Dana Krechowicz in Poland
The Partners for Financial Stability (PFS) Program in Poland
1. Please describe what the PFS program does and how it is set up?
The United States Agency for International Development (USAID) established the Partners for Financial Stability (PFS) Program in 1999 as a public private partnership to help complete reforms necessary to have market-oriented, sound and well-functioning financial sectors in the eight Central and Eastern Europe (CEE) countries that have since joined the European Union. In 2005, the geographical focus of the program shifted to South East Europe (SEE). The goal of the PFS Program is to work with CEE and SEE countries to accelerate financial sector development and reform based on best practices as well as international standards, promoting integration into the European and international economic systems. The PFS Program provides a wide range of assistance working in collaboration with both private and public financial sector institutions, including: accounting/audit associations, Central Banks, commercial banking associations, economic faculties/universities, Finance Ministries, judicial authorities, regional financial sector groups, regulatory authorities, research institutes and stock exchanges.
2. What are some aspects of the local culture and business that should be understood when foreigners consider doing business in Poland?
It’s quite difficult for me to answer this question adequately in relation to Polish business practices. Since I was mostly doing research, I did not have any interaction with the Polish business world, other than looking at the environmental, social and corporate governance policies of 10 Polish companies. However, I do have some impressions that I obtained indirectly or through speaking with local people. First, the Polish bureaucracy when it comes to opening a business seems to be very complicated and time consuming, likely a remnant of the old communist system. However, clearly this situation is changing as Poland entered the European Union in 2004. The other thing about Poland is that, as has been documented in the press, Polish people have a very entrepreneurial spirit. However the entry into the European Union of course increased foreign competition, which put some local businesses out of business. Poland is really a country in transition as the cities are very modern and of course urban people tend to be wealthier, but there is still a sizable population that is poorer and lives in the rural areas and is engaged or somehow dependent on agriculture, though this situation is changing too.
Poland is in a tough spot right now. There are around half a million Poles working temporarily outside the country (recent departures, not counting emigrants). Most of these are young people working in the UK or Ireland. Indeed, in all of the relatives’ families I visited, at least one young person was in the UK or had recently been, to work. Poland’s young people do not have much reason to stay in their country as unemployment is very high and it’s very hard to find a well-paying job in one’s field. For Poland’s future however, the question is what will bring these young people back to Poland. Many young people do not have faith that the government is implementing the policies necessary to prevent the continuation of this huge outflow of human capital and potential from the country.
To say that Polish people are very hospitable I have found to be an understatement. Even though I have been to Poland before, each time I am really blown away by Polish hospitality. Despite their reputation as being sour, sullen people (I’ve heard in the media and that seems to be some people’s impression), I do not find this stereotype to be true. Sure, Polish people have some degree of feeling of having suffered throughout history, but overall I find them to be very warm and funny people. Poles love to tell jokes and discuss current issues. There is even a saying “put two Poles in a room and you will have three opinions”. A lot of the culture revolves around food. If you visit someone’s house, expect to eat (and probably drink) a lot. If you don’t, they will think you don’t like the food. Poland is still a deeply religious place. I would definitely advise against discussing religion and probably politics too with Poles you don’t know well, since both are touchy subjects likely to provoke strong reactions.
3. What were the direct and indirect results/deliverables as a result of your placement? Please be as specific as possible.
I conduced the research for and helped produce the final product for the 7th semi annual survey on corporate social responsibility practices in the 10 largest companies in 10 countries in Central and Eastern Europe, as well as in the BRIC countries (Brazil, Russia, India, China) and Ukraine.
Please view report here
The results and final report were released to the public at the end of my internship. This survey helps companies in these countries to benchmark their environmental, social and corporate governance practices and see what types of issues in these areas are becoming increasingly important to investors. The aim is to raise awareness so that companies can improve their practices.
4. Are there opportunities in this field for local and international entrepreneur?
The specific field of the PFS Program is a non-profit, non-governmental organization which competes for funding and undertakes projects that fulfill its particular mission and objectives. However in a broader sense, as the performance of companies in relation to the issues the survey examined – social, environmental and corporate governance policies– begins to interest more investors, there is likely to be a greater demand for consultants and other experts to help companies formulate, implement and report on such policies.
Additional Comments:
Dana Krechowicz’s Experience
1. Originally, why did you want to participate in this program?
The mission of the MBAs Without Borders organization in general is aligned with my own personal reasons for pursuing an MBA: to somehow use my business knowledge for more than just helping companies make more profits. The idea of using my business education to indirectly help advance corporate social responsibility practices in companies in Central and Eastern Europe, as well as other emerging markets, appealed to me greatly. As well, the opportunity to live and work in Poland was literally a dream come true for someone like me with Polish heritage who has always had a great interest in the country.
2. What were your main challenges, both personally and professionally?
Professionally, the main challenge was in the beginning to change my “frame” from not judging and analyzing the companies’ performance too harshly. I had come to this position straight from another internship where I had been analyzing and rating companies’ performance on the same types of issues. The first few days even though I was aware of it, it was hard to stop the judgment reflex. However, this early challenge was easily correctly with more experience and some guidance from the PFS Program director.
Personally, the main challenge was trying to fit in visits to all my friends and relatives on the weekends! Seriously though, trying to live in Polish was a challenge, though it is definitely possible to live in Warsaw without speaking Polish at all. I had learned the language in Canada and used it on a very infrequent basis. In Poland, I made a genuine effort to improve, and every day I probably learned at least 10 new words, which was at times overwhelming.
3. Was the monthly stipend of $1,000Us/month sufficient and how would change the way and what MBAs Without Borders financially covers?
Due to the fact that my accommodation and flight was covered by the partner organization, my main expenses were food and other personal items, which are very inexpensive in Poland. The prices are generally lower, even when you factor in the exchange rate. So the stipend provided by MBAs Without Borders was more than sufficient to satisfy my needs for one month.
4. What did you feel you were able to offer to the PFS program in Poland?
Of course I was able to contribute my fresh sustainability and general MBA knowledge to the project, as well as my North American and also Western European perspective (I had completed an internship in Paris just prior to arriving in Warsaw). Everything I learned in my internship in Paris was very relevant to this position (I had been a socially responsible investment (SRI) analyst), so I was able to leverage that knowledge to increase the quality of the research.
a. How was this different from what you thought you would be offering before you arrived?
I think I had a very good understanding of the project I would be undertaking prior to my arrival, thanks both to the PFS program and MBAs Without Borders in doing a good job in preparing me. As such, the internship work itself and my actual contribution was very much aligned with my expectations.
5. What would have made this experience even better for you?
Actually to be honest it was really a great experience, so it’s hard to think of how it could have been better. One thing that made it great was the fact that everything (travel, accommodations, etc.) was arranged so that made it very easy. Another aspect that enriched my experience was that there was another intern, from Bulgaria, who was there at the same time as me (arranged by the host organization). It was great to have someone to hang out with in the evenings and share the experience with. So I guess if it’s possible to have two interns in one assignment, I know that would be probably very beneficial for both interns.
6. What advice would you like to offer future MBAs who work abroad for MBAs Without Borders?
Definitely familiarize yourself with the country and its culture before your arrival, including learning some basic words. Of course I was already familiar with Poland and the Polish culture and language, so this aspect was much easier for me. I would also have in mind some ideas about how you’re going to spend your evenings and weekends and all the sights and other things you want to do. The time will pass quickly and if you don’t have some plans in advance it’s easy to miss out on some interesting experiences. Ask your local co-workers for advice on things to do and also just any general questions you may have. On the job, be ready to learn, but also to contribute your business knowledge as appropriate. If the organization can benefit from you more than just by completing the actual project you’re there for, but also to gain some knowledge transfer, the better.