changing values of the younger generation are of concern to older Poles. The under-25 age

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group has become the focus of foreign and domestic businesses who want to sell their products to a group that has a high income potential. Around 30 percent of the population, or more than 11 million, are between the ages of seven and twenty-four, and more than 3 million are in the impressionable fifteen to nineteen age bracket where they begin to make buying decisions. This group is highly receptive to advertising. Their allowances of about US$50 monthly are small by western standards, but over a year adds up to US$2 billion nationwide.

Education Confers Status Poles have a strong tradition of valuing “culture” over money. Even those born in the postwar generation of the 1950s (the generation running the country today) look down their noses at what they term “zloty millionaires,” the nouveaux riche of Poland. For most Poles, education is the key to real status. The literacy level is very high in Poland, with 98 percent of Poles able to read and write. Their high educational level has attracted numerous foreign investors. Most foreign companies that employ Polish workers note their workers’ intelligence and capacity for learning. In Poland today, social advancement is linked directly to education. With each level of education, the social status of the individual is further advanced, more so than in other European nations. Entrance to one of the key universities—especially Krakow (a center of learning since medieval times) or Warsaw—is a ticket to a good career and higher social standing. Foreign business visitors are advised to make the most of their academic credentials. Those initials after your name will open doors.

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Cultural Stereotypes The Butt of Jokes Poles are Dumb For decades Poles have been the object of ethnic jokes in the United States and Europe that characterize them as unintelligent and inefficient. These jokes are generally puerile and don’t bear repetition here. However, as insulting as the jokes are, the Poles are having the last laugh. Since 1989, many state enterprises have been privatized and 2.5 million small private enterprises have been created. Poland is considered to be the most dynamic economy in Central Europe with an average yearly growth rate of 5 to 6 percent. Poland’s growing private sector now contributes more than 60 percent of the GDP. In a recent survey of 1,198 foreign investors who gave an opinion about Polish employees, nearly all praised the discipline, the quality and effectiveness of their work, and their capacity to learn.

La z y and Listless Poles Have No Initiative Poles are, for the most part, a very entrepreneur-

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ial people, but they like to do things their own way. They will often need a material incentive, but they also appreciate recognition of their achievements. The number of small businesses in Poland that have sprouted since independence attests to the Polish entrepreneurial spirit. Clothing, kettles, and gardening tools are part of a long list of products that are being produced in Poland for export. A flood of agricultural products has so alarmed the French that they have sought to prevent competing imports of Polish pork and meat products from entering into the EU market. Clearly the Poles do not lack initiative or the ability to seize an opportunity.

Hotheads Poles are Overly Emotional The Poles are often called romantic idealists and even emotional hotheads. Like the Japanese, the Poles value behavior that is considered honorable and celebrate those who have sacrificed themselves for high principles. They are therefore often daubed with the tar of being unrealistic, since such an ideal is often unattainable. Caring for people and showing you care is seen by Poles as a positive trait. This carries over into their business dealings. Poles still judge potential business partners by assessing their personal qualities. Because of this, Poles may take a long time to enter into a business deal, wanting to know what a prospective partner is like inside—not just what the balance sheet shows. The Poles also bear a tradition of gallantry. The noble gesture and sacrifice, the tradition of hand kissing, and other culturally conditioned habits that are termed “romantic” are ingrained in the Polish character. However, there is another side of Polish romanticism that is culturally more important than surface

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gallantry. Historically, it was in the 19th century “Age of Romanticism” that Polish culture-in-exile flourished. At that time, emotions and feelings held primacy and these were intertwined with the ideas of national destiny and the equality of individuals. Polish writers of genius, such as Mickiewicz, Slowacki, Krasinski, and Norwid, were all products of the Age of Romanticism that spread throughout Europe. The romantic writers did not separate their literary works from their polemical and political writings. This mix has carried on into 20th century Polish thought. The Poles see the exhibition of emotions as a sign of humanity, not a loss of control.

Trying To Forget the Past Poles are Anti-Semitic The accusation that Poles are anti-Semitic opens up a delicate area that has a long history. Poland is a homogenous nation, but in a country in which a majority are unified by a religion and ethnicity, any minority is bound to feel discrimination, even if it is only through being ignored. Many visitors to Poland are returning exiles who come to see family, or they are third- and even fourthgeneration expatriates who seek to revisit the land of their origins. This includes visitors of Polish origin including Polish Jews, for whom Poland was the land of their parents and grandparents as well as the Holocaust. Although Poles suffered along with Jews under the Nazis, there are Poles who would like that dark chapter of World War II closed. This has stimulated the accusation that Poles are anti-Semitic. Some Poles have spoken in favor of not maintaining the death-camps as museums and covering and replanting those areas. Added to this is an ongoing discomfort among Poles about the war period, which has been inflamed by

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some strongly voiced statements published in the West regarding Polish attitudes to WWII. This direct attack on the Poles has raised protest because one in every six Poles lost relatives to the Nazis and many have aged parents who fought side by side with Jews in the Warsaw uprising. The subject of the war will take time to resolve and is best avoided by visitors.

Drunkards Poles are Unstable Alcoholics Poles are convivial and hospitable. Part of their cultural tradition is inviting people to share their hospitality, which includes much eating and drinking. Consumption of alcohol was not perceived to be as great a problem until the postwar period. Poles lived under an oppressive communist system and a tradition of tight political control for forty-five years. Alcohol was seen as a release, and it was also a symptom of the social decay of Polish society during that time. In all sectors of society, Poles do drink an inordinate amount, even by European standards. However, as the economic prosperity of the country increases, the consumption of alcohol is decreasing. Even so, wodka is still a constant. A bottle of vodka is produced as soon as a visitor comes in, and it is not stoppered until the bottle is empty. Poles say defensively that heavy drinking is a part of their culture, but the social effects are admittedly disturbing and disruptive. The Polish Committee to Fight Alcoholism estimates that 15 million Poles drink to excess, that 1 million can be classified as alcoholics, and that 1/2 million require hospital treatment. It is said that before the war vodka was one of Poland’s attractions but never one of its problems.

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Regional Differences Diverse Homogeneity

Because of the nearly homogenous nature of Poland today, ethnic minorities—Belorussians, Germans, Jews, Lemks, Romany, Lithuanians, Slovaks, and Ukrainians, who make up only 1 percent of Poland’s people—are feeling it necessary to assert their cultural differences. They are setting up separate schools and centers of worship, be they Lutheran, Eastern Orthodox, or Jewish. For example, a Movement for Silesian Autonomy has recently sprung up in an area that was for a long time under German rule. The Silesians do not feel they are German, nor do they feel fully Polish. The local language, a hybrid of Czech, German, and Polish, is considered comic by Poles. But to the Silesians the language is culturally necessary due to a feeling of oppression within the Polish mainstream. Another group that does not exactly fit within the Polish-Catholic mainstream is the Kaszubs, a Slavic-language community of a few thousand who live in the eastern province of Kaszubia. Similarly,

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the Lachs and Lemks, two small Slavic groups who claim they have a language and culture different from Polish, want to preserve their cultures.

Clothes Make the Group For the most part, however, ethnic and regional differences are disappearing in Poland. It is only at festivals and weddings that the people wear their traditional costumes. The rural areas, particularly the mountain regions, still remain repositories of Poland’s folk traditions and arts. City-dwelling Poles often keep the costumes of their grandparents in storage chests and hand them down from one generation to another. Polish children often wear these costumes at national celebrations and in school pageants and parades. At one time, each region of Poland had its own distinctive costume. Many of the folk songs and dances have been preserved by the internationally well known folk dance troupes of Slask and Mazowsze. The boys and girls that are chosen from the thousands who apply are trained in the folk dance traditions and music of the different Polish regions and their costumes are representative of many folk legends and stories. Regional differences that were caused by the 18th to 20th-century foreign occupations of Poland crop up in opinions that the Poles retain to this day. For example, the Gorale (mountain folk) are considered to be naive yokels, the hillbillies of Poland. The people of Lodz (formerly a multiethnic textile center) still have the reputation of being somewhat grasping and money-hungry, and Poznan natives are considered straight-laced martinets reflecting the strong German influence that existed in the region for many years. The once prominent regional characteristics

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have disappeared because of war and postwar dislocations, just as the once strong class distinctions have changed for the same reason. At one time, it was considered beneath the Polish gentry (the Szlachta) to engage in commerce—which is why Jews and foreigners (Germans, Austrians, Swedes) were the traders, businessmen, and artisans in pre– World War II Poland. Today, education and ability count for more in Poland, not family origins as was the case in the past. But there is some snobbery behind urban Poles’ desire to be included in the group called the “intelligentsia,” which had its historical roots in the class of landed gentry.

Polish Society Today The Polish population today is not split along regional lines as much as it is split along urban-rural divisions, with about 62 percent of the population living in cities and towns and 38 percent living in rural areas. The category of “peasants” covers all rural dwellers even if they are not farmers. Workers defines the largest group of Poles—everyone who works for wages—whether in mining, manufacturing, or service trades. The third social category is covered by the term “intelligentsia.” Intelligentsia is a difficult term to explain because the word has political and social connotations. In the time of the Polish partitions, it was used for those who were educated and born wealthy. Today, intelligentsia generally covers all educated people—those who earn a living by virtue of their knowledge and mental skills—including doctors, lawyers, engineers, writers, university professors, and artists. But intelligentsia also means a civilized way of behavior and a cosmopolitan outlook. The

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English word “gentility,” which conveys not so much a social class as an outlook on life and way of thinking, can also be used to describe this group. Whatever its definition, the prestige of the cultural intelligentsia is still very high in present-day Poland. In the Royal Castle of Wawel in Krakow, the poets Adam Mickiewicz and Juliusz Slowacki have been accorded burial next to the great kings Jan Sobieski and Casimir the Great, showing how highly Poles value two of their greatest writers and thinkers.

5

Government & Business

Since 1989, Poland has been a democratic country. Parliamentary elections were held in 1998 to elect a new government, the sixth in eight years. The present governing system is a cross between the U.S. system and the European parliamentary system. The country is governed by a bicameral parliament. The seat of authority is a Council of Ministers headed by a Prime Minister who represents the majority of deputies in parliament. Poland also separately elects a president, who is the Head of State and has the power to veto legislation passed by Parliament.

The Economy Since 1991, Polish economic advances can be summed up in the following way: high growth with increased problems. The most dangerous tensions for the economy occurred between the government’s wage liabilities for government-sector employees and their coverage. Tensions were also caused by inflation that resulted in higher costs of consumer necessities which led to pay increases that led to more inflation. Another problem has been a persis-

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tent balance of trade deficit. On the bright side, industry was characterized by high productivity and profitability. The public sector of the economy, on the other hand, is financed from the national budget and continues to be a major problem area.

Growing Pains Poland is still in the midst of a difficult economic transition period from a centrally planned socialist economy to a market economy. Budgetary resources remain thinly spread. Because it was mired in socialism for so long, Poland has many problems related to that period. There is still much in Poland that gives it an appearance of being a third world country—poor roads, impossible telephone communications, inadequate housing, and rust-belt factories. The Poles are very sensitive about being thought of as “an emerging market,” and they often point out that they have been, and are, part of mainstream European civilization. They are determined to integrate with the European Union.

A Rush to Private Enterprise Before 1990, Poles carried on an underground economy in which they traded services and made business deals that were officially prohibited. Although small private retail businesses and some service establishments were allowed, any largescale private business activity was designated as criminal “speculation” or “profiteering.” This dissuaded all but the most daring Poles. As soon as free enterprise was allowed, many Poles threw themselves into creating private businesses. In the first wave of economic reforms that began in 1990, hundreds of thousands of former

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Polish workers from failing state enterprises took the opportunity to go into business—to buy, sell, and trade. Out of that first wave, a group of Polish “entrepreneur” millionaires has emerged, although the transition to a full market economy has not been completed.

The Investment Climate Poland’s law on economic activity (which allows extensive foreign participation in Polish business development) is one of the most liberal in developing Europe. Under the law, which was amended in December 1989, foreign-owned enterprises and joint-ventures with foreign participation are allowed more favorable taxation and operating conditions than those enjoyed by Polish-owned enterprises. In 1989, the Foreign Investment Agency was established with a view to promoting and supervising foreign investment in Poland. A year later, the agency has registered more than 800 joint-ventures and foreign-owned businesses.

Where to Invest Joint ventures between foreign firms and Polish firms are being negotiated in all industry sectors, including automotive, construction, consumer goods, food, gas and oil, power, telecommunication, and tourism. Poles are trying to jump into the capitalist world themselves, but restructuring the country requires a great deal of foreign investment. So government trade missions and the commercial consulates regularly showcase Polish products and solicit foreigners interested in investing in Poland. There are few restrictions on the type of business activities in which foreign business can

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engage. Foreigners can invest in all branches of industry, including agriculture, manufacturing, services, and even defense. The Polish government has designated a number of sectors, including food processing, construction, environmental protection, and pharmaceutical production as priority areas of investment. These areas will offer the greatest benefits for foreign investors.

6

The Work Environment

In spite of the progress made by Poland over the last decade, Poles still face difficulties in the transition they have to make to a market economy. Many Poles still have to “moonlight” to make ends meet, and some will even take on three jobs. But, as a people, they can now enjoy the freedom to decide their own fortunes. Poles had no such choice in the past. Because of their history, the Poles have become somewhat resistant to outsiders coming in to tell them how to conduct their affairs. The Poles like partners but not orders. Although Poles recognize that they can learn from Western businesspeople, they are at times resistant to adopt fully the recommendations of foreigners. In addition, some still feel that if what they have now works, why change it? Continuous improvement and quality control is not yet a mark of the Polish industrial and business mentality.

Office Politics The business office environment also needs retooling. More than one meeting of foreign businessmen in the office of a Polish executive has been

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interrupted by a barrage of telephone calls as well as by a stream of overly inquisitive clerks. The abilities to control claims on the time of upper management and to delegate less important tasks to subordinates are not yet fully understood by the upper echelons of Polish management. In the past where the state paid workers to concentrate on quantity of output rather than quality, there was a tendency to look for technical solutions to raise output rather than improve product quality. This tendency is still in effect today. In addition, many businesspeople think that infusions of capital will solve all problems. Unfortunately, bad business habits and attitudes tend to survive infusions of capital in Poland. Although a definite service-oriented culture is growing, foreign visitors can still encounter surliness and indifference in many service establishments—from banks to bars to bathhouses.

Job Loss Fears For many Polish workers, the coming of capitalism was a rude awakening. Growing unemployment is a consequence of major downsizings as factory managers seek to cut costs. The accompanying job insecurity has been a spur to a new found Polish industriousness. The economic lessons that had to be learned have hurt many workers and unemployment ran as high as 13.5 percent in 1996. (It has since fallen to a still formidable 10.6 percent.) In 1998 there were 1.85 million Poles unemployed, but that doesn’t take into account many of the peasants, who are barely subsisting. Nor does it include those who are not registered as workers and those who work in the fairly extensive “underground economy” left over from the communist era.

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Polish Labor: High Quality, Low Costs Job security is very important to Poles. Many are afraid that jobs will be lost when local companies are taken over by foreigners and restructured. They look at the massive layoffs announced in Western countries—of 10,000 at a time—and do not want that to happen to them. Union leaders, not surprisingly, have been in the frontlines of those who warn of massive lay-offs when Polish companies are bought up by foreigners demanding new efficiencies. In spite of the communist-era work ethic carryovers, the Polish labor market is quite attractive. The quality of Polish workers is high and labor costs are low (the average monthly salary is about US$300/Euro318, although salaries are rising). The official minimum monthly wage is about Zl. 410 (US$127/Euro135). Beyond the minimum, wages are negotiated between employer and employee when not already defined in a collective labor agreement. The stumbling blocks in the attractive labor picture are these same collective labor agreements. Polish unions are strong and militant. Some businesses have come up against the unions’ efforts to limit hours of work and to set other conditions that cut productivity. The “solidarity” of unions is formidable and deeply held. Thus far it has not tarnished Poland’s economic growth, but it has put limits upon it.

Training Managers A ticklish area is the management of workers and the worker/foreign investor relationship. Most foreign concerns have found it best to hire and train a local Polish manager. Austrian, Swedish, and German business owners tend to intervene more in

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their acquisitions, while Americans and the Dutch seem inclined to leave more operational decisions to local control. In the services sector, especially in finance, there is a greater proportion of expatriate managers, which has been a source of local resentment. But as more Poles are trained in finance and banking, they often replace expatriate foreign managers. If a foreign business wishes to bring in its own employees, it needs to obtain “certification of permanent residence status” for them. This is arranged through the local police station and involves filling out a number of forms. Foreign employees must be paid in zloty, but may apply for a foreign exchange permit to convert their wages to foreign currency to take out of Poland. The government does allow for repatriation of profits by the business itself. The continual fears of massive layoffs are somewhat mitigated by the labor regulation that requires an employer to give compelling reasons for terminating an employment contract. Staff must be given two weeks notice if they have worked less than six months, one month notice for over six months, and three months notice for over three years. The training of managers has become an important consideration for new businesses. Some international firms prefer to train younger Poles rather than retrain older managers. This has understandably caused resentment among some senior workers. Since some of the elder managers have friends in the Parliament, there is some pressure not to sell off state-owned enterprises to foreign concerns.

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Keeping Good Workers Many foreigners send their new employees overseas to learn Western business processes and practices. However, the tight job market for trained managers has allowed some Poles to leave jobs after this expensive training period and set up their own businesses or join other firms. Job-hopping and poaching by competitors has become part of the business landscape and employers are finding that good managers are expensive to keep. High salaries, on the other hand, are not the only solution to keeping staff even when noncompete clauses are included in labor contracts. Polls indicate that although high wages are an incentive, career prospects and the office culture rank higher. Poles are most attracted by nonsalary incentives such as health benefits, life insurance, a good pension plan, and even loans to buy an apartment or build a house. One foreign firm decided to rebuild its office interiors on a U.S. model. Unfortunately, the practice of having open cubicles with glass partitions was totally unacceptable to the Polish employees who were used to having office privacy. Some left as soon as the new offices were constructed, while others took it upon themselves to plaster the glass partitions with posters and pictures to furnish the privacy they felt they needed. Caveat employer!

7

Women in Business

There are positive and negative aspects to being a woman in Poland. On the one hand, the old-world traditions of courtliness and respect toward women prevail in both social situations and work circles. From the courtly hand-kissing, to men offering women seats in crowded public transportation, to helping older women on and off the trams, the advantages are plain. On the other hand, there is a down side. In social situations, Polish women are still expected to defer to men. In business meetings, they rarely take the lead, even though the men will stand up when a lady enters the conference room. Poland is a bastion of male dominance and the inequality of the sexes is obvious throughout society. There is a growing women’s liberation movement in universities, but it is very recent. The equality of sexes is mainly discussed in intellectual circles by female professors with their students.

An Air of Change Women in Poland do hold high positions as government cabinet officers, architects, office managers, and professors and are represented in almost

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every other profession. There is a marked imbalance, however, of men to women in the highest level of all categories except perhaps in the arts. This situation is changing very slowly, and in the countryside a woman’s place is still in the home. The phrase dobra gospodyni kiedy pelno w skrzyni (a good wife is a full cupboard) is very much in practice outside of the cities. The credibility of women was given a boost by Hanna Suhocka, who held the high position of Prime Minister in the early 1990s. It was reinforced when Hanna Gronkiewicz-Waltz, president of the National Bank of Poland (NBP), was chosen by the Sejm to serve a second term. But there are still only a handful of women deputies in the Polish Parliament and in the higher echelons of banking and business. Women hold mostly menial and low-paying jobs; cleaning offices, sweeping the factory floor, and as nurses, waitresses, cooks, and servers in cafeterias and other retail food establishments. Nearly all Polish women work outside the home but they also carry on the traditional functions of food shopping, cooking, cleaning, and child care. Few can afford to have outside help, but many rely on their mothers or elderly female relatives to help out with child care and housekeeping while they are at work.

Education is the Key Polish women have equal access to higher educational institutions in Poland, and there is an indication that their presence in higher levels of business and government will increase. This is particularly true since many members of the younger generation appear willing to accept women in positions of power. At present though, the glass ceiling is much thicker at Polish corpora-

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tions than it is in the West. Male-female office relationships are more formal than in the United States and the European Union. Rarely would the Polish secretary of a businessman be on a first name basis with her boss. The same would hold true for the male doctor and female nurse. If a foreign businessmen is invited to a restaurant by his Polish counterpart, the wife is hardly ever asked to join the party. Consequently, a visiting businesswoman may find herself the only female in a group. She should also expect more differences in personal relationships than she is accustomed to at home. For example, it is still considered somewhat forward for a woman to go up to a man to ask for directions—Polish men may take it as a sign to begin a flirtation.

Female Bosses Polish men are not accustomed to having to report to a woman, particularly so in factories where the attitudes of blue-collar workers are even more chauvinistic than in management. Many women are assembly line and production workers, but few are heads of enterprises except where women have traditionally been managers as in the dairy industry and the retail sector. In government and big business, Polish men sometimes use their wives and secretaries to handle those whom they wish to avoid at social settings. The male bosses are then free to negotiate or speak with those they feel are important or equal to them. It is not unusual for a visiting businesswoman to find herself introduced to and then surrounded by the wives of businessmen. These gobetweens will engage her in conversations completely unrelated to her business. Breaking free

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may prove difficult. Although drinking is the main form of socialization of Poles, a visiting businesswoman would not be invited to go drinking with the group after business negotiations. Company can be mixed at parties and in restaurants, but men drink with men. Visiting female CEOs and company presidents must be prepared to allow a trusted male subordinate to participate in these often important afterhours meetings.

8

Making Connections Wheel & Deal a la Polonaise

Bureaucratic regulations are a constant annoyance in Poland, but you can usually get around in the Polish system if you remember to concentrate on developing relationships and not developing the deal. Of course, it helps to have someone who understands how to work the system, or as the Poles say zalatwic sprawe. The Polish expression zalatwic sprawe literally means to organize affairs or, more colloquially, to wheel and deal. It is an elaborate tradition that has its own etiquette that was developed in the communist era in order to circumvent the system and to obtain goods that were in short supply. It is based on establishing relationships and doing “favors” for others who are then obligated to help you. The American expression, “You scratch my back and I’ll scratch yours,” and the Japanese concept of honoring obligations and saving face both enter into the concept of Zalatwianie. Money can be a part of the process, but it is not necessary to “grease palms.” The hierarchical nature of Polish business and

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social relationships also affects how and with whom you can zalatwic sprawe.

The Echelons of Connectivity Not everyone in Poland has the same degree of access to connections. For example, you can ask an equal directly for a favor or to use his connections to help you, but you cannot ask a superior. A direct request for favors is only targeted at those within your social circle (zrodowisko), which is why Poles have developed extended family connections. In asking a favor indirectly from someone who is higher on the social scale, you have to first do something for that superior making him obligated to you. It can be as small a favor as working overtime or coming in early. Once the favor is completed, a favor can be asked. In formal business meetings, it is not likely that anyone would need to zalatwic sprawe, but in a one-to-one relationship it may arise. For foreign visitors, being asked by someone to convey a message to a relative living in the visitor’s country, or asking a visitor to send a pair of western cowboy boots to the host’s son comes under Zalatwianie. This is not directly related to the business at hand but negotiating with Poles often has implications beyond the formal business setting. Note: There is something of “the godfather” relationship in patriarchal Poland that enters into the practice of Zalatwianie. It is not easy to know the subtleties unless one has lived there for some time.

9

Strategies for Success Helping Poles Helps Business

Foreign firms that have been successful in Poland emphasize their contributions to the Polish society and economy. A good public relations plan is a basic starting point if a foreign company does not wish to appear to be exploiting an emerging economy. Foreign firms may wish to contribute to the arts, sponsor sporting events, or even endow business programs at Polish universities. All of these will let the Polish community know that your goals are long term and mutually beneficial. Though there are few hard and fast rules for approaching the Polish market, there are some guidelines that could be helpful in initiating a business relationship.

Guidelines for Success Travel first. Make an initial reconnaissance trip to Poland. Before you even contemplate doing business with anyone there, it is good to get a feel for the country, the people, and the business climate. If contact was initiated in your home country by a

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Polish firm, it is useful to see that firm on their own turf. Whether buying from, selling to, or investing in, it is wise to see the product, purveyor, or prospect in their home environs. Find a partner. In Poland, it is best to find a partner in setting up a business. Buying a newly privatized concern and restructuring it is an expensive proposition and the valuation of the concern prior to investing is difficult. Consequently, the joint-venture is the most usual way of doing business, for both large and small companies. Finding a partner is not easy. No single comprehensive bank of information exists for foreign businesspeople looking for Polish partners. There are, however, public and private sector agencies that can be helpful. Among the institutions that provide help in making business contacts are: the Polish Foreign Investment agency (PAIZ), the Polish Chamber of Foreign Commerce, and the Warsaw branch of the UN Industrial Development Organization (UNIDO). They all maintain lists of offers from Polish companies interested in forming joint-ventures. In addition, agencies from your home government will most likely maintain an “opportunity database” with investment project proposals registered by Polish companies (see Chapter 24: Books and Internet Addresses). A second tier of helpful organizations are overseas Polish business and social organizations. Many international consulting and legal firms have set up shop in Poland and a number specialize in helping to find potential partners for business alliances. Look before you leap. Due diligence (the complete investigation of the financial status of business and of its management) is necessary before negotiating with prospective business partners. This is not always an easy task. One of the difficult

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problems is that Western accounting practices and financial statements are not something in which the Poles are well versed. Consequently, balance sheets may not be of the same standard as those in Western industrial countries. In Poland, there are many managers who have never produced a business plan or a thorough profit-and-loss statement. Although the major international accounting firms have all set up offices in Poland, it does not mean that the business you are dealing with uses their services or knows how to present its financial statements. Consequently, foreign businesses often use the services of international investigative firms who are experienced in ferreting out information that is not easily obtainable. A background check on individuals is a specialty of such firms as Kroll International and Parvus who have extensive experience in Eastern and Central Europe. Get a good lawyer. Presumably, as a business your firm already has legal counsel. However, if it is a small firm, your solicitor or attorney may not be knowledgeable about the legal system of the country in which you expect to do business. In the area of contracts, Poles are finding their feet, so it is wise to use a law firm that has worked in Poland, or one that has offices there. Your lawyer will need to know Polish business practices, regulations, and requirements to draw up a contract that will stand up in Polish courts. Whether one is a buyer, seller, or investor, a lawyer based in that country has better contacts than your domestic counsel may have. Legal advice for foreigners is also obtainable through the Lawyers’ Group (No. 40) in Warsaw and the Department of Legal Affairs of the Polish Chamber of Foreign Trade. Use all contacts. With the growing number of firms that are doing business in Poland, it is helpful

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to gain as much knowledge as possible at the reconnaissance stage. Contacting other private businesspeople and representatives of firms who have had experience operating in Poland is extremely helpful. They have experience on the ground and you can use it. Don’t try to reinvent the wheel. The whole network of trade associations and chambers of commerce should be used. An excellent source of advice and information is the Chamber of Foreign Investors (formerly known as INTER-POLCOM). This is an independent interest and lobbying group for foreign businesspeople in Poland. The Poles have also created a Polish Promotion Program designating “Reliable Partners” (Solidny Partner). This is a list drawn up by a group of business activists, bankers, and journalists and a representative of the Polish Investment Agency. The aim is to facilitate the arrangement of business contacts according to criteria of reliability and trust. More than 200 private enterprises have announced they would contribute business documents in an effort to list reliable companies that honor their agreements. Have a feasibility study made. Although your accountants and lawyers will provide the background information you need, it is useful to be informed about compliance requirements, export-import regulations, potential environmental hazards, and the financial factors involved. If all indicators are positive after the feasibility study, then move to initiate contact with the prospective business or partner. Initiate contact. Initial contacts, if they have not been made earlier, are usually formal and made by letter. Make sure you have the letter translated into Polish. Send a packet of information in advance. It

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allows your prospective partner to study the materials before you meet. It is better not to bring informational or promotional materials with you for viewing to the first meeting as it will bog down exploratory discussions.

The First Meeting. In a case where the business contact was initiated from Poland, the first substantive meeting should be held in your home office, as you can more easily control the meeting on your own turf. There are situations in which the advice of your government may be needed. By setting up the meeting on your home ground, any proposal for financing or for investment by your firm can be more easily handled with financial institutions in your home country. It is also useful for the Polish business to tour your facility or business since Poles are in the learning stage of a market economy, and their businesspeople are eager to learn from foreign partners. Note: Keep in mind that overseas travel may be an enormous expense for your Polish counterparts. Such expense may unnecessarily raise their expectations of cutting a deal quickly.

Establishing a Base Once you have passed all of the bureaucratic hurdles in setting up a business in Poland, other problems may surface. Poland still suffers from an acute shortage of residential housing and office space. The total supply of office stock in Warsaw is estimated at around 2.6 million square meters, but only a small percentage is considered suitable for international firms. Less than 1 percent of highquality premises are currently available. In addition, property laws place restrictions on

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foreign ownership, so offices are taken on the basis of a long-term lease. (Foreign companies, including Polish-registered firms that are more than 50 percent foreign-owned must apply for permission from the Ministry of the Interior to own property.) Typical lease lengths in Poland are from three to five years. Businesses can get help in locating rentals through municipal or provincial officials and government agencies that are designed to help in this respect. In Warsaw, office and residential rents are the highest in the country, while the other major cities vary, depending on the business. Many businesses prefer to get offices privately through advertising or through private contacts.

10

Time

The clocks that formerly stood at Warsaw tram stops have been lovingly restored after thirty years of disrepair. Unfortunately, the restorations have been only cosmetic and the time mechanisms often malfunction. That could be a metaphoric description of Poland’s attitude toward time. Poles have what could be called a very relaxed approach toward time. They are always late, but they will charmingly explain that is because of outside forces over which they have no control. They will set a time for a meeting, and you are expected to be there on time. Your Polish counterpart, however, will inevitably be delayed by a last minute call from his boss, by traffic delays, or by some other force majeur (or mineur!). Poles expect those that they deal with to be understanding and this extends to punctuality. Poles are eager to please, and their eagerness often makes them take on too much. As a result, they cannot keep up with schedules or deadlines. The idea of allocating a set amount of time for a task is foreign to the Polish sensibility. A Pole will not fit his task into a tight time span, he will instead expand the time span to fit the work. Often, he will

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take on too many tasks, get bogged down in the process of working on all of them, and not finish any of them.

Meetings, Meetings Every where Since the workday is long, Poles try to break up the time by having meetings, about anything and everything, as a distraction. The office cleaning women have meetings, and union meetings are called over small and big matters alike. One of the problems for foreign-managed companies is to reduce the time spent in meetings. It is not uncommon for Poles to be late simply because one meeting ran over into the time period of another meeting. In personal meetings Poles are prompt (within five or ten minutes or at most a half an hour). You may, however, find that your meeting has gone over the time you have estimated it would go. That is because the Poles have a tendency to go off on tangents and allow for all opinions to be aired. Also, when meeting with Poles, do not expect to leave immediately after the formal close of the meeting; small-talk will inevitably go on for at least five to fifteen more minutes.

Status Time -- The Luxury Watch At one time, Poles who had relatives living in the United States, England, and France used to ask them to bring in copies of Western music cassettes, fashion magazines, clothing, coffee, and tea. Today there is no dearth of foreign goods, though not everyone can afford them. The latest status symbol is an expensive watch—preferably Patek Philippe. This is because that factory was founded in 1839 by two Poles,

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Antoni Patek and Franciszek Czapek, who emigrated to France after the Polish insurrection against foreign rule failed. Some of these luxury watches are being sold at prices reaching those of mid-range cars. Businesspeople especially covet brandname watches, and expensive timepieces are the prestige symbols of the new class of entrepreneur millionaires. A good watch is also a common present that Polish children receive at their first communion. Please note, however, that owning and using a watch are two very different things in Poland.

11

Business Meetings

Business meetings in Poland are set up along the same lines as those of Western Europe. The meeting is usually initiated by a formal correspondence. As discussed under strategies, sourcing companies to deal with in Poland is done either by a series of exploratory visits, through a referral from an organization at home that has connections with the Ministry of Finance, or even through a conference or convention.

Different Styles for Different Folks Given the difficult state of telephone services in Poland, meetings will probably be set after a number faxes fly back and forth and a final formal letter is received. Advance notice of two to three weeks allows time for both sides to prepare and for travel schedules to be adjusted. However, it is not unheard of in the present fluctuating business environment to have an impromptu meeting during an exploratory visit to the country, particularly if the local company is small. Some German familyowned companies and Polish companies have formed supplier-dealer relationships after one or

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two meetings. If the company is recommended by a reliable source, one in which you have confidence, deals can be cut without lengthy negotiations. If your company is a large multi-national, then the negotiations will most likely involve government officials as well as the head managers of the company. If the project is in the area of public works and project finance, then it will most definitely involve international agencies and financial institutions.

A Time and a Place The best time to set a meeting is for late morning when both sides are still fresh and the morning routine has been completed. Remember that in Poland the workday begins early and ends at about 3 P.M., particularly in government agencies. Meeting facilities can vary from luxuriously appointed boardrooms to the more common cramped office with minimal ventilation. Some Polish companies may even prefer to meet at your hotel if they consider their own offices lacking. If the meeting involves government officials or agencies, it may take place in a government office. Most of these facilities have the ambiance of a Victorian institution: dark wood paneling on the walls and a long rectangular table flanked by hard wooden chairs. The table is usually covered with a green cloth that resembles the baize of a pool table. This type of office has long been known to anyone who visited any of the countries of the former Soviet bloc.

Smoking Ha zard A carafe of mineral water surrounded by glasses is the centerpiece of the meeting table.

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There will also be ash trays—lots of them. Poles smoke, and they take it for granted that others do as well. If smoking bothers you, it may be difficult to do business in Poland because of the prevalence of smokers. Do not ask them to stop smoking unless you want to see the chances of a deal fade away.

Papers and Procedures It is always best to send your translated documentation, a summary of the proposal, and an agenda in advance of the meeting. If financing is to be discussed, figures, charts, and graphs can also be sent ahead. If both sides need interpreters, that matter should also be covered beforehand to avoid a possible misunderstanding as to who is providing the translation of materials or simultaneous interpretation. Note: It is not wise to use a tour guide as a translator, no matter how fluent in your language, since they tend to explain at length rather than translate. Also, there is a good possibility that they will be unfamiliar with the requisite technical jargon. Look for a professional translator.

Protocol and Rank Europeans are used to having the senior member of a delegation enter first followed by the staff in ranking order. If notes are to be taken at the meeting, it is polite to request permission, particularly if note taking involves a tape recorder. After the introductions are made, usually in rank order, business cards are exchanged. The Poles are not such sticklers for the formal handling of a business card as the Japanese, but sliding a card from one end of the table to the other end is not good form either. It is best to hand it to each person during

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the initial introductions and handshakes. One should read the cards to see the titles of the individuals. If they are a delegation from a manufacturing enterprise, it is more than likely that at least four out of five will be engineers. If the delegation is from a government ministry, then there is a likelihood that the title will be of the level of Direktor or Minister. The academic title of Docent may also be encountered, which is more or less the equivalent of a Ph.D., common among Polish economists. All of this titular information may be useful in subsequent negotiations. The business title can clue you in as to how to negotiate. Remember, there is no sense in discussing loan covenants with an engineer.

Roll with the Poles In a meeting, take your cue from the head of the delegation. Poles run the gamut from being very formal and businesslike to being relaxed, smiling, and affable. It all depends on what region they come from and what kind of organization they represent. When your first meeting is adjourned, the Poles may indicate that they would prefer to have a second meeting with adequate time in between to study your proposal. After that, little of the day’s business will be discussed. In fact, it may be put aside as they move on to a discussion of your country, your background, and your interest in their country. Such peripheral discussions are a way of getting to know you and to see whether they want to deal with you. It is also a time to show what you know. At this point, a little name dropping is always useful. As mentioned earlier, Poles use their connections extensively. If you have highly placed friends who are active in Polish commercial or political affairs, it does not hurt to mention them.

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To End, or Not to End More than likely, if you are a manufacturer, your Polish host will offer a tour of the production facility. If not, then the meeting can end without any indication of commitment or interest in your proposal. Don’t be put off or discouraged. In the fluctuating atmosphere of regulations that dominates the Polish business world, there are a number of variables to be considered by their side. That is why negotiations take longer than you may be used to. Be prepared to have a series of meetings rather than one or two. Dealing with state enterprises takes even longer than making a deal with a private firm. Negotiations of five years and more have been known for large deals, particularly in the up and down world of Polish privatization. The meeting will probably be ended by an interruption from the secretary regarding some “problem” that has arisen. A polite request (if you are selling) as to when you would have an answer to your proposal or whether there would be a meeting to discuss financing is in order. It may, however, receive a positive or a very noncommittal reply. This depends on whether the deal involves a higher authority or requires a consensus from the directors of the company. On the other hand, a sole proprietor business may set up a meeting with their finance arm or with their distribution specialists as they are heading out of the door. It has happened. Since the Poles have a regard for formalities, it is always good to follow up the meeting with a formal letter, restating in brief your proposal. Make sure it is accurately translated into Polish.

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Negotiating Styles

Negotiating with the Poles appears relatively easy on the surface. This is because the majority of businesspeople want to get on with business and move their country into the mainstream of European commercial life. As was noted earlier, however, while they may want to please, there may be difficulties in following through. Understanding these difficulties is integral to conducting negotiations with the Poles. Overall, it is a mistake to lump Poland into the same category as the chaotic countries of the former Soviet Union.

Strategies and Tactics Get Serious. The Poles are eager to take their place in the European economy and make a bid for EU membership. If you arrive there to discuss business, they will not take it casually. If your visit is merely exploratory, make that clear in advance. Technical Transfers. The Poles want modernity and they want it now. Be prepared to be pressed for technical transfers at rock bottom prices. Intimidating Buyers. When the Poles are in a

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buying mode they can be aggressive to the point of intimidation. Foreign firms must be able to resist this common but effective strategy—but do so with a smile. Social Sellers. When the Poles are selling or looking for investors, they can be the most charming people on the planet. It is hard to resist but you must recognize this tactic for what it is: good, old fashioned smoke and mirrors. Entertainers. After-hours dinner meetings and long drinking sessions are not just part of the Polish culture. They also serve as a means to wear out foreigners not used to such activities. Keep your wits about you and stay rested. Deal Delay. As in many emerging markets, Polish companies are often ill at ease with visitors from more technical economies. A feeling of inferiority and fear of being outwitted often causes Polish negotiators to react with stall tactics. Foreign buyers should stick to the agenda, but sellers must be prepared to extend their flight schedules. Consensus. Much independent thought in Poland was subjugated by decades under communist rule. The Poles still rule by consensus in an effort to distribute both responsibility and potential blame. Don’t expect quick decisions.

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Business Outside the Law Social Problems at the Fore

In the changing Poland of today, there are millionaire winners in the cities and economic losers, mostly in the countryside. Peasant farmers’ incomes have dropped 50 percent over the last five years. Unemployment is a problem faced by about 10 percent of the population as foreign products cut into the domestic production of goods and inefficient state factories are put up for sale. Fewer teachers, university professors, and artists work for institutions and receive a regular state wage. Many have lost their former socio-economic prestige along with a relatively good income. As previously noted, wages and salaries are still very low by Western standards. This is seen as a positive for foreign companies that seek to hire Polish workers, but a negative from the workers’ perspective.

Crime Aft It should not come as a surprise that increasing prosperity for some and increasing poverty for others brings with it crime and corruption. Poland’s

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crime rates are not in the league of Russia, but Poland’s Justice Institute has reported that since 1990, crime rates have quadrupled. As some Poles become richer, their acquisition of material goods grows. There is more to steal, so property crimes become more frequent. In Warsaw, car thefts are signaled by the almost constant electronic wailing of car alarms. Poles now remove their car radios as a matter of course. Also, as hypermarkets and malls have been built, carjackings have followed the advent of parking lots. Poland’s Central European location is again a problem in relation to criminal activity. It is growing both as a transit country for legal imports and exports to and from the East, and as a transit country for drugs and contraband from the former Soviet republics to Western Europe. With the growth of private businesses in Poland, illicit industries like prostitution, extortion, and the illegal manufacture of drugs show the darkside of the Polish entrepreneurial inclination.

Organized Crime The Pole’s historical resistance to authority has its negative side in relation to the laws that a complex society requires. With their long tradition of resisting imposed authority, Poles had ingenious ways to circumvent regulations. Some use their ingenuity to avoid paying taxes, others use it to set up planned criminal enterprises. Poland has its own “mafia” groups, who have contacts with criminal gangs in Russia and the other CIS (Confederation of Independent States) countries. A spate of recent shootings in Warsaw was said to have been between two such groups. But such activity is not confined solely to mafia conflicts. Poland’s streets have not become any safer

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for the average citizen with the new market changes. The first months of Prime Minister Buzek’s government saw the escalation of juvenile crime and violence and the use of brutal force by the police against these offenders. There have even been reports of murders that have shocked the Poles because they were committed by teenagers as young as thirteen. In Gdynia, youth riots have broken out resulting in a severe response by police. The beating of one student by police was videotaped and shown on Polish television. The harried police had to defend themselves against irate citizens, and answer to authorities who investigated. Though such activities are not widespread, the Polish citizenry is still keeping a wary eye on both the police and criminals.

Corruption in the Middle In the amalgam of old and new that is Poland, former communist bureaucrats with old connections and older habits retain positions of authority in business and government. The old procedures that were endemic to communist society are now looked upon as corrupt and smacking of cronyism. Not all old habits can be changed overnight and Poles joke about this, saying “under communism, man eats man, under Polish capitalism it is the reverse.” The system of favoring friends is a business tradition, to some degree, throughout the world. Poland is no different. Cronyism by upper and middle management is certainly more extensive than in the West but by no means on the same scale as in Russia or China. Some business visitors may be shocked at the direct requests for “favors” and even outright bribes. As Poland becomes more successful, the need for such practices will fade. They should be viewed as a passing part of the business landscape in Poland.

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Names & Greetings

In general, the Polish people are more courtly and formal than even the British. They are sometimes compared with the Spanish in relation to address and formality. The regular forms of address—Pan, Pani, Panna—are closer to the words for Sir, Lady, and Mademoiselle than they are to Mr., Mrs. and Ms. Although the words Pan and Pani are used by themselves, as in Pan Kowalski or Pani Dubinska, they are often reinforced by the addition of a professional title (Pan Professor or Pani Doktor plus the surname). There is even a form of address for the wife of a professional. So a Pan Doktor’s wife is addressed as Pani Doktorze. The use of polite titles and forms of address goes from the top to the bottom in Polish society. Everyone is accorded some title—even the janitor.

The Familiar You Note should be taken that the English form of direct address “you” has two equivalent forms in Polish. A familiar form and a formal form (similar to the use of “tu” and “vous” in French) are used. It

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is better to err on the side of formality using the “pan” form. The Polish ty, or familiar form of you, is used within a family between siblings, husband and wife, and when speaking to children and to lovers. On all other occasions it is best to use the formal address. Like forms of address, relationships are also more formal in Poland. The transfer to a first name basis takes much longer and, in some business relationships, it never goes to a first name basis. First names are not used until a friendship ceremony like the German bruderschaft takes place. A foreign visitor should always allow his or her counterpart to initiate the change. In student circles, the change to a first name basis happens sooner than among adults, but in professor-student or in other relationships where there is a rank or age difference, using a first name is not acceptable. Note: The use of the French “Madame” is prevalent in Poland, while the other two forms of Monsieur and Mademoiselle are not. For example, Madame Suhocka is as acceptable as Pani Minister Suhocka.

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Communication Styles

Initially, the Poles are very reserved and people usually stand about an arm’s length from each other when conversing. In business circles, there is usually no touching, except among good friends, but often Poles will embrace each other when shaking hands. This is a practice even in official government circles. Poles do not stand and talk as stiffly as their German neighbors, but they are more formal than Americans. They tend, however, to stand closer when they are speaking to friends, probably because Polish is spoken very softly. In their conversations, Poles like to use metaphors and figurative language. Like the Italians, they often emphasize their words with their hands, often elegantly waving a cigarette (Poles have not kicked the habit). If you have been taught not to gesticulate while conversing, then you may be surprised how much Poles do, especially in heated arguments. Among other gestures, men often smooth their hair absently as they speak and some regularly rub their noses or stroke their goatees and mustaches.

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Just a Gesture Added to their verbal skills, the Poles have an “old world” charm in their business and social relationships. Men rise when a lady enters the room, and students rise when the teacher enters the classroom. Some children are still taught to curtsey or to bow when they are introduced. Polish men of the over-40 generation still practice the continental fashion of kissing a lady’s hand, but a young unmarried woman’s hand is spared this ritual. In the global village, as customs become more standardized, practices such as hand kissing are fading, and many Poles consider it an elitist carryover from the past. No one expects foreign males to follow this custom. When introduced to a lady, it is best to wait until the lady extends her hand. Some Polish women simply incline their heads slightly when introduced to a man. Polish school boys have an odd custom of extending hands at right angles to their body when they meet—it is their version of “high fiving.” When someone tells a joke that is old, then the gesture of palm down first and then palm up conveys that the joke did not go over well—or just so-so.

Complimentary Compliments If you are a woman visitor, be prepared for an onslaught of lavish compliments from Polish men and women. Verbal compliments and verbal fencing in meetings and social encounters is an art that Poles have long cultivated. Men and women learn to flirt from an early age. Compliments can range from, “How charming you look today,” to “Your eyes are as blue as Polish cornflower,” to “Your husband is a very lucky man.” However, if some one tells you you look very well, you may wish to go on a diet. For Poles, looking well means well fed.

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Na Zdrowie When a man wishes to go drinking with his “buddies,” he flicks the side of his neck with thumb and index finger. Such a gesture is not made by everyone. It is not made when inviting a girl out for a drink, nor is it used by professionals, academics, politicians, or businessmen. Most often clicking the neck is used by young men to signal their friends to join them in getting drunk. The gesture is often picked up by exchange students who then wrongly assume that it is used in all situations. When dining, it is helpful to learn the Polish equivalents of “bon appetit” and “cheers” before eating and drinking, which are respectively, smacznego and na zdrowie. Toasting is a feature of Polish life—both business and social. The difficulties of keeping up with vodka toasts have been noted by non-Poles, but it is not necessary to follow the habit of draining the glass each time. Although they will urge visitors (particularly males) to drink up, Poles are happy to not have to deal with a drunken guest, and it is appropriate to say that you’ve had enough. Although it is not necessary to keep up with the hard drinking habits of your Polish colleagues, it is considered insulting to leave a dinner party early—especially one at someone’s home. In fact, Poles love to stay up and talk into the wee hours of the morning, even if they have to get up for work the next morning. Keep in mind that this is also a tactic for wearing out foreign negotiators.

About the Roundabout The practice of getting to the point directly is most admired by Americans, but Poles believe a more leisurely approach can set a more pleasant

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atmosphere for business discussion. In their individual dealings, Poles usually spend a few minutes talking about “cabbages and kings” before they broach the real subject for discussion. It gives them the chance to get to know something about the person with whom they are dealing. It is best to open a meeting with a comment or compliment about Poland or its culture. Remember, Poles are a proud people and somewhat defensive about being thought of as a third world country. A remark that you were amazed at the number of construction projects you saw on your way from the airport allows your host to tell you about prospects for the future. It also makes him aware of your perception of Poland as a true progressive economy. If you know that the person plays chess, likes opera, or practices fencing, conversations can be steered to include mention of such subjects. You don’t have to lecture on the subject, but some mention of a sport or analogy to a literary character can help in making a point. A picture of words is worth 10,000 statistics.

Basic Business Formalities As mentioned above, Poles shake hands when they are introduced. A firm handshake is, as in other countries, considered good. It is considered bad luck to shake hands over a threshold—the belief is that a fight will ensue. (So best to be wary if you want to make a deal not to invoke adverse forces.) In greeting friends, even business friends, Polish men will follow a handshake by a clap on the shoulder or with a quick embrace. Friends (male and female) embrace and kiss each other first on one cheek and then the other.

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When two groups meet, everyone shakes hands with everyone else. This little formality can add a few minutes to a meeting, especially when two large groups meet to negotiate. Often workers in the same office will shake hands with each other each morning.

The Business of Language Have your business cards prepared in both your language and in Polish. Poland has excellent graphics services that can do this for you quickly as they are used to dealing with international businesses. Also, it is considered rude not to give business cards to each person at a meeting, so order a lot. Come prepared with your presentation materials, being sure to distribute the translated versions as well. It goes without question that a thorough study of the targeted Polish industry, company, or agency involved has been made (see above). Also, it helps to know some personal information about the person or persons you are meeting, as well as some subjects of mutual interest. Moreover, in business discussions, an overview of the country’s past is essential to making your points. Remember, communication happens at many levels.

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Customs A Fair Country

Every region in Poland has its fairs and festivals. There are book fairs, arts and crafts fairs, and agricultural fairs. Some fairs are internationally renowned such as the folk art fair in Krakow or the annual religious festival at the shrine of Jasna Gora in August, which is held on the Marian Feast of the Assumption. In their personal lives, Poles also celebrate their name or saint’s days (the day assigned to the saint after whom a person is named), which becomes an occasion for a family feast.

Christmas and “Wigilia” The most important holidays in Catholic Poland are Christmas and Easter. There are many folk traditions and food customs connected with each holiday. At Christmas, the live nativity scenes, the making of crèches, and performing of pageants are as popular as caroling. An important feast day is the Wigilia (vigil), which is the Christmas Eve festival.

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Food is an important component of holidays. The Christmas Eve Wigilia features a huge meal before the main feast day. There are 12 traditional Christmas Eve dishes: herring, potato and apple salad, mushroom soup made out of dried mushrooms, beet-root barscz, three kinds of fish (carp)— jellied, fried and boiled—cabbage or other pierogies with poppy seed, a fruit compote and fruit, tea and poppy-seed cake. How the Poles manage to eat the traditional Christmas goose or duck the next day is a wonder. One of the old Polish traditions is to put some hay under the traditional white tablecloth during the meal as a reminder of the manger and an extra place set at the table for the Christ-child.

The Christmas Créche Except for Italy, Poland has the greatest tradition of making Christmas crèches (nativity scenes). Although there are crèches sold in the Cepelia folkart stores, the art of the crèche can best be seen in Krakow, where there is a competition annually. This tradition was started by the city’s 19th-century bricklayers. Consequently, the crèche often has a background of the architecture of Poland’s ancient capital, which is recreated according to the whim of the maker. A genuine crèche is covered from top to bottom in brightly colored foil and the backdrop is usually fairy-tale castles modeled on Krakow’s own castles.

Easter Traditions At Easter, the Poles produce “passion play” pageants such as the Way of the Cross. The most famous of these pageants is performed at Zebrzydowska near Krakow by local peasants and monks. At Easter time, Poles practice numerous food cus-

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toms involving the preparation and decoration of special holiday breads, and there are traditional blessings of Easter foods in church. Egg rolling contests and matches in which opponents knock hardboiled eggs to see which one cracks first are two egg-related customs.

Polish Memorial Day One of the most important holidays in Poland occurs on November 1, during All Saints’ Day, which is Poland’s Memorial Day. Zaduszki, as it is called, is a native Polish tradition centered around the remembrance of the dead. During the Zaduszki weekend, cemeteries are flooded with visitors, and it is a time for the particular remembrances associated with those Poles who perished during World War II. Poles travel far and wide to lay flowers at shrines and graves all over the country. The travel routes are often so crowded on that day that the police call in reserves to deal with the hordes of motorists.

Carnival Traditions In several Polish regions, carnival traditions are still very much alive, especially in the final week before Lent. One of those regions is Kujawy, a picturesque plateau stretching along the south bank of the Vistula from Wloclawek to Bydgoszcz. You can experience carnival Polish-style in many places here. Wearing inventive and even bizarre outfits is a worldwide carnival tradition, but the Kujawy region shows visitors a glimpse of the oldest rituals of the Slavs. The best time to pay a visit is usually on the day before Ash Wednesday. Although attached to Easter, pre-Lenten carnival traditions in Poland are based on pagan Slavic

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rituals and beliefs based in magic, including the metamorphosis of people into animals. Men dress up as animals to cavort and frolic in the streets to the cheerful accompaniment of accordion music. Among the animal costumed revelers you will probably see a horse, a stork (which symbolizes the approaching spring), a goat (an old pagan fertility symbol), and even a bear (the symbol of strength). These festivals should not be missed by the business traveler as they give great insights into Polish culture.

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Dress & Appearance

Before the war, Polish women had the reputation of being the most chic in Eastern Europe. Fifty years of war and communism have damaged the standard, but Polish women who have the economic means can again buy the fashions in Warsaw’s new boutiques. For those that lack the means, there are many women who run small businesses copying fashions from magazines and running them up on home sewing machines. The reputation of skilled Polish tailors and seamstresses has again attracted Western manufacturers who are using Poland as a base to make clothing for major U.S. and EU retailers.

Mainstream Fashions The majority of Polish businesspeople dress neatly but not fashionably. Dark colors predominate and conservatively cut suits, dresses, and coats are the norm. They have taken the middle ground between the high fashion of Western Europe and the no-nonsense standards of the American business traveler.

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For evening outings, businessmen wear jackets and ties and women wear dresses. The jeans and leather jacket uniform is acceptable wear mainly for young people or those in the arts meeting in cafes and bistros. When visiting a church or attending services, women should not wear very revealing dresses or very short skirts. Long pants for women are allowed when visiting churches, though shorts for either gender are not.

Fashion for Businesswomen Women managers who wish to be taken seriously tend to dress and act very conservatively. The “dress for success” outfits for women generally excludes the very short skirts that are taken for granted now on Wall Street and in the City of London. At or below the knee is the more accepted hemline among Polish women who are at high levels of business, politics, and government—even for the ladies who read the news on television. When mini skirts are seen, they are usually worn by very young women, university students, and those in the media, arts, and entertainment professions. The urban Polish matron is much like her counterpart in England or Germany as she goes off to work with hat, gloves, and a bag. However, a touch of the past is seen in the cloth or net shopping bags that many also carry. In the communist era when there was a scarcity of consumer products, women used to take these shopping bags on the chance that they might stumble upon a sudden supply of a scarce item. Today, there is no dearth of consumer products brought into Poland from all over the world, but the habit of carrying a small tote bag remains. The male equivalent of the net bag is the leather briefcase, while students and school children like their West-European counterparts all carry “rucksacks” or backpacks.

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Heading the Pole The choice of head covering reflects not just weather but social class and age. A head-scarf tied around the chin is worn mainly by elderly women of peasant origin. A kerchief, often white, tied under the hair and knotted at the back of the head is worn by women factory workers; those serving in cafeterias, bars, and other food-related businesses; and the sanitarki (cleaning help). The beret, adopted from the French, is a frequent form of headgear worn by both sexes. The billed cap, that distinguished working class Eastern Europeans since before the war, is worn by men over forty, by factory workers, and by villagers. The American fashion of wearing baseball caps backwards has been spread by vacationing students to Poland as have other American sport fashions—such as baggy jeans, carpenter pants, and sweat shirts. In winter, men and women wear fur (or pseudofur) hats similar to the Russian ushanka. In the countryside the flaps of the hat are pulled down to protect the ears. Urban dwellers rarely do so as it is taken as a sign of a rural background. In winter, some fashionable Polish women wear stylized versions of a fur hat that resembles that of the Gorale mountaineers. The mountaineers’ sheepskin coats are also worn by stylish urban Poles.

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Reading the Poles Two-Faced Poles?

Traditionally, Poles have had the reputation of being open, friendly, and outspoken. However, the years of foreign occupation have made them adopt two faces—a public facade and a private persona. The public face is reserved, stoic, and wary, even hostile to others, while the private face is friendly, gracious, hospitable, and warm. Poles distinguish what they refer to as swoj czwlowiek—their own person—from the persona they show outsiders. The approach to outsiders, which includes most foreigners, is “them” as opposed to “us.” Even émigré Poles returning to Poland are not always considered to be swoj czlowiek. It takes more than knowledge of the language or drinking a bottle of vodka with a Pole to be considered part of the inner circle. The induction into this circle is based on feeling and perception, not on any logically understood criteria. Consequently, a foreigner is automatically not swoj czlowiek, but he can be inducted into a Polish circle (srowdowisko) if Poles feel he is a “true friend.”

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The Inner-Inner Circle The inner circle of family and close friends is the basis of the social and business network. The larger social networks are no longer based on class but are more likely to be based on education, common experiences, and school ties. Friendships are very important and their importance extends beyond the social environment to business, where the Poles often depend on their “cousins” and the connections such cousins can offer. Poles have large extended family relationships that they rely on whenever something needs to be accomplished, whether it is a personal or business problem or simply to gain advice. Getting a ticket to a show that is sold out, setting up a meeting with the Director of one of the new private schools to get little Tomek a place, or renting an apartment are all eased through connections in one’s extended family. Induction into the family carries the responsibility of helping in the future. An elaborate etiquette has sprung from this tradition of helping, extending favors or using one’s contacts (see communication). Since the Poles are very interested in attracting foreign capital and investment in their country, business visitors are welcomed. However, there are different levels of business dealings. It helps to recognize with whom you are dealing. Visitors should remember the old peasant adage about family life: “When a Polish wife shows you her nursery, you have been admitted to the inner circle.”

Different Strokes for Government Folks Government officials are generally polite and those in foreign consulates are eager to furnish information about government regulations. How-

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ever, the offices are often understaffed. It is best to write or to leave a number and allow a government official to respond to your inquiry. It is difficult to generalize about government officials in Poland, but one thing is certain: they are part of a still unreformed bureaucracy. Although you may encounter helpful and friendly officials, you may also encounter an official whose demeanor and attitude reflect more of the pre-1990 Polish bureaucracy. In the latter case, the attitude is to be as unhelpful as possible. One sign of such an attitude is a demeanor where the arms are crossed against the chest as if to ward off any interference. Another gesture that, although not universal, is seen frequently, is when the Polish bureaucrat disagrees: he’ll rub the side of his nose and possibly blow his nose ostentatiously, as an elephant trumpets, to indicate a challenge. However, the Polish “Nie” (No!) is not necessarily the final word. Even government bureaucrats have been known to do a 180-degree turn after repeat visits, some name dropping, and the calling in of some favors.

The Men in the Brown Suits Paralleling the government bureaucrats are the elder businessmen. In Poland, there is still a large proportion of managers and heads of enterprises who were brought up in the communist era and their fleshy faces often decorated the pages of Trybuna Ludu, the still extant communist party newspaper. They were once distinguished by their brown suits and thick shoes. Today the men in the brown suits have changed to banker’s gray, but their attitudes have not changed. These older managers tend to be set in their ways and are hostile to the thought of a Westerner coming in to tell them how to manage their business. They tend to

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be brusque in dealings and can be quite direct in relation to what they want from you. You may even be startled after you give your presentation to be asked pointedly how much money you are prepared to invest. Rest assured that some of that investment will be “under the table.”

The New Dealers At the other end of the spectrum you could be dealing with the younger generation of managers and businesspersons who have received their training in the West. Many of the younger Polish business owners are involved in financial services, in a technology field, or in one of the new business areas that has opened up as a result of the move to a market economy. In addition, you may find yourself in a meeting with a group of scientists who have become businesspeople because the university has not been able to pay their salaries. In Poland today, there are whole groups of scientists-turned-entrepreneurs who need capital and are eager to make deals. However, some of them are not up to estimating production or assessing costs. (Poles often sincerely promise, but performance may not be what is delivered.) The scientist-turned-entrepreneur may not realize that his product needs to be altered for the market place and may not have an idea of what it costs to sell it abroad. Start-up operations are often run on a shoestring budget and fail because of high production costs. Keep your expectations low.

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Entertaining

It is still rather rare for city-dwelling Poles to entertain business visitors at home because of crowded housing conditions. More likely, a business visitor will be entertained in a restaurant and the wife of the Polish businessman does not usually attend such a dinner. However, if you choose to reciprocate, it is considered acceptable to invite your host and his wife to be your guests at a restaurant on a subsequent occasion. As a relationship is built, you may eventually be invited to your host’s home. If you are honored by being invited to a Polish home, it indicates that a good relationship has been established. You also have a chance to see your partner or potential partner in the context that is most important to him—the family environment. Most probably you will be invited on a Sunday, when the lady of the house has time to prepare the main meal of the day—the Obiad. Women often work the regular five and a half day Polish workweek and have little time to prepare for guests. To give the lady of the house time to prepare, the dinner is usually set for late afternoon or early evening. It is not absolutely necessary to arrive

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promptly on the doorstep at the hour of invitation, but common sense dictates not to be too late. Never arrive early.

Gift Giving When invited to a home, the tradition is always to bring something, for in Poland, “guests do not come with empty hands.” However, it is not necessary to bring an expensive gift. Flowers are appropriate as a gift for the hostess. One should avoid bringing red roses as these flowers have a romantic connotation. Yellow chrysanthemums are also not appropriate because some Eastern Europeans connect them with funerals. By tradition, an odd number of flowers is usually given. Flowers can be given on almost every occasion, including weddings, birthdays, and other celebrations. Greeting cards are usually sent by mail, while visiting cards are personally handed to people. Besides flowers, appropriate gifts for friends and for a hostess include chocolates and other confectionery. The extra bottle of wine is always welcomed, particularly since most wines are imported and tend to be higher priced. California and French wines are most welcome. If you are invited a second or third time, you might bring your Polish business acquaintances special corporate gifts with inconspicuous logos. These could include a small desk clock, a pen and pencil set, or even a small calculator or other electronic gadget. However, any gift with a large logo is not appropriate—to the Poles it looks like advertising. As a country of readers, Poles very much appreciate receiving books. Art books and illustrated books about your country, city, or culture are also appropriate.

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Because Poles love literature, a translation of one of their classics such as the trilogy by Sienkiewicz into English can cement a friendship. If you know that your host has a special hobby or sport, a book on that subject may be appreciated. Gifts for children are always a big hit. In fact, showing any attention to your Polish colleague’s children can help your acceptance by the family as a whole. As the Polish adage goes: “Dziecko za reke, matke za serce” (Take a child by the hand and you take the mother by the heart).

Dining Out Poland was recently a country where restaurants served a limited range of dishes—all heavy and hastily prepared. Times have changed and today the visitor to Warsaw can choose from practically any cuisine in the world. The Poles have returned to their tradition of good eating which is reflected in the Polish proverb, “Learn in Italy, clothe yourself in Germany, flirt in France, feast in Poland.” Privately owned restaurants are opening everyday and they range from sushi bars to pizza parlors. The old state-run restaurants have virtually disappeared, as have the dingy bars. The new fast food establishments are neon-bright and clean. Of course there are the ubiquitous golden arches of McDonalds, but there are also many Vietnamese and Thai food stalls as well. Prices are high in the better restaurants, which is why most Poles tend to eat at these more bargain oriented venues. Foreigners may be invited out for a major business dinner and it should be treated as a special occasion. The expense to your Polish counterpart will be sizable. If your schedule allows you to reciprocate, make sure you do not outspend your Polish guests.

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Socializing

The Polish people love to socialize and it is seen as a major form of personal entertainment. They are tremendous conversationalists and take every opportunity to interact. Business visitors to Poland will find that their hosts are eager to show off the sights and entertainment venues of their country. Such activity is a way for your Polish counterparts to gain insights into your character as well as allowing them to demonstrate traditional hospitality. All social invitations should be honored, if scheduling allows, and treated as a valuable opportunity.

Theater Life In the capital and main cities, there is a wealth of theatrical entertainment to be enjoyed. The Poles love the theater and have always been in the forefront of European film production, drama, music, and graphics design. Warsaw alone has more than 20 live theaters and a host of movie houses. Visitors may be invited out to an evening of concert music, an avant garde play, an Italian opera, or a modern ballet. The Poles believe that these types of activities are a sign of cultural refinement. Those visitors

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who denigrate them or show signs of boredom will be written off as uneducated and not part of the kulturalnie ludzie (cultured elite). Such activity may not be “your cup of tea” but don’t let on to your Polish hosts.

Pop, Rock and Ja zz Younger business visitors (especially high-tech types) may find that they will be asked to go along on a “crawl” of Poland’s many music clubs. Pop, rock, and jazz music are all considered to be essential to emulating the successful Western economies. Poles especially love jazz and they can hear it at numerous clubs clustered near the Palace of Culture in Warsaw. American jazz aficionados may find the music lacking in authenticity, but, like a yawn at the opera, keep it to yourself.

Festive Occasions Music and art festivals are common in both the cities and the countryside. Usually only long-term visitors will be invited to these social affairs, but they are a great opportunity to delve into Poland’s past. This is a nation that cares equally about its future and its history. Your hosts will be greatly impressed with your enthusiasm and equally put off by your disdain depending on your reaction to these activities.

Welcome Home Receiving an invitation to the home of your Polish coworkers or counterparts should be treated with the greatest care. Families are central to Polish life and you are being invited into the inner sanctum. Be prepared to eat and drink a lot. The food

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Passport Poland

and drink may be simple, but the conversation and interaction may make or break your business deal. Go out of your way to treat elders with respect and take interest in the host’s children. Bring along pictures of your own family and home as Poles are always eager to see how the rest of the world lives.

Drinking to the Deal As mentioned earlier, drinking and toasting are a major part of Polish social life. Having a few vodkas (or pints of beer) after work is standard-operating-procedure. If you don’t drink alcohol, go along for the camaraderie and a soft drink. Under no circumstances should you decline the offer during the early stages of your dealings. Remember that Poland is only half way toward full development and contract law is nascent at best. In Poland, friends do business with friends—and friends drink vodka together. Drinking is so integral that it has given rise to one of Poland’s finest bits of selfdeprecating humor: “The only reason we are short of vodka is that our scientists are trying to turn it back into potatoes.”

Expense Accounts Count Business visitors from wealthy nations who arrive with bulging expense accounts should be reminded that not all Polish businesses are so well endowed with cash. What seems like a simple night of socializing may be a burdening expense for your Polish host. Be gracious in your thanks and modest in your reciprocity when it is your turn to pay.

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Basic Polish Phrases

English

Polish

Yes No

Tak Nie

Good Morning Good Evening

Dzien dobry Dobry wieczor

Hello How are you Good-bye

Halo Jak sie (pan, pani) ma Dowidzenia

Please Excuse me Thank you You are welcome

Prosze Przepraszam Dziekuje Bardzo prosze

Do you speak English? I do not speak Polish I do not understand

Czy (pan, pani) mowi po Angielsku Nie mowie po Polsku Nie rozumiem

What is your name?

Jak sie (pan, pani) nazywa?

My name is _____

Nazywam sie _____

I am from ...

Jestem z ...

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Correspondence

The post office in Poland is used for mail, faxes, and telegrams. In addition, there are post offices at which long distance telephone calls can be made. The time taken for surface and air mail to reach Poland can vary between three days to three weeks, as the mail delivery is not very reliable, particularly to outlying areas. Most large businesses and government agencies can be reached by fax (which is preferable for quick international correspondence). There are facilities for faxing in the large international hotels in the major cities. Mail should be addressed as follows: Pan Ryszard Znaminski Direktor, Polkomtel ul. Swietokryzska 12 00-96 Warsaw, Poland The first line indicates the individual’s name. The given name is followed by the family name. Letters indicating profession can be inserted after the family name. If a title (Direktor, Doktor, etc.) is used, it should be inserted between the individual’s

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name and the company name. The company name is on the second line. The word for office (Biuro) is also used occasionally and is declined according to the subject and case. The street indication (ul. for ulica) comes before the street name followed by the number. Alternatively, the words aleja (as in alley) or plac (place) figure in addresses. For example the U.S. Embassy address is aleje Ujazdowskie 29-31 in Warsaw. It is not necessary to write out the name of the city and country in Polish as mail will be delivered to the city designated as long as it is recognizable, e.g., Warsaw (Warszawa), Cracow (Krakow). The salutation on the letter often begins with “Szanowny Pan,” which means “Most respected Sir.”

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Useful Telephone Numbers

The numbers below are local numbers. To dial Poland directly from abroad, dial your country’s international access code, then the country code, the city code and the local number. For example, to dial American Express, which is located at ulica Krakowskie Przedmisecie 11, dial your country’s international access code then [48] (22) 26-35-20-02. Country Code . . . . . . . . . . . . . . . . . . . . . . . . . . . . [48] City Codes Bialystok . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (85) Bydgoszcz . . . . . . . . . . . . . . . . . . . . . . . . . . . . (52) Czestochowa . . . . . . . . . . . . . . . . . . . . . . . . . . (34) Katowice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32) Krakow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12) Gdansk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58) Gdynia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (58) Lodz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (55) Radom . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48) Rzeszow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (17) Szczecin, Swinoujscie . . . . . . . . . . . . . . . . . . (97) Warsaw . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22) Local Assistance Numbers International Operator (English speaking) . . 901 International Code Information . . . . . . . . . . . 930

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Domestic Operator . . . . . . . . . . . . . . . . . . . . . 900 Long Distance Information . . . . . . . . . . . . . . 912 Local Information . . . . . . . . . . . . . . . . . . . . . . 913 Police . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 997 Ambulance . . . . . . . . . . . . . . . . . . . . . . . . . . . 999 Embassies British Embassy . . . . . . . . . . . . . . . . (22) 25-30-30 Canadian Embassy . . . . . . . . . . . . . (22) 29-80-51 French Embassy. . . . . . . . . . . . . . . . (22) 28-84-01 U.S. Embassy . . . . . . . . . . . . . . . . . . (22) 28-30-41 Airlines Air France . . . . . . . . . . . . . . . . . . . . (22) 628-12-81 Alitalia. . . . . . . . . . . . . . . . . . . . . . . . (22) 26-28-01 American Airlines . . . . . . . . . . . . . (22) 625-30-02 Bulgarian Airlines . . . . . . . . . . . . . (22) 62-112-78 British Airways . . . . . . (22) 628-94-31, 628-3991 CSA . . . . . . . . . . . . . . . . . . . . . . . . . . (22) 26-38-02 Finnair. . . . . . . . . . . . . . . . . . . . . . . . (22) 26-87-64 LOT Polish Airline . . . . . . . . . . . . . (22) 30-50-07 Lufthansa . . . . . . . . . . . . . . . . . . . . (22) 630-25-55 Sabena . . . . . . . . . . . . . . . . . . . . . . . (22) 628-60-61 Other Numbers Polish Foreign Investment Agency Tel: (22) 93-47-76; Fax: (22) 28-68-08 Polish Ministry of Foreign Economic Relations Tel: (22) 69-34-000; Fax: (22) 29-06-17 Warsaw Information Center (Travel Assistance) . . . . . . . . . . . (22) 635-1881 World Trade Center Warsaw . . . . . (22) 656-7711 Poland Chamber of Commerce . . . (22) 826-0143 Convention Assistance . . . . . . . . . . (22) 826-8446 Medical Care Emergency Medical Service . . . . . (22) 628-2424 Technodent . . . . . . . . . . . . . . . . . . . . (22) 203-548 Wojciech Ejchman . . . . . . . . . . . . . . . (22) 426-646

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WORLD TRADE P R E S S

Books & Internet Addresses

God’s Playground: A History of Poland in 2 Volumes by Norman Davies. Columbia University Press, New York, USA, 1984. Covers the period 1795 up to the formation of the Solidarity movement. This is the most comprehensive history written in English for those who want a good background. Norman Davies has also written, Heart of Europe, A Short History of Poland for those who prefer a shorter version. The History of Polish Literature by Czeslaw Milosz. 2nd ed. University of California Press, Berkeley, USA, 1983. A magisterial study of Polish literature and intellectual life through the centuries written by the eminent poet, teacher and Nobel Laureate. Polish Profiles: The land, the people and their history, by Antoni Gromowicz. L. Hill, Westport, Connecticut, USA, 1976. Although not up-to-date, the anthology is useful for its discussion of the role of the Catholic church, for an understanding of the Intelligentsia, and for analysis of the events that formed the character of the people. The Real Poland; An Anthology of National Self-Perception, Edited by Alfred Bloch. Contin-

Books & Internet Addresses

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uum, New York, USA, 1982. Useful for its collection of different points of view on seminal events in Polish history as expressed by Polish literary figures and intellectual leaders.

Internet Addresses Polish Government information site: http:// www.urm.gov.pl/polska/ Business and economic news from the Polish government and listings of business opportunities in Polish. The Warsaw Voice (Polish news magazine in English): http://www. warsaw.voice.com.pl This is the online version of the weekly newspaper that provides Polish news, business information, entertainment listings, voice and buzz columns, editorial opinions, and a humorous column written by expatriates living in Poland. An invaluable site for business persons and investors is the US Dept. of Commerce web site, CEEBIC (Central & Eastern European Business Information Center). The CEEBIC site contains the CIA World Factbook Overviews of each country in the region. Also, there is a specific databank for investment and business opportunities by industry for each country in Central Europe. The Site address is: http://www.iep.doc.gov/eebic/ceebic.html

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