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Pioneers in the Wild East

In 1990 the first American companies were planting their flags in Polish soil. The country had just begun its march to a free-market economy and a democratic society after nearly 50 years of communist rule. Because of those historical circumstances American companies found themselves not only pioneering their businesses in a foreign market, but a market that was undergoing dramatic transformation in all aspects, from the political and economic order to social, cultural and commercial spheres. To function effectively in such a fast-changing and complex environment, the American pioneers realized that they needed an organization which would represent their core business values before lawmakers, public institutions and other business organizations.

The U.S. Embassy in Warsaw provided vital support through commercial attaché Edgar Fulton, who hosted a meeting in June 1990 for representatives of nearly 20 American companies, seven of whom agreed to set up an organization. They were Jon Bachman of Johnson & Johnson, Warren Hazard of Morrison Knudsen, Don Mucha of Unitronex, Zbigniew Niemczycki of Curtis International, George Osypowicz of Donau Trading, Mac Raczkiewicz of Epstein Engineering Export, and Dr. Beurt SerVaas of SerVaas, Inc. Five of the founders formed the first board and selected Mac Raczkiewicz as chairman.

The initial work quickly yielded results. In the fall of 1990 the AmCham had a draft constitution and 27 charter members. Another milestone was reached soon after that—on January 11, 1991, the American Chamber of Commerce in Poland was accredited as an affiliate member of the U.S. Chamber of Commerce in Washington, D.C. By the time it held its first monthly meeting at the Marriott Hotel in April 1991, AmCham boasted 69 members. It was at that meeting that the organization established its first four committees: political and legislative, education, public relations, and social.

In 1991 AmCham first spoke out as a business advocate when the board submitted a letter to the Polish Parliament commenting on the draft Foreign Investment Law, proposing tax credits for reinvestment, among other issues.

Growing strong

1992 was a time of AmCham’s growth in the ranks of business advocacy. Chairman Raczkiewicz addressed various parliamentary committees, urging modernization of banking regulations and tax incentives for investment, explaining the benefits the country’s economy may draw from foreign direct investment. This coincided with Poland’s economic growth as positive effects of the government’s economic shock therapy, implemented in 1990, began to be felt. Ernst & Young ranked Poland the best country in Central & Eastern Europe for business opportunity.

In 1993 even more American companies began doing business in Poland or expanded their existing operations. With this, AmCham membership growth was dynamic. When Vice President Al Gore spoke to AmCham in April 1993, he praised its spectacular growth from seven to 160 members.

From the start AmCham advocated the investment opportunities Poland offered. In 1994 Chairman Raczkiewicz assisted Polish President Lech Wałęsa on a trip to the U.S. to promote American business in Poland. The trip also served to convey AmCham’s support for Poland’s bid to enter the World Trade Organization and NATO.

In 1994 AmCham also hired its first executive director, Michael Arsenault, while John Lynch of Lynka Promotions initiated AmCham branch activities in Kraków to represent the growing number of American companies in southern Poland.

AmCham often entered into strategic alliances and partnerships with various organizations. In 1995, working for a more favorable business climate, it teamed with the American Investment Initiative, a branch of the Financial Service Volunteer Corps, to publish a report entitled Polish Economic Legislation: Proposed Changes and Amendments. The project was financed through a grant from the U.S. Agency for International Development and compiled by White & Case.

Pinpointing issues

As the Polish economy became more sophisticated, AmCham’s structure and activities also grew more complex.

In 1996 AmCham reorganized its committees so they could advocate policy and lobby on specific issues of concern to its members. The new specialized committees lent their expertise to the government’s Committee to Debureaucratize the Economy. Three of the four subcommittees of the government committee were chaired or co-chaired by AmCham representatives.

With an eye to larger political and economic objectives, AmCham members lobbied the U.S. Senate to pass a bill that would open the way for Poland to join NATO. They also met with officials from the Clinton administration to discuss issues stemming from Poland’s bid to enter the European Union.

In November 1998, AmCham received a great honor when Polish President Aleksander Kwaśniewski awarded Chairman Mac Raczkiewicz the Gold Cross for Service to the Republic of Poland for his contribution to developing Poland’s economy.

To enhance its lobbying efforts, in 1999 AmCham partnered with 15 other business and employer organizations to lobby the Parliament to lower corporate and personal income tax and VAT, a necessary measure to make Poland competitive among other emerging economies. The alliance represented approximately 70% of the Polish workforce and constituted the first such strongly unified voice of the business community in Poland.

AmCham proved instrumental in advocating business issues at times of economic growth as well as during setbacks. When the recession of 2000 hit Poland, the organization advocated labor market reforms that would allow for flexible forms of employment, among other key solutions, in order to break the stranglehold of trade unions on shaping labor legislation. The same ideas generated by AmCham in 2000 were taken up almost nine years later by the Tusk government when Poland was bracing for the impact of the global economic crisis.

As AmCham supported Poland’s policies aimed at entering the E.U., it also worked all along at fostering Polish-American ties. In 2002 Thomas Donohue led the first U.S. Chamber of Commerce delegation to Poland. AmCham facilitated his meeting with government and business representatives, which helped strengthen the mutual understanding of expectations and benefits between Polish and American business circles.

2002 also marked the growth of U.S. companies in the Wrocław area, the fastest-developing region of Poland. To bring area companies closer to AmCham and provide them more effective benefits of membership, member company Project Management Group opened branch activities in the region.

Learning from the experience of partnering with other business organizations, AmCham was instrumental in creating the Entrepreneurship Council, a roundtable of 11 top business organizations in Poland. The council’s lobbying efforts were instrumental in the government’s decision to reduce CIT to 19% in 2004. This was a milestone for giving Poland a competitive edge in attracting foreign investment.

As the organization’s internal and external activities grew increasingly multifaceted, AmCham hired a new executive director, Dorota Dabrowski, to be responsible for maintaining the quality of the chamber’s operations. With her tenure lasting down to the present day, Dabrowski is the longest-serving AmCham executive director yet.

Results for members

AmCham made great efforts to foster U.S.-Polish business ties. When U.S. Secretary of Commerce Donald Evans visited Warsaw in December 2003, he participated in the first Polish-American Business Summit, hosted by AmCham and the Polish Confederation of Private Employers. In another project, AmCham teamed with the U.S. Embassy to compile profiles of successful American companies in Poland. The survey provided advice for foreign investors on finding the best locations, mining local knowledge and talent, and enforcing anti-corruption policies.

As AmCham was looking forward to Poland’s integration with the E.U., the organization decided to restructure internally. Mac Raczkiewicz stepped down after nearly 14 years as chairman. In December 2004, the new chairman, Roman Rewald, was elected at the AmCham Annual General Meeting. He affirmed that AmCham should retain its unique American character even as it adjusted to a more connected world.

In 2005 Chairman Rewald pursued his mission with vigor. One of the first projects he directed was a thorough research paper presenting AmCham’s assessment of the business climate in Poland. The conclusions were merged into a concise list of suggested priorities for the government that the Entrepreneurship Council, of which AmCham had taken the rotating presidency, presented to the government. Some of the suggestions from the white paper were picked up by the cabinet, and the white paper was also recognized by the Economist magazine. In another project, AmCham opened up cooperation with the Polish-American Freedom Foundation on the International Internship Initiative, a program designed to offer work abroad with AmCham-affiliated companies to students who sought international work experience. Over the years the successful project produced a dozen alumni who benefited from integration with the business world early in their professional careers.

As Poland’s integration with E.U. structures matured, AmCham worked alongside its counterparts in other new E.U. member states to carry out several projects aimed at addressing issues of tax regulations, which raised similar concerns across the CEE region. The first Regional Tax Conference, held in Warsaw, has been successfully continued every year with other AmChams in the region.

In 2006 AmCham started the CEO Forum, a new program aimed at providing its executive echelons with a chance to become familiar with the newest trends in business leadership. The CEO Forum continues today on a quarterly basis.

While AmCham members continued to benefit from the organization’s program of internal meetings and workshops, with the creation of four new committees AmCham invigorated is policy advocacy agenda to include issues of telecommunications, outsourcing, high-tech, defense, agriculture and food. Outsourcing/High Tech Committee representatives met with university administrators to discuss employers’ expectations for the skill set university graduates should bring with them when taking up professional careers in a free-market economy.

Further strengthening its networking among Poland’s top-tier politicians and economists, AmCham held meetings with Prof. Leszek Balcerowicz, former finance minister and president of the National Bank of Poland, and Stanisław Kluza, head of the Financial Supervision Authority and former finance minister. And in recognition of its impact in Poland, AmCham hosted visits by U.S. Secretary of Commerce Carlos Gutierrez and GE CEO Jeffrey Immelt. 

In 2007 AmCham extended its outreach to embrace more sophisticated business issues, such as the protection of intellectual property rights, a concept not well-recognized by much of the Polish society. In cooperation with the University of Warsaw, AmCham ran a series of workshops where officials from Levi’s and Philip Morris explained the differences between original and pirated products, including a description of the different commercial food chains that produce and distribute them. Later that year, in conjunction with the Ministry of Finance, AmCham organized the Intellectual Property Rights Art Competition, aimed at promoting understanding and appreciation of brand protection.

Emerging think-tank

Relocating to larger offices and boosting its staff, AmCham invigorated its activities by adding new committees, organizing more committee meetings, press conferences and other events. One press conference showcased the policy paper Roads to Euro 2012, a critical assessment of the government’s policy on construction of new roads to be ready by kickoff of the European Football Championship in Poland in 2012. The report was accompanied by a set of best practice guidelines for the public and private sectors to work together to expedite individual projects. The report made waves across the media, and a follow-up in 2008 included an AmCham meeting with the parliamentary committee charged with preparing legislation to streamline road construction efforts, a series of meetings with the General Directorate for National Roads and Motorways, and a conference in conjunction with the Polish Information & Foreign Investment Agency.

Thinking globally and acting locally, in 2008 AmCham centered its workshop program around issues of environmental protection. The role of corporations in halting climate change while finding new business opportunities was the theme for AmCham activities as the chamber designated 2008 as Green Year. A series of events devoted to ecology and business spanned the CEO Forum, internal discussion panels, and business mixers. Practical actions centered around planting trees and collecting used batteries for proper disposal.

2008 also saw the creation of a new employer organization, the Entrepreneurship Congress, which came into being following the First Employers’ Congress, co-organized by AmCham and other leading business organizations, which hosted over 3,000 delegates from all over the country at the Expo Center in Warsaw. The new initiative, in which AmCham plays an instrumental role, is aimed at building a strong yet flexible platform for all major business organizations to voice their interests and values in the face of increasingly populist sentiments across the political spectrum in Poland in the aftermath of Poland’s entering the E.U.

Fostering business ties with the U.S., AmCham hosted a visit by Rolf Lundberg, senior vice president for congressional and public affairs at the U.S. Chamber of Commerce, facilitating a series of meetings between Lundberg and Polish government ministers and business leaders.

Bringing regional business issues to the fore, AmCham Poland worked with AmCham Hungary on the Third Regional Tax Conference and with GE on the Second Energy Forum. In November 2008, on election night, AmCham got together with the American Embassy to host an all-night event for AmCham members and friends to celebrate the election of a new U.S. president. The event was covered live by Poland’s main television stations.

In addition to events in Warsaw, AmCham in Kraków organized successful business events for the IT industry (“IT Giants”) and for the manufacturing sector (“Manufacturers’ Forum”). AmCham Kraków activities also covered the nearby province of Upper Silesia at the Katowice Investment Forum. These successful events were repeated in 2009.

2009 witnessed spectacular internal growth at AmCham, generated by the committees, and was also a year of intensifying its business advocacy through a number of media events organized by AmCham itself or through the Entrepreneurship Congress. AmCham assumed the rotating presidency of the Entrepreneurship Congress in the fall of 2009.

Today, strong and well-integrated with the international business community in Poland and the CEE region, AmCham is the key voice for American business in Poland. Advocating the values it stands for, social and economic freedoms, and principles of economic efficiency, AmCham has successfully drawn from the individual expertise of its member companies to create a business force to reckon with, gaining the ear of the government, administration, E.U. commissioners and public opinion in Poland and abroad. In its first two decades, the American Chamber of Commerce in Poland has had many achievements it should be proud of now. It has many reasons to celebrate its 20th anniversary.

ENDS

American Chamber of Commerce in Poland
ul. E. Plater 53 00-113 Warszawa
tel: +48 (22) 520-5999
fax: +48 (22) 520-5998
e-mail: office@amcham.com.pl