POLISH BACKGROUND REPORT FOR OECD NATIONAL URBAN POLICY REVIEWS IN POLAND PART II

Transcription

1 POLISH BACKGROUND REPORT FOR OECD NATIONAL URBAN POLICY REVIEWS IN POLAND PART II by Polish Ministry for Regional Development Structural Policy Coordination Department Warsaw, May

2 CONTENTS 1 Institutional framework of urban development distribution of competences between different levels of public administration Introduction State government administration Territorial self-government units Trends within the scope of decentralisation and major reforms Financial framework of cities development Fiscal framework Fiscal regulations between different levels of government Cities budgets territorial self-government units Urban policy in Poland Legal conditions for development policy making Basic strategic documents Urban policy of central-level authorities Urban policy of self-government authorities Urban dimension of sectoral public policies Higher education Structural funds for science and higher education Housing policy Environmental policy Innovativeness and enterprise development Investment, including Foreign Direct Investment (FDI) Immigration Transport Mechanisms of coordination and cooperation Vertical cooperation Horizontal cooperation at the national level Horizontal cooperation at the local level, including urban level Horizontal and vertical cooperation, using the example of experience of Gmina Puszczykowo (Poznań metropolitan area) Land-use and planning Introduction

3 6.2. Change of structure of urbanised and built-up land in Poland between Characteristics of land use in cities with particular emphasis on urbanized land European Funds Balance of flows between Poland and the EU budget structural expenditure Urban dimension of European funds in Poland

4 1 Institutional framework of urban development distribution of competences between different levels of public administration This part of the report provides an answer to questions 10, 11, 12 from the II part of the questionnaire Introduction Urban development in Poland is done within general legal framework governing the functions and tasks of public administration in Poland both government and selfgovernment administration. The constitution of the Republic of Poland provides that gminas are the basic self-government unit, which ensures most public services at the local level. There are urban, urban-rural and rural gminas. The following types of cities may be identified in Poland depending on their administrative functions: 1. cities with poviat status/urban poviats (65) 1, including: - Warsaw as the capital of the country and other voivodeship capitals (18) 2 -Table 2, 2. other poviat-level cities (poviat capitals) 3. other cities (urban and parts of urban-rural gminas). The Polish law does not differentiate any public tasks, which would belong to the duties of cities as such. Public tasks are assigned at three levels of self-government within the administrative borders of the basic administrative division of Poland (voivodeship, poviat, gmina) Table 1. Urban development, therefore, is the natural process of the policy implemented by self-government authorities of gminas (both urban and urban-rural), and in the case of larger cities - also the policy implemented by the poviat. Cities, which act as gminas/poviats fulfil the tasks assigned to these administrative units by central government and State administration, where the implementation of the tasks lies within the competence of State authorities. These duties may be imposed on the cities by law or by voluntary agreements concluded with governmental agencies. 1 Urban poviat (city with poviat status) is a gmina with a city status carrying out the tasks of a poviat. Urban poviats are units of territorial self-government (territorial division of the country), introduced on 11 April 2001 with Article 3 sentence 1 of the Poviat Act, which provides that: "Poviat as a unit of the baseline territorial division of the country covers whole areas neighbouring gminas or the whole area of the city with poviat status. City with poviat status is thus both a gmina and a poviat. Such provision expressis verbis separates the one-gmina poviat (in the language of law denominated as cities with poviat status, in common legal use referred to as urban poviat). Article 91 (5) of the Poviat Act provides: "Therefore, if provisions refer to a urban poviat, it is understood that these provisions refer to cities with poviat status". 2 The term Voivodeship cities refers to cities which after 1 January 1999 are the seat of the voivode and (or) Sejmik of the Voivodeship. 4

5 The general responsibility clause provides that cities with gmina/poviat status are responsible for all public issues of local importance, which have not been assigned by law to other institutions or authorities. The tasks of the cities concentrate on satisfying collective needs of the community as regards public services. Cities may also carry out tasks reserved for regional self-governments, but only on the basis of voluntary agreements. Table 1 List of administrative units as of Specification Administrative units Cities Subsidiar y units Povia ts Cities with poviat status Gminas Tot al urba n rura l urba n- rural Tot al inclu ding in urba n- rural gmin as distr icts del eg at ur es POLAND Dolnośląskie Kujawsko- Pomorskie Lubelskie Lubuskie Łódzkie Małopolskie Mazowieckie Opolskie Podkarpacki e Podlaskie Pomorskie

6 Śląskie Świętokrzys kie Warmińskomazurskie Wielkopolski e Zachodniopo morskie Table 2 Names of 16 voivodeships and their capitals Voivodeship Voivodeship City Area of voivodeship km² Dolnośląskie Wrocław 19, Kujawsko-Pomorskie Bydgoszcz ¹ Toruń ² 17, Lubelskie Lublin 25, Lubuskie Gorzów Wielkopolski ¹ Zielona Góra ² 13, Łódzkie Łódź 18, Małopolskie Kraków 15, Mazowieckie Warsaw 35, Opolskie Opole 9, Podkarpackie Rzeszów 17, Podlaskie Białystok 20, Pomorskie Gdańsk 18, Śląskie Katowice 12, Świętokrzyskie Kielce 11,

7 Warmińsko-Mazurskie Olsztyn 24, Wielkopolskie Poznań 29, Zachodniopomorskie Szczecin 22, Dolnośląskie Wrocław 19, Kujawsko-pomorskie Bydgoszcz ¹ Toruń ² 17, (¹) seat of the Voivode, (²) seat of Voivodeship Sejmik and Marshal s Office The simplest division of public administration has been applied to central and field authorities/territorial organs. Central authorities are at the highest level of administration structure. Their territorial range covers the territory of the whole country. Territorial organs manage only a section of Poland s territory (one of administrative division units) and remain the lower level of governance structure. Central authorities belong to two groups: supreme authorities of the State: Council of Ministers, President of the Council of Ministers and the ministers, National Broadcasting Council and commissions and committees, central offices are those central bodies, which are not classified as supreme authorities they supervised by the President of the Council of Ministers or respective ministers, e.g. Polish Committee for Standardization. Field administrative authorities include: organisational units of state government administration (voivode representing general administration and non-combined administration bodies), territorial self-government bodies (voivodeship, poviat and gmina levels). In Poland, public administration consists of state government administration and self-government administration State government administration At central level state government administration comprises the Council of Ministers, headed by the President of the Council of Ministers, and respective ministers. At voivodeship level - voivodes. Voivode is a body of state government administration and government representative in a voivodeship, exercising executive power within the territory of the voivodeship; voivode is appointed by the President of the Council of Ministers. It is also a supervisory authority over territorial self-government bodies. Government administration bodies have at their disposal subsidiary tools, namely various offices for Ministers these are ministries, for Voivodes there are voivodeship offices. 7

8 Council of Ministers The scope of state government administration segments is specified in the Act of 4 September 1997 on government administration Sections (consolidated text: Dz. U. of 2007, No. 65, item 437. Amendment of the consolidated text was notified to the Dz. U. of 2009, No. 77, item 649). The Act introduced the division of government administration into Sections, i.e. thematically grouped areas of activity lying within the competence of the Council of Ministers. In accordance with the Act, Ministers may govern one or more activities of the administration. Such solution allows the President of the Council of Ministers for flexible shaping government structure by changing the number of ministries and scope of Ministers competences. In its current form, the Act provides for 34 Sections of government administration (shaped now into 17 ministries). All Sections of government administration are presented below, complete with detailed information concerning those which have greatest impact on urban development. I. Section: public administration covering the following matters: 1) administration, including organisation of public administration offices and administrative procedures; 2) reforms and organisation of public administration structures; 3) combined government administration in a voivodeship; 4) administrative division of the State and names of settlement units and physiographic structures; 4a) geodesy and cartography; 5) public fund-raising; 6) running a register of entities carrying out professional lobbing activities. Minister competent for public administration supervises the operations of the Chief National Geodesist, National Affranchisement Commission and - on the basis of legality criterion - the operations of Regional Audit Chambers. Ia) Section: construction, spatial and housing management covering the matters of: 1) architecture; 2) construction; 3) architectural and building supervision; 4) spatial development; 5) support for housing; 6) real estate management, unless separate provisions provide otherwise; 7) urban policy; 8) governmental programmes for municipal infrastructure development; II. Section: budget covering the matters of: 8

9 1) preparing State budget, execution except for matters reserved for the competence of the Minister competent for public finance of the State budget, controlling the execution of the State budget, preparing reports from the execution of the State budget and supervision over the activity of bodies issuing judgements in cases concerning violation of budgetary discipline; 2) system of financing: a) of territorial self-governments, b) of the public sector, c) of State safety and security; 3) managing public debt. III. Section: public finance covering matters of implementing revenues and expenditures of the State budget. Minister competent for public finance is responsible, pursuant to the rules, within the scope and limits set forth in separate provisions, in particular for: 1) implementation of revenues from direct and indirect taxes, as well as other fees; 2) coordination and organisation of financial, credit and payment-related cooperation with foreign countries, cooperation in processing matters related thereto and cooperation with international financial organisations; 3) enforcement of customs provisions; 4) financing units carrying out the tasks covered by the State budget and financing territorial self-governments; 5) claiming State Treasury receivables; 6) games of chance, mutual wagering and slot machine games; 7) accounting; 8) foreign exchange law; 9) balance of public sector finances and forecasting of the balance of payments; 10) fiscal control and supervision over fiscal control bodies; 10a) coordination of financial control and internal audit in the units of the public finance sector; 11) prices. The General Fiscal Control Inspector, Presidents of Tax Chambers and Heads of Tax Offices, as well as Presidents of Customs Chambers and Heads of Customs Offices report to the Minister competent for public finance. IV. Section: economy covering the matters of the economy, including economic cooperation with foreign countries, energy sector, certification, intellectual property, economic activity and cooperation with economic self-government organisations. The responsibilities of the Minister competent for economy include in particular the matters of: 9

10 1) functioning of national energy systems, taking account of the rules of rational economy and the needs of national energy security; 2) activity related to the use of nuclear energy to satisfy the socio-economic needs of the country; 3) control of turnover in goods and technologies with foreign countries in relation to international agreements and commitments; 4) setting customs tariffs, contingencies and introduction of bans on import and export of goods and technologies; 5) supervision over provision of serviced relating to electronic signature within the meaning of provisions on electronic signature; Minister competent for the economy supervises the operations of the President of the Central Office of Measures and the President of the Energy Regulatory Office and over the operations of the Patent Office of the Republic of Poland. V. Section: maritime economy; VI. VII. Section: water economy; Section: financial institutions; VII.a) Section: computerisation covering the matters of: 1) computerisation of public administration; 2) ITC systems and networks for public administration; 3) information technologies and techniques; 4) IT standards; 5) supporting investments in the field of IT; 6) application of information technologies in the information society; 7) development of information society; 8) implementation of Poland s international commitments in the field of computerisation. VIII. Section: Membership of the Republic of Poland in the European Union; IX. Section: culture and protection of national heritage covering the matters of development and protection of material and non-material national heritage and matters of cultural activity, including the State s patronage over that activity, in particular as regards: 1) maintaining and disseminating national and State traditions; 2) protection of historical monuments; 3) activities of museums; 4) national remembrance sites, war graves and cemeteries, annihilation monuments and their protection areas; 10

11 5) creative and artistic activity, folk culture and handicraft and their protection; 6) publishing houses, book sales, libraries and reading; 7) cultural education; 8) art exhibitions; 9) audiovisual policy; 10) amateur art movement, regional organisations and associations and sociocultural organisations and associations; 11) cultural exchange with foreign countries; 12) show and entertainment activities. X. Section: physical recreation and sport; XI. Section: communication; XII. Section: science covering the matters of science, including research and development; XIII. Section: national defence; XIV. Section: education covering the matters of: 1) education, teaching, raising, physical recreation of youth and children except for matters reserved for the competence of other public administration bodies; 2) children and youth organisations, including the system of co-financing the State s tasks carried out by these organisations; 3) granting substantial assistance to children and youth; 4) international cooperation of children and youth. XV. Section: labour covering the matters of: 1) employment and counteracting unemployment; 2) employment contracts and work conditions; 3) remuneration and employee benefits; 4) collective employment contracts and collective litigations; 5) trade unions and employer organisations. XVI. Section: agriculture; XVII. Section: rural development covering the matters of: 1) shaping the agricultural system of the State; 2) protection of areas intended for agricultural use; 3) land consolidation and exchange, soil classification of land and division and distribution of property in rural areas; 4) rural infrastructure, in particular: 11

12 a) melioration, within the scope of matters not covered by water management Section, supply of rural areas and agriculture with water and wastewater and waste management, b) provision of electricity and gas within the scope not covered by the economy Section and installing telephones in rural areas within the scope not covered by the "communication" Section, c) agricultural technical works on State Treasury land; 5) development of entrepreneurship in particular raising professional qualifications, support for non-agricultural forms of professional and economic activity of rural residents; 6) social insurance of farmers. XVIIa. Section: regional development covering matters of: 1) programming and coordination of development policy, in particular preparation of development strategy drafts; 2) programming and implementation of development policy; 3) preparation of programme documents within the field of socioeconomic development of the country, including those which are the basis for obtaining development-related funds from the European Union and other international sources; 4) implementation, unless otherwise specified by the Act, the commitments of the Member State set forth in European Union legislation concerning structural funds and the Cohesion Fund; 5) preparation of analyses and forecasts concerning socio-economic development, regional and spatial development, including a report on socio-economic, regional and spatial development of the country; 6) issuing opinions concerning the compliance of government development strategies and programmes within the meaning of respective legislation on running development policy, as well as with medium-term national development strategy; 7) managing programmes co-financed under structural funds and the Cohesion Fund, including sectoral operational programmes, with the exception of programmes managed by Voivodeship authorities, by the Minister competent for rural development and the Minister competent for fisheries; 8) concluding, monitoring the implementation and settlement of voivodeship contracts; 9) cooperation with territorial self-government units and organisations associating these units, as well as socio-economic partners within the scope of socio-economic, regional and spatial development of the country; 10) coordination, preparation of regional operational programmes by voivodeship self-governments, conclusion of regional programme agreements and monitoring and assessment of their implementation. 12

13 XVIIb) Section: agricultural markets; XVIIc) Section: fisheries; XVIII. State Treasury; XIX. Section: judiciary; XX. Section: higher education covering matters of higher education, including those set forth in separate provisions concerning the matters of supervision over higher education institutions and matters of financing the education in higher education institutions. Minister competent for higher education coordinates the recognition of qualifications in regulated professions and activities and takes actions aiming at disclosing information on the recognition of these qualifications. XXI. Section: transport covering matters of: 1) functioning and development of transport infrastructure, in particular construction, modernisation and maintenance as well as protection of public roads, including motorways, along with the rail, aerodromes and airports, as well as inland water waterways as regards inland shipping transport; 2) road, rail and air transport as well as inland shipping transport; 3) transportation of persons and goods by road, rail, air and inland waterways; 4) public transport. Minister competent for transport supervises the operations of the President of the Civil Aviation Office, General Director of National Roads and Motorways, President of the Rail Transport Office and of the Main Road Transport Inspector. Transport Technical Supervision, inland shipping transport offices and Polish Air Navigation Services Agency report directly to the Minster competent for transport. XXI.a) Section: tourism covering the matters of tourist management of the country and mechanisms for the regulation of tourism market. XXII. Section: environment covering matters of: 1) protection and shaping of the environment and rational use of its resources; 2) landscape protection, including in national and landscape parks, natural reserves, and protection of plant and animal species, forests, wild animals and other nature elements protected by law; 3) geology; 4) managing natural resources; 5) controlling the compliance with environmental protection requirements and analysing the condition of the environment; 6) forestry; 7) protection of forests and forest land; 8) hunting; 13

14 9) genetically modified organisms, except for matters relating to issuing permits for marketing food and pharmaceutical products, as well as matters of genetically modified organisms intended for use as feedingstuffs and genetically modified feeds within the scope of some tasks and actions regulated by separate provisions. Minister competent for environment supervises the operations of the Chief Inspector for Environmental Protection and of the General Director for Environmental Protection. The President of the National Atomic Energy Agency, the President of the State Mining Authority report to the Minister competent for environment. The Minister supervises also the operations of the National Fund for Environmental Protection and Water Management and of the State Forests National Forest Holding. XXII.a) Section: family affairs covering matters of: 1) development and protection of the institution of marriage, children and family; 2) government programmes for supporting families, in particular families in difficult financial and social situation, as well as single parent families and of families with a large number of children; 3) counteracting pathologies and discrimination in a family; 4) demographic conditionalities in the country; 5) coordination and organisation of cooperation between public administration bodies, non-governmental organisations and institutions within the field of exercising the rights of the family, children and elderly persons requiring assistance; 6) international cooperation referring to exercising and protection of the rights of the family, children, youth, women, men and elderly persons. XXIII. Section: internal affairs covering the matters of: 1) protecting safety and security and public order; 2) protecting the State borders, border traffic control and foreigners, as well as coordination of actions relating to the State s migration policy; 3) contingency management; 4) civil protection; 5) fire protection; 6) counteracting the effects of natural disasters and similar events threatening general safety; 7) supervision over mountain and water rescue services; 8) citizenship; 9) population register, personal identification documents and passports; 10) registration of marital status and name changes. XXIV. religious beliefs and national and ethnic minorities; XXV. Section: social security covering the matters of: 14

15 1) social insurance and social security; 2) pension funds; 3) social assistance and family benefits; 4) social benefits, employment, social and professional rehabilitation of disabled persons; 5) war veterans and repressed persons; 6) coordination of social security systems, except for material medical benefits; 7) public interest activity, including supervision over running such activity by public interest organisations, with the exception of supervision over the activity relating to rescue and protection of persons. XXVI. Section: foreign affairs; XXVII. Section: health covering the matters of: 1) health protection and rules for the organisation of health care; 2) supervision over Medicinal Products, Medical Devices and Biocidal Products as well as over cosmetics as regards human health and safety; 3) organisation and supervision over the State Emergency Medical Services; 4) medical professions; 5) sanitary conditions and sanitary supervision, with the exception of supervision of food products covered by the agriculture Section, coordination of food safety, and in particular supervision over the health quality of food in the process of production, marketing and materials and products intended for contact with food; 6) genetically modified organisms as regards issuing permits for marketing new food and issuing permits for marketing pharmaceutical products; 7) health resorts treatment; 8) coordination of social security systems as regards material medical benefits. President of the Council of Ministers supervises the operations of government administration not covered by the competences of government administration Sections carried out by: Central Statistical Office; Polish Committee for Standardization; Office of Competition and Consumer Protection. Voivode A Voivode is a field authority/territorial organ of state government administration in a voivodeship and head of combined government within the territory of a voivodeship. The organisational and legal position of the Voivode is regulated by the Act of 23 January 2009 on voivodeship and government administration in a voivodeship (Dz. U. of 2009, No 31, item 206). Pursuant to Article 3, a Voivode is: 1) the representative of the Council of Ministers within the territory of the voivodeship; 2) the head of the combined government administration within a voivodeship; 15

16 3) the body of the combined government administration within a voivodeship; 4) the supervisory authority over territorial self-government bodies and their associations as regards their legality, with the reservation of paragraph 2; 5) the body of government administration in a voivodeship, whose competence stretches over all matters within the field of government administration within the voivodeship not reserved in separate Acts to other bodies of that administration; 6) the representative of the State Treasury within the scope and pursuant to the rules set forth in separate Acts; 7) higher-level body within the meaning of the Act of 14 June 1960 Code of Administrative Procedure (Dz. U. of 2000, No 98, item 1071, as amended 2). Voivode controls the legality, efficiency and reliability of tasks carried out by territorial self-government bodies within the field of government administration, implemented by those bodies on the basis of the Act or agreements concluded with government administration bodies. Tasks and competences of the Voivode in exceptional circumstances are set forth in separate Acts. Voivode is responsible for the implementation of the Council of Ministers policies in the voivodeship, in particular: adjusts the objectives of the Council of Ministers policies to local conditions and, within the scope and under the rules set forth in separate Acts, coordinated and controls the implementation of tasks resulting therefrom; ensures cooperation of all government and self-government administration bodies operating within the voivodeship and manages their activities as regards preventing threats to life, health or property of citizens and environmental hazards, State security and maintaining public order, protection of citizen rights, as well as preventing natural disasters and other exceptional dangers, as well as counteracting and mitigating effects thereof, pursuant to the provisions of separate Acts; adjusts the detailed objectives of government policies to local conditions and, within the scope and under the rules set forth in separate Acts, coordinated and controls the implementation of tasks resulting therefrom; assesses the level of flood protection of the voivodeship, prepares flood protection contingency plan and declares and cancels flood emergency and alarm; implements and coordinates tasks regarding the defence and security of the State and contingency management resulting from separate Acts; presents the Council of Ministers, through the Minister competent for public administration, draft government documents referring to voivodeship-specific matters; carries out other tasks specified in separate Acts and identified by the Council of Ministers and the President of the Council of Ministers. 16

17 1.3. Territorial self-government units This section describes the individual levels of Polish territorial division. Since the administrative reform took effect (Act of 24 July 1998 on the introduction of the three-tier administrative division of the country (Dz. U. No. 96, item 603 and No. 104, item 656)), i.e. since 1 January 1999 Poland has a three-level structure of territorial division/authority, namely: 1. gmina self-government gmina (urban, urban-rural, rural) 2,478 gminas, including 65 gminas being cities with poviat status; 2. poviat self-government poviat (land [ziemski], urban [grodzki]) 314 poviats and 65 cities with poviat status; 3. voivodeships self-government 16. The legal and institutional framework for the operation of the territorial selfgovernment is set out in Chapter VII of the Constitution of the Republic of Poland. Moreover, the Capital City of Warsaw functions in line with the Act of 15 March 2002 on the political system of the Capital City of Warsaw. The Act provides that Warsaw is a gmina that is a city with a poviat status. Warsaw City Council is the decisionmaking body for the city. It consists of 60 Council members selected under a fourpoint electoral system (direct, equal, anonymous and universal). The Act states also that apart from the tasks provided for in the regulations on the gmina and poviat self-governments, the Capital City of Warsaw ensures conditions necessary for: operation of the general and central authorities of the State, foreign diplomatic representations and consular offices, as well as international organizations within the territory of the city; receiving foreign delegations, functioning of public facilities of infrastructural nature, which are significant from the perspective of fulfilling the metropolitan functions of a city. These tasks are part of the set of tasks delegated from the level of government administration. The territorial self-government units carry out their tasks through decision-making bodies (Gmina or Poviat Council, Sejmik of the Voivodeship) and executive bodies (Voit, Poviat Board, Voivodeship Board). The members of the decision-making bodies are selected under universal, equal, direct and anonymous elections. Poviat is a part of a voivodeship and it concentrates within its territory several neighbouring gminas (land poviat). There are also isolated gminas cities with poviat status, i.e. urban poviats. Cities, which lost their status of voivodeship cities, were covered by this group, i.e. the group of cities with poviat status. 17

18 Gmina Act of 8 March 1990 on gmina self-government (consolidated text: Dz. U. of 2001, No. 142, item Amendment of the consolidated text was notified to the Dz. U. of 2009, No. 52, item 420). The Act sets the organisational structure of the authorities and their competences in territorial self-government units such as gminas. The provisions of the Act granted legal personality to gminas. Gmina is the basic and at the same time the smallest territorial self-government unit. It brings together all inhabitants within its borders and it performs tasks within the scope of administration. This implies that according to the rules of law all inhabitants of a given gmina constitute an association which has legal personality and fulfils administrative tasks. Gminas are managed by a city Mayor, or in the case of urban or urban-rural gminas respectively by a city and gmina Mayor, and in the case of only rural gminas Voit, and if the gmina is a large city President of the City. The President of the City, Mayor or Voit are selected under direct elections. It is an executive body. The decision-making and monitoring competences in the gmina are fulfilled by the Gmina Council, in the case of a city by a city Council and if it is a city and a gmina City and Gmina Council, if only rural gmina Gmina Council. The Council consists of Council members selected for a four-year office; it is headed by the president of the city Council, City and Gmina Council or only the Gmina Council. The Council may decide on all self-government issues if they were not subject to decision-making procedure of other entities. The largest gmina in Poland in respect to territory is Pisz in the Piski Poviat (635 km²), and the smallest urban gmina in Poland in respect to territory is Górowo Iławeckie in Bartoszycki Poviat (3.32 km²). The smallest rural gmina in Poland in respect to territory is Jejkowice in Rybnicki Poviat (7.59 km²). Tasks of gmina The scope of gmina tasks covers all public issues of local character, which are not reserved for other entities in separate legal acts. These tasks are divided into inherent tasks defined in the Act, and delegated tasks assigned by State authorities. The inhabitants participate in exercising power within the territory of their gmina by voting: in self-government elections and in a local referendum or through gmina bodies. As regards the tasks related to the development policy the Act entrusts to the Gmina Council the tasks related to the adoption of the study on conditions and directions related to physical development of the commune and local spatial development plans, as well as adoption of the economic programmes. Tasks of a gmina (Article 7 of the Act) the inherent tasks of a gmina cover the fulfilment of collective needs of the community. The inherent tasks of a gmina cover, in particular, issues concerning: 18

19 1) spatial order, real estate management, environmental and natural protection, as well as water management; 2) gmina roads, streets, bridges, squares and road traffic organizations; 3) pipeline and water supply system, sewerage system, urban waste water disposal and treatment, maintenance of cleanliness and order and sanitary facilities, landfills and disposal of urban waste, supply of electricity, heat and gas; 4) local collective transport, 5) health protection; 6) social assistance, including care centres and facilities; 7) gmina housing; 8) public education; 9) culture, including gmina libraries and other facilities disseminating culture; 10) physical culture and tourism, including recreational areas and sports facilities; 11) markets and market halls; 12) gmina green areas and afforestation; 13) gmina cemeteries; 14) public order and citizens safety, as well as fire protection and flood protection, including equipment and maintenance of the storehouse of flood protection materials run by the gmina, 15) maintenance of public utility buildings and facilities of the gmina, as well as maintenance of administrative buildings; 16) pro-family policies, including ensuring social, medical and legal protection for pregnant women; 17) support for and dissemination of the self-government concept; 18) gmina promotion; 19) cooperation with non-governmental organisations (NGOs); 20) cooperation with local and regional communities in other countries. The Act also points to the fact that some tasks may be delegated to the gmina by way of separate legal acts. Poviat Act of 5 June 1998 on poviat self-government (consolidated text: Dz. U. of 2001, No. 142, item Amendment of the consolidated text was notified to the Dz. U. of 2009, No. 92, item 753). The Act determines the organisational structure of the authorities and their competences in territorial self-government units such as poviats. The provisions of the Act granted legal personality to poviats. 19

20 Poviats fulfil public tasks of supra-regional character, which are defined in legal acts. The bodies of the poviat cover: Poviat Council, which is a decision-making and control body, as well as Poviat Board that is an executive body. The Board is managed by the Staroste. The Poviat Council consists of Council members selected for a four-year office in direct elections. The works of the Poviat Council are guided by a chairman. As regards the tasks related to the development policy the Act entrusts to the Poviat Council the tasks related to the adoption of the poviat programme for crime prevention and protection of citizens' safety and public order, as well as poviat programme for counteracting unemployment and activation of the local labour market. Poviats can be divided into land and urban poviats. Urban poviat is an urban gmina, which was awarded competences fulfilled by the poviat administration within its area. In short, it can be said that an urban poviat fulfils the same administrative functions within its areas as the land poviat. Urban poviats are covered by gmina administration. Urban poviats in Poland are the former capital cities of voivodeships, which fulfilled this function before the administrative reform took effect on 1 January Land poviat it covers with its scope a much greater territory than gmina; it is always the area of a few or even several gminas. The poviat self-government fulfils administrative functions, which are not reserved for other entities, within its territory. Poviats perform public tasks of supra-regional character, which are defined in legal acts, within the following scope: 1) public education; 2) health promotion and protection; 3) social assistance; 4) pro-family policies; 5) support for disabled persons; 6) collective transport and public roads; 7) culture and protection of cultural values; 8) physical culture and tourism; 9) geodesy, cartography and cadastre; 10) real estate management; 11) architecture and construction administration; 12) water management; 13) environmental and natural protection; 14) agriculture, forestry and inland fisheries; 20

21 15) public order and citizens' safety; 16) flood protection, including equipment and maintenance of the storehouse of flood protection materials run by the poviat, fire protection and prevention of other extraordinary threats to human life and health and the environment; 17) counteracting unemployment and activation of the local labour market; 18) protection of consumer rights; 19) maintenance of public utility buildings and facilities of the poviat, as well as maintenance of administrative buildings; 20) defence powers; 21) poviat promotion; 22) cooperation with NGOs. The Act also points to the fact that some tasks may be delegated to the poviat by way of separate legal acts. Voivodeship Act of 5 June 1998 on voivodeship self-government (consolidated text: Dz. U. of 2001, No. 142, item Amendment of the consolidated text was notified to the Dz. U. of 2008, No. 223, item 1458). The Act determines the organisational structure of the authorities and their competences in territorial self-government units such as voivodeships. The provisions of the Act granted legal personality to voivodeships. According to the rules of law voivodeship is established by its inhabitants that form a regional self-government community. The activities performed by the voivodeship self-government do not affect the independence of poviats and gminas. The bodies of the voivodeship self-government are not supervisory or control bodies towards poviat and gmina bodies, and they are not higher-level bodies in administrative proceedings. The voivodeship bodies cover: Sejmik of the Voivodeship, which is a decisionmaking and control body, as well as Voivodeship Board that is an executive body. Marshal of the Voivodeship heads the Board. As regards the tasks related to the development policy the provisions define that the voivodeship self-government establishes the development strategy and it conducts voivodeship development policies; it also prepares the spatial development plan for the voivodeship. The Sejmik of the Voivodeship defines the rules, mode and schedule of elaborating the voivodeship development strategy. The Voivodeship board prepares a draft of the strategy, while the competences of the Sejmik cover its adoption. The Act indicates the objectives that must be considered in such a document and it determines its structure. It also presents the scope of dependency between such a document and the strategies developed at the national level. The strategy is implemented through voivodeship and regional operational programmes. 21

22 The Act gives the possibility to transfer to the voivodeship the property of the State Treasury if it will be used for the purpose of implementing the voivodeship development strategy or regional operational programmes. The Act also points to the areas, in which the voivodeship self-government performs tasks of voivodeship character that are defined in legal acts, especially within the scope of: 1) public education, including higher education; 2) health promotion and protection, 3) culture and protection of its goods; 4) social assistance; 5) pro-family policies; 6) modernisation of rural areas. 7) spatial development; 8) environmental protection; 9) water management, including flood protection, in particular equipment and maintenance of the storehouse of flood protection materials run by the voivodeship; 10) collective transport and public roads; 11) physical culture and tourism; 12) protection of consumer rights; 13) defence powers; 14) public safety; 15) counteracting unemployment and activation of the local labour market. Self-government units (gminas, poviats, voivodeships) can provide some of the services together or they can conclude agreements on delegating some part of the services provision on some other self-government unit. Experts state that in Poland there are two major types of services, for which the division of responsibilities and competences as regards functional urban areas is unclear. As for the public transport sector a large city, which renders transport services under agreement with neighbouring gminas, usually fulfils a supreme role. Railway lines are managed by separate public companies, which are responsible before national or regional agencies. Apart from the Silesian agglomeration, there are no public agencies, which would coordinate public transport within given urban areas. Another example is medial service, which is funded mainly by the National Health Fund, i.e. from the resources originating outside of self-government budgets. The majority of hospitals are officially owned by self-governments; however, they operate independently from them. 22

23 Official documents pertaining to the administrative structure: 1. Act of 8 March 1990 on gmina self-government (Dz. U. 1990, No. 16, item 95); 2. Act of 4 September 1997 on government administration departments (Dz.U. 1997, No 141, item 943); 3. Act of 5 June 1998 on government administration in voivodeships (Dz.U. 1998, No 91, item 577); 4. Act of 5 June 1998 on poviat self-government (Dz. U. of 2001, No. 142, item 1592); 5. Act of 5 June 1998 on voivodeship self-government (Dz. U. 1998, No. 91, item 576); 6. Act of 28 July 1998 on the introduction of the three-tier administrative division of the country (Dz.U ). 7. Act of 24 July 1998 concerning the entry into force of the Act on poviat selfgovernment, Act on voivodeship self-government and the Act on government administration in voivodeships (Dz. U. 1998, No. 99, item 631); 8. Act of 20 June 2002 on direct elections of the Voit, Mayor and President of the City (Dz. U. of 20 July 2002) Trends within the scope of decentralisation and major reforms As of 1 January 1999 the basic three-tier administrative division of the country was introduced. Another level of self-government was established: the poviat. Gmina, poviat and self-government voivodeship started to form the basic units of the threetier administrative division of the country. The administrative reform established 16 new voivodeships. The reform aimed at creating larger regions, which would be able to compete with other regions after the accession to the European Union and that would correspond to the statistical nomenclature of the EU (NUTS). The voivodeships existing so far were too small to efficiently use the financial resources and mange the territory of the voivodeship. As a result of these changes the role of the Voivodes was decreased in favour of the Marshall of the Voivodeship and the voivodeship self-government. Some facilities that until now were under the management of the Voivode were moved to the management of individual self-government levels. After their transfer, gradually, often with great delay, tools of their financing were also moved, which came in the form of a share in the income tax, share in the corporate income tax, subsidies and grants. The introduction of the new division into voivodeships was accompanied by numerous discussions. Some projects assumed establishment of a smaller number of voivodeships (12 new voivodeships were most often discussed). Slightly less support was awarded to the projects concerning the establishment of 25 voivodeships or projects stating that the division into 49 voivodeships should be kept. Numerous social protests resulted in establishing the greater number of units. The administrative reform in the regions was modelled on the French pattern. Therefore, 23

24 the division into State and self-government authority is a significant element of the new voivodeship structure. The Voivodes represent the national interests in the Voivodeship. Voivode is to implement the State policy in the field, and the tasks of this office cover, inter alia, responsibilities within the scope of safety status and defence powers in the voivodeship, especially public order in crisis situations. In order to implement the above-mentioned tasks the Voivode is the head of the socalled combined administration. The Voivode also represents the State Treasury. The Act on the voivodeship self-government provides for reduction of the tasks of the voivodeship self-government within the scope of the so-called rendering administration 3 and it emphasizes the tasks of other type: enhancing economic activity, improving competitiveness and innovation of the economy, establishment of conditions for economic development, including the shaping of the labour market. 4 Moreover, the obligations of the voivodeship self-government include also preparation of comprehensive and sustainable development strategy for a given voivodeship, as well as conducting regional policies. The new territorial division of the country introduced on 1 January 1999 constituted one of the fundamental elements of the reform of the public administration, which enabled the implementation of reform objectives pertaining to the increase of efficiency and effectiveness of operations of the public administration offices, performance of public services and State finance management. The evaluation of this division carried out by the Council of Ministers on 12 December 2000, the Sejm of the Republic of Poland on 11 May and the Senate of the Republic of Poland on 11 January , recognised it as correct and fulfilling the provisions of the reform of the public administration. It was stated that there are no reasons to make holistic changes in the territorial division of the country. A relatively slight number of requests submitted in relation to changes in the territorial division of the country on the voivodeship and poviat level provided for a substantial social acceptance of the new territorial division. Today the experts point to the merits of granting the poviat status to the cities numbering more than 50 thousand people. The criteria on awarding the poviat status to cities are set out in Article 91 of the Act of 5 June 1998 on poviat self-government 7. 3 Tasks concerning administration rendering services for the local population that were left in the competency of voivodeships pertain only to competences related to running higher education establishments, specialist health service and certain cultural institutions. Source: T. Grosse, "Regional Policies of the European Union (Polityka regionalna Unii Europejskiej), Warsaw 2004, p Ibidem. 5 Resolution of the Sejm of the Republic of Poland of 11 May 2001 on performance evaluation of the basic territorial division of the country. M.P No. 16 item Resolution of the Senate of the Republic of Poland of 11 January 2001 on evaluation of the new basic territorial division of the country. M.P No. 2 item 24 7 Poviat status was awarded to cities, which on 31 December 1998 numbered more than 100,000 inhabitants; cities which on that day stopped to be the seat of voivodeships, unless the City Council 24

25 However, the above-mentioned provision was of one-off character and it was only applicable at the time of implementing the administrative reform, hence it does not cover the new cities with more than 50 thousand inhabitants. It should be stressed that the greatest number of notified problems concerns the operation of the territorial division at the poviat level. Experts also point to some other shortcomings of the reform of the administrative division of the country. According to Tomasz Grosse the greatest shortcoming of the administrative reform of 1998 was the insufficient supply of financial resources to the new voivodeships. 8 Indeed, the legal system was decentralized, but the financial system was not. Under the current legal system the voivodeship self-governments do not have any tax authority, and therefore they cannot conduct their individual tax policy in relation to economic entities and natural persons. (...) Hence voivodeship self-governments have legal personality, political mandate of their voters and competences within the scope of regional policy. Despite this, according to the experts, they do not have the possibility of action as they do not have relevant financial income at their disposal. 9 " Influence on the cities The State and self-government model of governance adopted in Poland in 1999 significantly strengthened some part of cities important from the perspective of furthering development processes at the voivodeship and national, as well as supraregional levels. This followed from the decision on placing State and self-government authorities in 18 municipal centres, which contributed to concentration of many social and economic functions in this centres. The current 18 voivodeship cities were granted the status of cities with poviat status, and as a result they became the seats of gmina, poviat and voivodeship self-governments, as well as State administration in a voivodeship (considering also pairs of capital cities of voivodeships: Zielona Góra and Gorzów Wielkopolski, Bydgoszcz and Toruń). On the other hand, administrative reform of 1999 lowered the status of 31 cities: from the voivodeship status to the role of the sub-regional centres. Only in the new Mazowieckie Voivodeship there are now 5 cities, which lost the status of the voivodeship city (Ciechanów, Ostrołęka, Płock, Radom, Siedlce). At the same time, the reform restored the poviat level, which did not exist in the period. Today, there are 314 poviats (so-called land) and 65 cities with poviat status (socalled urban) in Poland. The number of cities in increased from 830 to 887, requested otherwise, and cities that were awarded the poviat status following the first administrative division of the country. Article 91 of the Act of 5 June 1998 on poviat self-government (Dz. U. of 2001, No. 142, item 1592, as amended). 8 T. Grosse, op. cit., p Ibidem. 25

26 this primarily followed from regaining the city status or as a result of separation from larger centres. At the beginning of 2009 the number of cities amounted to 897. Reform of the education system In the 1999/2000 academic year the reform of the education system was introduced, which together with the new territorial division of the country resulted in decentralization within the scope of education management. At present, almost all public schools and education establishment are run by territorial self-government units: gminas, poviats and voivodeships. The gmina has a specific task of establishing and running public kindergartens (including special kindergartens), primary and lower-secondary schools (excluding special primary and lowersecondary schools). The poviat has to establish and run special primary and lowersecondary schools, upper-secondary schools (general and specialised secondary schools, basic vocational schools and technical schools) and other care and education establishments. The inherent task of the voivodeship self-government covers establishment and running schools and education establishments of regional significance. The most recent amendments within the scope of decentralisation of public administration cover: 1. Act of 23 January 2009 amending certain acts due to changes in the organisation and division of tasks of State administration in a voivodeship - the amendment covers provisions, on the basis of which the voivodeship selfgovernment in line with the subsidiarity principle shall take over some part of the competences and tasks performed by the Voivodes. The government shall also move some of its competences to the poviat and gmina self-governments. Regulation and organising competences will go to the voivodeship selfgovernment, while voivodes shall be competent for supervisory and control entitlements; 2. Act of 23 January 2009 on Voivodes and government administration in a voivodeship - the regulation covers provisions, which will contribute, inter alia, to strengthening the control functions of the voivodes in respect to the combined administration (services, inspection and protection) and noncombined administration operating in a voivodeship, as well as increasing the responsibility of the Voivode as regards crisis management and safety, as well as public order and focusing the function of the Voivodes on representing the Council of Ministers; 3. Draft Act on urban policies and cooperation between territorial selfgovernment units within the scope and amending other acts (so called act on metropolitan areas. The planned regulation determines the objectives and manner of conducting urban policy for the purposes of establishing favourable conditions for development of cities and their surrounding areas (metropolitan areas), forming regional development centres, exercising control over urbanization processes in line with the principles of sustainable development. The improvement of the management process in cities and 26

27 within the area of urban agglomerations is also vital; this aim can be achieved through coordination and consolidation of the management of large cities and the area forming its surrounding. The idea behind the draft Act on metropolitan areas in Poland Need for the regulation The discussion on statutory regulation of the issue of metropolitan areas in Poland is carried out for many years now. Works within the scope resulted in a draft Act on urban policies and cooperation between territorial self-government units within the scope. The need for statutory regulation of the issue of metropolitan areas development follows, above all, from the lack of relevant planning tools at the sub-regional level. Metropolitan areas in Poland consist of a large number of administrative units, for which individual local self-governments are responsible, i.e. gminas. Gminas are both large cities cores of metropolitan areas, as well as small suburban gminas which form the area of impact of a large city. In general, officially the metropolitan area consists of many gminas; however, actually it is an integrated settlement organism in terms of functional aspects. Each gmina self-government implements its own tasks within the scope of spatial development planning at the local level. However, the planning is often done without cooperation or consultation with the self-governments of neighbouring gminas, which are also situated within the metropolitan areas. As a result, many local spatial development plans are created on a single metropolitan area, which are often non-consistent and correlated between each other. Lack of coordination and cooperation between gminas prevents efficient spatial planning for the whole metropolitan area. It is a very important problem as implementation of priority projects for the entire metropolitan area faces major difficulties. Solutions proposed in the Act The draft Act on metropolitan areas is intended to provide a solution for the problem of inefficient planning within metropolitan areas. The solutions included in the Act are to provide the local and regional self-governments with the tools enabling cooperation and coordination. As a result consistent strategies and plans will be elaborated for the metropolitan areas. Special emphasis was placed not only on cooperation between gmina selfgovernments, but also on cooperation between gmina self-governments and voivodeship self-governments. Self-governments on these two levels are the major stakeholders of the Act: gminas are components of metropolitan areas while for voivodeships these areas, given the concentration of the economic potential, constitute the poles of development. The draft Act developed in May 2009 proposes a number of solutions, among which the following should be given: Establishment of metropolitan areas 27

28 The Act is to define the concept of metropolitan areas. Two types of these are given: obligatory and optional". The former covers areas, which are established by the Council of Ministers by way of an ordinance. The Council of Ministers is obliged to create a metropolitan area if the number of its inhabitants amounts to at least 2 million and the population density exceeds 200 persons per 1 km 2 (Warsaw, Upper Silesia conurbation) or if at least three cities with poviat rights remain in a direct functional and spatial relationship with each other (Tricity). On the other hand, for areas covering the optional type the Council of Ministers has the right but it does not have the obligation to set up such an area. The area is established on the initiative of the Council of Ministers or on the request of the interested gminas on condition that the number of its inhabitants numbers to at least 500 thousand persons. Tasks of the metropolitan area bodies The core task of the Act is establishment of what, by who and how is to be done in order to improve development of metropolitan areas. The Act names the following tasks, which are to be implemented by the metropolitan areas: - programming the area development and spatial development strategy; - elaboration and adoption of metropolitan programmes or plans with the following areas: spatial order, cultural heritage, environmental protection, municipal services, collective transport and labour market; - stimulating and developing the cooperation between territorial selfgovernment units; - promotion of the metropolitan area; - obtaining resources for tasks implementation. Metropolitan area bodies In order to implement the above-mentioned tasks the legislators proposed the establishment of the following bodies: - Assembly it has the legislative and control competences, it passes the budget, it consists of representatives of local and poviat self-government units one representative from each unit covered by the complex of cities. In Poland there are three levels of the territorial self-government: regional (voivodeship NUTS 2), above local (poviat NUTS 4) and local (gmina- NUTS 5). Large cities in Poland have the status of both gminas and poviats, hence they have the rights and obligations following from both these levels. - Board it has executive competences, it consists of: Presidents of the Cities with poviat status, poviat representatives and Marshal of the Voivodeship, on which areas the metropolitan area is situated, or a representative thereof. The metropolitan area is not a territorial self-government unit. 28

29 Moreover, the draft Act provides for a form of cooperation between gminas which form an area, which does not met the criteria to be recognised as a metropolitan area. Such a relationship was defined as an urban complex, which has the obligation to develop and pass a framework study on conditions and directions of the spatial development of the area. Its bodies and their competences are parallel to these applicable to metropolitan areas. Urban complexes are established without the participation of the Council of Ministers. Controversial issues Taking account of the large number of stakeholders at various levels of administrative development the draft Act still raises many controversies. The local and regional self-governments are most interested in the decision which urbanised areas will be granted the status of metropolitan areas. In this respect the major issue are the criteria, and as a result much discussion focuses around them. In line with the draft Act three areas can be sure of being awarded the status of metropolitan areas: Warsaw, Upper Silesia conurbation and Tricity. There are also doubts as regards the compliance of the regulation with the system acts, including the Constitution of the Republic of Poland. The Act on metropolitan areas to a large extent intrudes on the scope of rights and obligations of the regional and local self-governments. Moreover, the Act introduces new categories of programming documents, but it fails to clearly determine their relationship with national and regional strategic documents. In general, it is both difficult and necessary to regulate such an issue as development of metropolitan areas. It is difficult because it requires multi-level mutual cooperation. It is necessary to reach a consensus on the metropolitan area between gminas, poviats and voivodeships, i.e. all self-government levels. Additionally, the self-governments have to consider the national strategies in their works. On the other hand, metropolitan areas have a vital significance as regards regional development. Therefore it is absolutely necessary to efficiently manage such areas, and at the same time, it is worth every effort. The most recent significant amendments in the law Act on the amendment of certain acts due to the implementation of structural funds and Cohesion Fund was developed. The essence of the changes specified in the Act is to ensure efficient use of resources from the European Union budget and the effectiveness of their spending. At the same time, institutional ordering of programming and clear separation of operational programmes from development programmes will have an impact on the transparency in the hierarchy of documents, and thereby, it will make the system more understandable and more efficient. The Act was adopted on 7 November The Act amended, inter alia, the following regulations: the Act of 6 December 2006 on the principles of the development policy making, the Act of 30 June 2005 on public finance, the Act of 5 June 1998 on voivodeship selfgovernment. The new solutions are to ensure proper preparation of the national and regional strategic documents. The obligation concerning the compliance of the 29

30 development strategy with the medium-term national development strategy was extended to cover also the development programmes. Such a solution should to a greater extent ensure cohesion between the prepared documents and the national development objectives. A new development policy instrument was also introduced, i.e. long-term national development strategy. Currently the document is being developed under the guidance of the Chancellery of the Prime Minister. As for the financial scope, the Act refers to the desired multi-annual financing system for the development policy as the necessary element of the efficiency of the undertaken actions. In order to ensure efficient coordination of programming and implementation of the development policy a Coordinating Committee for Development Policy (CC) was established, as an opinion-forming and advisory body to the Prime Minister. The CC was appointed by way of order No. 21 of the Prime Minister of 11 March An amendment of the Act on public finance was prepared. The new Act on public finance, primarily, aims at strengthening public finance and improving their transparency, this objective will be implemented, especially, through reorganisation of the public finance sector, consideration of the multi-annual financial planning in the State budget sector and the budgets of territorial self-government units, strengthening of preventive standards in case of increased deficit, enhancing control of public expenditure by introduction of management control and strengthening the effectiveness of internal audit services in the units from the public finance sector, extension of the solutions within the scope of Activity Based Budgeting, including a three-year Activity Based Budgeting plan. The proposed solutions are to ensure cohesion between development activities programming and budget expenditure planning, and thereby, increase the efficiency of public resources use. The draft amendment to the Act on public finance was adopted by the Council of Ministers on 17 October The Act was finally adopted on 27 August Financial framework of cities development This part of the report provides an answer to questions from 35 to 37 from the I part of the questionnaire and questions 10 (second indent), 12, 13, 70, 71, 72 from the second part of the questionnaire. Detailed data for all individually named cities concerning the revenue of the gmina budgets, gmina own revenue, debts of gminas and expenditure of gmina budgets by sectors are included in the spreadsheets submitted to the OECD (answers to the questions from 35 to 37 from the I part of the questionnaire submitted in file IV). These spreadsheets also cover data on the Total Gross Domestic Product in PLN million (current prices) per subregions Fiscal framework The system regulating public finance, also within the area of cities development, is related to the general system of public finance governed by the act on public finance, as well as the act of 13 November 2003 on income of territorial self-government units (Dz.U. of 2008 No. 88, item 539, as amended), which determined the sources of income of the territorial self-government units and the rules of establishing and 30

31 transferring general subsidies and appropriated allocations from the State budget. Cities as gminas and poviats have at their disposal a budget following from these provisions. The act of 2003 on income of territorial self-government units significantly decreased the level of appropriated allocations, but it increased the share in the revenue from personal income tax (PIT) and corporate income tax (CIT). The Polish law classifies the tax revenue as the so-called own sources of income. The act on public finance of 2009 changed the debt limits for self-government units. The limits, which will be applicable as of 2014, are defined in economic categories. Annual repayments + interests in relation to the general revenue should not exceed the average relationship of the operating surplus + revenue from sale of selfgovernment resources to the general revenue within the last three years. As for now these limits are solely legal in their character: the total amount of debt not higher than 60% of the planned revenue and the annual repayment + interests not higher than 15% of the planned revenue. The weak point of the new formula is the fact that it was based on historical data. Own revenue and the obtained subsidies and allocations constitute the basic sources of financing the activity of territorial self-government units. The Constitution of the Republic of Poland stipulates in its Article 167(2) that the income of territorial self-government units consists in: own revenue; general subsidies; appropriated allocations from the State budget. Allocations, subject to specific accounting rules, cover State budget expenditure, expenditure of the budgets of territorial self-government units and other entities from the public finance sector, which are designated to specific tasks implemented by the territorial self-government units. Appropriated allocations are characterized by the fact that they have to be used in line with their intended destination. It should also be highlighted that own revenue of the territorial self-government units cover also the shares in the revenue from personal income tax and corporate income tax. The following can also constitute income: 1. non-recoverable foreign resources; 2. resources from the European Union budget; 3. other resources defined in separate rules of law. In order to make the above description more detailed the sources of income of individual territorial self-government units should be presented. 31

32 Hence the sources of income in gminas cover (Article 4, 7, 8 of the act of 13 November 2003 on income of territorial self-government units): 1. tax revenue, including: 9. real estate tax; 10. agricultural tax; 11. forestry tax; 12. tax on means of transport; 13. personal income tax, paid in the form of lump sum taxation; 14. inheritance and donation tax; 15. tax on civil law transactions; 2. revenue from fees and charges: 16. stamp duty; 17. market place fee; 18. tourist and health resort duty and dog tax; 19. service fee partly set out in the act of 4 February 1994 Geological and mining law (Dz. U. No. 27, item 96, as amended 2) ); 20. other charges constituting gmina revenue, paid on the basis of separate rules of law. Moreover, in relation to the fact that gminas have defined organisational units that perform tasks also within this scope, the revenue will also cover the income obtained by the gmina budgetary entities and payments from gmina budgetary enterprises and gmina auxiliary enterprises of the gmina budgetary entities. Another group of revenue covers income related to the civil area. They may include the income generated by the gmina property; inheritances, bequests and donations for the gmina, interests on loans granted by the gmina, unless otherwise specified in separate rules of law; interests on late payments of receivables that constitute gmina revenue, interests on financial resources collected on the gmina bank account, unless otherwise specified in separate rules of law. It is also possible to separate an area of other public and legal revenue, such as income on penalties and fines defined in separate rules of law; 5.0% of income generated for the State budget in relation to the implementation of tasks concerning government administration and other tasks assigned in legal acts unless otherwise specified in separate rules of law; allocations from the budget of other territorial selfgovernment units; other income due to gmina on the basis of separate rules of law. The level of share in the revenue on personal income tax, from the taxpayers of this tax living within the area of the gmina amounted to 39.34%. The level of share in the revenue on corporate income tax, from the taxpayers of this tax that have a seat within the area of the gmina amounted to 6.71%. 32

33 The sources of income on the second level of territorial self-government (poviat) cover: 1. revenue from charges constituting poviat income, paid on the basis of separate rules of law; 2. revenue obtained by the poviat budgetary entities and payments from poviat budgetary enterprises and auxiliary enterprises of the poviat budgetary entities; 3. revenue from poviat property; 4. inheritances, bequests and donations for the poviat; 5. revenue on penalties and fines defined in separate rules of law; % of revenue generated for the State budget in relation to the implementation of tasks concerning government administration and other tasks assigned in legal acts unless otherwise specified in separate rules of law; 7. interests on loans granted by the poviat, unless otherwise specified in separate rules of law; 8. interests on late payments of receivables that constitute poviat revenue; 9. interests on financial resources collected on the poviat bank account, unless otherwise specified in separate rules of law; 10. allocations from the budgets of other territorial self-government units; 11. other revenue due to poviat on the basis of separate rules of law. The poviat revenue also covers the appropriated allocations from the State budget, which are designated to the implementation of the security and inspection tasks referred to in the act of 5 June 1998 on poviat self-government (Dz. U. of 2001, No. 142, item 1592, as amended).. The level of share in the revenue on personal income tax, from the taxpayers of this tax living within the area of the poviat amounted to 10.25%. On the other hand, the level of share in the revenue on corporate income tax, from the taxpayers of this tax that have a seat within the area of the poviat amounted to 1.40%. The revenue of voivodeship self-government cover: 1. revenue generated by the voivodeship budgetary entities and payments from the voivodeship budgetary enterprises and auxiliary enterprises of the voivodeship budgetary entities; 2. revenue from voivodeship property; 3. inheritances, bequests and donations for the voivodeship; 4. revenue on penalties and fines defined in separate rules of law; 33

34 5. 5.0% of revenue generated for the State budget in relation to the implementation of tasks concerning government administration and other tasks assigned in legal acts unless otherwise specified in separate rules of law; 6. interests on loans granted by the voivodeship, unless otherwise specified in separate rules of law; 7. interests on late payments of receivables that constitute voivodeship revenue; 8. interests on financial resources collected on the voivodeship bank account, unless otherwise specified in separate rules of law; 9. allocations from the budgets of other territorial self-government units; 10. other revenue due to the voivodeships on the basis of separate rules of law. The level of share in the revenue on personal income tax, from the taxpayers of this tax living within the area of the voivodeship amounted to 1.60%. The level of share of the voivodeship self-government in the revenue on corporate income tax, from the taxpayers of this tax that have a seat within the area of the voivodeship amounted to 14.0%. It should be emphasised that the revenue of the territorial self-government units can also cover appropriated allocations from the State budget allocated to: 1. tasks within the scope of government administration and other tasks assigned in legal acts; 2. tasks implemented by the territorial self-government units under agreements concluded with the government administration bodies; 3. elimination of direct threats to public safety and order, effects of floods and landslides, as well as effects of other natural disasters; 4. financing or co-financing of inherent tasks; 5. implementation of tasks following from international agreements. A equalisation system for reducing fiscal differences between territorial selfgovernment units (subsidies, allocations) Question 13 from the II part of the questionnaire. Some remarks should also be made in relation to the issue of general subsidies, which are awarded at all levels of territorial self-government. The equalisation system of the territorial self-government units (separate for gminas, poviats and voivodeships) is integrated into the general subsidy mechanism. The general subsidy consists of the following parts: 1. for gminas: equalisation part; balancing part; 2. for poviats: 34

35 equalisation part; balancing part; 3. for voivodeships: equalisation part; regional part; 4. educational part for gminas, poviats and voivodeships. One of the basic rules forming the basis for the financial system of the territorial selfgovernment units is the objectification of the support provided to the budgets of these units in the form of the general subsidies from the State budget. This especially refers to the establishment of precisely formulated (statutory) rules of determining the amount of the general subsidy for individual territorial self-government units. In short, the Polish equalisation system does not aim at reducing differences between the urban and rural areas. Its direct objective is elimination of differences regardless of the status of the self-government units. The subsidies system contains a vertical component: so called equalisation part of the general subsidy, which is based on the level of income. The second component, which is subject to horizontal equalisation (so-called balancing part of the general subsidy or regional part in case of voivodeships) is partly based on the income, and partly on costs. In case of the balancing and regional parts of the general subsidy the fundamental significance belongs to the cost components related to the implementation of certain tasks of units at a given level. Rural gminas and urbanrural gminas are isolated under this system to a certain limited degree. Basically, the balancing part of the general subsidy can be recognised as a corrective mechanism, which objectives exceed, by far, the sole equalising function. It is based on payments of self-governments that have higher tax revenue than the legally established ceilings. Resources are distributed according to the formula, which, inter alia, provides for allocations to all cities with poviat status in line with the length of national and regional roads that are managed by them, and regardless of other budgetary conditions. This allocation amounts to 25% of the balancing part of the general subsidy awarded to the poviat (It is a corrective mechanism following from lack of other financing sources for repairs and construction of national and voivodeship roads within the area of the cities). At this point it would be worthwhile to mention that the educational part of the general subsidy is clearly similar to an equalising tool in respect to urban and rural areas. In general, the educational part is calculated on the basis of the number of students of different categories. Each category has its weight, which is not based on empirical costs, though. As for financial aspects, the most important category constitutes the so-called rural weight (students from schools situated in rural areas in cities with less than 5,000 inhabitants). The weight referring to rural areas is applied on the basis of the legal status of a given institution, and not the real, even calculated, costs. Because the educational part of the general subsidy constitutes over 35

36 20% of the total income of self-government units these arrangements have certain - although uncritical - equalising features. Also in the case of some cases of allocations for financing own tasks, the level of cofinancing is differentiated depending on the income potential and socio-economic situation of a gmina (e.g. Orlik 2012 Programme) 10. This fails to have any substantial meaning for calculating the financial system of the territorial self-government units and the equalisation mechanisms integrated into the system. In general, the act on the income of territorial self-government units failed to form a basis for the establishment of any special mechanism (apart from the balancing part of the general subsidy for gminas) that would be able to equalize the differences in the tax revenue between individual territorial self-government units by making them dependant on the urbanization level, structure of the economy and the basic source of income of the population living within a given territory, etc, Because cities with poviat status and urban gminas belong to the group of units with relatively higher potential of income, the equalising functions are to a certain degree implemented by the mechanism provided by the equalisation part for gminas (gminas, cities with poviat status) and the mechanism provided by the equalisation part for poviats (poviats, cities with poviat status). The decision-making body of a given territorial self-government unit decides on the distribution of the resources obtained from the general subsidy. All parts of the general subsidy are transferred from the State budget to the territorial selfgovernment units in monthly instalments. Figures 1 and 2 present the major sources of cash inflow. Moreover, the income of the territorial self-government units can be also formed by the resources coming from appropriated funds, which are obtained on the basis of separate rules of law. 10 The programme My football field Orlik 2012 presented by Donald Tusk, the Prime Minister in the Cabinet of the Republic of Poland during his speech on 23 November 2007 and prepared by Mirosław Drzewiecki, Minister of Sport and Tourism assumes the construction of football field complexes open for general public free of charge complete with locker rooms and supplementary facilities in every gmina of the country. The aim of the programme is to ensure that children and youth have access to modern sports infrastructure, which would allow them to actively play sports 36

37 Figure 1 Major flows of public resources coming to the territorial self-government units State budget Share in the State budget revenue including: Share in PIT (in %) Share in CIT ( %) Appropriated allocations including: on tasks within the scope of government administration on inherent tasks Subsidies Territorial selfgovernment units payments Territorial self-government units Figure 2 Manner of transferring State budget resources in the form of allocations and subsidies State budget Minister of Finance Voivodeship Poviat Voivode Gmina subsidies allocations 37

38 Fiscal autonomy Gminas cannot set charges and taxes they are established by way of legal acts by the parliament. As for the taxes collected by the gminas (local taxes) the Gmina Councils can decide on the rates of local taxes, but these cannot be higher than the maximum tax rates provided for in the national legislation. The President of the city (or mayor in smaller cities) can decide on tax exemptions and deductions in individual cases. Poviats and voivodeships have not got their own taxes and their actual own revenue constitutes a marginal part of the total revenue that is based, mainly, on transfers from the State budget. Charges fail to constitute a significant part of revenue either for gminas or poviats or voivodeships. The dispute between the self-government circles and the government is focused around the share of the territorial self-government units in the revenue from PIT and CIT (personal income tax, corporate income tax), which according to a certain part of the self-government circles do not constitute the own revenue of the self-government since the self-government cannot make any tax decisions within the scope of these taxes. As a result these circles divide the own revenue of gminas, poviats and voivodeships into actual own revenue and income from the share of the territorial self-government units in the revenue from PIT and CIT. In case of gminas (including cities) the revenue from PIT and real estate tax (local tax) has a significant share in their revenue and sometimes for example in case of the largest cities also the revenue from CIT. In case of poviats the revue from PIT is important and for voivodeships revenue from CIT. Gminas, poviats and voivodeships are financially independent and there are no financial dependencies between them. However, this rule was breached in the case of support resources from the European Union budget that are managed by the voivodeship self-government. The voivodeship self-government decides on the disbursement of support resources, inter alia, within the framework of the regional operational programmes, including co-financing of urban investments. In this case political factors may be of some significance. The obligation to pay a part of the surplus that exceeds the average tax revenue to the State budget (a form of taxation for rich self-governments) has a considerable significance for large cities. In 2009 and 2010 this problem has special significance as the surplus is calculated on the basis of revenue implementation from before 2 years; hence the revenue from 2007 and 2008 which were exceptionally successful for the gminas. The problem is that today cities feel the effects of the crisis and, therefore, the need to pay the surplus calculated for is especially severe. Moreover, it is also prominent for the cities that the revenue from PIT is divided in line with the place of residence of the taxpayers established according to the declarations for the year preceding the given financial year. Many taxpayers, who move to or temporarily stay (e.g. as students) in large agglomerations, have official registration in the previous place of residence and it is exactly there that the gmina and poviat part of their PIT goes. Furthermore, people living in the surrounding areas of large cities are employed in these cities but they pay PIT in their places of 38

39 residence. Authorities in large cities complain on the efficiency of such a system because they have to incur the costs of municipal servicing of a much greater number of people than it would follow from the division of tax revenue Fiscal regulations between different levels of government Questions from 70 to 72 from the II part of the questionnaire. It should be stated that the territorial self-government units financing system is stable it is primarily defined by the provisions of the act on the income of territorial selfgovernment units. The current system, with certain modifications, operates since 1 January Therefore, the territorial self-government units operate in a relatively durable legal and institutional environment if it comes to their financing sources. The Polish territorial self-government units financing system focuses on providing to the self-government units, such as gminas, poviats and voivodeships, a supplement of their own revenue (local taxes, charges and the share in the PIT and CIT revenue, etc.). The supplementary function is primarily fulfilled by the general subsidy. According to the act on the income of territorial self-government units the decisionmaking body of the territorial self-government unit (Gmina Council, Poviat Council, Sejmik of the Voivodeship) decide on the manner of using the resources awarded under the general subsidy. Therefore, these resources are not assigned to the implementation of a specific task, i.e. their allocation is not related to an obligation to finance specific expenditure. The State supports the implementation of specific objectives (within the scope of its inherent tasks) and it enables the implementation of tasks delegated within the scope of government administration by means of the appropriated allocations, which are awarded for the implementation of specific tasks. Development policy in case of territorial self-government units is implemented mainly by institutions operating in line with voivodeship contracts. In case of the Polish territorial self-government units financing system the issue of enhancing cooperation between different actors was not the central assumption around which the system was constructed. However, by ensuring to all territorial self-government units, gminas, poviats and voivodeships the share in two State taxes PIT and CIT, there exists an incentive for cooperation between the individual territorial self-government units in order to support socio-economic development within their areas. When a new employer or investor appears within the area of a gmina, from the perspective of generating additional budgetary income, apart from the gmina, the poviat and voivodeship also benefit from the event. Moreover, the act on the income of territorial self-government units provides that the self-government organisations forming the self-governmental part of the Joint Central and Self-Government Committee (the Committee is an institution established by way of a legal act which acts for the cooperation between the government and territorial self-government) is entitled to a share in the division of a certain envelope of resources awarded under the general subsidy. The representatives of territorial self-government units at all levels jointly decide on the directions of the resources distribution. 39

40 In Poland individual types of administration are usually independent from one another and if there are areas of possible cooperation it often happens that competitive rather than cooperative behaviours can be observed. For example, many gminas have problems with agreeing with the poviat-level on the directions of development, e.g. regarding road development. Therefore, it would be worthwhile to highlight at least three forms of cooperation undertaken by administrations at different levels of authority: (a) MRD and voivodeships at the stage of setting rules of allocating European Union resources and State budget resources for regional development; (b) voivodeship and gminas and poviats in relation to the allocation of resources, which are managed by the voivodeship self-government as the Managing Authority; (c) voivodeship and large cities (sometimes also government administration) in relation to activities undertaken in order to prompt potential investors to make a decision which will be favourable for the region/city. Experts (Gdansk Institute for Market Economics) point to the fact that the financial transfers constitute an entanglement of different and independent mechanisms from various fields, which are not coordinated between each other and do not aim at implementing policy that follows from national strategic documents. The transfer of resources from the State budget to the territorial self-government units is not related to the requirement providing for the achievement of expected effects, and settlement of the allocations consists in accounting of the spent resources. As a result we have to deal with non-coordinated financial transfers in both directions the same units receive subsidies and allocations at the same time from the State budget and they make obligatory payments to the State budget as a result of obtaining excessive own revenue. According to these experts, also the fiscal relationships between the State budget and budgets of the territorial self-government units (there are no significant fiscal relationships between different types of territorial self-government units) are unreliable because: a) the amounts of the transfers flowing from the State budget fail to oblige the government to fully finance certain defined tasks e.g. the fact of transferring a part of the educational part of the general subsidy does not imply that this amount should cover defined costs of carrying out education; as a result it is difficult to show the economic sense following from the amounts of individual transfers; b) territorial self-government units have certain tasks imposed on them, but they are deprived of the possibility of creating their own income for financing these tasks, which leads to a situation when the self-governments are dependent on the fiscal policy of the State. Therefore a problem occurs: whether the income awarded to a given city is sufficient to finance the tasks imposed on the city or should the city demand higher income? Since in many fields there are no precisely set standards in relation to the implementation of public tasks, it is extremely difficult for gminas to prove that they were awarded to low amount of resources for a given set of tasks, hence they should be awarded higher 40

41 resources or they should restrict the catalogue of tasks. It would be possible to justify such a demand only if the gmina have had the possibility to refer to the known standards and, as long as there are no such standards, all financial demands are dismissed by administrative courts. It places gminas, poviats and voivodeships on an unequal position in respect to the central authority Cities budgets territorial self-government units Questions from 35 to 37 from the I part of the questionnaire and question 12 from the II part thereof. Data for all individually named cities for are included in the spreadsheets submitted to the OECD. Revenue of the territorial self-government units In reference to the issue of resources allocation for individual levels of public administration, as well as the indicator and share in debt of territorial selfgovernment units the following comparison was provided: Table 3 Revenue implemented by territorial self-government units in Specification Implementation in 2007 Implementation in 2008 Growth rate (3:2) PLN thousand %% GMINAS 57,003,129 62,317, POVIATS 16,154,756 18,147, CITIES WITH POVIAT STATUS 46,873,425 49,443, VOIVODESHIPS 11,348,892 12,660, TOTAL FOR TERRITORIAL SELF- GOVERNMENT UNITS 131,380, ,568, Source: Annual reports on the implementation of budgets of territorial self-government units for 2007 and 2008 (Ministry of Finance) Table 4 Gminas revenue in Specification Implementation in 2007 Implementation in 2008 Growth rate (3:2) PLN thousand %% TOTAL GMINA REVENUE, including: 57,003,129 62,317,

42 Specification Implementation in 2007 Implementation in 2008 Growth rate (3:2) PLN thousand %% OWN including: REVENUE, 28,219,039 30,694, corporate income tax 657, , personal income tax 9,264,684 10,664, agricultural tax 915,443 1,203, real estate tax 7,595,557 8,017, forestry tax 155, , tax on means of transport 488, , personal income tax, paid in the form of lump sum taxation 53,592 50, inheritance and donation tax 112, , tax on civil law transactions 911, , revenue from stamp duty 285, , revenue from service fee 214, , revenue from market place fee 144, , revenue from property 2,730,650 2,769, other revenue 4,688,818 4,907, APPROPRIATED ALLOCATIONS 10,918,518 11,709, GENERAL SUBSIDY 17,865,572 19,913, Source: Annual reports on the implementation of gmina budgets for 2007 and 2008 (Ministry of Finance) 42

43 Diagram 1 Structure of GMINAS revenue according to the reports on the implementation of gmina budgets for ,9 49,3 18,8 Own revenue Appropriated allocations General subsidy Diagram 2 Structure of TERRITORIAL SELF-GOVERNMENT UNITS revenue according to the reports on the implementation of territorial self-government units budgets for

44 Table 5 Poviats revenue in by their sources of origin. Specification Implementation in 2007 Implementatio n in 2008 Growth rate (3:2) PLN thousand %% Total poviat revenue, including: 1. OWN REVENUE, including: 11. share in the revenue on personal income tax 12. share in the revenue on corporate income tax 16,154,756, 18,147, ,206,360, 5,872, ,622,058, 2,995, ,379, 144, revenue from poviat property 270,050, 296, other revenue 2,176,872, 2,434, Appropriated allocations 3,503,138, 4,201, General subsidy 7,445,258, 8,073, Source: Annual reports on the implementation of poviat budgets for 2007 and 2008 (Ministry of Finance) Table 6 Revenue of cities with poviat status in by their sources of origin Specification Implementation in 2007 Implementation in 2008 Growth rate (3:2) PLN thousand %% Total revenue of cities with poviat status, including: 1. Own revenue, including: share in the revenue on corporate income tax 46,873,426 49,443, ,959,883 34,368, ,770,269 1,924, share in the revenue on personal income 12,861,782 13,930,

45 tax agricultural tax 16,074 24, real estate tax 5,106,860 5,429, forestry tax 1,428 1, tax on means of transport 324, , personal income tax, paid in the form of lump sum taxation 54,545 49, inheritance and donation tax 200, , tax on civil law transactions 1,696,911 1,371, stamp duty 314, , service fee 7,223 6, market place fee 80,073 76, revenue from property 3,295,278 2,987, other revenue 7,229,476 7,706, Total appropriated allocations 4,586,592 4,873, General subsidy 9,326,951 10,201, Source: Annual reports on the implementation of budgets of cities with poviat status for 2007 and 2008 (Ministry of Finance) Table 7 Voivodeships revenue in by their sources of origin Specification Implementation in 2007 Implementation in 2008 Growth rate (3:2) PLN thousand %% TOTAL VOIOVODESHIP REVENUE, including: 11,348,892 12,660, Own revenue, including: 7,749,197 7,409, share in the revenue on corporate income tax 5,050,768 4,708, share in the revenue on personal income tax 851, , revenue from property 97,699 95,

46 Specification Implementation in 2007 Implementation in 2008 Growth rate (3:2) PLN thousand %% other revenue 1,748,831 1,661, Appropriated allocations 1,483,626 2,980, General subsidy 2,116,070 2,270, Source: Annual reports on the implementation of voivodeship budgets for 2007 and 2008 (Ministry of Finance) The basic data source on implementing the budgets of cities with poviat status were the reports for 2007 and 2008 concerning the implementation of revenue and expenditure plans and liabilities and entitlements of the territorial self-government units drawn up in line with the rules defied in the ordinance of the Minister of Finance of 27 June 2006 on budget reporting (Dz.U. No. 115, item 781, as amended).. Liabilities of territorial self-government units In line with Article 170(1) of the act of 30 June 2005 on public finance (Dz.U. No. 249, item 2104, as amended) the total amount of debt of the territorial self-government units at the end of the financial year cannot exceed 60% of the implemented revenue of the unit in the given financial year. During the financial year the total amount of debt of the territorial self-government unit at the end of the quarter cannot exceed 60% of the revenue of this unit planned for the given financial year. The act on public finance entitled the territorial self-government units to make financial commitments in the form of credits, loans and issue of securities in line with the rules defined in this act. Table 8 Liabilities of territorial self-government units in Specification (3:2) PLN thousand %% TOTAL LIABILITIES OF TERRITORIAL SELF-GOVERNMENT UNITS, including: 25,876,097 28,774, GMINAS 9,958,558 10,821,

47 Specification (3:2) PLN thousand %% POVIATS 2,639,529 2,888, CITIES WITH POVIAT STATUS 11,258,690 12,775, VOIVODESHIPS 2,019,320 2,289, Source: Annual reports on the implementation of budgets of territorial self-government units for 2007 and 2008 (Ministry of Finance) Table 9 Debt ratio (relationship of liabilities to the total implemented revenue) of the territorial self-government units in Specification %% Total debt ratio of the territorial selfgovernment units GMINAS POVIATS CITIES WITH POVIAT STATUS VOIVODESHIPS Source: Annual reports on the implementation of budgets of territorial self-government units for 2007 and 2008 (Ministry of Finance) The act on public finance provides for two limitations concerning the admissible amount of debt for territorial self-government unit. According to Article 169(1) of the act of 30 June 2005 on public finance the total amount falling in the given financial year to repayment of credit and loan instalments together with interests on credits and loans due in a given year, redemption of securities issued by territorial self-government units together with the due interests and discount, potential repayment of amounts granted by the territorial self-government units as warranties and guarantees, cannot exceed 15% of the revenue of the territorial self-government unit planned for the given financial year. 47

48 However, on the basis of the provisions set out in Article 170(1) of the act on public finance the total amount of debt of the territorial self-government unit at the end of the financial year cannot exceed 60% of the total implemented revenue of this unit planned in the given financial year. Moreover, the legislator established in the Article 170(2) of this act that during the financial year the total amount of debt of the territorial self-government unit at the end of the quarter cannot exceed 60% of the revenue of this unit planned for the given financial year. Table 10 Level of debt of the territorial self-government units in relationship to the total revenue according to the reports on the implementation of territorial selfgovernment units budgets for 2008 Specification TOTAL Indebted Below 10% Number of units 10%- 20% 20%- 30% 30%- 40% 40%- 50% 50%- 60% Above 60% GMINAS 2,413 2, CITIES POVIAT STATUS WITH POVIATS VOIVODESHIPS TOTAL 2,808 2, The greatest group of territorial self-government units in respect to the level of debt in relationship to the total revenue are units showing below 20% of debt. 48

49 Diagram 3 Structure of liabilities of the territorial self-government units according to the reports on the implementation of territorial self-government units budgets for 2008 Expenditure of territorial self-government units In reference to the issue of expenditure of territorial self-government units incurred on individual levels the following comparison is provided: Table 11 Implementation of the expenditure of territorial self-government units in Specification (3:2) PLN thousand %% GMINAS Total expenditure 56,074,124 62,892, including: property expenditure 10,565,993 12,891, POVIATS Total expenditure 16,069,643 18,114,

50 Specification (3:2) PLN thousand %% including: property expenditure 2,107,146 2,621, CITIES WITH POVIAT STATUS Total expenditure 45,877,113 51,172, including: property expenditure 10,326,674 11,634, VOIVODESHIPS Total expenditure 11,092,206 13,002, including: property expenditure 4,066,662 4,774, TOTAL FOR TERRITORIAL SELF- GOVERNMENT UNITS Total expenditure 129,113, ,182, including: property expenditure 27,066,475 31,922, Source: Annual reports on the implementation of budgets of territorial self-government units for 2007 and 2008 (Ministry of Finance) Table 12 Gminas expenditure by the major directions of their distribution in Specification (3:2) PLN thousand %% Total including: expenditure, 56,074,124 62,892, Property expenditure, 10,565,993 12,891, including: investment expenditure 10,362,849 12,552, Current including expenditure, 45,508,130 50,000,

51 Specification (3:2) PLN thousand %% Expenditure on wages and salaries 17,107,934 19,020, including: personal wages and salaries 15,499,509 17,261, Derivative of wages and salaries 3,365,763 3,365, Allocations 2,871,940 3,339, Expenditure on debt servicing 360, , Expenditure on granting warranties and guaranties 7,581 11, Other expenditure 21,794,145 23,782, Source: Annual reports on the implementation of gmina budgets for 2007 and 2008 (Ministry of Finance) Table 13 Poviats expenditure by the major directions of their distribution in Specification (3:2) PLN thousand %% Total expenditure, including: 16,069,643 18,114, Property expenditure 2,107,146 2,621, including: investment expenditure 2,097,003 2,605, Current expenditure, including: 13,962,497 15,493, expenditure on wages and salaries 6,954,245 7,808, including: personal wages and salaries 6,331,729 7,128, derivative of wages and salaries 1,509,582 1,657, allocations 964,347 1,097,

52 Specification (3:2) PLN thousand %% expenditure on debt servicing 112, , expenditure on granting warranties and guaranties 22,500 41, other expenditure 4,399,448 4,735, Source: Annual reports on the implementation of poviat budgets for 2007 and 2008 (Ministry of Finance) Table 14 Expenditure of cities with poviat status by the major directions of their distribution in Specification (3:2) PLN thousand %% Total including: expenditure, 45,877,113 51,172, Property expenditure 10,326,674 11,634, including: investment expenditure 9,865,659 11,135, Current including: expenditure, 35,550,440 39,537, wages and salaries 12,272,427 13,806, including: personal wages and salaries 11,243,507 12,688, derivative of wages and salaries 2,333,686 2,392, allocations 4,053,623 4,652, expenditure on debt servicing 477, , expenditure on granting warranties and guaranties 32,602 12,

53 Specification (3:2) PLN thousand %% other expenditure 16,380,460 18,073, Source: Annual reports on the implementation of budgets of cities with poviat status for 2007 and 2008 (Ministry of Finance) Table 15 Voivodeships expenditure by the major directions of their distribution in Specification (3:2) PLN thousand %% Total including: expenditure, 11,092,206 13,002, Property expenditure 4,066,662 4,774, including: investment expenditure 3,931,989 4,525, Current including: expenditure, 7,025,543 8,228, wages and salaries 1,125,693 1,411, including: personal wages and salaries 1,035,190 1,308, derivative of wages and salaries 208, , allocations 3,120,552 3,388, expenditure on debt servicing 43,315 81, expenditure on granting warranties and guaranties 6,432 6, other expenditure 2,521,372 3,104, Source: Annual reports on the implementation of voivodeship budgets for 2007 and 2008 (Ministry of Finance) 53

54 3 Urban policy in Poland Urban policy is interdisciplinary in its nature and relates to many sectoral areas. Moreover, the activities of public authorities at all levels of administration central, regional and local influence city developemnt. There is no separate urban policy in Poland, but some of its aspects are reflected in strategic documents concerning socioeconomic and spatial development policy. The following chapter presents the scope and current competences of both the central and self-government authorities in the establishment and implementation of urban policy. This Chapter contains, mainly, answers to questions set out under point from the second part of the OECD questionnaire Legal conditions for development policy making Act of 6 December 2006 on the principles of the development policy making (consolidated text: Dz. U. 2009, No. 84, item 712). It is the basic legal act regulating the principles of the development policy making in Poland. It determines the entities conducting this policy, the mode of cooperation between these entities and the basic instruments which are applied to development policy making. The last amendment of this act of 2009 prepared by the MRD aimed at ordering the issues of development policy making in the country. The act defines development policy as the set of interconnected activities undertaken and implemented in order to ensure durable and sustainable development of the country; socio-economic, regional and spatial cohesion; improvement of competitiveness of economy and creation of new jobs on a national, regional or local scale. Development policy covers crucial thematic areas, both these falling within the scope of responsibilities of individual ministries, as well as inter-ministerial ones. Therefore, development policy consists of public policies referring to individual sectors and areas, regions and spaces. From the perspective of development policy implementation it is significant to ensure that all public policies are consistent with each other and their scopes are complementary to each other. According to the provisions of the act the development policy is carried out by the Council of Ministers, self-governments of voivodeships and self-governments of poviats and gminas. The minister competent for regional development is responsible for coordinating development policy implementation, which is co-financed from the State budget resources or development resources of the European Union. The act introduces the classification of development policy programming documents. These are divided into two types: development strategies and programmes. The concept of development strategy covers: Long-Term National Development Strategy a document setting out the major trends, challenges and scenarios of the country s development within the period of at least 15 years; Mid-Term National Development Strategy (as for now it is the National Development Strategy ) a document defining the basic conditions, objectives and directions of the country s development in the time horizon of 4-10 years; other development strategies 54

55 documents determining the basic conditions, objectives and directions in the areas indicated in the Mid-Term National Development Strategy. A special type of other development strategies" covers strategies referring to the regions National Strategy of Regional Development (NSRD), supra-regional strategies, Voivodeship Development Strategies. Programmes constitute documents of operational and implementation nature, which are established in order to implement a strategy. They are divided into Operational Programmes established in line with the provisions of the European Union in order to achieve the objectives defined in the National Cohesion Strategy and pointed out in the aforementioned other development strategies and programmes (including voivodeship programmes and multiannual programmes), which are documents implementing the objectives contained in other development strategies. The long-term development challenges, opportunities and threats are contained in the Long-Term National Development Strategy, which forms the basis for preparation of the strategic objectives in the social, economic, regional and spatial dimensions in a medium-term time horizon Mid-Term National Development Strategy. The entire process of development programming should be subordinated to the implementation of strategic objectives indicated in this manner. Moreover, the aforementioned act defines the requirements concerning the structure of the documents and it regulates the procedures related to their preparation and adoption. The act sets out how the programme development measures should be verified assessment of compliance of the proposed strategic documents, both development strategies and programmes, with the Mid-Term National Development Strategy. The compliance report has to be prepared and presented to the Council of Ministers by the minister competent for regional development. A separate chapter covers provisions on the implementation of Operational Programmes, including competences of Managing Authorities, Intermediate Bodies and Implementing Authorities, as well as procedures related to co-financing of projects implemented under the Operational Programmes. On 27 April 2009 the Council of Ministers adopted a document prepared by the Ministry of Regional Development under the title Guidelines on the Polish development management system. These Guidelines suggest a model of a development management system aimed at increasing the efficiency of programming and development policy implementation and increasing the quality of public institutions operation. The presented model is to constitute a basis for further activities aimed at reforming the manner of conducting and implementing the development policy. According to this document the MRD is obliged to prepare Urban Policy Guidelines. In this manner the need to define the place and role of urban policy within the framework of the development policy and its basic strategic documents, especially the NSRD and Concept of National Spatial Development (CNSD) was recognised. 55

56 At present, the MRD also carries out works on the ordering of the existing strategic documents (strategies, policies, programmes), which form the basis for introducing the solutions included in the proposed development management model. For this end in November 2009 the Council of Ministers adopted Development strategies organisation plan a document prepared by the Ministry of Regional Development. The activities undertaken within the framework of this measure are targeted at reducing the number of existing and developed strategic documents, including development strategies, which are adopted by the Council of Ministers, and systematic ordering of these documents. The reduction of the number of documents will enable greater transparency of the strategic programming process, more efficient disbursement of resources from the State budget and, thereby, more efficient implementation of national development objectives in medium and long-term perspectives. The document suggests reduction of the number of development strategies and policies from the currently applicable 42 documents of this type to 9 new development strategies, which will implement the Mid and Long-Term National Development Strategies. These nine documents will cover: Economic Innovation and Efficiency Strategy, Human Resources Development Strategy, Transport Development Strategy, Energy Security and Environment, Efficient State, Social Capital Development Strategy, Regional Development Strategy, Strategy for the National Security of the Republic of Poland and Strategy for Sustainable Development of Rural Areas and Agriculture. The presented concept of ordering the development strategies follows form the solutions adopted under the act on the principles of development policy making, which aim, inter alia, at constructing a cohesive hierarchy of strategic documents and establishing the relationships between them. Act of 27 August 2009 on public finance. This is the basic legal act establishing the rules of national financial economy. Within this scope the document defines, inter alia, the operating principles of the public finance sector units, manner of elaborating and implementing the State budget and budgets of the territorial self-government units, rules of managing public resources coming from the EU budget. At the national level, the Multiannual Financial Plan of the State, which was introduced by means of an amendment to the aforementioned act of 2009, is a new instrument for carrying out financial economy. It contains projection of revenue and expenditure, as well as a projection of profit and loss of the State budget prepared for four financial years. The structure of the document covers functions of the State together with the objectives and performance indicators of the given function, it also considers the medium-term objectives of the National Development Strategy (Section III, Chapter 1 of the act). The provisions of the act introduced a requirement for the minister competent for regional development to formulate opinions on certain investment expenditure of 56

57 public finance sector units, which exceed PLN 300 million. The opinions will concern compliance of the forecasted investment with relevant development strategies. Within the scope of development policy financing the act points to the fact that the State budget can determine expenditure limits for multiannual programmes under the expenditure limits for a given year. The annexes to the budget act should also cover a comparison of multiannual programmes in respect to tasks, as well as a list of multiannual limits of commitments in subsequent years of implementing the programmes financed from the European resources along with a list of multiannual limits of expenditure delivered within their framework and expenditure plan for the implementation of technical assistance projects and programmes co-financed form the European resources. The act imposes on the minister competent for regional development an obligation to draw up quarterly projections of payments under programmes financed from European resources. Moreover, the minister competent for regional development presents to the Council of Ministers quarterly information on the amount of commitments following from the agreements concluded with the beneficiaries within the framework of individual programmes, as well as the level of resources transferred and planned to be transferred to the beneficiaries until the end of the given financial year. As for the finance of territorial self-government units the act introduces a multiannual financial projection. Likewise the Multiannual Financial Plan of the State the multiannual financial projection prepared by the territorial self-government units covers the period of a given financial year and at least 3 subsequent years. On the basis of the multiannual financial projection the annual budgets for territorial selfgovernment units are developed (Section V, Chapter 2 of the act). Act of 27 March 2003 on spatial planning and spatial development (Dz.U, No. 80, item 717, as amended) It is a legal act defining the principles of shaping spatial policy by territorial selfgovernment units and government administration bodies, it also determines how to act in cases concerning land development. The act defines several basic concepts within the scope of spatial planning and spatial development. According to its provisions the spatial order is understood as configuration of space, which creates a harmonious whole and considers all conditions and functional, socio-economic, environmental, cultural and compositional and aesthetic requirements under ordered relationships. On the other hand, the problem area is understood as an area, on which some special phenomenon occurs that concerns spatial economy or spatial conflict indicated in the Voivodeship Spatial Development Plan or established in the study on conditions and directions of gmina spatial development. The provisions of the act designate the scope of responsibilities of administrative units of various levels in relation to issues concerning spatial planning and spatial development. In line with these provisions the spatial policy formulation and making within the territory of a gmina, including the adoption of the study on conditions and directions of the gmina spatial development and local spatial development 57

58 plans, constitute the gmina inherent tasks. The scope of tasks implemented by selfgovernment of a poviat cover the performance of analyses and studies on spatial development, which concern the area of the poviat and its development issues. Spatial policy formulation and making in a voivodeship, including the adoption of Voivodeship Spatial Development Plan, belongs to the tasks of self-government of a voivodeship, while the national spatial policy formulation and making is one of the tasks of the Council of Ministers. The development of the drafts of Voivodeship Spatial Development Plans, studies on conditions and directions of gmina spatial development and local development and local spatial development plans constitutes the activities recognised spatial development planning. Within the scope of spatial planning at the national level the act equips the minister competent for regional development with the competences concerning the elaboration of Concept of National Spatial Development (CNSD). This document should determine the conditions, objectives and directions of national sustainable development and activities necessary for its achievement. Article 47(1) and (2) emphasise that Minister competent for regional development given the objectives included in the strategic documents of the government: 1) develops a concept of national spatial development, which considers the principles of national sustainable development on the basis of environmental, cultural, social and economic conditions referred to in separate provisions, as well as carries out foreign cooperation within the scope; 2) performs analyses and studies, elaborates concepts and prepares programmes, which refer to the areas and issues remaining within the scope of strategic programming and forecasting economic and social development in cooperation with relevant ministers and central government administration bodies. Further provisions regulate the issues related to the location of public purpose investments and determining the rules of development in relation to other investments. The act also introduces the definition of a metropolitan area (MA) which is understood as an area of a large city and its immediate surrounding related to it by functional means, which is established in the Concept of National Spatial Development. It is also worthwhile to note that the works on the amendment to this act are currently under way (at the time of writing this report they have not been finished yet). The most significant changes will consist in introduction of a document entitled: National Spatial Development Plan. This document will determine the distribution of investments of international, national and supra-regional significance, as well as the location of enclosed areas, problem area, areas requiring protection and metropolitan areas. The spatial development plans elaborated at different levels of the country s territorial development were to some extent strengthened by introduction of the term binding arrangements of the National Spatial Development Plan and Voivodeship Spatial Development Plans. At the same time, the act defines the relationships between the spatial development plans and the strategic documents developed at the national and regional levels, i.e. in particular, 58

59 between the Long-Term and Mid-Term National Development Strategy and other development strategies, such as Voivodeship Development Strategies. The requirement to prepare the concept of national spatial development was dropped as a result of harmonising the spatial planning with the socio-economic programming, which is manifested, inter alia, in integrating the spatial aspects into the basic national strategic documents and introducing the National Spatial Development Plan. As for detailed issues, some regulating provisions were added, which related to: the arbitration procedures within the scope of gmina spatial planning, spatial planning of marine areas, changing the manner of using land, buildings or parts thereof. The amendment also introduced the term "functional area", which is understood as a "compact spatial structure, which consists of functionally related areas characterized by common conditions and expectations and uniform development objectives that were indicated in the Voivodeship Spatial Development Plans. The amendment of the act provides for preparation and adoption of spatial development plans for functional areas ( plan of a functional area ), which will constitute a part of the Voivodeship Spatial Development Plan. The plan of a functional area will contain, in particular: 1) rules and areas of developing communication and technical infrastructure systems, including the distribution of public roads that are significant for the functional area, along with a definition of their categories and classes referred to in the act of 21 March 1985 on public roads; 2) rules and areas of conservation of the environment, nature and cultural landscape, supra-regional and regional ecological corridors, protection of health-resorts as well as cultural heritage and monuments and contemporary cultural assets, especially, in relation to the manner of delivering technical infrastructure; 3) arrangements following from the rules of development and protection of the areas referred to in point 1 and 2, which are situated within the boundaries of the functional area Basic strategic documents National level Long-Term National Development Strategy covering the period until 2030 The preparation of the draft of the Long-Term National Development Strategy and negotiations thereof will be coordinated by the Prime Minister or a representative designated by the Prime Minister. Works on its development are currently under way. Content of the document: - major trends and challenges following both from the internal development of the country, as well as from the changes in its external surroundings; - complex socio-economic concept of national development in the time horizon up to 2030, which considers the social, economic, environmental, territorial and institutional dimension; 59

60 - development scenarios taking into account the objectives and rules of sustainable development; - internal and external conditions of national spatial development; - objectives, directions and priorities of national spatial development and spatial planning along with the manner of their implementation. Detailed follow-up on the objectives of the Long-Term National Development Strategy takes place in the medium-term documents, especially, in the Mid-Term National Development Strategy. This primarily relates to the arrangements and recommendations concerning the strategic intervention areas (problem areas) of national significance (e.g. policy outline against other areas). Mid-Term National Development Strategy The currently existing Mid-Term National Development Strategy is the National Development Strategy (NDS), which was adopted by the Council of Ministers on 29 November Works on up-dating this document have already been initiated. Mid-Term National Development Strategy covers a time horizon of 4-10 years, which considers the EU programming period. The up-dated NDS will be binding in (10 year time horizon). The draft of the Mid-Term National Development Strategy is prepared and negotiated by the minister competent for regional development in cooperation with other relevant ministers. Content of the document: Mid-Term National Development Strategy is a document determining the basic conditions, objectives and directions of national development under the social, economic, regional and social dimensions, which is implemented by development strategies and with the use of programmes. In the spatial dimension this strategy constitutes the framework for conducting spatial development policy for all entities implementing this policy at individual stages. This framework will contain clear arrangements, which commit territorial self-government units to perform specific activities. The medium-term perspective makes it possible to formulate the content of this document in a more specific and detailed manner. The Mid-Term National Development Strategy includes in particular: - a diagnosis of the social, economic, regional and spatial situation of the country considering the state of the environment; - a projection of development trends within the period covered by the strategy; - information on the manner of considering the recommendation following from the ex-ante evaluation; - strategic objectives in the social, economic, regional and spatial dimensions; 60

61 - implementation indicators; - directions of the national policy which aim at the achievement of the strategic objectives of the development policy; - directions of interventions of entities conducting the development policy, which aim at the achievement of the strategic objectives of the development policy; - problem areas of national and supra-regional significance, which require national intervention; - assumptions of the implementation system and financial framework. Mid-Term National Development Strategy also established the strategic tasks of the State, which are understood as, inter alia, strategic investments and rules of considering them into Development Programmes and Operational Programmes. Variants of disbursing these investments will be indicated in the National Spatial Development Plan. National Cohesion Strategy The National Cohesion Strategy (NCS) is an especially significant document as regards national development a document which was drawn up to ensure the implementation of the European Cohesion Policy in Poland and which is referred to in Title II Chapter II of the Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999. The currently applicable National Strategic Reference Framework (NSRF) is an example of such a strategy. The time horizon of this document is in line with the time horizon of the EU financial perspective. At present, it covers the period (however, the implementation will cover 2 subsequent years in line with the n+2 rule). The draft of the NCS is prepared and negotiated by the minister competent for regional development in cooperation with other relevant ministers. Content of the document: The content and structure of this document follows from the adopted EU regulations, which establish the provisions of the European Cohesion Policy. The NCS contains a diagnosis of the socio-economic situation in the country and its regions, SWOT analysis, ex-ante evaluation together with environmental impact assessment and assessment of macro-economic effects. This document formulates the most important challenges for the country in the perspective of subsequent years and it determines the vision and objectives that aim at achievement of socio-economic and territorial cohesion with the countries of the Community. It also demonstrates the allocation of financial resources to individual Operational Programmes and shortened implementation system along with the description of individual OPs delivering the objectives of the NCS. Monitoring and up-dating 61

62 The Minister of Regional Development exercises supervision over correct operation of the NSRF implementation system, the Minister is also responsible for conducting evaluation research on the NSRF level, including horizontal research, supporting studies and ad-hoc research that follow from monitoring the NSRF implementation. Monitoring covers the level of expenditure incurred within the framework of the Cohesion Policy implementation. The Coordinating Committee (CC) was appointed for proper coordination of activities, strategic monitoring and assessment of NSRF implementation. The CC is chaired by the minister competent for regional development. The CC meets every 6 months and performs periodic review of the progress in NSRF implementation (including also individual Operational Programmes). Financing The total amount of resources committed in the NSRF implementation in will consist in approx. EUR 85.6 billion. The average annual expenditure for the implementation of NCS (until 2015) will amount to approx. EUR 9.5 billion, which corresponds to approx. 5% of Gross Domestic Product. The amount covers: - EUR 67.3 billion of resources from the EU budget, - EUR 11.9 billion of the national public resources (including approx. EUR 5.9 billion from the State budget); - EUR 6.4 billion of resources form private entities. The expenditure for Cohesion Policy are co-ordinated with the expenditure allocated to structural instruments of the Common Agricultural Policy and the Common Fisheries Policy, as well as the European programmes within the area of enhancing competitiveness. The total amount of resources engaged in the implementation of development measures, which will have the NSRF as their major element, will amount to over EUR billion, including EUR 85.4 billion from the EU resources. Significance of the document: The NCS is a document including the programming, implementation and financial framework for spending in the resources available under the EU budget, i.e. the European Regional Development Fund, European Social Fund and the Cohesion Fund, which are allocated to supporting economic growth and employment in the Polish regions. These resources will be spent under 5 national Operational Programmes (OPs), i.e. OP Human Capital, OP Innovate Economy, OP Infrastructure and Environment, OP Development of Eastern Poland and OP Technical Assistance, as well as 16 Regional Operational Programmes (ROPs) implemented in each voivodeship. Relationships with other documents The NCS implements the Mid-Term National Development Strategy. It also supports the delivery of development tasks indicated in other development strategies. The NCS forms the basis for the preparation of Operational Programmes both national and regional ones. 62

63 Concept of National Spatial Development The Concept of National Spatial Development (CNSD) is developed by the Minister of Regional Development and it determines the conditions, objectives and directions of national sustainable development and measures necessary for its achievement, and in particular: 1) basic elements of the national settlement network along with a separation of metropolitan areas; 2) requirements within the scope of protection of the environment and monuments, taking into account the areas requiring protection; 3) distribution of social infrastructure of international and national significance; 4) distribution of technical and transport infrastructure facilities, strategic water resources and water management facilities of international and national significance; The draft of this document is currently being developed. National Strategy of Regional Development (NSRD) The time horizon of this document does not go beyond the time horizon of the Mid- Term National Development Strategy (i.e. up-dated NDS). NSRD is prepared for the period. Currently its draft is being prepared, which is under interministerial consultations and after them it will be adopted. The draft of the NSRD is developed and negotiated by the minister competent for regional development in consultation with territorial self-government units, as well as social and economic partners. Content of the document: Apart from the requirements concerning the so-called other development strategies the NSRD defines in particular: - conditions, objectives and directions of regional development; - national policy towards regions, groups thereof or problem areas; - principles and mechanisms of cooperation and coordination of measures undertaken by the Council of Ministers at the national level, together with measures undertaken by territorial self-government units at the regional level. NSRD provides an answer to the challenges, which will have to be faced by regional policy within the next few years. This document determines the national regional development vision and sets out the directions of national regional interventions with the cooperation of self-government authorities responsible for the establishment and implementation of regional development strategies. It constitutes the major instrument of national regional policy, which defines the basic objectives and directions of national development in its regional layout, taking into account the principles of economic, social and territorial cohesion. In general, it refers to the major regional development problems of the country and it points to the directions of their development. This is a strategy, which integrates all entities/partners in the public area. 63

64 This documents aims, above all, at: - identification of the major regional development problems of the country and determining their possible solutions, as well as the manner in which their solution can support the development processes outlined in the Long-Term National Development Strategy, Mid-Term National Development Strategy and the NSRF. - identification of regional policy objectives of the government, methods of their implementation and basic funding; - indication of regional conditions of development programmes implementation which relate to individual sectors or areas, as well as determining how they will be coordinated by the national regional policy; - indication of the relationships between the regional policy and national spatial development policy, as well as determining the relationships between these policies in respect to implementation and financial aspects; - establishing the rules, which should guide the self-governments of voivodeships when formulating voivodeship development objectives, which are to be financed at the central/national level on the basis of a contract; - establishing the rules of dividing resources allocated to Regional Operational Programmes delivered in individual voivodeships; - indication of the changes necessary at the regulatory level and broadlyconceived surrounding of regional development and regional policy, which have to be implemented in order to achieve the assumed objectives and apply the assumed instruments. NSRD considers the arrangements included in the Mid-Term National Development Strategy and other development strategies. This document provides a point of reference for supra-regional strategies, voivodeship development strategies, local strategies and other regional documents. The relationships between these documents are of functional and not hierarchical character. The strategy is a binding document for all ministries, which guides and coordinates sectoral measures that have impact on regional development of the country. It also sets out the most important directions of support for regional development. At the same time, there are other legal regulations identifying the types of documents required in defined areas or sectors. Acts imposing an obligation to prepare a strategy or policy cover in particular: - act of 20 June 2005 on public finance (Dz.U. No. 249, item 2104) article 70 of this act imposes an obligation to prepare a Public Finance Sector Debt Management Strategy for a period of 3 years; on 1 January 2010 a new act on public finance entered into force, which requires that the Debt Management Strategy of the State Treasury debt covers a 4 year period (Article 75); - act on nature conservation Article 111 of the act imposes an obligation to prepare a National strategy for conservation and sustainable use of biodiversity; 64

65 - act on common defence obligation Article 6 imposes an obligation to prepare a National Security Strategy; - act - Energy Law Article 12 of the act imposes an obligation to prepare National Energy Strategy as least once every 4 years, which contains, inter alia, a projection for at least 20 years and an action plan for 4 years; - act Environmental Protection Law Article 13 of the act imposes an obligation to prepare National Environmental Policy for at least 4 years and covering actions projected for another 4 years; - act of 16 February 2007 on competition and consumer protection (Dz.U. No. 50, item 331, as amended) Article 31 point 4 imposes an obligation to prepare Government Consumer Protection Policy; - act of 21 November 2008 on civil service (Dz.U. No. 227, item 1505) Article 15(2) and (3) of the act imposes on the Head of Civil Service an obligation to prepare and present to the Council of Ministers a draft of a Strategy for Human Resources Management in the Civil Service. - a draft act on amending the act on spatial planning and spatial development and certain other acts imposes, inter alia, an obligation to consider the arrangements of the Long-Term and Mid-Term National Development Strategies and other Development Strategies in the National Spatial Development Plan. At regional level these cover: Voivodeship Development Strategies (VDS) VDS is a document of long time horizon at present these type of documents on average reach up to The strategy covers a period which does not exceed the period covered by the Mid-Term National Development Strategy. The Voivodeship Board prepares a draft of this document. The Voivodeship Development Strategy covers, in particular, the following objectives: 1) strengthening Polish identity, as well as development and shaping of the national, civil and cultural awareness of the citizens, as well as strengthening and development of local identity; 2) stimulating economic activity, 3) increasing the level of competitiveness and innovation of voivodeship economy; 4) protection of the values of the cultural and natural environment, taking into account the needs of future generations 5) development and maintenance of spatial order. VDS includes: - diagnosis of socio-economic situation in a voivodeship; 65

66 - identification of development policy strategic objectives in a voivodeship; - determining the directions of actions undertaken by the voivodeship selfgovernment in order to achieve the development policy strategic objectives in a voivodeship. VDS funding is carried out, primarily, through Regional Operational Programmes and voivodeship programmes. Voivodeship Spatial Development Plans (VSDPs) Voivodeship self-government units elaborate the Voivodeship Spatial Development Plan considering the Voivodeship Development Strategies and determining, in particular: 1) basic elements of the settlement network of the voivodeship as well as transport and infrastructural relationships between them, including the directions of crossborder connections; 2) system of protected areas, including areas of environment, nature and cultural landscape conservation, protection of health-resorts and cultural heritage and monuments and contemporary cultural assets; 3) distribution of public purpose investments of supra-local significance; 4) problem areas along with the principles of their development and metropolitan areas; 5) support areas; 6) areas at risk of flood; 7) boundaries of enclosed areas and their buffer zones; 8) areas of documented presence of mineral bodies. In case of metropolitan areas, spatial development plans for metropolitan areas are adopted as parts of the Voivodeship Spatial Development Plans. Regional Operational Programmes (ROPs) Regional Operational Programmes (ROPs) constitute documents referred to Article 2 of the Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 (OJ L 210, , p ). The time horizon of Regional Operational Programmes is compliant with the time horizon of the strategy prepared with the view to ensure implementation of the European Cohesion Policy in Poland. Within the framework of the currently existing EU financial perspective this document is the National Cohesion Strategy (in line with the n+2 rule its measures will be implemented until 2015). The Voivodeship Board prepares a draft of this document in cooperation with the minister competent for regional development. 66

67 The structure of the document is established in the relevant Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999. Monitoring of the Regional Operational Programmes is carried out by the Managing Authorities (pursuant to the act of 6 December 2006 on the principles of development policy making the Managing Authority for ROPs is the Voivodeship Board) and the ROP Monitoring Committee. Moreover, the ROP implementation effects are also monitored by the ROP Coordinating Authority. This function is performed by the minister competent for regional development. Measures implemented within the framework of these programmes are financed from the European Regional Development Fund and national resources, both public and private. Regional Operational Programmes constitute an annex to the budget act. The draft ROP is adopted by the Sejmik of the Voivodeship by way of a resolution, and next it is forwarded to the European Commission. ROPs implement the objectives of the European Cohesion Policy in Poland. They constitute a significant element supporting, and on many occasions initiating, development processes in the regions. They constitute an additional source of funding for development measures. ROPs form one of the significant implementation instruments applied by VDS. ROPs, above all, implement the provisions of the strategic document prepared to ensure the implementation of the European Cohesion Policy in Poland. Within the framework of the currently existing EU financial perspective this document is the National Cohesion Strategy ROPs also implement the objectives set out in VDS. At local level these cover: Studies on conditions and directions of the spatial development gminas Studies on conditions and directions of the spatial development constitute documents, which time horizon is not strictly defined in the act. In practice, these are documents with a longer time horizon. The draft of the document is elaborated respectively by the Voit, Mayor or President of the City. The document is adopted by way of a resolution of the City or Gmina Council. It is prepared for the entire territory falling within the gmina administrative boundaries. The study should cover: description of the conditions occurring within the territory of the gmina (land use and development, condition of the spatial order, condition of the environment, agriculture and forests, condition of infrastructure, etc.) directions of changes forecasted for each of the elements described in the document. 67

68 This document consists of two parts: text and graphics. The detailed scope and form of the study draft is determined in a relevant ordinance of the minister competent for construction. Studies on conditions and directions of the gmina spatial development fail to be local law documents. Local self-government units cannot refer to the provisions of these documents when carrying out administrative proceedings. The arrangements included in the studies are binding for gmina units when they prepare local spatial development plans. Local gmina spatial development plans Local gmina spatial development plans are adopted by the gminas and they constitute binding gmina law (local law). These plans must be in line with the studies on conditions and directions of the spatial development. The draft of the document is elaborated respectively by the Voit, Mayor or President of the City. Local spatial development plans should include: - arrangements concerning land use; - location of buildings; - distribution of public purpose investments; - definition of the planning methods and conditions of land development; - boundaries of enclosed areas and their buffer zones; - territories of protected areas. This document consists of two parts: text and graphics. The detailed scope and form of the study draft is determined in a relevant ordinance of the minister competent for construction Urban policy of central-level authorities Chapter 1 indicates that the Act on government administration sections does not provide for a separate section for urban development or urban policy. The issue of urban policy has been classified as one of 8 issues within this sector - to the department of construction, spatial and housing management, next to: 1) architecture; 2) construction; 3) architectural and building supervision; 4) spatial development; 5) support for housing; 6) real estate management, unless separate provisions provide otherwise; 8) governmental programmes for municipal infrastructure development. This department remains currently within the competence of the Ministry of Infrastructure. The "regional development section covers, inter alia: 1) programming and coordination of development policy, in particular preparation of development strategy drafts; 2) programming and implementation of development policy; 3) preparation of programme documents within the field of socioeconomic development of the country, including those which are the basis for obtaining 68

69 development-related funds from the European Union and other international sources, and it involves - as a rule the matters of city development (despite the fact that this issue is not explicitly listed among its areas of interest). With such division of tasks, there is no single formal strategy referring to urban areas in Poland at the national level and no single government authority, which would comprehensively deal with urban development. In consequence, urban policy is dispersed and reflected in numerous government documents, mainly those elaborated by the Ministry of Regional Development. The binding documents include National Development Strategy and National Strategic Reference Framework in support of growth and jobs National Cohesion Strategy (NSRF) which conditions the expenditure of EU structural funds in The most important urban aspects of these documents are presented below. National Strategic Reference Framework in support of growth and jobs National Cohesion Strategy (NSRF) The NSRF contains guidelines concerning urban policy drawn up in the Community Strategic Guidelines. The urban aspect of the implementation of Cohesion Policy in Poland in should translate into three basic areas of activity: 1) Use of the potential of the largest urban centres as the driving force of regional development cities as centres of innovation and knowledge-based economy implemented through: competitiveness improvement, promotion of entrepreneurship, innovation and development of services, as well as obtaining and retaining of highly qualified labour force; 2) Strengthening the relations between metropolitan and urbanized centres and the areas surrounding these centres covering the creation of communication and IT links, as well as economic, service-related and cultural connections, etc; 3) Promotion of internal coherence in urban areas aiming at the limitation of high concentration of economic, environmental and social problems within large urban centres. To achieve this goal, activities aimed at renewal of physical environment will be promoted, revitalization of cities (including post-industrial areas), protection and development of cultural and historical heritage, promotion of entrepreneurship and local employment. This issue will be discussed in further detail in chapter 6 of the second part of the Report, referring to the implementation of structural funds. National Development Strategy The document indicates one superior, overall objective: Improvement of the level and quality of Polish residents' lives: the citizens and their families, through the implementation of the following priorities: 1. Growth of competitiveness and innovativeness of the economy 2. Improvement of the condition of technical and social infrastructure 69

70 3. Growth of employment and raising of its quality 4. Building an integrated social community and its safety 5. Development of rural areas 6. Regional development and the raising of territorial cohesion Priorities 2 and 6 have a direct impact on the cities development. Ref. Priority 2 Modernisation and extension of the technical infrastructure (transport, housing, ITC, environmental protection infrastructure) and development of social infrastructure (ensuring access to education, medical, care and social services, services related to administration and justice, as well as recreation and leisure infrastructure) will: - have an impact on the transport accessibility of cities; - improve the natural environment of the cities; - facilitate access to social infrastructure and services (which are modern, available at good prices and easily accessible via Internet); - strengthen the attractiveness of cities in respect to housing and living conditions; - enable diffusion of development from centres of higher significance to less developed areas; - strengthen socio-economic cohesion of the country; - increase the mobility of the society. Within the scope of transport infrastructure the NDS points to the need to: - optimize and improve the quality of the national transport system; - ensure communication accessibility of Poland and its regions, especially major urban centres; - invest in the public transport system (alternative solution for individual car transport, especially in agglomerations); - provide support to the construction of the fast system of railway transport integrating Polish urban centres. Within the scope of housing infrastructure the NDS points to the need to: - establish institutional and financial incentives to invest in housing; - provide support to different forms of housing (private, public and social); - promote replacement and revitalisation investments (including the use of post-industrial and other facilities); - provide support to equipping areas in basic media. Ref. Priority 6 70

71 Strategic objective: Establishing conditions for increasing the competitiveness of all regions favouring economic, social and territorial cohesion Detailed objectives within the scope of cities development: fuller use of the endogenous potential of the major urban centres; development of metropolitan areas; strengthening the relationships between the urban centre and urbanized areas, and their surrounding rural areas and small cities, development of rural areas; The basic directions of national activities, which directly support cities development following from these Priority cover: - improvement of transport infrastructure between the major urban centres and other cities, as regards the connections city rural areas and increase in the availability of collective transport systems; - extension of the range of impact of metropolitan areas and other large cities through development of functional relationships and complementing collective transport connections and communication with other smaller centres; - supporting the development of the settlement and urban network; - strengthening the process of economic potential reconstruction in small cities and towns, which is based on endogenous values of these centres; - support to housing development; - support to the development of broadly-conceived infrastructure; - support to the modernisation processes and small-scale entrepreneurship. Moreover, the NDS points also to the basic NDS implementation indicators for individual priorities under this project. Only one implementation indicator related to the monitoring of the strategy implementation process within the scope of cities development urbanization level, which is assigned to Priority 6 (Regional development and the raising of territorial cohesion). The year 2005 was taken as the baseline year when the urbanization level was established at 61.4%. The draft of the strategy assumes that this level will be increased i.e. in 2010 to the level of 61.8% and in 2015 to the level of 62.5%. Other indicators refer to the implementation of the objectives/priorities within the area of the entire country, without the division into city/rural areas. Full text of the NDS in English was transferred to the experts during the first OECD mission on March Urban development in the current work of the MRD It needs to be stressed that the MRD is currently working on new documents covering in greater detail the problem of urban development these include the Concept of National Spatial Development (CNSD) and National Strategy of Regional Development for : Regions, Cities, Rural areas (NSRD). The provisions of the NSRD and CNSD give rationale/guidelines for the public authorities to exercise 71

72 a planned impact on cities development in Poland. They point to the activities related to cities, which when implemented directly imply the achievement of the regional and spatial policy objectives. Many of these can be recognised as traditional instruments of influencing the cities development Therefore, the Urban policy guidelines (referred to earlier, in point 1 of this chapter) will constitute their continuation and, possibly, they will supplement them with issues going beyond their objective character. The works on the Urban Policy Guidelines are carried out by the MRD in parallel to the works on CNSD, NSRD and the OECD National Urban Policy Review of Poland. The Guidelines... will be developed on the basis of the CNSD and NSRD with the use of the experts' knowledge and experience of the self-government party. Cities as the basic element of the settlement pattern of the country constitute an integral part of the Polish territory. Taking into account their significance, they are in the spotlight of national spatial policy, which was set out in the Concept of National Spatial Development (CNSD) and of the regional policy, which was determined in the National Strategy for Regional Development : Regions, Cities, Rural Areas (NSRD). The Ministry of Regional Development (MRD) works simultaneously on these two documents. The words: regions, cities, rural areas were integrated into the main title of the NSRD because of the manner of perceiving the cities and issues related to the influence that they have on themselves and other (suburban, rural and peripheral) areas on the regional, supra-regional and national scale. Such an approach provides the basis for the new manner of thinking about development issues in Poland. Therefore, the urban policy should be understood as the policy concerning cities and their functional areas, as well as relating to the manner in which cities exercise impact on the surrounding areas (diffusion). In this way urban policy becomes equally valid and equivalent element of the development policy (especially spatial and regional policy), and its objectives and instruments are coordinated with other horizontal and sectoral policies. The above will be achieved with the assistance of various mechanism and instruments proposed in the NSRD and CNSD. Urban policy defined in this manner will combine the issue of socio-economic development with the urban and spatial approach, as well as with the institutional aspects. The former are especially significant since the urban policy should have a broad meaning it should not only be recognised as the activities undertaken by the government in relation to the cities, but it should also be applied in the elaboration of a management and cooperation model on all administrative levels dealing in cities development (individual units that have different tasks and instruments should create a multilevel management system). Summing up, according to MRD, urban policy constitutes a part of the national socio-economic and spatial development policy and it is carried out by the public authorities in relation to cities. Given the horizontal character of the urban policy it should be implemented at all levels of management: national, regional and local. 72

73 Urban policy established in the draft of the Concept of National Spatial Development up to 2030 (CNSD) A role in the government s impact on the spatial development policy of cities and on the urban policy of regional and local self-governments may be played by the Concept of National Spatial Development a legal act adopted by way of a resolution of the Council of Ministers which is binding for the ministers in the course of drawing up programmes concerning government tasks relating to public purpose investments of national importance, within the scope specified by the Council of Ministers. CNSD determined the vision of spatial development of the country and the national spatial policy understood as all the activities undertaken by the government and other public entities to ensure implementation of the concept of national spatial development set out in this document. Spatial development defines the manner in which the basic elements of the spatial structure are distributed on the Polish territory and the relationships between these elements. The above-mentioned elements cover: parts of the economic and social system, infrastructure, settlement pattern, natural and cultural environment. CNSD contains an Action Plan, which describes the tasks of spatial policy, as well as the tasks of the following policy sectors: transport, water management, energy, environment, urban policy, rural areas development and marine areas development policies. Moreover, CNSD provides for an implementation system, which constitutes a platform for confronting plans and projects between politicians and activities of public authorities on each level of their implementation, i.e. horizontal and vertical coordination. Vertical coordination stands for coordination within the framework of a given area, moreover, it requires involvement of all entities managing on a given area and doing so in compliance with a relevant policy at a country level; urban policy provides an example of such an approach since it requires coordination of actions between the government and self-government. Urban policy implementation under the draft of the Concept of National Spatial Development (CNSD) The major emphasis of the CNSD is placed on the urban areas, which are recognised as one of the most important element of the national space, as well as the drivers of development of the entire country. Therefore, one of its objectives covers an increase in the competitiveness of major urban centres 11 of Poland in the European space, at the same time, maintaining the polycentric structure of the settlement pattern. 11 This covers: voivodeship centres, including pairs of cities, which fulfil voivodeship functions (Gorzów Wielkopolski and Zielona Góra, as well as Bydgoszcz and Toruń) and regional centres (Bielsko-Biała, Częstochowa, Koszalin, Radom, Rybnik and Słupsk). 73

74 Figure 3 Concept of the polycentric metropolitan network in 2030 national centres metropolitan Silesian conurbatio major functional relationships under the national network Over the next 20 years the spatial policy is to lead to the development of a polycentric metropolitan network that forms a co-related and open network of metropolitan centres, to which other voivodeship and regional centres are attached and which is connected to the European metropolitan network. According to the concept described in the CNSD the polycentric metropolitan network will consist of: - Warsaw and the largest metropolitan centres with the population of the core exceeding 300 thousand: Upper Silesia conurbation (Katowice together with its surrounding area), Kraków, Gdańsk-Gdynia-Sopot, Łódź, Wrocław, Poznań, the metropolitan area of Bydgoszcz and Toruń, Szczecin, Lublin; - other voivodeship cities (attached to the major metropolitan knots): Białystok, Rzeszów, Kielce, Opole, Zielona Góra, Gorzów Wielkopolski and regional centres (together with their functional areas): Koszalin Słupsk, Bielsko-Biała, Częstochowa, Radom and Rybnik; - The above-mentioned urban areas will be supplemented with the network of subregional and local centres. Separate activities will be targeted at individual types of urban centres referred to above, which will according to the guidelines on the CNSD result in the development of the polycentric metropolitan network and thereby they will increase the international competitiveness of Polish cities. 74

75 These activities will be carried out under the following directions: Intensification of functional relationships between the major knots of the settlement network (hence between the individual metropolitan centres, between metropolitan and regional centres, and between Polish and foreign metropolitan centres); The spatial development will, in the first place, strengthen the functional relationships between the metropolitan centres, and next, it will reinforce the relationships between the metropolitan centres and other voivodeship and regional centres. These activities will be focused on achieving an increase in the number and intensity of infrastructural relationships and, above all, functional relationships within the scope of economic, social, educational and symbolic functions, including also the cultural functions and functions of the research and development sector. Next, the spatial policy will support the establishment of functional relationships with subregional and local centres. Support to the development of metropolitan functions of the cities Spatial policy will support the development of metropolitan functions of both metropolitan centres, as well as voivodeship and regional centres. The activities supporting the development of metropolitan functions will be tailored to the initial situation, i.e. to the level of metropolisation of individual metropolitan centres. Integration between functional areas and the core of the metropolitan areas Spatial policy will support integration between the functional area and the core of the metropolitan area by means of activities of programming nature and by strengthening the functional relationships inside the metropolitan area, which also includes improvement of transport availability inside these areas. In order to transfer the economic growth to other urban areas and, with their intermediation, to the areas surrounding the urbanised areas and to areas of agricultural character the spatial policy will support the integration of lower-level urban centres into the polycentric metropolitan structure and attaching them to cities of subregional and local significance. For the purpose activities targeted at the following directions will be carried out: 1. Support for the establishment and intensification of relationships between the core of the metropolitan network and regional, voivodeship, subregional and local cities. 2. Support for the development of subregional and local centres This activity aims at strengthening and stabilization of the network of medium-sized cities and providing support to the establishment of their functional areas. 3. Diffusion of development from urban centres to their surrounding areas Spatial policy will support the functional relationships both within the functional areas of regional and subregional cities and larger local cities, as well as the relationships with the space external to their functional areas. 75

76 Urban policy set out in the draft National Strategy of Regional Development : Regions, Cities, Rural Areas (NSRD) The draft of NSRD is a document establishing the objectives and manner of action of the public entities, and especially of the government and voivodeship selfgovernments, in relation to the Polish territory, which are aimed at achieving national development objectives. The draft sets out the objectives of the regional development policy, including objectives related to rural and urban areas, and it also defines their relationships with other public policies that have an explicit territorial focus. The strategic objective of regional policy, which was established in the NSRD, covers efficient usage of the specific regional and territorial development potentials for the purpose of achieving in a long term perspective the national development objectives, i.e. growth, employment and cohesion. In order to more fully use the competitive advantages and maximise the efficiency of interventions under NSRD the directions of regional policy actions will be addressed to the strategic areas of regional policy interventions, which are most likely to improve the competitiveness of the country on the international scale, i.e. in the first place they will be targeted at the largest urban areas together with their functional background. Currently works on the final drafts of these two documents are under way. In line with the work plan of the government CNSD is to be developed until the end of the first half of 2010 and (inter-ministerial and regional) consultations of the document are planned for April/May It is expected that this year in February the MRD will prepare the draft of NSRD, which will take account of the remarks from the public debate carried out in relation to the draft on 9 September 2009 and which was negotiated with voivodeship self-governments. The next stage will consist in forwarding the document to inter-ministerial negotiations by the MRD; the completion of these negotiations will be decisive for determining the date of sending the document to the Council of Ministers Committee and the Council of Ministers. Urban policy implementation within the framework of the draft National Strategy of Regional Development (NSRD) The guidelines on spatial policy for urban areas which were outlined in the Concept of National Spatial Development covering the time horizon up to 2020 will be implemented, inter alia, by means of the National Strategy of Regional Development. NSRD will also implement the objectives and guidelines on the future urban policy. Given the limited resources that the regional policy has at its disposal, it has to focus on some selected problems and it cannot intervene on all territories, on which deviations from national average is observed in relation to the socio-economic indicators. Therefore, the regional policy will focus on providing support to the cities by strengthening the major urban centres in the country and supporting restructurisation and revitalisation of cities that are losing their former socioeconomic functions. 76

77 Then it will be possible to transfer the economic growth generated by the largest cities to other urban areas, which form the major polycentric knots of the Polish settlement pattern and on the urbanised areas that surround them. The regional policy is faced with a new challenge that consists in development of the capacity to absorb the development processes initiated in the largest urban centres. Among the fields of strategic challenges that have to be faced by the regional policy the NSRD highlights better usage of the potentials of the most important urban areas to create growth and employment and to stimulate development of other areas. One of the challenges that have to be addressed by the regional policy consists in ensuring internal cohesion to the country, inter alia, by counteracting the risk of losing socioeconomic functions that were performed by certain urban areas, as well as through improvement of the transport accessibility of voivodeship cities. 77

78 Figure 4 Spatial directions of activities under the first objective of the NSRD 12 Strengthening of the metropolitan functions of the voivodeship cities and their functional areas Warsaw the capital city of the State Other voivodeship cities Strengthening the relationships between the urban centres under national and international relationships Establishing conditions for dissemination of the development processes and increase in their absorption outside of the voivodeship cities In the areas of the greatest impact of the voivodeship cities On the entire area of the voivodeship Source: MRD s own elaboration. 12 The above-presented relationships do not illustrate the actual hierarchy and intensity of relationships between the cities. 78

79 Regional policy will influence the development factors in the cities by focusing on the following aspects: 4. Strengthening of the metropolitan functions of the voivodeship cities and their functional areas (including, a special emphasis on Warsaw) 5. Establishing conditions for dissemination and absorption of the development processes on the areas situated outside of the functional areas of the voivodeship cities. To this end activities will focus on: Increasing the communication availability of the voivodeship centres. Supporting the development and promoting the significance of subregional cities In reference to the urban dimension the cohesive element of the regional policy will: on the one hand, support restructurisation and revitalisation of cities and other areas losing the socio-economic functions that they have performed so far; and on the other, it will support the increase in the spatial accessibility of the voivodeship centres within areas of the lowest accessibility. The analyses have shown that there are many areas in Poland, which have lost the possibilities of growth and employment generation as a result of socio-economic changes. This primarily concerns some cities and post-industrial areas in the Upper Silesia region, but also some areas of the country, which are related to the extraction of mineral resources and, to a smaller degree, also to certain areas in the majority of large cities, in which the process of spatial segregation is strengthened and districts of poverty and exclusion are formed. The following map shows the distribution on the Polish territory of cities, which are especially distinguished with the loss of their socio-economic functions. 79

80 Figure 5 Poviat cities of more than 45 thousand inhabitants, in which negative socio-economic phenomena are concentrated The scale of socio-economic problems: Moderate average large very large 80

81 Comparison of policy directions with relation to cities in NSDC Category NSDC OBJECTIVE 1 NSDC OBJECTIVE 2 NSDC OBJECTIVE 3 Warszawa conurbation of Górny Śląsk, Kraków, Łódź, Trójmiasto, Poznań, Wrocław, Bydgoszcz, Toruń, Szczecin, Lublin Białystok, Rzeszów, Kielce, Olsztyn, Opole, Zielona Góra, Gorzów Wielkopolski Koszalin, Słupsk, Bielsko- Biała, Częstochowa, Radom and Rybnik support of the develop ment of metropol itan functions of major urban centres strengthening functional interconnecti ons between main hubs of the settlement network on the national and international levels integration of functional areas of main urban centres Support of cohesion on the national level Functional Restructuring and integration and revitalisation of support of the cities losing their spread of socio-economic development functions processes Improvement of mutual accessibility of main urban centres Improvement of accessibility within the functional areas of cities as well as bipolar and multidirectional systems Improvement of accessibility of Polish cities within the European space Piła, Elbląg, Grudziądz, Suwałki, Konin, Włocławek, Płock, Ciechanów, Ostrołęka, ŁomŜa, Siedlce, Biała Podlaska, Skierniewice, Leszno, Kalisz, Sieradz, Piotrków Tryb., Legnica, Jelenia G., Wałbrzych, Tarnobrzeg, Chełm, Zamość, Tarnów, Nowy Sącz, Krosno, Przemyśl, other Support of the development of subregional centres stabilizing the polycentric settlement network Functional integration and support of the spread of development processes Transformation and revitalisation of degraded areas within and outside of urban areas Improvement of accessibility of main cities with subregional centres Improvement of accessibility of cities within the European space Other

82 Comparison of policy directions with relation to cities in NSRD Category NSRD OBJECTIVE 1 NSRD OBJECTIVE 2 Warszawa support for the development of metropolitan functions of main urban centres conurbation of Górny 1.1. Strengthening metropolitan Śląsk, Kraków, Łódź, functions of voivodeship cities and Trójmiasto, Poznań, integration of their functional areas Wrocław, Bydgoszcz, Toruń, Szczecin, Lublin Remaining voivodeship centres Białystok, Rzeszów, Increasing transport Kielce, Olsztyn, Opole, accessibility within regions Zielona Góra, Gorzów Wielkopolski 1.2. Providing conditions for the Koszalin, Słupsk, Support of the development spread of Bielsko-Biała, and functionality of subregional development Częstochowa, Radom cities processes and and Rybnik increasing their absorption outside Piła, Elbląg, Grudziądz, Suwałki, Konin, Włocławek, Płock, Ciechanów, Ostrołęka, ŁomŜa, Siedlce, Biała Podlaska, Skierniewice, Leszno, Kalisz, Sieradz, Piotrków Tryb., Legnica, Jelenia G., Wałbrzych, Tarnobrzeg, Chełm, Zamość, Tarnów, Nowy Sącz, Krosno, Przemyśl, other voivodeship centres 2.2. Supporting rural areas with the lowest level of access to goods and services necessary for development (basic services concentrated mainly in poviat cities) 2.1. Securing cohesion on the national level Restructuringng of Eastern Poland 2.3. Restructuring and revitalisation of cities and other (strong emphasis on the cities network areas losing their socioeconomic functions (including development) general revitalisation) Other Better use of development potential of rural areas 82

83 Comparison of policy directions with relation to cities in NSDC and in NSRD NSDC Category NSRD Objective 1 Warszawa Strengthening metropolitan functions of Improving the competitiveness of voivodeship centres and integration of their conurbation of Górny Śląsk, Kraków, Łódź, Polish major urban centres within functional areas Trójmiasto, Poznań, Wrocław, Bydgoszcz, the European space, at the same Toruń, Szczecin, Lublin time retaining the polycentric Providing conditions for the spread of settlement structure which in Białystok, Rzeszów, Kielce, Olsztyn, Opole, development processes and increasing their beneficial for cohesion Zielona Góra, Gorzów Wielkopolski absorption outside voivodeship centres Koszalin, Słupsk, Bielsko-Biała, Częstochowa, Radom and Rybnik Objective 2 Piła, Elbląg, Grudziądz, Suwałki, Konin, Włocławek, Płock, Ciechanów, Ostrołęka, Improving country s internal ŁomŜa, Siedlce, Biała Podlaska, Skierniewice, cohesion by promoting functional integration and development Leszno, Kalisz, Sieradz, Piotrków Tryb., Legnica, Jelenia G., Wałbrzych, Tarnobrzeg, diffusion as well as making use of Chełm, Zamość, Tarnów, Nowy Sącz, the internal potential of all areas Krosno, Przemyśl, other Other 83

84 Comparison of city categories in NSDC and NSRD NSDC Category NSRD Metropolitan centres (11) Warszawa Capital city (1) conurbation of Górny Śląsk, Kraków, Łódź, Remaining voivodeship centres (17) Trójmiasto, Poznań, Wrocław, Bydgoszcz, Toruń, Szczecin, Lublin Regional centres (13): Białystok, Rzeszów, Kielce, Olsztyn, Opole, (remaining Zielona Góra, Gorzów Wielkopolski voivodeship centres- 7) Koszalin, Słupsk, Bielsko-Biała, Częstochowa, Subregional cities - (urban centres 6) Radom and Rybnik network of medium-sized cities (over 20 thousand) Subregional centres - all remaining cities with poviat status - former voivodeship cities - cities with population over 50 thousand Poviat centres(local) - population below 50 thousand Piła, Elbląg, Grudziądz, Suwałki, Konin, Włocławek, Płock, Ciechanów, Ostrołęka, ŁomŜa, Siedlce, Biała Podlaska, Skierniewice, Leszno, Kalisz, Sieradz, Piotrków Tryb., Legnica, Jelenia G., Wałbrzych, Tarnobrzeg, Chełm, Zamość, Tarnów, Nowy Sącz, Krosno, Przemyśl, other Other Rural areas comprising the smallest cities 84

85 3.4. Urban policy of self-government authorities Urban policy of self-government authorities in Poland is conducted by selfgovernments of voivodeships, poviats and gminas. The acts described above impose on the self-governments a series of obligations regarding the development and implementation of policies of their areas, and thus urban areas as well. Therefore individual self-governments form it on their own by means of development strategies and spatial development plans. Regional level voivodeship At the level of self-government of a voivodeship, there is a statutory obligation to draw up a Voivodeship Development Strategy and a Voivodeship Spatial Development Plan in cooperation, inter alia, with: units of local territorial selfgovernment, business self-government and professional association, nongovernmental organisations, governmental administration, in particular the Voivode. The strategy was mostly drafted in 2005 with time horizon until Pursuant to the act on the self-government of the voivodeship, the self-government defines and runs the development policy of the voivodeship, taking into account, inter alia, the following goals: stimulation of business activity, improvement of the level of competitiveness and innovativeness of the voivodeship s economy, preservation of the values of cultural and natural environment with regard to the needs of future generations, development and maintenance of spatial order. It should be pointed out that the voivodeship strategy does not have to include the issue of the cities. Voivodeship Spatial Development Plan represents the basis for the creation and conduct of the spatial policy in a voivodeship. In , they were adopted by Sejmiks of the Voivodeships in 15 voivodeships on the basis of the act on spatial planning of 1997 while in the Śląskie Voivodeship in 2004 on the basis of the currently valid act on spatial planning and spatial development 14. Most voivodeships have already commenced the update of their plans, yet they are waiting with the adoption thereof until the Concept of National Spatial Development is adopted. In the context of these updates, works have begun on the spatial development plans for metropolitan areas in several voivodeships. The document that directly translates into the implementation of the objectives included in these documents is constituted by Regional Operational Programmes (ROPs). However, due to individual approach to the issue of cities in regional development, not every voivodeship has included the issues directly related to cities in the objectives and priorities of their ROPs. For instance in the ROP of the Mazowieckie Voivodeship, there is Priority V. Strengthening the role of cities in 13 Feliks Pankau "Reflections in the context of relations: National plan and voivodeship planning" ( Refleksje na tle relacji: Plan krajowy a planowanie wojewódzkie ), Polish Academy of Sciences, the Committee on Spatial Economy and Regional Planning, Studies Vol. CXXII, Warsaw 2008, p Op. Cit. p

86 development of the region. The main objective therein is The use of the endogenous potential of cities for the social and economic activation of the region. Local level Poviat Territorial self-government at the poviat level has a relatively limited scope of tasks concerning development. The act of 5 June 1998 on poviat self-government indicates among the poviat s tasks inter alia the following: - adoption of the poviat programme for crime prevention and protection of citizens' safety and public order, - adoption of the poviat programme for counteracting unemployment and activation of the local labour market. Gmina Urban development is the natural goal of the policy implemented by selfgovernment authorities of gminas and in the case of larger cities also the policy implemented by the poviat. Under the applicable provisions of law, due to granted discretion to make decisions and manage its finances, gmina runs an independent policy concerning the implementation of tasks falling within its competences. Gmina defines the areas of socio-economic development policy by means of acts adopted by the internal management board. Gminas work on the development of programmes due to: - statutory provisions (e.g. waste management plan, Environmental Protection Programme); - efforts to obtain structural funds, which happens to be hedged by previous preparation of a certain document e.g. local development plan or revitalisation plan; - good governance principles since there is no possibility for the implementation of strategic objectives without a good programme. Gminas have the exclusive competence consisting in the adoption of the study on conditions and directions of the gmina spatial development and local spatial development plans (determination of principles of managing areas and purpose thereof), as well as adoption of the economic programmes. Gminas individually decide whether to work on the elaboration of the local spatial development plan (LSDP) or not and adopts it individually the plan has the status of a local law. Pursuant to the act of 27 March 2003, LSDP has to comply with the study on conditions and directions of the gmina spatial development, which does not have the status of a local law, but it represents a spatial reflection of the gmina s development policy. 86

87 Economic planning of territorial self-governments includes important issues in the policy of city development. However, gmina s and poviat s territorial selfgovernments are not obliged to draw up development strategies forming the longterm policy of a given unit under all of the most important scopes of functioning of a gmina or a poviat. It were the EU requirements that finally caused that since 2003 almost all gminas, which previously had no appropriate document, have drawn up Local Development Plans (whose definition and scope are defined by the "General Manual on the Implementation of IROP for "), which functions frequently beside the existing gmina s development strategy. However, these plans are usually targeted at obtaining assistance from structural funds, and thus they frequently do not encompass issues important for sustainable development of cities and issues whose resolution is not supported by EU funds. Additionally, gminas are obliged to draw up numerous branch plans, which results from branch acts concerning water and sanitary management, waste management and public transport. For instance, the Energy Law indicates that a Voit (Mayor, President of City) develops the plan for the provision of heat, electricity and gas fuels. Other documents imposed by acts of law on self-government authorities Moreover, numerous other acts refer to many documents that were established at particular levels of self-government administration. They include for instance: Act Environmental Protection Law imposes obligations on executive bodies of voivodeships, poviats and gminas for the purpose of implementing the state's ecological policy, draws up environmental protection programmes of voivodeships, poviats and gminas accordingly, which are subject to opinion of: 1) the minister competent for environment in the case of projects under voivodeship programmes for environmental protection; 2) the voivodeship s executive body in the case of projects under poviat programmes for environmental protection; 3) the poviat s executive body in the case of projects under gmina programmes for environmental protection. The act on promotion of employment and labour market institutions indicates that the tasks of voivodeship self-governments regarding labour market policy include: 1) determination and coordination of the regional labour market policy and human resources development policy in reference to the national labour market policy by preparing and implementing regional action plan for employment; The tasks of poviat s self-governments regarding labour market policy include: 87

88 1) development and implementation of the programme for employment promotion and local labour market activation, which represents a part of the poviat strategy for the resolution of social problem, which is referred to in separate provisions; 19) development and implementation of individual action plans; 20) implementation of projects concerning the promotion of employment, including counteracting unemployment, mitigating the effects of unemployment and occupational activation of the unemployed, with the projects resulting from the Operational Programmes co-financed by the European Social Fund and Labour Fund; 21) organisation and implementation of special programmes; 24) initiation and implementation of pilot programmes. The act on healthcare benefits financed by public funds imposes on gminas, poviats and voivodeships an obligation to develop healthcare programmes resulting from identified health problems and health condition of the population of relevant gminas, poviats and voivodeships. The act on protection and conservation of monuments imposes the obligation on the Voivodeship or Poviat boards or a Voit (Mayor, President of City) to draw up a voivodeship, poviat or gmina programme for conservation of monuments for a 4- year period. The act on social assistance The gmina s obligatory responsibilities include: 1) development and implementation of the gmina strategy for resolution of social problems with particular regard to social assistance programmes, prevention and resolution of alcohol-related problems and other problems, whose goal is the integration of persons and families from high risk groups; The poviat s responsibilities include: 1) development and implementation of the poviat strategy for resolution of social problems with particular regard to social assistance programmes, support for the disabled and others, whose goal is the integration of persons and families from high risk groups after consultation with territorially competent gminas; The voivodeship s responsibilities include: 1) development, update and implementation of the voivodeship strategy on social policy that constitutes an integral part of the voivodeship s development strategy and that includes without limitation the programmes: for counteracting social exclusion, equal opportunities for the disabled, social assistance, prevention and resolution of alcohol-related problems, cooperation with non-governmental organisations after consultation with poviats; 3) identification of the causes of poverty and development of regional programmes of social assistance that support local governments in their operations aimed at the prevention of this phenomenon; 88

89 4 Urban dimension of sectoral public policies At present, 42 valid development strategies/polices exist in Poland at the national level. None of them directly relates to urban development their provisions in most cases do not separate any objectives or measures targeted at cities. They concern a given sectoral issue at the background of the entire country. However, some of them may have or do have an impact on urban development. The most important conditions of conducting certain selected policies are presented below their objectives, instruments and results. This will be helpful in assessing the degree to which they consider the urban development needs or their direct effects on its development Higher education Introduction Answers to the questions from 23 to 27 of the II part of the questionnaire. In Poland the Ministry of National Education (MNE) and the Ministry of Science and Higher Education (MSHE) are responsible for the entire education system. On the local level their tasks are implemented by poviats and gminas. After the introduction of the national system reform, the competences of public administration bodies within the scope of education changed - individual units of territorial self-government (voivodeships, poviats and gminas) took over the scope of responsibilities concerning education, which until then belonged to the government administration bodies. Since 1 January 1999 all schools and education institutions are run by territorial self-government units, and the Minister of National Education and education superintendents still carry out the methodological supervision over schools. The education policy of self-government units consists, above all, in establishing and reconstructing a network of schools and education institutions of regional (teachers' training colleges, teachers in-service training centres, pedagogical libraries) and local (upper-secondary schools and special schools, psychological and pedagogical counselling centres, care and educational centres and life-long learning centres in the poviats) nature. The self-government units also have to exercise impact on the quality of education in a self-governmental school by providing support to the inservice training for teachers and the managerial staff; self-governments also obtained the right to set up education councils, which have significant opinion-forming competences. Territorial self-government units also have a direct impact on the financial condition of the schools i.e. their income provides for a statutory guarantee of receiving financial resources for performance of educational tasks. In line with the reform documents the tasks of self-governments of voivodeships cover, inter alia: formulation of the regional education policy; 89

90 establishment of different forms of cooperation with higher education institutions (the self-government of the voivodeship is entitled to provide financial support to higher education institutions and order specific scientific curricula or staff training curricula, it can also apply for establishment of a national vocational higher education institution on its territory); restructuring post-upper secondary education, especially gradual conversion of teachers' training colleges; adapting the in-service training system to the specificity and needs of the regions, running teachers in-service training centres; performance of the supervisory body functions in respect to its subordinate schools and education institutions. Higher education functioning and funding 15 The legal basis for functioning and funding of the higher education institutions from the public resources is provided for in the following legal acts: - The Constitution by way of Article 70(2) introduces the principle of free education in public education institutions (which implies that the costs of this education shall be funded from the budgetary resources), and Article 70(4) imposes on the public authorities the obligation to establish and provide support to the individual systems of financial and organizational assistance provided to pupils and students; - Act on higher education of 27 July 2005 Higher Education Law (Dz. U., No. 164, item 1365, as amended) (HEL) and the Act on principles of financing science which regulate the issues related to public expenditure incurred on financing of the basic functions of education institutions; - Acts establishing different public institutions and determining the principles of managing public resources entrusted to these institutions; - Act on principles of development policy making and legal acts issued on its basis, which set up Operational Programmes and the rules of their implementation. Nearly 460 higher education institutions, both public and non-public, operate in Poland. Public higher education institutions are established by way of an Act (academic education institutions) and ordinances of the Council of Ministers (vocational education institutions), and non-public higher education institutions are set up on the request of natural or legal persons after the approval of the MSHE. At the level of higher education the private sector covers academic education institutions run and managed by legal and natural persons, which received 15 This Sub-chapter was developed on the basis of Diagnosis of the condition of higher education in Poland (Diagnoza stanu szkolnictwa wyŝszego w Polsce), Partial report drawn up by Ernst & Young Business Advisory and the Gdańsk Institute for Market Economics, November

91 permission to award academic qualifications equivalent to those awarded by the State. Higher education institutions gradually obtained their autonomy. The first stage of this process concerned independence within the scope of administration, finances and accountancy. From 1994 onwards, State and private higher education institutions have their own budgets. Within the framework of their autonomy the higher education institutions can decide on their own discretion on organisation of classes, which have to be conducted in respect to implementation of the assumed objectives. Detailed organisation and structure of classes is described in a document issued by the rector, which is then approved by the ministry. Minister competent for higher education supervises the compliance of the activities undertaken by the higher education institutions with the rules of law, and correctness of disbursement of the public resources. Minister competent for higher education may demand information and explanations from the bodies or the funder of a non-public higher education institution, and the Minister can also control the operation of such an institution. From 2002 onwards, the public and non-public, academic and vocational higher education institutions are assessed by the State Accreditation Committee (SAC) appointed under the Act of It is a statutory body of higher education working for the quality of education. The tasks of the State Accreditation Committee consist in presenting to the Minister competent for higher education opinions and applications, which in particular relate to: the establishment of a higher education institution; awarding to a higher education institution the entitlements to provide degree programmes in a given direction and on a given level of education; setting up by a higher education institution of a branch or off-campus faculty; assessment of the education carried out at a given faculty; observance of the conditions of providing degree programmes. The grade awarded in the assessment can be: exceptional (issued for 8 years), positive (for 6 years), positive for a shorter period (usually two or three years), conditional or negative. The SAC resolution on conditional or negative grade issued for a shorter period covers a set of recommendations along with deadlines for their implementation, which are necessary to keep the entitlements to provide degree programmes; while negative grade means that the entitlements to provide degree programmes in a given direction and on a given level of education are withdrawn or suspended. Decisions within this scope are taken by the competent minister. The procedure of planning State budget income and expenditure and the manner of State budget execution is defined in the Act on public finance. This Act also determines the classification of State budget expenditure, including the expenditure incurred on purposes related to the operation of higher education. Article 15(1) of HEL determines that Pursuant to the rules laid down in this Act, public authorities shall provide public higher education institutions with funding necessary for the performance of their tasks, and shall provide support to non-public higher education institutions in so far as, and in the forms, specified in this Act. 91

92 The aforementioned scope of subsidies awarded to the public education institutions (excluding resources for scientific research, which are granted in line with the rules set out in the Act on principles of financing science) was defined in Article 94 of HEL. This article provides for awarding subsidies to public higher education institutions for: - the tasks related to the teaching of full-time students and full-time doctoral students, and the training of research staff, as well as to the maintenance of the higher education institution, including renovation work; - co-financing or financing of investment implementation costs, including costs of investments implemented with the share of the State budget resources, resources from State earmarked funds or from foreign sources awarded under the voivodeship contracts; - the tasks related to the teaching and medical rehabilitation of disabled students; - material assistance to students and doctoral students this subsidy can be also used by the school for co-financing of renovation of students dormitories and canteens. There is also the possibility to grant the subsidy to specific tasks implemented by certain higher education institutions (military, artistic, medical, maritime, etc.) The Minister granting the subsidy for educational activity may allocate additional funds for degree programmes provided in specific fields of study, macro-fields of study or as interdisciplinary programmes to a public higher education institution where degree programmes are of a particularly high quality as confirmed by an assessment of the SAC. The total amount of resources allocated for such subsidies may not exceed 0.5% of all resources for the educational subsidy. In 2009 this amount corresponded under the MSHE budget to approx. PLN 35 million for all supervised public higher education institutions. The HEL also covers a provision that A higher education institution may be granted other funds from the State budget and budgets of territorial self-government units or their associations. The wording of this provision implies that these resources can be directed both at the public and non-public higher education institutions. Therefore, non-public higher education institutions have a limited access to the budgetary resources, and the HEL provides for the following possibilities of financing non-public schools: - non-public higher education institution is entitled to a subsidy awarded for providing material assistance to students and doctoral students, however, it cannot allocate any part of this subsidy to renovation of the social facilities; - non-public higher education institution meeting the conditions defined by the Minister competent for higher education can be awarded a subsidy for covering some part of payments made by the full-time students and full-time doctoral students, as well as subject to minor exceptions subsidies to special tasks that are awarded to public higher education institutions if these tasks are not related to conducting full-time studies. 92

93 According to HEL a higher education institution has legal personality and the possibility to take part in the economic transactions. Moreover, it has the status of non-profit institution and independence as regards management of possessed financial resources. Hence, in general, the public resources are not the only source of income for a higher education institution but they are provided with the view to cofinance only some of its tasks. However, the fact remains that for public higher education institutions the public resources constitute the greatest part of their income. The subsidies provided form the budgets of self-government units are legally acceptable but today they account for a minimal part of the income of higher education institutions. The provision on funding higher education institutions by territorial self-government units was introduced due to the fact that higher vocational schools can be established on the request of the Sejmik of the Voivodeship submitted in agreement with the Minister competent for higher education. This allowed for a specific form of co-management of a vocational school. The state government and self-government administration is interested in the issue of ensuring financial assistance to students and doctoral students (subsidies for tasks related to non-repayable material assistance to students and doctoral students within the scope of statutory defined forms of material assistance). As of 16 December 2009 under the Act of 5 November 2009 on amending the Act Higher Education Law (Dz. U. No. 202, item 1553) a substantive framework was introduced for awarding material assistance to students and doctoral students by territorial self-government units (Article 173a and 199a of the Act), as well as for providing scholarships for learning achievements to students and study grants to doctoral students by natural and legal persons who fail to be State or self-government legal persons (Article 173b and 199b of the Act). The provision of material assistance to students and doctoral students from the budgets of territorial self-government units are exempted from personal income tax on the basis of Article 21(1) point 40 of the Act on personal income tax. From 1999 onwards, Polish students can apply for low-interest credits, which are to enable higher education to less wealthy persons. Bank Gospodarstwa Krajowego (BGK) 16 provides interest rate subsidies to student credits incurred in five commercial banks and it covers the effects of partial amortization of credits. For the purpose BGK uses the resources available under the Student Loan and Credit Fund 16 Bank Gospodarstwa Krajowego (BGK) is the only State bank in Poland. Its status is defined in a special Act of 17 March 2003 and by the Act of 23 August 2001 Banking Law. The key task of the BGK covers supporting the government socio-economic programmes and programmes of the local self-governments and regional development. BGK can: service the established, entrusted or transferred funds, service the accounts of the State budget, territorial self-government units budgets and legal persons performing public tasks, service export transactions with the use of export support instruments, perform other activities implemented with the use of public resources, defined in agreements concluded with government administration bodies and it can perform the activities determined by the Banking Law. 93

94 The credit is available to students of public and non-public higher education institutions, which started their education before 25 years of age, and to doctoral students. The credit is granted for the period of study, but not longer than 6 years and it is paid in monthly instalments (maximum 10 instalments during a year). The amount of one instalment totals to PLN 600 or PLN 400. A preferential condition for persons applying for the credit is low income in the family, which in 2008 did not exceed PLN 2.5 thousand per person. It is also important to present relevant securities, without which a commercial bank will not grant a credit. Bank Gospodarstwa Krajowego can secure the credit for the poorest student, whose income per person in a family do not exceed 40% of the determined income threshold in 2008 BGK covered with its security borrowers from families, whose income did not exceed PLN 1,000 per person. From the perspective of eleven years of the system operation it is difficult to state that the system enjoys great popularity among students. In 1999 credits were granted to 99.6 thousand of students, up to 2007 the number of serviced credits increased to thousand, but since then there was a gradual decrease in this figure to thousand in Full-time students from public higher education institutions accounted for the most students that were granted the credit in the 2008/2009 academic year (the greatest number of credits was awarded to students from the following directions of studies: management and marketing, pedagogy, philology, law and administration). In 2006 the Polish expenditure on higher education amounted to PLN 15 billion, i.e. approx 1.4% of the GDP, out of this amount public expenditure constituted approx. PLN 10 billion (1.0% of GDP) and private expenditure less than PLN 5 billion (0.4% of GDP). International comparison shows that Poland spends on higher education a similar part of GDP as average OECD countries (1.5% in 2006). On the other hand, the share of private expenditure in the total expenditure on higher education in Poland is greater than the average - it is shaped at the level of approx. 30%, i.e. it is one of the highest levels of this relation in Europe. The share of the budget allocation entitled "higher education" in the State budget expenditure in increased from 2.4% to 4.7% in In the subsequent years this share started to decrease in 2006 it amounted to 4.5%, in 2007 to 4.2% and in 2008 it reached the level of 4.0%. However, it should be remembered that the drop in the share of higher education in the State budget expenditure took place under the conditions of stabilised number of students and rapid increase in the global amount of State budget expenditure following both from good economic situation, as well as from reinforcing the State budget with significant resources from the EU. Despite the gradual decrease in the share of higher education in the State budget expenditure, the expenditure on higher education in absolute amounts continue to increase and in 2008 they were by almost two times higher (after considering the price changes) than in 1995 and by almost 14% higher than in 2005 (CSO 2009). The share of the budget allocation entitled science, i.e. expenditure on R&D sector, in the State budget expenditure for the past several years was stabilised at the level of approx %, and in the last few years it amounted to approx. 1.5% (in %) (CSO 2009). 94

95 Spatial infrastructure of higher education institutions 17 The great investment boom in higher education is related to the EU programmes. Science and educational facilities will be constructed within the framework of the Operational Programme Infrastructure and Environment, especially, for mathematical and life sciences faculties, as well as technical faculties. These facilities will be situated in Warsaw, Gdańsk, Białystok, Poznań, Katowice, Łódź and Wrocław. Their overall value (in line with the project) will amount to more than PLN 2 billion. New facilities will be also constructed under the Operational Programme Innovative Economy, as well as regional resources. During the last twenty years there was a qualitative improvement in the housing conditions as regards public higher education institutions. This resulted from transferring to the higher education institutions many buildings that belonged to the institutions of the past political system, as well as from undertaking new investments associated in the past few years with the EU subsidies. The higher education institutions took over, for example, the following types of facilities: - Prestige architecture facilities. Taking over this type of facilities by the higher education institutions not only improved their buildings resources but also integrated the higher education institutions into a specific city space. Moreover, attractive buildings are an attribute of prestige. It is also beneficial for agglomeration operation as the presence of students enlivens the city. A large group of facilities taken over by the higher education institutions are the buildings of former Voivodeship Committees of Polish United Workers' Party (Polska Zjednoczona Partia Robotnicza - PZPR). These facilities, in general, were not adapted to the new function, and the adaptation was not always a success within the scope of utility or aesthetics of the building. - Post-industrial and post-military facilities. As a result of the phenomenon of mass bankruptcy of industrial plants, which followed from changes in the economic system, centrally-planned liquidation of numerous industrial plants and reduction of the army the industry and military sectors left many buildings. A vast majority of these was taken over by higher education. On many occasions, these were facilities situated in the so-called second-best districts of cities and hence they were available at lower prices. This manner of obtaining buildings resources was especially often practiced by nonpublic institutions. The buildings of former barracks or factories were adapted to the new functions with the use of the simplest means, nonetheless, this still required a large-scale reconstruction. It should be emphasised that when a higher education institution appears in a given district its prestige grows. Sometimes the operation of the higher education institution involves cooperation with local communities. For example, the Warsaw School of Social Sciences and Humanities situated in the Warsaw Grochów district established an association "Common Playground" 17 This Sub-chapter was developed on the basis of Diagnosis of the condition of higher education in Poland (Diagnoza stanu szkolnictwa wyŝszego w Polsce), Partial report drawn up by Ernst & Young Business Advisory and the Gdańsk Institute for Market Economics, November 2009 (pp ) 95

96 (Wspólne Podwórko), which works with children and adolescents from the so-called disadvantaged groups in society. Therefore, it may be stated that this situation of the higher education institution makes it possible for the institution to fulfil its social mission. Already before 1989 it was decided that separate campuses will be established in some cities, in general at their outskirts of that time. After 1989 new facilities were constructed in many of them. Unfortunately, it is a very common practice that new buildings in campuses are constructed on a plot separated for subsequent investments without paying greater attention to the significance of the spatial and functional concept of the campus as a whole. Moreover, completely new campuses were created after 1989 (e.g. Jagiellonian University campus in Pychowice district in Kraków, campus of the Andrzej Frycz Modrzewski Krakow University). The best known higher education facility constructed after 1989 is the University of Warsaw Library in Warsaw. This Library is classified as one of the most important works of Polish architecture of that time and, mostly, because of the garden at its rooftop, it is one of the favourite buildings of Warsaw residents and tourists. The construction of the Library became the driving force for the development of the previously sleepy Powiśle district. Today it is full of bookshops, cafes and recreational facilities, and luxurious residential buildings are constructed around it. However, experts point to the fact that the basic problem is insufficient spatial planning, both at the level of cities in which the higher education institutions are situated (lack of local plans), as well as of the institutions themselves, which manage their space in a wasteful manner and fail to foresee the future maintenance costs when building new academic complexes. Relationships with the surrounding (regional and urban) Pursuant to Article 13 of the Higher Education Law one of the basic tasks of a higher education institution covers conducting activities benefiting local and regional communities. The State Schools of Higher Vocational Education (Państwowe WyŜsze Szkoły Zawodowe - PWSZ) play a special role within this scope, as their mission covers supporting social, technological and cultural development of the region in cooperation with all political, social and economic powers, which have similar tasks inscribed in their activity. One of the measures aiming at fulfilment of this mission is providing high quality education to students in specialties providing a good chance of getting a job or start one s own business, as well as creating lifelong learning opportunities to all persons interested in improving their vocational qualifications. Higher education institutions apart from the research and didactic functions also fulfil significant economic and culture-forming functions. In many voivodeship cities, such as Poznań, Toruń or Lublin, the services sector develops dynamically as a result of higher education institutions. Nicolaus Copernicus University in Toruń is the greatest employer in the entire Kujawsko-Pomorskie Voivodeship (5 thousand employees); nearly 40 thousand students attend studies in Toruń which has 200 thousand inhabitants. In most Polish cities higher education institutions indirectly employ hundreds of thousands of persons working in the services sector. 96

97 High innovativeness and knowledge-based economy cannot function without employees with appropriate qualifications and competences. In order to adapt the fields of education to the market needs it is necessary to elaborate the vision of the future, which should form the basis for development of study curricula and the higher education institutions themselves. A measure which is integrated into the aforementioned objectives is a project entitled Regional Foresight project for universities of Warsaw and Mazovia; Academic Mazovia 2030 implemented under the Innovative Economy Operational Programme. It was initiated on 30 October 2009 by six higher education institutions from Warsaw. The project implementation is aimed at identification of the strategic fields of education and models of evolution for higher education institutions up to 2030 for Warsaw and the Mazovia region. The project aims at determining the directions of development for higher education institutions in Warsaw and the Mazovia region within the scope of faculties, organisation and operation model of higher education institutions, as well as the model of the graduate of such an institution on the basis of analysis of regional development scenarios and changes in the Polish economy up to The project implementation will make it possible to select the key paths of conduct facilitating cooperation between higher education institutions and the economy sector. This will influence the process of adapting the educational offer of higher education institutions to the labour market needs, which may translate into an increase in the staff resources of modern economy in the Mazovia region. The Act on higher education allows for the functioning of a council collective body, in higher education institution, which may be composed of the representatives of the following entities: State authorities, territorial self-government bodies and selfgovernment bodies representing professions, scientific institutions and associations, employers' organizations, entrepreneurs organisations and financial institutions (Article 60, Article 63). Higher education institutions cooperate with local authorities, cultural institutions and entrepreneurs, for example, within the scope of elaboration of urban development concepts, organisation of trainings for students, implementation of specialist courses and post-graduate studies. Higher education institutions can run academic business incubators and technology transfer centres in order to better use the intellectual and technical potential of higher education institutions and transfer the results of scientific works to the economy. The technology transfer centre is established with the view to sell or transfer free of charge the results of development research and works to the economy. Academic business incubators and technology transfer centres can operate as: common units for the entire higher education institution, commercial companies or foundations. The tasks of the academic business incubators cover popularisation of and support to entrepreneurship in the academic environment and economic surrounding, as well as making it possible for students, graduates and employees of a higher education institution to carry out their own economic activity in the rooms of the institution. Study curricula are established in compliance with the education standards for all directions of studies set out in the Ordinance of the Minister of Science and Higher 97

98 Education of 12 July These standards enable flexible adaptation of the education content to the developments within the scope of knowledge and scientific research and they promote entrepreneurship and innovation. Establishment of new directions and specialties on the basis of educational standards should correspond to the economic needs. Apart from the methodological content the education standards also cover, as an equally significant element, the obligation to undergo vocational trainings The adaptation of curricula to the needs of the industry takes place as a result of using the resources available under the Operational Programme Human Capital, e.g.: Measure 4.1 Strengthening and development of didactic potential of universities and increasing the number of graduates from faculties of key importance for knowledge-based economy, Sub-measure Strengthening and development of didactic potential of universities Co-financing is awarded to projects covering higher education institution development programmes. These projects are to contribute to the establishment of the development potential of the institution by extension and enhancement of their education offer and improvement in the quality of higher level education. The support within the framework of development programmes can cover, inter alia, the following measures: - preparation, opening and implementation of new faculties and adaptation of the curricula of the existing faculties to the labour market needs and the needs of the knowledge-based economy; - preparation, opening and implementation of new directions of post-graduate studies; - participation of higher education in lifelong learning extension of the educational offer of the higher education institutions with the programmes targeted at persons from outside of the academic circles under the call for proposals projects, inter alia, through organisation by the institution (using their own staff potential) of the specialist courses and trainings, whose objective scope reflects the labour market needs and the needs of the knowledge-based economy; - cooperation between higher education institutions and employers within the scope of strengthening practical elements of education (students' internships and trainings) and increasing the engagement of employers in the curricula execution. Planning reforms of higher education major challenges for the future 18 On 28 October 2009 the government of the Republic of Poland adopted the guidelines to the amended Higher Education Law and the Act on scientific degrees and scientific title and on degrees and title within the scope of art. 18 Information from the official website of the Ministry of Science and Higher Education: 98

99 This guidelines to the amended Act significantly support the development policy of higher education institutions, which are the driving forces of the economy in many Polish cities. The new legal and financial mechanisms will strengthen the role of the higher education institution and they will integrate them into the group of entities that form and implement the regional policy. Following better cooperation of public policy actors and active role of higher education institutions it is possible to create synergy, which will benefit the economy of the entire region. The change in the higher education system under this aspect will be implemented by means of: (a) differentiating higher education institutions according to the criterion of the actual character and actual quality of the research and didactic works carried out by them and not in line with their legal status, which identifies three categories: elite higher education institutions that are able to compete with the best institutions in Europe, higher education institutions that are very well integrated into the socioeconomic development of the region and the country, as well as schools of higher vocational education carrying out didactic work that fulfils local needs; (b) increasing the autonomy of higher education institutions within the scope of identification and implementation of their mission (including, shaping the didactic offer and management of tangible and intangible assets of the higher education institutions). Subjective financing of higher education institutions will be supported with the taskbased financing carried out under the call for proposals mode providing resources to the integration of the higher education institution with the regional labour market, economic environment and social surrounding, as well as delivery of scientific and research tasks specific for the region. Diversification of higher education institutions through differentiation of financing mechanisms enforces the institutions to seek for specific competitive advantages and unique resources which often follow from geographical localisation or socio-economic surrounding. The higher education institutions will make specialisations and find their niches, which will help them to establish their competitive advantage. Financing higher education institutions is to be based on effects of scientific works. The largest sums will go to the best institutions, and more and more resources will be divided under calls for proposals. A special fund promoting quality will be set up, which will provide financing to, inter alia, faculties of higher education institutions, research institutes and units that will obtain the status of the National Leading Scientific Centre (Krajowy Naukowy Ośrodek Wiodący (KNOW) or an exceptional grade under the assessment of the State Accreditation Committee. In 2011 four KNOW centres will be selected under a call for proposals and they will receive additional amount of over PLN 10 million for 5 years. The KNOW status will give priority as regards application for budgetary and EU resources for financing investments and research equipment. It will be possible to award the KNOW status to both faculties of public and non-public higher education institutions. Each student of a State higher education institution will receive an envelope of points, which will enable him/her to study free of charge at one direction of studies. When all points are used up, the next studies are payable. Only the best students will 99

100 be able to simultaneously study at two faculties without payment. This will cover approx. 10% of students from a given faculty, i.e. the same figure as today. Studying at two faculties by persons which are not always prepared to it blocks places for others who are forced to learn in paid higher education institutions. The limit of points does not cover the students of inter-departmental studies. The rules of awarding material assistance to students and doctoral students will be changed. 75% of all resources will be allocated to material assistance. Integrating a higher education institution into the delivery of regional policy will take place at different levels. The amendment of the Act will introduce, for example, the possibility to engage the practitioners representing economic, public and social organizations into the didactic process carried out on vocational profile directions within the scope of: a) creating study curricula, b) delivery of the education process, c) assessment of its effects. A change within the scope of managing higher education institutions will consist in obligatory establishment of councils in State Schools of Higher Vocational Education (optional in other higher education institutions), which members will cover, inter alia, the representatives of self-government authorities and regional business environments. The council is to fulfil strategic functions, i.e. pass strategies of the higher education institution on the basis of their compliance with the national and regional development policy as well as to monitor its implementation. In the State Schools of Higher Vocational Education the participation of regional authorities and employers will, therefore, be more direct because their representatives will be the members of the council, which was awarded competences of strategic nature. This will make it possible to create a better didactic offer for these higher education institutions considering the specificity of the regional labour market. It will also facilitate cooperation with the regional employers. The community of the region having an actual impact on the fate of the higher education institution will also increase its scope of responsibilities for the delivery of regional development policy. The system of didactic quality of higher education institutions, especially at vocational profile faculties, will cover the criteria making it possible to measure the degree to which the institution relates to the needs of the socio-economic surrounding. The State Accreditation Committee awards higher grades to higher education institutions implementing scientific and research tasks specific for the region by integrating themselves with the regional labour market, economic environment and social surrounding. Higher education institutions will be integrated into the regional policy given the specific nature of socio-economic policy of the region. This will be achieved through the establishment of favourable institutional mechanisms in the form of regional consolidation for the purpose of setting up innovation centres and scientific and industrial consortia (within the meaning of the Act on principles of financing science covering higher education institutions of various ranks and types, as well as business environment institutions targeted at the implementation of regional development and innovation strategies). Scientific and industrial consortia will undertake joint research and development works for the benefit of the economy or investments for the purpose of creating knowledge-based regions, in which, on the one hand, the 100 1

101 market will have an impact on the directions of research and education and, on the other, the higher education institutions will take part in determining the methods for improvement of the labour market. The amendment will also introduce the possibility to provide degree programmes outside of the seat of the higher education institution, within the metropolitan area referred to in the Act of 27 March 2003 on spatial planning and spatial development (Dz. U. No. 80, item 717, as amended) without the need for the higher education institution to establish an off-campus organizational unit. The decision on dropping the off-campus didactic centres will support small regional higher education institutions which have only started to build up their position. Smaller higher education institutions will invest more in the development of infrastructure and academic staff without having to fear that they will be forced out by higher education institutions targeted, primarily, at deriving financial benefits from their activity. For students attending degree programmes in smaller towns at small higher education institutions this implies better conditions of education and better access to academic staff. Institutions, whose major function covers education of staff for knowledge-based economy, constitute a significant element of the higher education system. Therefore, appropriate relationships between didactic activity and the needs of the labour market, as well as regional and local needs regarding the performance of original research and development works is of key significance within the scope. In order to strengthen this relationship a possibility was introduced which enables to obtain joint education with the employer as well as education on the commission of the employer. The possibilities provided by the integration of the practitioners from the economic, public and social organisations into the vocational profile didactic process should also be applied. These practitioners could be integrated into the establishment of study curricula, education process and assessment of its effects. As a result, master's theses and doctoral dissertations will have the possibility to become parts of actual research projects commissioned by regional and local units from the surrounding of the higher education institutions. The employers will participate in the establishment and evaluation of education effects in individual fields of education introduced together with the National Qualification Framework. The proposed solutions also aim at creating more favourable conditions for establishment of innovation centres operating, mainly, at the regional level. Such centres cooperating with higher education institutions, science and technology parks, technology incubators or advanced technology centres will together create conditions for development of the most innovative enterprises. At present, the amended Act undergoes the social consultation process. expected that it will be adopted in the first half of Structural funds for science and higher education It is The objectives of the Cohesion Policy for are closely related to the implementation of the key priorities of the renewed Lisbon Strategy. These priorities cover support to innovation, entrepreneurship and growth of knowledge-based 101 1

102 economy through skills within the scope of research and innovation together with the new ITC techniques, as well as support to investments in human capital. The implementation of the aforementioned objectives of the Cohesion Policy in Poland was included in the National Cohesion Strategy (National Strategic Reference Framework ) NSRF. The strategic objective of NSRF is to create conditions for the improvement of competitiveness of the Polish economy based on knowledge and entrepreneurship, ensuring the increase of employment and the higher level of social, economic and spatial cohesion. Its detailed objectives cover, inter alia, the following: - improvement of the human capital and enhancing social cohesion (Objective 2); - improving the competitiveness and innovativeness of enterprises, including in particular the manufacturing sector with high added value and development of the services sector (Objective 4); The Ministry of Science and Higher Education also takes part in the implementation of these objectives as the Intermediate Body for three Operational Programmes managed by the MRD. In the total amount of resources committed to the implementation of the National Cohesion Strategy, which total approx. EUR 85.6 billion (EUR 67.3 billion comes from the EU budget), EUR 4.15 billion is allocated to science and higher education under the programmes for which the MSHE is the Intermediate Body (EUR 3.53 billion from the EU budget). Under the points A, B and C below these programmes and amounts allocated to them were described (total EU resources and the public contribution): A. Operational Programme Innovative Economy (OPIE) Priority I. Research and development of modern technologies EUR 1,299,270,589 Measure 1.1. Support for scientific research for establishment of a knowledgebased economy EUR 465,000, Research projects using the foresight method Strategic programmes of scientific research and development work System projects Measure 1.2. Improvement of human potential of science EUR 70,037,029 - VENTURES Programme - TEAM Programme - Programme for International Doctoral Projects (IDP) - WELCOME Programme Measure 1.3. Support for R&D projects for entrepreneurs carried out by scientific entities EUR 373,880, Development projects (Thematic group Techno, Thematic group Info, Thematic group Bio) 102 1

103 1.3.2 Support for the protection of industrial property generated in scientific entities as a result of R&D work Measure 1.4. Support for goal-oriented projects EUR 390,352,176 - Small and medium-sized enterprises - Large enterprises Priority II. R&D infrastructure EUR 1,299,270,589 Measure 2.1. Development of high research potential centres EUR 691,423,530 Measure 2.2. Support for development of research infrastructure of scientific entities EUR 349,117,647 Measure 2.3. Investments connected with development of IT infrastructure of science EUR 258,729, Projects connected with development of IT infrastructure of science Projects in regard of the development of digitalised information resources for science Projects in regard of the development of advanced applications and teleinformation services The objective of the Priority Axis I Research and development of modern technologies of OPIE is to increase the role of the science sector in the economy through R&D works in the directions recognised as priorities for the socio-economic development of the country. Financing under Priority Axis I covers forecasting the research directions, which can have the greatest impact on the pace of socio-economic development of the country. This forecasting will be carried out with the use of the highly popular in other countries foresight method, which major assumption covers engagement of all stakeholders (entrepreneurs, representatives of non-governmental organisations, politicians, media people, scientists) in public debate about the most important future needs of the society and the economy. Foresight will be carried out at the national level (identification of research directions significant for the entire country), as well as at the level of individual regions and branches of the economy. The Priority Axis covers support to scientific research and development works for the establishment of the knowledge-based economy, which are carried out by the scientific and industrial consortia. This support will be awarded, inter alia, to largescale multi and cross-disciplinary research projects. This support is also granted to the rejuvenating of the human resources of science by integrating students and doctoral students into the implementation of research projects under key areas for economic development of the country, as well as conducting scientific research forming the grounds for doctoral dissertations. It can be expected that as a result of financing research projects carried out in Polish scientific entities by leading scientists from abroad and due to providing support to the implementation of international doctoral studies the good practices will be transferred to Poland

104 Moreover, research projects will be supported, whose results are aimed at direct application and responding to the needs of specific sectors of the economy or sectors of particular social importance. This Priority Axis also foresees support to transferring the results of scientific research and development works to the economy by co-financing the costs of obtaining protection of industrial property generated in scientific entities that have their seat in Poland. The delivery of this Priority Axis will be focused on providing support to the entrepreneurs investments within the scope of R&D works by co-financing of projects that cover technical, technological or organisational undertakings (applied industrial research and development works) carried out by enterprises, groups of enterprises or other entities that are able to directly apply the results of projects in practice. Implementation of the results of R&D activity conducted by the entrepreneurs under the following Priority Axis will be co-financed within the framework of the Priority Axis IV. Moreover, in order to support the commercialisation of the results of R&D work each of the projects implemented under this Priority Axis can include a component promoting the given project and its results. The objective of the Priority Axis II R&D infrastructure of the OPIE is to increase competitiveness of Polish science due to consolidation and modernisation of scientific research and IT infrastructure of the best scientific entities operating in Poland. The Priority Axis II R&D infrastructure offers support to investments in scientific and research equipment and, if necessary, in buildings and facilities delivered by centres of high research potential. From the resources allocated to Priority Axis II it is expected that a significant amount will be targeted at the above-mentioned infrastructure investments in several up to several dozen large centres run by scientific and industrial consortia. The support will be also granted to projects implemented within the scope of Large Facilities of Research Infrastructure. Moreover, this Priority Axis foresees the co-financing for restructurisation processes consolidating scientific entities by transferring or constructing joint modern research infrastructure. Other form of support offered under this Priority includes cofinancing of the necessary investments related to the maintenance and development of IT infrastructure of science. It also plans to develop the digitalised information resources for science, especially, to establish and keep a database containing information on the results of research projects and conditions of accessing them by entrepreneurs. Priority as regards co-financing will be granted to projects, which aim at ensuring infrastructure for the delivery of scientific research and development works within the thematic areas indicated in the description of the Priority Axis I. Taking into account the needs assumed within the scope of training for employers handling the new scientific and research equipment, it will be possible for the infrastructure projects to cover a component that enables acquisition of relevant skills within this field. The aforementioned measures will be complemented with the possibility to provide support to each of the projects implemented under this Priority 104 1

105 also within the scope of its promotion, as well as within the scope of promoting the results of the R&D works achieved as a result of the co-financed infrastructure. B. OP Infrastructure and Environment (OPI&E) The major objective of the Programme is to improve Poland s and its regions investment attractiveness through the development of technical infrastructure at the same time protecting and improving the condition of environment, health, maintaining cultural identity and developing territorial cohesion. Priority XIII Infrastructure of higher education EUR 588,235,294 Detailed objectives: - modernisation of the higher education institutions infrastructure and increasing the rate of number of students on priority faculties of studies, - improving quality of education through the use of information and communication technologies (ICT) The Beneficiaries of Priority 13 cover: Higher education institutions, which: - were included on the indicative list of individual projects; - are situated in leading academic centres of supra-regional nature of impact; - offer education at the so-called priority faculties; - plan comprehensive development of IT infrastructure - fulfil the requirements related to implementing the recommendations of the Bologna process. C. Operational Programme Human Capital (OPHC) Priority IV Tertiary education and science EUR 960,366,839 Measure 4.1 Strengthening and development of didactic potential of universities and increasing the number of graduates from faculties of key importance for knowledge-based economy EUR 898,866,839 Measure 4.2. Development of R&D system staff qualifications and improving the awareness of the role of science in economic growth EUR 61,500,000 Priority IV is focused on improving the quality of operation of higher education institutions both by creating favourable system and organisational conditions for efficient management of higher education, as well as by producing development stimuli that have an impact on the availability and development of faculties, which have the greatest significance for the knowledge-based economy. Moreover, projects on development of higher education are also included in the OP Development of Eastern Poland (OP DEP). It aims at Hastening the pace of social and economic development in Eastern Poland pursuant to the sustainable development principle. Project of key significance for the socio-economic 105 1

106 development of five voivodeships of Eastern Poland are implemented under the OP DEP. The financed projects cover, primarily, investments within the scope of infrastructure supporting scientific and research activity, as well as providing for modernisation of municipal or regional communication systems, and it will also cover projects that increase the investment and touristic attractiveness of these area. The Priority Axis I: Modern Economy covered a Measure I.1. Infrastructure of universities. This Measure foresees support to projects regarding didactic and scientific and research infrastructure related to the higher level education process, which are implemented by higher education institutions providing degree programmes and/or conducting research within the area of technical sciences, mathematics and life sciences, as well as other areas of key significance for the socioeconomic development of the regions. The measure covers assistance to modernisation of the staff training conditions for the needs of enterprises existing or being established in Eastern Poland. The support will be awarded to infrastructure projects of higher education institutions which consist, inter alia, in construction and other building works and providing scientific and research equipment to didactic facilities, laboratories, computer labs, libraries, as well as in construction and other building works related to the infrastructure of the higher education institutions (dormitories, administrative facilities), as far as they constitute an element of projects, which in majority cover didactic facilities. The budget of the Measure amounts to EUR million, including EUR million from the European Regional Development Fund and EUR million from the national public resources. At the current stage of the Operational Programme Development of Eastern Poland implementation the envelope of financial resources allocated to Measure I.1. Infrastructure of universities of OP DEP, has been exhausted. Projects funded within its framework were listed below Projects implemented in Warmińsko Mazurskie Voivodeship Extension and modernisation of a set of education and research laboratories of technology, quality and safety of food and provision of equipment to them Enhancing the infrastructure and equipment of the technical and IT sciences laboratories Extension and modernisation of the didactic infrastructure of the State School of Higher Vocational Education in Elbląg, which educates the staff of modern economy with special emphasis on modern IT technologies Construction of and provision of equipment to the Police Didactic and Research Centre of the Higher Police School in Szczytno for strengthening the national safety Projects implemented in Podlaskie Voivodeship Development of higher education institution infrastructure along with a laboratory hall for modern agri-food processing

107 Modern Training Centre of the Bialystok University of Technology Construction of the Institute of Biology and Faculty of Mathematics and Informatics along with an Academic Computing Centre Establishment of a modern didactic and scientific database for the needs of the Euroregional Centre of Pharmacy of the Medical University of Białystok Projects implemented in Lubelskie Voivodeship Centre for Innovation and Advanced Technologies of the Lublin University of Technology Construction of the Scientific and Didactic building of Biotechnology Construction of and provision of equipment to the research and didactic building of the Institute of Earth Sciences of the Maria Curie- Skłodowska University in Lublin Eastern Innovation Centre of Architecture extension of and provision of equipment to the didactic and scientific complex of the Lublin University of Technology for the Faculty of Civil Engineering and Architecture Construction of the research and didactic building for the Institute of Computer Sciences of the Maria Curie-Skłodowska University in Lublin together with providing equipment to it and making connectors with other buildings Construction of the Institutes of Theoretical Sciences for the Third Medical University of Lublin Extension and modernisation of the educational and research potential of the Faculty of Civil Engineering and Architecture at the Lublin University of Technology Centre for Engineering Studies of the State School of Higher Vocational Education in Chełm Construction of the Centre for Innovation and Implementation of New Techniques and Technologies in Agricultural Engineering Projects implemented in Podkarpacie Voivodeship Regional Didactic and Conference and Library and Administrative Centre of the Rzeszow University of Technology Launching the science and didactic complex ZALESIE regional centres of innovation and transferring technologies of production, processing and marketing in the agri-food sector Extension and reconstruction of the facilities of the State School of Higher Vocational Education in Krosno and provision of equipment to them Extension of the didactic facilities of the campus of the State School of Higher Vocational Education in Przemyśl 107 1

108 Extension of the Aviation Training Centre at the Ignacy Łukasiewicz Rzeszow University of Technology and provision of additional equipment to it Establishment of a comprehensive science and didactic, as well as social facilities for higher education institutions in Stalowa Wola as the economic and social development intensification centres of Eastern Poland International Education Centre Projects implemented in Świętokrzyskie Voivodeship Extension of the didactic infrastructure of the Jan Kochanowski University of Humanities and Sciences in Kielce second stage of constructing an academic campus Modin II modernisation and extension of the education and research infrastructure of the Kielce University of Technology 4.3. Housing policy Answer to question II.37 In line with the Constitution of Poland, the public authorities: shall pursue policies conducive to satisfying the housing needs of citizens, in particular combating homelessness, promoting the development of low-income housing and supporting activities aimed at acquisition of a home by each citizen (Article 75(1) of the Constitution of the Republic of Poland). The legal acts specify more precisely these declaration and oblige the gmina self-governments within the scope of housing policy. The housing economy was decentralised at the times of the system transformations and public housing resources were in large part communalized, as a result the competences of the gmina self-governments covered: 1. Establishing conditions for satisfying the housing needs of the community; 2. Satisfying housing needs of families with low income; 3. Provision of social dwellings or emergency lodging; 4. Management of communal housing resources; 5. Payment of housing allowances to households with low income which occupy not very large dwellings. Change of ownership as regards housing resources constituted a significant element of the system transformation taking place after The tenants could buy back dwellings, which the occupy so far, under rental rules or change the right to the premises belonging to a housing cooperative from an occupancy right to an ownership right. It should be emphasised that dwellings were and still are bought 108 1

109 back at much lower prices than the market prices for example, in 2008 municipal premises were sold for approx. 10% of their market value 19. Because of the systematic sale of dwellings, already in 2005 the number of dwellings for rent 20 constituted in Poland only about 15% of the dwelling resources Housing resources in Poland forms of management and ownership In general, the following forms of housing resources can be identified in Poland: 1) Resources of the gmina self-governments Upon the entry into force of the act on territorial self-government and selfgovernment officials in 1990, the gminas took over the ownership of the housing resources which were earlier managed by the local units of State administration. The municipal housing resources are managed by the shareholder companies of the gmina, budgetary enterprises or budgetary entities. As it was mentioned before, the gmina housing recourses are successively being privatized. According to the data of Central Statistical Office in 2007 the individual gminas owned 9% of dwellings. 2) Resources of the housing cooperatives In 2007, housing cooperatives owned 24.4% of dwellings. The premises belonging to the resources of the housing cooperatives can be, in general, divided into two forms of ownership: a) Owner-type cooperative dwelling cooperative ownership right to a premises, so-called limited property right (the premises can be sold and inherited; this right has such a strong statutory effect that it is compared to private ownership of a premises; the housing cooperative, only in justified cases, has the right to deprive the dweller of the membership in the cooperative and, thereby, the ownership of the dwelling); b) Tenant-type cooperative dwelling cooperative tenancy right to a premises (the premises is owned by the housing cooperative, the members of the cooperative use the dwelling, they cannot sell, donate or bequeath the premises to anyone. To buy a dwelling in a building constructed by housing cooperative under tenancy rules, one needs to become a member of the cooperative and pay a housing contribution. The cooperative tenancy right to premises expires when one stops to be a member of a cooperative, and in such cases the cooperative returns the previously paid housing contribution to the entitled person). 3) Resources of companies 19 Cf. Information on housing, monitoring results for 2008 [Informacje o mieszkalnictwie, wyniki monitoringu za 2008 r.], Institute of Urban Development, Kraków Here belong: municipal dwellings, tenant-type cooperative dwellings, Social Housing Association dwellings (TBS), dwellings owned by State enterprises or State Treasury companies :

110 Dwellings owned by State enterprises or State Treasury companies can be sold to hitherto tenants or transferred to housing cooperatives or gminas or they can be further managed by the companies. According to the data of Central Statistical Office in 2007 the State enterprises or State Treasury companies owned approx. 1.7% of dwellings. 4) Private rented resources The private rented housing resources cover, on the one hand, pre-war buildings, which were constructed by natural persons for rent. On the other hand the resources cover private apartments which are rented in the grey zone mainly in the larger cities including the academic centres. It is estimated unofficially that it could be up to 0.5 million dwellings. 5) Private resources The private resources include on the one hand the private houses and on the other hand the mortgaged premises. The mortgaged premises constitutes an actually separated property of a building, the owner of mortgaged premises is at the same time co-owner of the building and the plot on which it stands, and all co-owners of premises in a given property (most commonly in a single block of flats) constitute a so-called condominium). Poland witnessed the emergence of the so-called condominiums following privatisation of premises which were previously owned by gminas or companies. In line with the definition included in the act on ownership of premises of 24 June 1994 (consolidated text: Dz.U. of 2000, no. 80, item 903 as amended) condominiums are formed by all owners, whose premises constitute a given property. Condominium is established at the moment when the first residential apartment is separated from the property and its ownership is transferred to another entity than the hitherto owner of the land property, i.e. for example when the first dwelling in a building belonging to gmina housing resources is sold. Condominium exists under the law and cannot be liquidated by way of a contract or other legal actions. Owners of premises belonging to a condominium enjoy a number of rights, such as the right to decide, during meetings, on the form and manner of property administration and management. The dwellings constituting a condominium are divided into dwellings belonging to the housing resources of the gmina or a company and mortgaged premises. The Table below compares the share of individual forms of residential apartments ownership. 1101

111 Table 16 Ownership structure of dwellings in Poland in 2007 The form of ownership % Municipal dwellings 9,0% Dwellings of Social Housing Associations (TBS) 0,5% Tenant-type cooperative dwellings 5,4% Dwellings owned by State enterprises or State Treasury 1,7% Together the social type of housing 16,6% Private dwellings 63,5% Owner-type cooperative dwelling 19,0% Remaining dwellings 0,9% Together the not social type of housing 83,4% Total 100,0% Source: Data of Central Statistical Office. 9.2 Housing support instruments The State budget expenditure on housing is low and demonstrates a decreasing trend from 2008 onwards (cf. Table below). In 2009 the share of expenditure on housing in the State budget constituted 0.31%, what made only 0.07% of the GDP. It is estimated that the expenditure on housing in 2010 will be further limited. The survey carried out by the French Presidency in 2008 showed, that the expenditure of the State budget on housing in Poland compared to the GDP are the lowest in the whole EU. It has to be underlined that the housing needs in most of the European countries (especially in Western Europe) unlike in Poland has already been solved. 1111

112 Table 17 Direct State budget expenditure on the housing sector (PLN million) * Old obligations finacial Repurchase of interest on housing loans Reimbursement of the guarantee bonus Housing construction National Fund Housing Subsidies Fund Maintaining of the stock Thermomodernisation and renovation Fund Subsidies for gminas to co-finance the housing allowances Total % Expanditure from Stated budget 2,18 1,19 1,00 0,61 0,44 0,45 0,47 0,36 0,31 0,27 % GDP 0,51 0,27 0,23 0,13 0,09 0,10 0,10 0,08 0,07 - Source: Elaborated by the Ministry of Finance on the basis of the data of National Statistical Office and Ministry of Finance * elaborated on the basis of State budget law for In Poland the policy of satisfying the housing needs is focused on provision of support to the poor. The poorest people are awarded municipal or social premises (see below). As for providing support to building construction, at present the implemented activities cover, above all, a government programme under the name A Family's own home (Rodzina na swoim), within the framework of which families can apply for 1121

113 co-financing of a loan allocated to purchase of a dwelling or a house. Moreover, construction or purchase of a residential apartment or a house is supported by the State through the application of the reduced VAT rate 7%. Forms of support for the poor groups of population and groups of population with an average income for satisfying their housing needs: 1) Awarding a municipal dwelling Municipal dwellings are awarded to persons with low income, who cannot afford a dwelling under market rules. These dwellings are awarded from housing resources belonging to the gmina or legal persons in a gmina. Gmina resources are implemented mainly from gmina budgets. The gmina determines the level of gross income in a household, which allows to apply for a municipal premises constituting a part of the gmina resources (According to the survey carried out in 2008 by the Ministry of Infrastructure on a random sample of 230 gminas the average maximum of gross income that enables to be awarded a municipal dwelling for a household consisting of many persons amounted to 694 PLN per person). 2) Awarding social (and protected) premises Moreover, gminas are committed to provide so-called social premises to among others: persons that received an eviction judgment with a right to social premises, children brought up in orphanages, families of disabled persons, tenants of houses in bad technical condition, the homeless, and tenants occupying dwellings which fail to meet the criterion of 5 m 2 per person. The rent in a social premises amounts to 50% of the lowest rent rate per 1 m 2 in a municipal premises. The gmina determines the level of gross income in a household, which enables to apply for social premises (According to the survey carried out in 2008 by the Ministry of Infrastructure on a random sample of 230 gminas the average maximum of gross income that enables to be awarded social premises for a household consisting of many persons amounted to 397 PLN per person). A government programme on providing support to social housing is being implemented in order to support gminas within the scope of building social premises. Within the framework of the programme, the entities whose legal or statutory tasks cover ensuring a shelter or a dwelling to the people in need, hence gminas, poviats, inter-gmina associations and public benefit organisations can apply, under the Subsidies Fund, for funding a part of the costs incurred on projects which result in the construction of social premises, protected dwellings, common lodginghouses and shelters for the homeless. However, the budgetary co-financing level available under this programme fails to meet all the gmina needs. Financial support (subsidies in the amount of 30-50% of project costs, depending on the nature of the investment) is awarded to the construction of a new building, as well as modernisation of the already existing resources, i.e. renovation, reconstruction and change in building use. 1131

114 In 2009, the Programme was modified in a manner increasing its efficiency: the level of support available to the applicants was increased, a possibility to purchase and refinance the costs of purchasing residential apartments and entire residential buildings was introduced (and not only the costs of purchasing individual premises). Another change for the gminas consists in the possibility to obtain with the financial support from the State budget - municipal dwellings that do not have the status of social premises. The necessary condition for a gmina to use the support available for such investments consists in parallel establishment without the use of resources from the Subsidies Fund of social dwellings whose floor area and number at least equals the effect expected to be achieved by the investment resulting in the construction of municipal dwellings. In 2009 approx. 1,500 applications for the construction of social dwellings were qualified, as well as applications for establishing places in shelters for the homeless and common lodging-houses. 21 Gminas, apart from awarding municipal or social dwellings to persons in the most difficult material situation, are also obliged to pay to such persons housing allowances. A housing allowance has to be allocated to cover periodic payments incurred by the household in relation to using a residential apartment (rent, maintenance costs, etc.). The entities entitled to housing allowances include households in which the average monthly income per one person does not exceed 125% of the lowest retirement pay for a household consisting of many persons and 175% for a one-person household. At the same time, the size of the dwelling occupied by a household receiving the housing allowance is limited. 3) Support to construction by applying the 7% VAT rate for construction and installation works and renovation works The reduced VAT rate for construction and housing works, renovation and conservation works related to residential housing, has a significant impact on the housing development. The reduced rate concerns construction and renovation services construction of a house or a dwelling. Until the end of 2010 there are no floor space limits within the scope, after 2010 the reduced tax rate will concern services related to the construction or renovation of single-family residential buildings with the usable floor space of up to 300 m² and residential apartments with the usable floor space of up to 150 m². Refund of part of the VAT paid by natural persons in connection with construction materials for construction or renovation of a house; moreover, to make it possible to apply the reduced VAT rate in case of construction performed under the so-called economic system it is possible to obtain refund of overpaid VAT (difference between the baseline and reduced rate) paid in connection with purchase of construction materials for the purpose. In 2009 PLN 1 billion was paid to natural persons on account of refund of overpaid VAT. 21 Data of the Ministry of Infrastructure. 1141

115 4) Financial support to purchasing dwellings - so-called "A Family's own home programme Within the framework of the government programme since 2007 persons interested in dwelling ownership can apply for interest rate subsidies in respect to loans, which in the first 8 years were provided in the form of repayment in the amount of 50% of the interest determined on the basis of an imputed rate of interest (WIBOR 3M + 2 percentage points). The support is available for married couples and single parents. For this support can apply persons who do not have a right to other residential apartment. The programme can award a loan for a purchase of a dwelling with maximum usable floor space of 75 m 2, as well as purchase of a house in which the usable floor space does not exceed 140 m 2. On the other, the subsidies are charged to the maximum area of 50 m 2 for dwellings and 70 m 2 for houses. The act also introduces restrictions concerning the maximum price per 1 square meter of a dwelling or a house, which are determined in relation to the so-called conversion factor of the replacement costs of 1 m 2 of the usable floor space in a residential building. In 2009 the programme enjoyed a very dynamic growth: the subsidies to loans were used by 30.9 thousand families (the total value of these loans was PLN 5.4 billion). 5) Support to loans repayment and guarantee bonus This support aims at decreasing the negative results of system transformations in respect to persons who repay earlier housing loans and persons saving on the socalled housing savings booklets. In 2009, the budget subsidies enabling repurchase of the interest on the so-called old housing loans amounted to approx. PLN 150 million. In 2009, 46.1 thousand housing savings booklets with a guarantee bonus were liquidated. The value of resources accumulated under this instrument amounted to PLN 584 million. The guarantee bonuses in this amount totalled to PLN 410 million. 6) Programme providing support to public building society construction Until 2009, within the framework of the programme supporting public building society construction, the public building societies commercial companies and partnerships operating under a non-profit formula and housing cooperatives - could apply for a loan on preferential terms reaching up to 70% of investment costs for the construction of housing for rent. The loan repayment was covered from the rents. Preferential loan was awarded from the resources of the National Housing Fund (NHF), which was subsidised from the resources of the State budget and complemented with the loans raised in international financial institutions. The Fund was liquidated in May 2009 within the framework of anti-crisis measures. Bank Gospodarstwa Krajowego (BGK), which managed this Fund continues to award loans to projects, which are eligible to be implemented on the basis of previously submitted applications. It should be noted that the change in the financing system for new investments within the scope of construction of housing for rent failed to change any other 1151

116 significant elements of the system. The target beneficiaries of the programme still cover: persons who cannot afford to purchase premises on the free market, but at the same time, persons who are able to pay a rent calculated at the level ensuring the coverage of all costs related to the dwelling maintenance and repayment of commitments entered into as a result of its construction; persons migrating in search of job. In 2009, loans were granted for the amount of PLN 436 million and 3,619 dwellings were put into operation. Figure 6 Dwellings co-financed with the participation of NHF loans in 2006 by investor types Dwellings co-financed with the participation of NHF loans in 2006by investor types Number of loans for dwellings as of gmina TBS housing cooperatives private TBS Source: BGK data. 1161

117 As it was stressed before, the Polish housing policy is implemented, primarily, by individual gminas/cities. The tasks of cities within the housing field can be divided into obligatory (mentioned above) and tasks consisting in establishment of favourable conditions for satisfying the housing needs of the citizens. These do not follow from direct legal delegations but are covered by the scope of gminas inherent tasks, such as: considering the housing needs in the adopted strategies and programmes, marking out areas designated under housing construction in the studies on the preconditions and directions for the communes physical development of local conditions and spatial development plans, designation of their own land for housing purposes (for different investors), active management of their own housing resources, construction of municipal dwellings, extension, superstructure, adaptation of other resources into housing resources (e.g. post-military, post-industrial resources); construction of municipal infrastructure accompanying residential housing, supporting investors in other resources (support to renovation, modernisation, adaptation, thermo-modernisation, etc.), support to Social Housing Associations (TBS), pro-investment preferences in respect to local taxes and charges, use of other financial instruments. It should be emphasised that many cities use some part of the above-mentioned instruments, however, only few use their whole range (Report..., 2009, p. 17). In individual cities the housing activity of gminas, expressed through development programmes and support to housing, as well as expenditure on housing economy form the local budgets, differs in respect to the range of activities and durability of the applied policy. Many cities can be mentioned as examples in respect to the application of the advanced housing programmes, i.e. cities that make it possible to use government instruments provided by housing programmes, which introduce their own housing support instruments and efficiently use their own housing resources. However, the barriers such as extremely powerful rights of tenants, extensive renovation needs, high share of families eligible - due to low income - to satisfying their needs from housing resources of the gminas, result in permanent difficulties in implementing the obligatory tasks of the cities. The gminas are committed to develop multi-annual programmes of managing their housing resources; they also often develop housing development strategies within their own area Instruments for improving the technical condition of housing resources Apart from the support instruments available for the poor and persons with an average income within the scope of satisfying their housing needs there are also available instruments for improving the technical condition of housing resources. In 1171

118 1999 a government programme was launched under which support is awarded from the budget resources in the form of the so called thermo-modernisation bonus for investors implementing projects, which significantly improve the energy characteristic of residential buildings, collective accommodation building and buildings owned by territorial self-government units. Within the framework of the programme co-financing can also be awarded to projects consisting in making a technical connection to a centralised heat source, as a result of liquidating a local heat source, which causes a decrease in the costs of supplying heat to such buildings. In 2009, the programme was supplemented with the possibility of obtaining a renovation bonus on account of implementing a renovation project in a multi-family building, which was put into operation before 1961 (these are buildings in the worst technical condition and with the lowest equipment standard), as well as compensation bonus compensating for losses which were incurred by the owners of residential buildings following the application of the regulated rent. In 2009 a total of 3,332 bonuses were awarded for an overall amount of PLN million for implementation of projects worth over PLN 1,150 million. The Table below compares the financial instruments for residential housing support. Table 18 Financial instruments for housing support 22 Type of instrument Legal basis Source of financing Instrument in 2009 use Financial support to purchasing dwellings so-called "A Family's own home programme Act of 8 September 2006 on financial support for families to purchasing swellings - Dz.U. No 183, item 1354, as amended. State budget In 2009 the subsidies to loans were used by 30.9 thousand families - the total value of the loans PLN 5.4 billion. Lowered 7% VAT rate for construction and installation works and renovation works (available as of ) Refund of part of the VAT paid by natural Act of 11 March 2004 on Value Added Tax (Dz. U. No 54,, item 535 as amended) Act of 29 August 2005 on the refund of some State budget State budget In 2009 PLN 1 billion was paid 22 Data from the Ministry of Infrastructure. 1181

119 persons in connection with construction materials for construction or renovation of a house expenditures relating to residential housing to natural persons (Dz. U. No. 177, item 1468 as amended). to natural persons on account of refund of overpaid VAT. Programme of public building society construction Act of 26 October 1995 on certain forms of support to residential housing (Dz. U. of 2000, No 98, item 1070, as amended). National Housing Fund (NHF) subsidised from the resources of the State budget and complemented with the loans raised in international financial institutions In 2009 loans were granted for the amount of PLN 436 million and 3,619 dwellings were put into operation. NHF was liquidated in the Spring of 2009, but loans are still granted and payments made in relation to applications submitted until 30 September Support to loans repayment and guarantee bonus Act of 30 November 1995 on State support for the re-payment of some types of housing loans, granting guarantee bonuses and refunds to banks for paid guarantee bonuses (Dz.U. of 2003 No 119 item 1115 as amended) In 2009 the budget subsidies making it possible to repurchase the interest on the so-called old housing loans amounted to approx. PLN 150 million. In thousand housing savings booklets with a 1191

120 guarantee bonus were liquidated. The value of resources accumulated under these amounted to PLN 584 million. The guarantee bonuses in this amount totalled to PLN 410 million. Government programme on providing support to social housing (cofinancing of a part of the costs of construction or renovation of social premises, sheltered dwellings, common lodging-houses and shelters for the homeless) Act of 8 December 2006 on financial support to the creation of social premises, sheltered dwellings, common lodging-houses and shelters for the homeless (Dz. U. No 251, item 1844, as amended). Payments fund In 2009 approx. 1,500 applications for the construction of dwellings were qualified Thermomodernisation, renovation and compensation bonus (available as of ) Act of 19 March 2009 on support for thermomodernisation and renovations (Dz. U. No. 223, item. 1459), which replaced the previous Act on support for thermomodernisation undertakings. Thermomodernisation and renovation Fund (instead of previously functioning Thermomodernisation Fund) In 2009 as many as 3,332 bonuses were granted for the total amount of PLN million, for the implementation of projects of the value exceeding PLN 1,150 million. Source: Author s own elaboration on the basis of the data from the Ministry of Infrastructure. Additional information Public housing resources and direct activity of cities within the field of housing are a small fragment of the housing market in Poland. Private housing resources in singlefamily and multi-family housing (in condominiums) account for the major part of 120 1

121 housing resources. Also residential housing is mostly built and financed under market conditions. Table 19 Residential housing in 2008 Dwellings put into operation by: Total in dwellings including the cities in in the % of the total housing cooperatives 8,647 8, companies gminas 2,719 2, social housing associations (TBS), 3,205 3, for sale or for rent 66,703 63, individual 83,338 42, TOTAL 165, , Source: data from the Regional Data Bank, CSO, own calculations. Transactions on the labour marker primary and secondary - show great growth dynamics. For many years now, greatest growth is observed in main cities of Poland, especially Warsaw, which takes over approx. 30% of that market (see below)

122 Diagram 4 Structure of newly granted loans in largest cities Structure of newly granted loans in largest cities 1st Q. of nd Q. of rd Q. of th Q. of st Q. of nd Q of rd Q. of 2009 Tricity Silesian Agglomeration Other Source: Ogólnopolski, 2009 The loan campaign of the banks concentrates in the largest cities in Poland, their share in the housing loans market reached as much as 80% as of the 3 rd quarter of Warsaw itself covers approx. 30% of the housing loans market. Other important markets include Łódź (4%), Poznań (6.5%), Kraków (7%), Szczecin (3.85%), Wrocław (8%), Tricity (approx. 7%) and Silesian Agglomeration (6.4%). These cities are the target of approx. 80% of the loan campaigns of the banks at the end of the 3rd quarter of 2009 (Ogólnopolski, 2009). In regional perspective, the growth dynamics in residential housing reflects the economic potential and level of urbanisation. For example, statistics for dwellings put into operation in multi-family housing in 2007 and 2008 is presented below (see below)

123 Diagram 5 Dwellings put into operation in multi-family housing in 2007 and 2008 (in thousands) 6. Source: Information..., Housing problems in Poland The main problem concerning housing in Poland is the housing shortage which means the difference between the inhabited dwellings and the number of households. The last reliable date concerning this problem could be collected during the National Census in The data are shown in the table below. Table 20 Statistical shortage of housing in Poland in 2002 (in thousand) Dwellings in total Inhabited dwellings Number of households Statistical shortage of housing City 8 364, , , ,0 Rural 4 159, , ,6 615,4 Total , , ,3 Source: Elaborated by the Ministry of Infrastructure on the basis of National Census in 2002 Due to the lack of annual data concerning the number of households in Poland it is not possible to estimate accurately the current housing shortage. Due to the estimations of the Ministry of Infrastructure the real housing shortage contains about 1460 thousand dwellings

124 The lack of dwellings is connected mainly with the possibility to meet the housing needs by purchasing a dwelling. The average monthly salary in Poland does not enable to buy 1 m² of a dwelling and in the biggest cities for the average salary it is possible to buy only about m² of a dwelling. It is not much compared to the West European countries where for an average salary one can purchase 2-3 m² of a dwelling. Diagram 6 The relation of average salary in the national economy to the 1 m² of dwellings put to operation between ,20 Wynagrodzenie/cena 1 metra Salary/price for 1 m² 1,00 0,80 0,60 0,40 0,20 0, Source: Elaborated by the Ministry of Infrastructure on the basis of Central Statistical Office data 4.4. Environmental policy Answer to question 52 The following strategic/policy documents may be listed in relation to environmental protection and energy security: National Environmental Policy for including Perspectives till Year 2016 (competent authority: Ministry of Environment) Poland s climate policy with national strategies for greenhouse gas emission reductions in Poland until 2020 (competent authority: Ministry of Environment) National Strategy for the Conservation and Sustainable Use of Biodiversity (complete with the Action Plan, currently for , document prepared for a 7-year period) (competent authority: Ministry of Environment) Polish National Strategy for the Development of Renewable Energy (competent authority: Ministry of Economy) Poland's Energy Policy until 2025 (competent authority: Ministry of Economy) 124 1

125 Policy of the Government of the Republic of Poland for the Petroleum Industry in Poland (competent authority: Ministry of Economy) Policy for the natural gas industry (competent authority: Ministry of Economy) The Strategy of hard coal mining industry activities in Poland for (competent authority: Ministry of Economy) The 2010 National Waste Management Plan (competent authority: Ministry of Environment) The 2010 National Programme for Municipal Waste Water Treatment (competent authority: Ministry of Environment) The works are currently undertaken in Poland, which are targeted at reducing the number of existing and developed strategic documents, including development strategies, which are adopted by the Council of Ministers, and systematic ordering of these documents. The currently binding 42 documents which have the nature of development strategies and policies shuld be replaced by 9 new development strategies. These strategies will implement the medium- and long-term objectives of the National Development Strategy. Therefore, the above-listed strategies and policies referring directly and indirectly to environmental protection will finally be replaced by one strategy Strategy entitled Energy security and environmental strategy, which will be implemented through programmes. The implementation of the strategy will be coordinated by the Ministry of Economy. The baseline strategic document in the field of environmental protection in Poland is currently the National Environmental Policy for including Perspectives till Year 2016, elaborated in the Ministry of Environment. The elaboration of this document is obligatory pursuant to the provisions of the Act of 27 April Environmental Protection Law (Dz.U. of 2008, No. 25, item 150, as amended). The document was adopted by the Sejm in May 2009 and contains priorities of Polish environmental policies and ways of improving the environmental safety of the country in accordance with the rule of sustainable development. Within the last 20 years a significant improvement in environmental protection has been observed in Poland. Until 1989, Poland, next to USSR and GDR (East Germany) was one of the most polluted countries industrialisation and urbanisation of the country did not respect the rules of environmental protection, and economic or political factors prevailed over environmental aspects. Situation changed after the political and democratic changes in Poland. Activities in three basic dimensions were taken: - creation of an effective environmental protection law creation of a body controlling the observance of that law allocation of sufficient funds to implement investments aimed at environmental protection

126 For this purpose, the National Fund for Environmental Protection and Water Management was created in The National Fund, together with Voivodeship Funds, has become the foundation for the Polish system of environmental protection financing. The National Fund functions on the basis of the Environmental Protection Law. The most important task of the National Fund in recent years was to ensure effective and efficient absorption of European Union funds intended for the extension and modernisation of environmental protection infrastructure in Poland. Implementation of environmental projects, which have or will have obtained financial support from the European Commission will contribute to Poland s achievement of environmental objectives following from international commitments of our country. The revenue of the NFEP&WM comes from the charges for economic use of the environment and for the violation of the provisions of Environmental Protection Law. Due to the fact that the principal forms of co-financing are loans, the National Fund remains a renewable source of financing of environmental protection. Loans and subsidies, along with other forms of co-financing applied by the National Fund, are intended for co-financing mainly large investments of national and trans-regional impact in respect of elimination of water, air and soil pollution. Financing covers also activities in other fields: geology and mining, monitoring of the environment, counteracting environmental hazards, protection of the environment and forests, dissemination of environmental awareness, health prevention of children, as well as research and development work and expert opinions. Recently, priority has been put to investments involving renewable energy sources. Within 20 years, the National Fund has played an important role in improving the condition of the environment in Poland. The financial dimension of the National Fund s activities is overwhelming: in , the National Fund concluded over 14 thousand contracts (mainly concerning subsidies, credits and loans granted through the Bank Ochrony Środowiska) allocating for the purposes of environmental projects financing the amount of almost PLN 21.4 billion. The cost of the projects cofinanced in that time with the resources of the National Fund exceeds PLN 76.5 billion. After 1989, Poland quickly caught up with the rest of Europe in the field of environmental protection. However, in late 1990s, the rate at which these improvements took place, slowed down significantly. Also the resources allocated to environmental protection decreased. A new impulse came with the perspective of Poland's accession to the European Union and the environmental protection requirements that came with it they required considerable changes in legal norms and environment quality standards. Pursuant to the provisions of the Accession Treaty, after 2015 Poland should meet all environmental protection standards which are in force in EU Member States. In order to allow for the achievement of this difficult task, Poland received financial support first under ISPA programme, then through the Cohesion Fund within the framework of the Strategy for the implementation of Cohesion Fund in Poland during years and through the European Regional Development Fund under the Integrated Regional Development Fund and Sectoral Operational Programme Improvement of 126 1

127 the Competitiveness of Enterprises, as well as European Agricultural Guidance and Guarantee Fund within the Rural Development Plan for and Sectoral Operational Programme Restructuring and Modernisation of Food Sector and Rural Development Since 2004, environmental projects could also receive cofinancing under the European Economic Area Financial Mechanism and Norwegian Financial Mechanism. In the new financial perspective of , investments aimed at environmental protection are supported mainly within the framework of the Operational Programme Infrastructure and Environment". Within the Programme the amount of EUR 4.84 billion from the Cohesion Fund and European Regional Development Fund was allocated to environmental projects. Another source of EU co-financing will be the resources of the European Regional Development Fund allocated under 16 Regional Operational Programmes. Considerable amounts for environmental protection measures were also allocated under Rural Development Programme for and Operational Programme Sustainable Development of the Fisheries Sector and Coastal Fishing Areas. It needs to be stressed, though, that even those new EU programmes, with joint subsidies reaching EUR 6.3 billion, constitute no more than 20% of all required investment outlays for environmental protection which will be spent in Poland in The remaining resources must be provided by the Polish side. Moreover, Poland will also have the funds for the investments relating to climate protection, obtained from the trade in CO2 emissions under Kyoto Protocol (Assigned Amount Unit AAU). It is estimated that by 2012 Poland will be able to sell as much as 500 million AAUs. Pursuant to the provisions of the Kyoto Protocol, Poland is obliged to reduce emissions in by 6 percent. Due to the existing surplus of AAUs, Poland may sell the units and allocate the income generated this way to co-finance through subsidies - investments aimed at the reduction of greenhouse emissions. There are currently 5 priority programmes implemented using the funds obtained this way: thermo-modernisation of public utility buildings, modernisation and development of heat engineering, RES-biomass, RES-biogas, modernisation of energy networks to connect windfarms. The most important instrument supporting the financing of environmental protection in Poland is the above-mentioned Operational Programme "Infrastructure and Environment (OP IaE) which is the largest such programme in the history of the EU. The amount of EU funds involved in its implementation is nearly EUR 28 billion, which constitutes approx. 42 % of all Cohesion Policy funds in Poland. Within the framework of the programme, large infrastructural investments are implemented within the scope of environmental protection, transport, power industry, culture, national heritage, health care, and higher education. The objective of the Programme is to improve Poland s and its regions investment attractiveness through the development of technical infrastructure, while at the same time protecting and improving the condition of environment, health, maintaining cultural identity and developing territorial cohesion. In accordance with National Strategic Reference Framework (NSRF) approved by the European Commission on

128 May 2007, the programme constitutes one of the operational programmes which are the basic tool to achieve goals set in them using the financial means from Cohesion Fund and European Regional Development Fund. Operational Programme Infrastructure and Environment is also an important instrument of implementing the Lisbon Strategy, and the expenditures for EU priority objectives amount to % of all expenditures from EU funds. The total volume of funds involved in the implementation of the Operational Programme Infrastructure and Environment for amounts to EUR 37.6 billion, of which EU contribution equals EUR 27.9 billion, while national contribution: EUR 9.7 billion. The distribution of EU funds available within Operational Programme Infrastructure and Environment between separate sectors presents itself as follows: transport EUR 19.4 billion. environment EUR 4.8 billion. power industry EUR 1.7 billion. higher education EUR million culture EUR million health EUR million Under the programme 15 priorities are implemented: 1. Water and sewage management - EUR 3,275.2 million (including EUR 2,783.9 million from CF); (Main objective: equipping agglomerations of more than 15,000 residents with sewerage system and wastewater treatment plants) 2. Waste management and protection of the earth EUR 1,430.3 million (including EUR 1,215.7 million from CF); (Main objective: increasing economic benefits through limiting the share of stored municipal waste and through recultivation of degraded areas and protection of sea coastline areas) 3. Resource management and counteracting environmental risks EUR million (including EUR million from CF); (Main objective: ensuring adequate water resources to satisfy the needs of the population and of the economy, minimisation of negative effects of natural phenomena, improvement of environment monitoring) 4. Initiatives aimed at adjusting enterprises to the requirements of environment protection EUR million (including EUR million from ERDF); (Main objective: limiting the industry s negative impact on the environment) 5. Environment protection and promotion of ecological habits EUR million (including EUR 89.9 million from ERDF); (Main objective: limiting the degradation of the natural environment and its resources, as well as limiting the reduction of biological diversity). 6. TEN-T road and air transport network - EUR 10,548.3 million (including EUR 8,802.4 million from CF); 128 1

129 7. Environment friendly transport - EUR 12,062.0 million (including EUR 7,676 million from CF); 8. Transport safety and national transport networks EUR 3,465.3 million (including EUR 2,945.5 million from ERDF); 9. Environment-friendly energy infrastructure and energy efficiency - EUR 1,403 million (including EUR 748 million from CF); (Main objective: reduction of the energy sector s impact on the environment) 10. Energy security, including diversification of the energy sources EUR 1,693.2 million (including EUR million from ERDF); (Main objective: improvement of the energy security of the country) 11. Culture and cultural heritage EUR million (including EUR million from ERDF); 12. Health security and improving the efficiency of the healthcare system EUR million (including EUR million from ERDF); 13. Infrastructure of higher education EUR million (including EUR million from ERDF); 14. Technical assistance - European Regional Development Fund - EUR million (including EUR million from ERDF); 15. Technical Assistance - Cohesion Fund - EUR million (including EUR million from CF). The priorities referring to environmental protection (Priorities I-V) remain within the competence of the Ministry of Environment (which plays the role of Intermediate Body). The priorities referring to energy efficiency and security (Priorities IX-X) remain within the competence of the Ministry of Economy. After Poland s accession to the European Union the country s progress in the implementation of most assumed objectives concerning the environment is clearly visible. In 2008, there were 4,244 wastewater treatment plants in Poland (including 1,154 industrial wastewater treatment plants and 3,090 municipal wastewater treatment plants) against 4,254 wastewater treatment plants in total in 2006 (including 1,255 industrial and 2,999 municipal). The percentage of population using wastewater treatment plants amounted in 2008 to 63.1% (against 61.4% in 2006), where in 2008 these plants were used by 86.9% of urban population and 25.7% of rural population

130 Table 21 Monitoring indicators for objective 3 of NSRF, continued Indicator Assumed vale of indicator in 2013 Population using wastewater treatment plants (% of the total population) urban areas rural areas Emissions of greenhouse gases (baseline year 1988=100, CO2 equivalent) Share of electric power generated from renewable sources in electric energy consumption (%) Source: Eurostat, CSO. The synthetic indicator of the impact of human activity (including the economy) on the environment are the emissions of greenhouse gases (expressed as carbon dioxide equivalent) referred to baseline year of In 2007 this indicator equalled 70.8 (70.9 in 2006) as compared to the level of 89.0 in 2013 assumed in the NSRF. The increase in the value of that indicator, observed in recent years, results from the growing economic activity, but it needs to be stressed that the level remains significantly lower than the emissions observed in The use of renewable energy sources remains low their share in the electricity generated amounted to 4.2% in 2008 (against 2.9% in 2006), and remained significantly lower than the target level assumed in the NSRF for 2013 ( %). In 2008, a new specialised environmental protection body was created - General Director for Environmental Protection and regional directors for environmental protection. These bodies remain departments of government administration at central and regional levels. The tasks of the new bodies include the activities relating to environmental impact assessment of projects, management of environmental protection, including the EU Natura 2000 network and issues relating to the responsibility for damaging the environment Innovativeness and enterprise development Answers to questions No , 34 and 35 from the 2 nd part of the questionnaire

131 Innovative policy for has been defined in the strategic document called Directions for improvement of the economy s innovativeness in the years , which contains the assessment of the innovation level of the Polish economy and recommends area lines for the measures whose implementation will enable the creation, under the Polish conditions, of the knowledge-based economy in which the strength of entrepreneurs on competitive markets will be measured by means of their innovativeness. At the same time, the Directions represent the continuation of a series of undertaken measures and initiatives of the Government; they represent a specific supplementation thereof containing proposals for measures until The implementation of innovative economy provided for in the Directions will assure a strong development incentive, which will contribute to the creation of knowledgebased economy in Poland. The proposed directions should exercise influence to the greatest extent on the sectors constituting vehicles of the knowledge-based economy, namely: education, science, research and development activity, high technology industrial branches, business services related to knowledge-based economy and sector of information society services. The implementation of Directions should cause the 15% employment level in the mentioned sectors (representing vehicles of the knowledge-based economy) to be surpassed. The strategic goal of the innovative policy included in the Directions has been defined as: an increase in the innovativeness of enterprises for purpose of keeping the world s economy on the path of fast development and generation of new jobs with better salaries. These measures are being implemented mainly on the basis of operational programmes prepared for , financed by structural funds, and in particular on the basis of funds that are available under the Operational Programme Innovative Economy (OP IE), whose goal consists in the development of Polish economy on the basis of innovative enterprises. In OP IE, support is provided for projects of supra-regional importance in the field of technology innovations concerning products and processes, as well as innovations in the field of designs in production and services sectors that directly or indirectly contribute to the establishment and development of innovative enterprises. Support and promotion are provided for innovative measures of such nature and scope that generate the highest added value for the economy and enterprises, and hence that, to the greatest extent, contribute to strengthening of the capabilities of competitive Polish economy in the international dimension. Priority Axis III of OP IE Capital for innovation implements instruments necessary from the point of view of starting up an innovative SME business and support for it at the initial growth stages with the use of both capital funds and investor networks (e.g. business angel networks). The provided funds are addressed 23 adopted by the Government on 4 September

132 particularly to the entrepreneurs whose undertakings feature a high level of innovativeness, relatively low value, high market potential and high risk. Under the priority axis, support is provided for potential and new entrepreneurs, encompassing the establishment, on the basis of innovative ideas, of new enterprises, including spin-offs, by means of advisory services concerning the establishment of a new enterprise, availability of infrastructure and services that are necessary for newly established companies and the supplying the new entrepreneur with funds. Cofinancing covers also capital support at the initial growth stages by means of acquisition of stocks or shares or debt instruments by capital funds. An example of an interesting project under Priority Axis III is a project called: Innovation as key to success implemented by Bełchatowsko-Kleszczowski Park Przemysłowo-Technologiczny Sp. z o.o. [Bełchatów-Kleszczów Industrial and Technology Park] within the territory of the entire country (amount of co-financing equalling PLN 20,527,749.78). Project duration amounts to 5.5 years. It includes branches such as: mechatronics, information technologies, biotechnology environmental technology and renewable energy sources. The main project objectives are: identification of innovative ideas, conducting necessary research, market and potential analysis for each identified solution, as well as development of a business plan and feasibility studies, conducting preparatory works connected with the establishment of new business, assurance of infrastructure and services for the newly established companies, necessary at the initial stage of operation, capital injection for enterprises established as a result of pre-incubation by means of acquisition of or taking control over stocks or shares of these companies. Under the project, in 2009, one pre-incubation report was accepted. Measures implemented in Priority Axis IV of OP IE "Investments in innovative undertakings" include co-financing of undertakings concerning the implementation of results of R&D works performed with the support provided under Priority Axis I for the conduct of R&D works. Irrespective of the placement of support instruments in two priority axes (I and IV), the support for R&D works and implementation of their results takes place by means of common system of providing entrepreneurs with support. Additionally, the support concerning the implementation of results of R&D works is applied for by projects co-financed under the Technological Initiative I 24. Support has been provided for projects of entrepreneurs that consist in the implementation of own or purchased modern technologies. A supplementation of support for enterprises investing in R&D activity is constituted by co-financing of 24 programme of the Ministry of Science and Higher Education oriented at the development of new products and technologies on the basis of Polish scientific and technical achievements; it is addressed to entrepreneurs, in particular to the ones that run small and medium-sized companies, and research units that are directly connected with industrial activity

133 advisory services and investments necessary for the operation of R&D business, including the preparation of entrepreneurs for the status of a research and development centre. At the same time, support has been provided for investments concerning the development of industrial designs and utility models representing one of sources of competitive advantages. Co-financing is also available for projects of enterprises both from the production sector and the sector of services concerning the implementation of new investments encompassing the purchase and introduction of innovative technological solutions (including those leading to the reduction of harmful environmental impact) or organisational ones. Support has been also provided for projects of enterprises from the sector of modern services generating a substantial number of jobs, in particular for the highly qualified employees (e.g. within research and development centres). A support instrument for large innovative projects implemented in the production sector introducing innovative solutions on the European and global scale has been provided for as well. Support under Priority Axis V of OP IE "Diffusion of innovation" is intended for the development of cooperation links of supra-regional importance, in particular for joint undertakings of investment and advisory nature that contribute to easier transfer and diffusion of knowledge and innovations between cooperating entities. Co-financing is also provided for strengthening of networks of business environment institutions of supra-regional importance and institutions of national range that operate for the support of innovative activities of enterprises (among others in the field of technology transfer, exercise of industrial property protection rights, conduct of cooperation activity and use of industrial designs and utility models). Within the creation of favourable conditions of running innovative business activity of enterprises, support will cover comprehensive undertakings of specialised innovation centres, in particular technology parks located within areas of high development potential from the point of view of the entire economy. Reinforcement of these institutions strengthens the relations between entrepreneurs and between entrepreneurs and scientific entities by means of appropriate infrastructure, services and knowledge that is necessary in order to run business with the use of modern solutions. An example of an interesting project under Priority Axis V is Extension of the Jagiellonian LifeScience Technology Park and Incubator implemented by Jagiellonian Centre of Innovation Ltd (the value of co-financing amounting to PLN 83,835,294.12). The project objective consists in the establishment of a high technology centre in the life science branch. The creation of innovative scientific and research infrastructure will allow to make use of the scientific potential of the Małopolskie voivodeship in this respect, which will result in the development of biotechnological industry in the region. In consequence, a building with surface measuring 13, m 2 will be constructed. The value of purchased equipment will amount to PLN 4.9 million. The number of highly specialised entities involved in the operation of business resulting from project will amount to 12, including 5 newly established ones. The number of innovative new jobs will amount to 170. The objective will be achieved when two laboratory and office buildings will have been constructed: Technology Incubator and Technology Park, offering a broad range of services for entities operating a research, development or innovation business in the Life Science Park. Under the 133 1

134 created infrastructure, over 5,000 m 2 of laboratory area will be provided, allowing for the support for entities (entrepreneurs and research units) that conducted research, development and innovation activity in this field. Under Priority Axis VI of OP IE "Polish economy on the international market", support is provided for measures consisting in stronger linking the Polish economy with the international economy by presenting Poland as an attractive partner on the international market and an attractive place for investments at the same time. These measures include: support for the promotion of export, construction and development of an entrepreneur service system, support for the investor service network and measures related to increasing the investment attractiveness of the location, promotion of the Polish economy on the international market and promotion of tourism in Poland. Emphasis has been placed on the use of information instruments. Under the priority, support will be provided for initiatives that are important for the promotion of Poland, e.g. organisation of large undertakings in Poland or preparation of Polish participation in the international ones. An example of an interesting project under Priority Axis VI is project called Preparation of documentation for industrial areas in Stargard Szczeciński implemented by urban gmina of Stargard Szczeciński (value of co-financing amounting to PLN 84,046.77). The above-mentioned project encompassed a comprehensive geological analysis aimed at the assessment of geological layers of soil, its physical and mechanical features allowing to assess the load-bearing capacity of soil, research on the water table of groundwater, research on the contamination level of soil and groundwater, and a report on the environmental impact of development of industrial functions. The project implemented under OP IE allowed to enhance the attractiveness of the city s investment offer by providing the investors with information on geotechnical conditions and defining the development strategy for industrial areas in such a way that does not have a negative environmental impact and comfort of living of the residents of a housing estate located in the vicinity. Economic development, generation of new jobs and improvement in the competitiveness of Stargard Szczeciński in the region while preserving the values of environment, which was achieved, among others, due to the implemented project, constitute an integral part of the city s sustainable development strategy, which is best indicated by the aroused interest of investors. In 2009, industrial areas in Stargard Szczeciński were selected by Cargotec, the leading company in the branch of loading and unloading devices, which will create 400 jobs in the modern factory erected for EUR 64 million. Descriptions of particular measures implemented under these priority axes will be developed in the further part of this chapter. Pro-innovative interventions implemented under the Cohesion Policy in In , the number of projects implemented with the support of pro-innovative activity has reached 20,100 and their value has exceeded PLN 19.2 billion (which is 20% of the total intervention implemented under NDP in ) out of which PLN 2.6 billion (constituting 3% of the total funds spent under the NDP) concerned 134 1

135 interventions qualified for the group of projects whose impact on the improvement of economy s innovativeness is unambiguous. Due to the value of projects, measures related to support for the SME sector are ranked first. In , under the support for small and medium-sized companies, projects with the total value surpassing PLN 9.8 billion have been implemented. As regards Support for large enterprises, the value of projects has exceeded PLN 4.5 billion (both in the case of support for investments in tangible assets PLN 2.3 billion, and in the case of support for implementation of environment-friendly technologies PLN 2.2 billion). The total value of projects conducted under the development of Employees adaptation potential, entrepreneurship, innovativeness, communication and information technologies amounted to over PLN 2.2 billion. The value of projects concerning research, technological development and innovative measures amounted to PLN 1.4 billion while the value of projects oriented at improving the quality of telecommunication infrastructure and information society equalled PLN 1.2 billion. The value of projects concerning pro-innovative measures regarding technical assistance amounted to PLN 75.9 million. In the period in question, the number of projects regarded as unambiguously pro-innovative amounted to 905 (with value amounting to PLN 2.6 billion), most of which were related to research, technological development and innovative activities (395 projects). As a result of implementing the intervention in the field of strengthening the cooperation between the research and development sector and the economy, 13 patents have been submitted, which represents 0.5% of all patent applications in Poland made in 2007 alone, and 0.8% of patents awarded in the same year 25. This result, in the intervention part to which the analysed indicator is related 26, represents ca. 0.7% of the total expenditure for R&D in the economy in the entire period from 2004 to In the period in question, support has been provided for 6 seed capital funds, which resulted in financial support being provided for 47 enterprises and amounting to a total of EUR 25 million (including 31 ones whose business operation is based on the use of new technologies). Among enterprises that were awarded the support under SOP ICE, 64% have the status of innovative enterprises. Among all the enterprises that participated in the implementation of projects under the intervention, 42% have introduced innovations. The above data indicate a relatively high effectiveness of the intervention as regards the development of cooperation of the enterprise sector with the R&D sector: over 1,000 signed agreements on cooperation, with the total expenditure incurred so far under the intervention amounting to ca. PLN 145 million results in "the unit cost" of the agreement amounting to PLN 140,000 which can be assessed positively, with the proviso that only ca. 60% of projects aimed at the development of cooperation, and with the 25 Analysis conducted on the basis of CSO data (Science and Technology in 2007) and on the basis of own calculation of the MRD. 26 The data concerning sub-measures and of SOP ICE. 27 While making assessments in this field, one should take into consideration the long-term nature of research and development processes affecting the shift in time of positive intervention outcomes

136 assumption that such outcomes are highly durable and effective 28. List of proinnovative interventions implemented under the Cohesion Policy in is presented in the table below. Table 22 Pro-innovative Interventions implemented under the Cohesion Policy in Category of structural expenditure Number of projects Value of projects (in PLN million) Community cofinancing (in PLN million) Percentage of community cofinancing (in %) Support for large enterprises Investments in tangible assets Environment-friendly technologies, clean and cost-efficient energy technologies Advisory services for enterprises Support for SMEs and for handicraft Investments in tangible assets Environment-friendly technologies, clean and cost-efficient energy technologies Advisory services for enterprises Common services for entrepreneurs (parks, technology incubators, etc.) Financial engineering Research, technological development and innovative activities (R&D) 181 Research projects conducted by universities and research institutes 182 Transfer of technologies and innovations 183 Research and development infrastructure (R&D) Education of scientists The employees adaptation potential, entrepreneurship, innovativeness, communication and information technologies Telecommunication infrastructure and information society Basic infrastructure Communication and information technologies 323 Services and implementation projects for the citizens 324 Services and implementation projects for SMEs technical assistance concerning innovative measures Summary and assessment of effectiveness and efficiency of the Cohesion Policy in the programming period Conclusions and recommendations for the national policies constituting the components of development policy in Poland, Ministry of Regional Development, Warsaw, June 2009 (draft version)

137 412 Assessment Research Innovative measures Total Source: Summary and assessment of effectiveness and efficiency of the Cohesion Policy in the programming period Conclusions and recommendations for the national policies constituting the components of development policy in Poland Final Report, Innovative Economy, the Ministry of Regional Development, Warsaw, June 2009 (draft version). In the field of innovations, pilot support programmes are being also implemented in Poland that are financed solely by national funds. In 2009, the Polish Agency for Enterprise Development (PAED) 29 carried on with the implementation of two pilot programmes financed by the state budget: programmes "Voucher for innovations" and "Innovation Express". They will be described in the further parts of this chapter. PAED provides financing, derived from the state budget and the European funds, for the general national network of business environment institutions National System of Services (KSU). Due to the KSU, each entrepreneur or person intending to start up a business activity (including scientists) can use information services free of charge that are provided by a network of 111 Consultation Centres, in which consultants, after the analysis of customers needs, provide comprehensive information on startup, operation and liquidation of a business. The Innovation Portal has been created as well, which is a source of knowledge on support for innovativeness and technology transfer. One can find information there, among others, on the availability of new technologies, sources of financing of innovations, institutions, as well as programmes supporting innovativeness. More info is available on In 2009, works have begun that concerned the introduction of a new support instrument for entrepreneurs submitting project applications under the international innovative programmes. Due to almost non-existent participation of Polish microentrepreneurs, small and medium-sized entrepreneurs in international programmes, in particular the ones that co-finance cooperation of research entities and companies in terms of research and generation of innovative solutions, the Ministry of Economy 29 PAED is a governmental agency operating on the basis of Act of 9 November 2000 that defines the scope of tasks for implementation, supervisory bodies, principles of creating annual action plans and reporting them. PAED s mission consists in the actions for the economic and social development of Poland and the goal of the measure consists in the provision of support for entrepreneurship by implementing measures aimed at the use of innovative solutions by entrepreneurs, development of human resources, expansion on foreign markets, regional development. The achievement thereof will contribute to the improvement of the competitive position of the Polish economy, both on the markets of the European Union and on the global market. The Polish Agency for Enterprise Development is involved in the implementation of national and international undertakings financed by structural funds, state budget and multiannual programmes of the European Commission. PAED actively participates in the creation and efficient implementation of the State s policy on entrepreneurship, innovativeness and adaptability of human resources, striving for the transformation into the key institution responsible for the creation of environment that supports entrepreneurs. According to the principle "Think Small First" "SMEs first of all", all measures of the Agency are implemented with particular regard to the needs of the SME sector

138 with the Polish Agency for Enterprise Development is preparing a programme called "Support for the acquisition of a grant", which will be implemented in with the planned budget amounting to PLN 8 million. An entrepreneur that has submitted a project application (as a coordinator or a partner) in response to a competition announced under an international innovative programme and their application was rated positively in formal terms will be able to request PAED for support for the acquisition of a grant in order to cover the expenditure related to the preparation of this application. The programme is aimed at encouraging SMEs to participate in international innovative programmes. In March 2010, PAED has commenced the implementation of a project whose goal is to provide cross-sectional support for the institutions that create the innovative business support system. Under the project, a series of actions will be prepared that support an effective implementation of tasks of these institutions. It will also indicate and describe the main driving forces and barriers in the implementation of tasks assigned to the innovative business support institution with the proposals of system opportunities concerning the resolution of problems of these institutions. The effect of these works will be two publications and a series of popularisation meetings and a multimedia base of good practices. A set of materials (publications, multimedia applications, audio and video materials) and informational measures (workshops, foreign and domestic study visits) will be developed and they will be used by employees of business support institutions, as well as scientists and entrepreneurs using their services. Strengthening the potential of these institutions will be possible also by means of specially designed measures that assume and identify the needs of particular institutions, and preparation for implementation of solutions developed under previous project stages. Innovation at regional and local level Also the regional dimension of innovativeness is becoming more and more significant. Frameworks of structural funds imposed on regions the necessity of strategic planning - regions started to develop Regional Innovation Strategies (RIS). Areas of interventions indicated in the RIS were included in Regional Operational Programmes (ROP). Relationships between the policy of innovation, regional innovation strategies and ROPs set now the frames for pro-innovative activities in regions. It is a prove of, among others, large importance of EU funds as the main source of financing Regional Innovation Strategies (RIS). In the period , 364 projects co-financed from structural funds were implemented under the RIS 30. A significant contribution in implementation of the RIS is made by small and mediumsized enterprises. Participation of enterprises in implementation of RIS in exceeded the expected effects and amounted to 7.5 thousand (the value of the indicator was more than 10 times higher than it was planned). In addition, more than 3 thousand persons benefited from apprenticeships and scholarships. 30 Projects implemented under Measure 2.6 Regional Innovation Strategies co-financed from the European Social Fund

139 RIS influence also improvement of cooperation between economic entities and higher education schools, research units and other entities supporting development of innovation at regional level - within the discussed period 1,005 economic entities concluded cooperation agreements. Due to Regional Development Strategies and Regional Operational Programmes, regions have large impact on shaping their own innovation policies. Urban areas which are the most successful concerning innovation policy is Mazowsze (Warsaw), the largest beneficiary of measures of R&D policy. The next are Śląsk and Małopolska. It is proved, for example, by distribution of R&D funds under the system of Structural Funds. Examples of good practices at regional and local level. In spite of general objections relating to insufficient exchange of information between local entrepreneurs and self-government as well as between local entrepreneurs and scientific institutions - one can find examples of effective activities taken by selfgovernments concerning the innovation policy. These are measures which may be interpreted as signs of efficient approach to this policy at local level. They refer not only to developing cooperation between the science and business sectors, but also to encouraging local entrepreneurship. Poznań is one of self-governments successful in terms of innovation policy. The Council of Poznań approved in March 2006 the Academic and Scientific Strategy of the City of Poznań which treats as a priority cooperation of higher education institutions, the city and scientific centres concerning facilitating access to knowledge at academic level for the youth, development of lifelong learning and advanced education, improving the quality of education, internationalising didactic process and scientific research as well as strengthening the city s position as an European academic centre. An interesting example of successful activities with innovative nature is so-called Aviation Valley located in the Podkarpackie Voivodeship. In the situation when signs of personnel shortage appeared in this dynamically developing sector of the region, the Association of Entrepreneurs of Aviation Industry Aviation Valley initiated special programmes at schools of the region preparing specialists to work in this field. The initiative itself required adjusting teaching programmes at technical schools to the needs of the sector and providing further education of graduates of these schools. Although this initiative was launched by the abovementioned Association, it should be noticed that situations of this type should be mainly a domain of local authorities which within their territories are responsible for local educational activities and local labour market. Another success of local self-government concerning innovation policy is a modern approach to managing the city presented by the authorities of Łódź. Implementation of the project entitled "Łódź cluster as a network of cooperation concerning innovation in the region", based on observing mechanisms of regional development and cooperation with the business, is targeted at increasing development potential of the city and region through obtaining investors (from the state and abroad). Representatives of the local self-government aim at stimulating cooperation of enterprises with scientific institutions and local authorities, creating a centre of 139 1

140 service for entrepreneurs, establishing the Council for Innovation and promoting the city. Analysing achievements of local actors concerning innovation policy, one should also remembered about launching by the Self-government of the Małopolskie Voivodeship an initiative called Innovation Council of Małopolska. The objective of this undertaking is to run more effective, in comparison with the present, cooperation of science and business in order to provide by the Regional Innovation System conditions for further development of industry and enterprises (with particular focus on needs of the ITC sector) on the basis of the existing economic and intellectual potential of the region. The Council is a forum of communication for interested institutions operating in the region and is a leader and promoter of new solutions, is a link in passing ideas without distorting the competitiveness situation of higher education schools and research and development units. Cooperation within the Council of a team of scientists, self-governmental representatives and persons from business environment is intended to contribute to the success of the project entitled "Strengthening the Innovation Strategy of Małopolska <InnoRegioMałopolska>" which has been implemented in the region since the middle of One of practical sign of its effectiveness is activation of young graduates who, on the basis of financial solutions provided within the IROP, undertake economic activity establishing innovative enterprises. Another solution indicating a possibility of introducing innovative solutions by local entities is the Innovative Silesian Cluster of Clean Coal Technologies. The following units are involved in it: self-government of the Śląskie Voivodeship, cities: Jaworzno, Katowice, Gliwice, Rybnik, Jastrzębie Zdrój and Tychy, coal and power companies as well as scientific and research institutes. Entities involved in this project aim at developing technologies for making bituminous coal environmental friendly fuel which will provide an alternative for natural gas and crude oil. More generally, this undertaking is intended for contributing to social and economic development of the region through increasing innovation of traditional industries (mainly the coal industry). The role of public institutions in this initiative may mean that in the future it will be possible to provide tax allowances for companies operating within the cluster or to cover some investment costs from the public financial sources. Clusters A policy relating exclusively to development of clusters has not been developed in Poland yet. It can be stated that measures concerning support of cluster development are a part of innovation policy and regional development policy. Clusters as an important component for development of enterprises, a place of disseminating results of scientific research and transferring knowledge and innovation, should be and are supported at regional (regional operational programmes) and national level. Cluster structures at an early stage of typical cluster development exist in the Polish economy and are developing. Therefore, Polish clusters should rather be called "cluster initiatives" since at present the existing cluster structures are not strong and complex enough to be named as clusters

141 One of model examples closest to a standard, well-developed cluster, is a cooperative relation of aviation industry developing in the Podkarpackie Voivodeship. It is characterised by a complex and well-developed structure (in terms of the number of participants and quality of cooperation). Therefore, this cluster can be considered as a model example of a cluster with not only regional but also sub-regional nature. At present, works on detailed classification of clusters in Poland are ongoing. On the basis of cooperation of the Ministry of Economy with the Central Statistical Office, methodological works were launched in They aim at analysing clustering through secondary studies supported by statistical data bases of the CSO. The objective of the works is to develop a method of secondary analysis of statistical data which will enable in the future to identify in Poland the location of clusters or their early stages. The first statistical data concerning clustering in Poland should be available at the end of The necessity of supporting and developing clusters in Poland was emphasised in the strategic document entitled Guidelines for improvement of the economy s innovativeness in the years In the Guidelines Infrastructure for innovation" the importance of supporting common entrepreneurs actions with network nature, targeted at implementation of innovation undertakings was stressed out. Such activities are planned to be implemented for example through: - increasing awareness of entrepreneurs concerning benefits from cooperation with scientific units and other enterprises, - establishing efficient public-private partnership, - providing conditions for network cooperation, - supporting development of clusters, - supporting development of technological platforms in technologically advanced sectors. In the financial perspective of , programmes of supporting clusters were included in both, the nationwide operational programmes, as well as in regional operational programmes prepared for particular voivodeships. In the context of supporting clustering at national level, the most important is the OP IE which has already been mentioned. The OP IE includes instruments of support for the operating cluster structures. It is worth emphasising at this point that the OP IE does not refer directly to supporting clusters or cluster initiatives. The concept of a cluster was included in the definition of so-called cooperative relations and scientific and industrial consortia. The PO IE defines a scientific and industrial consortium as a group of organisational entities, including at least one scientific entity and at least one entrepreneur, which takes up a joint undertaking, on the basis of an agreement, covering scientific research, development works or investments aimed at meeting the needs of scientific research or development works. For supporting development of clusters the most significant in the OP IE is Measure 5.1 Support for development of supra-regional cooperative included in Priority 5 Diffusion of innovation. The objective of Measure 5.1 is strengthening a competitive position of enterprises through supporting development 141 1

142 of relations between entrepreneurs as well as between entrepreneurs and scientific and research units. Financing: joint undertakings by groups of entrepreneurs concerning counselling, training and investment project with respect to: establishment and management of the organisational structure of cooperative relations, preparation of joint plans for development of cooperative relations, joint investments of groups of entrepreneurs and investments implemented by cooperating entrepreneurs required for operation and development of the relation as well as marketing activities of cooperative relations. Beneficiaries: groups of entrepreneurs, business support institutions, scientific units. An example of projects implemented under Measure 5.1 is NUTRIBIOMED, a cluster established by the Wrocław Technology Park. The cluster comprises of six scientific units (Wrocław University of Technology, Wrocław University, Wrocław University of Environmental and Life Sciences, Poznań University of Life Sciences, Wrocław University of Economics, Wroclaw Medical University, Wrocław Medical Scientific and Technology Park and several enterprises). The NUTRIBIOMED objective is to create a stronger position of Poland in the world market of food supplements, nutraceutics and biomedical preparations based on natural raw materials and the Polish know how. The cluster covers also branches such as: food, cosmetics, chemical and pharmaceutics. The cluster's idea is not only to develop and implement new technologies through cooperation and implementation of new projects, but also to integrate all members of the cluster. The main objective is based on exchange of information connected with know-how, trainings, conferences, as well as support of knowledge transfer from academic centres to economic units. Apart from Measure 5.1, also Measure 5.2 Supporting business environment institutions providing proinnovative services and its networks of supra-regional importance is important for supporting clusters in the OP IE. Under Measure 5.2, support is provided for proinnovative business environment institutions such as: scientific and technology parks, technological incubators, centres of technology transfer etc. Financing: for improving business environment institutions (BEI)/networks of business environment institutions (BEI) through promoting cooperation within the network, exchange of experience, joint service for clients and development of the service offer with proinnovative nature. Under the measure, support will be granted with the intention to allocate it for co-financing preparation and development of a package of proinnovative services (consisting of counselling, training, information and network service/looking for a partner) for increasing innovativeness of enterprises operating in the territory of Poland, financing costs of providing selected services for entrepreneurs and joint initiatives undertaken by institutions associated in networks as well as co-financing operation of the unit coordinating the network activity (with the function of the network secretariat). Beneficiaries: business environment institutions /networks of business environment institutions 142 1

143 Under the OP IE support is provided for subregional clusters which means cofinancing exclusively projects implemented by final beneficiaries operating in the territory of at least two voivodeships. Potential support from the measure may, therefore, be granted to clusters or cluster initiatives which are strong and relatively large in terms of space. What is more, regional operational programmes (ROP) serve to support regional clusters, which means clusters located within the territory of one voivodeship. Support for clustering is also foreseen under the Human Capital Operational Programme, in particular Measure 2.1. Development of human resources for modern economy. The overall objective of this Priority is to improve the competitiveness of enterprises through higher investments in human capital of enterprises and improvement of the quality and availability of training and consultancy serviced supporting the development of entrepreneurship. This measure will be implemented through three sub-measures: Development of human capital in enterprises, Partnership for increasing adaptability and System support for increasing the adaptation potential of employees and entrepreneurs. These activities are directed to: enterprises and employees of enterprises, socio-economic partners, regional development agencies, employees of scientific facilities, research and development centres, technology parks, technology transfer centres, entrepreneurship incubators, training institutions, business environment institutions and centres, persons intending to start economic activity, government and self-government administration as well as the media. Also within the Operational Programme Development of Eastern Poland (OP DEP) Measure 1.4 is implemented: Promotion and Cooperation, Component: Cooperation, area: Creation and Development of clusters support for clusters in five voivodeships of eastern Poland These measures are implemented by the Polish Agency for Enterprise Development. Apart from the above-mentioned operational programmes, there are also other national-level measures implemented by PAED, including: pilot programme Support for cluster development financed under the national budget for 2007, pilot programme Support for the development of international cooperation between clusters in the field of research, technology or innovation development Innovation Express financed under the national budget for , Pilot programme Innovation Express provided support for international cooperation between clusters and foreign partners in the field of research, technology or innovation development. The programme was implemented together with foreign partners under the INNET project financed under the EU 6 th Framework Programme, where each of the partners financed clusters in its country/region. In the form of a competition, PAED carried out continuous call for applications for support until all funds allocated to this objective were spent

144 PLN 3.15 million was allocated to the implementation of the programme in applications were recommended for support and respective agreements were signed for the total amount of approx. PLN 2.8 million, and approx. 2.6 million was spent. Implementation of the abovementioned pilot programme ended in Currently, support for the above objectives is available under Measure 5.1. of OP IE. Moreover, due to the fact that clusters are a regional phenomenon, principal entities which support them include territorial self-governments. Under ROPs for individual voivodeships there are programmes and instruments of support which may be used by regional clusters. When analysing the contents of ROPs for in Poland it must be said that the highest probability of obtaining support is observed for the projects which cover initiation of cooperation links, which concentrate on: creating clusters, creating organisational structure and management thereof, marketing activity aimed at obtaining new participants, supporting best practiced and creating cooperation between members to ensure transfer of technology. Support may be granted also to investment projects aimed at providing the necessary technical background for cooperation links, including adjustment of facilities, acquirement of equipment, devices for research and development activity, supporting the activity of cooperation promoters, consultancy in the area of elaborating development programmes. The catalogue of eligible expenditure, which may be refunded is different in each regional programme. But in every such programme they are compliant with national guidelines for the eligibility of expenditure under structural funds and Cohesion Fund in The analysis of Regional Operational Programmes shows that individual voivodeships adopted different approaches to cluster support policy and cluster initiatives, consisting in: 1) direct indication of the possibility to support clusters from structural funds and assignation of a separate measure for that purpose (most common), 2) combining measures supporting clusters with other measures aimed at supporting entrepreneurship, business environment institutions or aimed at building relations between enterprises and R&D sector, 3) absence of a separate measure devoted to supporting clusters, while assigning special priority to those activities which contribute to cluster development through special provisions in the criteria for the selection of projects to be cofinanced under a given programme (e.g. in ROP for Podlaskie voivodeship). Parks and technology incubators Parks and technology incubators play an important role in supporting enterprises. They facilitate technology and knowledge transfer between scientific units and entrepreneurs. In Poland more and more often they are used as development instruments. Parks and technological incubators create opportunities for building new economic structures based upon modern technologies. They constitute an important instrument for the development of regions and cities and, in consequence, of the 144 1

145 economy as a whole. Competently prepared areas and buildings, attractive prices for premises, business counselling, promotion of the enterprises acting in the territory of the parks, constitute important factors of the parks' activity. Industrial parks also become more and more often a place for innovative undertakings, for instance, through the selection of the enterprises suitable to locate their investments on the parks area. The area of the park is a good place for the development of the bottom-up market processes, such as cluster development, which act on the border of the policies of innovation, region and industry. The development of the parks and the incubators in Poland was possible mostly due to the access to the EU resources. In , the infrastructure development for entrepreneurs was supported as a part of Measure 1.3. of the Sectoral Operational Programme Improvement of the Competitiveness of Enterprises (SOP ICE), implemented by the Industrial Development Agency. It resulted in the establishment of more than 60 centres for support of innovation and development of entrepreneurship in Poland. In the present financial perspective for the years , support is accessible as a part of Operational Programme Innovative Economy (OP IE), measure 5.3 Support for innovation centres. Financing: of the creation and development of innovation centres, located on the areas with high development potential, in particular the creation and development of science and technology parks, which consequently will provide good development opportunities for the enterprises from the new technologies sector, using modern solutions, and which will also provide access to complex services for both the entrepreneurs aiming at the introduction of the new solutions, and the scientists who want to start business activity. Beneficiaries: highly specialised business environment institutions, which provide services of high market and technology potential, including the managing authorities of science and technology parks, incubators of technology, advanced technology centres, efficiency centres, and other centres of specialised services for entrepreneurs, particularly SME. Only the projects included on the list of individual projects for the measure 5.3 OP IE are supported within this measure. Currently the list includes 12 individual projects, using the total amount allocated for the measure 5.3. Apart from the support at the domestic level, a possibility exists to use the support allocated for the park within the regional Operational Programmes, which support projects for science and technology and industrial parks. The scale of the initiatives for technology transfer and development of the existing entities alone, both in their infrastructural limb and the scope of services provided, may be considered a success Based upon the publication Ośrodki Innowacji i przedsiębiorczości w Polsce - Raport 2009 ed. Krzysztof B. Matusiak, PARP, Warsaw

146 In mid-2009 total number of 46 initiatives have been identified in Poland. From the regional perspective park initiatives are implemented in all voivodeships. The biggest number of technology parks are located in the Dolnośląskie Voivodeship (4) and the Małopolskie Voivodeship (3). In Wrocław, Kraków and Poznań there are two parks in each city. Park initiatives are present in the Lubuskie Voivodeship, the Świętokrzyskie Voivodeship and the Warmińsko-Mazurskie Voivodeship. Despite great expectations, political pressure and complete documentation, at the beginning of 2009 the initiative of Warsaw Technology Park was cancelled. Warsaw, despite the concentration of a significant part of innovative, scientific and research potential, remains without a park. In the researched technology parks, in mid- 2009, 583 entities, which generate , jobs found conditions for business activity. In mid-2009 we can identify 17 technology incubators, five more are under construction. The basis for the identification are measures pertaining to support for innovation of the tenant-enterprises. Liquidation of the technology incubator in Warsaw at the beginning of 2009 deserves attention. More than a half of the technology incubators in Poland (56%) operate as a part of technology parks. The development of the parks potential results in the incubators being only one of many elements. In the majority of the developed parks it is assumed that technology incubators are organised first, or their functions are implemented as projects, in the separated park area. More than 350 entities are active in all technology incubators, which create almost 2 thousand jobs. 36.1% of the tenants are newly-established enterprises, which were not even a year old while entering the incubator. In the majority of the incubators maximum period of stay is 3 years, in some there are no restrictions whatsoever. It is worth pointing out that the technological InQubator operating under the Poznań Science and Technology Park, Adam Mickiewicz University Foundation has been honoured by the global award Best Science Based Incubator The title has been awarded since 2002 by the Science Alliance organisation, which analyses the achievements of technology incubators following the instructions of the European Commission, and develops the global ranking of the branch. In mid we identify in Poland 87 entities offering assistance at technology transfer and access to information on the new technologies, programmes, or cooperation opportunities. The creation and development of Centres for Technology Transfer (CTT) is determined by the proximity of the scientific milieu, open to transfer of their achievements to the economy. The biggest number of Polish transfer centres has been identified in Kraków (9), Warsaw (8), Poznań (7), Lublin (5) and Łódź (4). On the regional level one in six CTT (16.1) is located in the Mazowieckie Voivodeship. Other regions of relatively big saturation are Wielkopolska (12 CTT) and Małopolska (10 CTT). The lowest saturation level is found in the Lubuskie, Opolskie and Świętkorzyskie Voivodeships, with 2 CTTs in each voivodeship. The group of the analysed CTTs is largely diversified; quantitatively Innovation Centres NOT (40.1%) prevail, which form a more or less regular network covering the whole country. Less than one in three centres (29.9%) operate within the institutions of the R&D sector, in which the academic institutions prevail (20.7%). Independent entities constitute 16.2% of the identified CTTs. Most often they take the form of a 146 1

147 foundation, an association or a company. Almost one in 10 centres operates within the park or technology incubator. Consolidation of links between public and private research In Poland following solutions supporting consolidation of links between public and private research were adapted: OP IE Sub-measure Development projects Objective: Research projects, aiming at direct application and responding to the needs of specific sectors of the economy or sectors of particular social importance, will be co-financed. Development projects are those aiming at the kind of research that could be implemented in practice. Beneficiaries: scientific units, including those which form scientific and technological consortia 12 (with the exclusion of R&D centres); universities, and non-profit companies established by the entities mentioned above. 2) OP IE Measures 1.4 and 4.1 Support for goal-oriented projects and for implementation of results of R&D works Stage I (Measure 1.4): Financing: R&D projects, support for projects covering technical, technological or organisational undertakings (industrial research and development activities) of entrepreneurs (individually or in cooperation with scientific units), until the moment of developing the prototype. Stage II (Measure 4.1): Financing: Preparation to implement and implementation of results of the R&D works financed under the measure 1.4, or the Technological Initiative, through investments (purchase of fixed assets and/or intangible assets), necessary for implementation of R&D works effected during the first stage. Beneficiaries: Entrepreneurs 3) Voucher for innovations The pilot programme Voucher for Innovations is one of the measures of the Polish government and PAED. It is meant to overcome the obstacles to increasing innovation of Polish micro and small enterprises, which result from lack of cooperation with the science sector. The programme aims at initiating contacts between the entrepreneurs and scientific units. This is the reason why the programme is directed to entrepreneurs, who, in the year of applying and during three calendar years preceding the application for support under the Voucher for Innovations programme, did not use services of any scientific institution pertaining to product or technology development or implementation. Support under the Voucher for Innovations programme is for the purchase of services pertaining to product or technology development, or implementation of the service performed by the Contractor, which aims at the development of new products or technologies, or at the improvement of the existing ones

148 Financial allocation The programme is accessible for years and financed from the State budget. Total budget of the programme amounts to PLN 30 million maximum. Resources amounting to PLN 7.65 million were planned for programme implementation in Agreements were concluded with 461 beneficiaries for the amount of circa PLN 6.8 million. The budget of the programme for 2010 amounts to PLN 8.58 million. The support for 1 entrepreneur is up to PLN To meet the expectations of the potential beneficiaries, on 26 February 2009 the catalogue of qualified services covered by the support was extended. Since 2009 the support in the form of the voucher for innovations covers not only R&D services (as it was the case in 2008), but generally speaking services pertaining to innovations to the development or implementation of the product or technology. 4) Technological Initiative (IniTech) The IniTech Programme is implemented by the National Centre for Research and Development 32. The programme aims at supporting cooperation of science and economy, leading to development of new products and technologies of high innovative and implementative potential. The main criterion in the selection process is, apart from the quality, the possibility of commercial use of the results of the proposed research. The programme covers the financing of: - the research stage (scientific research and development aimed at implementation in economic activity) - the preparatory stage (activities which prepare the results of the research stage to the use in economic activity) - the purchase of counselling services pertaining to innovation. The applicants who submit projects for co-financing may apply for co-financing of both stages, or one of them only. Co-financing may be applied for by: entrepreneurs, scientific units not being entrepreneurs, scientific and industrial consortia. The programme is accessible since 2007 and its total budget amounts to PLN million. 5) The programme of the Minister of Science and Higher Education Innovation Creator. Support for Innovative Academic Entrepreneurship The Programme Innovation Creator meets the need for mutual cooperation of the science and economy sectors. It is supposed to bridge the two through supporting the initiatives of students and academic staff pertaining to innovative undertakings and promotion of entrepreneurship. The programme is an incentive to improve the entrepreneurial skills, intellectual property management and commercialisation of 32 The National Centre for Research and Development (NCBiR) is a State legal person established to implement tasks pertaining to science and innovation State policies; it is active since 1 July 2007 on the grounds of the Act of 15 June 2007 on the National Centre for Research and Development 148 1

149 the R&D results of the academic staff. It helps provide favourable conditions for commercialisation of the results of the academic research and found and develop organisational units acting for technology transfer. Establishing communication standards between the scientific and economic sphere is the key programme goal. The beneficiaries may be: universities, academic incubators of entrepreneurship, technology transfer centres, scientific units, technology parks, R&D consortia, entities acting for science. The Ministry of Science and Higher Education provides for financing of development projects pursuant to the Ordinance of the Minister of Science and Higher Education of 18 February 2008 on procurement procedure, criteria and expenditure accounting for science allocations for development projects. A development project covers applied research or development works aiming at practical use, and its planned result is a defined use of the results in economic or social practice. Currently the Polish Parliament considers the package of Acts Building upon Knowledge Science Reform for Poland s Development, which is meant to change the organisation and functioning of science in Poland. The package of Acts consists of: the Science Financing Act, the National Centre for Research and Development Act, the National Centre for Science Act, the Research Institutes Act, the Polish Academy of Science Act and the Provisions implementing acts reforming the system of science Act. The project of the science financing act introduces the model, where the amount of money provided for research will be systematically growing, and the way of their allocation will depend on scientific achievements and the needs of the economy. The new way of financing complies with global standards, where research is funded from many sources, including the National Centre for Science, which is an institution independent from political decisions, and National Centre for Research and Development, conducting competitions for applied sciences. The proposed regulations guarantee increased annual financing of those institutions, so that until 2015 it could reach the level of 50% investment from the science budget, spent on particular projects implemented in the mode of competition. The project assumes as well the establishment of a new opinion body to the Minister of Science The Evaluation Committee for Academic Units. The committee will assess academic units according to globally recognized standards and rules of assessment. It will allow for real linking of the financing level with quality of the research. The project of the Research Institutions Act provides for transformation of the existing R&D units into research institutes, strictly controlled and systematically reviewed. The main task of the institutes will be R&D for the needs of the economy. Other tasks will include technology transfer and adaptation of the results to the expectations of the industry. Another proposition is the National Centre for Research and Development Act (NCBiR), which introduces changes to the provisions on NCBiR. The Centre was established in order to implement the State policies on financing applied research, of 149 1

150 strategic importance for Poland's development and security. The Act provides effective criteria for implementation of these tasks by the Centre. The Centre is to be fully transparent as to the financial decisions, taken on the competitive basis. The Centre will serve as a catalyst of changes in the area of cooperation of science and industry. It aims at increasing the entrepreneurs participation in both the announced competitions, and in financing of some of the Centre s tasks, which is currently decidedly too low in comparison with the most developed countries. Challenges for the future The main challenges pertaining to national and regional innovation systems are: a. weak cooperation of the R&D sector with the industry large proportion of research is not of applied quality, there is no sufficient transfer of knowledge from the academia to business, entrepreneurs are not interested in cooperation with R&D area, b. lack of awareness that innovation is the key factor in competitiveness only about 1% of enterprises acknowledges innovation as the source of future competitive advantage in their development strategies, c. general lack of the want to cooperate with other entities d. low financial resources for R&D and innovations e. the problem of coordination of innovation policies on central and regional levels. In Poland s specific conditions, widely defined soft barriers in contacts and cooperation of both the enterprises themselves and the economic and scientific entities, are of particular importance. Certainly they result from comparatively short development period of private enterprises, which is characterised by strong competition mostly on local markets. However, such a situation obviously results as well from a certain psychological disposition the lack of trust between the business partners, as well as the predominance of wrongly comprehended predatory competition, which does not regard cooperation in particular areas as an opportunity for the mutual development, or the improvement of an individual position in competition. The main challenge for the following years is overcoming the obstacles to successful support of new companies by the academics, and more successful activity of the higher education institutions in the area of commercialisation of technology. The results of the survey Academic Entrepreneurship (spin-off, spin-out development of enterprises) the need for development-oriented trainings show that the business activity of academic milieus (i.e. academic staff and senior students), is limited. The thesis is supported both by the data concerning the type and intensity of the cooperation experience of academic and business environment, and the entrepreneurial attitudes, and the urge to commercialise one s own knowledge among the representatives of this milieu. The results show, that almost half of the interviewed academic staff have never worked in a commercial institution. As little as one in three has more than 3 years of experience in working in a company, and only one in seven - more than 5 years of such experience. Only one in three academic staff members has ever cooperated with enterprises or institutions. As far as the 150 1

151 attitudes of the academic milieu toward conducting business activity of their own are concerned, the results indicated, that only 6% of the interviewees, including 2% of students and 9% of academic staff, have their own spin-off or spin-out enterprise (data from the first half of 2009). To sum it up, the data presented above, pertaining both to the level of the want to establish an enterprise of their own, and the period in which the interviewees consider its establishment show, that the academic entrepreneurship potential in Poland and the activity of the academia in business are rather low. The results of the survey concerning academic entrepreneurship show, that the interviewees expect problems in the situation of conducting their business activity, with low level of their own possibility to overcome these problems. The main problem, which may decrease the want to establish a company by the interviewees is the difficulty of combining business and scientific activity. Among the problems diagnosed this is the one which is most strongly bound with the interviewees attitudes toward the establishment of their own company, 63% of the interviewees claim such a problem may arise. At the same time 40% of the interviewees think they would have a problem with overcoming this barrier. The survey shows, that the public sector institutions should make effort to help overcome the identified barriers. On the other hand, the potential of business environment institutions should be strengthened. Their activities should provide integrated, complex solutions for the enterprises, including support in defining technological requirements, looking for new technologies, their assessment, acquisition and adaptation to the company s needs Investment, including Foreign Direct Investment (FDI) On the central level the government is responsible for the policy to attract FDI, its implementation in a macro scale (in Poland the body responsible for the task is Polish Information and Foreign Investment Agency, delegated to the task by the Minister of Economy 33 ), and implementation of the support instruments for the projects of critical importance for the national economy (implemented in priority sectors of a given specificity, or due to the project s scale). Polish Information and Foreign Investment Agency (PAIiIZ) helps investors enter the Polish market and make the best use of its opportunities. It guides the investors through all necessary administrative and legal procedures encountered at the project implementation, and also supports the companies already present on the market. We offer quick access to complex information on economic and legal environment of the investment, assistance at finding the right partners and suppliers, and also localisations. The Agency s mission is also the creation of the positive image of Poland in the world and promotion of Polish products and services. To provide the best possible services to the investors, the Agency established a network of Regional Investor Centres, which are aimed at improving quality of regional services for the 33 Polish Information and Foreign Investment Agency S.A. was founded on 24 June 2003 as a result of combination of the National Foreign Investment Agency S.A. (PAIiIZ) and the Polish Information Agency S.A.(PAI)

152 investors, and providing access to such information, as the newest investment offers and regional microeconomic data. The specialised offices employ the Agency-trained staff and are financed from the local funds. Their task is as well facilitating contacts between the investor and local authorities. The policy of attracting particular kinds of investment projects, i.e. the projects representing priority sectors or having particular qualities, is reflected in the support instruments accessible to the entrepreneurs domestic support instruments for investment projects with qualification criteria are presented below. Financial support of investment projects within the multiannual programmes Beneficiaries: entrepreneurs (lack of limitations as to the form or the size of the enterprise) planning investment in the following priority sectors: the automotive industry especially production of: automobiles, chassisses, trailers, automobile and car engine parts and equipment; the electronics sector especially production of: computers, radio, TV and telecommunications equipment, circuits and subassemblies (particularly for automotive, energy, household appliances and army industries); the aviation sector particularly production of: aircrafts, aircraft and aircraft engine parts and equipment, aircraft and aircraft engine service and maintenance, biotechnology particularly production of: white biotechnology for industrial processes and red biotechnology for medicine and healthcare (e.g. development of new medical products); modern service sector particularly services in: IT, BPO and telecommunications; R&D activity. Entrepreneurs implementing significant investment projects, regardless of the sector they represent, may apply for the support as well. Supported projects: The support on the basis of creation of new jobs may be applied for on the grounds of: a) implementation of a new production investment in priority sectors, resulting in creation of at least 250 new jobs of minimum total investment cost amounting to PLN 40 million, b) implementation of a significant new production investment, resulting in creation of at least 500 new jobs of minimum total investment cost amounting to PLN 1 billion, c) implementation of a new investment in modern services sector, resulting in creation of at least 250 new jobs, d) implementation of a new investment in the R&D area, resulting in creation of at least 35 new jobs for university graduates of minimum total investment cost amounting to PLN 3 million. In case of R&D investment support is granted exclusively for job creation for university graduates. Maximum support level amounts from PLN per an employee, for the investments creating up to 250 jobs, to per an employee, for the investments creating more than jobs. Institutions responsible for the programme are the Ministry of Economy and the Polish Information and Foreign Investment Agency

153 The procedure individual negotiations. Support is granted to the investor in the form of a multiannual plan approved by the Council of Ministers. The subsidy is granted on the basis of the agreement concluded between the investor and the Minister of Economy. Acceptance from the European Commission is obligatory (the duty of notification). It means that the payment of the support may not be effected prior to the receiving of such an acceptance. The support on the basis of a new investment may be applied for on the ground of: a) new investments in priority sectors of the eligible costs for support amounting to at least PLN 160 million and creating at least 50 new jobs, b) new significant investments of the eligible costs for support amounting to at least PLN 1 billion and creating at least 500 new jobs. The amount of support for one entrepreneur: maximum support level within the System for projects implemented in Special Economic Zones cannot exceed 15% of the eligible costs of investment and 30% in case of the projects implemented outside the zones. Corporate Income Tax exemptions Eligibility criteria Maximum amount of support Responsible body Investments of value no smaller than EUR in one of the Special Economic Zones (SEZ) Maximum available intensity of the regional support is used. For example: PLN 100 million (A) x 50% (B) = PLN 50 million (C) C = PLN 263 million (D) x 19% (E) investment expenses; B assistance intensity; C maximum support amount; D - tax-exempted income; E CIT rate. In order to use total public support for the investment worth PLN 100 million, in the form of CIT exemption, income amounting to PLN 263 million will be generated. The managing authority of the special economic zone Procedure Business permits in SEZ are issued on the basis of a tender or negotiations following the call for offers. Inclusion of an area to the Special Economic Zones: The criteria are as follows: - Creation of new jobs or eligible costs in the specific amount, - Development of new, innovative products, services or technologies, - investment in modern services, - Full-scale implementation of the already begun investments in SEZ. Changes to the SEZ boundaries are introduced in the form of the amendments to the relevant Ordinance of the Council of Ministers. The Minister of Economy presents the project of the amendments. Source: Polish Information and Foreign Investment Agency 153 1

154 Special Economic Zones Special Economic Zones (SEZ) are administratively established areas of Poland, where entrepreneurs implementing new investments may be exempted from the income tax of the income generated in the zone. The rules of their functioning are set in the Act of 20 October 1994 on Special Economic Zones (Dz.U. of 2007, No 42, item 274 as amended) and its implementing acts. The basis for the use of public support is the business permit for the zone. The entrepreneurs possessing such a permit may use the public support on the grounds of: - new investment costs; - creation of new jobs. The amount of support depends on the maximum intensity of the support defined for the area, where the investment is implemented, and on the amount of the eligible costs for the support. For the entrepreneurs using the support on the grounds of employment, the eligible costs for the support are the costs of two-year labour of the newly hired employees, while for the entrepreneurs, who decide to use the investment support the costs of the new investment. The conditions for obtaining support are: - business activity no shorter than 5 years, in case of SMEs 3 years. - maintaining property of the assets, to which the investment expenses pertained for the period of 5 years, in case of SMEs 3 years. Permits for business activity in the area of the zone are issued by the zone managing authorities, chosen on the basis of a tender or negotiations. Rules and way of effecting the tenders and negotiations are set separately for each zone by the Ordinance of the Minister of Economy of 2004 on tenders and negotiations and the assessment criteria for the enterprises to be taken in the zone. In Poland 14 Special Economic Zones exist in all the voivodeships. At the end of September 2009 total area of the zones amounted to circa 12.6 thousand hectares, with the statutory limit of the zone area of 20 thousand hectares. The location of the zones is shown on the map below

155 Figure 7 Figure Location of SEZs in Poland* * Cities and gminas forming each SEZ according to the 14 Council of Ministers ordinances of 15 December 2008 for each of the zones. Source: A Guide to Special Economic Zones in Poland in 2008, KPMG, based on data from the Ministry of Economy and the SEZs. Source: KPMG, based on data from the Ministry of Economy and the SEZs. Operational Programme Innovative Economy Measures provided under Priority 4 Investments in innovative undertakings cover, above all, co-financing for projects related to the implementation of the results of R&D works and investments of high importance to the economy

156 Co-financing may be awarded to projects of enterprises, both form the production sector, as well as from the services sector, within the scope of implementing new investments covering the purchase of innovative technological (including solutions aimed at reducing the negative impact on the environment) or organisational solutions. Measure 4.4 of OP IE New investments of high innovative potential Co-financing is awarded to the implementation of projects: of high innovative potential within the scope of purchase and implementation of new technological solutions in production and services, which is applied worldwide for no longer than 3 years or a technology, which grade of expansion worldwide in a given branch does not exceed 15%; which total cost does not exceed the amount of EUR 50 million and the value of expenditure eligible for support under the project is not lower than PLN 8 million and not more than PLN 160 million. These projects are to be aimed, in particular, at reducing the negative impact on the environment, inter alia, by reducing the energy, material and water consumption of the production process or provision of services, which result in the establishment of a new or significantly improved product or service. Moreover, additional premium will be awarded to new marketing or organisational solutions leading to the improvement of productivity and efficiency, purchase of necessary fixed assets and intangible assets related to the implementation of organisational changes. The level and amount of support totals from 30% and 70% of the value of eligible costs in line with the regional support roadmap. Minimum amount of support for investments of high innovative potential is PLN 2.4 million. Maximum amount of support per one entrepreneur and one project totals: for the investment part of the project PLN 40 million, for the advisory part PLN 1 million, for the training part PLN 1 million. Measure 4.5 of OP IE Support for investments of high importance to the economy The Measure provides for the possibility to support new investments of high innovation potential, preferably from the sector of modern services having considerable significance for economy given their socio-economic impact. According to the ordinance of the Minister of Economy of 8 May 2009 on awarding financial support for investments of high importance to the economy under the Operational Programme Innovative Economy, (Dz. U. No. 75, item 638, as amended), projects applying for the support under Measure 4.5 should fulfil the following criteria: Sub-measure Support for investments in the production sector joint criteria: 1. costs eligible for support awarded to investments are not less than PLN 160 million, 156 1

157 2. number of jobs newly created in relation to implementing the new investment is not smaller than 150, 3. the technological solution purchased or implemented under the new investment is applied worldwide for no longer than 3 years, or the value of worldwide sales of the products or services manufactured on the basis of this technology does not exceed 15% of the value of worldwide sales in a branch represented by these products or services, which is calculated according to the three-digit codes included in the provisions concerning the qualification of activity. The maximum intensity of support awarded for the implementation of the new investment under sub-measure cannot exceed 30% of expenditure eligible for support. Sub-measure Support for investments in the sector of modern services (type: common services centres, IT centres) - criteria 1. net employment growth at least 100 new job posts; Investments in the R&D sector 1. net employment growth at least 10 new job posts for R&D personnel; 2. costs eligible for support awarded to investments are not less than PLN 2 million, The maximum amount of support for projects implemented under sub-measure constitutes 30% of the value of eligible expenditure (excluding R&D projects). In the case of R&D projects implemented under sub-measure 4.5.2: for the investment part of the project the intensity of support is established in line with the regional support roadmap, i.e. it may amount from 30% to 70% of the value of eligible expenditure depending on the localisation of investment and the size of the enterprise applying for the support, for the training part it cannot exceed PLN 1 million and 45% of the value of expenditure eligible under the training part of the project for micro and small enterprises, 35% - for medium-sized enterprises and 25% - for other enterprises, for the advisory part it cannot exceed PLN 600 thousand and 50% of the value of the costs of these services, moreover, these periods are shortened to 3 years in the case of small and mediumsized enterprises. Instruments to attract direct investments at the local level At the local (also urban) level decisions are made on what types of investment projects are preferred within the area of the given city and, as a result, what support for their implementation can be offered at the local level there is a possibility to offer special incentives to the investors meeting the adopted criteria, which cover for example, exemption from property tax (declared by the gmina), support to the establishment of new jobs, preparation of infrastructure, obtaining land under lower 157 1

158 price, also under the Regional Operational Programmes (managed by the voivodeships). Exemption from property tax the possibility to decrease the tax rate or totally exempt an entity from tax for a specified period of time Eligibility criteria Maximum amount of support Competent institution Procedure Exemption from property tax: - the possibility to decrease the tax rate or totally exempt an entity from tax for a specified period of time Determined in the resolutions adopted by the Gmina Councils, which introduce the exemption Gmina Council Exemptions are available only in gminas, which adopted relevant resolutions within the scope of tax exemptions. If all the requirements set out in the resolutions are met a tax exemption can be granted, subject to a declaration that relevant application shall be submitted to the local authorities before the investment starts. Source: Polish Information and Foreign Investment Agency 4.7. Immigration Answer to question II.33. There are no specific legal acts that would treat returning migrants in a batter manner than all other citizens. As for now, the major task of public authorities within this scope covers provision of accurate and comprehensive information on all conditions of reintegration with the Polish labour market and society to the returning migrants or potentially returning migrants Therefore, from November 2008 an information campaign is carried out. A special internet website was launched within the framework of the campaign, which is addressed to the returning migrants ( This website is able to provide general information and assistance in individual cases due to the network of coordinators appointed in various public institutions. The accompanying promotion campaign focused on the information role of the website and on encouraging to make individual and responsible decisions within the scope of mobility. Since 2006 the unemployment has significantly dropped and employers started to have problems with finding employees with specific qualifications. This situation occurs mainly in such sectors as construction, agriculture, textile industry and catering. Certain local authorities (e.g. in Warsaw, Wrocław or Szczecin) attempted to recruit specialists among Polish migrants, but the effectiveness of these activities is unknown

159 4.8. Transport To be completed. 5 Mechanisms of coordination and cooperation Answers to questions from 60 to 68 from part II of the questionnaire Vertical cooperation Vertical relations between the government and territorial self-government Mechanisms of cooperation between the government and self-governments concerning vertical cooperation are included, among others, in the Act on the principles of implementing the development policy. It specifies entities subject to this policy and the mode of cooperation between them. Development policy will be performed by: at the national level the Council of Ministers, at the regional level the voivodeship self-government and at local level poviat and gmina selfgovernments. This provision means that the National Development Policy is carried out by four levels of public authorities which are subject to political modes of appointing and forming. What is more, the Act states that these are the government and voivodeship self-government which have the principal strategic role (e.g. joint preparation of regional operational programmes and a voivodeship contracts within them). The intention of the development policy is therefore to be the policy of cooperation, negotiation and dialogue between various public and social entities. In the light of the Act on the principles of implementing the development policy, a particular role in relation to cooperation with territorial self-government units will be played by the minister competent for regional development, especially concerning negotiations which involve preparing, discussing and implementing operational programmes. The Act contains provisions relating to carrying out consultations with units of territorial self-government, social and economic partners and Common Commission of Government and Territorial Self-government (KWRiST) concerning all documents connected with development policy. National authorities cooperate with a voivodeship self-government and expect from voivodeships that they cooperate with lower levels of local self-government. In the Polish legal system, however, territorial self-government units of various levels are considered entirely independent from each other and are assigned separate tasks. The Polish public administration is characterised by the fact that gminas, poviats and voivodeships are independent from each other there are no relations of hierarchy or subordination. The most important forum for developing a common position by the government and territorial self-government is the Common Commission of Government and Territorial Self-government. The principles of its operation are set forth in the Act of 6 May 2005 on the Common Commission of Government and Territorial Selfgovernment and on representatives of the Republic of Poland in the Committee of the Regions of the European Union (Dz. U. No 90, item 759). The tasks of the KWRiST include: 159 1

160 developing a common position of the government and territorial selfgovernment concerning economic and social priorities related to municipal management and functioning of the gmina and poviat self-government as well as concerning regional development and operation of the voivodeship selfgovernment; carrying out reviews and assessments of the legal and financial conditions of the operation of the territorial self-government; assessing the state of functioning of the territorial self-government in relation to the process of integration within the EU, including spending funds by territorial self-government units; analysing information about prepared draft legal acts, governmental documents and programmes concerning issues of territorial self-government including expected financial effects; providing opinions about draft normative acts, programmes and other governmental documents concerning issues of territorial self-government, and determining relations between the self-government and other bodies of public administration. Representatives of the KWRiST participate also in the work of Monitoring Committees for implementation of regional operational programmes (ROPs). Members of the Council of Ministers and other entities responsible for preparation of draft normative acts, programmes and other governmental documents concerning issues of territorial self government provide the KWRiST with drafts of these documents with a forecast of their financial results, with a request to issue an opinion. The KWRiST consists of 12 representatives of the government and 12 representatived of the self-government. The self-governmental party is represented by persons from nation-wide Polish organisations of territorial self-government units: the Union of Polish Metropolises, Union of Polish Villages, Association of Polish Districts, Association of Polish Cities, Union of Rural Communes of the Republic of Poland and Union of the Voivodeships of the Republic of Poland. Standing problem groups operate within the KWRiST. The Common Commission can also appoint ad hoc problem teams. The Act on public finance includes the obligation to ask units of territorial selfgovernment for an opinion about every issue which may influence income and expenditure of these units. A draft Act introducing a change in the level of own income or expenses of territorial self-government units requires determining the amount of financial results of these changes and providing by the KWRiST an opinion about it. The government, when passing the draft Act to the Sejm, encloses the Commission s opinion. The requirement of consultations with territorial selfgovernment units is included also in the Act of 2003 on income of territorial selfgovernment units. According to this Act, consultations of representatives of territorial self-government cover the most important governmental decisions 160 1

161 concerning the system of self-government finance, e.g. allocation of subsidies for selfgovernments. What is more, the most important sectoral institutions in which territorial selfgovernment units are represented are for example: the Tripartite Commission for Social and Economic Affairs, Supreme Employment Council, Public Benefit Works Council, Council of the National Health Fund and less known such as the Council for Motorways. Representatives of nation-wide self-governmental organisations are parts of them and care about taking into consideration interests of self-governments in decisions taken by these institutions, in their opinions and recommendations. The territorial self-government is not the only group of interest in these advisory and counselling institutions of the government, but the purpose of participating in them is to serve interests of self-government towards the government as well as trade unions, organisations of employers, ecologists or non-governmental organisations. The determined, habitual forms of contact between the government and organisations representing territorial self-government units are meetings of the Prime Minister, ministers and vice-ministers with marshals of voivodeships, nationwide Congresses of Territorial Self-government in the Republic of Poland, congresses of voits, mayors, presidents of cities, conventions of particular self-governmental organisations and the Congress of Polish Cities. The government is represented in these contacts by the ministers who are the most important for territorial selfgovernment units and also even by the Prime Minister. In the course of these meetings, claims are formed concerning government s policy relating to the selfgovernment while representatives of the government present principles of governmental policies influencing interest of the self-government. Voivodeship contract Creation of the grounds for policy of development of Polish regions which were defined in during the first editions of the voivodeship development strategies coincided with shaping the State's regional policy whose foundations were determined in the Act on principles of supporting regional development 34 and in the National Strategy for Regional Development (NSRD) 35. The key instrument of implementing the state's regional policy in relation to regions was planned to be, as stems from provisions of the above-mentioned Act, the Voivodeship Contract in the form of a civil-law agreement between the government and the voivodeship selfgovernment. The contract would specify development programmes and projects important for the region and financially supported by the government. The first edition of voivodeship contracts in Poland covered the period of and was characterised, as it appeared in comparison with the next edition, by the most complete preparatory cycle, the longest period of implementation and the largest amount of financial means allocated from the State budget. Voivodeship contracts of the first edition had two main points of reference: 34 See: Act of 12 May 2000 on principles of supporting regional development. 35 The National Strategy for Regional Development was accepted by the Resolution No 105 of the Council of Ministers of 28 December

162 a) for regions voivodeship programmes prepared on the basis of regional strategies; b) for the government so-called Support Programme 36, operationalising the provisions of the NSRD 37. On the basis of the provisions of the abovementioned documents the final content of the Contracts was negotiated assuming that they will coordinate activities of the government and territorial self-government units concerning development of regions. Preparation of Voivodeship Contracts for 2004 had a similar course and legal bases but less financial sources from the state budget and implementation time (a year) caused that the scope and impact of these Contracts were significantly smaller than in respect of the Contracts implemented in From 2004, further editions of the Voivodeship Contracts 38 changed their character in a significant way. They contributed to the reduction of the national dimension of the regional policy in favour of the EU cohesion policy and aimed mainly at providing financial means from the state budget for co-financing projects implemented within the Integrated Regional Operational Programme for (IROP) and the Community initiative INTERREG The Contract was introduced as a form of implementing the principle of subsidiarity at the moment of establishing the self-government at the voivodeship level in Poland. Initially it related to tasks commissioned to be implemented by voivodeship self-governments from the national level, which were financed from the state budget. After the Polish accession to the EU, the contract became an agreement for cofinancing of implementation of Community programmes carried out at the voivodeship level with the use of financial means from the state budget. Experts point out to imperfections and faults of the current system of contracts. Due to the above, nowadays within the MRD works on the National Regional Development Strategy, a new concept of a regional agreement is developed, so-called territorial contract, which would be one of the most important instruments of coordinating policies with a strong territorial focus. The contract is an instrument deciding about implementation of development undertakings which would not be carried out without it or would be implemented in another form and financed from other sources without the contract (e.g. only by the self-government without 36 See: Ordinance of the Council of Ministers of 28 December 2000 on accepting the Support Programme for , as well as the amendment to this ordinance of 11 April 2001 and ordinance of 27 May 2003 amending the Ordinance on accepting the Support Programme for Operationalisation of the NSRD in the Support Programme included mainly determining in detail the form, criteria and procedures of obtaining financial support by regions. 38 Apart from the and 2004 editions, two more editions of Voivodeship Contracts were carried out. They covered the periods of and Beginning in 2005, the legal basis, content and procedure of concluding voivodeship contracts was changed due to entering into force of the Act of 20 April 2004 on the National Development Plan. 40 Principles of concluding and construction of the Voivodeship Contract in Poland since 2010, dr. Adam Mikołajczyk 162 1

163 participation of the government and partners and without the financial package). The contract operationalises the areas/directions of policy activity included in the strategic documents at the national and regional level. When it comes to the principle, contracts should be a bilateral governmental and regional agreement, it is, however, possible that it will be considered in the future to conclude multilateral contracts with participation of e.g. metropolises. Until then, if we deal with a contract including undertakings concerning a metropolitan area, the main partner for negotiations with the government will be the marshal which is an entity responsible for earlier preparation of a common offer of all entities (for a metropolitan area the core city and gminas surrounding it as well as cities and other partners). The voivode supports the Minister of Regional Development in the area of regional policy. He supports the coordination of governmental administration s measures oriented territorially at the level of the voivodeship. The voivode has information on activities implemented in the voivodeship by sectoral ministers which have a regional impact and can also counsel the Minister of Regional Development concerning the tasks which may be subjects of negotiating a Territorial Contract. What is more, the voivode can recommend the shape of negotiation positions taking into account the specifications of a particular area. The voivode participates also in monitoring of implementation of the Territorial Contract along with the MRD. Voivodeship lower territorial self-government units At the self-government level no financial contracts are planned in legal acts. The activities performed by the voivodeship self-government do not affect the independence of poviats and gminas. The bodies of the voivodeship self-government are not supervisory or control bodies towards poviat and gmina bodies, and they are not higher-level bodies in administrative proceedings. Voivodeships can provide support, including financial support to other voivodeships or other territorial selfgovernment units. The same relates to gminas and poviats. Nevertheless, due to the fact that territorial self-government units are legal persons, which means they have own property, can acquire rights, undertake liabilities, they can also enter into agreements and contract not governed by special provisions in the law. An example of such initiatives may be the Self-governmental Instrument of Mazowsze Development Support which operates in the Mazowieckie Voivodeship. This instrument is unique on a scale of the entire state. All financial means for its implementation are from the voivodeship budget and are oriented on carrying out investments concerning construction of roads in gminas and poviats and development of education infrastructure. What is more, the voivodeship self-government can establish companies or have shares in them. For example the Self-government of the Mazowieckie Voivodeship has shares in Koleje Mazowieckie sp. z o.o. (Mazowieckie Railway public limited company), due to which it can influence the regional railway transport according to principles of voivodeship development included in the Mazowieckie Voivodeship Development Strategy

164 As it was indicated in the previous chapters, the self-government of the voivodeship (whose representatives are the Voivodeship Board and Marshal) play the basic role in the process of programming and management, as well as of coordinating development measures at the regional level. Its most important tasks are: 1. programming development measures of the region, 2. constructing the partner network for development at the regional level, 3. coordinating activities supporting development implemented within the territory of the voivodeship, 4. observing the course of processes of implementing the regional policy within the territory of the voivodeship through appropriate mechanisms of monitoring and evaluation. Ref. 1 Programming development measures of the region development and implementation of the Voivodeship Development Strategy, providing opinions about the development policy, including the regional development policy, which are accepted at the national and European level, participating in forums of experience exchange as well as presenting suggestions for improving the policy, participation in development of the NSRD and consultations of its provisions prepared at the governmental level by the MRD, participation in drawing up of strategic document necessary for implementation of the European cohesion policy in Poland, drawing up implementation documents, including documents which are a basis for obtaining development means from the EU, developing procedures and guidelines governing in detail the issues connected with implementation of the NSRD at the regional level, Self-government of the Voivodeship plays the role of a node of partner network composing the multi-level system of planning and implementation of the regional policy. It integrates activities of entities implementing actions at this level through for example the following: Ref. 2 Construction of cooperation network at the regional level stimulating creation of groups linked in terms of tasks for implementation of common undertakings and activities, involving other entities, linked in terms of tasks, in the processes of programming and implementing the regional policy at the voivodeship level, Experts point out that the issue of improving the cooperation mechanism between voivodeship boards/sejmiks and e.g. presidents of large cities should be considered, since not always the voivodeship development strategies overlap with city strategies cities which are driving forces of development in the polarization and diffusion model are not obliged to implement voivodeship plans and the voivodeship - the 164 1

165 municipal plans. Nevertheless, such cooperation seems essential for development of regions and is sometimes significantly hindered due to for example political or even personal differences or may just stem from different ideas. constructing networks and platforms with local partners and non-public entities as well as stimulating their active participation in a particular area of activity, consulting planned actions with local partners, ensuring links of the network at the regional level with the national one through presentation of the region s position in the strategic discussion with the government and the European Commission as well as through participation in works of the National Territorial Forum, ensuring connections of interregional networks to implement common development initiatives as well as to exchange knowledge and experiences concerning regional development, ensuring links of the network at the regional level with the European level through the activity of region representations at the EU level, membership in European organisations associating territorial self-governmental units and through participation in works and cooperation with the Committee of the Regions. Voivodeship self-governments ensure, within their competence, the coordination of activities undertook under instruments of various sectoral policies at the voivodeship level (e.g. rural development policy), including also coordination of instruments of the EU cohesion policy and the national regional policy. Ref. 3 Coordinating development measures in the territory of the voivodeship participation in works of the Coordinating Committee for development policy (KK PR) and appointing working teams within it, coordinating preparation and implementation of Territorial Contracts at the regional level, which includes: - Negotiating the amount of finance allocated by the self-government for implementation of Territorial Contracts, - Coordination of works on preparing a list of priority undertakings at the regional level and negotiating the content of Territorial Contracts with the government and other territorial self-government units (including cities) and non-public entities, as a representative of the government, managing operational programmes and development programmes at the regional level, participation in works of the Monitoring Committees for operational programmes at the national and regional levels, 165 1

166 participation in negotiating with the European Commission the documents which are crucial for obtaining development means from the EU in relation to means allocated directly for development of the region, certifying institutions implementing at the regional level. To sum up, the self-government of the voivodeship, when formulating the voivodeship development strategy and implementing policies of its development, cooperates particularly with: 1) local self-governmental territorial units from the area of the voivodeship and with the economic and professional self-government, 2) governmental administration, particularly with the voivode, 3) other voivodeships, 4) non-governmental organisations, 5) higher education institutions as well as scientific and research entities. What is more, voivodeships can establish associations, including also with gminas and poviats. For associations referred provisions of the Act of 7 April Law on Associations (Dz.U. of 2001 No 79, item 855) are applied. In order to establish an association at least 3 founders are required Horizontal cooperation at the national level Prime Minister/Coordinating Committee for Development Policy The Council of Ministers is responsible for deciding on the most important programme documents and approving national strategic objectives. Direct supervision over the strategic management is exercised by the Prime Minister. The adopted development management system increases the personal engagement of the Prime Minister at the stage of programming the strategic documents of the government. This, in particular, relates to the Long-Term National Development Strategy, which preparation and negotiation is coordinated by the Prime Minister or a representative appointed by the Prime Minister (Article 11 (1) of the Act of 6 December 2006 on the principles of development policy making). This document is developed concurrently in cooperation with the minister competent for regional development. Coordinating Committee for Development Policy (CC), which is situated in the Chancellery of the Prime Minister, is an opinion forming and advisory body for the Prime Minister within the scope of conducting development policy. CC aims at ensuring efficient coordination of development policy programming and implementation, as well as strategic monitoring and assessment of the instruments of its implementation. Taking into account the nature of the Committee tasks its operation is empowered by law (Article 35a of the Act of 6 December 2006 on principles of development policy making). CC was appointed by way of order No. 21 of the Prime Minister of 11 March The Committee is chaired by the Prime Minister or a representative appointed by him, which ensures direct and personal 166 1

167 supervision of the head of the government over the implementation of the national development policy. The composition of the CC is restricted; it is made of representatives of ministries most important (8 ministries) from the perspective of development policy making, i.e. minister competent for public finance, minister competent for economy, minister competent for education, minister competent for regional development, minister competent for rural development, minister competent for environment, minister competent for transport, minister competent for interior, as well as the Secretary of the Committee for European Integration and a Minister Member of the Council of Ministers (Director of the Board of Strategic Advisors to the Prime Minister). A Steering Group operates within the framework of the CC, which consists of the Head of the CC and a representative of the Ministry of Regional Development, Ministry of Economy and Ministry of Finance. Other ministers, invited by the head of CC, who are competent for issues of interest for the Committee's works, as well as representatives of the self-government party and socio-economic partners can also participate in the CC works. The major tasks of the Committee consist in marking out the directions of development policy and strategic programming, monitoring and assessment of the implemented development policy tools. The CC constantly monitors the implementation of the country's development measures and performs an annual effectiveness and efficiency assessment of public policies, which tasks form a basis for formulation and adoption of specific recommendations. In line with order No. 21, the Coordinating Committee, in particular, considers and issues opinions on the following documents: strategic documents within the scope of development policy (i.e. Long-Term National Development Strategy, Medium-Term National Development Strategy and Plan of National Spatial Development); programming documents within the scope of development policy presented by the ministers and heads of central offices; documents showing the progress in implementing individual strategies, plans and other adopted solutions pertaining to development policy shaping and implementation along with recommendations within the scope of their modification; drafts of selected regulations of strategic significance; results of and recommendations concerning analyses and research within the scope of development policy challenges; drafts of approaches presented on EU fora which concern strategic challenges, in particular within the scope of financial perspectives, reform drafts and cohesion policy. Minister competent for regional development, as well as other ministers and heads of central offices cooperating with the above-mentioned minister, submit programme 167 1

168 documents and materials on their implementation and assessment (including recommendations pertaining to changes in them), as well as all other studies concerning development policy programming, implementation and assessment in order for the CC to formulate opinions on them and adopted them. After the stage of interministerial negotiations these documents are forwarded to CC for consideration. Moreover, in order to ensure compliance of the current regulatory initiatives with the strategic objectives, the CC analyses the selected regulatory drafts of strategic significance on the request of the head of the Committee. If it is impossible to reach an agreement as regards the content of the regulatory draft the decision on the conditions for the continuation of work on a particular proposal is taken by the Prime Minister. After CC formulates opinions on the aforementioned documents they are subsequently considered and adopted by the Standing Committee of the Council of Ministers and the Council of Ministers. Working groups can be appointed within the framework of CC, which will consist of the members of these groups and persons invited to work with CC in order to implement tasks determined by the head of CC (i.e. Working Group for the development of the Long-Term National Development Strategy). Pursuant to order No. 21 the meetings of the Committee should be held at least once every quarter CC meets on a regular basis every two weeks. Chancellery of the Prime Minister and the Board of Strategic Advisors to the Prime Minister The Chancellery of the Prime Minister (analytical centre) and the Board of Strategic Advisors to the Prime Minister, which provide services for the Prime Minister, function as the entities establishing the needs and initiating the most important programme measures, in particular in a long-term perspective, assessing the effects generated as a result of applying given methodological and content-related standards as well as organisational procedures of the programming process, and recommending to the Council of Ministers acceptance or rejection of selected regulatory initiatives of strategic significance and enforcement of their compliance with the strategic objectives set out in strategic documents. Minister of Regional Development/Ministry of Regional Development The minister competent for regional development/ministry of Regional Development is the key centre from the perspective of development policy shaping and coordination. The competences of the minister competent for regional development within the scope of development policy programming and coordination were set forth in the Act of 4 September 1997 on government administration departments and in the Act of 6 December 2006 on principles of development policy making. The minister competent for regional development is responsible for establishing methodological and content-related standards as well as organisational procedures of the programming process, and enforcement of their observance by entities 168 1

169 engaged in the process in relation to all governmental policies forming development policy. The minister competent for regional development is responsible, inter alia, for: national development policy programming and coordination within the scope defined by means of legal acts, in particular development of the drafts of the Medium-Term National Development Strategy, National Cohesion Strategy (NCS) and other development strategies and programmes - in line with the MRD competences and decisions of the Council of Ministers; regional policy programming and implementation, including elaboration of the National Strategy for Regional Development (NSRD) and its possible modifications, development of the procedures and guidelines regulating the issues related to the NSRD implementation and approval of the procedures and guidelines related to the NSRD implementation, which were elaborated on the regional level; formulating opinions on the compliance of government development strategies and programmes with the Medium-Term National Development Strategy; preparing analyses and forecasts concerning socio-economic, regional and spatial development, including a report on socio-economic, regional and spatial development of the country; management of programmes co-financed from the Structural Funds and the Cohesion Fund; conclusion and settlement of voivodeship contracts and monitoring their implementation; coordination of the preparation of regional operational programmes by selfgovernments of voivodeships, conclusion of regional programme agreements and monitoring and assessment of their implementation. The major tool enabling the minister competent for regional policy to coordinate the programming of the national development policy consists in assessment of compliance of the elaborated government development strategies and programmes with the Medium-Term National Development Strategy (i.e. National Development Strategy ). In order for a document to be adopted by the Council of Ministers an opinion from the minister competent for regional development concerning the given document has to be issued in this respect. The assessment of compliance of the development strategies and programmes is carried out on the basis of Article 14 and Article 19(1) of the Act of 6 December 2006 on the principles of development policy making in line with the procedure adopted by way of Decision No. 6 of the Minister of Regional Development of 29 April 2009 on the manner and method of carrying out assessment of compliance of the draft development strategies with the Medium-Term National Development Strategy and Decision No. 7 of the Minister of Regional Development of 29 April 2009 on the 169 1

170 manner and method of carrying out assessment of compliance of the draft development programmes with the Medium-Term National Development Strategy. Such an assessment is conducted, first of all, on the level of compliance of the objectives and priorities, implementation tools and monitoring system of implemented measures. The formulation of opinions covers the most important development issues, including issues related to the social, economic and spatial cohesion, implementation of the sustainable development principle, set of indicators or strategy/programme financial framework. A significant element of the assessment of compliance is the criterion concerning cohesion of the objectives included in the document with the objectives of the renewed Lisbon Strategy. The formulation of opinions also covers formal and legal requirements (referring to the structure and content of the document) following from the Act on the principles of development policy making. The assessment of the investment projects carried out by the minister competent for regional development is also significant for coordinating development projects on the country scale. In line with the amended Act on public finance (Article 135) the minister competent for regional development formulates opinions on investment projects which value exceeds PLN 300 million (building investments of the national budgetary entities and appropriated allocations for financing or co-financing of investment implementation costs) in respect to their compliance with relevant development strategies referred to in the Act of 6 December 2006 on the principles of development policy making. Such an assessment is performed in the manner established in the ordinance of the Minster of Regional Development (pending). Every three years the minister competent for regional development also prepares a report on the socio-economic, regional and spatial development, which covers an analysis of development directions, assessment of effectiveness of implementation of the national development objectives indicated in the strategies and programmes, as well as recommendations for national development policy that take into account the development of regions, sectors or branches and spatial development. The report assesses the level and rate of development of the above-mentioned areas at the background of the EU. The report is submitted to the Coordinating Committee in order for the CC to formulate an opinion on it, and then it is forwarded to the Council of Ministers which adopts the report by way of a resolution. Minister competent for regional development informs the Sejm and the Senate on the adoption of the report by the Council of Ministers. The conclusions drawn from the report form a basis for the update of the existing development strategies and programmes. In this manner the minister competent for regional development has an impact on the possible modification of the existing programme documents. Minister competent for regional development is a member of the Coordinating Committee for Development Policy and a member of the Steering Group operating under this Committee and thereby the minister has the possibility to participate in the decision-making process pertaining to the development policy shaping and implementation

171 Implementation of such extensively defined competences within the scope of development policy requires a strong content-related and organisational background within the framework of which the key function is performed by the research and forecasting centre (Department of Structural Policy Coordination in MRD) operating under the MRD, which is responsible for: national development policy coordination within the scope defined by means of legal acts and development of the drafts of the Medium-Term National Development Strategy, National Strategy for Regional Development, National Cohesion Strategy and other strategies and programmes in line with the MRD competences and decisions of the Council of Ministers; formulation of opinions on compliance of the strategies and programmes with the Medium-Term National Development Strategy; recommending or/and performance of research and establishment of forecasts within the scope of socio-economic and spatial development; implementation of the national development policy evaluation process and coordination of evaluation works conducted under other public administration entities; conducting ongoing evaluation of the measures carried out under individual sectors of the economy, as well as broadly-conceived public policies. Ministries and central offices Heads of individual ministries are responsible for the preparation and implementation of sectoral strategies and programmes. Each ministry identified functional units responsible for strategic planning which will be gradually strengthened. These units are responsible for coordination of strategic works carried out in a given ministry, identification of the needs of the ministry in this scope and forwarding to the MRD on behalf of this ministry the necessary information on the progress achieved within the scope of implementing the development objectives designated in their areas. The minister competent for finance, which is responsible, inter alia, for the elaboration of the Multiannual Financial Plan of the State (i.e. plan of income and expenditure, as well as a profit and loss of the State budget prepared for four financial years), plays a special role in the development policy coordination process which consists in efficient and effective development policy funding. The Multiannual Financial Plan of the State considers Medium-Term National Development Strategies and directions of the socio-economic policy of the Council of Ministers. The Multiannual Financial Plan of the State includes, inter alia, a projection of State budget expenditure along with expenditure on the implementation of the national development measures. The Multiannual Financial Plan of the State constitutes a basis for the preparation of the budget acts for subsequent year of its existence, and it is up-dated on an annual basis

172 5.3. Horizontal cooperation at the local level, including urban level 41 The acts on gmina self-governments and poviat self-governments provide for the possibility to establish by these territorial self-government units unions [związki], agreements [porozumienia] and associations [stowarzyszenia]. Such entitlements of territorial self-government units follow directly from the Constitution of the Republic of Poland which stipulates that Territorial self-government units shall have the right to associate but at the same time in paragraph 3 it stipulates that The principles governing the exercise of the rights referred to in paras. 1 and 2* above by territorial self-government units shall be specified by the act. Unions, agreements and associations constitute different forms of organisation of territorial self-government units. Individual types of organisation of territorial selfgovernment units are established for different needs and, as a result, the principles of establishing and operation of the enumerated types of organisations of territorial self-government units are differently regulated by way of legal acts. The gmina and poviat unions are the type of organisations, which are most strongly regulated by law. The principles of establishing and operation of these types of unions are defined respectively in the acts on the poviat self-governments and gmina self-governments and they are the following. Gmina unions and poviat unions (hereinafter referred to as unions of territorial selfgovernment units) are always established in order to commonly perform public tasks, which under law belong to the gmina or poviat authorities. The acts on gmina self-governments and poviat self-governments provide for the possibility to establish unions of territorial self-government units, which consist of territorial selfgovernment units from the same level. Therefore, it is possible to establish gmina unions and poviat unions, but it is impossible to create unions which consist of both gminas and poviats. As an exception from this general rule the cities with poviat status have the right to establish unions and conclude municipal agreements with gminas. This right, which is included in Article 74 of the Act on poviat selfgovernment, in content-related terms, follows from the fact that the authorities of cities with poviat status exercise both the functions which the Act entrusts to poviat authorities, as well as functions which were entrusted to gmina (urban) authorities. Individual territorial self-government units set up unions and join them on a voluntary basis. An obligation for a territorial self government unit to join a union and participate in it must follow directly from an act. Resolutions on the establishment of unions of territorial self-government units are issued by the councils of interested territorial self-government units. The establishment of unions requires adoption of its statutes by each of the councils with an absolute majority of votes of the statutory members of the council. 41 The information used were taken from an article available at: htm 172 1

173 Unions of territorial self-government units have legal personality. The rights and obligations of territorial self-government units related to the performance of tasks delegated to unions are transferred to the given union as of the date of publishing its statutes. The register of unions of territorial self-government units is kept by the minister competent for public administration (at present it is the Minister of Interior and Administration). The union obtains legal personality after registration, as of the date of publishing its statutes. The union can lodge an appeal to the administrative court if it is refused to be registered. Assembly is a regulatory and control body of unions of territorial self-government and its resolutions are passed with an absolute majority of votes of the statutory number of its members. The manner of selecting the assembly of the gmina union and assembly of the poviat union is different: in the former case it is composed of voits (mayors, presidents of cities) of the gminas, which form the union, in the latter case the assembly consist of two representatives from each of the poviats forming the union, and the principles of representing the poviat in the union are defined by the Poviat Council. Statutes of the assembly of the gmina union can award more than one vote in the assembly to certain gminas. In such cases additional gmina representatives in the union are designated by the Gmina Council concerned. Moreover, on the request of the voit (mayor, president of city) the Gmina Council can entrust gmina (city) representation in the union to his/her deputy or a council member. A member of the assembly of the union of territorial self-government units can within 7 days following the date of adopting a resolution by the assembly lodge a written appeal against it, together with a justification. Such an appeal suspends the implementation of the resolution and requires re-consideration of the case, to which the resolution relates. An appeal cannot be lodged in case of a resolution of the assembly of the union which was adopted as a result of re-consideration of a given case. Moreover, it is impossible to lodge an appeal against a resolution of the assembly of the union of gminas, which was established directly by way of a separate legal act (i.e. the so-called obligatory gmina union in Warsaw was such a special case of union of gminas). Board is an executive body for the union of territorial self-government units, which is appointed and dismissed by the assembly of the union among its members. The board can consist of persons, who are not members of the assembly; however, their number cannot exceed 1/3 of the board members. Such a solution is, moreover, possible only if the statutes of the union provide for such a possibility. The financial management of the union of territorial self-government units apply respectively the provisions on gmina financial management or poviat financial management. Financial plan of a union is adopted by its assembly. Agreements are other, than unions, forms of cooperation between territorial selfgovernment units. The agreement of territorial self-government units aims at entrusting to one of these units the performance of defined public tasks (e.g. ensuring means of transport) for other territorial self-government units being parties to the agreement. Agreements on performance of defined public tasks can be concluded between territorial self-government units of the same level, but cities with poviat status can conclude such agreements (just like unions) with gminas

174 The least legally regulated form of organisation is association. The association can concurrently consist of gminas, poviats and voivodeships. Associations of territorial self-government units are established and operate in line with the principles set out in the Act of 7 April 1989 Law on Associations, but in order to establish an association of territorial self-government units it is enough to have three (and not fifteen, like in the case of other associations) founders. Likewise all other associations, each association of territorial self-government units must have statutes, general meeting of its members (or in this case rather representatives) being the highest authority in the association and a board. Associations of territorial self-government units can conduct economic activity within the scope in which it is possible for the territorial self-government units to carry out economic activity, but the entire income generate by such activity must be used for the implementation of the association s objectives set out in the statutes and it cannot be divided between its members. The associations of territorial self-government units are supervised by voivodes competent from the perspective of the seats of these associations. Unions of territorial self-government units established with territorial selfgovernment units from other countries constitute a separate type of organisation. The Constitution determines that "Territorial self-government unit shall have the right to join international organisations of local and regional communities as well as cooperate with local and regional communities of other states. The Act of 15 September 2000 on the principles of joining international organisations of local and regional communities by territorial self-government units defines the principles according to which territorial self-government units in Poland can join such unions. The cooperation between territorial self-government units under the abovementioned organisations which in practice constitute the so-called Euroregions has a much more limited character than the cooperation of territorial selfgovernment units inside the country. First of all, territorial self-government units participating in such organisations cannot transfer to them or for any of its members the performance of their public tasks or real estate or property rights to intangible assets which belong to them. If a territorial self-government unit wants to join an international organisation it needs an approval of the Minister of Foreign Affairs, who can also withdrew his approval for the participation of a territorial selfgovernment unit in an organization if the organisation s policy is contrary to the objectives of the national foreign policy. In order for a territorial self-government unit to join an international organisation its regulatory body needs to adopt a resolution with an absolute majority of votes of the statutory number of its members. In case of a voivodeship the organisation also needs to be compliant with the "Priorities of foreign cooperation of a voivodeship which were adopted by the Sejmik of the Voivodeship with an absolute majority of votes of the statutory number of Sejmik members and with an approval of the Minster of Foreign Affairs (Article 2 of the Act on the principles of joining international organisations of local and regional communities by territorial selfgovernment units in relation to Article 77(1) of the Act on voivodeship selfgovernment)

175 Examples of organisations of territorial self-government units existing in Poland: - Union of the Voivodeships of the Republic of Poland (the interests of selfgovernments of voivodeships are represented in the form of periodic meetings of the Marshals of the Voivodeships referred to as Convent of Marshals that develops, by unanimity, a common approach of the voivodeships towards governmental policies); - The Union of Polish Metropolises; - Association of Polish Cities; - The Association of Polish Spa-Communities; - Association of Polish Districts; - Silesian Union of Municipalities and Districts - Union of Cities and Gminas from the Basin of Parsęta River [Związek Miast i Gmin dorzecza Parsęty]; - Union of Gminas from the Kutno city region [Związek Gmin Regionu Kutnowskiego]; - Community Union Dolina Redy i Chylonki ; - Municipal Communication Union of the Upper Silesia Region [Komunikacyjny Związek Komunalny Górnego Śląska]. Experts emphasise that the provisions of the Act on self-government which was created 20 years ago should be amended in many places, inter alia, in places referring to the inter-gmina unions. Some experts also point out the problems with coordination of self-government entities that are independent from each other, and as a result they suggest considering the proposition to establish new consultation mechanisms inside the selfgovernment units, e.g. at the level of voivodeships by the Office of the Marshal of the Voivodeship. On the one hand, there are no legal barriers to horizontal cooperation, but on the other, there are no incentives to such cooperation. The representatives of urban self-governments point to the lack of complex legal framework e.g. absence of an Act on urban policy, which would regulate the issues related to metropolitan areas, integrated management of gminas covered by the metropolitan area from a single level. As for now, the Metropolitan Association of Upper Silesia (GZM) is recognised as the best developed and structured area. It unites 14 largest cities of the Silesia and Zagłebie regions: Bytom, Chorzów, Dąbrowa Górnicza, Gliwice, Jaworzno, Katowice, Mysłowice, Piekary Śląskie, Ruda Śląska, Siemianowice, Sosnowiec, Świętochłowice, Tychy, Zabrze. It is the most urbanized Polish area. The union was established for the purpose of applying special solutions to the Upper Silesia Conurbation, which is an exceptional entity on the national and European scale. It is an entity, which did not wait for the Act on metropolitan area and created tools enabling efficient management of the largest urban organism in this part of Europe i.e. Silesia Metropolis. Managing Board of the Metropolitan 175 1

176 Association of Upper Silesia was established, which is chaired by the President of Katowice Piotr Uszok. Within the scope of gminas and poviats fusion (part II.67 of the question) the government provides subsides to such linkage in the form of five percent higher share of gmina in the personal income tax for the period of 5 years Horizontal and vertical cooperation, using the example of experience of Gmina Puszczykowo (Poznań metropolitan area) Puszczykowo is a small urban gmina located at the river of Warta, 15 km away from Poznań, and surrounded by the National Park of Wielkopolska. It has a population of 9080 inhabitants. An advantageous location surrounded by forests determines the areas of city's development. There are no industrial plants and intensive business activity. Since mid 1990s, a rapid urbanisation boom has been taking place (bloom of residential contraction). Due to unquestioned values of nature and landscape and due to the efforts made by the city s authorities, in the last several years, Puszczykowo has been restoring its previous function of a resort by Poznań that offers high quality of living to the inhabitants and an opportunity of playing sports and enjoying recreation to the visitors. In the city s budget 4.5 million of deficit have been assumed for The income in the budget amounts to PLN and expenditure to PLN Due to absence of its own assets and possibility of gaining profits from them, as well as absence of possibility of increasing business operation tax profits, the city s income has been maintained at the same level for many years. The expectations of the rich community concerning the provision of increasing comfort of living and higher quality of services in the context of low income of the city cause that Puszczykowo is "preordained" to cooperate. All major municipal investments, such as water supply pipes, sewage system, waste management, construction of a shelter for animals, improvement of supra-local road network and city transport, are being implemented by the City in cooperation with the neighbouring gminas. Aquanet ( The first partnership in Puszczykowo was established in mid 1990s for the purpose of joint construction of a sewage treatment plant together with Mosina. In 2002, the City gave the water supply and sewage networks previously constructed for their own contributions, as well as share in wastewater treatment plant, by contribution in kind to water and sewage company "Aquanet" and joined it with 9 other gminas (Kórnik, Brodnica, Mosina, Luboń, Swarzędz, Czerwonak, Suchy Las, Murowana Goślina and Poznań). ( In general, this decision was beneficial for Puszczykowo, as a shareholder in Aquanet, it transferred the maintenance of water supply and sewage networks to a specialised entity and thus disposed of the problem of further investments of own revenues and ongoing maintenance of devices. However, as it has a small holding in shares, it cannot exert influence on the company s operation method or its operating 176 1

177 costs, as well as on the determination of fee tariffs for water supply and sewage disposal. All the remaining small gminas are in such a situation since they do not have the majority of shares, and the development of their network in practice depends on the decision of Poznań. It was the object of many disputes and negotiations between Poznań, the remaining gminas and the enterprise, and in consequence, trade-off solutions have been decided upon last year, in which the needs of individual gminas, investment capacities of Aquanet and long-term investment plan of the Company were defined. Puszczykowo, as one of the few gminas with small administrative area, is provided with a complete water supply sewage system, and currently spends small amounts of funds from the budget for the purpose of prolonging the network in the streets currently under construction. Municipal Utilities Association CZO Selekt ( Puszczykowo has never had its own landfill site since it was previously more beneficial to dispose of waste at landfills in the neighbouring gminas for a small fee than to financially participate in the construction of a landfill. Accession into the EU and suddenly stricter regulations concerning environmental protection caused a rapid increase in the cost of solid waste removal. It affected mainly the inhabitants. The City does not have its own plant for municipal services and uses the services provided by enterprises that were awarded licence to operate such business and that started to charge extraordinarily high fees for waste removal. In many neighbouring gminas that had their own landfills, due to environmental protection regulations, the problem of their removal emerged, as well as the pressure for change of the waste management method and the necessity of finding a common solution. At first, Puszczykowo joined the agreement, and afterwards the special-purpose association Waste Management Centre "Selekt" in Czempiń associating 16 urban-rural and rural gminas located to the south of Poznań. The second possibility for the City was to join the Waste Removal Association in Poznań, whose objective consists in the construction of a thermal waste disposal plant. The choice of the partnership and decision to join the Selekt association was reasonable. It was based on the calculation of costs of transporting waste at a longer distance and concerned the extending registration process of the association from Poznań whereas Selekt was already registered, and it was connected with the failure to present a business plan and unclear principles of relations between Poznań and the remaining gminas in the Association. Domination of Poznań as shareholder in Aquanet caused that several other gminas have chosen the association that was more partner-like in its assumptions, in which there is an equality of votes and in which decisions are made by factual majority. The hitherto financial participation of gminas, amounting to PLN 0.5 per inhabitant, after three years allowed for the selection of operator TEW Polska (owned by the German Toensmeier), approval of the plant operation concept and acquisition of construction permit. Rules of procedure for the order and cleanliness in gminas, common for all gminas are currently being developed and they are supposed to assure appropriate principles for waste collection and sorting ensuring an appropriate level of secondary raw material recovery. At present, organisation of secondary waste collection, including the assurance of waste sorting, collection of any household appliances and any problematic waste 177 1

178 looks different in each gmina. The gminas intend to take over the control over the waste and to introduce flat rate fee for waste removal, which will allow primarily to avoid waste incineration or abandoning it in forests and other public places by the inhabitants that want to avoid high fees. The Act on Waste Management does not provide for such a solution yet. Gminas of the Selekt Association are considering holding a referendum concerning this matter within their territorial jurisdiction. Difficult cooperation formula within the Association and withdrawal, in the meantime, of one of the gminas did not represent an obstacle for the decision made by the Association Management Board to appoint an external entity that will take over the role of service provider. It was possible due to the establishment of Association s office and organisation of effective monitoring of efficiency of activities thereof by the Association s Management Board and additional control by the General Meeting of Shareholders composed of voits and mayors of all gminas. Municipal Utilities Association, Shelter for Dogs Special-purpose association of gminas is as a rule established for the purpose of resolving a particular problem, but, as a legal structure, it is one of the more difficult instruments allowing an effective cooperation of gminas. It can be presented in detail using the example of special-purpose association that was established in order to construct a common shelter for animals. On 21 April 2005, in the poviat starosty in Poznań, ceremonial conclusion of the international agreement on the assignment to gmina of Kostrzyn of the construction and operation of the shelter for animals in Skałowo took place. The parties to the concluded agreement in the poviat starosty were the gminas of: Czerwonak, Kleszczewo, Komorniki, Kostrzyn, Kórnik, Luboń, Murowana Goślina, Pobiedziska, Puszczykowo, Suchy Las Swarzędz. Pursuant to the concluded agreement, in the gmina of Kostrzyn, in an area of 5 ha, a shelter was to be established for three hundred homeless animals from the territory of poviat of Poznań. The poviat of Poznań has allocated PLN 500,000 from the Poviat Fund for Environmental Protection for this purpose. The construction was to be implemented within the period of two years, on the basis of schedule approved by the gminas. Detailed principles of financial settlements have been defined as well, pursuant to which the shelter maintenance cost is to be borne by all the gminas proportionally to the number of inhabitants. It turned out that the agreement that imposed on the gmina of Kostrzyn the obligation of preparing the project and implementing the investment did not guarantee funds for this gmina for the employment of a project manager and any management rights that would enable the mayor of this gmina to run the project professionally. Additional tasks that the mayor assigned to the employees of the office under the scopes of duties in the gmina were not accepted enthusiastically by the employees that did not have time for them and treated them as the least important ones. Without financial motivation or even non-financial one, effective technical preparation of the project was out of question. After two years, it was decided to formalise the agreement and to establish an inter-gmina association. Inter-gmina associations in Poland constitute, as provided for in the Act on gmina self-government, a cooperation form for the entities of territorial self-government for 178 1

179 the purpose of performance of public tasks exceeding the financial or organisational capabilities of a single gmina. The associations have a legal personality and perform their statutory tasks on their own behalf and for their own responsibility. The principles of the establishment and functioning thereof are defined in Chapter 7 of the Act on gmina self-government. The same duties as in the case of any entity from the sector of public finance in this field of activity are imposed on inter-gmina associations conducting investment operations or operational activity of municipal infrastructure. The statute enumerates the closed list of all gminas that have declared the will to cooperate. The statute has to be subject to positive voting in the presence of all members of the Associations, i.e. by the councils of all member gminas. A veto of one of the councils in the issues concerning financing or form of the project and withdrawal of one of the gminas entails the change of the statute and repeated voting in all gminas. This way, the registration of the Inter-gmina Association "Shelter for Animals" has not been completed for the last 3 years and it cannot be foreseen in the nearest future. It is a huge problem for Puszczykowo that keeps stray dogs in a shelter that does not meet sanitary and humanitarian norms. The City does not have land and possibility of running its own shelter or of concluding public-private partnership since there are no areas that could be given in return for the construction and operation of a shelter. Thus it is willing to pay for this service. In the meantime, it has concluded an agreement with "Animalia" Foundation that, for the time being, provides assistance in the improvement of conditions of keeping the dogs and facilitates the adoption of stray animals. Association of the Micro-region of the National Park of Wielkopolska ( From 1998 to 2009, there was an informal agreement of 7 gminas located around the National Park of Wielkopolska with the Management Board of the National Park on the protection of environment. It was established due to the need of resolving the problem of wastewater management within this area and the ultimate solutions in particular gminas have not been approved by all gmina governors. Each year, another gmina assumed the role of leader and organised meetings during which at most an opinion was formed that supported some measures or opposed certain decisions. A breakthrough was constituted by two social projects financed by external funds "Dialogue in gminas of the Micro-region of the National Park of Wielkopolska" (2005) and "Micro-region of the Wielkopolska National Park Green Lungs of Wielkopolska" (2006) that have been initiated by two non-governmental organisations: The Foundation in Support of Local Democracy and Association "Partnerzy dla Samorządu" [Partners for the Self-government]. The consequences of the projects were specific solutions indicating the possibility of generating green jobs and sustainable development of tourism in areas that are valuable in natural terms. A strategy for the development of tourism for 7 gminas was created, the first common folder and idea for a tourist product, but mainly the will to cooperate. This two-year period of social and public partnership has shown how much we can achieve due to bottom-up initiatives, due to even small external financing and transfer of the initiative to the people from beyond the formal structures of self-government 179 1

180 administration. Social involvement: of schools, many other non-governmental organisation and inhabitants of 7 gminas has exceeded all expectations. During the new term of office of the self-government in , due to the initiative by the mayor of Puszczykowo (the former President of the Association "Partnerzy dla Samorządu"), the informal agreement of gminas was transformed into the Association of Gminas of the Micro-region of the National Park of Wielkopolska. It associates 7 gminas (Brodnica, Dopiewo, Komorniki, Kórnik, Mosina, Puszczykowo and Stęszew) located in the surrounding of the National Park of Wielkopolska, in two poviats (of Poznań and Śrem). Together they occupy the area of 800 km2 that is inhabited by almost 100,000 people. The association has been registered in December 2008 and in one year of its operation, it has already implemented three educational and intervention projects in the field of environmental protection, recreation and promotion of health. It is financed by membership fees of gminas (PLN 0.5 per inhabitant), but as an association of gminas operating on the basis of the Act on self-government instead of the Act of associations it has the status that is similar to the inter-gmina association, yet not a non-governmental organisation. On the one hand, it is an example of a public-public partnership that allows for the increase in the effectiveness of lobbying for necessary legislative solutions, e.g. in waste management or for common solutions in the field of respect for energy, and on the other hand, it is subject to the same limitations as the self-governments, related to the lack of opportunities for spending public funds for the support of e.g. eco-innovations in private households. With assured theoretically greater possibility of financing by fixed membership fees for each inhabitant, the association must not, obviously, use the 1% natural person tax write-offs for non-governmental organisations; it is also deprived of the possibility of applying for subsidies from numerous external sources of financing. From the point of view of the possibility of acquiring European funds for infrastructural investments (e.g. bike trails), a too low budget of the association does not guarantee the own contribution and makes the decision on the project implementation dependent on the councils of 7 member gminas. It does not constitute an indestructible obstacle, but it is a political element requiring long mediations with the councillors and, often by prolonging the decision-making process, eliminating from competition. At present, Puszczykowo with the remaining gminas has drawn up applications for joint promotion of gminas by a cycle of bike races and for the protection of horse chestnuts. However, there is no legal formula that would allow for the financing of thermal imaging research in private buildings as information motivating the inhabitants to undertake measures of thermal modernisation. Council of the Poznań Agglomeration ( The basis for the establishment of the Council of the Poznań Agglomeration was the need for resolving common problems of a large urban centre Poznań with neighbouring gminas related to it in terms of functioning. The most important ones include: facilitation of economic development by means of economic promotion, determination of urbanisation axes, extension and promotion of communication 180 1

181 structures, assurance of public and road security, improvement of conditions of living. The Council of the Agglomeration constitutes a cooperation forum for authorities of gminas that form the Poznań Agglomeration. Its population amounts to approximately 1 million inhabitants. It was established on 15 May 2007, pursuant to the "Agreement on cooperation" signed by the President of the City of Poznań, Staroste of Poznań and governors of 17 neighbouring gminas, including the mayor of Puszczykowo. Afterwards, three more gminas outside of the poviat of Poznań joined the Council of the Agglomeration: Szamotuły, Skoki and Śrem. The Council of the Agglomeration is primarily a platform for cooperation and sharing of information on the undertaken measures. The main goal thereof is the coordination of both common undertakings and the ones that were implemented by particular gminas and that could exercise influence on the local self-governments. In order to coordinate the works of the Council of the Agglomeration on a permanent basis, the members thereof decided to establish an Organisation Committee composed of 7 members (President of the City of Poznań, Staroste of Poznań, as well as voits and mayors of 5 gminas). During one year of its operation, the Organisation Committee put forward proposals for the establishment of the Metropolitan Research Centre (MRC) financed by all gminas (PLN 0.5 per inhabitant) that was to carry out a diagnosis of the state and propose the most favourable development conditions for the Agglomeration. MRC as a research unit was attributed to the Adam Mickiewicz University, however all universities of Poznań were invited to cooperate ( In the period September-October 2009, in the MRC of the AMU, a series of lectures was being held for the members of self-governments, non-governmental organisation from the business environment, under the name of "Agglomeration Academy". The objective of the Academy was to diagnose the most important development problems and conditions of the agglomeration, and a debate on the areas of its development, and in particular its cohesion and competitiveness. Preliminary research results of task forces in various fields have been presented: spatial planning, strategic planning, economics, territorial marketing, ecology, town planning, labour market, infrastructure and municipal services, road infrastructure, city transport, social services. The result of MRC s work, a year after its establishment, is the Green Paper of the Poznań Agglomeration that was an object of consultation in all gminas and that will be officially submitted to the Council of the Agglomeration by the MRC on 13 May 2010, on the date of third anniversary of signing the "Agreement on Cooperation". The City Council of Puszczykowo was very reluctant to adopt a resolution on co-financing of MRC. It claimed that there would be no control over the way of spending money and that academic studies would be created that had nothing to do with reality. At present, it is hard to decide on the value of the "Green Paper". The gminas intend to develop the "White Paper", i.e. the action strategy with operational plan, as soon as possible. Suggestions were made to establish a legal body that would deal with work coordination in order to prevent a situation that occurred in the case of agreement of gminas intended for the construction of a shelter for animals. Due to the friendliest legal form, the Organisation Committee proposed 181 1

182 to establish the Association of the Agglomeration. Which areas will be covered by future cooperation and whether it will be effective, will be shown in the nearest future. Some gminas did not wait for comprehensive solutions and commenced resolving the most urgent problems on the basis of mutual inter-gmina agreements, as practiced in the case of Puszczykowo and agreement with Mosina and Poznań on suburban communication. Linked Transport System within the Poznań Agglomeration In October 2009, in the Office of the City of Poznań, letter of intent on the establishment of Linked Transport System of Poznań (LTSP) has been signed. The signatories of this letter, apart from Puszczykowo, are the following: The City of Poznań, the City of Luboń, the Gmina of Mosina and the City and Gmina of Murowana Goślina. Its objective will be the performance of tasks of cities and gminas that have established the Transport System in the field of local mass transport and, among others, the following: modernisation and extension of the existing communication system, as well as acceleration of the integration process of road, tramway, air, railway and water transport systems. Until the establishment of the Transport System, the parties to the letter of intent expressed intention of concluding inter-gmina agreements. Guided by experience of other special-purpose associations, the agreement was first concluded only by 3 gminas (Puszczykowo, Mosina i Poznań) that wanted to establish cooperation and were determined by the need to assure public transport (gmina s own tasks) due to the expiration of three-year contracts for urban and suburban transport services. Under the pressure of time, the Gmina Councils have accepted the contents of the agreements and tariffs negotiated with the Management Board of the City Transport in Poznań. In Puszczykowo and Mosina, it was admittedly accompanied by concerns that, just like in the case of Aquanet, the tariffs would be determined by the Council of the City of Poznań, and other gminas would have no say, but the Management Board of the City Transport took all demands of gminas into consideration. In consequence, on 18 April this year, common ticket system has been introduced for transport within urban and suburban transport lines, and rationalisation of transport connections has taken place that introduced new runs on new routes eliminating previous doubled routes. Currently, negotiations are in progress between ZTM (Public Transport Authority) and PKP (Polish Railway) in order to introduce a common ticket system also for suburban railway transport. The ongoing works on the registration of the Association in this case did not hamper the measure that is possible even in the context of imperfect provisions of law. 6 Land-use and planning 6.1. Introduction Land management is an integral part of planned spatial management. On 1 January 1995 were introduced in Poland new legal regulations concerning land 182 1

183 management 42, defining the range as well as ways of proceeding in matters of assignment of plots to specific purposes. In general they have been followed in the acts dated July 2003 on spatial planning and management 43. Important legal instruments, contributory in realising the goals set in the spatial plans, were provided to the gminas by the act on real estate management of 21 July the It regulates the rules for municipal real estate management, defining among others the decision powers of the gmina selfgovernment (concerning the municipal property) as well as the responsibility of the self-government administration for the financial implications of the taken decisions. Both regulations set the shape of land management of the respective urban gminas. A conscious and rational use of the possibilities existing in the legal regulations related to spatial planning and real estate management, enables the community to become - on a local scale - a more progressive animator of activities that promote development. The issues related to geodesy are regulated in Poland by the Law on Geodesy and Cartography of 17 May Its range covers among others the following subjects: national land information system, record of land and buildings, national geodesy and cartography stock, as well as, stock-taking and record of infrastructure networks. The Central institution of government administration, responsible for the issues related to geodesy and cartography is the Surveyor General of Poland who is supervised by the minister responsible for public administration (currently Ministry of Interior and Administration). The Surveyor General of Poland realises its duties through the Main Office for Geodesy and Cartography. Conducting rational and effective activities in the field of land management by the public administration requires accessible, specifically prepared information. The requirements of a good partition of land both subjective and objective is fulfilled by the classification introduced by the Ordinance introduced by the Ministry of Regional Development and Building of 29 March 2001 concerning the recording of land and buildings (Dz. U. Nr 38, poz. 454; Annex 2: Ranging land, buildings and premises to registering groups and subgroups and Annex 6: Ranging land to particular types of land use [Zaliczanie gruntów, budynków i lokali do grup i podgrup rejestrowych and Annex 6: Zaliczanie gruntów do poszczególnych uŝytków gruntowych]). 42 See: law of the July 7 th 1994 on spatial management (o zagospodarowaniu przestrzennym. Dz. U. Nr 89, poz. 415 z późn. zm.). 43 Law nr: Dz. U. Nr 80, poz Law nr: Dz. U. z 2000 r. Nr 46, poz Declaration of the ministry of regional development and building dated the 24 th October 2000 concerning the declaration of law Geodesical and Cartographical Law (Dz. U. Nr 100, poz. 1086)

184 The geodesical surface of Poland is of 31,267,938 ha (100.00%) in which built-up and urbanised areas represent alltogether 1,529,364 ha (4.89%) where 46 : urban areas: 568,409 ha (1.82%), rural areas: 960,955 ha (3.07%). According to the classification of the Main Office for Geodesy and Cartography the built and urbanised areas comprise: Housing areas 268,510 ha (0.86%), Industrial areas 110,041 ha (0.35%), Other built-up areas 116,820 ha (0.37%), Urbanised non built areas, 51,240 ha (0.16%), Recreation and leisure areas 65,209 ha (0.21%), Used mining areas 29,974 ha (0.10%), Communication surfaces altogether 887,571 ha (2.84%), Including roads 773,204 ha (2.47%), railway areas 102,678 ha (0.33%), other communication areas 11,689 ha (0.04%). The analysis of the dynamics of changes of built-up and urbanised areas, viewed in a perspective of a time interval between provides interesting information. Taking the area of formal surface of Poland as a 100%, built-up and urbanised land represented: on ,452.8 thousand ha (4.65%), on ,489.7 thousand ha (4.77%), on ,493.7thousand ha (4.78%), on ,511.4 thousand ha (4,84%), on ,530.4 thousand ha (4,90%). 46 Wierzchowski M., Dudek J., Vargas-Tetmajer A., Land use in Poland. Situation for the , Institute of Urban Development, Krakow

185 This means that in the category of built-up and urbanised areas in the time span of 5 years the following has been observed: a total growth of: thousand ha, an average yearly increase of: thousand ha (1.01%), an average monthly increase of: 1, ha, an average daily increase of: ha Change of structure of urbanised and built-up land in Poland between Figure below shows the change of structure of urbanised and built-up land in Poland in The analysis of this time interval should be divided into two periods: l , when land in Poland was divided into communication land and housing estates; , when land in Poland was divided into communication land and total built-up and urbanised land, including: housing land, industrial land, other land

186 Diagram 7Structure of urbanized land and built-up land in Poland in other land ha in thousands tysiące ha ,22% area of the country 693 2,69% area of the country 840 2,88% area of the country 902 3,04% area of the country 952 3,21% area of the country H O U S I N G E S T A T E 3,39% area of the country in thous. ha 4,87% B U I L T - U P L A N D A N D U R B A N I Z E D T O G E T H E R in thous. ha in thous. ha in thous. ha in thous. ha in thous. ha 4,65% a r e a o f t h e c o u n t r y industrial land housing land in thous. ha in thous. ha ,84% area of the country 887 3,06% area of the country 3,13% area of the country 3,16% area of the country 3,17% area of the country 3,05% area of the country 3,00% area of the country 2,97% area of the country 2,93% area of the country 2,87% area of the country 2,85% area of the country 2,83% area of the country 2,84% area of the country ,84% area of the country L A N D T R A F F I C Source: Wierzchowski M., Dudek J., Vargas-Tetmajer A., Land use in Poland. Situation for the , Institute of Urban Development, Krakow