Archiwa Publication - Fundacja Wolności Gospodarczej

How Sweden Quit Smoking? Innovation and alternative products more effective than bans

FWG — Thu, 08 Aug 2024 08:56:52 +0000

How Sweden Quit Smoking? Innovation and alternative products more effective than bans

Autor: FWG

Sweden will be the first to achieve the goal set for EU member states and be recognized as a smoke-free country, i.e. one where less than 5% of the population smokes cigarettes. The documentary “How Sweden Quit Smoking” by Tomasz Agencki shows the remarkable synthesis of human creativity, innovation and personal responsibility that not only launched Sweden’s success in smoking-related harm reduction, but also points the way for other countries around the world. Sweden’s experience shows that alternative products that allow people to use nicotine in a safer way play a key role in this process.

Education , Publication08.08.2024

On June 20, 2024, We Are Innovation (WAI) and the Economic Freedom Foundation (EFF) organized an avant-premiere of the documentary film “How Sweden Quit Smoking,” directed by Tomasz Agencki. The event took place in the Atlantic Cinema in Warsaw.

After the film projection, participants had the opportunity to listen to a debate with the director and special guests, Prof. Maciej Glogowski (thoracic surgeon and oncologist) and Prof. Marcin Wojnar (psychiatrist, expert in addictions). The discussion was moderated by Marek Tatala, president of the EFF.

FIRST SMOKE-FREE COUNTRY

The documentary created by Polish filmmaker Tomasz Agencki, “How Sweden Quit Smoking,” delves into Sweden’s remarkable journey toward becoming a smoke-free country. Sweden is the country with the smallest percentage of smokers in the European Union – it’s less than 6% of the population today. In contrast, according to a study by the Polish Academy of Sciences, nearly 29% of Poles smoke cigarettes every day, and recent years have seen an upward trend. Sweden will be the first to reach the target set for EU member states and be recognized as a smoke-free country, i.e. one where less than 5% of the population smokes cigarettes. The rates found in Sweden translate into the lowest rates of cancer and other smoking-related conditions in the EU.

This unprecedented achievement in modern times, positively translating into health indicators in Swedish society, was not achieved with bans and subsequent restrictions, but by innovation and access to proven alternative nicotine products.

In the film, we are introduced to a rich array of points of views – from prominent scientists and doctors to innovators, activists, and artists. Each voice shows how important the interplay of science, public policy, innovation and personal determination is for the situation in Sweden. This is far more effective than prohibitions and paternalistic regulations. Tomasz Agencki’s film shows the remarkable synthesis of human creativity, innovation and personal responsibility that not only sparked Sweden’s success in reducing smoking-related harm, but also points the way for other countries around the world. “Other products such as snus, vaping, heated tobacco or nicotine pouches are much less harmful because they don’t contain all the tar that is in cigarettes”, states Dr. Anders Milton, a physician and former chairman of the World Medical Association council, in the film.

Watch the official trailer on YouTube>>

SWEDISH EXPERIENCE AND PUBLIC POLICY

Participants in the debate, which took place immediately after the film, reminded that it is not nicotine that causes cancer and other diseases associated with smoking traditional cigarettes. At the same time, nicotine, like many other psychoactive substances people use, is an addictive substance. Thanks to product innovations, we now have alternative products available that contain nicotine while being safer for consumers.

“In the film there was repeated mention of something called harm reduction. This is an extremely important approach for addicts who are unable to quit using the substances they’re addicted to (…). All those products with which we can replace cigarette smoking increase chances of quitting”, pointed out Prof. Marcin Wojnar, a psychiatrist and head of the Department of Psychiatry at Medical University of Warsaw.

“We will not transfer the Swedish model entirely to Poland. The film shows that Swedes have known snus for more than 200 years. But it is one of alternative nicotine products, recognized by the FDA in the United States as modified risk tobacco products, i.e. products with a modified risk of diseases that normal cigarette smoking causes. And this is the direction in which Polish and European policy should go, to consider creating our own model that pays attention to harm reduction”, said Prof. Maciej Glogowski, a thoracic surgeon and surgical oncologist, head of the Surgical Unit of the Lung and Chest Cancer Clinic, Maria Skłodowska-Curie National Research Institute of Oncology in Warsaw.

Prof. Marcin Wojnar also reminded that the percentage of smokers in Poland remains high. “In our country, decision-makers still do not accept the approach in the spirit of harm reduction, which is that addicts could switch to alternative ways of delivering nicotine, to those products that can reduce deaths in Poland from cigarette smoking”, Prof. Marcin Wojnar added.

Prof. Maciej Glogowski also pointed out the existence of the Bureau for Chemical Substances in Poland, which should study each of the alternative products, and the results of the studies should be made public and form the basis for conducting public policy.

“Before making the film, I didn’t know these statistics, and I was surprised, because every time we had interviews about nicotine addiction and the negative effects of cigarette smoking, I heard that Swedes have this problem solved thanks to innovations and alternative products. Why isn’t this obvious to everyone?” – director Tomasz Agencki asked.

“We are extremely excited to bring this important documentary to a wide audience”, said Federico Fernandez, CEO of We Are Innovation. “How Sweden Quit Smoking beautifully embodies innovation that solves problems and benefits society. We hope that the Swedish experience will catalyze similar life-saving innovations around the world.”

Artykuł How Sweden Quit Smoking? Innovation and alternative products more effective than bans pochodzi z serwisu Fundacja Wolności Gospodarczej.

I believe in economic freedom combined with responsibility – Arkadiusz Mus

FWG — Mon, 28 Feb 2022 15:37:02 +0000

I believe in economic freedom combined with responsibility – Arkadiusz Mus

Autor: FWG

I donate part of my money to support non-governmental organizations, the activities of which I consider important and close to my heart – said the founder of the Economic Freedom Foundation.

Foundation , Publication28.02.2022

Arkadiusz Mus, entrepreneur, owner of PRESS GLASS, President of Economic Freedom Foundation. Interview by Witold Gadomski, Gazeta Wyborcza.

According to the “Forbes” monthly magazine you are in 17th place on the list of the richest Poles with assets of PLN 2.8 billion [approx. USD 700 million]. What does the life of such a rich person look like?

– I did not inherit the fortune, but I earned it over 30 years. I started modestly and I needed to recover from the years when I had to tighten my belt.

I own my own jet, live in a big house, have my own golf course, probably the best in Poland, travel a lot for business and pleasure. Apart from my main business, I have a company which rents and services airplanes for entrepreneurs.

I donate part of my money to support non-governmental organizations, the activities of which I consider important and close to my heart.

Do you conduct business while playing golf?

– Business is done at the office, golf is my passion. I started 25 years ago in Międzyzdroje. A colleague who used to work in the US showed me the golf course, and when I, a man brought up in the countryside, saw this 60-hectare meadow, I immediately fell in love.

Your daughter pilots helicopters. Is that her profession or hobby?

– When I want to impress someone, I talk about my daughter because all my achievements pale in comparison to hers. Since the age of five she has been jumping on horses; she has always liked extreme challenges. On her fifteenth birthday, a pilot talked her into flying in a helicopter. They soared and he let her steer. She is crazy about flying. She has a license for five types of helicopters. There is no other person of her age in Europe with such flying experience. She works professionally as an instructor and as a full-time pilot in my company with a solid salary that pilots are entitled to. She also flies in airshows and trains helicopter aerobatics.

Do you come from a rich family?

– My father was a bricklayer, my mother a housewife. They also had a greenhouse, so they had to live off something in the winter. My father only did construction for six-seven months a year.

Did he have his own business?

– A very small one with two assistants. One of them was me during summer vacations. He never worked in a state owned company; he was always a craftsman, in the positive sense of the word.

Did he give you any property or resources?

– No, because we didn’t have much money. It was an ordinary family, and our only asset was a rather large semi-detached house. My parents gave me an education; I was the only student in the area, which was a great promotion, because in those days studies were not common. And to study law – you really felt important.

Where did the ambition to graduate from university come from?

– In my extended family there were people who had a higher education and were engaged in some business activities. We were an aware and curious family. When we had more money, we went on trips to Czechoslovakia and Hungary. This allowed me to look at the world a bit more broadly, to go beyond the confines of my home town. For my parents, the most important thing was that their son obtain a good profession, and they pushed me to go to the polytechnic. I attended a technical secondary school for construction, specializing in road and vehicular bridge construction. So the Polytechnic in Częstochowa would have been the most natural choice. But I am not a mathematician, I am more of a humanities person, and a friend who studied law said that it was cool.

What year was that?

– I started studying in 1983.

After technical secondary school it must have been difficult to get into law studies?

– I failed the first time. I was deficient in geography, history and Russian. I had to get tutoring. The second time I got in, extra points for my origin helped [in many communist countries extra points were given for applicants from the countryside – editor]. I wanted to apply for a lawyer traineeship, but law professions were very closed and I was from nowhere. And I was not a top student.

Were you involved in the opposition?

– No, I was far from Solidarity. I didn’t experience it. I didn’t sleep on Styrofoam, and I didn’t even have the opportunity.

Liberal circles were developing dynamically in Wrocław in the 1980s.

– I studied in Katowice and I don’t think there were many liberals there. In any case, I didn’t meet with this milieu then.

But you became a prosecutor.

– It was a very bad time period. I qualified as a prosecutor in 1989 and worked until 1991. There was a high turnover. After the change of power many people left, and these were the coolest, most collegial ones. At that time I didn’t judge them because of their past and I don’t know in what trials they had participated. But there were a few whom I liked left, and I took over their responsibilities. Those who remained, and they were smart, started making money by taking advantage of the market economy. My salary at the prosecutor’s office was USD 20, and I saw people around who had piles of German Deutsche Marks. They traded all sorts of things, they cared little about their work.

I went to the prosecutor’s office as an idealist. I dreamt that I would fix the world, that I would be a sheriff right out of an American movie. Unfortunately, in contact with reality, the ideas failed. The work was burdensome, there was a lot of uncertainty around, dealing with policemen, militiamen, systems, arrangements, deals. After two years I resigned and went into business.

Do you remember the cases you dealt with as a prosecutor?

– Petty crimes and criminal cases.

Did you have an idea for the business right away?

– While I was still working in the prosecutor’s office, I opened a business for my wife. Wholesale food products. We would start work at 4-5 a.m., then at 9 a.m. I would go to the prosecutor’s office, work until 2 p.m., and then back to the warehouse in the evening. My father-in-law was the manager of the agricultural cooperative. This made the business easier.

Finally, I left the prosecutor’s office and in February 1992 I took over a bankrupt company producing insulated glass, founded by a Swede, which employed a few workers. Someone in the family was making windows at the time and I knew there was a demand for such glass. I said goodbye to trading with no regrets, I don’t have a keen eye for sales.

Why did Swede get rid of the company?

– He didn’t have enough money for current operations. It was the beginning of the 1990s and at that time there was such a business model: someone brought machines from Germany worth 5 thousand Deutsche Marks, the brother-in-law’s appraiser estimated their value in the bank at 100 thousand, the bank gave him a 50 thousand loan, and the company went bankrupt. You could say these were the start-ups of the time. I don’t want to say that the Swede’s idea was exactly like that, in any case, the production didn’t work very well, but I succeeded. I leased these machines, in deplorable shape, arranged in a technological line in a hall that used to be a bath house for miners. The whole plant was 500 square meters and employed a few people. I had no raw material to produce and no knowledge of how to produce.

And did you have money to start up?

– I borrowed from all of my family, friends and from exchange offices to pay the first installment – 100 thousand Deutsche Marks. I had 20 thousand Deutsche Marks saved up from the wholesalers. I took a loan from a bank against the collateral of my apartment. I borrowed from several exchange offices, from the first, the second, the third, and what I borrowed from the fourth I paid back to the first. This worked for several years. The debts were huge, but I paid them back. My father instilled reliability in me. Honesty is a fundamental value for me. Many times I owed people money, but I was never late in paying them back. For 10 years I worked six-seven days a week, 12 hours non-stop. That was the first reason for my success. Apart from that, the demand for insulated glass was huge and there were not many such factories in Poland. Some people tried to bribe me to get this glass, the price was not important.

And who taught you this?

– I don’t know much about technology until now. I had other tasks. For example, I had to get 2,000 Deutsche Marks for customs duty overnight. The technology at the beginning was simple. Today it is out of this world. In 1994 I could buy an 1800 sq. m hall in Nowa Wies for PLN 200 thousand. I took a loan and bought it from the trustee in installments. The dynamics were enormous. At the beginning we started one shift, in a month the second one, and the next month the third one. We worked 24 hours a day, six or seven days a week. In the first year we made sales of PLN 2.5 million, in the second PLN 7.5 million, and in the third over PLN 14 million. And employment was growing fast. In the mid-1990s the British concern Pilkington took over the window glass factory in Sandomierz. They were looking for customers, someone like my company. They started glass production and couldn’t stop it, so they sold glass with deferred payment for a year. That was another source of my success. I was able to turn over money for a year, which was a relief given the high inflation rate at the time. Those were the days. Money was made fast and sometimes lost even faster.

Let me tell you an anecdote. I went to the Austrian company LiSEC to buy machinery. It is a global company that develops and manufactures systems for cutting and sorting glass. We negotiated for two days and finally came to an agreement. I said, everything is great, I just don’t have the money. They trusted me and agreed to postpone payment. I seized the moment. In the 1990s all the companies wanted to enter Poland very eagerly, and in Poland nobody had any money.

Why did they trust you in particular?

– I was not a liar, I did not show any exaggerated business plans, I just explained that the market for insulated glass in Poland was growing dynamically, and so were my sales, so I would be able to pay off the machines. At that time everyone brought old machines from the West, while the equipment I bought was new, which ensured quality. We had a much higher productivity. So again, we were ahead of the competition. Then I invested in other equipment and subsequent investments made it possible not only to increase production, but also to raise quality. I imposed new standards on the market and the competitors could not keep up.

Who were the customers for insulated glass?

– At first Stolbuds, which were state-owned window factories. They had poor machinery and were slowly going bankrupt. Some were taken over by foreign companies. Private window manufacturing companies were also established. Today, 10 to 15 percent have survived, while the rest have gone bankrupt.

When did you decide to sell glass abroad?

– The breakthrough came in 2004. We started exporting to Scandinavia. In Poland glass cost EUR 10, there EUR 40. We never competed on price. Our prices were attractive, but lower than those of Swedish producers by 10-15 percent. We respected each other very much, we wanted to show that we were not a cheap supplier, but a supplier of good quality products. What mattered was service and punctuality. This is what the Swedes taught us.

Journalists sometimes ask what the European Union accession brought us. Everyone says: open market, no borders. Well, not only. The most important thing for me was to have contact with western entrepreneurs and managers who taught us a new way of thinking about business, ethics, civility, negotiating. We learned this from the Swedes, Germans and Austrians. The fact that we could sell to the large EU market was important, but without these lessons, which we got for free, we would not have succeeded.

Could you give an example of such a clash with a different business culture?

– Western entrepreneurs had no time for meetings. Polish ones then had to meet every two weeks and were constantly changing arrangements, prices, delivery dates. For western entrepreneurs or managers, what was agreed once was then sacred. The western partner wanted to sign a contract with us for a long time, but we had to keep to all the agreed conditions. We all had to learn to abide by the rules, starting with the simplest ones: if we make an appointment for seven o’clock, we don’t make it for quarter after seven or quarter to seven, because that’s better.

Did you do any further training, study for an MBA?

– No. I graduated from law school, and then I learned business and management in practice. One of the defects that I never got rid of was the complex of a Pole in relation with my western business partners and I wanted to fight it. I was very impressed by people who had big companies and ran international businesses. I learned a lot, I watched, I listened, I was open to knowledge. Poles usually know better. I think I know less.

We have many friends in Sweden and Germany who still wish us well despite the government’s anti-EU propaganda. When they saw that I was listening to them, they shared their knowledge and were happy to be my mentors. I remember what my friend in Germany told me: “Arek, if you build a business model based on the lowest prices, someone will always be cheaper than you. You have to have the best suppliers, the best raw materials, have a great product at a good price. Then you will stand out.”

And what could they learn from you?

– …a wild imagination and maybe the ability to make quick decisions.

Did you have problems finding employees?

– Not in the ’90s, because there was a lot of unemployment. I also have a good eye for people. I hire many young people after graduation. Even in recent times, when manpower starts is starting to be scarce, we have never had a problem with it.

What are the salaries like?

– I try to pay 10-15 percent more than the average around the plant. We have 14 plants around the world and of course they vary in terms of wages. But we always pay a little higher than others. Once or twice a year we examine that. Of course, there will always be malcontents or those who think they should earn more. I learned discipline at home, I was brought up according to classical liberal principles. The invisible hand of the market has always kept me upright. I also demand discipline and honesty from my employees. I explain that we want to pay more, but we also demand more. Not everybody likes that. Some people prefer to earn 20 percent less, but not to be asked to do too much. Over 30 years, we have replaced several key employees.

Is there a trade union?

– No.

Do you not value unions?

– I do not. There was a different role for unions in the 19th century, in the 20th century, and today. I think that they are completely unnecessary. A good entrepreneur, the owner of a plant, is the best representative of the interests of workers. If they want to build a company in the long term, they have to understand the interests of employees and go out to meet them.

For this there is no need for any trade unions, which often destroy energy in workplaces and are an unnecessary cost. No union in a private, ethical company is necessary. And a company where a union would be useful will sooner or later cease to exist anyway. Trade unions are strong in state-owned companies that are poorly adapted to market rules, in companies where nepotism is rampant.

There are also labor disputes in large corporations, such as Amazon. mBank sacked a union activist on disciplinary grounds. Do you support such actions?

– There are many disputes that arise not only from the fault of the employer. Many times the employee is at fault. Each case should be considered on an individual basis.

And the observance of the labor code?

– This is the role of the National Labor Inspectorate, the court and the employees themselves, who today are well educated in matters concerning the Labor Code. An employer cannot violate employees’ rights with impunity. Many times the employer offers the employees much more than it is stipulated in the labor code. Companies compete for employees, offering various bonuses that are not provided for in the code, additional health insurance, special vacations, excellent conditions in the office and other non-wage benefits. The free market is essential not only for businesses, but also for employees, because competition creates valuable, well-paying jobs.

You said that the current technologies used by your companies are “out of this world”. What is so modern about them?

– We rely heavily on automation and robotization. We develop technologies together with our machine suppliers. This is one of the elements of our future competitive advantage. In this way, we increase production efficiency and reduce the number of errors. Each of our new plants draws on the experience of our predecessors; even small improvements make a difference. We have demanding customers who appreciate our efforts to improve product quality.

Where do you get new technologies from?

– I have very good contacts with suppliers. Now it is us, producers, who create technologies, because machine suppliers have no sense of the market, trends, what should be changed, whether the panes should be larger or smaller.

How did it happen that you began to produce your glass abroad?

– I came to the conclusion that it is not economically viable to create large centers from which customers throughout Europe would be supplied. It is better to establish plants in different countries. Croatia joined the EU in 2013 and we built our first foreign plant there in 2014. We supplied a lot of goods to that market, and they required punctuality and the quick handling of complaints. In December 2014, we established a second overseas company, Press Glass UK Ltd, responsible for developing sales of façade glass and interior glass structures in the UK. In 2015, we bought 100% of the shares of companies belonging to the Glass Systems group, which had four factories in Britain. In June 2016, a subsidiary was established in the U.S., which bought a minority stake in Heliotrope Technologies Inc. a company developing technologies related to the production of smart glass. In 2017, our U.K. company acquired two Pilkington plants, in Cumbernauld and Barnsley, and the U.S. company bought 100 percent of the share capital of Stoneville-based Glass Dynamics Inc. which specializes in façade glass. In 2019, a second U.S. facility was established in Ridgeway, just across the Virginia/North Carolina border. This year, we began construction on our newest and newest plant in Kaunas, Lithuania.

What I’m going to say is not very politically correct, but Brexit has helped us a lot in the UK because we’re an absolute leader there. To be clear, I am not in favor of countries leaving the European Union. The Union offers access to the common market and many other non-financial benefits, especially for countries like Poland. But from the point of view of my business, Brexit has been beneficial for now. Whether it will be so for the UK, we will probably find out in a few years.

How do you do business in the US?

– On the border of Virginia and North Carolina, where our facilities are located, 20 years ago there were many furniture and tobacco manufacturers. Furniture production has moved to China and tobacco sales have declined. It is a region with high unemployment. If anyone thinks the whole United States is like New York, Miami and California, they are very much mistaken. The middle of the United States is not as developed and modern. When the pandemic broke out, we wanted to do remote work, but there were problems with adequate equipment at homes. There are places where Internet access is not so reliable. In that respect, it’s difficult to do business there. The challenge is to find suitably educated people as there are no enough engineers or technicians. Many people have been structurally unemployed for years and are not so mobile. And the US can be bureaucratic. The tax return you have to file at the end of the year is 270 pages long.

So where does their economic success come from?

– They have a huge market, a flexible labor law and a free market economy. They develop very innovative manufacturing in many places. It’s hard to do business there, but once a company is up and running, the profits can be large. Our plants aren’t making them yet, but we’re slowly coming out on top.

The current President, Joe Biden, is criticized by many business owners. There are job postings at many manufacturing plants looking for workers. But many Americans are not economically active due to disincentives created by high social benefits.

Do you think the United States under Biden is heading towards socialism?

– When I talk to American businessmen, indeed many of them believe that so much US debt, excessive regulations and social programs are a recipe for disaster. But let’s remember that for the last few years we were dealing with an unpredictable politician – Donald Trump. So what if many of his ideas about the economy were sensible. Let’s remember that uncertainty, disrespect for the rule of law, and strange international alliances are as inconvenient for business as bad economic policies. Nevertheless, I think President Biden’s economic populism might end badly for America.

Weren’t you tempted to go outside the glass processing industry? Many Polish businessmen, those in the top ten largest, operate in various industries. Sometimes they create conglomerates, they took part in privatizations. You simply make insulated glass units.

– I don’t want to compete with my colleagues. Perhaps I’m also not as capable a businessman as others who can embrace several completely different industries. I think glass is a good business. We make pretty good money, we have incredible growth opportunities, the right people. I don’t think my life will change if I make another PLN 100 million. I am also involved in many civil society activities and I don’t have time for everything. For me, having an impact on reality is more important than climbing up the list of the richest people and taking a seat on another supervisory board.

When did you realize that you are a classical liberal?

– I have always believed in economic freedom, individual freedom, combined with responsibility. I believed that you have to take matters into your own hands, take everything into your own hands. I think these are the genes of a true liberal and my attitude is not the result of reading. In my youth I didn’t read any books by Hayek, Mill or Friedman. Now I am catching up. When the opportunity to cooperate with Leszek Balcerowicz arose, after I met Andrzej Olechowski, I knew that I was closer to these people than to the left. I always voted for those parties that were more liberal and pro-market: Kongres Liberalno-Demokratyczny (Liberal-Democratic Congress), Unia Wolności (Freedom Union), Platformę Obywatelską (Civic Platform), and Nowoczesna (Modern).

The current government has incredibly increased state involvement in the economy. Several banks have been nationalized, and a huge oil company is to be formed from the merger of two state-owned companies.

– Statism, which took place in the last six years, set the Polish society, including young people, back not by years but by a whole epoch in terms of thinking about the economy and development. I am not an enemy of the state, let alone an anarchist. I believe that the role of the state should be as big as necessary, but as small as possible. I am in favor of an efficient, strong state, limited to the tasks for which it was established: foreign policy, maintenance of security, functioning of the judiciary, creation and enforcement of the basic legal framework.

Do you see growing inequality? Do you have an antidote on how to counteract it?

– The most important way to eliminate them may be to equalize access to education, to acquire qualifications. There is no egalitarian society where everyone is young, beautiful and rich. Some are sick, others red or bald, some have nice kids, others not so nice. We will not equate Elon Musk or Jeff Bezos with someone who works on the shop floor or is a truck driver. We should expect the state to provide access to universal education as part of its commitment to equal opportunity and to prevent discrimination against certain groups.

However, it is possible to equalize income somewhat through the tax system. In simple terms – take more away from the rich and give to the poor in the form of benefits or tax breaks.

– The poor will not become less poor by taking from the rich. There is, of course, the Scandinavian model, where taxes are high and, consequently, the state has high spending. But those are countries that are much richer than Poland, where many state actions are less politicized and more responsible. In our country copying such a model could give completely different results. Besides, even before the expansion of social spending, the Scandinavian countries achieved great progress in improving the living conditions of their people. Poland should first focus on development and let the entrepreneurial and hard-working people prove themselves by treating them as a value and not as an enemy. In the current situation, we have no guarantee that our state will actually provide us with better public services when it gets more money.

In Scandinavia, in addition to high taxes, we have a higher level of economic freedom, the rule of law, openness to the world, a more flexible labor market – all of these things make it easier for entrepreneurs to operate. The level of taxes alone does not determine the conditions for business. In Luxembourg, corporate income tax is 25% and in Romania 10%, but everyone registers holdings not in Romania but in Luxembourg. Polish entrepreneurs are moving their companies to Luxembourg because of the stability and legal certainty.

Polish politicians boast that Polish taxes are lower than in England or Austria, but many of the richest Poles prefer to pay abroad.

– In Poland, the certainty of making and enforcing laws has been ruined. For this reason, among others, some businessmen prefer to register companies abroad and pay taxes there. Many of the largest ones left long ago, now I observe that the medium-sized ones are leaving. This drain of medium-sized business is unbelievable. They are not looking for lower taxes, because there are no such taxes anywhere anymore, but for stability of the law.

What bothers you about our tax system?

– Complexity, bureaucracy and frequent changes. There are countries where it is even worse, but we should follow the best. Even the tax administration cannot keep up with the constant changes that are introduced in our tax system. The result is chaos, which leads to uncertainty. The best example is the “Polish Deal” [big tax changes introduced in a hurry and with many errors by the end of 2021 – editor], which was introduced at an expeditious pace, without sufficient consultations with employers’ associations.

What is ethics for entrepreneurs? Is it an empty slogan, an element of publicity or a road sign?

– It should be a road sign, not only because morality is a value in itself, but also because of the business strategy. 30 years ago it was easier for unethical people to do business. But the situation has changed dramatically. Today, unethical people are eliminated from business. They are being verified by the free market and business rules in the EU. They cannot count on regular suppliers or customers, they cannot acquire capital cheaply, they do not have a network of friendly entrepreneurs to whom they could turn for help. Of course, as everywhere, there are crooks, but they can make one or two jumps and not function stably.

You sponsored the publication in Poland of Charles Koch’s book “Good Profit”. After it was published, a journalist from “Wyborcza” described Koch’s business dealings, focusing on actions that were at least ethically ambiguous. For example, a Senate investigative committee found that Koch Industries illegally exploited oil beneath the territories of indigenous Indians and underreported toxic gas emissions. Koch is a great businessman, but is the businessman ethical?

– Charles Koch started as a businessman in 1961, which means he has been one for 60 years. Name anyone who in that time hasn’t intentionally or unintentionally infringed some standard. As a lawyer, I stick to the rule – until I know the case file, I don’t pass judgment. I don’t know if the author has read the Koch cases that thoroughly. I won’t bet the farm that Charles Koch acted entirely properly throughout his long and successful business career, but you have to be objective when evaluating entrepreneurs who built great companies, who operated in certain conditions, who had to adapt to changing situations, who had to deal with competition. I believe that if we made a comprehensive and reliable assessment of this outstanding entrepreneur, the result would be very positive.

Should the state interfere when a company gets too big – as in the case of Facebook, Google, and once John D. Rockefeller’s Standard Oil Trust? Rockefeller?

– Each such case should be considered on an individual basis – there is no single definition of company that is “too big”. It is important that the state does not restrict the entry and growth of companies with excessive regulations, so that new or smaller companies can compete with larger ones. Consumers are much better arbiters in the market than the state, which sometimes itself creates state monopolies and prevents competition in some areas.

It is sometimes said that Poles are an enterprising nation. Is it true or a myth?

– Polish entrepreneurs are nice, but we are not a chosen people. There was and is certainly no world-class entrepreneur among Poles, and after 30 years since the transformation, with such a large market, there should be. However, I hope that they will appear in the nearest future. Polish entrepreneurship is local, we have not learned the global way of thinking. Maybe because we are first generation entrepreneurs. I will not diminish my achievements. We are building another plant in Lithuania, we are expanding in England, in Poland we bought 15 hectares of land and we will build a new, very modern plant. I am a big businessman, but not on the scale of the biggest ones in the world.

Why do you engage in social initiatives? You sponsor liberal initiatives, you founded the Economic Freedom Foundation. These are exceptional activities among entrepreneurs. Many establish charitable foundations, whose task is also to improve their image. But you entered the vestibule of politics.

– I am a patriot and I care very much about this country. I believe in such values as freedom, openness, education, European integration. I have a lot of potential, I have achieved success in business, I have some time and gene to share with others. It is not a small thing that I am a classical liberal. Statism, which has been spreading for six years, and megalomania of those in power made me rebel. I could have accepted the situation and lived comfortably, but I decided to fight for the ideas close to my heart. I am very worried about Poland, about what is happening now. The country’s reputation is ruined. Entrepreneurs who are open-minded, creative people are leaving Poland. They are pissed off at the Polish government. We received incredible support from the European Union, and now we’re spitting on it. This is destroying the achievements of the past 30 years. I can see in the eyes of our western partners that they are losing patience with Poland. They helped us and we didn’t appreciate it. If we don’t change this, we won’t dig ourselves out for several decades.

Aren’t you afraid that social activity will harm business?

– No, I have great people in my company out of college that I trained, and they run the business on an ongoing basis.

The state has many ways to harm business.

– My business does not depend on relationships with state-owned companies. I don’t have any state suppliers or customers.

But there is the tax office, which can be disruptive with its constant inspections.

– I am an honest, hard-working entrepreneur. If such people start to be afraid, it means that democracy has come to an end and the state has become authoritarian.

* Arkadiusz Muś – born in 1962, he graduated from the Faculty of Law and Administration of the University of Silesia and has a Master’s degree in law. He started his business activity in 1992 by founding PRESS GLASS, of which he is the sole shareholder, and which he developed into a European leader in the processing of glass for the construction industry. At present PRESS GLASS owns 14 plants: in Poland, Croatia, Great Britain and the USA, and employs a total of 4.7 thousand employees. He is also a shareholder and member of the Supervisory Board of Euroglas Polska, a partner of Swiss Glas Trösch Holding AG, and a shareholder of AMC Aviation.

Since 2010 he has been a Board Member of the Civil Development Forum (FOR), a think-tank founded by Professor Leszek Balcerowicz. He is also a member of the Economic Council – the Team of Economic Advisors to the Speaker of the Polish Senate, as well as a member of the Trilateral Commission.

He owns an 18-hole championship class golf course Rosa Private Golf Club in Konopiska, near Czestochowa.

Artykuł I believe in economic freedom combined with responsibility – Arkadiusz Mus pochodzi z serwisu Fundacja Wolności Gospodarczej.

Democracy and economic freedom in Poland

FWG — Mon, 11 Oct 2021 06:11:40 +0000

Democracy and economic freedom in Poland

Autor: FWG

Marek Tatala, CEO of Economic Freedom Foundation, took part in the #287 episode of the podcast “Democracy that Delivers”. In this episode, he spoke about the current situation in Poland, rule of law, economic freedom as well as his work at the Economic Freedom Foundation and Civil Development Forum.

Liberalism , Publication11.10.2021

The podcast was hosted by Ken Jaques and Marek Tatala was joined by Anna Kompanek, Director of CIPE’s Global Programs. As you can read in the episode’s description “despite their home country’s previously exemplary economic and democratic transition, our guests tell of Poland’s recently renewed struggles with rule of law, independence of the media, and political corruption.”

CIPE was founded on the principle that economic freedom and political freedom are linked. A strong private sector needs a flourishing democracy to work – and vice-versa. CIPE’s work centers on building strong democratic institutions to create an enabling environment for business and entrepreneurship to flourish.

Marek Tatala is the newest member of CIPE’s Free Enterprise and Democracy Network (FEDN).

You can listen to the #287 episode of “Democracy that Delivers” here.

Artykuł Democracy and economic freedom in Poland pochodzi z serwisu Fundacja Wolności Gospodarczej.

The Mises Institute textbook approved by the Ministry

FWG — Fri, 10 Sep 2021 10:58:33 +0000

The Mises Institute textbook approved by the Ministry

Autor: FWG

After 6 years of efforts, the Ministry of National Education approved the textbook “Free Entrepreneurship”, published by the Polish Mises Institute, for use in general secondary schools and technical schools.

Education , Publication10.09.2021

The textbook “Free Entrepreneurship” presents a coherent vision of the functioning of the market economy and contains basics of economic theory. Thanks to the textbook, students learn about the role of entrepreneurs, consumers and employees in market processes. In this context authors present the most important institutions of the market economy, current legal conditions and information on the labor market or personal finances.

Artykuł The Mises Institute textbook approved by the Ministry pochodzi z serwisu Fundacja Wolności Gospodarczej.

Rule of Law in Poland

FWG — Tue, 31 Aug 2021 18:41:34 +0000

Rule of Law in Poland

Autor: FWG

The Civil Development Forum (FOR) presented a series of reports in English about the rule of law in Poland. Their reports and the “Rule of Law in Poland” project are based on FOR’s belief that the rule of law in Poland and other EU member states is important not only for the citizens of these countries, but also for the future of the European project as a club of countries with high-quality democratic institutions safeguarding human rights.

Publication , Rule of Law31.08.2021

In the first part FOR presented the detrimental changes in the justice system pursued by the ruling majority since late 2015 from a domestic and comparative perspective. Part 2 was devoted to international and European responses to the on-going crisis. In Part 3 FOR described how the COVID-19 pandemic negatively affected the situation and posed new risks to the rule of law. In the last report experts of FOR wrote about restoration of the rule of law and reforms needed in the justice system.

Artykuł Rule of Law in Poland pochodzi z serwisu Fundacja Wolności Gospodarczej.