Friends in deed

Polish President Aleksander Kwasniewski represents a new generation of Eastern European politicians leading their countries towards market economies and parliamentary democracy. In an exclusive interview, Ibrahim Nafie quizzed the Polish president about the Middle East peace process, the Polish economic reform and privatisation programme and Poland's relations with the European Union, the United States and as a new member of NATO. Nafie also interviewed Polish Foreign Minister Wladyslaw Bartogewski
What is your evaluation of the status quo in the Middle East in light of the escalation of violence between the Palestinians and the Israelis?
We are very worried about the situation in the Middle East and all the violence that is taking place there. Poland supported the peace process since the beginning and we had hoped that this process would come to a successful conclusion. I have personally had the opportunity to visit the state of Israel and also Palestine and to speak to Palestinian President Yasser Arafat on many occasions. I also deeply appreciate Egypt's role and the personal integrity of its president, Hosni Mubarak. I still have hope that a resolution will be reached even though the situation now seems more difficult than it was two or three years ago. But let me emphasise that Poland will continue to support the peace process.
Here in Poland we call on all parties to abandon violence. The latest developments, which took place on 9 May and involved the killing of two Israeli children, are terrifying.
But also many Palestinian children have lost their lives.
Of course, there is information everyday on killings of children and infants. And there is a problem: how to stop this violence? I am not speaking about Palestinians or Israelis; children are children and the question is how to stop this violence.
How could Poland take part in ending the current violence in the Middle East?
We would like to have the best possible relations with all Arab countries. I hope President Mubarak will visit Poland in the near future. We discussed this prospect several times but unfortunately it was postponed. From a practical viewpoint, Polish soldiers are stationed in the Golan Heights and they participate with other international specialised forces serving in the Middle East.
Today economics -- and mark my words -- is the most important and serious element that would lead to peace and security in this region.
How do you assess Egypt-Poland relations?
We have excellent relations with Egypt; they are traditional, deep, old and historical. But I think a new jump-start is required. Any official visit by President Mubarak would provide this important contribution. Also, Polish tourism to Egypt has increased a lot over the past few years, reaching 85,000 tourists last year alone. In fact, most of my friends spent Easter in Egypt.
Moving to Poland, what are the means Poland used to evaluate its public sector companies before privatisation?
Our economy has undergone a lot of change so that while ten years ago 75 per cent of our GDP was in the hands of the public sector, now around 73 percent is in the hands of the private sector. This means that privatisation has had very good results in Poland.
How do you evaluate the assets of public-sector companies? Do you hire foreign companies to do that? Do you begin with companies already making profits or with the ones losing money? What is your privatisation strategy?
We are certain that privatisation is necessary for a good and healthy economy. Practical considerations these days require companies to have effective organisation and be competitive. We need direct investment, which is why we decided to apply the cooperative system employed by the Czech Republic. Because the best kind of privatisation for us is for there to be owners, investors and direct investment. We now have private companies owned by both foreign and Polish investors. We have opened up the economy to new investors and in the last years we received some $10 billion annually. It would be difficult to specify which of the important international companies is not present in Poland and I believe that most of them are here. Even so, this is not yet sufficient. For us privatisation and investment imply increased exports. For companies like Coca Cola and Pizza Hut, Poland with its 40 million inhabitants provides an excellent market. But for us it would be much better to attract companies ready and willing to export. The foremost Polish exporter is Italian Fiat. General Motors will open a new plant here; they have already exported about $1 billion worth of exports and this is a good record.
So how do you evaluate the assets of companies before selling them?
We have international companies like Arthur Andersen that perform this task. The problem is two-sided: how to determine a fixed procedure for evaluating the assets, particularly in relation to the market (the value of companies often decreases upon market exposure), and how to ensure transparency.
What is the average foreign investment rate in Poland over the past 10 years?
Approximately $50 billion. The highest record was in 1996/1997, when it was $10 billion. Nowadays the rate is slightly less than that, which is not too bad.
What does being a member of NATO mean to Poland?
NATO membership is an historic decision for Poland, which has been a battle ground over many centuries. If it is not easy for you to be neighbours with Israel, it is not easy for us to be neighbours with Russia -- formerly the Soviet Union -- on one side and Germany on the other side. Our membership in NATO means that we have genuine security guarantees. For the first time in our history we are in the same military and political alliance as Germany, after 1,000 years of war between the two countries. Remember, membership does not only imply that we have shared values with other NATO members, it also means that we confront the same dangers and have the same responsibilities. We are, of course, ready for this, being present in Bosnia and Kosovo and many other regions. We have modernised our army and reduced it from 400,000 to 200,000, with the object of reaching 150,000 soldiers. I am personally against having a completely professional army, one without conscripts. NATO membership is very new to Poland since we never had such security guarantees before.
How do you assess the new American administration?
President Bush will visit Poland in mid-June. I have spoken to him two or three times over the telephone, but this is not enough to become familiar with the decision-makers in the American administration or the president's ideas. We are grateful to the United States for its support of the Polish democratic transformation. One important factor will be to what extent the new administration will get involved in the peace process in the Middle East because [former] President Clinton was fully immersed in this process.
Does Poland support President Bush's proposal concerning the Missile Defence System?
It is important to recall that we are in the 21st century and the Cold War era is over. It would be a big mistake to assume that the Missile Defence System is a new version of the star wars policy of President Ronald Reagan. Rather, the questions it raises should be resolved through dialogue. And I am very pleased that the US has called this initiative the Missile Defence System and not the National Defence System which means that the initiative is open to many countries. I was very happy with President Bush's statement on his willingness to discuss this issue with fellow NATO members, as well as China, Russia and Egypt, to mention but a few. Otherwise it would mean that Washington is sending the wrong signal to the world at the threshold of the 21st century, ie that it is repeating a process that makes sense only in the context of the Cold War. Today, when the US is the sole superpower, there has to be a clear concept of American foreign policy. Consider Pope John Paul's latest visit to Syria and Greece. It is almost unbelievable that the Pope, despite his age, understands that it is time to transcend the tensions of the past and open up new opportunities for dialogue, understanding and cooperation.
What about the EU?
EU membership is our next aim. We are working hard and conducting very difficult negotiations at the moment. I believe full membership will come in 2004 or 2005. The important point for me is that the political decision to open up the union has already been taken and there are no longer any political obstacles. Poland has exerted all the efforts to be ready by 2002. As to when the EU will be ready to open its doors to us, this will be the main item on my agenda during my upcoming visit to Sweden.
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