Entrepreneurship and employment - kozminski.edu.pl · Entrepreneurship and employment ... an MBA...
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Entrepreneurship and employment
Jerzy Cieślik
Abstract:
The article discusses the issue that has been subject of a lively debate in the economic
literature since the late 1970s, namely the types of companies that generate new jobs, and thus
contribute to a decline in unemployment. This debate has been adversely affected by
methodological flaws: failure to account for indirect forms of economic activity, a simplistic
classification of enterprises according to their size and differences in measurement methods,
in particular with regard to solo entrepreneurs. The author proposes an alternative
methodological approach; the suggested concepts and measurement methods are reviewed on
the basis of statistical data on employment and demography in Poland. On this basis,
economic policy recommendations are formulated.
Keywords:
entrepreneurship, job creation, solo entrepreneurs, hybryd entrepreneurs, micro-employers
Bio:
Prof. Jerzy Cieślik graduated in 1971 from the Warsaw School of Economics. In 1976 he
obtained a PhD degree in economics (international economic relations) and habilitated in
1988. He served as Professor of the Warsaw School of Economics until 1990.
In the years 1983-1989 Prof. Cieslik was involved in a number of consultancy and advisory
projects, working both for companies in Poland as well as in a number of countries of Africa
and Asia as an expert for international organizations within UN system (UNIDO, UN Centre
on Transnational Corporations and World Tourism Organization). He assisted the government
institutions in developing countries in making more efficient the process of technology
transfer, strengthening their negotiating position vis-a-vis foreign investors and implementing
specialized information systems, supporting decision-making processes.
In 1990 he suspended his academic career in order to build the Ernst & Young organization in
Poland. During 1990 – 2003 he served as Board Member and Managing Partner of Ernst &
Young Poland. He is a licensed tax advisor.
In 2004 he became Professor at the Kozminski University, specializing in high-potential
entrepreneurship (international, technology-based entrepreneurship). Author of the
textbook (in Polish) “Ambitious Entrepreneurship. How to Start Your Own Business)", 2010
www.cieslik.edu.pl . Currently he serves as Director of the Center for Entrepreneurship at the
Kozminski University.
Prof. Jerzy Cieslik coordinates Academic Network of Entrepreneurship Educators in Poland
(SEIPA). He is a member of the National Entrepreneurship Council, appointed by the
Minister of Economy of Poland.
How to improve management education for the purpose of future socio-economic
development?
Eric Cornuel
Abstract:
This chapter discusses (1) how management education can support socio-economic
development, and (2) how management education can be improved. On the one hand, I claim
that management education actually contributes to socio-economic development by (a)
producing qualified managers, by (b) helping companies to better evaluate managers and by
(c) promoting inter-enterprise mobility. To illustrate my arguments, I build upon my extensive
experience where I could, both as a business school Dean and as a researcher, observe some
challenges to socio-economic development in Central and Eastern European countries. On the
other hand, I suggest that (a) cooperation among education institutions in sharing resources,
curricula or diploma as well as (b) a philosophical view of continuously improving the
existing systems and respecting individual autonomy and accountability – as emphasized by
the social Catholic thought – in fact aid to improve management education. While I build on
my experience as Director General at EFMD to emphasize the role of collaborations between
business schools, I develop some philosophical considerations by having a closer look at the
Catholic social thought and its relevance within organizations and management. Finally, I
conclude this chapter by developing some perspectives for management education in the
future and business schools in Europe.
Keywords:
Management education, socio-economic development, managers, mobility, cooperation
Bio:
Eric Cornuel is the Director General & CEO of EFMD in Brussels since 2000. He holds a
degree of Sciences Po from IEP Paris, an MBA from HEC Graduate School of Management,
Paris, and a DEA in strategy and management from Paris Nanterre University, together with a
Doctoral Certificate in Strategy from HEC Graduate School of Management Paris and a PhD
in management, written on international network organizations, from Paris Dauphine
University. He was awarded a honorary professorship for his achievements there. From 1996
to the present, Eric Cornuel has been affiliate Professor at HEC Graduate School of
Management, Paris. He has taught for 15 years at various management schools in Europe and
Asia, including the Catholic University of Louvain. He serves on the board of various
associations and companies.
A new political economy – for development
László Csaba
Abstract:
This essay is an attempt to offer some suggestions of how the post-transition ebbing out of
growth could be overcome. The diagnosis consists of four, the therapy of seven, theses.
Analyzing long term factors, the challenge of good governance and improved institutional
quality come to the fore. The ephemeral impact of EU and EMU accession is being
underscored.
Keywords:
new political economy, convergence, soft factors of growth, quality of governance, new
member states/of the EU
Bio:
Professor of international political economy/Central European Univerity and Corvinus
University of Budapest/ and full member of the Hungarian Academy of Sciences. This paper
is written for the 20th anniversary conference of the Kozminski Univerity of Management,
entitled Management and Economic Policy for Development’ Warsaw, 9-10 October, 2013.
Comments are encouraged and welcome, for availabilities and more on the author cf his
website: www.csabal.com
How does foreign direct investment affect domestice enteroreneurship
Saul Estrin
Abstract:
This paper explores how foreign direct investment (FDI) inflows affect domestic
entrepreneurship. The empirical work is based on a micro-panel of more than two thousand
individuals in each of seventy countries including both developed and developing economies.
The FDI literature has not yet determined whether spillovers from FDI to entrepreneurship
will be positive, because, for example, of technological and human capital dissemination, or
negative, because, for example, of crowding out of human and financial resources. Our
analysis covers the period from 2000 to 2009. The results indicate that the relationship
between FDI inflows and domestic entrepreneurship is in fact negative. Thus while FDI may
bring many positive benefits to the host economies, there is an unfortunate side effect, namely
that domestic entrepreneurial activities are reduced. Policy makers who are concerned to
encourage domestic entrepreneurship, for example to increase employment or to stimulate
economic growth, need to be aware of this danger when framing their foreign direct
investment policies.
Keywords:
foreign direct investment, entrepreneurship, spillovers
Bio:
Saul Estrin is a Professor of Management and Vice-Dean of the TRIUM Global EMBA
Programme. He was formerly Adecco Professor of Business and Society at London Business
School where he was the Research Director of the Centre for New and Emerging Markets and
Director of the CIS Middle Europe Centre. Saul was also Deputy Dean (Faculty and
Research) at London Business School for six years and a School governor for eight years. .
He has been a consultant to the World Bank, European Union and OECD, DfID and NERA.
He has taught executive programmes for a large number of major companies including BA,
BT, Lloyds TSB, Marks and Spencer, Vauxhall, Powergen, Deutsche Bank, ING Barings,
Swedbank and ABN-AMRO Bank.
Saul Estrin has been a visiting Professor at Stanford University, Michigan Business School,
Cornell University and the European University Institute. He is a Fellow of the Centre for
Economic Policy Research, the IZA and the William Davidson Institute. He has published
numerous papers in scholarly journals and edited, for several years, Economic Policy and
Business Strategy Review
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The future of finance. Lessons from the crisis for banks and enterprises.
Stanisław Flejterski
Małgorzata Porada-Rochoń
Abstract:
The main aim of the study is to outline the relations between regulation, deregulation and
reregulation of the banking sector. Recently, the structure of banking and finance has changed
fundamentally. The events of the past few years have proven that risk-taking in banking can
bring about significant costs for the economy. A safer banking system would mean restricted
lending services and prove a stumbling block to economic growth. The study proves that a
change in the banking regulation paradigm is necessary. In the years to come, the
development of banking sectors and financial markets will depend on curtailing political
uncertainty, improving cooperation between regulators and banks, and introducing more
efficient regulations. It is of utmost importance for the economic future of businesses.
Keywords:
Finance, banking, business, crisis economics
Bio: Professor Stanisław Flejterski – PhD, University of Szczecin, head of the Department of
Comparative Banking and Finance, member of the Finance Committee of the Polish Academy
of Sciences
Małgorzata Porada-Rochoń - PhD, University of Szczecin, Faculty of Management and
Service Economics, Department of Business Economics
Russian Economy: Between Despair and Hope
Ruslan Grinberg
Abstract:
Russia's economy is beginning to stagnate. GDP growth slowed to 2 percent per year (2013).
And, apparently, downward trend will continue in the next year. But GDP in the last twelve
years grew rapidly (7 percent per year) with the exception of a recession in 2008-2009.
Today, the average monthly income of adult resident is U.S. $ 1,000. Compared with 2000
there has grown significantly middle class (from 10% to 25% of the population). In Russia
there is no deficit in the state budget. Public debt, unlike most countries in the European
Union is no longer a problem for the local economy (12% of GDP). Russia ranked third in the
world in foreign exchange reserves (about 600 billion dollars) and has a relatively low
unemployment rate – 6, 5%. However, the country faced with three major problems which
have seriously hampered its development. First, it is a primitivisation of the structure of the
new economy that has been growing mainly due to the export of energy resources and raw
materials and the high world oil prices. Secondly, it is scandalous for a civilized country to
put up with a huge personal income gap between the few rich (10%) and the poor majority of
the population (60 - 65%). Third, there is a insufficient control over the power structures of
the country – the lack of checks and balances, and as a result – a powerful bureaucratic
oppression of the economic agents and the high level of corruption.
To stop the trend of de-industrialization of the country is badly needed the active sustained
public industrial policy. In order to give the economy a "human face" there is need to abandon
the flat-rate personal income tax, restore a progressive tax system and to increase the level of
public funding of culture, science, education and health care. Lastly, we must overcome the
"atomization" of Russian society and block authoritarian trends in the country's governance
through developing institutions of political competition and civil society.
Keywords: Market fundamentalism; transformation; fuel and raw material orientation; institutional
failure.
Bio:
Director of the Institute of Economics оf the Russian Academy of Sciences, Corresponding
member of the Russian Academy of Sciences, Professor, Doctor in Economics
Impact of Basel III/CRD4 on the situation in the banking sector
Krzysztof Kalicki
Jan Antczak
Abstract: This article provides an overview of new regulatory initiatives in the banking sector in the
aftermath of the recession that started in 2007 in the real estate market in the United States.
The package of new regulations, known in the banking environment as Basel III, includes, in
particular, strengthening the capital base of banks, improving the liquidity profile of the sector
and reducing the leverage used by banks in their activities. In addition to Basel III package,
the additional regulations are being discussed: the introduction of clearing houses (EMIR
regulation), the introduction of taxes on banking activities, etc. Deep reformation of
regulatory solutions will undoubtedly have a significant impact on banks' operating costs,
results achieved and return on shareholders. Because of its special place in the economic
system, changes in regulations may have a significant impact on the economic development
of countries. This indicates a direct negative impact of Basel III package on the GDP growth
rates through the mechanism of the growth in interest margins and reducing the flow of
money into the economy. On the other hand, the new regulations are designed to reduce the
systemic risk generated by the activities of banks. Therefore, the advantage of the new
regulations will be the decrease in the probability of a banking crisis in the economy, thus
avoiding the costs associated with the recession. The article's summary includes an analysis of
the benefits and xcosts resulting from an increase in the equity relationships in the Polish
banking sector.
Key words: Banks, regulations in the banking sector, the capital ratio, the costs of regulation in the
banking sector, Basel 3 / CRD 4
Bio:
Krzysztof Kalicki, PhD is the CEO of Deutsche Bank Poland SA and a lecturer in the
Department of Finance of Leon Koźmiński Academy in Warsaw.
Jan Antczak PRM, CFA, risk management expert. Head of risk department at Deutsche Bank
Polska S.A.
The New Pragmatism, or Economics and Economic Policy for the Future
Grzegorz W. Kołodko
Abstract
Not only is economics a means of interpreting the past and analysing the present, but it must
become an instrument that can be used to read and shape the future. On the one hand, it should
show the development of inevitable future socio-economic processes, with their links to culture
and technology, politics and the environment, for which we need to be properly prepared well
in advance. On the other hand, the economics of the future must reveal the conditions and
mechanisms of the phenomena and processes that might occur. With theoretical knowledge of
this area, knowledge-based policies and strategies of economically, socially and
environmentally sustainable development can be put in place. In the future, heterodoxy is bound
to dominate, and economics itself is likely to become increasingly more interdisciplinary.
Future generations need economics of moderation and a theory describing it, as opposed to the
thus far prevailing economics of either deficiency or excess. We need the New Pragmatism.
Keywords:
New pragmatism, economic policy, growth, development, future
Bio:
Professor Grzegorz W. Kołodko, intellectual and politician, a key architect of Polish
economic reforms. Member of the European Academy of Arts, Sciences and Humanities.
Deputy Prime Minister and Minister of Finance in 1994-97 and 2002-03. Director of TIGER –
Transformation, Integration and Globalization Economic Research at Kozminski University.
Photographer, marathon runner, and globetrotter who’s explored 160 countries.
Managerial contribution to growth in transition economies
Andrzej K. Kozminski
Abstract:
The article explores the impact of management quality on economic growth in post-socialist
transition countries. The author refers to the results of the World Management Survey and
explains the place of Polish companies in this study. The article presents the sequence of
management development phases in transition economies. Cultural changes associated with
this process are subject to detailed analysis. Transitional leadership is presented as a major
factor inducing these changes. On the basis of his research, the author conceptualizes
transformational leadership.
Keywords:
Management quality, post-socialist system transformation, transformational leadership,
economic growth, stages of management development
Bio:
Professor Andrzej K. Koźmiński, the founder and the first Rector (1993-2011) and now the
President of Kozminski University, chairman of the Board of Trustees of KU, the President of
the Board of the International Business School in Warsaw. He is a corresponding member of
the Polish Academy of Sciences. Prof. Koźmiński is an elected member of the International
Academy of Management, of Academie Europeane and Academie des Commerciales in Paris,
as well as of the Scientific Society of Warsaw. He was a Deputy President of the Central and
the East European Management Development Association, he was a member of the Board of
the European Foundation for Management Development based in Brussels and a member of
the International Committee of the American Association of Collegiate Schools of Business.
He is a member of the Presidium of the Organization and Management Sciences Committee
of the Polish Academy of Sciences and a member of the President’s of the Republic of Poland
Advisory Council for Education and Scientific Research. Also, he is a Chairman of the
Supervisory Board of Telekomunikacja Polska SA and a member of the Supervisory Board
of Millennium Bank.
Development prospects for hyper-growth companies in Poland – the Silicon Valley
experiences
Dominika Latusek-Jurczak
Abstract:
The chapter debates the processes of creating hyper-growth ventures. It is based on a
qualitative long-term field study conducted among Polish entrepreneurs aspiring to join
Silicon Valley entrepreneurial environment. Characteristics of Silicon Valley, a home to many
technology start-ups, are described. Against this background the issue of for building similar
firms in Poland is being discussed.
Keywords:
Start-ups, entrepreneurship, technology, Silicon Valley, Poland.
Bio:
Dominika Latusek-Jurczak – associate professor at the Department of Management at
Kozminski University. She also is a visiting researcher at Institute for Research in Social
Sciences at Stanford University, and she previously conducted research as Fulbright scholar
(2007/2008) at Department of Sociology at Stanford. She also a laureate of scholarships for
outstanding young scholars funder by the Polish Minister of Science and Higher Education.
She has conducted qualitative field studies in companies in Poland, Germany, Sweden and
SIlicon Valley in the US. Her fields of interest include high-growth venture creation,
interorganizational relations and trust within and between organizations.
Systemic effects of internationalization of Polish companies
Prof. Krzysztof Obłój, Mariola Ciszewska-Mlinarič, Ph.D.
Abstract: Internationalization of Polish firms, both passive and active, is a relatively new phenomenon.
Since the beginning of the 1990s we are observing accelerated integration of the Polish
economy with the global economy, in terms of both international trade and Foreign Direct
Investment. The process is crucial and results in multidimensional implications on economic
and social development. The chapter begins with a discussion on multidimensionality of
development concept. Then we present the current state of internationalization of Polish
economy and main international business (IB) theories. The following part includes systemic
effects of this process.
On the basis of currently existing theories, we point out most important effects of
internationalization for socio-economic development, both at the firm level (efficiency
improvement, development of resources, and learning outcomes) and at the level of domestic
environment (diffusion - spillover effects). The overview of empirical research confirms the
existence of above listed effects among Polish companies, which is crucial in theoretical and
practical terms.
Keywords:
Internationalization of the Polish economy, systemic effects of internationalization,
efficiency, resource development, learning, spillover effects.
Bio:
Krzysztof Obloj, Ph.D., former president of European International Business Academy, is an
advisor to the President of Poland, B. Komorowski, and distinguished professor of Strategic
and International Management. He holds chairs of Strategic Management departments at
School of Management of University of Warsaw and Kozminski University. He has regularly
taught Bodo Graduate School of Management in Norway, ESCP-EAP in Paris, and Henley
Management College in UK. As a visiting professor he taught in the USA at University of
Illinois at Urbana Champaign, Yale University, Central Connecticut State University and
Duquesne University. Professor Krzysztof Obloj is a renown corporate speaker and consultant
in Poland and advises numerous Polish and international firms (e.g. LPP, PKN, Asea Brown
Boveri, LG, Benckiser, Beiesdorf) in the areas of strategy, structure and organizational
culture. He is a member of three supervisory boards of large joint stock companies listed in
Poland.
Mariola Ciszewska-Mlinarič is assistant professor of strategic management at Kozminski
University and visiting professor at foreign universities: MCI Management Center Innsbruck
in Austria and ESSCA – École de Management in France. Her research interests evolve
around the topic of organizational strategy, strategic decision making, adaptive capabilities,
and most recently - internationalization of SMEs. She has published a number of papers in
Polish and international journals and co-authored two monographies in the field of strategic
management. At present she works on her habilitation in the area of international business
strategy.
Austerity versus development
Dominico Mario Nuti
Abstract:
Between 2011-2013 IMF researchers have revised upwards earlier estimates of fiscal
multipliers, which throughout 1970-2009 were assumed by the IMF and other international
organisations to be on average about 0.5 for advanced countries. The revision applies from
2010 and was justified by: the ineffectiveness of countervailing monetary expansion close to
the zero floor of the interest rate, lack of opportunities for exchange rate devaluation
especially in the Euroarea, by fiscal multipliers being higher in a downturn than in a boom;
and by simultaneous recent consolidation across countries. Moreover, fiscal multipliers for
expenditure cuts – contrary to earlier findings - turn out to be up to ten times higher than for
tax rises.
This paper shows that, if the fiscal multiplier is greater than the inverse of the Public
Debt/GDP ratio, fiscal consolidation necessarily raises instead of lowering the Public
Debt/GDP ratio with respect to what it would have been without consolidation. This appears
to be the case for all or nearly all of advanced countries, assuming national multipliers equal
to the newly revised average. Fiscal consolidation reduces the Public Debt/GDP ratio only in
the least indebted countries that do not need such a reduction. Consolidation makes debt less
rather than more sustainable, consequently making necessary further fiscal consolidation,
activating a vicious circle. Finally, the maintenance and growth of a gap between potential
and effective income discourages investment and slows down both potential and actual
growth.
Thus austerity and economic growth (and development) can be and mostly are alternative,
conflicting objectives.
Keywords:
austerity, fiscal consolidation, economic development, public debt sustainability, economic
crisis
Bio:
D. Mario Nuti is Professor of Comparative Economic Systems at the Faculty of Economics,
La Sapienza University of Rome (1993-2010, now Emeritus). He graduated in Law (Rome
1962), was a Fellow of the Polish Academy of Sciences in 1962-63 where he studied with
Oskar Lange and Michal Kalecki, and obtained his PhD in Economics at Cambridge, England
(1970), under the supervision of Maurice Dobb and Nicholas Kaldor.
Formerly Fellow of King's College, Cambridge (1965-79); Professor of Political Economy
and Director of the Centre for Russian and East European Studies, University of Birmingham
(1980-82); Professor of Economics, European University Institute, Florence (1982-
90). Visiting Professor, London Business School (1993-2005).
Economic Adviser to the European Commission, DG II, on central eastern Europe (1990-93).
Consultant to the World Bank and other international economic organisations. Economic
Adviser to the Polish Government (1994-1997; 2002-2003), to the Presidential
Administrations of Belarus (1998-1999) and Uzbekistan.
Author of numerous publications mostly on comparative economic systems, in particular on
1) the reform of centrally planned economies and their post-socialist transition to market
economies; 2) corporate governance and employee participation in enterprise decisions and
results; 3) economic integration processes in Europe and in the global economy.
Blog “Transition”: http://dmarionuti.blogspot.com/
The Warsaw Consensus: The New European Growth Model
Marcin Piatkowski
Abstract:
The objective of the paper is to analyze the lessons from the impact of the global crisis on the
growth prospects of ten post- socialist new EU member states (EU-10) and to discuss whether
the region needs a new growth model. The paper argues that near-term economic growth will
be lower than before the crisis, but the region will nonetheless continue to converge with
Western Europe, albeit at a slightly slower rate. However, to ensure full convergence with
Western European levels of income, well-being and happiness and to successfully compete
with other high-achieving emerging markets, the EU-10 will have to adjust its post-crisis
growth model. This paper proposes a new growth model called the “Warsaw Consensus”,
based on economic theory and assessment of the most binding constrains to growth in the
region. Given that economics has difficulty with precisely pinpointing drivers of growth,
policies under the new growth model should be guided by a new policy approach based on
experimenting, evaluating and pragmaticizing (being pragmatic); the impact of these policies
should be assessed ex ante and ex post against its impact on economic growth, well-being and
happiness (what is called here the Golden Growth Triangle).
Keywords:
Economic growth, economic history, growth model, Central and Eastern Europe, policy
reforms.
Bio:
Dr. Marcin Piatkowski is a Senior Economist at the World Bank in Warsaw, Resident Scholar
at TIGER and Assistant Professor of Economics at Kozminski University. Prior to that, he
was Chief Economist of PKO BP, the largest bank in Poland, and an economist and advisor to
IMF's Executive Director (2004-08). He served as Advisor to Poland's Deputy Premier and
Minister of Finance (2002-03), contributing to the fiscal reform program. Between 1996 and
2000, he worked in corporate banking in Poland and in the US, becoming Senior Manager in
Citibank Poland. He authored a number of books and numerous academic papers on the
impact of ICT on productivity growth, tax competition and growth prospects of Central and
Eastern Europe. He conducted research studies at Harvard University, OECD Development
Centre, and London Business School. He has been a frequent contributor to the Polish and
international media, including Financial Times and the Economist. In his free time, he enjoys
running marathons and triathlons, dancing, and reading about the economic and political
history of the world. He writes a blog at http://mpiatkowski.blogspot.com/ and is close to
finishing a book on the new Golden Age of New Europe.
Hidden Champions – The Vanguard of Globalia
Hermann Simon
Abstract:
Global exports are growing more rapidly than national gross domestic products. Globalia, the
globalized world of the future, offers virtually unlimited growth opportunities to countries and
companies who actively participate in this development. Performance differences between
countries are staggering. Among the larger countries Germany is a distant top-performer in
per capita exports. This is not due to its large corporations but to the prevalence of mid-sized,
little known world market leaders, the so-called Hidden Champions. Germany has far more of
these firms than any other country. This prevalence has both historical and modern causes.
Traditional skills have been applied to modern sectors, fierce domestic competition abounds,
a strong manufacture base has been retained and the innovativeness of the Hidden Champions
is outstanding. In addition, unit labor costs have been kept under control in Germany.
The strategies of the Hidden Champions are characterized by extremely ambitious goals
related to growth and global market leadership. They focus on narrow markets and
competencies which is a precondition for achieving world class. The narrow market focus is
combined with global selling and marketing to achieve sufficient economies of scale. The
biggest strength of the Hidden Champions is their closeness to customer, a natural advantage
of smaller companies. Their leadership is long-term oriented and grants employees great
latitude in execution which in turn creates high motivation and low turnover.
Companies in both advanced and emerging countries can learn from the Hidden Champions.
Especially emerging nations should aim at developing a strong mid-sized sector rather than
devote their resources to create large corporations.
Keywords:
Globalization,Hidden Champions, Strategy, Mid-sized Firms, Emerging Countries
Bio:
Hermann Simon is chairman of Simon-Kucher & Partners Strategy & Marketing Consultants,
with 28 offices worldwide. He is an expert in strategy, marketing and pricing and was voted
the most influential management thinker in German-speaking countries after the late Peter
Drucker.
Simon was a professor of business administration and marketing at the Universities of Mainz
(1989-1995) and Bielefeld (1979-1989, and a visiting professor at Harvard Business School,
Stanford, London Business School, INSEAD, Keio University and MIT. From 1995 to 2009
he was CEO of Simon-Kucher & Partners.
From 1984 to 1986 he was the president of the European Marketing Academy (EMAC).
Simon is co-founder of the first Special Purpose Acquisition Company (SPAC) listed on the
German Stock Exchange in Frankfurt, which acquired Exceet Group S.E. in July 2011.
Fiscal Policy for Entrepreneurship and Equitable Growth
Vito Tanzi
Abstract:
Fiscal policy is a potentially important instrument for promoting entrepreneurship,
growth and equity. It is also an instrument that may have different meaning for different
people. A first section of the paper provides definitions of of these terms and discusses how
growth may differ from equitable growth, especially in recent years when growth became
progressively less equitable. A second part of the paper discusses the problem that, as
economies have become more complex, governments have relied more and more on precise
and more complex rules and less and less on general principles to guide the behavior of those
who operate in the market. As long as the operators do not break the rules, even when their
behavior is considered unethical by many citizens, they cannot be punished. This has tended
to make the playing field more favorable for people with higher means, because they are
better able to interpret the complex rules in their favor. The third section provides some
guiding principles for governments to follow in their policies. Finally the last section
concentrates on "equitable growth', discussing why taxation has become less effective in
promoting it. It discusses the potential role of the government emphasizing that , the role that
seems desirable, is often not feasible or difficult to pursue. So that when governments
intervene too much, they often tend to do more damage than good.
Keywords:
Fiscal Policy; Entrepreneurship; Growth; Equity; Government Role.
Bio:
PhD in Economics from Harvard University.He has been: Chief of Tax Policy(1974-1981)
and Director of the Fiscal Affairs Department (1981-2000) at the International Monetary
Fund, and Undersecretary for Economy and Finance (2001-2003) in the Italian Government.
In 1990-94 he was the President of the International Monetary Fund.
He has been a consultant for several international organization including the United Nations,
the World Bank, the European Commission, the European Central Bank, the Inter-American
Development Bank and others.He has received five honorary degrees and is the authors of
many books and articles in professional journals. His most recent books are: Government
versus Markets (Cambridge University Press:2011) and Dollars, Euros and the Fiscal Crisis
(Palgrave macmillan:2013).
Income inequality and the current phase of globalization
Jacek Tomkiewicz
Abstract:
Goal of the paper is to show that the major tendencies one can observe recently in the income
structure, should be considered as a major root of crisis which begun in 2007. Declining
wages share in the GDP and rising income inequalities in both developed and developing
countries, led to development of two major causes: global imbalance and unsustainable level
of household debt.
The paper is organized as follows. First, there are presented consequences of the
contemporary phase of globalization for income structure both in developed and developing
economies. High dynamic in foreign trade together with huge capital flows depressed wages
in mature countries and increased income inequalities in emerging economies. Second, there
are shown links between income structure and dynamics of household debt in US and EU
what led to uncontrolled growth of financial sector fuelled additionally by inflow of the
capital from emerging economies which accumulated trade surpluses. Finally, there are some
opinions that economic policy governments and central banks do not solve structural
problems and in the long term social cohesion can suffer even more.
Keywords:
Income inequalities, globalization, financial crisis, fiscal policy
Bio:
Jacek Tomkiewicz is Research Director at TIGER (Transformation, Integration and
Globalization Economic Research) – research center which operates within Kozminski
University (KU) in Warsaw. He graduated from Cracow University of Economics where he
also worked as a research assistant at Department of Finance. He holds Ph.D. in economics
and he is lecturer (economics, economic policy, public finance) at KU. He was also involved
in practical aspects of economic policy – in 2002 and 2003 worked as an Adviser to the
Deputy Prime Minister, Minister of Finance, and was a member of the team responsible for
public finance reform.
Dr Jacek Tomkiewicz spent time in foreign research institution like OECD (France),
University of Brighton (UK) and Hoover Institution at Stanford University (USA). His
research interests are mainly focused on macroeconomics and economic policy in emerging
markets, he has published some of his works on this issues.