National Economy, October 2004

Contents of No. 10/2004

Sylwia Roszkowska – Investment and Economic Growth in the OECD Countries See summary
Grzegorz Tchorek – Nominal and Real Convergence and the Zloty Participation in ERM II See summary
Piotr Stanek – Towards Expansion of the European Central Bank See summary
Ewa Grzegorzewska–Ramocka – Development of the Corporate Social Responsibility Concept See summary
Beata Stępień, Monika Sulimowska–Formowicz – Closing the Competition Gap in Enterprise See summary

EUROPEAN INTEGRATION

Bożena Mikołajczyk, Agnieszka Kurczewska – State Aid for Small and Medium-sized Enterprises in the European Union. France’s Example. See summary

CONFERENCES – POLEMICS – REVIEWS

Book review: Joseph E. Stiglitz “Globalization and Its Discontents”, Wydawnictwo Naukowe PWN, Warsaw 2004, pp. 233, reviewed by Marek Lubiński
Review of the study: “European Union” vol. I and “Poland in the European Union”, vol. II, ed. E. Kawecka-Wyrzykowska and E. Synowiec, pp. 488 and 252, reviewed by Krystyna Michałowska-Gorywoda.

Sylwia Roszkowska - Investment and Economic Growth in the OECD Countries

The article is an attempt to analyse the impact of tangible capital formation on the process of economic growth in the OECD countries in 1985-2002. The Author makes a reference to theoretical models of economic growth, which allow for quantification of the relationship between the investment ratio and the economic growth rate. Next, results of empirical research conducted so far into the relationships between investment and economic growth are presented. Nevertheless, the analyses show that the relationship between the abovementioned macroeconomic variables is not unequivocal. The following parts of the article present statistical and econometric instruments, which allow to determine the strength and nature of the capital formation impact on economic growth process.

The main conclusion from the analyses is the positive and statistically relevant impact of investment on economic growth of OECD economies in the medium and long term.

Grzegorz Tchorek - Nominal and Real Convergence and the Zloty Participation in ERM II

A comparison of advantages and costs of joining the euro area reveals some asymmetry. Advantages will accumulate over a long period, while the risk of incurring costs will be the highest in the early period, when the Polish economy is to be susceptible to asymmetrical shocks. This is why optimisation of advantages and minimisation of costs of entry into the EMU require a high degree of real convergence.

At the same time, real convergence progress will to a major extent determine the fulfilment of nominal criteria. Hence, introduction of the zloty into ERM II should occur when it becomes clear that fulfilment of the fiscal and monetary criteria laid down in the Treaty of Maastricht will not be threatened at the time of presence in the exchange rate mechanism. If any criterion is not fulfilled, the period of remaining in ERM II may be extended which seems to be dangerous due to the risk of a speculative attack.

The main thesis of the article may be contained in the statement that reaching a high degree of real convergence is the condition of obtaining the most favourable net effect of currency integration with the euro area. Its sufficiently high level will perform three basic functions: i.e. optimisation of entry into the euro area, minimisation of risks and support for the process of nominal convergence.

Piotr Stanek – Towards Expansion of the European Central Bank

The article presents certain drawbacks of the present decision-making system of the European Central Bank (ECB), in particular in the context of the possible entry of new countries into the euro area. It also illustrates the main scenarios of the ECB reform, as proposed in economic writings, pointing out their drawbacks and advantages. In this context, the official proposal of the reform, put forward by the ECB Governing Council is discussed, along with the progress of the legislative procedure involved with the reform. Besides, serious reservations about this proposals voiced by leading economists are taken account of. They cover, inter alia, the issues of transparency and accountability to democratic institutions, as well as the alleged lack of a serious improvement of the ECB decision-making process upon enlargement of the Economic and Monetary Union. The article also presents main theoretical considerations involved with the decision-making system of the central bank with a federal structure, in particular based on the theory of time inconsistency of decisions concerning monetary policy. The problem of making decisions within committees with a federal structure, composed of persons with heterogeneous preferences or skills, was addressed as well.

Ewa Grzegorzewska–Ramocka – Development of the Corporate Social Responsibility Concept

The article presents the essence and development of the corporate social responsibility concept, from Adam Smith’s views based on the classic economy to the present approaches. An enterprise operates and fulfils a specified social role by disposal of social resources. The method and scope of its involvement in implementation of universal human aims, especially those relating to common future, constantly evolves with social development.

Nevertheless, it is not possible to impose on enterprises the responsibility for sustainable social development. This must be understood and accepted by enterprises, in accordance with expectations of the society at a given stage of development. In the Author’s opinion, strategic marketing can play a significant role in building corporate social responsibility.

Beata Stępień, Monika Sulimowska–Formowicz – Closing the Competition Gap in Enterprise

The article presents relationships between the nature of competition gap in enterprise and the contents of programmes devised to bridge that gap, and describes concepts and methods used in such endeavours.

Closing the competition gap starts with its identification, measurement, analysis and evaluation from the point of view of its source, its scope and the nature of threat posed to the existence of an organisation. The next stage involves drawing up a remedial programme. Depending on the kind and scale of deficiencies in the enterprise potential or strategy, such a programme may assume a form of a strategic, operational or mixed turn, or a form of step-by-step evolutional and partial adjustments.

The process of elimination of the competition gap, especially a complex and critical one, consists of two stages: a rescue stage (shortening of the front, potential decomposition) and a repair stage (stabilisation within the new domain and potential, build-up and consolidation of competitive advantages. At the rescue stage, the concepts of traditional restructuring and reengineering, lean management and outsourcing may prove useful. At the repair stage, the proposals presented by Total Quality Management proponents or by theoreticians describing the rules and functioning of learning organisations may be of practical relevance. In the process of drawing up programmes to bridge the competition gap the concept of benchmarking may be used, and implementation of those programmes should comply with the change management principles and theories.

Bożena Mikołajczyk, Agnieszka Kurczewska – State Aid for Small and Medium-sized Enterprises in the European Union. France’s Example

The article’s aim is to present the nature of state aid in the European Union and to demonstrate practical support instruments applied in France.

The Treaty establishing the European Community explicitly forbids any state aid that destroys competition, has a negative impact on economic co-operation between the Member States, or is incompatible with free market principles. Nevertheless, there are areas in which state aid seems to be indispensable. Assistance for small and medium-sized enterprises, mostly on account of their role in job creation and in maintaining social and economic balance, is considered the so-called bloc exemption, i.e. a sector which may be supported by the State.

State aid may take various forms. The article presents the system of subsidies, tax exemptions and reliefs, social exemptions and reliefs, “soft” crediting, guaranties. The role of public institutions supporting the SME sector and future lines of state aid have also been pointed out.