report on intellectual capital of poland
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The Report on Intellectual Capital of Poland
Anna Blumsztajn
Pawe³ Bochniarz
Ma³gorzata D¹browska
Szczepan Figiel
Tomasz Kardacz
Katarzyna Królak-Wyszyñska
Robert Mazelanik
Hanna Nowakowaska
Teresa Ogrodziñska
Monika Roœciszewska-WoŸniak
Ma³gorzata Rószkiewicz
Tomasz Rudolf
Krzysztof Rybiñski
Andrzej Siemaszko
Tomasz Schimanek
Adam Turowiec
Dorota Wêziak-Bia³owolska
Andrzej Wodecki
The Report on Intellectual Capital of Poland was commissioned by the Board of Strategic Advisers
to the Prime Minister and prepared in cooperation with this team.
Board of Strategic Advisers is an advisory and consultative body toththe Prime Minister of Poland. It was established on 6 March 2008, according
to the Prime Minister's regulation. The Board, headed by Micha³ Boni, Ph.D.,
Secretary of State in the Chancellery of the Prime Minister, prepares analyses
and assessments of the socio-economic situation of the country and participates
in developing strategic plans of the government.
It also provides suggestions of goals and objectives for the strategy of economic
and social development of the country.
More information on members of the Board of Strategic Advisers to the Prime
Minister and other authors of the report is available at:
Authors of the Report:
Editing:
Design:
Printing:
Let us not waste our time and opportunities
Warsaw, 10th July, 2008
Micha³ Boni, Ph.D.
Head of the Board of Strategic Advisers to the Prime Minister of Poland
The Report on Intellectual Capital of Poland
19 years ago Poland embarked upon a systemic transformation and laborious process of narrowing the gap separating
it from the world's most developed countries and leaders in the global economy. Those years may be perceived through
the turbulent political history, but also through the huge effort of Polish entrepreneurs developing market economy
and competitive exports, and through the diligence of Polish employees working at least 20% above the statutory
working time norms, and constantly raising their efficiency. Those years have also been the time of young Poles'
and their families' investments in higher education, due to which Poland is currently sixth in the world as far as
the number of students per 10,000 inhabitants is concerned.
We have had our successes and achievements, but we have also suffered a number of failures.
We have our strengths and weaknesses, but we are also aware of threats and opportunities. The goal of the Board
of Strategic Advisers, appointed by Prime Minister Donald Tusk, is to create a long-term vision of Poland's development,stas well as of new competitive advantages responding to the challenges of the first half of the 21 century.
We are convinced that it is future-oriented thinking, rather than focus on the present, that determines the standards
of political responsibility in the contemporary world. We believe that this is the only way to prosperity and, let us not
be ashamed to use this word, to the social well-being, where financial aspects of life conditions improvement converge
with the social ones and with the sphere of values.
One of the first initiatives of the Team was undertaking an effort to draw up the Report on Intellectual Capital of Poland.
External experts in various fields were invited to cooperation in the preparation of the project, with the hope that their
enthusiasm and competence would contribute to the compilation of a document which would initiate a wide public
debate. A debate that would focus on how to develop Poland's potential for its future progress, based on knowledge
economy and on the values crucial to triggering the energy of entrepreneurship and creativity.
A fundamental problem to a number of countries, including Poland, in the upcoming years will be presented by demographic
challenges. For this reason, we decided to set the description of Poland's intellectual capital in a generational perspective,
recognizing the importance of harmony and solidarity between generations.
By presenting this report, we intend to initiate a debate beyond current political disputes. The aim of the diagnosis
proposed in the report is not to lay blame, but to define problems to be solved commonly by Polish people.
The challenges identified in this report must be met without delay, as time is working to our disadvantage.
The transforming world will not wait.
About the report
At the beginning of the year 2008, when the Board of Strategic Advisers to the Prime Minister was appointed, I was invited by the founder and head of the team, Minister Micha³ Boni, to coordinate work on the Report on Intellectual Capital of Poland. This initiative was intended to call the attention of politicians, the media and opinion leaders to the role and importance of the quality and level of intellectual capital in the long-term development of Poland.
it is not a government document. It is an expert report that provides inspiration for the Polish government when planning their policies.
The present report, which was drawn up in conclusion of the project, is in character of a so-called 'green paper' (http://en.wikipedia.org/wiki/Green_paper), which means that it is aimed not at giving solutions, but instead, at initiating a public debate. A debate devoted to the future development of Poland as a modern knowledge-based economy.Although relevant government representatives were consulted about certain issues in the course of preparing the report,
The Report on Intellectual Capital of Poland was compiled by experts from the Board of Strategic Advisers and a group of external experts.
As the coordinator of this project, I would like to thank all those whose
knowledge, experience and commitment enabled us to draw up this report
within just four months.
I would like to give special thanks to Prof Ma³gorzata Rószkiewicz
from the Institute of Statistics and Demography of the Warsaw
School of Economics, to Mr Ludwik Sobolewski, President
of the Management Board of the Warsaw Stock Exchange,
and to Mr Janusz Witkowski, President of the Central Statistical
Office, for their assistance, which was essential to the success
of this project.
The report comprises three parts:
Summary,
Diagnosis
Recommendations
- explaining the reasons for drawing up the report, and defining basic terminology as well as the method applied to assess the intellectual capital of Poland;
- , identifying the key challenges related to the development of the intellectual capital of Poland;
- , proposing seven priority measures that must be taken in order to meet the challenges facing Poland.
Pawe³ Bochniarz,Prime Minister's Strategic Advisers Group,Coordinator of the Project on the Intellectual Capital of Poland.
Table of Contents
Diagnosis 27
Young children 28
Pupils 50
Students 71
Adults 88
Senior citizens 121
Recommendations 137
Summary 5
Table of Contents
The Report on Intellectual Capital of Poland
Summary
The Report on Intellectual Capital of Poland
6
THE INTELLECTUAL CAPITAL OF POLAND is the total of intangible assetsof people, enterprises, communities, regions, and institutions, which, properly utilized, may become the source of the present and future well-being of Poland.
key challenges like
Intellectual capital
Human capital:
Structural capital:
Social capital:
Relationship capital:
Both the economic theory and the experience of other countries indicate that the role of intellectual capital is fundamental to sustainable development of a country.Certain countries, comparable in respect of their natural resources, geographical position and financial condition, may differ significantly in terms of their successfulness, like Chile and Argentine, or Spain and Italy.The difference between these countries lies in the ability to develop intellectual capital, which manifests in long-term thinking, readiness to learn, trust in market mechanisms and receptiveness to global competition, but also in efficient government of the country. Whether Poland will manage to find the proper response to its demographic regression, increasing costs and worsening accessibility of traditional sources of energy, or constantly accelerating pace of technological progress, depends on its ability to utilize the intellectual capital of the Poles.
consists of the following components:
the total potential of all Polish people embodied in their education,life experience, attitudes and skills, which can be used towards increasing the present and future well-being of Polish people.
the total potential of tangible infrastructure elements of the national system of education and innovation, i.e. scientific and educational institutions, research centres, IT infrastructure, and intellectual property.
the overall potential of the Polish society in the form of its social norms of conduct, trust and involvement, which support cooperation and knowledge sharing, and thus, contribute to the improvement of the well-being of Polish people.
the potential related to the external image of Poland, to the level of its integration with the global economy, and to its attractiveness to foreign 'clients': commercial partners, investors, tourists etc.
Cooperation with the Institute of Statistics and Demography of the Warsaw School of Economics resulted in developing a measurement model that allows to benchmark the intellectual capital of Poland and other EU Member States. The adopted method involves presenting intellectual capital in a generationalperspective, which enables assessment of the future potential of Poland's development with regard to the individual age brackets. The estimation of the intellectual capital value ofeach generation in selected countries has been standardized and presented as percentage (from 0 to 100%). All indexes have been calculated as a result of statistical analysis covering from several to several dozen indicators.Altogether, the measurement model applied in the Report on Intellectual Capital of Poland comprises 117 indicators.
Index of the intellectual capital of Poland in respect of individual generations places Poland among 16 European countries surveyed:
13th as regards young children and pupils; 13th as regards students; 14th as regards adults; 16th as regards senior citizens.
This indicates that the distance separating Poland from developed European countries in terms of intellectual capital is still considerable. Until recently, the relatively low level of intellectual capital did not hinder economic development in Poland, since the country's competitiveness was based on other advantages, such as low labour costs, a relatively big market, or its location in the centre of Europe. However, maintaining the current pace of development in the upcoming decades will not be possible unless intellectual capital, which is the foundation ofany knowledge-based economy, is strengthened.
7
Increasing
the quality
of legal operations,
procedures
and infrastructure
for business
Ensuring synergy
of science, business
and culture.
Creating vacancies
with high
added value
Activating
senior citizens
Focusing the system
of education
on the needs
of the labour
market
Increasing
the quality
of education
More complex
and efficient
family policy
Regular
measurement of
intellectual
capital indicators
7
Ensuring high quality of human capital Enabling the utilization of human capital
as a source of the country's competitive advantage, growth and well-being
Building social capital of Poles: increasing trust in interpersonal relations and in citizen-state relations, activating social activity.
Initiatives related to activating and developing the potential embodied in Polish people should be joined with the use of social capital. The state can stimulate the process
of increasing social capital by improving the credibility of its institutions and by promoting appropriate norms of conduct in mutual relations.
Nonetheless, Poland must do its utmost to create the optimal conditions
for utilizing the capital of knowledge, energy, and entrepreneurship of Polish
people. It is absolutely crucial for Poland to promptly become a business-friendly
environment. Otherwise, the human capital, i.e. the best students, workers, scientists and
entrepreneurs, will move abroad to countries offering better conditions to run operations.
A simplified legal system, competitive and open markets, a transparent tax system,
and mechanisms stimulating creative cooperation of science, business and culture, may
turn Poland into an ideal location for innovative enterprises generating considerable added
value.
What is of top priority among the numerous challenges facing
Poland is further investment in its human capital, which is key
to the development of the country.
It is essential that pro-family policies encourage people to have children
and ensure equal access to various forms of pre-school education, that
the quality of teaching in
schools be increased, and that Polish institutions of higher education
produce graduates whose qualifications are more relevant to the needs
of the labour market. Finally, the ageing society brings new challenges,
but also new opportunities related to the intellectual capital embodied
in the senior generation.
The Report on Intellectual Capital of Poland
Nevertheless, such a negative scenario does not have to come true. There is yet another possible scenario, in which Poland becomesone of the most dynamic economies in the EU. This scenariopredicts that thanks to an extensive network of modern nurseries and kindergartens Polish children receive quality education fromthe very beginning of their educational path, and Polish families are able to afford having more children and perfectly manageto reconcile their family life and professional careers. Professionalactivity of women and senior citizens is the highest in Europe, which results in growing tax revenues to the treasury and,consequently, in increased public investments in infrastructure andintellectual capital. There is no room for boredom, localcommunities are vibrant with life, nobody is leftstranded. Several Polish universities make their way to the top100 universities in the world, and they become the first choiceuniversities for students from all over the world. Many of them take up their permanent residence in Poland, attracted by well-paid jobs for highly qualified and well educated professionals.Polish economy stimulates numerous innovations which are afterwards implemented in other countries on all continents.The choice of the scenario belongs to Polish people. The optimistic one will become realistic provided that challenging reforms in such areas as social transfers, taxes, economic regulations, or public sector operations, including health service, education and science, are introduced successively without delay. One should be prepared for resistance on the part of strong groups of interest, and should be aware that the results of the reforms will be visible not sooner than in 5-15 years.
Nevertheless, such reforms are indispensable if Poland's success is to become more than just wishful thinking.
8
greater use of teamwork performed beyond government departments and coordinated bythe Prime Minister;
wider scope of consultations, with the participation of representatives of the media,NGOs, and parliamentary opposition;
engaging highly qualified and well prepared project managers to be operationallyresponsible for the implementation of reform projects
The success of developing the intellectual capital of Poland will require a great deal of effort aimed at changing the traditional attitude to the implementation of key reforms.
The above-mentioned changes should manifest in:
What is also essential is a shift from short-term to long term government policies, which should be accompanied by due regard to improving the quality of political debate and focusing it on issues of genuine importance to the country
The experience of other countries teaches us that even twenty years of relatively dynamic economic growth is insufficient to bridge the gap separating a country from the developed world. Unless the right decisions are taken at this moment, the pace of Poland's development will decelerate, and the distance to more developed countries will stop shortening.
Given the intention to initiate a debate on the intellectual capital of Poland, this report has been made available online, with the possibility to add remarks and comments related to its individual parts.You are welcome to take this opportunity atIf the Polish lack courage, determination and readiness to work in the interest of Poland
stregardless of political divisions, history books of the third decade of the 21 century will cite the example of Poland as a warning of possible consequences of failure to invest in the intellectual capital of a country. Poland may become one of the poorest countries of the European Union, which allows the most talented individuals to emigrate and the most prosperous businesses to move to countries with lower taxes.
http://www.innowacyjnosc.gpw.pl/kip
Poland failed to develop as dynamically as it should have in the past decade
A proverb says that failure is an inherent part of each success.
Undoubtedly, a lot has changed for better in Poland for the last
20 years: the society is more prosperous, people are better
educated and more open-minded. What the Poles cannot afford
at the moment is to rest on laurels. Even a draft comparison of
the pace of economic development in Poland and other countries
from the former communist block demonstrates that Poland is
failing to make the best use of its potential, and is not developing
as quickly as other countries in the region, e.g. Slovakia, Estonia,
or Lithuania.
Poland has advanced towards Europe less
significantly than other countries in the region
Estonia
Lithuania Hungary
Slovakia
Czech Republic
Latvia
PolandRomania
20
30
40
50
60
70
80
90
20 30 40 50 60 70 80 90 100
The rate of the long-term economic growth in Poland
does not exceed 4.3%, which is by far less than in other
countries in the region. Moreover, it is not certain
whether this pace will be maintained in the nearest
years.
GD
P per
capita
com
pare
d to the
EU
25 a
vera
ge
in 2
007
The length of the arrow illustrates by how much the distance separating
each of the countries from the EU average has been shortened.
GDP per capita as compared to the EU25 average for the year 2007.
9
Slovenia
The Report on Intellectual Capital of Poland
Poland is not doomed to success
The experience of other countries teaches us that even twenty years of relatively dynamic
economic growth is insufficient to bridge the gap separating a country from the developed
world. Unless the right decisions are taken at this moment, the pace of Poland's development
will decelerate, and the distance to more developed countries will stop shortening.
Greece, Portugal and Italy are examples of countries which, after two decades of rapid growth,
experienced a decrease in the pace of development, and, as a result, have not yet reached
complete convergence with richer EU countries in terms of well-being.
The countries that have achieved a spectacular economic success, such as Ireland, South Korea,
or Taiwan, have also managed to maintain their growth rate for 30 to 40 years at the minimum.
A distinctive feature of this group of countries in the overall profile is the exceptional ability
of their governments to employ long-term thinking and to give priority to measures aimed
at achieving strategic objectives over short-term operations.
Poland is currently facing similar dilemmas. It is compelled
to launch subsequent challenging reforms in such areas as
social transfers, taxes, business regulations, and the overall
performance of the public sector including health service,
education, and science.
One should be prepared for resistance on the part of strong
groups of interest, and should be aware that the results of
the reforms will be visible not sooner than in 5-15 years.
Nevertheless, such reforms are indispensable if Poland's
success is to become more than just wishful thinking.
What is also essential is a shift from short-term to long
term government policies, which should be accompanied
by due regard to improving the quality of political debate
and focusing it on issues of genuine importance to
the country.
10
Source:
Key importance of intellectual capital to economic developmentBoth the economic theory and the experience of other countries indicate that the role
of intellectual capital is fundamental to sustainable development of a country.
Certain countries, comparable in respect of their natural resources, geographical
position and financial condition, may differ significantly in terms of their successfulness,
like Chile and Argentine, or Spain and Italy.
The difference between these countries lies in the ability to develop intellectual capital,
which manifests in long-term thinking, readiness to learn, trust in market mechanisms and
receptiveness to global competition, but also in efficient government of the country.
THE INTELLECTUAL CAPITAL OF POLAND is the total of intangible assets of people, enterprises, communities, regions, and institutions, which, properly utilized, may become the source of the present and future well-being
1of Poland.
Interestingly, the first recorded use of the term 'intellectual
capital' comes from the correspondence between two
outstanding economists of the 20th century, John Kenneth
Galbraith and Micha³ Kalecki from 1969. Galbraith wrote
in a letter to Prof Kalecki the following words:
“I wonder if you realizm how much those of us in the world
around hale owed to the intellectual capital you have provided 2over these past decades” .
The definition of intellectual capital was formulated by
Prof Leif Edvinsson, who often refers to it as 'the ability
to generate future income'.
Listen to the statement by Prof Edvinsson recorded
specially for the purposes of this report, in which he
defines intellectual capital and explains its significance, at:
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=9
¹ Literature on the subject does not offer one generally accepted definition of intellectual capital. The one accepted by the authors of this report is close to the definitions formulated by Malhotra and Bontis: Intellectual capital is the 'hidden assets' of a state/a nation which are the basis of its economic potential growth, its well-being, and its position in the world (Malhotra, 2000). Intellectual capital comprises the 'hidden properties' of people, enterprises, communities, regions, and institutions which are the source of the present and future well-being (Bontis, 2004).² A. Serenko, N.Bontis (eds.), “Meta-Review of Knowledge Management and Intellectual Capital Literature …” (MacMaster University, 2004).
11
What does the term 'the intellectual capital of Poland' refer to?
The Report on Intellectual Capital of Poland
Poland does not exist in a vacuum
Poland is not a country that functions in a vacuum. A complex network of economic, political,
social and cultural relations makes us a part of the world's social and economic ecosystem.
Important events and global trends have and will have an impact on the pace of the country's
development, and for this reason Poland must observe them and consider their implications
for Poland.
The 1998 crisis in Russia, the attacks of 11th September 2001, the epidemic of SARS,
or the most recent crisis in the US mortgage market are examples of events that
influenced Poland, although they took place in distant countries.
Therefore, it is important to have a closer look
at the key challenges in a worldwide perspective
and their implications for the development strategy
of Poland as the economy based on intellectual
capital.
The most important of them are as follows:
ageing population of European countries and
the increasing flow of immigrants from Africa
and Asia;
demographic regression in Poland;
rising costs and deteriorating accessibility
of traditional sources of energy;
increasing role of China and India in
the global economy;
knowledge becoming outdated, and the increasing
pace of technological progress.
12
Ageing Europe, and the flow of immigrants from Asia and Africa
Over the next 20-30 years every city in Europe, i.e. in Poland as well, may expect an increase
in the number of immigrants.
Year 1950 2005 2050
Worldwide 5,2 8,1 16,2
Africa 3,3 3,4 6,9
East Asia 4,4 8,8 24,8
South and Central Asia 3,7 4,7 13,5
South East Asia 3,8 5,4 17,6
Eastern Europe 6,5 14,3 26,6
Poland 5,2 13,3 31,2
Western Europe 10,2 17,2 27,7
Latin America 3,5 6,3 18,5
South America 3,4 6,4 18,5
8,2 12,3 21,5
Percentage of Population Aged 65+
North America
1950 2005 2050
Average Age of the Population
23,9
19,1
23,5
21,2
20,6
26,4
25,8
34,6
20,0
20,4
29,8
28,0
19,0
33,4
23,2
26,0
37,5
36,8
40,5
26,0
26,5
36,3
38,1
28,0
45,9
37,2
40,2
48,1
52,4
46,7
40,1
40,0
41,5
Source: The cover of the World Bank's report on migrations
This is how a pedestrian crossing in a Polish city in the year 2030 may look like.
Poland needs immigrants due to a dramatic decrease in population, quickly ageing society and workforce shortages in certain professions.If immigrants work, pay taxes, and become part of the Polish society, the Polish economy will only profit from that. However, if a proper immigration and integration policy is not implemented, Poland will face the risk of emergence of ghettos for immigrants from poorer countries, as well as of an increase in unemployment rate and social welfare expenditures.
Source: UN, “World Population Prospects: The 2008 Revision” [http://esa.un.org/unpp/index.asp?panel=2]
13
Year WorldwideAfricaEast AsiaSouth and Central Asia South East AsiaEastern EuropePolandWestern EuropeLatin AmericaSouth AmericaNorth America
The Report on Intellectual Capital of Poland
Poland is in danger of secondary demographic regression
Secondary demographic regression entails exposure to the collapse
of economic growth and of the public financing system in Poland
in a long-term perspective.
Source: Population forecast for the years 2003-2030 based on the results of the 2002 Polish Census, Central Statistical Office (GUS).
If the current retirement age is maintained, the Polish population of productive
age will have decreased by over 800 thousand by the year 2015.
Change in the population of Poland in the years 2007-2030
-1.500.000 -1.000.000 -500.000 0 500.000 1.000.000
Total
0-17
18-44
45-59/64
65+
2030
2015
If the unfavourable demographic processes continue, Poland
will face the risk of public financing system collapse and inability
to provide welfare benefits for the senior generation. The 'social
welfare states' are threatened with bankruptcy.
The secondary demographic regression crisis may be avoided
by way of stimulating the activity of senior citizens in the labour
market and by extending the period of professional activity.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2007 2015 2030
65+
45-59/64
18-44
0-17
2007 As early as today the population of children is by half smaller than that of their parents.
2015 The population of children keeps decreasing. The percentage of retired population is rising.
2030 The demographic depression generations reach their adulthood. The senior population doubles in number.
The challenge to be faced by the Polish state is a shift from
the passive policy of social transfers on behalf of senior citizens,
through an active policy taking advantage of the increasing
demand of the senior generation, to introducing new products
and services and utilizing the intellectual capital of senior
citizens.
14
Change in the demographic structure of the population of Poland
as broken down into age group categories, in the years 2007-2030
Source:
Lack of a strategic attitude towards investing in the Polish power industry, combined with the reductions of CO emissions, 2
has caused a significant barrier to our growth
"Najwa¿niejsze zagadnienia dotycz¹ce funkcjonowania sektora elektroenergetycznego w Polsce”, a report by presidents of the power industry companies (February 2008).
15
Due to low prices of energy, investments in the Polish power industry has been marginal.
This may result in temporary problems with ensuring the continuity of energy supplies
over the nearest 2 to 3 years, while the energy reserve in 2008 was de facto lower
throughout the year than what is required under the relevant energy security regulations.
Within 3 to 6 years' time Poland will be facing a permanent energy deficiency, which
will be impossible to compensate with the country's limited import capacity.
Over 90% of the energy in Poland is generated from coal, which means that the country's
CO emission per capita is higher than the EU average, although it uses as little as half 2
of the EU energy consumption average.
A low level of intellectual capital manifests itself also in
inability to develop strategic plans, which is likely to cause
inevitable energy deficiencies in Poland within a few years'
time. Poland must overcome this weakness, otherwise it will
be constantly 'surprised' by events which might be foreseen
if the strategic planning mechanisms were in place.
It pays to learn from the experience of others. For example,
in the Parliament of Finland a new committee was established
a few years ago. Its name is the Committee for a Constructive
Tomorrow, and its aim is to facilitate reflection and to conduct
debates on the strategic challenges facing Finland, such as
the growing importance of Russia, the development
of nanotechnology, or the ageing of the society.
Listen to Paula Tiihonen, a Finnish MP, discussing the tasks
of the Committee for a Constructive Tomorrow here, at:
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=15
Poland may have to face dramatic dilemmas, as, in the short run, it has
no alternative to coal-based energy, whose resources in Poland are
substantial, and as 'clean coal' technologies are not yet accessible in
Poland on a commercial basis.
The Report on Intellectual Capital of Poland
Source:
Growing Importance of China and India in the Global Economy
1 European Commission, “Globalization: Trends, Issues, and Macro Implications for the EU”, Economic Papers, (EC, 2006).
Over the nearest few decades Chindia will significantly increase its share in the global GDP.
It may once more account for half of the global production of goods and services, as at
the beginning of the 19th century. China is becoming a global competitor not only in
the production of footwear, garments, computers, household appliances, and radio
and television equipment. It is also strengthening its position in sectors requiring advanced
knowledge and innovative approach.
The student population in China has exceeded 30 million, which is more than in the European
Union and the United States put together.
China is the world's biggest exporter of computers and telecommunication equipment, while
India is the world's capital of software outsourcing, earning over USD 12 billion yearly from 1software production .
100
2001
1973
1950
1870
1820
Share of world GDP
20 40 50 6030
Share of world population
70
100 20 40 50 6030 70
2001
1973
1950
1870
1820
% shares of China/India, OECD and
the rest of the world in global population and GDP
China and India are quickly developing their intellectual capital, viewing
it as their chance for an evolutionary leap. Being aware of these trends,
does Poland develop its relational capital with these two countries properly?
16
China + India
Rest of World
OECD
Knowledge becomes outdated instantly, and technological progress has reached a staggering pace
A sharp increase in the number of patent applications indicates an accelerated pace stof technological progress in the 21 century.
Asian countries are fast in developing their knowledge-based economies; during four years
the number of patent applications tripled in China, and increased by 140% in South Korea.
There is a huge gap separating Eastern and Central Europe from the top
ten leaders in the world's innovativeness, and Poland has been regressing
in recent years.
Does the Polish system of education teach the right skills, such as creativity,
analytical thinking or teamwork, which are indispensable in the innovation
process?
The number of patent applications submitted to the World Intellectual
Property Organization increases significantly each year
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
1978 1982 1986 1990 1994 1998 2002 2006
Number of patent
applications
Growth dynamics of
number of patents
(2003-2007, %)
USA 52280Japan 27731
Germany 18134
South Korea 7061
France 6370
Great Britain 5553
China 5456
Netherlands 4186
Switzerland 3674
Sweden 3533
Hungary 160
Czech Republic 123
Poland 102
27,459,2
23,7
139,4
23,2
10,5
321,3
-6,5
28,4
35,3
40,4
48,2
-33,8
Number of patent
applications submitted
to the WIPO in 2007
17 The Report on Intellectual Capital of Poland
Poland abounds in statistics presentingthe past, or, what has been left behind.
18
How to show what is still ahead of us? How to present our potential for growth?
19 The Report on Intellectual Capital of Poland
The Report on Intellectual Capital of Poland is intended to show growth potential in Poland as compared to other EU countries
With this report Poland has joined a group of pioneer countries
in measuring and describing national intellectual capital.
Before Poland, intellectual capital reports were issued
among others in such countries as:
Sweden (1999);
Israel (2000);
Taiwan (2003);
Arabian Peninsula countries (on the UN initiative, 2004).
The team responsible for compiling this report comprised
over 21 members including Andrzej Wodecki, Tomasz Rudolf,
Katarzyna Królak-Wyszyñska, Szczepan Figiel,
Ma³gorzata D¹browska, Tomasz Kardacz, Tomasz Schimanek,
Hanna Nowakowska, Anna Blumsztajn, Teresa Ogrodziñska,
Miko³aj Herbst, Alek Tarkowski, Krzysztof Rybiñski,
Eliza Durka, Pawe³ Kaczmarczyk, Mateusz Walewski,
Maciej Duszczyk, Maciej Bukowski, Dorota Poznañska,
Jakub Wojnarowski.
Additionally, the report was enhanced by observations
and suggestions of several dozen other people, representing
institutions of public administration, science, education,
health service, NGOs, and business.
20
In the course of creating the present report, a series of interactive workshops with over a
hundred participants were conducted. The workshops were intended to engage representatives
of government administration and NGOs in the debate on the key challenges related to
the intellectual capital of Poland.
A prototype of the report was presented at the fourth annual conference of the New Club
of Paris devoted to intellectual capital, held in Paris in May 2008.
That offered a chance to gather opinions on the Polish concept of the report from
the world's leading authorities on intellectual capital.
Listen to Prof Edvinsson comments at:
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=10
21 The Report on Intellectual Capital of Poland
What are the components of intellectual capital?
What is intellectual capital? Can it be measured on the level of a country, region, city, or
company? Why is the growth of intellectual capital so essential for the future of Poland?
Every one of us knows the right answers to these questions. Moreover, when making life
decisions, we are usually driven by the necessity of generating and developing intellectual
capital or by the opportunities of using the already existing one. For example, when planning
professional careers for our children, we often try to foresee what occupation will be best
for them, and what skills they will have to develop to succeed in the labour market. Our
decision is influenced by tradition, e.g. a child born in a family of lawyers, physicians, or
scientists is more likely to follow the career path of his/her parents since they already know
the environment and may assist the child in his/her future career. In other words, the parents
possess a firm relational capital (commonly and not quite adequately referred to as 'contacts'
or 'friends in high places'), which the child may benefit from. When we found a business, we
often ask ourselves whether we will manage, whether we are competent enough to remain
in the market and to succeed afterwards. In other words, we analyze our human capital. If it
is too low, we sometimes enrol in extra courses to raise that capital. If, on the other hand,
we establish a joint venture, we usually trust our partners, which means that we have high
social capital in our environment.
The four IC components:
INTELLECTUAL
CAPITAL
education, life experience, attitudes and skills, which can be used towards increasing the present and future well-being of Polish people.
the total potential of all Polish people embodied in their HUMAN CAPITAL:
the national system of education and innovation, i.e. scientific and educational institutions, research centres, IT infrastructure, and intellectual property.
the total potential of tangible infrastructure elements of STRUCTURAL CAPITAL:
norms of conduct, trust and involvement, which support cooperation and knowledge sharing, and thus, contribute to the improvement of the well-being of Polish people.
the overall potential of the Polish society in the form of its social SOCIAL CAPITAL:
of its integration with the global economy, and to its attractiveness to foreign 'clients': commercial partners,investors, tourists etc.
the potential related to the external image of Poland, to the level RELATIONAL CAPITAL:
Listen to Prof Salim Al.-Hastani, University of Manchester, commenting
on the crucial role of intellectual capital, and, in particular, on moral
standards as a component of intellectual capital, at:
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=17
22
People with well developed human and relational capital tend to hold
higher positions and earn more money than those who have low level
of these kinds of capital. The following four components: human capital,
relational capital, organizational capital (also termed 'structural'), and
social capital constitute intellectual capital.
It can be easily noticed that intellectual capital is not tantamount to
intelligence as it is a much broader notion.
Cooperation with the Institute of Statistics and Demography of the Warsaw School of Economics resulted in developing a measurement model which enables comparing levels of the intellectual capital of Poland and other EU Member States
In the literature neither the notion nor the concept of
intellectual capital of a region have been formulated
in an explicit and comprehensive manner. Consequently,
no common measurement method has been established.
Nonetheless, two procedures of informing about regional
national intellectual capital have been developed until now.
The first one, chronologically earlier, is based on assessing
the position of a given country or city in comparison
with others by applying various indicators related to
the components of intellectual capital. The other one,
gaining increasingly more popularity, involves methods
for creating synthetic indicators of intellectual capital
or of its components or elements.
Only the latter approach may be referred to as intellectual
capital measurement procedure. In the case of the first one,
such terms as 'reporting' or 'describing' should rather be
used. Currently, professional literature in the field reflects
a debate focused on selecting a set of most adequate
indicators for assessing intellectual capital of a region.
The controversies regard both the concept itself and the
accessibility of required statistical data. Additionally, the
discussion covers the issue of establishing a measurement
model which would enable quantification of intellectual
capital being in fact a conventional notion.
23 The Report on Intellectual Capital of Poland
The search for the best formula of the measurement model of intellectual capital was based
on the following assumptions:
It is possible to express intellectual capital of a region in numerical terms
as one number;
Individual indicators suggested in the professional literature as describing
intellectual capital do not have equal role in diagnosing intellectual
capital, as some of them, at a given time and in a certain region,
tend to reveal the level of the region's capital in greater extent than others;
Consequently, it is possible to rank intellectual capital indicators, and to select
those which are of key importance to measuring the value of intellectual
capital of a region at a given time;
The intellectual capital model applied in this report was estimated for the region
of 16 EU countries, while the individual member countries were considered as
observation units, and their intellectual capital was assessed in respect of its
elements and components.
-0,015 0,904 0,919 0,83
Intellectual capital:
senior population
Intellectual capital:
adults
Intellectual capital:
students
0,086 0,607 0,583
0,124
0,2010,507
Diagram 1: Path diagram of the intellectual capital model:
components of intellectual capital, and
their interrelationships
24
INTELLECTUAL
CAPITAL
Intellectual capital:
preschool and school
children
The conceptual model of intellectual capital of individual
generational groups was designed in compliance with
the general framework of the intellectual capital concept
established in the professional literature [Edvinsson, Malone,
2001; Andriessen, Stam, 2004; Bontis, 2004; Lerro, Carlucci,
Schiuma, 2005; Rószkiwicz, Wêziak, Wodecki, 2007].
Therefore, certain subcategories of intellectual capital were
distinguished, and afterwards separate measurement models
were developed for each of them, which were then used as
variables enabling construction of the measurement model
of intellectual capital of a given generation.
Measuring and describing national intellectual capital
in a generational perspective is an innovative approach.
In other countries' reports which have been produced
so far the age groups not participating in the labour
market have been omitted. The Polish approach, recognizing
the importance of inter-generational harmony and
solidarity, was acknowledged by international experts:
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=12
The underlying assumption was that this report
would present the measurement of intellectual capital
in a generational perspective, which
would enable assessment of the developmental
potential of Poland related to each individual
generation.
klpe1
klpe10
klpe12
klpe13
klpe2
klpe3
klpe4
klpe5
klpe8
klpe9
0,474
0,876
-0,735
0,803
0,886
0,935
0,868
0,751
-0,477
-0,742
ksn1
ksn2
klste 3a
kklste 5a
0,926
EDUCATION
QUALITY
OF LIFE
ATTITUDES
klpj1
klpj10
klpe2
klpj3
klpj4
0,808
-0,194
-0,214
-0,81
0,737
klpp1
klpp2
klpp3
klpp4
klpp5
klpp5a
klpp6
0,276
0,908
-0,737
-0,563
-0,411
HUMAN CAPITAL
(ADULTS)
0,526
0,29
0,939 0,549
SOCIAL CAPITAL
(ADULTS)
0,047
kspn2
-0,241 -0,012
ENGAGEMENT
-0,961
kspn8
kspn8 kspn8 kspn8 kspn8
-0,04 -0,109 0,949 0,502
INTELLECTUAL
CAPITAL
(ADULTS)
ksed4
ksed1
ksrdi1
0,116
0,357
0,746
klste_7aklste_6akrtu2
0,055 0,970 0,938
0,876
SOCIAL CAPITAL
(ADULTS)
INTELLECTUAL
PROPERTY
BUSINESS
COOPERATION
SCIENCE0,844
-0,487
-0,287
-0,238
ksfims8 ksfims9 ksfims6 ksfims1
0,512 0,897 -0,036 -0,898
COMPANIES
STRUCTURAL CAPITAL
(ADULTS)
0,681
-0,943ICT
-0,005
ksictb3
ksictg2
ksictg3
ksictg4
ksicti1
ksictinf1
ksictinf2
ksicts1
ksicts2
0,755
0,923
0,038
0,913
0,782
0,947
0,943
0,949
0,021
0,745
krge1
krge3
krge4
krgi1
krgmi1
krgmi2
0,743
-0,220
-0,210
0,574
0,585
kswp1
kswp2
kswp3
0,878
0,851
0,473
ENVIRONMENT0,191
kssef1
kssem1
kssodn1
ksspo3
-0,461
0,06
0,926
0,796
0,161
Path diagram of the intellectual capital model of adults
25 The Report on Intellectual Capital of Poland
The estimated values of intellectual capital (IC) of individual generational groups in selected countries have been standardized in the range of <0; 1>, and shown as percentages
Applying this approach enabled creating generation-based indexes
or ratings of intellectual capital and of its individual components, including:
human capital;
relational capital;
social capital;
structural capital.
Each such index is generated on the basis of statistical
analysis of several to several dozen indicators.
The measurement model used in the Report on Intellectual
Capital of Poland includes 117 indicators.
A full list of indicators, together with the relevant data
for the 16 Member States included in this comparison,
can be viewed on the website:
Additional information on the applied methodology is
also available on the above website.
The report was originally intended to present comparative
data for all EU Member States. However, this occurred
unfeasible due to data inaccessibility. For countries not
present in the IC ratings in the report several
indicators included in the model were unavailable.
http://www.innowacyjnosc.gpw.pl/kip/index.php?a=
wskazniki
26
Diagnosis
The Report on Intellectual Capital of Poland
Children
What are the living standardsof Polish children?
Are they provided withproper conditions fordevelopment?
What can Poland learn from others?
29
Children
The Report on Intellectual Capital of Poland
This means that Poland lags behind most of the European countries in respect of
the intellectual capital of the part of society which determines the country's future
capacity for development and competitiveness.
What considerably accounts for this disadvantageous position are, among others,
the following statistical factors:
low participation of 4-year-olds in education;
relatively high under-5 mortality rate;
low percentage of pupils declaring their interest in future jobs connected with science.
IC Index for preschool and school children
The intellectual capital index for preschool and school children places thPoland 13 among the 16 EU countries included in the comparison.
By contrast, the following indicators have a positive impact
on the above-mentioned position of Poland:
*PISA is the abbreviation for the Programme for International Student Assessment, which is an OECD-coordinated international research.
Germany
Hungary
Austria
Ireland
France
Belgium
Czech Republic
Spain
Sweden
Italy
Netherlands
Great Britain
Poland
Finland
Portugal
Greece
0 20 40 60 80 100
30
Intellectual capital indexes have been based on the analysis of the key
IC indicators attributed to a given generation. The full list of all 117
indicators used for the purposes of Poland's IC model is available at:
www.innowacyjnosc.gpw.pl/kip/
Children
relatively low percentage of children aged 11, 13, and 15 who live in one-parent families;
comparatively large average number of days per week in which school children declare
to spend an hour or more on physical activity;
very high average proportion of time spent on learning to read, or doing mathematics,
as compared with the EU average;
good results of Polish pupils in respect of reading literacy (PISA).*
Poland's generation of children was affected by the income stratification in the days
of the economic transformation, and by the resulting division of the country into
Poland A and Poland B*.
Relative poverty of numerous rural families, systemic weakness of the health service,
as well as early childhood education standards which are inadequate for the needs
of contemporary society, all make Polish children disadvantaged at the beginning
of their life with comparison to their peers from other European countries.
Children's attainment in primary school, presented in the PISA reports, place Poland
at the level of the European average in respect of pupils' mathematical and scientific
literacy, and in second position in Europe with regard to their reading literacy.
31
Children
Source: **Poland A – western, central and southern parts of the country, which are more prosperous, Poland B – eastern parts of the country, which are economically belated and underdeveloped.
Children have alwaysbeen considered as particularly important in Poland
The Report on Intellectual Capital of Poland
Are children luxury goods?
During recent years, the conditions for upbringing children provided by
the Polish state have improved in certain respects:
the length of maternal leave has been extended, income tax relieves for
families with children have been introduced.
The above-mentioned solutions, however, are only fragmentary. The current system of legal
solutions contributes to a low birth rate and an increasing proportion of children born into
and brought up in one-parent families. Instead of providing solutions to social problems, such
a system reinforces social pathologies and is costly to the state.
The tax system in Poland, despite the changes introduced at the beginning of 2008, still
treats children as luxury goods which can be afforded by few. This leads to weakening
the economic position of families, particularly those with many children.
Consequently, decisions to have and bring up children appear to be highly risky and costly.
Meanwhile, families with children, which incur significant expenses related to providing for
their offspring, also pay higher indirect taxes. Upbringing children entails parents'
bearing higher alternative costs during their professional activity period (lower remuneration,
slower pace of career development, less leisure time), and also later, when their children
grow up and start contributing relatively more to pensions of those who have chosen to
focus on their professional development and resign from family life.
The fact that upbringing children constitutes
investment in human capital, generating so-called
positive external effects for society, is underestimated.
This arouses a justified concern about who is going
to provide for the elderly generation in the nearest
future.
32
Children
Source: Ministry of Labour and Social Policy, Polish Press Agency, Reuters.
Petitions for legal separation (in thousands)
Petitions for divorce (in thousands)35
30
25
20
15
10
5
0
23,0
7.6
2003 2004 20042003
0
20
40
60
80
100
120
86
106
increase by
o 203%
increase by
o 23,2%
The introduction of the Family Benefits Act in May 2004 may serve as an example of an
adverse effect of legal solutions on children's well-being. This regulation provided an
economic incentive for the increase in the number of petitions for divorce or legal separation.
Despite the very short time for which the above-mentioned law was in force, its results can
be observed in a wide spectrum of malpractices aimed at gaining financial advantages.
Surge in divorce rates in Poland (in thousands)
Source: Central Statistical Office, GUS
75
70
65
60
55
50
45
40
35
30
25
1990 1995 2000 2001 2002 2003 2004 2005 2006
42,5
38,0
43,0
45,5
45,5
48,556,5
68,0
73,0
33
*Figures will be observable as statistical data over a longer period, when the defective legal solutions become permanent.
Children
sharp rise in the number of petitions for divorce or legal separation
in the year 2004, with this upward trend continued in the following
years;
increase in the percentage of children born into extramarital relations
or/and into one-parent families*;
increased risk of social pathologies;
increase in self-destructive behaviours (addictions, suicides) among
the youth.
Consequences of the regulation:
The Report on Intellectual Capital of Poland
Poland has the highest level of exposure of children and teens to poverty
in the EU: 26% of Polish children aged under 15 years are in danger of 1living in poverty .
How to protect children from poverty?
The exposure to poverty is the biggest in numerous families and in households
where a child is brought up by a single parent. This results, among others, from the fact
that
This diagram shows the percentage of children aged 0-15 who live below the poverty
threshold. The poverty threshold is defined as 60% of national median income in a given
country, and is indicative of the differences in levels of economic development between
countries.
for a relatively long time after 1989 the state did not support families
in the process of upbringing children, especially during the early childhood
years. In consequence, one of the parents often resigned from their career,
which resulted in lowering the income of the household.
Sweden
Denmark
Finland
Germany
France
Austria
Nertherlands
Czech Republic
Great Britain
Hungary
Belgium
Greece
Ireland
Italy
Spain
Portugal
Poland
0 10 20 30 40
children under 15
all age groups
The percentage of children exposed to poverty in Poland
is the highest compared with other EU countries
Source: Eurostat (2006)1
34
Children
Source: W. Warzywoda-Kruszyñska, “Zjawisko biedy dzieci a zagro¿enie wykluczeniem spo³êcznym w przysz³oœci” (2008), 2 W. Warzywoda-Kruszyñska, Interview for the Voivedeship Office in £ódŸ (2008), [ ].
¹ [ ]. http://www.brpd.gov.pl/badaniabiedy.htmlhttp://www.uw.lodz.pl/index.php3?str=913&datar=2004-11&id=27
Child poverty, especially when it afflicts in the early childhood, leads to certain deficiencies,
which adversely affect the physical, intellectual and emotional development of a child in
the future.
“This is mostly because during childhood and early youth [ … ] changes occur in
the biological (pubescence), psychical (cognitive reorganization) and social (starting
and leaving school) spheres of human life, which entails changes in behavioural
patterns and in the social context in which a child lives.”
So far, the state and local governments have been unable to curb this phenomenon
or to cope with its consequences, which is reflected, among others, in the still unsolved
problem of child undernutrition, affecting approximately 1/3 of the population of children,
particularly in rural areas. The problem is even more difficult to solve
with regard to children under 6 years of age, who are not covered by the institutional
protection provided by schools. Meanwhile, American researchers prove that
1
The negative results of poverty may translate into failure to fulfil children's basic
needs such as proper nutrition or access to education and health care.
poverty
experienced by children aged below 5 years results in lowering 2their level of intelligence by 9 IQ points within three years' time .
35
Children
The Report on Intellectual Capital of Poland
A limited access to early and systematic health diagnostics
and prophylaxis
How to ensure health of the youngest?
As far as young children are concerned, a long waiting
time for an examination by a specialist doctor in a public
health care institution often results in the necessity for
more complex and costly treatments in the future.
This particularly concerns rural areas, where not all POZ
centres employ paediatricians.
The percentage of households assessing the accessibility
of diagnostic examinations as 'good' has decreased in Poland
from 36.4% in 2003 to 28.9% in 2006. At the same time,
there has been an increase in the proportion of households
assessing it as 'bad' (from 15.5% in 2003 to 20.9%) or
'extremely bad' (from 4.8% to 5.5%). Nearly ¼ of infants
and 40% of children aged 1-2 have never received counselling
from doctors employed by POZ.
Although the health care system for the youngest children in Poland is considered as relatively
efficient, when compared with several more developed EU member countries, one may and
should identify those of its aspects which are still problematic.
Poland has abandoned selecting groups of children with special health care needs, comprising
children with a decreased health capacity, who should receive regular medical care. Those
groups ensured systematic diagnostics and control of all medical procedures applied in terms
of the most vital aspects of health. Clinics are obliged to conduct regular diagnoses of
children's health condition. While most of them succeed in fulfilling this responsibility,
a part of them fail to perform the task systematically.
Yet another problem is sometimes dubious quality of screening examinations carried out
by nurses in POZ* institutions, school nurses and doctors.
Thus, it would be advisable to increase the responsibility for provided health services, and
to control their quality, simultaneously extending their accessibility, e.g. by enabling performing
vaccinations outside treatment rooms belonging to the POZ network.
Source: * POZ (Podstawowa Opieka Zdrowotna) stands for basic health care in Poland.
36
Children
Awareness of the advantages of breastfeeding is still not common in Poland.
Even the best baby food does not contain the antibodies present in mother's milk. Statistics
show that only as little as 25% of breast-fed babies contract infections on a frequent basis,
while among artificially fed babies this proportion amounts to 97%. When a baby becomes
infected, it may occur necessary to apply an antibiotic therapy, which, in turn, has a weakening
effect on the immunological system.
Bottle-fed infants have smaller chances to fight pathogenic microorganisms before their own 1organisms start producing antibodies, which does not happen until the third month of their life .
The World Health Organization (WHO) recognized
It is also vital to start breastfeeding within the first hour of the child's birth. Research proves
that
Meanwhile, although no full statistical data are available in this respect, it may be estimated
that in Poland only slightly above half of the number of babies are breast-fed within the first
hour of life³.
full breastfeeding for the first six
months of a child's life to be the Golden Standard in infant nourishment².
breastfeeding a baby directly after its birth has a salutary effect on its health
and reduces infant mortality rate by even 31%.
Source: 1 D. My³ek, “Dlaczego warto karmiæ piersi¹” [ ]. ² World Health Organization, “Global strategy for infant and young child feeding” (Geneva, 2003) [ ]. ³ A. Gupta, “Breastfeeding: The 1st Hour – Save One Million Babies” (2007) [ ].
www.polki.pl http://www.polki.pl/rodzina_niemowle_artykul,10006481.htmlhttp://www.who.int/nutrition/topics/global_strategy/en/index.html
http://worldbreastfeedingweek.net/wbw2007/downloads.html
37
Children
The Report on Intellectual Capital of Poland
Healthy family environment
Children, especially babies, are not able to signal that they are victims of violence. Cases of
violence against children are not evident until a child suffers injuries or abuses, or dies as
a result of physical harm. In Poland, according to the research conducted by the Nobody's
Children Foundation, the public consent for corporal punishment of children is higher than
in other new EU Member States. Moreover, as it appears from the UN statistical data,
the percentage of child deaths resulting from injuries and accidents is relatively high in 1Poland when compared with the relevant data for other EU member countries .
Young children have no influence on the way they spend their time. They are totally
dependent on the lifestyle of their parents and/or siblings. If they spend their free time
in front of TV sets, with little physical activity, or exercise done in the open air, their
muscular systems will be underdeveloped, which may result in faulty postures and/or
eye defects.
Lack of proper diagnostics and prophylaxis during early childhood poses
a significant challenge, as the later a health problem is identified the more
costly its consequences are. What is of key importance in this matter is
the care provided during foetal life.
Source: Central Statistical Office (GUS), “Ochrona zdrowia w gospodarstwach domowych w 2006 r. Health Care in Households in 2006” (Warszawa, 2008) [ ].1 http://www.stat.gov.pl/cps/rde/xbcr/gus/PUBL_ochrona_zdro_w_gosp_dom_2006r(1).pdf
38
Children
Only 41% of children aged 3 to 5 have access to preschool education
in Poland.
The results of scientific research clearly show that it is during our earliest years when most
of our intellectual and social skills are developed. By failing to provide children with quality
early childhood education, we squander their opportunities and waste potential human capital.
Access to quality preschool education is particularly important for children whose family
environment cannot ensure proper conditions and incentives for development. This is mostly
true for children from poor or pathological families, or coming from poor regions of Poland.
Improving accessibility and quality of early childhood education is key to curbing
the existing social inequalities.
Why is early childhood education so important?
How to increase the participation of children in early childhood education?
The share of Polish children in pre-school education 1is the lowest in Europe (% of 2-5-year-olds in educational institutions)
France
Spain
Italy
Belgium
Denmark
United Kingdom
Hungary
Czech Republic
Sweden
Germany
Estonia
Austria
Portugal
Slovenia
Netherlands
Bulgaria
Latvia
Greece
Lithuania
Ireland
Finland
Poland 41%
0 20 40 60 80 100
1Source: Eurostat, (2006) [ ].http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1073,46870091&_dad=portal&_schema=PORTAL&p_product_code=CCA11024
39
Children
The Report on Intellectual Capital of Poland
Source: Komeñski Foundation, based on the GUS (Central Statistical Office) data.2 Central Statistical Office, GUS.
1
Average expenditure on education in Poland (made by local governments and parents),
expressed as a percentage of GDP, are close to the EU average. However, these funds suffice
to ensure access to early childhood education in Poland for a much smaller number of
children than in other EU countries, which can be explained by lack of flexibility in allocating
funds for preschool education and care programmes.
Until recently there was only one form of preschool education in Poland: kindergartens,
with very high costs of education per child. Currently, alternative forms of preschool
education are available, offering fewer hours of class work, multi-age groups, and only
one teacher looking after children. While
, they do not solve all
existing problems, e.g. access to preschool education in gminas with extremely low population
density. This is the case in Podlaskie Voivodeship, where 3/4 of all rural gminas have no 1kindergartens .
Accessibility and popularity of preschool education in Poland is not only low, but also highly
differentiated between urban and rural areas. According to the statistical data for 2006, 62%
of children from urban areas aged 3 to 5 attended kindergartens, while in rural areas this
proportion was merely 19%. While the accessibility of kindergartens in towns and cities is 2improving relatively quickly (with an increase from 40% to 60% during the recent ten years) ,
the situation in villages has been improving much more slowly, with almost no changes in this
respect recorded for the last few years.
such forms are better suited to the needs
of rural communes (gminas*) and more affordable to them
What causes this disproportion?
Rural gminas are less densely populated, which increases the costs
and makes arranging preschool education more difficult. Additionally,
rural gminas are poorer, and their preschool education is not funded
from the central budget. Poland is one of the few EU Member States
in which early childhood education is not state-financed.
The problem of low accessibility of early
childhood education concerns mostly rural areas.
% of 3 to 5-year-olds in educational institutions
10%
Total Urban gminas Gminas of rural-urban
rural and municipal
nature
Rural-urban
gminas
20%
30%
40%
50%
60%
70%
0%
40
Children
* Gmina is a basic administrative unit in Poland (there are three types of gminas: rural gminas, urban gminas, mixed (rural-urban) gminas). Voivodeship is a high-level administrative unit in Poland (there are 16 voivodeships in Poland).
Wrong stereotypes related to early childhood education hinder its dissemination.
How to improve the quality of early childhood education?
abilities to think in abstract terms and assimilate complex notions .
Until recently it was generally assumed that infants and preschool children have limited 1
Therefore, both parents and institutions such as nurseries or kindergartens
focused mostly on providing care to children.
The results of recent research on the human brain's functioning verify the existing knowledge
on young children's development.
, although it obviously cannot equal the brain
of an adult in terms of its functionality.
During the first three years of life the brain reaches
the size of 60% of the adult human's brain2
Years between a child's birth until the age of 3 or 4 are
of key importance to:
quality of child's entrance to outside
the home environment;
development of child's ,
conditioning his/her success in acquiring knowledge
about the world and his/her own place in both natural
and institutional environment like kindergarten or school;
developing , such as
curiosity about the world, sense of self-esteem,
independence and perseverance, ability to concentrate,
listening and remembering, language skills, and cooperativeness;
developing
which determine the quality
of his/her adult performance both in private life and in
respect of social roles in family life, career, and spending 3 leisure time .
social life
cognitive competence
key attitudes and behaviours
the foundations of a child's personality,
individuality, and identity,
Source: ¹ A. Brzeziñska, "Spo³eczna psychologia rozwoju” (Warszawa: WN, 2000).2 B.J. de Urries, "Twoje dziecko miêdzy 1. a 3. rokiem ¿ycia” (Z¹bki: Apostolicum, 2005).3 J.D. Bransford, Brown, R.R. Cocking, "How People Learn: Brain, Mind, Experience and School” (Washington: National Academy Press, 2000).
41
Children
The Report on Intellectual Capital of Poland
Source: J. Brooks-Gunn, et al.., "The Contribution of Parenting to the Ethnic and Racial Gaps in School Readiness” (Columbia University, 2005),[ ]. * School readiness is a child's developmental level required for assuming the obligations related to his start of school education.
1 http://www.futureofchildren.org/usr_doc/pg_139_markman_&_brooks-gunn.pdf
Parents are not properly involved in the education process of children during
the preschool period.
In Poland, unlike in other EU member countries,
which tend not to offer
In institutions providing early childhood care and education, parents are not treated like the basic
source of information about their children. Nor do they have any influence on the
learning content or the form of class work. Failure to enable provision of
will lead to depriving young children
of proper conditions for their development.
care and education programmes for
young children are limited to nurseries and kindergartens,
solutions supporting parents in fulfilling their educational functions.
diversified
educational forms for children and their parents
develop their own educational skills;
participate, together with their children, in educational and developmental
activities;
influence management and curriculum of institutions providing early
childhood care and education.
The level of professional qualifications of preschool
teachers is not satisfying.
It is impossible to improve the quality of early education
institutions without increasing the competence of teaching
personnel. Poland currently lacks suitable curricula tailored
to develop preschool teachers' skills in such areas as:
working with multi-age groups, working with difficult children,
partnership-based cooperation with children's parents, child
observation, designing individualized child development
programmes, and recording children's progress.
Parents are often unaware of the fact that their conduct
towards their child has a decisive impact on the behavioural
patterns developed by the child in his/her adult life. Meanwhile,
during the first 2 or 3 years of a child's life parents are
practically the only people he/she has contact with . Therefore,
it is parents' educational skills, love and engagement
that constitute the largest potential to improve
the quality of early childhood education.
The results of American research prove that
differences in the level of parental skills condition
from 25 to even 50 % of differentiation in the so-1called school readiness of children* .
42
Children
Currently, parents have very limited opportunities to:
Young child in the United Kingdom - legislation and practice
In December 2004 the British government published its Ten Year Childcare
Strategy: Choice for Parents, the Best Start for Children.
Key assumptions of the Strategy were:
enabling parents to balance their work commitments and family life;
– flexible childcare services for all families with children aged up to
14 who need it, and 15 hours a week (ultimately aiming at 20 hours) of free early
education classes for all 3 and 4 year olds for 38 weeks a year;
– high quality of services delivered by qualified personnel, consistently
increasing their professional competence;
- substantial increases in tax credit for education and care classes.
availability
quality
affordability
choice and flexibility – greater choice of early childhood care and education services
The example of the UK is important for Poland
insofar as it proves that children related problems
may only be solved effectively by applying systemic
and complex measures. Additionally, it occurs that
flexibility of the childcare system is more essential
for its clients, i.e. for parents and their children,
than the amount of state budget funds.
43
After issuing the Strategy, the government of the United
Kingdom published a guideline for local governments,
preparing them to the new tasks. In July 2006
the Parliament passed the Childcare Act,
establishing the key role of local governments
in the implementation of the Strategy.
Children
The Report on Intellectual Capital of Poland
The programme is a practical implementation of the Strategy. It operates
through childcare centres functioning as 'department stores' combining various
services for young children and their families, including childcare integrated
with early education forms. The programme originated from the experience of
local programmes targeted at children threatened with social exclusion. Sure
Start Children's Centres offer support for families ranging from those expecting
a child to those with a 14-year-old child, including children with special educational
needs and disabled children.
Sure Start
The principles of Sure Start centres are:
working with parents and children;
services available to everyone;
diversity of services;
support provided 'since conception';
openness to the client – respect and transparency;
services adjusted to the needs of local communities – regular consultations with parents;
efficiency-orientated approach – reducing bureaucracy and simplifying funding procedures.
The Strategy stipulates that each British community will have its own Sure
Start Children's Centre by 2010.
An exemplary offer by ORANA Sure Start from Newry,
Northern Ireland:
meetings for parents and young children;
multi-sensory room;
health and midwifery visiting;
course for parents in speech and language development;
toy hire;
parenting skills programmes;
parent support groups;
minibus service;
family therapy;
trainings and courses for parents (e.g. in computer skills);
counsellor for families with disabled children.
Source: [ ].www.surestart.gov.uk
44
Children
Evaluation of the quality of early childhood education programmes
Example of an extract from the Child Behaviours Survey0-never; 1-very rarely; 2-rarely; 3-it's difficult to say; 4-quite often; 5-often; 6-always
1. Willing to help other children 0 1 2 3 4 5 6
2. Confident, not shy,
Able to agree with other children without arguing
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
0 1 2 3 4 5 6
3.
Happens to get embarrassed by compliments4.
Has his/her own5.
In the first stage of the evaluation (2006-2007), 480 children
were surveyed in different groups (in reception classes,
preschool centres, and traditional rural or urban kindergartens).
Currently, the survey tool is being "standardized”, i.e. tested
for its usefulness in a bigger statistical group.
Upon completion of this process, the Child
Behaviour Survey will become a universal tool for
evaluating educational programmes for young
children in Poland.
45
Source: The Komeñski Foundation1
Children
Evaluation survey within the programme “When there is no Kindergarten”
(in Polish: “Gdy nie ma przedszkola”) (2006-2008) consisted in comparing various
groups of children:
those participating in the programme, and those who did not take part in any form of early
childhood education1. What was evaluated was not the so-called school maturity, but
advancement in the key areas to psychosocial development
of a child: self-confidence, perseverance, curiosity, and social skills.
A team of experts (including scientists and practitioners in pedagogy and psychology, as
well as the research team members) designed a 20-question survey (in two versions: for
parents and for pedagogues), which enabled to operationalize the above notions.
In other words, it identified the everyday behaviours and attitudes in which the above-
named psychosocial qualities express themselves. The researchers evaluated behaviours
of children in respect of the four areas of development indicated above.
The Report on Intellectual Capital of Poland
1 Source: High/Scope Educational Research Foundation [ ].http://www.peelearlyyears.com/pdf/Research/INTERNATIONAL%20Early%20Years/Perry%20Project.pdf
Measuring the quality and the effectiveness of early
childhood education programmes is vital to ensure
that the youngest generation is prepared to meet future
challenges, and to plan expenditure on early childhood
education reasonably.
Good evaluation research:
is based on clear assumptions from which it follows
explicitly what has already been surveyed and what has
not; it must be clear what areas the research outcomes
can be applied to;
studies areas evidently related to objectives of
the educational programme.
This refers to the basic requirement concerning
the quality of early childhood educational
programmes: deliberate and well defined educational
aims and methods of achieving them (in the curriculum),
and teachers prepared to their implementation.
No reliable evaluation is possible without reflection
on the educational programme, as well as on its
aims and tools.
46
Children
Similar research projects have been conducted in the United States and in Eastern Europe
for many years.
The High/Scope Perry Preschool Study, carried out in the US, is one of the better known
examples of evaluating the effects of early childhood education programmes. The Study,
launched in 1962, examines the lives of 123 African Americans born in poverty and at high
risk of failing in school.
From 1962 to 1967, at ages 3 and 4, the subjects were randomly divided into a programme
group that received a high-quality preschool programme based on High/Scope's participatory
learning approach and a comparison group who received no preschool programme.
In the study's most recent phase, 97% of the study participants still living were interviewed
at age 40. Additional data were gathered from the subjects' school, social services, and
arrest records.
The study found that adults at age 40 who had the preschool program had higher earnings,
were more likely to hold a job, had committed fewer crimes, and were more likely to have 1graduated from high school than adults who did not have preschool .
Success story: Tato.netMr Dariusz Cupia³ is one of the founders of the Tato.net Foundation.
The aim of the Foundation is to draw the attention of both fathers and the entire
society to the importance of the relations between fathers and their children for
the development of the latter.
The Foundation teaches fathers how to improve their children's upbringing,
but not exclusively. It also sets itself a task to change the social climate
around the role of the father in the process of upbringing children. The Tato.net
Foundation publishes books on parenting and paternity.
Moreover, the Foundation holds conferences and workshops all over Poland to
help fathers to re-establish and improve their relations with their children.
47
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=2FILM
Children
The Report on Intellectual Capital of Poland
SUMMARYGovernments are responding to unfavourable demographic trends by developing
pro-family policies. They are aimed at preventing a drastic decrease in the number
of children per family, reducing poverty, and supporting child development.
The best pro-family policies are characterized by comprehensiveness and use a variety
of tools such as:
Source: ¹ OECD, "Babies and Bosses, Reconciling Work with Family Life”.
At the same time, providing parents with financial benefits on condition that one of them
chooses not to work professionally and look after children seems reasonable, but often
proves ineffective. Such solutions destroy incentives to work. As a result, employers assume
that women will choose to stay at home, which in turn drives them to reduce the number
of women employed and investments in women's professional development1.
financial incentives
personal tax allowances per each family member
maternal leaves
flexible workplaces
, such as systems of family tax benefits designed to ensure financial
advantages for both working parents;
, which is anti-discriminatory
regarding different groups of tax payers;
, which are more effective if they are short but well paid;
, which are more family-friendly due to offering part-time jobs,
flexible working hours, and possibility to take leave in case of child's illness, i.e. extremely
important and convenient solutions for parents trying to reconcile their work and family life.
48
Children
In the long run, this translates into greater prosperity, better health, and lower crime rates².
As James Heckman, winner of Nobel Prize in Economics, argues,
investments in human capital of the youngest children yield the highest
returns, and are profitable not only for the children themselves, but also
for the entire society¹.
high
profits
low
profitspoor
abilities
great
abilities
rate of return
on education
Age
Achieving the above-mentioned profits requires combined
effort of all Poles, including parents, educators and doctors,
supported by rational state policies that will help Poland
to face key challenges discussed in this chapter:
low number of children per family, and the necessity
to provide better support for families;
reducing child poverty;
improving children's access to education by providing
more diversified and flexible forms of early childhood
education and a greater number of institutions offering
childcare services;
increasing parent's educational skills and involvement
in respect of the upbringing and early childhood
education of their children.
¹ J. Heckman J, “Invest in the Very Young” (University of Chicago Press, 2006).² K. Lucas, "Investing in Infants and Toddlers: The Economics of Early Childhood” [ ]. http://www.zerotothree.org/policy/pdf/The%20Economics%20of%20Early%20Childhood%20FINAL.pdf
Source:
49
Children
The Report on Intellectual Capital of Poland
Pupils
Why is it worth to educate children in Poland?
What is the quality of Polish education?
What can Poland learn from others?
51
Pupils
The Report on Intellectual Capital of Poland
Do Polish schools develop skills whichchildren will need in their life?
Compared to other EU Member States, Poland achieves results exceeding the average only in reading literacy¹.
0 5 10 15 20 25
Portugal
Greece
Italy
Spain
Poland
Hungary
Sweden
France
Ireland
Austria
Belgium
Czech Rep
Germany
Netherlands
Finland
Source: OECD, PISA 2006: Science Competences for Tomorrow's Word, Vol. 1 (2007)
Finland
Ireland
Belgium
Netherlands
Poland
Sweden
Germany
Austria
United Kingdom
France
Czech Rep.
Hungary
Italy
Portugal
Greece
Spain
0 10 40 6020 30 50
% of school children with good
and very good results in the PISA
tests in reading literacy
0 10 40 6020 30 50
Finland
Belgium
Sweden
Germany
Austria
Ireland
France
Poland
Hungary
Czech Rep
Spain
Portugal
Italy
Greece
Netherlands
% of school children with good
and very good results in the PISA
tests in mathematics
% of school children with good
and very good results in the PISA
tests in natural sciences
52
Pupils
United Kingdom
United Kingdom
1 Source: UNDP, “Edukacja dla pracy. Raport o Rozwoju Spo³ecznym – Polska 2007” (Warszawa, 2007).
demand in Poland towards jobs requiring high qualifications, including mainly perfect
knowledge of mathematics and/or natural sciences.
It is estimated that by the year 2030 the level of employment in the sectors of science
and information society services will have increased
more than three times, and in the high technology industry – by 175%.
The shift will be caused, among other, by the following factors:
development and globalization of the market of the most advanced services (offshoring);
increased demand for new technologies, particularly those related to biotechnology;
increase in ecological investments, connected with the implementation of EU requirements,
and to the utilization of EU structural funds; 1 development of IT infrastructure .
It is expected that within the nearest decades there will be a significant shift in the workforce
Polish educational institutions – primary, lower secondary, and upper secondary
schools – are responsible not only for preparing their pupils for further education,
but also for laying foundations for their future careers in adult lives.
This leads to a justified concern about the ability of Polish
schools to prepare their pupils properly to the requirements
of higher education institutions, and about the capability
of the latter to produce highly qualified professionals.
The above-mentioned results are merely average, and they
have not been improving for the recent years (2003 and
2006 PISA tests).
Unfortunately, out of the three areas evaluated by
the international PISA testing, Poland has the worst
results in scientific and mathematical literacy.
53
Pupils
The Report on Intellectual Capital of Poland
1 Source: OECD, “PISA 2006: Science Competencies for Tomorrow's Word”, Vol. 1, (2007).
Ineffectiveness of Polish schools with regard to developing cognitive competencies is also
reflected in the fact that Polish children achieve their merely average results in mathematics
with a disproportionately large effort.
1According to the OECD data , Polish pupils spend more time on learning mathematics
than children in any other EU member country: 69% of Polish pupils declare it takes them
over 4 hours a week, while in Holland and Spain this is true for 31% and 19% school
respectively. By contrast, as regards the amount of class work devoted to learning science
in Poland, it is one of the least in the EU.
In order to provide Polish children with qualifications necessary for succeeding in
the contemporary world, schools in Poland must become more effective in
developing their pupils' cognitive competencies, especially those related
to mathematical and scientific literacy.
Moreover, they must improve developing children's social skills.
54
Pupils
How to improve the quality of the teaching personnel's performance?
The influence of a good teacher upon a child cannot be overestimated.
has proved that pupils with similar abilities, but working with different teachers – one of them a high performer, the other a low performer – achieved drastically divergent
1results within three years .According to the overwhelming majority of experts in the field of education, teachers' influence on the level of school attainments of their pupils is of key significance, outweighing the importance of such factors as the class size, school facilities and equipment, or expenditure on education.
Singapore, which repeatedly achieves best results in the PISA tests, spends on education less than 27 out of 30 OECD member countries.
Research conducted in the USA (see diagram on the left)
Source: ¹McKinsey&Company, "How the world's best-performing school systems come out on top” (2007) [ ].http://www.mckinsey.com/App_Media/Reports/SSO/Worlds_School_Systems_Final.pdf
55
Pupil's level of attainment against the results
in his/her age group
Pupil's age
100%
50%
0%
8 years 11 years
undan ffecti
ea
er e
ve t cher
d a iniv e ch
un er n effect e t a er
90%
37%
53% difference
Pupils
The Report on Intellectual Capital of Poland
Source: ¹ J. Zawadowska, "Nauczyciel jako wychowawca - czego nie chc¹ uczelnie” (Warszawa, 2008).
Effective teachers constitute one of the essential factors of the education system success. Good
schools, also in Poland, employ and train teachers who possess the ability to pass knowledge,
are well acquainted with educational techniques and methods, and are familiar with the anthro-
pological foundations of pedagogy. Good teachers continue their own education because they
are willing to continuously improve their performance. Their motivation is internal, and does
not depend on the external system of promotions or remuneration.
The world's best educational systems, e.g. in Finland or Singapore, as well as good schools in
Poland, apply practical training systems for future teachers, where special emphasis is put first
on attending colleague teachers' classes, and then on conducting classes independently.
Unfortunately, the overwhelming majority of teachers trained to work in Polish schools of st ththe 21 century are still educated according to the 19 century model, in which the emphasis
is laid on equipping future teachers with encyclopaedic knowledge of the history of pedagogical
and psychological doctrines. Issues concerning the neurobiological aspects of the learning process
are covered only marginally and in an outdated way, without providing any practical training in
this respect. Developing the interpersonal skills of future teachers, which are so important not
only in the teaching process, but also for a better cooperation with other teachers and parents, 1is completely neglected . It should be noted that the educational offer of Teacher Improvement
Centres is a valuable method of complementing and updating the knowledge of teachers and
education management personnel. Nevertheless, a model of education where fresh graduates
are compelled to immediately take intense improvement courses enabling them to fill basic gaps
in their education, is irrational and costly.
The status of the teacher must be, on the one hand, defined
by a "knowledge worker” model, i.e. a tutor preparing young
people to follow the principle of life-long education. On
the other hand, the teacher's status should be that of an
intellectual, participating in cultural and artistic life and in
the authentic education of society. Strengthening the
bureaucratic status of the teacher, defined in the Teachers'
Charter and in the relevant regulations on teachers'
promotions and qualifications, is not a step in the right
direction.
Teachers in Polish schools are quite frequently excessive
individualists, who often say: "What matters are my class,
my course, and me”.
While it is advisable that teachers enjoy properly understood
autonomy, their isolation from colleague teachers lowers the
overall performance of their school. From the pupil's point
of view it is important to deal with a team of pedagogues
able to work cooperatively on the school's curriculum,
assessment system, and rules of conduct.
What must be changed is the attitude towards
the role and the status of the teacher.
The Polish system of training and promoting teachers is faulty.
56
Pupils
1The Polish system of training and promoting teachers is faulty .How to ensure the inflow of talented teachers?
Can the majority belong to the elite?
This rhetorical question illustrates the condition of the Polish teacher promotion system eight
years after its introduction. Originally, the group of certified teachers was to comprise only 'the
very best of the best' pedagogues. Currently, it constitutes the largest group of teachers,
and, given its present growth dynamics, it will soon account for more than half of the teaching
profession in Poland. Due to the fact that teachers' salaries are closely dependent on their
promotion levels, the existing system offers certified teachers no motivation for further
development.
It is necessary to reform the teacher promotion system so that it acquires more
motivating and selective character. Teachers' remuneration should be closely
connected with their performance.
Teachers' promotions are a formal procedure,
and not a way to award the best teachers.
Source: System Informacji Oœwiatowej MEN / Educational Information System of the Polish Ministry of National Education 1
57
trainee teachers
contract teachers
appointed teachers
certified teachers
Pupils
The Report on Intellectual Capital of Poland
The Polish system of training and promoting teachers is faulty.
Poles are used to thinking that a low quality teaching results from low remuneration
in the education sector.
An average teacher in Poland earns about PLN 3,000, which is approximately the median
national pay. However, there is a
A certified teacher earns, on average, 2.5 times as much as a trainee teacher. Such a spread is 1not present in any other OECD country .
At the same time, a teacher's salary shows little dependence
on the character of his/her work, e.g. on the level of the education institution he/she is
employed by. Little selectivity of the Polish teacher promotion system is yet another problem.
Today, however, the problem lies not so much in the level
of teacher's salaries as in the whole remuneration system, which is not
sufficiently motivating and entails negative selection of candidates for this job.
huge gap between the average salary of beginning
teachers and that of certified teachers.
This hinders the inflow of young, talented
teachers to the profession.
Source: ¹ OECD
58
Pupils
1 Source: System Informacji Oœwiatowej MEN (Educational Information System of the Polish Ministry of National Education).
Improving the quality of Polish education requires increasing the attractiveness
of remuneration received by beginning teachers. Currently, its level in Poland 1is lower than in any highly developed country .
Nonetheless, the unattractiveness of salaries of experienced
teachers is a myth. Compared to other countries, the situation
in Poland in this respect is at least good.
Yearly remuneration of a beginning teacher
in a primary school against GDP per capita
Germany
Spain
Denmark
Portugal
Scotland
Netherlands
Czech Republic
Finland
Belgium- Flemish
Greece
Italy
Belgium -French
Austria
France
Ireland
Norway
Poland
Hungary
0,62
0,66
0,68
0,73
0,77
0,79
0,84
0,86
0,87
0,89
0,90
0,91
0,92
0,92
0,99
1,01
1,16
1,30
0 0,5 1 1,5 2 2,5
Poland
Norway
Hungary
SwedenFranceAustria
ItalyFinland
GreeceDenmark
Belgium -French
Czech Republic
Netherlands
SpainScotland
PortugalGermany
Switzerland
0,74
0,89
0,96
1,03
1,04
1,04
1,05
1,06
1,14
1,18
1,19
1,19
1,20
1,24
1,29
1,33
1,35
1,47
1,48
1,62
1,62
0 0,5 1 1,5 2 2,5 3
Irlandia
Belgium- Flemish
United Kingdom
Yearly remuneration of a teacher with a 15-year experience
in teaching in a primary school against GDP per capita
59
Pupils
The Report on Intellectual Capital of Poland
How to develop pupils' talents?
The myth of a small class?
Talents will not thrive in a system based on equalization and levelling.
Poland abounds in talented youth. Polish pupils often take top positions in international contests.
Source: ¹ K. Konarzewski, “PIRLS 2006. Jak czytaj¹ dzieci w Polsce i na œwiecie“ (Warszawa: CKE, 2007). ² McKinsey&Company, “How the world's best-performing school systems come out on top” (2007) [ ].http://www.mckinsey.com/App_Media/Reports/SSO/Worlds_School_Systems_Final.pdf
60
In the years 2001-2006 the number of pupils per class continued
decreasing all over the world. That, however, did not result
in the improvement in pupils' attainment. There was no
betterment in countries where the number of pupils per class
was lowered most significantly (e.g. in Lithuania), and in some
of them (e.g. in Romania) a worsening trend was observed.
The international comparison of school attainments showed
that the countries with up to 20-pupil class size had meaningfully
lower average results (489) than those with 21-30 pupils 1per class (504) . The same tendency occurs in Poland.
Paradoxically, the findings of neither Polish nor international
research show any evidence that smaller class size results in
better pupils' attainment . Out of 112 research projects run
all over the world, 103 did not reveal any substantial positive
correlation between reducing class size and pupils' performance, 2or even showed a negative correlation in this respect . Moreover,
it cannot be forgotten that reducing class size entails higher
demand for teachers, which increases the costs of education.
An individualized approach to teaching does not require lowering
class size. It is possible to introduce it in large classes, provided
that adequate educational tools are applied, such as: individual
feedback, team learning, consideration for individual learning styles etc.
develop his/her potential.
Little diversification of the educational offer on the level of the system, school and
class reduces the possibility of adjusting the teaching procedures and the curriculum
to the individual needs and abilities of pupils.
Good systems of education are introducing increasingly more visible
diversification of curricula and educational paths for children within the same class, which
enables schools to individualize the learning process. Unfortunately, the majority of Polish
schools are still far from putting into practice the idea of personalized education, whose core
aspect is that schools should make an effort to adapt to diversified needs and individual abilities
of pupils instead of focusing on adjusting each individual pupil to the offered model of teaching.
Therefore, a question arises how not to waste those talents and enable each child to
One school model and one curriculum
for all pupils make school suitable for nobody.
The days of 'mass education' based on one curriculum for all are coming to an
end. Children are too precious resource to fail to give each of them sufficient
individual attention.
An individualized approach and equal access to education for
all children have helped Finland to persistently come top in
the international PISA tests.
Link: http://www.innowacyjnosc.gpw.pl/kip/index.php?m=16/
Pupils
1 Source: M. Gurian, K. Stevens, "The Minds of Boys. Saving Our Sons from Falling behind in School and Life” (Wiley, 2007).
Each pupil should have his/her own personal improvement project, which plans his/her
educational goals with consideration for the pupil's individual learning rhythm.
Such pre-assessments should work on
the assumption that each pupil possesses a talent.
Moreover, it should be taken for granted that high abilities in one area are usually
accompanied by lack of interest and abilities in others. Meanwhile, it is the poor results
of a pupil, not the good ones, that are paid a disproportionately great attention by schools.
Teachers, in turn, tend to avoid conducting extra-curricular classes focused on developing
pupils' talents, as such activity is poorly-paid. Another disadvantage of Polish schools consists
in failure to provide educational and career counselling for pupils, which makes it more
difficult for them to enter the labour market after graduating school.
Pupils'
evaluation should be based on individualized pre-assessments that would involve
forecasting individual pupil's achievements.
Talent development in Polish schools will be impossible without systemic
solutions that will enable schools to monitor each pupil's achievements
regularly and against standardized criteria.
The existing teaching model applied by Polish schools can be traced
back to the days of the industrial revolution, when school was expected
to prepare large groups of people to work for the developing industrial
sector1. This schooling model does not, however, satisfy the needs
of the knowledge economy, in which school must be oriented at
searching for and developing talents, and thus, at producing the future
creative class.
Introducing a more individualized approach to teaching is a long-lasting
process and demands numerous changes. For this reason its implementation
must not be delayed.
61
Pupils
The Report on Intellectual Capital of Poland
Source: ¹ P. Mateju, M.L. Smith, P. Soukup, J. Basl, “Determination of College Expectations in OECD Countries” in: “Czech Sociological Review”, Vol. 46, No. 6 (2007).
Norway
Spain
Hungary
CzechRepublic
Greece
ItalyPoland
Finland
Germany
Sweden
France
BelgiumIrelandAustria
Portugal
United Kingdom
0,400 0,600 0,800 1,000 1,200 1,400 1,600 1,800 2,000
0,700
0,600
0,500
0,400
0,300
0,200
0,100
Slovakia
Interdependencies between educational careers and students' abilities
Inte
rdep
enden
cies
bet
wee
n e
duca
tional ca
reer
s and the
soci
al and e
conom
ic s
tatu
s of th
e pare
nts
Can education help to equalize life chances?
The educational process in Poland favours deepening
social divisions to a much greater extent than in other
countries.
Diagram interpretation
PISA surveys show that Poland belongs to the group
of countries in which social background has the strongest
impact on the educational choices. In Poland, more often
than in other countries, choosing the educational path is
determined by the family's social and economic status,
rather than by the pupil's abilities. A number of factors
contribute to this, including poor accessibility of kindergartens,
insufficient efforts to combat social segregation in schools,
and inefficient higher education funding system.
Additionally, the Polish state fails to make sufficient use
of education as a tool in the regional development policy.
1The authors of this critical analysis , based on the 2003 PISA
data, estimated (applying the logistic regression method)
the impact of social background and abilities of pupils in the final
year of lower secondary school ('gimnazjum') on his/her choice
of the educational path. As shown in the diagram, Poland is placed
in the group of countries with an average influence of pupils'
abilities on their educational careers. However, there are only
two OECD countries, namely Italy and Hungary, where the family's
social and economic background has a stronger impact on pupils'
educational choices than in Poland.
62
Pupils
How to improve the cooperation between parents, teachers, and pupils?
Parents rarely establish regular cooperation with teachers. Teachers are often confronted by
parents, and vice versa.
The education system fails to recognize the educational impact of home, and it is school
that is generally perceived as the main educational centre. School and home do not rely
on each other, are often in conflict, or discredit each other. Pupils, especially those attending
lower secondary or upper secondary general school ('liceum'), are 'isolated' from their family
environment. Lack of support from parents results in pupils' poorer attainment and in their
increasing reluctance to learn. The pupils who suffer the most in this respect are those from
one-parent families. In their case, lack of parents' support leads to more frequent self-1destructive attitudes and poorer results at school .
Best results are achieved when parents and teachers
cooperate on planning their children's and pupils'
development, and share their tasks responsibly.
The system of education should recognize the educational
role of the family environment, and support its development.
Thus, it is necessary to shift the responsibility for children's
upbringing to their parents, and to equip them with effective
tools for their cooperation with school.
When pupils develop in a consistent environment, both at
home and school, they are provided with all the prerequisites
for succeeding in school and in life.
Pupils from one-parent families are more likely2to develop self-destructive behavioural patterns
I have taken drugs this month I have drunk alcohol this month
lower secondary school pupils from one-parent families
lower secondary school pupils from two-parent families
0%
10%
20%
30%
40%
3%7%
27%33%
Source: Raport roczny programu spo³ecznego “Szko³a bez Przemocy” (Annual Report on the Social Programme “Szko³a bez przemocy” [School without Violence]) (Warszawa, 2008) [ ]. Social Programme “Szko³a bez przemocy” (Warszawa, 2008) [ ].
1 ² Diagram from the Annual Report on the
http://www.szkolabezprzemocy.plhttp://www.szkolabezprzemocy.pl
63
Pupils
Poor cooperation between school and home
Cooperation
The Report on Intellectual Capital of Poland
1, 2 Source: P. Œleszyñski, "Ekonomiczne uwarunkowania wyników sprawdzianu szóstoklasistów i egzaminu gimnazjalnego przeprowadzonych w latach 2002-2004 “ (Warszawa: PAN, 2004). 3 Raport roczny programu spo³ecznego "Szko³a bez Przemocy”(Annual Report on the Social Programme "Szko³a bez przemocy” [School without Violence]) (Warszawa, 2008) [ ]. http://www.szkolabezprzemocy.pl
The level of parents' education
An effective system of education should reconcile the principles of egalitarianism and elitism in its functions.
conditions pupils' achievements to a large extent. Utilizing this phenomenon in school environment, by encouraging well-educated parents to become more involved, would result in strengthening the educational role of school. It may seem controversial to support the good ones in becoming even better, especially when the weaker ones are left unassisted. However, developing pupils' talents properly includes helping children of well-educated parents as well.
Children's school attainment is closely connected with their parents' level of education1.
Average standardized results of a test
for sixth-formers conducted in the years
2002-2004 in gminas
Share of population aged 15 and more
with university education in gminas in 2002
The family impact is ESSENTIAL.
The best educational achievements are determined
by parents' sense of responsibility for their children's
educational process and good schooling conditions,
co-existing in the local community. If there is no bilateral
interest in children's educational success, good patterns
and solid knowledge acquired at school may be squandered
by the negative influence of the family environment. By
analogy, good patterns adopted at home may be eroded
by the harmful impact of a badly organized school which 2is not prepared for fulfilling its educational role . Meanwhile,
the results of Polish research indicate that only slightly more
than half of Polish parents attend parents' evenings, and
92% of those who participate in them do not maintain 3any other contact with the school !
64
Pupils
Can everybody be taught in the same way?
It is not a whim to differentiate school curricula and to adapt them
to pupils' needs and preferences. Differentiation in learning styles is
a fact, preconditioned by many factors including the pupil's gender.
Results of the international PISA tests, as well as of those taken by
the sixth-formers in Poland, confirm that there are
. In most of highly
developed countries the method of teaching appears to be tailored rather
to girls' needs, which leads to an 8% difference in school attainments between 1genders in the OECD countries . Meanwhile, according to the findings of British
research,
Failure to satisfy children's needs, in particular at the beginning of their
educational career, results in genuine discrimination.
significant differences
between boys' and girls' educational achievements
70% of boys have special educational needs, while the same 2proportion among girls is significantly smaller .
Naturally, gender is not the only factor determining differentiation
of the needs in terms of the learning environment. Another
important factor here is each pupil's preferred learning style, which
is conditioned to a significant degree on the neurobiological level.
Source: ¹ Centralna Komisja Egzaminacyjna (Central Examination Board) [ ] ² OECD, “PISA 2006: Science Competencies for Tomorrow's World”, Vol.1 (2007). ³ HM Government DES, “Gender and Education” (London, 2007) [ ].
www.cke.edu.pl
http://www.dfes.gov.uk/research/data/uploadfiles/RTP01-07.pdf
65
Differences in the sixth-formers' tests results in the years 2002-20083
According to British research, the percentage
of children with special educational needs is higher among boys.
Ave
rage
val
ues
of st
andar
diz
ed
test
res
ults
Specific learning
difficulty
Behaviour, emotional
and social difficulty
Speech, language,
and communication
needs
Other
difficulty/disability
scoresboys girls
Finland
Ireland
Poland
Sweden
Belgium
Netherlands
Germany
United Kingdom
Czech Republic
Denmark
France
Hungary
Italy
Greece
Portugal
Slovakia
Spain
boys girls
PISA 2006 reading skills –
differences in results
between genders
Pupils
boys girls
The Report on Intellectual Capital of Poland
We are all born with innate preferences for using one of our hands, one of our eyes, and even
one of our eyes. We also possess a distinct preference for one brain hemisphere over the other. 1According to Carla Hannaford, Ph.D. , a pioneer of contemporary educational kinesiology,
schools are organized in a way that favours only certain learning styles, and methods of
assessing educational progress give advantage to pupils with a well developed left (logical)
brain hemisphere. Such pupils find it easy to do calculations and to categorize.
Intuition, imagination, sense of humour and the ability to create pictures are underestimated,
although they are of unquestioned importance in the life outside of school as well as in adult
life.
Teachers and managers in schools have insufficient awareness of different needs
of their pupils. A poor knowledge of educational tools, such as Dennison's method for
describing individual learning styles, and of techniques for working with pupils with different
types of intelligence or special educational needs, results in failing to meet the needs of
individual pupils, and thus, in hindering their full development.
Source: C. Hannaford, "Zmyœlne ruchy, które doskonal¹ umys³. Podstawy kinezjologii edukacyjnej” (Warszawa: Medyk, 1998) (English edition: "Smart Moves, Why Learning Is Not All in Your Head”).1
66
Pupils
According to the 2007 McKinsey report on systems of education in 31 OECD member
countries,
As other experts in educational issues point out, the quality of teachers depends to
a significant extent on methods of assessing their performance and on close relation between
their results and financial awards.
Particularly valuable as a method to assess teachers' performance is the so called
Educational Added Value Assessment System (EVAAS), which is gaining increasing popularity
in highly developed countries. In general, the method consists in comparing a pupil's actual
progress at school with the one that could be forecast on the basis of the initial level of his/her
knowledge.
it is crucial to attract proper candidates to the teaching profession,
and then to apply suitable selection and promotion mechanisms.
The restrictive selection criteria for educational studies candidates
in Singapore certainly contribute to achieving the
best educational results by this country1.
18
0 20 40 60 80 100 120
18
18
20
100
1 Source: McKinsey&Company, “How the world's best-performing school systems come out on top” (2007) [ ].http://www.mckinsey.com/App_Media/Reports/SSO/Worlds_School_Systems_Final.pdf
67
Candidates for education studies
Candidates admitted to education studies
Education studies students
Graduates in education studies
Teachers
Only one in five candidatesgoes through
the selection process
Pupils
The strategy of providing quality teachers – Singapore, Korea, Finland.
Key principle: Educational studies are for the best, and are perceived as one of the three
most prestigious fields of study. The main characteristics are: strict selection procedures
applied by universities to assess candidates' capacity to teach and learn; places for a limited
number of students; high standards of teaching; numerous job offers for graduates.
Effects:
high academic preparation of candidates for teachers;
high prestige of the teaching profession in the eyes of students and graduates;
high salaries for beginning teachers;
outstanding educational achievements.
The Report on Intellectual Capital of Poland
Success Story: „U Siemachy” AssociationThe story of Association shows that thanks to social engagement,
the surrounding reality can be effectively transformed. The civic association "U Siemachy”',
led by Reverend Andrzej Augustyñski, gathers people willing to help children and youth
from families that are unable to provide them with sufficient care.
Over 1,000 people benefit from various forms of assistance offered by the Association
every day.
The biggest success of 'U Siemachy' is undoubtedly the fact that many present members
of the Association were recipients of its help in the past, and owe the Association their
success in life. 'Siemacha' taught them not only to be self-reliant, but also to value and use
the opportunity of sharing what they have with others.
"U Siemachy”
68
FILM http://www.innowacyjnosc.gpw.pl/kip/index.php?m=4
Pupils
Success Story: Emil Korbus
Emil Korbus, a 14-year-old pupil from a small village school near Lublin, not only has
an exceptional for his age love for figures. Above all, he was unusually lucky to meet
a teacher who guided him in following his passion and developing his science talent
since the first years at school. At the age of 12, Emil was 6th in Provincial Mathematical
Olympiad.
Today, as a 14-year-old, he can easily solve mathematical problems included
in examinations for the secondary school certificate. His maths teacher devotes a few
extra hours a week on the accelerated learning classes conducted specially for him.
Emil also receives wise support from his parents. They encourage him to participate
in contests and Olympiads but do not force him to anything. They help him
as much as they can: his father drives him 4 km by tractor to the nearest bus station
every day.
69
FILM http://www.innowacyjnosc.gpw.pl/kip/index.php?m=3
Pupils
The Report on Intellectual Capital of Poland
The winner of the last International Olympiad in Informatics held in Croatia in 2007 was
Tomasz Kulczyñski from 4th Upper Secondary School (VI Liceum Ogólnokszta³c¹ce)
in Bydgoszcz. The previous edition of this contest (held in Mexico in 2006) was won
by Filip Wolski from 3rd Upper Secondary School (III Liceum Ogólnokszta³c¹ce) in Gdynia.
These are only the most spectacular instances of successes of Polish pupils in international
IT competitions.
Polish youth is talented. If this potential is to be fully utilized, more effort must be put into
fulfilling basic assumptions of an effective system of education:
SUMMARY
Albert Einstein: „ my students anything. The only thing I do is create proper learning conditions for them”.
I have never taught
70
The quality of the education system will be as good as
the performance of its teachers.
A good system of education ensures every child maximum
possible development
School is better when it cooperates with parents.
A modern school working for the needs of the knowledge
society must find balance between the principles of
egalitarianism
Existing teacher training and
remuneration system in Poland does not ensure proper recruitment
and selection procedures for the teaching profession. Moreover,
it does not provide teachers with proper conditions for learning.
Meanwhile, increase in pupils' school attainment results mostly
from improvement of the quality of teachers' performance.
. Developing each child's talents through
personalized education projects, differentiated on the level of
the system, school, and class, and respecting individual differences
between children with respect to their abilities and needs,
does not necessarily require decreasing the number of children
per class. Instead, is involves changing teaching methods and applying
proper teacher motivation tools.
Full development of every child requires involvement of his/her
parents and establishing their close co-operation with teachers.
(ensuring easy access to education for all children
and equalizing life opportunities for children from pathological families)
and elitism (searching for and developing talents).
2,
Pupils
Students
The Report on Intellectual Capital of Poland
Why is it worth to study in Poland?
How do Polish higher education institutions prepare students for their professional life?
What can Poland learn from others?
72
Students
IC Index for students
United Kingdom
Sweden
Ireland
Finland
Germany
France
Netherlands
Austria
Belgium
Czech Republic
Greece
Italy
Poland
Portugal
Hungary
Spain
0 20 40 60 80 100
This means that young Poles receive worse preparation for adult life, including entering
the labour market, compared with most of the other EU countries.
This disadvantageous position results to a significant extent from the following
statistics:
small number of Polish higher education institutions included in the so-called
Shanghai Ranking;
insignificant number of scientific articles per one million inhabitants;
very low level of educational subsidies for private-owned entities, expressed
as a percentage of GDP.
The following factors have a beneficial impact on Poland's ranking:
high percentage of population aged 20-24 having completed secondary or higher education;
lowest in Europe percentage of people leaving school early, i.e. people aged 18-24
having completed no more than lower secondary education, without enrolling in
any training courses afterwards;
still comparatively high percentage of graduates of higher education institutions in the fields
of science and technology per 1,000 people aged 20-29.
thThe Intellectual Capital Index for students places Poland 13 in the group
of 16 EU member countries included in this comparison.
73
Intellectual capital indexes have been based on the analysis
of the key IC indicators attributed to a given generation.
The full list of all 117 indicators used for the purposes
of Poland's IC model is available at:
www.innowacyjnosc.gpw.pl/kip/
Students
The Report on Intellectual Capital of Poland
How to improve the quality of Polish higher education institutions?
Poland is experiencing an educational boom.
It is necessary to change the character of the educational boom from
quantitative to qualitative.
The number of higher education students has increased from 394 thousand in the academic 1year 1990/1991 to over 2 million at present . The scholarization rate for the age
group 19-24 has reached 48%, being one of the highest levels in Europe. 500 students
per 10,000 inhabitants is a result that places Poland sixth in the global ranking.
However, the Polish educational boom is mainly of a quantitative nature. There has been
an increase in the number of students, fields of study, and, last but not least, institutions
of higher education.
The quality of academic teaching is far from perfect. In state-owned higher education
institutions the teaching staff are awarded mainly for their scholarly achievements,
and not for their educational performance. A certain number of students, although
obviously not all, attending non-state institutions of higher education focus on getting
a diploma rather than on acquiring knowledge. Even the best Polish universities: ththe University of Warsaw and the Jagiellonian University, are both placed below 400 position
2in the so-called Shanghai Ranking – a prestigious ranking of best universities in the world.
Meanwhile, not even one Polish university appears in the alternative ranking of École 3des Mines de Paris , including the world's best 400 Universities.
Due to the poorly performing system of maintenance grants
and scholarships for students, the access to higher education,
especially to the most renowned institutions, is considerably
more difficult for candidates from outside big urban
agglomerations (according to the Central Statistical Office
(GUS), the advantage in the percentage of higher education
students in the age group 20-24 of big urban agglomerations
over rural areas amounted to 13.5% in 2005). On the other
hand, the eligibility criteria for scholarships should be revised
in order to provide greater support for genuinely best students.
Unequal access
Source: ¹ Central Statistical Office (GUS), „Studenci szkó³ wy¿szych w Polsce w roku akadamickim 2007/2008” [ ]. ² Institute of Higher Education, Shanghai Jiao Tong University (2007) [ ]. ³ École des Mines de Paris (2007) [ ].
http://www.stat.gov.pl/gus/45_4291_PLK_HTML.htmhttp://ed.sjtu.edu.cn/rank/2005/ARWU2005Main.htm
http://www.ensmp.fr/Actualites/PR/EMP-ranking.html#chapter3
74
Students
Only two Polish universities
(University of Warsaw and Jagiellonian Univeristy)
are ranked among the world's 500 best universities.
Number of universities per country
in the Shanghai Ranking
Germany
United Kingdom
Italy
France
Netherlands
Sweden
Spain
Belgium
Austria
Denmark
Finland
Hungary
Ireland
Greece
Poland
Czech Rep.
Portugal
0 5 10 15 20 25 30 35 40 45 50
The Polish educational system is
poorly adapted to meet the needs of
a globally competitive economy.
1,00 2,00 3,00 4,00 5,00 6,00 7,00
Poland
Finland
Denmark
Belgium
Ireland
Netherlands
Austria
Sweden
Germany
Cyprus
Malta
France
United Kingdom
Czech Republic
Estonia
Luxemb.
Latvia
Slovenia
Spain
Romania
Slovakia
Hungary
Portugal
Bulgaria
Italy
Greece
Managers and entrepreneurs assess Polish system of education as poorly suited
to the needs of economy.
The results of both international and domestic research prove that higher education in Poland
still requires significant improvement to produce graduates equipped with qualifications suitable
to the needs of their future employers. According to the survey carried out by the World 1 thEconomic Forum , Poland takes 19 position in the extended EU in this respect, with grade
4 on a scale of 1-7. On the other hand, the survey conducted on a sample group of Polish
entrepreneurs has indicated, among others, that only 6% of them highly assess the decision
making skills of newly employed fresh graduates. Their project management skills are found
even less satisfying – as many as 81% of entrepreneurs consider them to be low, and 2the remaining 19% assess them as average .
The five-fold increase in the number of students in Poland over the last two decades may
be the reason for joy, but if the current quality of higher education teaching is not
increased, this success will be partial and short -lasting.
1 Source: World Economic Forum (2007) [ ]2 The Polish State Accreditation Committee (2007) [ ]
http://www.insead.edu/v1/gitr/wef/main/analysis/http://www.pka.edu.pl/index.php?page=matinf
Do universities meet the needs of
a globally competitive economy systems?
75
Students
1- fails to meet the needs of a competitive economy
7- meets the needs of a competitive economy
The Report on Intellectual Capital of Poland
The educational profile of Polish higher education
institutions is not suited to the needs of the Polish economy.
(percentage of students of different fields of study)
0 10 20 30 40 50
Education studies
Humanities, art studies
Social sciences, managerial studies, law
Natural sciences, mathematics,computer studies
Engineering and construction sciences
Agriculture, veterinary medicine
Medicine and welfare
Fields of study related to the service sectors
Poland
EU27
According to the assumptions underlying the Bologna Process,
a country's higher education system should prepare its students for
meeting the challenges posed by the contemporary society and
knowledge-based economy.
If higher education institutions offer fields of study that are incompatible with labour market
needs, the unemployment rate among graduates will increase, and the level of motivation
for undertaking higher education studies will decrease. One of the problems of the Polish
education system is falling interest in studying science and technology, which are of significant
importance from the perspective of knowledge-based economy. On average, 11.1 out of 1,000
inhabitants of Poland hold academic diplomas in natural and technological sciences. By
comparison, the corresponding average proportion for the EU countries is 12.9.
What is additionally disquieting here is a noticeable downward trend: in 2007 the interest
in studying engineering, technological and computer sciences among candidates
for higher education institutions dropped by nearly 6%. It is evident that there are
no proper incentives – either for students to choose the fields which are strategic
for the country's development (scholarships), or for higher education institutions
to increase the accessibility of studies in these fields by making proper allocations
of resources (funding mechanisms).
How to improve the usefulness of higher education?
76
Students
Favourable conditions for enhancing the usefulness of higher education can
be created by developing new methods of managing the quality of teaching
at academic institutions. It is one of the most significant trends observed in
higher education institutions worldwide, and a key element of the Bologna
Process.
In the past, the quality of university education was ensured by its elitist character and by
the restrictive regulations on both curricula and teaching methods. While higher education
is being increasingly popularized (which entails rising financial outlays) and differentiated
(various types of higher education institutions, different curricula and teaching methods),
it is impossible to maintain high quality of teaching with the use of traditional measures.
The accreditation system, still in the phase of development in Poland, appears to well
respond to its assumptions.
As it is emphasized in the ENQA (European Association for Quality Assurance in Higher
Education) report, it is still necessary to exert greater pressure upon institutions of higher
education so that they 1 effectively implement their quality management systems .
Source: 2 OECD, „Tertiary Education for the Knowledge Society. OECD Thematic Review of Tertiary Education” (2008).
1 [ ]http://www.enqa.eu/files/ESG_v03.pdf
The existing solutions regarding quality management fail
to sufficiently fulfil the following criteria:
Public funding for higher education institutions should be
allocated based on the evaluation of their academic
achievements and teaching process quality.
Evaluation of the results of a given institution should take
into account measurable results of the education process,
including the degree of graduates' preparation to enter the
labour market (based, among others, on the so-called Dublin
descriptors).
The decision-making bodies of higher education institutions
should include representatives of all groups involved, such as
students, businessmen, or the local / regional authorities.
Evaluation results achieved by a given institution in the above2-mentioned areas should be publicly available .
The quality of education is ultimately verified in the labour market.
What must be done within the next few years is changing
the focus of higher education onto the needs of the knowledge
-based economy, and introducing the best standards of managing
the teaching quality. Failure to do so will result in the loss of graduate's
credibility in the eyes of employers, and decrease in the prestige of
higher education.
77
Students
The Report on Intellectual Capital of Poland
How to modernize the teaching methods applied by Polish higher education institutions?
The necessity of improving teaching methods
changed only insignificantly during recent years. Meanwhile, the progress in information
technologies has made it possible for students and academic teachers to have much easier
access to knowledge and information than it used to be a decade ago. Nevertheless, not many
higher education institutions in Poland take full advantage of this potential.
Under the existing circumstances
The role of the teacher is not so much about passing knowledge as about creating favourable
conditions for students to learn. What is also indispensable is increasing the flexibility of
the studying process, and, in particular, broader popularization of such options as courses
within the so-called macro-fields, inter-field studies, or individualized curricula, including not only
the courses available at a given institution, but also those offered by other domestic or foreign
higher education institutions (ECTS – the European Credit Transfer System).
At many Polish higher education institutions the way of running classes for students has been
it becomes natural that the teaching models in
the higher education sector are evolving towards self-education, i.e. towards
learning processes focused on individual work, and cooperation in a group, with
the teacher performing as a mentor.
1 Source: „Perspektywy” (a Polish weekly magazine for secondary school pupils), No. 05/2008. ² European Commission „Erasmus. Success Stories” (2007) [ ]http://ec.europa.eu/dgs/education_culture/publ/pdf/erasmus/success-stories_en.pdf
This will undoubtedly require certain changes in the legal system, but also
acquiring new skills by the academic teachers, and their readiness to
introduce new interactive forms of teaching (e-learning, mentoring,
e-collaboration, individual and team projects).
Inspiration for positive change often comes from the outside. The world's
leading universities take pride in strong networks of relationships with their
environment; their authorities include representatives of the business world,
NGOs, and foreigners. Polish institutions of higher education have had little
contact with the business sector so far. It is not easy to encourage very
well paid practitioners (not employed by the educational institution) to
share their knowledge and experience with students. Nonetheless, the 1institutions which manage to do so achieve extraordinary results .
, including several dozen thousand
of scientists belonging to the Polish Diaspora in the United States. It is also
necessary to increase the participation of Polish academic teachers in
the European exchange programmes (e.g. Erasmus). Currently, not a single
Polish institution appears in the top twenty institutions of higher education
on the list of the most active participants in this programme, and there are 2only two Polish universities among the first fifty of them . Meanwhile,
the Charles University in Prague (Univerzita Karlova v Praze) is ranked first
on the list, and institutions from such countries as Slovenia, Romania, and
Hungary are included among the top twenty.
A great,
although hardly exploited today, opportunity for Poland lies in
the scientists who work abroad
Polish higher education institutions must develop wide networks
of external relations
78
Students
Development and motivation of teachers
academics. Both the algorithm of distributing public funds to higher education institutions
and the remuneration systems used by higher education institutions should motivate not
only to conduct scholarly research, but also to join projects implemented in cooperation
with the business environment, to continuously increase qualifications of the academics,
and to improve teaching methods. A problem at numerous Polish higher education institutions,
both state-owned and private, is insignificant transparency of the actual qualifications of their
teachers and inconsistent approach to assessing the quality of their teaching performance
and the level of their students' satisfaction with such tools as surveys or class inspections.
No improvement in the quality of teaching methods is possible without competent
79
Students
It is essential to increase the transparency, e.g. by making
the information on the teachers' academic c achievements
publicly available, and to introduce a system of awards
and promotions for teachers based on the results of their
performance evaluation.
Further challenges in the area of academic teachers'
professional development and motivation are as follows:
The Report on Intellectual Capital of Poland
The present legal regulations in the form of the Law on
Higher Education and the Act on Academic Title and
Academic Degrees do not comply with, or even
contravene the existing standards in highly developed
countries, leading in respect of academic and scientific
achievements (such as the Anglo-Saxon countries);
a particularly striking example here is the legally
sanctioned simultaneous employment of state-owned
higher education institutions' teachers with two, or even
more, institutions, which should be eliminated as soon
as possible;
Non-transparent procedures for recruiting and promoting
academic teachers limits the outside candidates' access
to vacancies at higher education institutions; at the renowned
universities in the Western Europe it is a rule to conduct
an open recruitment, which ensures access for foreign
candidates as well.
What attitudes among students should be developed?
Focus on lifelong education
Higher education studies are a ticket to adult life. More and more Poles are convinced
that higher education is a prerequisite for obtaining a good job. According to the authors
of „2007 Social Diagnosis”, 59% of households reported their willingness to see their
children holding a master's degree. Only 5.6% of Polish people aged 18-24 do not continue
their education after graduating from lower secondary school (compared to the 15.2% average
for the EU in this respect). Thus, it is evident that at a young age the Polish are willing to
develop. Unfortunately, the proportion of population aged 20-29 participating in Ph.D. studies 1was in 2005 on the level of 0.19% only, which is one of the lowest ratios in Europe .
For comparison, in Finland and Sweden this ratio is on the level of 1.33%, and 0.87%
respectively.
In comparison with more developed countries of Western Europe, Poland also lacks proper
educational offer and incentives for candidates for postdoctoral studies.
1Source: Central Statistical Office (GUS), „Studenci szkó³ wy¿szych w Polsce w roku akademickim 2007/2008” (2008).
80
Students
The participation of Polish students in the international 1exchange programmes is minimal
0 1 2 3 4 5 6 7 8 9 10
Belgium
Germany
United Kingdom
Sweden
Denmark
Czech Republic
Netherlands
Bulgaria
France
Greece
Hungary
Estonia
Finland
Portugal
Latvia
Italy
Slovenia
Spain
Lithuania
Poland
percentage of students from other EU countries doing their studies in a given country
percentage of students from a given country doing their studies in another EU country
in Poland increased by nearly 15%, their percentage is still
insignificant. It is an important challenge to promote mobility
among students and young academics, as well as greater
openness of higher education institutions to external
environment.
Meanwhile, Poland lags far
behind other countries in respect of student exchange,
including the flow of both outgoing and the incoming
students.
Additionally, more extensive international exchange of
academic staff is hindered by the existing Polish academic
career path, which is incompatible with those in other
countries. This results, among others, in depreciating
academic degrees and experience earned in other European
countries.
The immigration procedures for foreign students and academics
are still too complicated. Lack of regulations simplifying
the procedures for obtaining residence or work permits by foreign
students and teachers from outside the EU is most certainly yet
another major challenge facing the Polish educational system.
Although in the year 2007 the number of foreigners studying
Rotation of people results in a flow of
ideas and concepts; it is also a source of skills
developed thanks to the meeting of different
personalities and cultures.
Mobility
Source: ¹ Central Statistical Office (GUS) (2008) [ ].2 OECD (2007).
http://www.stat.gov.pl/gus/45_4291_PLK_HTML.htm
81
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The Report on Intellectual Capital of Poland
How to increase the efficiency of higher education institutions in creating new knowledge?Given the possessed potential, Poland is one of the least innovative countries
in the world.
The gap between science and economy is tremendous.
As regards most of the ratios indicating technological development and innovation level,
Poland ranks at the bottom of the scale compared to 27 other EU member countries.
In the global ranking of the World Economic Forum based on the „Executive Opinion Survey” thPoland is placed 56 worldwid¹.
The currently prevailing attitude that „science should be in its pure form, not degraded by
its practical usefulness” should be considered as the greatest sin. Applicability of knowledge
and science should be emphasised more strongly. The above-mentioned approach has unhappily
resulted in mutual distrust between the business sector and the academic environment, which
is being additionally increased by lack of effective regulations protecting intellectual property
rights within joint ventures of the business sector and higher education institutions.
Therefore, it is not surprising that the level of funds allocated to research and development
by business sector in Poland (expressed as % of GDP) is the lowest among EU or OECD
member countries².
Source: ¹World Economic Forum, „Executive Opinion Survey”, 2006 and 2007. ² OECD, „Main Science and Technology Indicators” (2006).
The contribution of Polish business in funding research
and development projects is insufficient
60,7
35,7
30,2
30,3
53,4
62,2
9
10,9
7,6
0% 20% 40% 60% 80% 100%
Poland
European
Union
OECD
budgetary funds business contribution other sources
82
Students
Source: ¹ World Economic Forum, „Executive Opinion Survey”, 2006 and 2007.
The cooperation between higher education institutions and business in
Poland is far from perfect.
Assessment of the degree of cooperation between the business 1sector and higher education institutions in research and development .
WEF
Ranking
Country Result
(% of the highest
score possible)
3 Sweden
4 Finland
6 Germany
10 Belgium
11 Denmark
12 United Kingdom
13 Netherlands
18 Ireland
19 Austria
27 Czech Republic
30 France
39 Portugal
44 Spain
56 Poland
70 Italy
80 Greece
79 %
78 %
76 %
73 %
72 %
72 %
71 %
69 %
68 %
58 %
55 %
51 %
49 %
46 %
43 %
41 %
Scientists should appreciate the role of technological implementations and running own
Businesses. Higher education institutions should carry out courses focused on 'the academic
entrepreneurship'. Students should start their own microbusinesses already during their
studies, using academic technology incubators.
Unsupported by strong relationships with the science sector, the Polish industry does not,
in fact, develop its own technologies or conduct its own research and development centres.
This poses a threat of civilizational collapse to Poland.
83
Students
The Report on Intellectual Capital of Poland
Examples of good cooperation between higher education institutions and business
Cooperation between higher education institutions
with business companies in the Netherlands
The Virtual Environmental Consultancy, operating
at the Open University of Netherlands in Heerlen¹,
was established in order to enable students to learn in a
practical context, in the process of properly organized
student trainings.
Source: ¹ Ivens W. et al., „Collaborative Learning in an Authentic Context: a Virtual Consultancy” (Open University of Holland, 2007).
1. The University notifies businesses and public institutions which
it cooperates with about the possibility to submit their research
questions to then be examined by students within their diploma theses.
2. Companies submit subjects they are interested in. After
preliminary feasibility study a decision to launch a given project is taken.
3. A plan of the project is made, including, in particular, establishing working
teams. The consulting service is performed mainly by students,
however, they work under the supervision of their teachers,
and in close cooperation with the project teams at a given companies.
4. Research realization often involves utilizing IT tools supporting group
work during the research projects. As a result, students not only obtain
expert knowledge in their field of study in a practical context,
but also develop their managerial and computer skills.
5. Finally, the project is evaluated. The main subject of assessment
is the curriculum of the university; students are asked
which courses have occurred the most useful in practice, which were
too theoretical, and what kind of knowledge they lacked.
84
The process comprises the following stages:
Students
Preparation for professional activity in Poland
1 Source: „Perspektywy” (a Polish weekly magazine for secondary school students), No 4/20082 OECD, „Tertiary Education for the Knowledge Society. OECD Thematic Review of Tertiary Education” (2008).
The Legal Clinic operating since 2005 at the Kozminski University functions on the basis
of the American model that has been employed at renowned American universities for 1many years .
The clinic deals with cases of different complexity in the field of civil and criminal law, as well
as labour and social insurance law. It provides fully professional services to those who cannot
afford a paid lawyer.
Such a solution enables students to learn how to put knowledge acquired during his/her
studies into practice, to shape attitudes which are essential to their professional career,
such as responsibility and conscientiousness, and to develop their abilities to work in a
team and to cooperate with a client.
Participation of the business sector in developing higher
education curricula in Australia
Enhancing the credibility of higher education institutions in the eyes
of employers is of key importance, as it is demand for graduates of a given
institution that increases the so-called 'graduate premium' for students.
In Australia, business sector representatives have been involved not
only as observers and reviewers of the performance of Australian
universities, but also directly in the phase of developing and delivering
university curricula.
The Council for Cooperation of Education and Business, established
in 2004, is expected to increase the practical value of higher education.
Such practices prove to be particularly effective in the fields of study
where graduation entails a professional certification process, e.g. in 2medicine .
The practices described above constitute excellent examples of solutions
ensuring stronger participation of the utilitarian component in
the educational process. Thanks to dealing with actual problems
and direct cooperation with external clients, students acquire new
practical skills and become more motivated to learn, while
the educational institution receives a reliable feedback on
the effectiveness of their own curricula.
85
Students
The Report on Intellectual Capital of Poland
Success story: Dominika Maj
Dominika Maj is employed by the Institute of Microbiology and Biotechnology of Maria
Curie-Sk³odowska University in Lublin. Her master's thesis on mutanase, an enzyme that
effectively fights dental caries, brought her the award for the best master's thesis in
biotechnology in Poland. Her invention is likely to contribute to launching an effective
anti-caries product into the market. Scientists from Lublin have received a grant enabling
them to continue their research on mutanase. If they are not forestalled by their competitors
from an American university, who are working on a similar project, their invention will
have a global dimension.
And Dominika Maj will have a significant share in it.
86
FILM http://www.innowacyjnosc.gpw.pl/kip/index.php?m=5
Students
SUMMARYOutlays on higher education are rising worldwide, which reflects its growing importance for
ensuring economic development. On average, OECD member countries already allocate
about 1% of their GDP on education. The participation of the private sector in funding
activities of higher education institutions is also growing.
Therefore, it is essential to meet the key components of the higher education mission,
which are:
developing human capital (mainly by providing young population with higher education);
building new knowledge (mainly by research and development pursued in cooperation with
the business sector);
sharing knowledge with its potential users (mainly by broad cooperation with
the external environment);
1intergeneration transfer of knowledge .
An increasing amount of funding
entails growing pressure on these institutions to prove the quality of their services.
1 Source: OECD, “Education at a Glance” (2008).
18510630,469,6United Kingdom
25413411,688,4Sweden
15316524,175,9Spain
52211614,086,0Portugal
b.d.20227,172,9Poland
13311122,477,6Netherlands
25411930,669,4Italy
10120817,482,6Ireland
16915721,079,0Hungary
13310913,686,4Germany
2081263,796,3Finland
7331293,396,7Denmark
7717015,384,7Czech Republic
2051236,393,7Austria
Source: OECD, Education at a glance” (2008).”
CountryPrivate
funding
Public
funding
Change in % share of
funding sources in
expenditure on higher
education institutions
between 1995 and 2004
% share of funding
sources in expenditure
on higher education
institutions in 2004
Private
funding
Public
funding
87
Students
The Report on Intellectual Capital of Poland
Adults
Why is it worth to work, invest, and establish businesses in Poland?
What can Poland learn from others?
89
Adults
The Report on Intellectual Capital of Poland
Poland's low ranking is caused to a considerable extent by the following statistics:
low rate of employment in the high-tech and medium-tech production sectors;
low computer literacy among the adult population of Poland;
insignificant number of patent applications filed with the European Patent Office
per one million inhabitants.
At the same time, the following factors have an advantageous influence
on Poland's status:
declared ethos of hard work;
large amount of time spent working.
thThe Intellectual Capital Index for adults places Poland 14 in the group
of the 16 EU member countries included in this comparison.
Intellectual capital: adults
United Kingdom
Sweden
Ireland
Finland
Germany
France
Netherlands
Austria
Belgium
Czech Republic
Greece
Italy
Poland
Portugal
Hungary
Spain
0 20 40 60 80 100
IC Index for adults
90
Adults
Intellectual capital indexes have been based on the analysis of the key IC indicators attributed
to a given generation. The full list of all 117 indicators used for the purposes of Poland's
IC model is available at: www.innowacyjnosc.gpw.pl/kip/
How can we create optimal conditions
for setting up and running businesses
in Poland?
How can we ensure continuous
improvement of competencies
of adult Poles, and an increase in their
occupational mobility and flexibility?
How to ensure sustainable
development for Polish companies and
attract foreign investments, resulting
in the creation of quality workplaces
of the future?
HUMAN CAPITAL
How to retain and attract talented
employees, scientists and businessmen
by improving the standard of living
in Poland and the country's
attractiveness?
ATTRACTIVE WORKING PLACES
BUSINESS ENVIRONMENT
QUALITY OF LIFE
Adult life in Poland
91
Adults
The Report on Intellectual Capital of Poland
How to ensure continuous improvement of the competencies of adult Poles?
William E. Deming once ironically said: “Learning is not compulsory…
neither is survival.”
succeeding in the contemporary labour market requires competing
not only against one's compatriots, but also against inhabitants of other countries.
Faced by such challenges as knowledge getting outdated at an increasing pace, or globalization
processes making it easier for entrepreneurs to move their businesses to places with more
competent and better trained employees, lifelong education becomes everyone's obligation
towards oneself and towards one's family and children. Naturally, it is a lifelong process.stThe labour market of the 21 century has become global, which is reflected in the fact that
approximately two million Poles have taken up jobs in the European Union countries so far.
Before 1990 there had been one and a half billion people in the global labour market. After
its enlargement to include China, India, and former Warsaw Pact member countries, the global 1workforce supply doubled up to 3 billion . Moreover, globalization has considerably facilitated
the process of transferring businesses and services between countries and continents.
In consequence,
HUMAN CAPITALPoland has so far been a beneficiary of the process of moving
business production abroad to the countries with cheaper labour
force. However, given the accelerated increase in remuneration,
workplaces requiring low qualifications may soon begin to be
moved abroad, to countries cheaper than Poland.
In order to remain competitive Polish people must continuously
improve their knowledge and skills.
The above-named gaps may refer to foreign language skills, ability
to use information technologies, as well as to numerous general
skills which are indispensable for remaining in the labour market
and managing to 'survive' in the information society.
The labour market status of young people who left school early, and
of those who used to work in the 'old' branches of the economy
is similar. They are often unemployed. The only chance for those
groups to avoid long-term labour deactivation, whish is costly to 2the society, is lifelong learning .
Given the differentiation of the group of beneficiaries of the lifelong
learning system in Poland, the problem consists in both lack of proper
educational offer, and the funding mechanisms which are inadequate
to the needs.
In countries from the former communist block programmes
of lifelong learning should fulfil yet another, critical function:
they should complete the gaps in competencies among
people aged 45+, who finished their formal education still
under the former political system.
Source: R. Freeman, “The Greatest Doubling: Labour in the New Global Economy” (Georgia State University, 2005). ² ” Edukacja dla Pracy – Raport o Rozwoju Spo³ecznym” (Warsaw, 2007).
1 UNDP:
92
Adults
Adult Poles are less active in acquiring
knowledge than their peers from other 2EU member countries .
Participation in any form of education
0 25 50 75 100
EU 25
Age
Cate
gori
es
% of population:
25-34
35-44
45-54
55-64
Sweden
Finland
Slovakia
Romania
Poland
Italy
France
Spain
Ireland
Germany
Denmark
Czech Republic
Depreciation of knowledge is inseparably connected with fast development of technology,
which, on the other hand, creates opportunities, as it results in the appearance of new
products, new services and even new industries. Experts from the Polish Academy
of Sciences (PAN) estimate that by the year 2025 the Polish labour market will have
provided from 250 to 300 thousand new workplaces in the knowledge-based professions, 1which will account for approximately 45% of all the newly created workplaces .
Access to the above-mentioned jobs will be reserved for those who will focus on
the continuous development of their qualifications. That is why the low percentage
of Polish people participating in the lifelong learning programmes is disquieting and constitutes
a significant barrier.
Source: 1 UNDP, “Edukacja dla pracy Raport o rozwoju spo³ecznym” (Warszawa, 2007).2 Eurostat (2006).
93
Adults
HUMAN CAPITAL
The Report on Intellectual Capital of Poland
How to encourage Polish people to greater occupational mobility?
thIn the middle of the 20 century in numerous countries, including Poland, a great number
of people had one job and one workplace for the most part of their lives. The occupational
traditions were often handed down from generation to generation: the grandfather worked
at the mine, the father worked at the mine, and the son also worked at the mine, and
the whole family spent their holidays in a seaside resort for miners.
stThe challenges of the new 21 century have resulted in the abrupt transformation of
the way we work. The world has accelerated its progress, and the resulting changes both
offer new opportunities and pose new threats.
stAn employee of the 21 century should be prepared for multiple occupational changes
during his/her life, concerning the employer, the place of his/her work (including the town/city
or the country) and the character of his/her job.
, rendering services which
have not been invented yet, and solving problems of whose existence we are unaware at
the moment.
Within the upcoming 10-20 years many
of us will work in sectors that are currently non-existent
Poles tend not to see any benefits in changing jobs, and they rarely decide to do so.
Source: 1 European Commission, “Eurobarometr 64,1” (2006).
Rapid changes also concern the form of employment.
Part-time jobs, task-oriented jobs, working at home,
and other flexible forms of employment will be gaining
increasing popularity. This will not only allow to lower
the costs and raise the efficiency, but also enable to
enhance balance between family life and career.
This is much below
the European average (40%) and the relevant proportion
in the leading countries, such as Sweden or Denmark,
where 70% of citizens view changing jobs as advantageous.
Only 29% of Poles consider changing jobs once
in a few years to be beneficial.
100%
90
80
70
60
50
40
30
20
10
0
SE EU-25 PTES LUIT HU PLDK NL FI DELV ELFR UKCZ LTBE
94
MTSK IE SI CY AT EE
Adults
HUMAN CAPITAL
Percentage of total population considering changing jobs1
Once in a few years is good, by country, 2005
Poles tend not to see any benefits in changing jobs, and they rarely decide to do so.
Even among the highly qualified employees in the sectors of science and technology
only 4.7% decided to change their jobs in the years 2004-2005. It is one of the lowest
ratios in Europe.
Planning to spend the whole professional life in one workplace
is unreasonable, for the given company may not withstand global
competition. Similarly, one should not plan to spend the whole
professional life focusing on one speciality, for the technological
progress may lead to its vanishing. For example, it is highly
probable that RFID cards will replace the cashiers in supermarkets, thas computerized diagnostics has already replaced 'the 20 century
mechanic' in car service stations. This means that there will be new
workplaces which will require completely different competencies.
95
Adults
HUMAN CAPITAL
The Report on Intellectual Capital of Poland
How to increase employee performance by ensuring the work-life balance?
1Poles work 2.5 hours longer per week than an average European . They do not avoid necessary
effort and are not afraid to face challenges. Nevertheless, they must learn to make better use
of their willingness to work and to improve their performance. Although for the last ten years
the productivity of labour in Poland has increased from 46% to 66% of the EU average,
the country still lags behind in all productivity rankings. Poland needs effective and satisfied
employees, who are able to realize their career ambitions, and, at the same time, have enough
time to spend with their families, to pursue their interests, to do sports, to keep fit, and to
consume cultural goods.
They belong to the most hard working nations in the world,
considering the average number of hours worked per week. At the same time, the percentage
of the adult Polish population not participating in the labour market is the highest in Europe.
The burden of developing the national economy rests on only slightly more than half of
the total adult population.
Poles work a lot, but not all.
QUALITY OF LIFE
Source: Eurofound (2006) 1 [ ].http://www.eurofound.europa.eu/areas/qualityoflife/eurlife/index.php?template=3&radioindic=175&idDomain=2
People in employment as a percentage
of the total population in the age group 15-64
0 10 20 30 40 50 60 70 80
Denmark
Netherlands
Sweden
United Kingdom
Austria
Finland
Ireland
Portugal
Spain
Czech Republic
Germany
France
Belgium
Greece
Italy
Slovakia
Hungary
Poland
The level of population's participation
in the labour market
in Poland is the lowest in Europe.
96
Adults
1 Source: 2
European Social Survey, 2002Work – life balance attitudes and practices in British workplaces, 2007, European Foundation for the Improvement of Living and Working Conditions
Professionally stale? Polish people work a lot, and they are the least satisfied with their
work-life balance, as compared to other Europeans1.Denmark
Finland
Belgium
Slovenia
United Kingdom
France
Hungary
Sweden
Germany
Spain
Bulgaria
Portugal
Slovakia
Poland
0 5 10 15 20 25 30 35 40 45 50 %
Percentage of respondents who are satisfied with their
work-life balance
(answers: 8-10 on a scale of 0-10)
The research carried out in the UK in 2007 indicates that as many as 63% of employers have
a positive attitude towards the idea of work-life balance, which is understood as flexible
working conditions and working hours. Only as little as 13% of British employers have not
implemented any mechanisms or practices related to work-life balance so far. What makes
employers well-disposed towards ensuring their employees the work-life balance is that they
have noticed its beneficial effects, such as improvement of their relationships with employees,
or stronger motivation and involvement of the latter (as declared by over 57% of
the employers surveyed within the research). The aforementioned balance has also resulted
in a significant improvement of employees' performance, and the decrease in their rotation 2and absenteeism (as reported by over 40% of employers) .
97
Adults
QUALITY OF LIFE
The Report on Intellectual Capital of Poland
How to increase the concern of the adult population about keeping fit and healthy?
In the economy based on human capital, health is an essential factor contributing to work
performance. Healthy people are more active and more willing to face new challenges. Healthy
people enjoy their life, and are focused on their development, career and family instead of
spending time on long-lasting and costly therapies or treatments.
This is much more than the European average, and it places
Poland among countries in which chronic diseases are the most widespread, and, as a result,
the activity of their population is reduced. More attention should be paid to prevention
in Poland. Focus on being fit and healthy should be a standard, especially considering
the fact that the average lifespan keeps increasing and people will need good physical
condition for a longer time.
Physical activity is an indispensable component of a healthy life style. It not only improves
our health, but also the way we feel, our metabolism and immunity. Moreover, physical activity
prevents and lowers stress, as it triggers the production of endorphins, otherwise known
as hormones of happiness.
A healthy life style cannot be just 'ordered' - it requires the state's efforts to promote it and
to provide a relevant infrastructure.
As many as 36% of Poles
declare that the level of their occupational activity is lowered due to a chronic 1disease or indisposition .
1Source: [ ].Eurofound (2006) http://www.eurofound.europa.eu/areas/qualityoflife/eurlife/index.php?template=3&radioindic=175&idDomain=2
Percentage of respondents who report suffering
from chronic diseases or dysfunctions
which affect their life activity
0 5 10 15 20 25 30 35 40
Italy
Ireland
France
Greece
Belgium
Austria
Portugal
Germany
Slovakia
Czech Republic
Denmark
United Kingdom
Hungary
Netherlands
Sweden
Poland
Finland
98
Adults
QUALITY OF LIFE
How to increase the participation of Poles in cultural life?
Source: Y. Masuda, “The Information Society as Post-Industrial Society” (Washington, 1981).2 J. Rifkin, “Wiek dostêpu. Nowa kultura hiperkapitalizmu, w której p³aci siê za ka¿d¹ chwilê ¿ycia” (Wroc³aw: Wydawnictwo Dolnoœl¹skie, 2003). 3 A. Stepniewska, “Przemys³ kultury w Polsce – aktualne wyzwania” (Warszawa: Fundacja Pro Cultura, 2007).
1
stApart from its traditional social and artistic aspects, the cultural life of the 21 century
is assuming yet another dimension, as it is becoming economically significant – as a source
for innovativeness, generating GDP and creating new workplaces. Culture impacts both
the quality of life and the national well-being.
1The IT revolution will result in more free time. ” We are slowly approaching the era
“[in which culture becomes the most important commercial resource, time and attention
become the most valuable goods, and people's lives become their final market. (…) We are
currently in the phase of a long-term transition from industrial production to the production 2of cultural goods. ” Indeed, the cultural and the entertainment industries belong to the most
dynamically developing economic sectors, they generate, on average, 2,6% of the EU GDP.
In Poland, according to the data of the Ministry of Culture and National Heritage from 2000, 3this proportion accounted for as much as c4.5% of GDP .
This relatively high contribution of cultural industries
to GDP is also reflected in the increasing demand for
cultural goods and in the comparatively high share
of expenses on cultural events in household budgets.
The share of expenses on culture in relation to the total
household expenses in Poland is at the level approximate
to to the European average.
It should be added, however, that satisfying the demand
for cultural goods, in particular among young people,
requires a long-term and consistent cooperation between
the government and territorial self-government units,
aiming at providing wise public patronage of cultural
institutions, including museums, galleries, theatres
and studio cinemas, and at continuous improvement
of the quality of such institutions. A fine and spectacular,
although isolated, example of a successful cooperation
in this area is the Warsaw Uprising Museum.
99
Adults
QUALITY OF LIFE
The Report on Intellectual Capital of Poland
Source: Eurostat, “Household Budget Survey”.1
Share of cultural expenses
in the total household expenses, 1999 (%)
4,3
4,5
4,7
2,4
2,7
3,0
3,3
3,3
4,0
4,2
4,4
4,5
4,9
5,1
5,2
5,4
5,6
5,8
0% 2% 4% 6%
2,6
2,7
4,0
4,1
4,3
Cyprus
Lithuania
Latvia
Poland
Czech Republic
Slovakia
Hungary
Italy
Greece
Spain
Luxembourg
Ireland
France
Austria
Belgium
United Kingdom
Finland
Norway
Germany
Sweden
Denmark
EU-15: 4,5
Estonia
Portugal
100
Adults
QUALITY OF LIFE
1Culture is an important element in every person's life, as it shapes one's humanity , sensitivity
to the external environment, and develops one's imagination. Imagination helps to generate
innovative solutions in the process of creative thinking, since it enables new combinations
of the already existing elements or facts. Therefore, the use of cultural goods fuels our
innovativeness and develops our ability to seek inspiration and utilize elements belonging to
one area in a completely different one. For example, a Polish pianist and composer, Józef
Hofman, used the clockwork mechanism of the metronome to construct windscreen wipers,
and thus contributed to the development of global motorization.
How to increase the innovativeness of enterprises?
STRONG COMPANIES - ATTRACTIVE WORKPLACES
1Source: Eurostat (2006).
Today's entrepreneurs should be innovative in any aspect of their activities. More and more
instances of Polish companies succeeding in global markets prove that there are entrepreneurs
in Poland who can effectively recognize global consumers' needs, build strong brands, and
conquer global markets. One of the main sources of their success is their innovativeness.
However, Poland still lacks global successes comparable to that of Nokia company, while
most of Polish entrepreneurs settle for the status of regional market players, copying
proven business models and products in local markets.
It is of key importance to think globally, and to discover the unsatisfied needs of customers
all over the world. This, in turn, cannot be achieved without efficient cooperation of business,
science, and artistic design, as in the contemporary world the added value of a product relies
to a significant degree on a creative combination of the above sectors.
If Poland aspires to compete globally, offering more than just cheap imitations
of foreign products, and intends to conquer global markets with its own products
and services, Polish entrepreneurs should pay more attention to seeking and
implementing new solutions, new methods of work, and new ways to communicate
with customers and business environment etc.
0 5 10 15 20 25 30 35 40 45 50 %
Sweden
Denmark
United Kingdom
Netherlands
Finland
Belgium
France
Ireland
Germany
Austria
Italy
Estonia
Hungary
Spain
Slovenia
Lithuania
Latvia
Czech Republic
Greece
Slovakia
Poland
Portugal
Bulgaria
Rumania
the knowledge-intensive services sectorPercentage of population employed in
Polish economy still lacks companies offering
innovative knowledge-based services, ¹whose development is a real chance for Poland .
101
Adults
The Report on Intellectual Capital of Poland
1 Source: World Economic Forum [ ].2 KPMG, “Czy warto inwestowaæ w innowacje? Analiza sektora badawczo-rozwojowego w Polsce” (2008).
http://www.insead.edu/v1/gitr/wef/main/analysis/
It is also essential to allocate public money wisely, including that from the EU structural
funds. However, the most recent research conducted by KPMG shows that
hat makes it even worse is that, despite the increasing accessibility
of those funds (especially within the EU operational and framework programmes), half
of the surveyed companies were not interested in using them to co-finance their R&D
activities or innovations. The main obstacle preventing businesses from using more public
funding for R&D is the complicated grant application procedures. This is probably the reason
why a certain number of big companies have not decided to use external assistance
programmes so far.
They prefer to spend their time and funds on the research work itself, rather than on 1filling in endless questionnaires, not guaranteeing obtaining any funds whatsoever .
nearly 80% of companies carrying out R&D activities have never used any form
of financial assistance coming from the public funds allocated to such
purposes. W
(1- under licences bought, or by imitating foreign companies
(7- by conducting official research projects and introducing
pioneering products and processes)
Acquiring technologies by organizations:
Country Result
1 Germany 6.08
2 Sweden 5.88
5 Finland 5.78
6 Denmark 5.54
8 France 5.50
11 Austria 5.38
12 Netherlands 5.31
13 Belgium 5.12
14 United Kingdom 5.10
20 Italy 4.66
24 Ireland 4.3925 Czech Republic 4.27
33 Portugal 3.87
35 Spain 3.82
43 POLAND 3.65
The ability to implement innovations is still insignificant;2
companies tend to imitate solutions applied by others .
102
STRONG COMPANIES - ATTRACTIVE WORKPLACES
How to strengthen the entrepreneurs' focus on strategic thinking?
1Source: Polish Confederation of Private Employers Lewiatan (PKPP Lewiatan), business research.
103
Adults
STRONG COMPANIES - ATTRACTIVE WORKPLACES
Polish companies still make insufficient investments, and the main reason cited 1by them is lack of strategy . This is understandable as all spending on research and
development must be adjusted to the business strategy and to the customers' needs.
Given the insignificant financial involvement of Polish companies in innovative projects,
as compared to that of their EU counterparts, it is even more important to use these
modest funds in a prudent way, i.e. in close relationship with the strategy realization.
Strategy seems to be an obligatory component of a successful business in the globalization
era. Scanning the business environment and adapting to the observed changes are standard
business practices, which are still unfamiliar to many Polish entrepreneurs. Meanwhile,
strategic thinking is what enables us to protect ourselves against potential threats and to take
opportunities arising from the changing environment. Entrepreneurs should plan their
business activities in a longer perspective than a month or two ahead in order to effectively
allocate their resources and ensure long-term success for their businesses.
Experts claim that the success of Polish companies in the nearest future
will rely on managers who view the company's activities in a
Nonetheless, the profitability occurs only after several years, needed
to accumulate a kind of shock related to entering the globalization
process. Still, taking risks is the inherent element of entrepreneurship
and that is why the above-mentioned profit deferral should not discourage
Polish companies; future long-term gains will pay for today's short-term
outlays and efforts.
At present, Polish entrepreneurs participate mainly on the demand side
of the global market; the commercial goal of many of them is to purchase
financially attractive products in the global market. Strategically thinking,
however, Polish entrepreneurs should try to participate more actively
in the global market as suppliers of goods and services.
In these circumstances, the only solution is to take risky decisions,
utilizing mechanisms of thinking and planning in strategic terms, in order
to grasp the diverse and changing environment.
global
perspective. In their opinion, globally operating companies
are considerably more profitable than the domestic ones.
Globalization
cannot be escaped, as it must be accepted that the market,
which more and more considerably affects the functioning of
the state, is global and increasingly unpredictable.
The Report on Intellectual Capital of Poland
1Source: Eurostat (2006).
104
Among the 1,000 companies allocating the greatest amounts of money
to R&D, there is not a single company from Poland. In the EU,
the average share of corporate R&D funding amounts to 1.22% 1of GDP, while in Poland it is on the insignificant level of 0.17% .
Poles fail to exploit the opportunities that come their way!
only two Polish companies took part in about a dozen editions of this programme
in the years 2005-2006.
For example, the bilateral
Japanese and EU programme “Japan EU Gateway” provides small and medium enterprises
with valuable and cheap tools for developing business relationships with Japanese companies.
According to the information published on the website of the Japanese Embassy in Poland,
Meanwhile, as far as other 'newly acceded' EU countries (Czech Republic, Hungary, Slovakia,
Estonia and Lithuania) are concerned, a few companies from each of them participated
in every edition of the programme.
Adults
STRONG COMPANIES - ATTRACTIVE WORKPLACES
Source: A.T. Kearney, “FDI Confidence Index” (2007).
2007 Foreign Direct Investment Confidence Index
Ratings of country attractiveness to the managerial staff responsible for decisions on direct foreign investment
How to attract good investments?
In a long perspective, Poland will be unable to attract and retain
foreign investors if it continues relying exclusively on its access
to cheap labour force, especially considering the competition
of other newly acceded EU Member States, and the trend
of transferring the production processes to China and India.
For this reason Poland should search for new areas of competitive
advantages and attract experts and investors who will help to explore
and develop Poland's potential in those areas.
What strategy for success?
Poland has numerous comparative advantages. In the future, its economy could
specialize in knowledge-based services (IT, medicine, architecture,
engineering, design, etc.). It could even create global products and
services that are presently non-existent. Poles are a talented
nation, which, given favourable circumstances, can become a breeding ground
for creative talents and future brands (e.g. for artists, sportsmen,
intellectuals, and computer games designers). It could become the
'Silicon Valley' for global Internet businesses (e-education, e-medicine).
However, in order to achieve this Poland must remove the barriers
that are on its way to success, and to find answers to the following
questions:
How to overcome the present lack of goals,
vision, and consistence in actions?
How to improve the unfavourable image of the country,
and develop the ability to build a positive image?
How to strengthen attitudes, increase global aspirations, make Poles
conscious of their strengths, and overcome complexes?
Others (Persian Gulf)
Malaysia
Japan
Canada
France
Vietnam
Australia
Germany
Russia
United Arab Emirates
Singapore
Brazil
Hong Kong
United Kingdom
USA
India
China
Republic of South Africa
Mexico
Turkey
Indonesia
Poland
Central Asiatic countries
South Korea
Czech Republic
2,21
2,09
1,86
1,81
1,781,78
1,75
1,72
1,70
1,70
1,68
1,67
1,67
1,65
1,63
1,63
1,62
1,61
1,59
1,59
1,58
1,58
1,57
1,57
1,56
Low certainty High certaintyEstimated value (grading scale 0-3)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
(1)
(2)
(3)
(4)
(10)
(7)
(16)
(22)
(6)
(9)
(8)
(H)
(14)
(21)
(15)
(H)
(H)
(H)
(16)
(13)
(H)
(5)
(24)
(22)
(12)
Top 25
retained status
promotion (growth)
decrease
position in 2005
does not appear on the
2005 Top 25 List
(#)
(H)
105
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STRONG COMPANIES - ATTRACTIVE WORKPLACES
Poland has a lot of comparative advantages. In the future, we could specialize in knowledge-based services (IT, medicine, architecture, engineering, design,…). We could even create global products and services that are non-existent at the moment. We are a talented nation and, given favourable circumstances, we can become a hotbed for creative talents and future brands (aided by our artists, sportsmen, intellectuals, and computer games designers). We could become another “Silicon Valley” for global Internet businesses (e-education, e-medicine).
The Report on Intellectual Capital of Poland
ENVIRONMENT FOR DOING BUSINESS
Source: ¹ World Bank, “Doing Business in 2008” (2008).
178Democratic Republic of Congo
177. Central African Republic
176Guinea-Bissau
175Republic of Congo
174Burundi
173Chad
172Venezuela
171Eritrea
170Liberia
…
80Jordan
79Solomon Islands
78Brunei
77Dominican Republic
76Pakistan
75Macedonia
74Poland
73Kiribati
72Kenya
71Kazakhstan
70Grenada
…
10Iceland
9Australia
8Ireland
7Canada
6United Kingdom
5Denmark
4Hong Kong
3USA
2New Zealand
1Singapore
PlaceCountry
Ranking on the ease of doing business in 2008
thAccording to the latest report of the World Bank, Poland is placed 74 among the 178
countries included in the report concerning the ease of doing business in 2008. This means
that in this respect Poland is comparable to such countries as Kazakhstan, Kenya, Kiribati
or Pakistan. Among the EU member countries Poland takes the next to last position, and is 1worse than all newly acceded countries .
The low quality of the legal and institutional environment for doing business in Poland results,
among others, from the fact that new laws and regulations in Poland are often based on
the principle of protection against fraudulent practices, which is typical for a country
with very low level of social trust. That is why it is vital that the philosophy behind
the legislative and regulatory system be changed. The relationship between the state and its
citizens, expressed in the form of regulations, should be based on trust towards citizens and
entrepreneurs, and should develop competitive advantages (e.g. by ensuring low costs
of establishing a business).
The legal and regulatory system in Poland does not facilitate conducting
business activities.
106
Adults
How to ensure a simple, stable legal system supporting economic development?
Italy
Slovenia
Czech Republic
Poland
Greece
0 20 40 60 80 100 120
Denmark
United Kingdom
Ireland
Finland
Sweden
Estonia
Belgium
Germany
Netherlands
Latvia
Austria
Lithuania
France
Slovakia
Portugal
Spain
Hungary
Bulgaria
Romania
The institutional environment of the economic system determines the conditions
in which enterprises operate. A high-quality institutional environment
provides favourable conditions for development, while its poor quality,
as in today's Poland, can hinder this development.
Economic freedom, 2008
The lower value, the better.
107
Adults
ENVIRONMENT FOR DOING BUSINESS
The Report on Intellectual Capital of Poland
The research conducted by the World Bank shows, among others, the extent
to which economic systems are overregulated. For instance, it has turned out
that in order to have a warehouse built in Poland one must undergo 30 formal
procedures.
Polish entrepreneurs spend on average 308 days a year, i.e. approximately
10 months, on the above-mentioned procedures.
Out of all the EU member countries, only Hungary and the Czech Republic
are more overregulated than Poland in this respect. By comparison, in Denmark and Sweden
it is sufficient to complete successfully less than ten formal procedures in such a case.
By comparison, in Finland
and Denmark it is possible to complete all the required formal procedures within
about two months¹.
Number of procedures related to obtaining
a permission to build a warehouse, 2008
108
Hungary
6
8
11
11
12
13
13
13
13
13
14
14
15
15
17
17
18
18
19
20
22
26
30
31
36
Austria
Estonia
Slovenia
Lithuania
Netherlands
Czech Republic
Poland
Latvia
Bulgaria
Portugal
United Kingdom
Finland
Rumania
Greece
Italy
Belgium
Slovakia
Luxembourg
France
Germany
Spain
Ireland
Sweden
Denmark
0 5 10 15 20 25 30 35 40
Adults
ENVIRONMENT FOR DOING BUSINESS
Source: ¹ World Bank, “Doing Business in 2008” (2008).
Duration of procedures (in days) related
to obtaining a permission to build a warehouse, 2008
109
38
69
100
116
117
131
137
144
156
169
169
180
185
188
194
208
211
217
230
233
243
257
287
308
327
Finland
Denmark
Germany
Sweden
Estonia
Bulgaria
France
United Kingdom
Lithuania
Belgium
Greece
Czech Republic
Ireland
Latvia
Austria
Slovenia
Hungary
Luxembourg
NetherlandsSpain
Rumania
Italy
Slovakia
Poland
Portugal
0 50 100 150 200 250 300 350
Adults
ENVIRONMENT FOR DOING BUSINESS
The international comparison indicates that Polish economy suffers due to excessive economic
regulations, which lead businesses to spend their time and money unnecessarily, and, moreover,
require complex and expensive public administration system.
What is the goal of such extensive procedures? Is it possible to simplify them
immediately so that Poland would become a European leader?
The Report on Intellectual Capital of Poland
Source: Fraser Institute, “Economic Freedom of the World 2007 Annual Report” (2007). World Bank, “Doing Business in 2008” (2008).
¹ 2
1Assessment of judicial independence in 2005 (Fraser Institute)
0
2
4
6
8
10
mGe
any
rNor
way
Denmar
k
w
ad
Sitz
erln
I
d
relan
Aust
ari
Swed
ne
Portu
gal
Mal
at
Cyps
ru
Belgium
R
Czech
ep
ublic a
Lithu
aniSp
ani
Italy
Pola
nd
man
a
Ro
i
krie
Uan
EU MEMBER COUNTRIES
POLAND
Length of contract enforcement in court: 2EU member countries, in days (the World Bank)
210
235
279
321
331
335
380
394
397
404
425
505
508
514
515
515
537
564
565
577
819
820
830
1210
1350
Lithuania
Finland
Austria
Estonia
Slovenia
Italy
Poland
Czech Republic
Greece
Portugal
Slovakia
Bulgaria
Romania
Spain
Ireland
Netherlands
Sweden
Belgium
United Kingdom
Germany
Hungary
France
Luxembourg
Latvia
Denmark
0 200 400 600 800 1000 1200 1400 1600
110
Adults
ENVIRONMENT FOR DOING BUSINESS The assessment of judicial independence conducted by the Fraser
Institute determines to what extent courts are immune to the
external influence of public authorities, citizens and enterprises.
In 2005 Poland was placed 67th in the group of 120 countries.
There were only three EU member countries which had worse
results: Lithuania, Bulgaria and Romania.A well-functioning judiciary is an important component of an efficient legal system.
Any malfunctions make the protection of property rights limited, and the enforcement
of contracts difficult. As a result, the level of uncertainty and costs of doing business increase.
In accordance with the World Bank Report, the average time in Poland for
enforcing a contract in courts is 830 days i.e. over 2 years. This is one of the worst thresults in the European Union, placing Poland 148 in the group of 178 countries covered
by the research.
Currently, the investment attractiveness of Poland is high
However, unless Polish legal and regulatory system is reformed, this may be
a short-lived success.
. As indicated by the Ernst
& Young's research on “2008 Europe's Investment Attractiveness”, Poland is currently assessed
high by investors despite its legal and regulatory barriers, and for the first time it has topped
the ranking of foreign investors' preferred destinations in Europe, overtaking Germany.
In a longer perspective the advantages that have given Poland
the competitive edge so far, such as low production costs, including relatively cheap
workforce, low property prices, low costs of energy, etc., will start disappearing. Therefore,
in order to keep lead in Europe, it is essential that the barriers hampering business activity
in Poland be eliminated. Otherwise, losing the country's cost competitiveness may be followed
by slackening of the pace of foreign investment inflow, or leaving the Polish market by the
existing foreign investors, choosing countries where the legal and regulatory environment
is more business-friendly.
At the same time, the research conducted by Ernst & Young shows that Europe's investment
attractiveness is decreasing, and that for the first time Europe as a continent is not a preferred
destination for transnational corporations. Therefore, the legal and regulatory system in Poland
should enable increasing the competitive advantages of Polish businesses not only in Europe,
but also globally.
Poland's position – investors' plans
The most attractive destinations
for future investments
Poland
Germany
Russia
France
Rumania
Hungary
United Kingdom
Spain
Bulgaria
Italy
Czech Republic
18%
16%
12%
11%
10%
9%
9%
8%
8%
7%
7%
Europe's investment attractiveness - 2008
Source: Ernst & Young, “2008 Europe's Investment Attractiveness” (June, 2008).
111
Adults
ENVIRONMENT FOR DOING BUSINESS
The Report on Intellectual Capital of Poland
How to use the Internet for the development of Poland?In 2007 only 40% of Poles used the Internet regularly, and 30% of the households had
a broad-band Internet access¹. A year earlier half of the population not using the Internet
stated that they did not need to have access to the Internet². Additionally, between 2005 3and 2007 13% of Internet users discontinued using it . Therefore, Poland is facing the problem
of 'digital exclusion', i.e. inequalities in access to digital Information between different social
groups. More Internet users are among people who are younger, better educated, and live
in urban centres. Computers and the Internet are twice more likely to be installed in
households where there are students among family members than in those where nobody
attends school or university. It is evident then that parents invest in the future success of 4the youngest generation by providing their children with access to digital technologies .
Places with free wireless Internet access are still rare in Poland.
The city of Rzeszów is an example of a local government's awareness of the importance
of modern technologies; it has applied the EU assistance funds to build its Municipal
Broadband Network, with wireless access to the Internet within the area covering 60%
of the city. The authorities of Rzeszów treat public access to the Internet as the basis stof strengthening the foundations of the civic society of the 21 century.
One of the reasons why the Internet is so much
underused in Poland are the highest in Europe access costs.
Monthly charge for broadband Internet access as % 5of monthly GDP per capita .
10.49Poland 50
6.15Czech Republic 40
4.99Portugal 36
4.73Greece 34
2.59Finland 26
2.15Spain 24
2.11Austria23
1.62Sweden 17
1.61Belgium 16
1.58Ireland 15
1.58Denmark 14
1.56United Kingdom13
1.42Italy 12
1.23France 9
1.06Germany 6
0.83Netherlands 3
ResultCountryWorld Economic
Forum Ranking
Source: Eurostat. ² Central Statistical Office (GUS).
3 4 , “Diagnoza spo³eczna 2007” (2007) (English version: “Social Diagnosis 2007” (2007). 5 World Economic Forum [ ]
¹
http://www.insead.edu/v1/gitr/wef/main/analysis
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ENVIRONMENT FOR DOING BUSINESS
Only approximately 40% of Poles use the Internet on a regular basis. This is two times
less than in the countries which are the most developed in this respect, like
the Netherlands or the Scandinavian countries.
Computers and the Internet in households1
0 10 20 30 40 50 60 70 80
All households *
Households with family members participating in education
programs
Households with no family members participating in any form of education programs
Households with primary school / lower secondary school pupils
Households withsecondary school pupils
Households with university students
Only computer
Computer and the Internet
Percentage of population aged 16-74 2who use the Internet at least once a week
0 10 20 30 40 50 60 70 80 90
Netherlands
Denmark
Sweden
Finland
United Kingdom
Germany
Belgium
Austria
Estonia
France
Slovakia
Ireland
Hungary
Slovenia
Spain
Czech Republic
Poland
Portugal
Italy
Greece
Bulgary
Romania
* households
1Source: “Diagnoza spo³eczna 2007” (2007) (English version: “Social Diagnosis 2007” (2007). 2 Eurostat (2007).
113
Adults
ENVIRONMENT FOR DOING BUSINESS
The Report on Intellectual Capital of Poland
'where there are' s³owem '’
How to increase civic engagement?
The more scope for activity we have and the more wider the external world and foreign
markets open for us, the more valuable and local our homeland becomes. Our attachment
to the homeland more and more often reflects the ties connecting us to the area and to
the environment in which we were brought up, where we live, and which we can influence.
Given that one's 'small fatherland' is a platform for developing local ties and for making 1one's life rooted in the local tradition and history , it becomes a source of strength for
every citizen.stA citizen of the 21 century actively participates in shaping the community which he/she
belongs to, by
In fact, many things depend on us and on our activities every day.
Complaining and waiting for others to do something for us is not enough. A proven principle
says that 'Givers Gain', which means that the more you give the more you receive in return.
This is the source of both corporate and social success. Participation in the collective decision
-making process is the fundamental manifestation of social engagement and giving attitude.
Unfortunately, only a small percentage of voters in Poland, compared to Western European
countries, exercise their right to vote in the local and national elections.
taking responsibility for his/her own life and for the fate of his/her
local environment.
Poles tend to avoid taking responsibility for who is elected to govern them,
and, at the same time, to complain about how bad things are.
Even the relatively high poll in the parliamentary election
in October 2007 (53.9%) has not reversed this general
trend yet. Moreover, experts wonder whether the 2007
frequency was not an instance of a social uprising typical
of the Poles whenever the country's stability is threatened.
Paradoxically, this great national virtue is at the same time
a tremendous weakness inherent in the Polish mentality
and unchanged for centuries.
A great Polish poet, C. K. Norwid, wrote about it almost
150 years ago:
“[Poland is the last society in the world, and the first nation
on the Earth. / … / We are no society. We are all a huge Polish
national flag. / … / A Pole is a giant, but the man in a Pole is 2a dwarf.] ” No one has ever become great by alternately
rising and falling.
The source of long-lasting success and greatness
lies in consistent and continuous action.
Source: ¹ S. Starczewski, “Ma³e ojczyzny. Tradycja dla przysz³oœci” , p.23. ² C.K. Norwid, “List do Michaliny Dziekoñskiej z 1862”.
114
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ENVIRONMENT FOR DOING BUSINESS
1Source: TNS OBOP (Polish research agency within TNS Group), “Penuria spo³eczeñstwa obywatelskiego” (January, 2007).2 “Indeks spo³eczeñstwa obywatelskiego 2007” (January, 2008).
115
Adults
ENVIRONMENT FOR DOING BUSINESS
Voting frequency in parliamentary elections in Poland is the lowest in Europe. In 2005
the country was much below the European average in this respect, while the poll in the 2007
parliamentary election was the highest in Polish history (c54%), but still much below
the European standards.
In the research on civic society, Poland was bottom-ranked in respect of the NGOs
Membership Indicator, being awarded grade 0 on a scale of 0-3. Poland's result concerning
the time devoted by volunteers to social work is only slightly better – it was 4 hours 2monthly in the year 2007 and 6 hours monthly in 2006 .
In order to overcome their weaknesses Polish people should be genuine citizens
every day rather than on special occasions, and take responsibility (by participating
in elections) for how their country, as well as their local communities, are governed. 1 They should also participate in shaping their social environment by becoming engaged in social
initiatives. Recent research shows that only 10% of Poles belong to social (non-governmental)
organizations.
The Report on Intellectual Capital of Poland
How to develop and strengthen openness and trust?
In the past, powerful and rich communities of e.g. Venice, Ragusa (present-day Dubrovnik),
or the British Commonwealth were able to grow and strengthen their position over
the centuries thanks to, among others, their curiosity about the world, openness to new
ideas and discoveries, or ability to make good use of the knowledge they acquired. stIn the 21 century economy and science also need to open to diversity and ability
to cooperate and share knowledge. It is openness, desire to explore new fields and
cultures, and ability to utilize other people's knowledge and experience that determine
innovativeness, which is the main driving force behind prosperity and economic growth
in the knowledge era.
Nowadays, being innovative is an obligation of every mature citizen. Trust is a fundamental
element in developing openness, quality relationships with others, and cooperation. Poles
have much room for improvement in this respect. In the recent European survey of social
attitudes Poland's result was the worst in the group of European countries included in1the research: only 23% of Poles think that “most people can be trusted” .
Poles tend to be excessively distrustful and lacking in openness to new ideas.
They prefer to adopt self-protective attitudes rather than to be cooperative.
They are passive rather than active in building relationships with others and
benefiting from the diversity of the environment.
1 Source: “European Social Survey” (2006/2007).
Austria
Belgium
Czech Republic
Denmark
Estonia
Finland
France
Greece
Hungary
Ireland
Italy
Latvia
Lithuania
Netherlands
Poland
Portugal
Slovenia
Spain
Sweden
United Kingdom
West Germany
East Germany
0 10 20 30 40 50 60 70 80 90
Most people can be trusted
There is never too much caution in relations with others
As many as 80% of the Polish population claim that there
is never too much caution in relations with other people.
116
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ENVIRONMENT FOR DOING BUSINESS
Source: ¹ E. von Hippel, “Democratizing Innovation” (The MIT Press, 2005).
Wikipedia, number of articles per country, March 2008
Num
ber
of ar
ticl
es
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
PortugueseItalianPolishGermanEnglish French Japanese Dutch Spanish
Swedish
Openness to diversity and to what is generally understood as trust relate to
nearly all spheres of our lives. They help us both in our everyday routines
(they facilitate cooperation and establishing relationships with others)
and in achieving measurable business benefits.
In the year 2006 the Lego company invited its customers to cooperation in designing new toy
robots. Four engineers, and Lego fans at the same time, enriched the project with ideas and
practical experience which were new to the Lego team. Moreover, Lego gave the customers
the right to modify the software for controlling toy robots.
As a result, the company launched several dozen pages with modified source code made
available to the customers as free software.
In another experiment carried out by 3M, the company enjoyed the net profit on sales
of products based on customers' ideas eight times as high as the one made on sales 1of traditionally designed products .
Yet another example in this context is the popular Firefox browser, created by an international
community. Members of this community are employees of the Mozilla Corporation and its
business partners (IBM, Novell, Red Hat or Google), as well as volunteers.
The open character of the project derives from the fact that users are legally permitted
to copy, use and modify the program's source code.
An example of a project overcoming the existing barriers
to openness and cooperation in Poland is the Polish Wikipedia.
Nearly half a million articles were written by over ten
thousand people for seven years since launching this free
online encyclopaedia. Two thousand of them regularly work
on the encyclopaedia. Wikipedia, managed by a volunteer
community and publicly accessible, is a model example
of civic engagement in a knowledge society.
117
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ENVIRONMENT FOR DOING BUSINESS
Lessons from good practices
The Report on Intellectual Capital of Poland
Success Story: Optopol
The cooperation of engineers from the Optopol Technology company with the scientists
from the Department of Physics of the Nicolaus Copernicus University in Toruñ resulted
in designing a globally unique Spectral Optical Coherence Tomography System, SOCT
Copernicus. It provides rapid high-resolution images of retinal structure, with fine
details regarding the condition of the corneal surface, the lens, and the iris. Currently,
the tomography system created by Polish physicists from Toruñ and produced by
Optopol satisfy 20 per cent of the global demand for this type of medical equipment.
The Chairman of Optopol Technology, Adam Bogdani, invested all savings accumulated
during the 15 years of the company's presence in the market to commercialize the invention
made by the scientists from Toruñ. Following the international commercial success of SOCT
Copernicus produced by his company, the owner of Optopol decided to found an R&D
centre at the Department of Physics of the Nicolaus Copernicus University in Toruñ,
and provide funding for its operations.
118
FILM http://www.innowacyjnosc.gpw.pl/kip/index.php?m=6
Adults
Success Story: Read-Gene
The example of Read-Gene, a company based in Szczecin, shows that cooperation
between representatives of business and science may result in building a prosperous
business. Most of the founders and shareholders of Read-Gene are scientists.
They pursue their scientific careers with the International Hereditary Cancer Centre
at the Pomeranian Medical University in Szczecin, where they work under the guidance
of Prof Jan Lubiñski.
As businessmen, they work for Read Gene company and focus on adding a commercial
dimension to the scientific results of their work, including methods of detection, prevention,
and treatment of the most common types of malignant tumours. Prof Jan Lubiñski is
the Chairman of the Management Board of the company.
Read-Gene has managed, among others, to build a countrywide network of over 20 genetics
clinics throughout Poland, capable of doing genetic tests for over 1,000 patients per day.
In July 2008 Read-Gene made its debut at the Warsaw Stock Exchange.
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Adults
The Report on Intellectual Capital of Poland
How can the energy and the potential of adult Poles be utilized so as to ensure
Poland its competitiveness and sustainable development for numerous years?
120
SUMMARY
Adults
The quality of Polish human capital, i.e. the innovativeness,
competencies and knowledge of adult Poles, will most
certainly be of a key importance in the knowledge-based
global competition. The quality of life in Poland must be
improved in order to prevent emigration of highly qualified
personnel and to attract foreign investors and experts.
This will be impossible without developing strong and
innovative businesses in Poland, offering attractive, high
value-added workplaces.
Moreover, it is essential to create a business-friendly
environment, including effective administrative sector
and infrastructure.
And, last but not least, Polish people must be consistent
in building their civic society.
How can we create optimal conditions
for setting up and running businesses
in Poland?
How can we ensure continuous
improvement of competencies
of adult Poles, and an increase in their
occupational mobility and flexibility?
How to ensure sustainable
development for Polish companies and
attract foreign investments, resulting
in the creation of quality workplaces
of the future?
HUMAN CAPITAL
How to retain and attract talented
employees, scientists and businessmen
by improving the standard of living
in Poland and the country's
attractiveness?
ATTRACTIVE WORKING PLACES
BUSINESS ENVIRONMENT
QUALITY OF LIFE
Senior Citizens
The Report on Intellectual Capital of Poland
How to avoid exclusion of the elderly?
Why is it worth to spend the autumn of life in Poland?
How to put their rich life experience to social use?
What can Poland learn from others?
122
Seniors
IC Index for senior citizensth The Intellectual Capital Index for senior citizens places Poland 16 in the group
of 16 EU member countries included in this comparison.
Poland's disadvantageous ranking results to a significant extent from
the following statistics:
low level of participation of Polish senior citizens in the labour market;
strong sense of alienation among the elderly population;
poor access to health services, measured as the number of doctors per
1,000 inhabitants.
Intellectual capital: senior citizens
0 10 20 30 40 50 60 70
Poland
Hungary
Czech Republic
Greece
United Kingdom
Italy
Spain
Portugal
Belgium
Ireland
Finland
France
Austria
Netherlands
Denmark
Sweden
123
Intellectual capital indexes have been based on the analysis of the key IC indicators
attributed to a given generation. The full list of all 117 indicators used for the purposes
of Poland's IC model is available at: www.innowacyjnosc.gpw.pl/kip/
Seniors
The Report on Intellectual Capital of Poland
How to increase employmentrate among senior citizens?In respect of the activity of senior citizens in the labour market Poland
comes last among EU member countries. The employment rate for
the age group 55-64 is in Poland nearly 1.5 times lower than the EU
average. This is caused, among others, by the lowest in the EU statutory
retirement age of 58.
Employment rates for the age groups: 150-54, 55-59, and 60-64 in 2006 .
0 10 20 30 40 50 60 70 80 90
Sweden
Denmark
Estonia
United Kingdom
Finland
Latvia
Czech Republic
Lithuania
Netherlands
Germany
Cyprus
EU 15
France
Ireland
Austria
Portugal
EU 27
Bulgaria
Slovakia
Luxembourg
Slovenia
Hungary
Spain
Greece
Romania
Belgium
NMS 10
Italy
Malta
Poland
50-5455-5960-64
Poland is increasingly affected by the population ageing processes, which will contribute
to gradual changes in the age structure of its society: in the year 2030 every third Pole will
be over 50 (currently it is every sixth one). This poses new challenges, but also offers great
opportunities. If the potential of Polish senior citizens, embodied in their knowledge and
experience, is wisely utilized, younger generations may become better prepared for life
and work. Involving the elderly in business activity may e.g. lead to a reduction in the costs
of professional training programmes. The cooperation of schools and kindergartens with
elderly people may increase the effectiveness of programmes aimed at developing young
Poles' emotional intelligence, system of values, social relationships and traditions.
Source: ¹Calculations done by the Department of Economic Analyses and Forecasts of the Ministry of Labour and Social Policy, based on the LFS Eurostat data.
124
Seniors
The level of employment in the over 50 age group needs
to be consistently increased in order to utilize the potential
of people aged 50+, to prevent drastic reductions in pensions
paid to the retired, and, finally, to avoid the increase in social
contributions and taxes.
Source: ¹ Ministry of Labour and Social Policy, the programme “Solidarnoœæ pokoleñ” (Solidarity between Generations) (Warszawa, 2008).
A more numerous group of senior citizens imposes a larger burden for the economy as well.
The working minority of Polish population already provides for the majority who are
occupationally deactivated. This constitutes another reason for the importance of making
efforts in order to encourage senior citizens to remain active in the labour market for as
long as possible, and thus, to contribute to GDP growth.
Too early occupational deactivation of senior citizens, coupled with the rising average lifespan,
is disadvantageous for both economic and social reasons. If this trend continues,
as a result of a growing number of citizens not generating GDP, but receiving
social benefits.
Retiring at a comparatively young age (58, on average) means that the
Thus, it is worth
to take a closer look at the reasons for which senior citizens' activity in the labour
market is so low.
The most often declared reasons for leaving the labour market are related to poor health
and/or willingness to help one's children, by e.g. looking after grandchildren. There are also
cases of employers applying discriminatory practices against older candidates for job
vacancies or for training courses.
If Poland fails to increase the employment rate of elderly people, in 35-40 years
there will be a drastic increase in taxes or an equally drastic decrease in the value
of pensions paid to the retired.
the problems
with funding social welfare benefits and guaranteed minimum pensions will keep
increasing
resources
of knowledge, including the desirable pragmatic knowledge, possessed
by four million Poles, are not fully utilized by the society.
125
On the other hand, it is true that elderly people often
become slaves of their own age and of the myths according
to which age is allegedly accompanied by certain limitations.
Moreover, an important factor responsible for low occupational
activity of senior citizens in Poland is the structure of the social
insurance system, which offers financial incentives for 1premature retirement .
Seniors
The Report on Intellectual Capital of Poland
How to increase the social participation of senior citizens?Passive attitudes of people aged 50+ assumed in the professional life
are accompanied by their social passiveness. Their potential of pragmatic
knowledge about life, as well as of social values and skills, is insignificantly
utilized by their families, by the local communities and by the society
as such.
Polish people aged above 50 years tend to be hardly engaged in voluntary work, and they
are reluctant to join in any activities on behalf of their local communities, take up sports
or attend cultural events.
. This is also related to the low level of trust to others, typical of the whole
Polish society, which strengthens the passiveness of the elderly. Only slightly more than 20%
of them are of an opinion that one can trust others¹.
Their social involvement is two or three times lower than
that of their peers in Western European countries, and usually focused on their
own families
It must be admitted, however, that, compared to their contemporaries
from other countries, Polish senior citizens relatively often declare
that they devote much of their time to their families, although this 2concerns only 30% of the respondents .
At the same time, senior citizens play an important economic role in
their families by performing caretaking functions or helping in running
the households.
Thus, they participate in the natural intergenerational transfer,
which includes handing down to children and youth traditions
as well as social, national and cultural standards and values.
Source: ¹ World Values Survey (1999). ² AXA Retirement Scope (Poland, 2008).
126
Seniors
Polish senior citizens, by not participating in the social life, are pushed into
the background of the society and are treated like an unneeded burden.
The distrustful attitude towards others in this age group results
from their low self-esteem and opinion of themselves.
Finally, the lack of trust leads people aged 50+ to withdraw from social
life, and make them irresponsive to new social or cultural trends or new
technologies.
Percentage of people aged 50+
who are passive (in sports, cultural life, 2local community activities) .
Austria
Bulgaria
Estonia
Romania
Netherlands
0 20 40 60 80 100
Ukraine
Poland
Spain
Portugal
Malta
Lithuania
Latvia
USA
Japan
Slovakia
Finland
Germany
Denmark
Czech Republic
Percentage of pensioners 1taking care of their families .
0 5 10 15 20 25 30 35
Poland
Portugal
Belgium
Czech Republic
Italy
Slovakia
Switzerland
France
Spain
United Kingdom
USA
Germany
Canada
127
Seniors
Source: ¹ AXA Retirement Scope (Poland, 2008). ² World Values Survey (1999).
The Report on Intellectual Capital of Poland
How to increase the participation of senior citizens in education?Compared to several other European societies (e.g. of Austria, Scandinavian
countries, or Germany), only a small percentage of Poles aged 55-64 1(16.2% ) choose to pursue education in some form. In consequence, citizens
aged 50+, who are often both physically and psychically fit, withdraw from
the labour market and from the social life only because they fail to update
their knowledge and skills.
The research “Rynek pracy a osoby bezdomne 50+. Bariery i szanse” [Labour Market,
and the 50+ Unemployed. Barriers and Opportunities], conducted by the Academy for
the Development of Philanthropy in Poland, showed that there is practically no educational
offer in Poland suitable for the needs and abilities of people aged over 50.
State and private-owned, as well as non-governmental educational institutions in Poland
all lack it. Yet another reason for the passiveness in learning of Polish people aged 50+
is their negative attitude towards education, resulting from their passiveness in the labour
market and in the social life.
Percentage of people aged 50+ 2participating in some form of education .
Hungary
Slovakia
Portugal
United Kingdom
Lithuania
0 20 40 60 80 100
Norway
Switzerland
Slovenia
Romunia
Sweden
Finland
Italy
Netherlands
Malta
Latvia
Cyprus
Poland
10 30 50 70 90
France
Spain
Greece
Ireland
Estonia
Germany
Denmark
Czech Republic
Bulgaria
Belgium
EU25-average
Luksembourg
Austria
Source: ¹ Academy for the Development of Philanthropy, “Rynek pracy a osoby bezrobotne 50+. Bariery i szanse” (Warszawa, 2007).2 Eurostat, (2005).
128
Seniors
It should be remembered that education not only increases senior citizens' chances to obtain
a job, but also prevents their social exclusion.
The exclusion from the labour market, which has been described above, is often caused by
unfamiliarity with modern technologies, particularly with the Internet.
Computer illiteracy also makes it difficult for the elderly to have close relationships with
the young generation, limits their access to information and prevents them from using
advanced technologies such as e.g. digital photography. There are numerous reasons for
this situation, including financial, psychical and technical barriers.
Consequently, they expect difficulties
in learning to operate a computer (Will I manage it?), and are afraid of damaging the
equipment (Won't I damage something?). Last but not least, there are also financial and
technical barriers related to using a computer: no access to computer hardware and
software, a limited offer of computer literacy courses for elderly people, and too high fees
for Internet access. Currently, only 20% of people from the age group 55-64 use 1the Internet (as compared to 40% in the EU) .
Many elderly people believe that the world of new technologies is dominated
by young people and that “it is not for them”.
1Source: Eurostat (2006) [ ].2 ”Diagnoza Spo³eczna 2007”.
http://epp.eurostat.ec.europa.eu/portal/page?_pageid=1996,45323734&_dad=portal&_schema=PORTAL&screen=welcomeref&open=/icts/isoc/isoc_ci/isoc_ci_in&language=en&product=EU_MAIN_TREE&root=EU_MAIN_TREE&scrollto=46
129
Seniors
2According to the Social Diagnosis 2007 (“Diagnoza Spo³eczna 2007”) ,
the human capital of elderly people is considerably lower than
that of the age groups participating in the labour market or of
the youth.
This results to a significant degree from a limited involvement of this social
group in lifelong education programmes. Considering the fact that
the participation of 30-year-olds in education is over three times
as high as that of 40- or 50-year-olds, and the participation of 20-year
-olds is over 30 times higher, the relative value of the human capital of
people currently belonging to the age group 50+ will keep decreasing.
The Report on Intellectual Capital of Poland
0%
5%
10%
15%
20%
25%
CH BE SE FI DK NO CY UK FR DE EE SI BG PL SK PT ES
Although the average lifespan has extended by approximately 4 years in Poland since
the beginning of the political transformations (the current average lifespan for women is
78, and for men – 73 years),1 than in other EU member countries . This is true both for women (by c2 years)
and for men (by c3 years). This indicates a worse health status of senior citizens in Poland
in comparison with that in the corresponding age groups in most of other EU countries.
Undoubtedly, the reason can be found in a number of deficiencies in the Polish health
care system, including: insufficient funding of procedures related to treatment of elderly
patients; lack of outpatient geriatric wards, insufficient number of geriatricians, faulty training
system for doctors and nurses in the field of geriatrics.
The fact that there are no local clubs for elderly people or day care centres presents an
additional problem.
the life expectancy of people aged 60 is still lower
in Poland
Senior citizens often complain about the long waiting period for a vacancy in
a nursing home, and about the lack of proper attitude of the medical personnel
suitable for their specific needs.
How to ensure senior citizens' health?
Source: The World Bank, “From Red to Gray” (2007). 2 ESS (European Social Security), calculations done by the Department of Economic Analyses and Forecasts of the Ministry (2006).
¹
Proportion of elderly people (aged 50+) assessing 2.their health status as bad or very bad
130
Seniors
The interdependencies between senior citizens' health status and their
activity level in the labour market are particularly noticeable in the case
of disabled people. The participation of the disabled senior citizens in
the labour market in Poland is very low: in 2006 only 15.2% of them were 2in employment . What makes things even worse is that this ratio has been continually
decreasing since 2000.
What poses a burdensome problem is the highly insufficient system of supporting people
taking care of the elderly.
According to the report by Eurofamcare, a complete support system should include:
training and providing information;
mentoring and counselling;
needs assessment;
financial benefits, entitlements and employment;
support in reconciling professional work with care duties;
ensuring respite and regular care breaks; 1 psychological support .
1 Source: Eurofamcare, “Trans-European Survey Report” (2006).2 Ministry of Labour and Social Policy, the programme “Solidarnoœæ pokoleñ” (Solidarity between Generations) (Warszawa, 2008).3 Profile Public Relations, “Dezaktywacja zawodowa osób w wieku oko³oemerytalnym” (Warszawa, 2007).
The unsatisfactory health status of senior citizens is linked with their
passiveness in the spheres of professional life, social life and education.
On the one hand, inactive lifestyle, spending a lot of time at home,
often alone and motionless, and wrong diet lead to an increase in
the vulnerability to diseases of the circulatory system and to psycho-
somatic disorders.
Findings of the research on people leaving the labour market at around
retirement age (“Dezaktywizacja zawodowa osób w wieku 3oko³oemerytalnym”) show that a relatively worse health status favours
making the retirement decision. In the group eligible for retirement it is
those with the best overall feeling who decide to remain in employment.
Meanwhile, the health status is one of the crucial
determinants of ability to work.
131
Seniors
The Report on Intellectual Capital of Poland
The British government's effectively promotes the code of best
practices in terms of age diversity in employment by pointing out the benefits resulting from
engaging and retaining employees of different age groups.
Companies in Germany, the Netherlands, the United Kingdom or Finland have started
implementing their policies. Also in Poland a number of experimental
solutions concerning lifelong education and age management in enterprises have been
developed, thanks to the support from
th implemented in Finland at the turn of the 20 stand 21 centuries was a perfect example of success in raising the level of participation
in the labour market of people aged 50+, and of the success resulting from the agreement
reached between the Finnish state and all important social and economic institutions.
Age Positive Campaign
age management
EQUAL CIP.
The Programme for Ageing Workers
What can Poland learn from others? Projects implemented by non-governmental organizations
and territorial self-government units within the programme
“£¹czymy pokolenia” (Integrating Generations) of the Academy
for the Development of Philanthropy in Poland and the PZU
Foundation exemplify the fact that it is possible
and to restore natural
on a local scale.
The Project of the Polish-American Freedom Foundation
supporting Third Generation Universities is an excellent
example of
, which attracts a great deal of interest
and demand among the concerned age group.
to make
the elderly socially active
intergenerational bonds
broadening the educational offer for
people aged 50+
132
Seniors
Tourism is a sector of a significant economic importance. The European tourism industry
generates about 5% (or, depending on the definition, even over 11%) of GDP in the European
Union, and creates workplaces for 8 to 24 million people (again, depending on the scope 1of the industry definition) . Moreover, it should be taken into account that tourism is
inseparably connected with other industries, and, in particular, that senior citizens
tourism affects numerous areas of our lives, including the Internet as a source of information,
transport, and, obviously, restaurant services and the cultural and entertainment establishments.
The idea of generally available tourism does not consist in creating
separate services for elderly or disabled people, but in ensuring full integration, or rather
in involving special needs tourists in the tourism sector. The long-term objective of generally
available tourism is creating an environment in which all tourists, irrespective of their
individual needs (age, disability, obesity, etc.), will be able to participate actively.
The implementation of the project “TraVEL AGEnts - over 55 without frontiers”
in Poland enabled project participants, i.e. people aged 55+, to retrain, start their
own business activities (as excursion leaders, tourist guides, tour operators etc.)
or find a new job.
Source: ¹ [ ]. ² [ ].
www.natko.dewww.travelagentsproject.org
133
2The project “TraVEL AGEnts - over 55 without frontiers”
encourages travelling, voluntary and free participation in acquiring
knowledge, as well as creating intercultural and profitable opportunities
for people aged 55+ in 10 EU countries (the Czech Republic, Cyprus,
Estonia, Finland, Greece, Poland, Portugal, Slovakia, Germany and Italy).
The project aims at promoting active ageing and facilitating the mobility
of the elderly in the EU. The project, funded within the “ ENEA
preparatory action on active ageing and mobility of elderly people”, has
been recognized by the European Commission as a good practice.
The project is a pioneer initiative in the EU promoting 'responsible
tourism' for people aged 50+. It provides the elderly with the opportunity
of being employed in the favourable sector of tourism in all EU Member
States. The initiative has been implemented in 10 EU countries, setting
a new trend towards popularizing the tourism which respects cultural
heritage, is environmental-friendly, provides economical support for
local communities, and encourages intercultural dialogue and transfer.
The term 'responsible tourism' refers to the tourism which 'participates'
in generating local community profits.
Seniors
The Report on Intellectual Capital of Poland
Success stories: the World's Smallest MuseumFor over twenty years has been a living proof
of success, social involvement, self-attainment and lifelong education being within
the reach of a retired person. Retirement does not have to bring an end to active
life and involvement. Just on the contrary, it can be the beginning of a great life adventure.
In April, 1988, Halina founded the World's Smallest Museum. She turned a tiny room
in her small flat in the Warsaw district of S³u¿ewiec into an exhibition space where
she presents works of her students from the University of the Third Age, in which
she conducts a creativity training seminar. She helps her elderly students to develop
their dormant gifts and talents which they had no time to awaken earlier. She also
runs the DSM project, aimed at promoting dialogue between the older and the younger
generations, within which her students from the University of the Third Age cooperate
and exchange opinions with lower secondary school pupils from Kuklówka. Since
she retired, Halina has learned Esperanto and Swedish, and is currently learning
Spanish as well.
Ms Halina Duczmal-Pacowska
134
FILM http://www.innowacyjnosc.gpw.pl/kip/index.php?m=8
Seniors
The proportion of the senior citizens population in Poland will keep increasing
over the next few years.
4 000
9 000
14 000
19 000
24 000
29 000
34 000
39 000
1909
1939
1969
1999
2020
2050
2080
2011
2041
2071
2002
2032
2062
2092
2023
2053
2083
2014
2044
2074
2005
0-24 25-44 45-59/64 60/65+
Source: ¹ Calculations done by the Department of Economic Analyses and Forecasts of the Ministry of Labour and Social Policy, based on the Eurostat data.
Without taking complex measures aimed at increasing the degree
of senior citizens' activity and without establishing a special social
pact aimed at increasing that level of activity, Poland will not
be able to keep its current pace of economic growth, which will lead
to its systematic marginalization in Europe.
The needs of senior citizens must become the focal
point, and their intellectual capital (their knowledge,
skills, and life experience) should be utilized to its
fullest extent, in the interest of the whole society.
their huge
potential underutilized in the process of the economic
and social development of the country,
The above will be possible if the elderly become fully
integrated with the rest of the society in terms of career,
social life, and education. The currently high degree of
passiveness, rather poor health status, and the social
marginalization of senior citizens make
while they
themselves become a burden to the public financial
system and to the working population. This seriously hinders
the social and economic development of the country.
Population structure in Poland in the years 1990-2050, in thousands
Explanation: the values for the years 1990-2007 are statistical data, 1while the remaining values have been forecasted by Eurostat
135
Seniors
SUMMARY
The Report on Intellectual Capital of Poland
A comprehensive approach and cooperation of all concerned 1are necessary for improving senior citizens' well-being in Poland .
Career-
focused approach
Healthy
lifestyles
Skills
development
Saving
Individual
responsibility
of citizens
Business
processes
and planning
Professional
trainings
Staff retaining
initiatives
HR
development
Employer
support
Government programmes
and leadership
Employment
and social programs
Training
programs
Business
programs
Health
programs
Positive
results
for
everybody
radically change the state policy concerning the 50+ age group
and stimulate senior citizens' involvement in professional and social life,
create incentives for both people aged 50+ and employers to ensure
longer activity in the labour market;
negotiate a social pact on behalf of senior citizens activity and
of promotion of healthy ageing, including representatives
of the state and its institutions, employers, trade unions, NGOs,
and the sector of science and education;
take measures aimed at changing the social attitude towards people
aged 50+, both through all-Poland educational and information
campaigns, and through supporting local grass-root local initiatives
in this respect, particularly those restoring and strengthening
intergenerational bonds;
broaden the educational offer and tailor it to meet the capacity,
needs, and expectations of people aged over 50;
include retirement preparation courses in education institutions
curricula and in corporate training programmes;
promote age management;
reform the pension system in order to create financial mechanisms
encouraging the longest possible participation in the labour market
(like e.g. in Finland).
136
Source: IBM & the Lisbon Council, Living Longer, Living Better.1
Seniors
For this reason it is necessary to:
Recommendations
The Report on Intellectual Capital of Poland
From diagnosisto recommendationsThe main objective of the Report on Intellectual Capital of Poland was to conduct
a comprehensive assessment of Poland's potential for development as a knowledge
-based economy and society.
That assessment was presented in the chapter Diagnosis, and it may produce a disheartening
effect:
. At the same time, the success
stories described in this report prove that wherever the statistical data reveal systemic
dysfunctions or weak points of the Polish science, education or economy, there are individuals
who give the lie to these statistics by their involvement and creativity. They are laudable
exceptions. Their stories are important not as instances of dubious self-comforting
(“It's not that bad”), but because they inspire to ask questions:
Poland's rankings in terms of the key IC indicators, compared to those of
other European countries, are highly unsatisfying
Since they have succeeded, what can be done to have more successes
like theirs? What measures should be taken to increase Poland's potential
for development? How to know whether the introduced changes are successful?
How to measure the country's success? Who should be involved in the process
of change implementation?
Thus, two series of workshops were held in the course
of works on this report, including discussion on the above
(and similar) questions among nearly one hundred
participants.
The workshops were intended to make representatives
of the central administration and NGOs involved in
the debate on the key challenges related to intellectual
capital. The workshops resulted in defining a vision, steps
leading to its realization, and indicators of its success.
Participants also discussed what measures and investments
should be curbed, and which of them deserve strengthening
to ensure a more effective use of the limited resources
for the development of the intellectual capital of Poland.
A record of the outcomes of the workshops are
available at: http://www.innowacyjnosc.gpw.pl/kip/
138
A fragment of the summary notes made upon the completion of the 1st workshop series for representatives of the central administration, during which a vision of Poland in the year 2030 was defined, procedures for measuring success identified, and present challenges and steps which can lead to achieving the vision in the year 2030 were brainstormed.
A fragment of the summary notes made upon the completion of the 2nd workshop series for representatives of the central administration and NGOs, during which recommendations were worked out and the basis of the strategy for Poland was created.
139 The Report on Intellectual Capital of Poland
What will happen next?
The authors of the present report are well aware that Poland abounds in minds, brains
and ideas necessary to continue reforms in the sectors of education, including higher
education, and science. There are experts' opinions, strategies, and other materials
presenting conclusions similar to these included in the Report on Intellectual Capital
of Poland.
Foreign experience gained through similar initiatives taken all
over the world shows that the following measures are of key importance to success:
involving representatives of relevant ministries, state institutions
and NGOs; creating strong project teams to fine-tune the recommendations
collected so far, and to transpose them into actions;
Consequently, what seems to be the biggest obstacle is not that Poles do not
know their weak points, but that they are unable to carry out successful reforms
aimed at combating these weaknesses. Their performance is ineffective.
How can recommendations be translated into action?
engaging all the concerned parties in developing detailed action plans –
making use of domestic and foreign know-how
and experience
conducting public debate and influencing social
opinion
– Polish problems are not unique,
and many other countries have confronted them before;
Poland too rarely learns from others' mistakes and successes;
– fundamental changes may be effected only
with proper attitudes among the society; as long as a
statistical Pole is unaware of the extent of the country's
exposure to risks or of possible consequences of its
failure to implement necessary reforms, neither politicians
nor groups of interest will feel enough pressure to
introduce reforms.
140
Prioritization of challenges
How to select top priorities?
The complexity, importance and interdependence of all of the problems discussed in this
report, make it difficult to attempt their prioritization. However, past experience teaches
that limited resources should better be focused on the most crucial issues.
In order to select priorities for future action plans several dozen experts were invited to give
their assessment of the identified challenges.
The following criteria were taken into consideration, in accordance with the SMUG method
used in decision analysis:
seriousness (how significant the problem is for the development of the country);
manageability (to what extent it can be influenced by the state);
urgency (how important it is to take action immediately);
growth (to what extent the weight of the problem may increase).
Each of the experts assessed the individual challenges using the following grading scale:
(5) high; (3) medium, and (1) low. The total sum of grades allowed to create the
index which is presented in the table.
It constituted the basis for indicating seven main groups of activities which should be
undertaken first. They will be discussed in this part of the report.
141
Ineffective pro-family policyLow innovative potential of Polish higher education institutionsPoor accessibility and high costs of the InternetLittle usability of higher educationLow participation of children in early childhood education Necessity for attracting foreign high value-added investmentsExposure of children to povertyLow quality of the teaching personnel performanceLow innovativeness of Polish companiesLimited pool of quality candidates for teachers Low quality and low diversity of early childhood education formsLow level of senior citizens' participation in the labour marketPrevalence of traditional teaching methods in higher education institutionsLow occupational mobility of PolesLimited access to prevention and early detection medical servicesUnderdeveloped quality management systems in higher education institutionsLow participation of academic teachers and students in foreign exchange programmesPrevalence of short-term strategies in management Poor health status, high incidence of chronic diseases Very low level of participation in educational programmes among adults Low level of trust in the society Poor status of senior citizens' health Lack of support from schools in equalizing students' chances for educational successLow level of civic involvement Low participation in educational programmes among senior citizensInsufficiently personalized system of schools' curricula and teaching methodsProblems with maintaining the work/life balancePoor cooperation between school and parentsLow level of senior citizens' involvement in social life
Legal environment disadvantageous for doing business
Challenge17.7616.7015.7515.3315.1815.0714.9414.1614.0313.9913.5812.9212.8412.8212.7512.7312.7112.69
12.5712.5212.3512.0912.0911.9611.4910.9610.8110.029.158.25
TOTAL100%94%89%86%85%85%84%80%79%79%76%73%72%72%72%72%72%71%
71%70%70%68%68%67%65%62%61%56%52%46%
The Report on Intellectual Capital of Poland
142
Increasing
the quality
of legal operations,
procedures
and infrastructure
for business
Ensuring synergy
of science, business
and culture.
Creating vacancies
with high
added value
Activating
senior citizens
Focusing the system
of education
on the needs
of the labour
market
Increasing
the quality
of education
More complex
and efficient
family policy
Regular
measurement of
intellectual
capital indicators
7
Ensuring high quality of human capital Enabling the utilization of human capital
as a source of the country's competitive advantage, growth and well-being
Building social capital of Poles: increasing trust in interpersonal relations and in citizen-state relations, activating social activity.
Initiatives related to activating and developing the potential embodied in Polish people should be joined with the use of social capital. The state can stimulate the process
of increasing social capital by improving the credibility of its institutions and by promoting appropriate norms of conduct in mutual relations.
Nonetheless, Poland must do its utmost to create the optimal conditions
for utilizing the capital of knowledge, energy, and entrepreneurship of Polish
people. It is absolutely crucial for Poland to promptly become a business-friendly
environment. Otherwise, the human capital, i.e. the best students, workers, scientists and
entrepreneurs, will move abroad to countries offering better conditions to run operations.
A simplified legal system, competitive and open markets, a transparent tax system,
and mechanisms stimulating creative cooperation of science, business and culture, may
turn Poland into an ideal location for innovative enterprises generating considerable added
value.
What is of top priority among the numerous challenges facing
Poland is further investment in its human capital, which is key
to the development of the country.
It is essential that pro-family policies encourage people to have children
and ensure equal access to various forms of pre-school education, that
the quality of teaching in
schools be increased, and that Polish institutions of higher education
produce graduates whose qualifications are more relevant to the needs
of the labour market. Finally, the ageing society brings new challenges,
but also new opportunities related to the intellectual capital embodied
in the senior generation.
SUCCESS INDICATORS
higher number of children per family;
higher percentage of children born and brought up in two-parent
families;
higher percentage of 4-year-olds participating in education;
higher outlays on child care and pre-school education institutions
(for children aged 0-6) measured as % of GDP;
lower percentage of children exposed to poverty;
more time dedicated by parents to their children (% of families having
at least one meal a day together; average time per week spent on reading
books to children and/or talking with children);
higher percentage of companies offering employment on flexible terms
to parents.
In order to secure the quality of human capital the optimal development
conditions should be provided for all children in Poland to make them happy,
well-groomed and able to use their full potential.
The above entails undertaking not only those forms of activity which are focused on children,
but also measures aiming at strengthening the environment in which a child is brought up:
family and institutions of early childhood education and care.
. The state must provide – by means of various legal and fiscal
solutions – conditions which will favour having children and setting up stable families.
A family will not prosper unless proper conditions for its development are ensured by taking,
among others,
Therefore, Poland needs complex family policies allowing for different
life choices related to the presence of parents having little children in the labour market
and for a variety of resulting needs.
What does “quality” stand for in this context?
First of all, it refers to the skills and competencies of the teaching personnel, their efficient
cooperation with parents and ability to perceive children as subjects rather than objects,
as well as to the teaching curricula and methods which enable children to develop
fundamental competencies. Polish institutions of early childhood education need to be
adapted on a case by case basis to the needs of parents and local communities so that they
could properly discharge their functions. For this reason, forms of early childhood education
should be highly diversified, but uniform in terms of high quality performance.
Parents should be able to feel that their decision to have a child will not be
excessively costly or risky
necessary measures to support it in its educational and economic
responsibilities.
What is of key importance for proper development of little children and for
their further achievements is their access to cheap, high quality institutions
providing early childhood education.
Parents are the most important source of safety and happiness
for their children. That is why the state should support them in
developing their educational skills,
It is important that the envisaged changes should be aimed
at integrating all initiatives concerning children
which refers to all parents since
all of them should be able to guide their children on a path to success in
life.
: all educational,
social, and health care institutions should cooperate within an integrated
system focused on satisfying basic needs of children.
STRATEGY VISION
More children livingin happy families,
not exposed to poverty
MORE COMPLEX AND EFFICIENTFAMILY POLICIES
1
143 The Report on Intellectual Capital of Poland
SUCCESS INDICATORS
Polish schools can be only as good as good Polish teachers are.
A good school is able to
balance its elitist and egalitarian functions.
Polish schools should cooperate closer with
parents in planning children's development and in sharing
Teachers should constitute one of the most prestigious professions in Poland.
Improvement in the quality of education requires changing the system of selection
and recruitment, as well as training, and promotion of teachers. Teaching at school
should be an attractive career for able graduates of higher education institutions.
Teacher education and training programmes should include practical training to a
bigger extent, while teachers' salary levels and career path must be based on the evaluation
of their teaching results and should motivate them to continuous development throughout
the whole period of their teaching careers.
What makes a good school is not only the results achieved by its best students,
but also the quality of work with pupils performing poorly.
Thus, educational activity must be
characterized by the individualized approach to every pupil who should be set
challenges that are suitable for his/her individual abilities and interests. Apart from
providing knowledge, school should develop, to a greater extent than it does at present,
such attitudes and social skills as creativity, openness and responsibility. This is the only way
in which education can be effective in performing its equalizing functions.
The impact of school education upon pupils' attainments is insignificant compared to that
of the family relationship capital. Thus,
educational tasks.
It requires raising both the authority of school and teachers as well as parents' skills.
What may ensure an inflow of quality teaching staff to Polish schools are: effective selection
procedures for higher education candidates, enhancement of the practical component in
teacher training programmes, and remuneration above the average pay already at
the beginning of the teaching career.
What offers a chance for unleashing the initiative of millions of parents
is equipping the involved parents with tools enabling them to shape
the educational environment of their children, and developing a public
system based on the principle of subsidiarity.
Allocating funds from the public budget according to the preferences
of parents most interested in their children's education will contribute
to increasing their involvement.
Polish schools recognizedworldwide for their quality
education, competent teachingstaff, and effective cooperation
with parents
INCREASINGQUALITY
OF EDUCATION
Improved average attainment level of the bottom 20% of pupils;
improved average attainment level of the top 20% of pupils;
decrease in the percentage of pupils repeating forms or leaving
the school system early;
more attractive remuneration for beginning teachers compared
with the average national pay;
increased percentage of the bonus component, related to teacher's
performance evaluation, in his/her total remuneration;
less correlation between pupils' results achieved in external
examinations and in PISA tests, and the social and economic
background of their parents;
higher percentage of the best students choosing pedagogical studies;
higher level of academic attainment of students choosing teaching as a career;
higher ranking of teaching in terms of the profession's prestige;
higher percentage of parents attending educational courses.
144
STRATEGY VISION
2
The system of higher education in Poland urgently needs a reform which
will make it more responsive to the needs of the Polish society and economy.
The usability of higher education can be increased by selecting and promoting
strategic fields of study in the context of changes occurring in human civilization.
A reform of
teaching methods should emphasize not only the quality of knowledge, but also
general competencies enabling students to perform well in a fast changing
environment of the labour market.
There has been a rapid increase in the scholarization ratio in recent years, but the quality
of the Polish education system still poses a problem. Higher education institutions are
expected to set up new horizons and to shape the future of the society. They are burdened
with a huge responsibility for the quality of Polish intellectuals, including doctors, engineers,
scientists, and politicians.
It is also necessary to disseminate among potential students information about the forecasted
demand for graduates of specific degree programmes, and to develop a new system of grants
and scholarships ensuring better access to the most important fields of study.
Changes in the higher education sector should also involve the management level of higher
education institutions, and the academic teacher evaluation system. This requires, among
others, ensuring quality HR management in Polish higher education institutions, beginning
with the staff recruitment and selection procedures, through competence and performance
assessment, ending with career planning programmes.
What seems to be a significant factor influencing the performance of
academic employees is the individualization of their career paths. Some
academics will do better as teachers, others as researchers. Managing to tie the system of allocating funds to the quality of performance
will result in a chance for creating strong academic centres
attracting the best scientists and producing graduates recognized
all over the world. Polish higher education institutions may
become a breeding ground for worldwide talents.
Polish institutionsof higher education
as a breeding ground for worldwide talents
FOCUSING THE SYSTEM OF EDUCATION ON
THE NEEDS OF THE LABOUR MARKET
increase in the number of participants in Ph.D. studies;
increased percentage of adult Poles involved in education programmes;
increase in the percentage of young holders of Ph.D. and professorial degrees
(aged 30-40);
increase in the number of publications in scientific journals from
the ISI Master Journal List;
increased percentage of students choosing science and technology fields
of study;
increase in the number of Polish higher education institutions included in
the Shanghai Ranking;
increased share of business sector in science funding;
increased number of holders of academic degrees employed in the business
sector;
increased occupational mobility rates;
more favourable assessment of key competencies of higher education institutions'
graduates by employers;
increase in the number of academic teachers and students participating in foreign
exchange programmes, and a greater number of foreign students and academic
teachers in Polish higher education institutions.
3
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SUCCESS INDICATORS
STRATEGY VISION
The Report on Intellectual Capital of Poland
An increase in the level of economic activity of senior citizens can be achieved
only as a result of introducing a proper set of policies, which, on the one hand,
will discourage elderly people from early retirement, and, at the same time,
will enable them to be competitive in the labour market, and protect them
against discrimination.
Higher participation of senior citizens in education and their increased readiness
to undertake jobs are determined by their health status.
Changes in the social benefits system should be followed by an intensive campaign promoting
demand for elderly employees in the labour market. This seems to be even more
important since the existing stereotypes, according to which the elderly are perceived
as useless in the labour market, have a consciousness shaping effect both on the working
population and on senior citizens themselves, who often have low self-esteem.
This makes it necessary
not only to increase the accessibility and the quality of treatment, but also to improve
health prevention and diagnostics, which should be coupled with promotion of healthy lifestyle.
Fitness is one of the elements of protection against illness. Therefore, senior citizens should
be supported in their attempts to keep fit for as long as reasonably possible. The postulate
of keeping fit is one of the leading requirements in contemporary geriatrics and one of
the objectives included in broadly understood care programmes for elderly people.
A significant increase in the level of senior citizens' self-esteem and their opinion on their
abilities, which is necessary for their active participation in the economic life, can also be
achieved by promoting participation of elderly people in cultural and social life: in NGOs,
in Universities of the Third Age, in local community clubs for elderly people etc.
Sunny, warm and active time of the autumn
of life in Poland
ACTIVATING THE POTENTIAL
OF SENIOR CITIZENS
higher rate of participation in the labour market for
people aged 50+;
higher average age of retirement;
higher rate of participation in lifelong education programmes
among the population aged over 40 years;
higher life expectancy for people aged 50/60;
higher healthy life expectancy for people aged 50/60;
higher percentage of elderly people (50+) assessing their
health status as good or very good;
higher percentage of people aged over 50 involved
in voluntary work;
higher percentage of people aged 50+ involved in cultural
and social life.
4
146
SUCCESS INDICATORS
STRATEGY VISION
Investing in education and human capital development must be coupled
with creating new workplaces in Poland where this huge human potential
will be properly utilized and developed.
more funds should be allocated to finance those areas in
which the country can become competitive in the future.
it is necessary to introduce fully integrated solutions that
will support not only Polish exports, but also the global expansion and
the development of business relationships networks of Polish companies.
of corporate
intangible assets, it seems advisable to popularize high standards of intellectual
capital management among Polish entrepreneurs as well.
Otherwise, well educated and highly
qualified professionals will start leaving the country taking advantage of the openness
of the globalizing world.
Instead of directing vast allocations to dying industries and thus helping to keep
their privileges, or acquiring short-term investments based on the competitive advantage
of cheap labour force,
Nowadays, the leading providers' products and services are developed with regard to
the needs of a global customer, in cooperation with partners from all over the world.
Thus, on the one hand,
What is
also important is extensive promotion of Poland and popularization of the success stories
of Polish companies and Polish talents in such fields as innovative services, engineering and
design, or high technologies. On the other hand, it is essential to find ways to effectively
attract foreign high value-added investments, which will increase the intellectual capital
and innovativeness of the country.
Public administration has a huge role to play in raising the innovation awareness of Polish
entrepreneurs and enterprises, and in increasing their risk acceptance. For example,
the public procurement system in Poland may be used for the purposes of promoting new
solutions and technologies in Polish business. Considering the increasing role
Innovative businesses using and developingtheir human capital
SYNERGY OF SCIENCE, BUSINESS AND CULTURE.
CREATING VALUE-ADDED WORKPLACES
Nowadays, successful new products or services are rarely
developed single-handedly
At present, the worlds of science, business and culture in Poland
are not mutually supportive. It would be advisable to find scope
for incorporating into higher education programmes such
components as interdisciplinarity and incentives for students
and scientists specializing in different disciplines to cooperate
with each other.
. Success stories of the most innovative
global businesses are based on creative cooperation of engineers,
developing state-of-the-art technologies, artists and designers, imparting
an attractive and exceptional form to them, and managers,
able to turn an invention into a commercial success. More and more
often a new quality appears at points where different areas of knowledge
meet. A perfect platform supporting such cooperation, enabling
direct access to the most recent developments, and facilitating
communication, is the Internet. Therefore, efforts should be taken
to make Poland a huge area with a free-of-charge access to the Internet.
147
STRATEGY VISION
5
The Report on Intellectual Capital of Poland
Poland may become the most business-friendly environment in Europe
provided that the state concentrates on supporting companies and
enterprises in increasing their competitiveness, instead of controlling
them and hindering their development needlessly.
It is a challenging task for the public administration and civil service to make
good law and support Polish entrepreneurs, as it involves the imperative to
start by changing their own environment.
An efficiently running
business requires a reliable, well developed Infrastructure, a small fraction of which
is the Internet. It needs an extensive network of roads, airports and railways with
station buildings, as well as telecommunications and delivery networks, and social
networks. Circulation of people, goods, and information should not pose a problem.
Legal regulations will be conducive to business competitiveness if they are based
on trust in relations between the state and its citizens and entrepreneurs, and,
moreover, if they are simple, easy to understand, apply and enforce, and, in particular,
if there are as few of them as possible. Entrepreneurs would rather be busy increasing
their personal income gains and their corporate capital than looking for loopholes
in complicated tax systems or evading unfriendly legal provisions.
Civil service should be managed in
accordance with the best market practices. Public administration institutions should use
HR policies, including setting personal goals and key success indicators. It pays to put
human potential to good use, e.g. by introducing an interdepartmental staff rotation policy
connected with career promotion, and it also pays to stimulate officials to innovativeness
and to taking responsibility for the development of their institutions.
INCREASING THE QUALITY OF BUSINESS LEGAL
ENVIRONMENT, PROCEDURES AND INFRASTRUCTURE
6
An important tool in improving business performance and efficiency
is making the Internet publicly available and adapting the administrative
services to the needs of the business sector. Well developed e-administration,
and e-signature and e-documents in common use will guarantee shorter
procedures, a comfortable form of contact with administrative authorities,
and savings in terms of both time and money for all the concerned parties
i.e. entrepreneurs and the administrative sector, which will be able to
employ fewer staff, but with higher qualifications. Popularization of
the Internet also offers a chance of developing new industries, entering into
new global business relationships, and providing new, attractive workplaces.
higher rating in Doing Business;
smaller number of export and import procedures;
shorter time and fewer procedures related to setting up and
winding up a business;
lower proportion of time spent by corporate management on
dealing with administrative matters;
lower participation of costs other than pay costs in the total labour
costs;
shorter time of contract enforcement procedures in court;
broader range of e-administration services available.
148
SUCCESS INDICATORS
STRATEGY VISION
Poland as the most business-friendly
environment
What is of the utmost importance at present is increasing the innovative capacity and
competitiveness of Polish scientific and academic research institutions. This requires first
of all increasing outlays on education, coupled with implementing mechanisms ensuring
high quality of research, such as awarding funds by way of grant competitions. It would
also be advisable to broaden the scope of cooperation between higher education
institutions and business, to increase expenditure on research and development activities,
and to raise corporate participation in financing science.
Moreover, it is essential to increase the mobility of scientists (both within
and outside the country) and to make the results of their work more
transparent and accessible, while they themselves should be encouraged
to take attitudes of greater openness for changes and new developments.
higher percentage of innovative companies;
better assessment of cooperation between businesses and higher education institutions;
increase in the number of patents per 1 million inhabitants;
higher share of allocations to research and development projects
in the total budgetary allocations for scientific and academic research;
increased corporate participation in the science financing structure.
149
SUCCESS INDICATORS
The Report on Intellectual Capital of Poland
As Peter Drucker said, if something cannot be measured, then it cannot be
managed.
regular measuring of all important indicators is of key importance.
It is also important to simplify the existing procedures for access to statistical
data collected by various institutions including the Central Statistical Office
(GUS), the Ministry of Labour and Social Policy, the Ministry of National
Education, or the National Bank of Poland.
One cannot possibly improve the quality of education without monitoring
educational results since otherwise it is impossible to determine whether the changes
in the system of funding and organizing schools' activities have any positive effect.
For this reason,
Such countries as Sweden, Israel, or Korea have their reports on the national intellectual
capital published regularly, monitoring for changes of the most important indicators
which define the national potential for development. Other countries, such as Austria
or Japan, have made it obligatory for higher education institutions and large-size companies
to report on their intellectual capital. The significance of IC indicators measurement
is stressed by world famous experts, including Prof Thomas Housel
[ ], or Prof Lev Baruch
[ ]. As the assessment of
the intellectual capital of Poland has shown lack of regular measurement in many areas
which are important for the future of Poland, such as: the extent to which graduates
of higher education institutions are prepared to perform well in the labour market;
the quality of early childhood education; or the efficiency of the public administration.
Numerous important indicators monitored by other countries are missing in the Polish
system, and databases enabling to do a comparative analysis for an individual region or
municipality in Poland are often not available.
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=13
http://www.innowacyjnosc.gpw.pl/kip/index.php?m=18
Poland consistent in building its international
competitiveness based on its intellectual capital
MEASURING INTELLECTUAL
CAPITAL INDICATORS REGULARLY
promotion of reporting on intellectual capital as a good
practice done by businesses, public administration units, higher
education institutions, and municipalities;
using data presented in the intellectual capital assessment to
re-allocate funds received from the EU structural funds;
higher rate of return on the public expenditure on education,
health and science;
higher public awareness of the fact that intellectual capital
is the main source of Poland's potential for development;
greater readiness of the interest groups to accept
reforms aimed at developing the intellectual capital of Poland.
150
SUCCESS INDICATORS
STRATEGY VISION
7
Effective development of the intellectual capital of Poland will require effort to change the traditional approach to the implementation of key reforms
Is:
Is:
Is:
Is:
Is:
Important reform projects are often conducted by one government department.
Ineffective system of interdepartmental consultation, offering no real possibility to exchange ideas or opinions.
Ineffective system of social consultations. NGOs have little genuine impact on the final shape of the accepted solutions.
Key reforms are often blocked by the opposition.
Lack of project-oriented approach results in wrongly identified scopes of functions and responsibilities; the concerned parties are not involved in the project development processes; there is no risk management in projects.
Should be:
Should be:
Should be:
Should be:
Should be:
Projects are conducted on the interdepartmental level and coordinated by the Prime Minister.
From the very beginning, projects are run with the use of team work methods, and of the knowledge of all parties involved in the process to improve the original ideas and projects.
From the very beginning, NGOs and media representatives are involved in the process as project team members.
Representatives of the parliamentary opposition are invited to participate in the project development. Key reforms are given priority over political divisions.
Projects are conducted by competent project managers: their managerial skills are more important than their factual knowledge of the subject.
Given the intention to initiate a debate on the intellectual capital of Poland, this report has been made available online, with the possibility to add remarks and comments related to its individual parts. You are welcome to take this opportunity at: .http://www.innowacyjnosc.gpw.pl/kip/
151 The Report on Intellectual Capital of Poland
Two scenarios for the development of Poland:
Poland as one of the poorest EU member countries(A scenario based on the assumption that Poland's economic policy in the next decade
resembles that implemented in the past decade.)
Poland as one of the most dynamically developing EU
member countries (A scenario based on the assumption that the recommendations provided in this report
are implemented.)
152
Poland as one of the poorest EU member countries –the pessimistic scenario, year 2030
Poland is the fastest ageing European country, which, coupled with the low
participation in the labour market of the female and elderly populations, results
in a rapid increase in social welfare expenditure with no rise on the income side.
Young people are glad to undertake jobs abroad where they are much better paid.
In order to reduce the huge budgetary deficit and public debt it is necessary to raise taxes,
which causes numerous businesses to move their seats to countries were taxes are lower.
Labour shortages are remedied by allowing migration inflows from poor African and Asian
countries, but, since no funds are allocated to the implementation of proper migration policies,
ghettos for the minorities start emerging in the suburban areas of Polish cities. People living
there are unemployed and receive social security benefits, which is an extra burden to
the public budget. Robberies and assaults plague all Polish towns and cities. Given the lack
of allocations to infrastructure investments, life in urban areas turns into a nightmare: it often
takes 2-3 hours to get to work because of huge traffic jams and roads full of holes.
Stress, low standard of living, poor access to health service, and no
health prevention policy resulting from budgetary reductions, make
which is a real tragedy in a situation when there is not even one child
per family due to high living costs and poor infrastructure.
Poland has been one of the poorest EU member countries for over
10 years already, and its income per capita is only slightly higher than
that in Albania.
Poland has not been able to cope with its energy deficiency problem
for over 20 years.stAt the beginning of the 21 century there used to be discussions about
taking the Irish or the Greek path. In the third decade of the 21st century
history books cite Poland as an example of the consequences of failure
to invest in the intellectual capital of a country.
Poland the only country in Europe in which life expectancy
rates are lowering, and infant mortality rates are increasing,
153 The Report on Intellectual Capital of Poland
Poland as one of the most dynamically developing EU member countries –the optimistic scenario,year 2030
Poland is a global e-service centre (e-education, e-medicine).
where it is possible to set up or to wind up a business
in 15 minutes on a free of charge basis, and where it does not take much longer to obtain an
administrative approval or a license.
which is one of the reasons why the budgetary tax revenues are high and the state can afford
to finance infrastructure investments and human capital development programmes.
It is a well organized country,
with unusually efficient e-offices,
Poland is a clean country, with lots of green areas. It is one of the favourite holiday
destinations for Europeans and Asian people.
Polish children receive quality education from the very beginning of their
school path thanks to an extensive network of modern nurseries and kindergartens.
Families can afford having more than two children and are able to maintain
perfect balance between work and family life.
The participation of senior citizens in the labour market is the highest in Europe,
There is an excellent functioning bullet train network
in Poland, and there are well developed underground
railway systems, connected with suburban train and fast
tram lines, in many urban centres, which makes it possible
to get to work quickly. There is no room for boredom
in Poland: local communities are vibrant with life, estate
and district events held by local people are perfect occasions
to socialize with neighbours and acquaintances, and nobody
is left alone.
Numerous international corporations have their head offices
in Poland;
A number of Polish universities have made their way
to the world's top 100 list, and they are chosen by
students from all over the world wishing to study in
Poland. Many of them stay in Poland after studies,
as the country offers very well paid jobs to well
educated and highly qualified candidates.
Polish engineers, IT specialists, doctors, and many
other professionals are globally recognized as top
experts, and their remuneration is much higher
than that offered to similar level professionals in
other EU member countries.
a number of Polish companies are counted
among the 100 biggest corporations in the world.
Poland is a breeding ground for innovation, which
are afterwards implemented in many countries on
all the continents.
154