Ecological Risks Perspectives from Poland and the United States (1990) / Chapter Skim
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Environmental Protection as an Element of International Economic Cooperation in Poland
Environmental Protection as an Element of International Economic Cooperation in Poland
Pages 60-76
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From page 60... ...
In the 1980s, Poland reached the threshold where economic effort of the prior three decades no longer generated authentic welfare for its populace, and where the marginal gains of increased economic activity began to dwindle. The intensive use of energy and material resources that are characteristic of the Polish economy produce disproportionately small gains in material benefit and reduce opportunities for more benign development by consuming scarce economic resources (Kozlowski, 1986~.
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From page 61... ...
Accompanying this major move are other new private international economic and ecological initiatives, including the Poland Ecological Foundation, the Fund for the Development of Polish Agriculture, and the Swedish-Polish Association for Environmental Protection (Polsko-Polonijna, 1988~. Each of these have as their objective the dual goal of supporting environmental improvement while stimulating economic development in the agricultural, food processing, export, and pollution engineering sectors of the Polish economy.
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From page 62... ...
Because Poland's environment is so greatly affected by its pattern of economic development, the question of how the reforms will affect environmental quality deserves brief mention here. Some Polish analysts have observed that the strong emphasis on profitability in the recently enacted "Second Phase of Economic Reform" bodes poorly for the environment, because firms concerned with profit will divert even less of their scarce financial resources from investment in production to pollution control, and will use whatever means at their disposal to avoid compliance with pollution regulations (Chapter 22, this volume; Kozlowski, 19864.
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From page 63... ...
In the context of borrowing for environmental protection, the seemingly esoteric questions of future value and discount rates and gathering returns discussed in Chapter 3 take on a more substantial cast when illuminated by the harsh light of repayment schedules. Investments that stand to yield even the most fortuitous environmental benefits do not necessarily produce the sort of clearly defined financial paybacks that justify hard lending for that purpose.
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From page 64... ...
Pollutants from the nearby massive Nowa Huta steelworks and other industrial plants combine with coal-fired home and commercial heating emissions to corrode the historical, cultural, and architectural treasure of the buildings of Krakow and jeopardize the health of its citizens. The Nowa Hula steel mill employs 35,000 people, produces 6 million tons of steel per year, and is an important part of the national and regional economies.
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From page 65... ...
One object of Poland's investment strategy of the lY70s, which entailed borrowing from the West to purchase modern licenses and production technologies, was to reduce the extreme bias toward heavy industry in its economy and increase the share of other types of manufacturing. This strategy was intended to increase the efficiency of Polish industry and engage Poland in the vigorous export trade of high quality goods, thereby raising the country's standard of living and, at the same time, making the successful repayment of foreign debt possible.
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From page 66... ...
Poland's economic pattern- which is common to the centrally planned economies of Eastern Europe and acutely inefficient in its use of raw materials and energy per unit of economic product lies at the root of the region's environmental problems. This pattern is manifested in the overall sectoral mix of the economy, the structure of the industrial sector within the economy, and the operating efficiency of processes within industry.
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From page 67... ...
In centrally planned economies, the extractive industries continue to display a much larger share of industrial output and employment in comparison with mature market economies at the same level of GNP per capita. The share of extractive industries in centrally planned economies is on average three times greater than in mature market economies, and almost twice that in semi-developed market economies.
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From page 68... ...
than would have been expected compared to other countries with different economic systems but comparable levels of GNP per capita (Winiecki, 1988~. In Poland, the predominance of industry in the economy and the emphasis within industry on heavy industries is accompanied by generally low energy efficiency in industrial processes.
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From page 69... ...
Except for ammonia production where Poland's efficiency level is on a par with the international figure and electric arc steelmaking—where its level is superior to the international figure Poland's heavy industries trail attainable levels of energy efficiency by anywhere from 17% to 40%. These relatively low levels of energy efficiency mean greater consumption of coal-fired electricity to fuel Polish industry.
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From page 70... ...
40 % Energy consumption Mtce -gross 60.82 10553 381.28 —final 41.71 63.12 254.73 Energy intensity U.S.$ Mtce/bil. -- gross 0.77 0.64 0.61 Final 0.53 0.38 0.41 PLANNED ECONOMIES: Yugoslavia Hungary Poland Units GDP 44,370 20,560 70,439 milt U.S.$ %industry 33 41 - 49 % Energy consumption Mtce gross 62.62 42.42 180.67 Final 31.86 28.97 109.44 Energy intensity Mtce/bil.
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From page 71... ...
71 the exportable share of Poland's coal production becomes more valuable on world energy markets. As noted previously, Poland's industrial sector is characterized by generally low levels of efficiency in the use of fuel and energy, which means, ironically, that relatively modest improvements in process efficiencies will generate notable marginal gains in fuel conservation and cost savings.
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From page 72... ...
Because 75% of the country's farms are in private hands and operate on a rather lean budget of purchased inputs, agriculture in Poland holds the potential to generate greater marginal gains in output in response to relatively modest inputs of fertilizer and technology than do more developed agricultural sectors of other industrialized countries. Poland's "low-tech" private farming should be examined as a case study of economically viable, labor-intensive, ecologically sustainable, low-energy agriculture in an advanced economy (Cook, 1984; Chapter 15, this volume)
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From page 73... ...
Food production and processing is not an environmental measure per se, but, if properly carried out, can be ecologically benign, function on low energy inputs, and produce quite favorable value-added ratios all elements of the type of reorientation necessary for Poland's economy overall. As a component of national plans for investment in export products, it could constitute a tonic for the country's heavily industrial economic mid Poland ought to be internationally known, for example, for its fruit juices and fruit products.
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From page 74... ...
The non-communist Mazowiecki government which assumed power in mid-1989 retains concern for environmental protection, despite the fact that it is only one of a series of major problems the country must address. That environmental protection has figured prominently in the programs of two successive governments from opposite ends of the political spectrum is significant in Poland's current political context; Poland's leaders are now pressed to redeem the country's economy in the eyes of both the international financial system and their own people.
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From page 75... ...
1985. Energy policy and conservation in Eastern Europe in East European Economies: Slow Growth in the 1980s.
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From page 76... ...
1987a. Europejskie t~nsfery zanieczyszczen a problemy modernizacji gospodarki polskiej (European transfem of air pollution and problems of modernizing the Polish economy)
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