Organizing for Sustainable Growth in Poland

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This article was downloaded by: [University of Minnesota Libraries, Twin Cities] On: 06 May 2015, At: 08:54 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House, 37-41 Mortimer Street, London W1T 3JH, UK Journal of the American Planning Association Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rjpa20 Organizing for Sustainable Growth in Poland Richard S. Bolan Published online: 26 Nov 2007. To cite this article: Richard S. Bolan (1992) Organizing for Sustainable Growth in Poland, Journal of the American Planning Association, 58:3, 301-311, DOI: 10.1080/01944369208975809 To link to this article: http://dx.doi.org/10.1080/01944369208975809 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http:// www.tandfonline.com/page/terms-and-conditions

Transcript of Organizing for Sustainable Growth in Poland

This article was downloaded by: [University of Minnesota Libraries, Twin Cities]On: 06 May 2015, At: 08:54Publisher: RoutledgeInforma Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House,37-41 Mortimer Street, London W1T 3JH, UK

Journal of the American Planning AssociationPublication details, including instructions for authors and subscription information:http://www.tandfonline.com/loi/rjpa20

Organizing for Sustainable Growth in PolandRichard S. BolanPublished online: 26 Nov 2007.

To cite this article: Richard S. Bolan (1992) Organizing for Sustainable Growth in Poland, Journal of the American PlanningAssociation, 58:3, 301-311, DOI: 10.1080/01944369208975809

To link to this article: http://dx.doi.org/10.1080/01944369208975809

PLEASE SCROLL DOWN FOR ARTICLE

Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in thepublications on our platform. However, Taylor & Francis, our agents, and our licensors make no representationsor warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Anyopinions and views expressed in this publication are the opinions and views of the authors, and are not theviews of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should beindependently verified with primary sources of information. Taylor and Francis shall not be liable for any losses,actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoevercaused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content.

This article may be used for research, teaching, and private study purposes. Any substantial or systematicreproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in anyform to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http://www.tandfonline.com/page/terms-and-conditions

Organizing for Sustainable Growth in Poland

democratic market cusses ac ievemen s an 1 iculties in seeking both effehctive en:ironkezl protection and

restmctufing since 1989 and examines the country,s future needs and problems. The

Richard S. Bolan

ministrative districts (voivodships) as shown on Figure Bank lgS99 61)*

HOW did a government with strong central planning come to have significantly worse pollution than largely unplanned Western economies? Not that any industrial

Following the end of Communist rule in 1989, Poland has been facing the difficult challenge of responding to the legacy of a devastated envi- ronment amid an overwhelming economic crisis. This article describes how Poland has been re- sponding to this challenge, with particular focus on the country's policy of sustainable develop-

Poland is one of the most polluted nations on earth. It relies on domestic coal for nearly 80 percent of its primary energy supply and its high demand for energy places its emissions of SO2 as seventh in the world (World Bank 1989, 35). On the European continent, Poland is the sec- ond largest emitter of sulfur compounds (see Table 1) and the fifth largest emitter of nitrogen oxides. Poland exports over 60 percent of both pollutants to neighboring countries and thereby poses a significant threat to the regional environment. Poland is also the eighth largest emitter of carbon dioxide in the world (Bochniarz and Bolan 1991, 340-1).

The Polish economy is sluggishly tilted toward heavy industry-iron and steel, metallurgy, chemicals. Obsolete technology in these industries sets up inefficient energy use, which contributes to high energy demand. The Communist government was negligent in the regulation of industrial waste management and of air and water emissions. Additionally, farmers intensively used chem- ical fertilizers and pesticides. The result is massive levels of air, soil, and water pollution covering large regions of the nation. Recent studies have found extreme environ-

. mental hazards in almost one-half of the country's ad-

Between 1949 and 1989, the West had access to more planning literature about Poland than about any other

Bolan is with the planning program of the Hubert H* Humphrey Institute Of Affairs at the UnlversltY

Communist nation, particularly in the area of city and regional planning,' Polish planners, however, gave rel- of Minnesota and has been engaged in research and

planning in Central and Eastern Europe since 1989. atively little attention to environmental planning.2 The essential contours of Polish planning during the

Journal of the American Planning Association, Vol. 58, No. 3, Summer 1992. OAmerican Planning Association, Chi- cago, IL.

(hmmunist Years were as we suspected them to be: The government established a hierarchical command planning system in Poland in 1949, which continued through the

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TABLE 1: Deposition of SO2 in selected Euro- pean countries, 1980

Deposition Country (1,000 tons/year)

Czechoslovakia 2,999 Poland 2,825 France 2,568 West Germany 2,474 Italy 1,989 United Kingdom 1,936 Romania 1,902 East Germany 1,720 Spain 1,579 Yugoslavia 1,461 Austria 690 Hungary 51 9

Source: Estimates of Highton and Chadwick, 1982. Quoted in World Bank back- ground paper, Poland: The Environment, June 8, 1989, 35.

late 1950s. This was the Stalinist period, when the gov- ernment installed institutions modeled after those in the USSR. Poland had a parliamentary form of government, but the prime minister and the Council of Ministers made most administrative decisions (under the key influence

of the Communist party). In the Stalinist period this group became the operational center of power. The ministers managed the areas of defense, finance, and foreign affairs, as well as the key industrial sectors of the economy. Within the council was the Central Planning Commission, a highly technical and politically powerful staff whose responsibilities included comprehensive allocation of all materials, long-term plans geared to prospective resource balances, budget grants to enterprises for major invest- ment outlays, and centralized fixing of prices and wages.

The 1950 government framework also established ter- ritorial administrative and planning bodies. Before World War 11, Poland had seventeen regional governments, known as voivodships. Below these were district gov- ernments and finally local governments. Local govern- ments enjoyed relative independence before the war, but this ended in the Stalinist period. Though residents elected local people’s councils, the state and party con- trolled administration and planning at the local level. Be- tween 1972 and 1975, Poland reformed the territorial system, bringing it even more under central domination. The so-called “people’s councils” were, in fact, the local agents of the central government (Radecki 1990).

Although primarily focused on sectoral economic planning, the Central Planning Commission necessarily

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FIGURE 1 : Areas of ma- jor environmental haz- ard by administrative division, 1989.

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TABLE 2: Pre- 1989 environmental protection actions of the Polish government

1925 1934 1960 1961 1966 1972

1976 1980 1983

1987

Established the State Council for Protection of Nature Passed the first Nature Protection Act (amended in 1949) Established Central Office for Water Management Passed Water Protection Against Pollution Act Passed Air Protection Against Pollution Act Established Ministry for Local Management and

Constitutional amendment for environmental protection Passed Environmental Protection Act Established Office of Environmental Protection and

Established Ministry of Environmental Protection and

Environmental Protection

Water Economy

Natural Resources (Forestry added 1989)

Source: Jerzy Jendroska and Wojciech Radecki (1 990). The Environmental fro- tection Act 7980-An Overview and Critical Assessment, Humphrey Institute, University of Minnesota.

engaged in spatial planning and gave considerable atten- tion to the appropriate location of new investments (Jachniak-Ganguly 1978, 5 1). Six principles guided the commission in the location of production forces (Dawson 1987, 23):

Siting production as near to raw material sources and centers of consumption as possible; An even distribution of economic activity throughout the country; A rational division of functional specialization among economic regions, with an integrated development of the economy of each; Improvement of the economic and cultural levels of backward areas; Elimination of the disparities between urban and rural areas; and Strengthening the defense of the country.

Understandablv, these Drinciules were often in conflict. Heavy industry *favored’Low& Silesia (Wroclaw) and Upper Silesia (Katowice) and today these are the most heavily polluted regions of the country. Nonetheless, significant urban development occurred in virtually every part of the country; the concomitant pollution was and continues to be ~ i d e s p r e a d . ~

Central planning had distinct theoretical notions about industrial structure in this early period. Like their coun- terparts in the West in the 1940s and 1950s, planners under Stalin saw heavy industry as the primary driving force of economic growth. Iron and steel, metallurgy, chemicals, and large-scale engineering works comprised the “means of production,” and held top priority in the command of material and labor resource^.^ They viewed light industry or industry oriented to consumer goods as the “means of consumption” and of secondary impor- tance, along with agriculture.

In the Stalinist period, the Central Planning Commis- sion flourished, then waned. It set priorities and produc- tion targets, it reallocated resources, it controlled the

investment budget. For a brief period surging industrial growth signalled some success, partly achieved through the liberal use of surplus agricultural labor and the reas- signing of the best engineers and managers to high prior- ity sectors (Montias 1962; French and Hamilton 1979, 187, 203). Gradually, however, the advantages of central planning diminished. Given Poland’s heavy population losses in World War 11, central planning soon ran out of surplus agricultural workers. Because educated profes- sionals were also in short supply, their concentration in the top priority sectors led to severe labor shortages in the greater economy. The lack of housing and infrastruc- ture sabotaged the planned migration of workers to new industrial centers. The neglect of light industry’s input needs led to inadequate and inferior consumer goods and ultimately to popular unrest (Montias 1962). Pricing pol- icies undervalued the “means of production” (heavy in- dustry) and overvalued the “means of consumption” (consumer industry). The government fixed wages at low levels, despite labor shortages. The incentives thereby encouraged wasting both materials and labor. In the late 1950s and early 1960s, productivity increased at much reduced rates.

The Central Planning Commission staff appeared to work at a high level of sophistication. Early in the first five-year plan the commission focused on material stock balances. As part of subsequent five-year plans, the staff based its recommendations on input-output models, adapted for a socialist economy. The central planners of the 1950s faced numerous theoretical and technical problems. Operational problems included difficulties in acquiring accurate and timely data and the lack of high- speed computers. Finally, coordination problems between and among ministries and territorial units also proved daunting (Montias 1962). As Hamilton points out:

From 196 1 to 1972 two distinct vertical subsystems operated, with few real links. First, five-year spatial- economic plans were devised by the Planning Commission at the Council of Ministers, which co- ordinated the broad regional distribution of sectorial growth drawn up separately by central ministries in consultation with voivodship and district Com- missions for Economic Planning. Second, physical and master plans, drafted for twenty-five year pe- riods by town planning offices in towns, districts and voivodships, were approved and coordinated centrally by the Committee for Town Planning and Architecture and after 1964 by the Ministry of Construction and Building Materials (1 979, 203).

Although one of the central government goals had been the even distribution of development, the largest cities, the seventeen voivodships, and their districts competed for new heavy industrial development and the accom- panying investment in new infrastructure. Between 1972 and 1975, a two-tier territorial system replaced the three- tier system of the 1950s and 1960s to allow central gov- ernment to better control investments at the local level.5

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The government established forty-nine voivodships (dis- tricts) and some two thousand localities, an arrangement that exists today.

Reforms tended to vacillate between decentralization and centralization. Given the powerful influence of the Communist party, however, such vacillation tended to be the result of turf struggles among various bureaucrats. Voivodship administrators were agents of the central government and Polish citizens disdainfully viewed them as the nomenklatura. However, after the unrest of 1956 the predominance of central planning began to vacillate. Various reforms in the 1960s and 1970s tended slowly to infringe on its power.

A 1961 parliamentary act spelled out the first local planning prerogatives. Subsequent legislation in the 1980s continued to express the ambivalence toward real reform and steps taken in the early years of the decade both strengthened and weakened the local planning function. The planning law of 1982 broadened local planning powers to include social and economic dimen- sions. The planning law of 1985 required, among other things: (1) replacing the word “planning” with the term “land-use development;” (2) the preparation of alterna- tive development proposals; ( 3 ) mandated consultation at all levels of government; and (4) opportunities for cit- izen consultation. Martial law, however, was in effect and few citizens took advantage of this opportunity. The stipulation for public participation was minimal: It re- quired that local plans be placed on public display for at least two weeks, but there was little provision beyond that.6 Nonetheless, the act established at least a beginning commitment toward consultation in the planning process. At this time, voivodships gained the power to veto lo- cation decisions of the Central Planning Commission. In 1989 the government abolished the Central Planning Commission. A Central Planning Ofice now exists, which serves only to maintain data banks; conduct economic, social and spatial research; and play an advisory role.

Environmental Protection in the Socialist State

Stalinist planners held that pollution and other forms of environmental degradation were the consequences of a capitalistic economy, and were not a problem for so- cialism. A more realistic assessment emerged in the early 1960s (Dawson 1987, 3 1). The history of environmental concern in Eastern Europe parallels that of the West. The United Nations Conference on the Environment in 1972 in Stockholm raised serious concerns that resulted in the passage of many new environmental laws in East- ern Europe, Western Europe, and the United States (Bochniarz 1 988).7 Despite a legislative history similar to Western industrial nations, Poland’s environmental condition has continued to severely deteriorate.

Poland’s laws and policies focused primarily on build- ing public works to treat environmental hazards rather than on requiring industries to prevent pollution. The government had little enforcement power with which to

regulate state factories and mines. Factories had to apply for discharge permits, but the fees were low and not charged against profits. Polish firms operated on a cost- plus basis (with many raw materials heavily subsidized). The government heavily taxed surpluses, leaving a small portion for reinvestment. Discharge permits were simply another cost of doing business.

The government levied fines against factories and mines that violated their permits, but the fines, too, were very low and did not count as costs of production but as an unusual loss. Jendroska and Radecki state: “The fines were [a] complete fiction in the absence of real economic calculation and because of financing unprofitable facto- ries” (1 990). In short, charges and fines imposed by one ministry were, in effect, canceled out by another through a deduction from taxes. There was simply no incentive to stop polluting or to upgrade technology. Additionally environmental regulators were handicapped with prim- itive and limited monitoring equipment. The state con- trolled the scientific laboratories and heavily censored the reporting of environmental conditions. The court system provided no recourse. State agencies felt above the law, and a citizen’s right to bring state agencies to court was at best a fiction.

Thus, the ideological premise that only capitalist eco- nomic organization produces pollution backfired in Po- land and other socialist states. It is evident that political and economic development in the Soviet bloc yielded far worse pollution than the more open, diversified, and bal- anced economies of the Western capitalistic democracies.

Post-Revolution Endeavors In mid-1 988 Poland was in the grips of the labor unrest

that paved the way for the Roundtable Talks of winter 1989. A panel on the environment-the Ecological Roundtable-concluded that the solution of the ecolog- ical crisis depended on a strategy of sustainable devel- opment that would balance ecological goals with eco- nomic and social ones. The talks affirmed that Poland must establish a safe environment to protect human health and must achieve balance in basic ecosystems as necessary preconditions for social and economic devel- opment. The panel called for restructuring the national economy through regional strategies of sustainable de- velopment and appropriate assessments of the environ- mental risks of planned projects. Finally, the panel rec- ommended establishing legal sanctions and an organi- zational base for effective environmental protection and strengthening the enforcement functions of the Ministry of Environmental Protection, Natural Resources, and Forestry (MEPNRF). The panel also recommended greater public participation in the development of en- vironmental protection strategies.

The Roundtable Talks brought revolutionary changes in Poland, including the creation of a two-chamber par- liament. The upper chamber (the Senate) was open to free elections in June 1989 and Solidarity members won every seat in that chamber. The lower chamber (the

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Sejm), by agreement of the various parties, had only 3 5 percent of the seats open to non-Communist party mem- bers. As a result of the 1989 elections, Solidarity took control of the administrative apparatus of the state, nam- ing the prime minister and a majority of heads of other ministries. In 1990, the general electorate chose Solidarity leader Lech Walesa to be president, in the second stage of government transformation. New parliamentary elec- tions took place on October 27, 1991. This time, no seats were reserved for any party, thereby completing the transformation to wholly free elections.’

Economic Reform In January 1990, the new government’s most significant

and immediate program was economic reform. The gov- ernment introduced austere fiscal policies to reduce bud- getary deficits and stop inflation, which included (Rosati and Bochniarz 199 1, 243-8):

Major cuts in government expenditures for internal se- curity, defense, and public administration. As a result of this reform, the government deficit went from 7 per- cent of GDP in 1989 to a surplus of 3 percent of GDP by July 1990. A surplus continued through January 199 1, but the current severe recession has again thrown the budget seriously out of balance (Central Statistical Ofice 1991, 34). The abolition of price controls and subsidies for enter- prises including energy subsidies and investment sub- sidies. Subsidies represented over 50 percent of the state budget and 15 percent of GDP in 1989. As of April 1991, they were about 15 percent of the state budget and 5 percent of GDP (Fimznciul Times 199 1, 111-2). The imposition of heavy taxes on wage increases above 5 percent as a means of freezing wages. In late 1990 this law was amended to exempt private firms to en- courage privatization. The drastic restriction of credit creation by raising in- terest rates to market levels. Liberalizing foreign trade and establishing the conver- tibility of Polish currency to balance the supply and demand in foreign exchange. Establishing a program of privatization of state enter- prises. Securing a credit line from the IMF, a stabilization fund of $1 billion from OECD, and foreign aid from the U.S. and E.C. countries. Establishing a stock market in April 1991 in Warsaw and a second exchange in Krakow in September 199 1.

The financial program said little about environmental improvement. Poland’s leaders hope that these economic reforms will lessen wasteful practices (particularly in en- ergy) and that the development of free market institutions will provide a framework for successful implementation of economic measures such as emission trading,g tax in- centives, and super fund devices.

A high priority for Poland was the empowerment of local governments, which occurred in spring and summer 1990. Parliament passed a law allowing local govern- ments to carry out their responsibilities “in their own name,” not in the name of the state. The local govern- ments now have independent legal status. Their respon- sibilities include (1) technical infrastructure, (2) social infrastructure, (3) guaranty of public law and order, and (4) the guaranty of ecological and spatial order. Envi- ronmental protection is an important charge for local governments through their responsibility for land use planning, waste disposal, and the protection of green space (Radecki 1990).

Though the charge is clear, the most difficult problem of all-the financing of local government activities-is uncertain and most local governments have been unable to tool up to carry out their new, independent powers. Thus, the law acknowledges the role of local governments in sustainable development, but there has been little op- portunity to work out intergovernmental relationships and financing.” The central environmental ministry, MEPNRF, unsurprisingly, feels that the key responsibil- ities for sustainable development must be centralized. Local governments, however, particularly in the larger cities, need to have some clarification of their role and are exerting considerable pressure to gain broader pow- ers in land use planning and sustainable development.

Environmental Protection and Sustainable Development

Poland’s initiatives toward environmental protection and sustainable development are moving ahead, though more slowly than economic reform. MEPNRF, early in 1990, negotiated two important programs with foreign assistance. The World Bank provided a loan of $1 8 mil- lion for the ministry to undertake a four-pronged program: (1) policy management and program coordination, (2) in- dustrial efficiency and environment reviews, ( 3 ) air qual- ity planning and management, and (4) water resources planning and management. The program focuses on the heavily polluted regions of Upper and Lower Silesia.

The European Community has contributed $26.7 mil- lion for projects in air and water protection, waste man- agement, nature protection, and environmental educa- tion. In 1991 the European Community approved $36.5 million for a second-stage program that includes the preparation of a master plan for Upper Silesia for water management and protection, air protection, waste man- agement, and the elimination of agricultural production from polluted land. Poland has entered into numerous other bilateral arrangements (see Table 3).

In November 1990 Parliament adopted a National En- vironmental Policy, which formally commits Poland to pursuing sustainable development. The policy sets forth a ten-point program of immediate action over a three- to four-year period (see Table 4). The priorities reflect the most immediate dangers to human health. The policy also defines medium-term priorities to bring Poland into full compliance with European Community environmen-

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TABLE 3: Sources of financial aid to Poland for environmental protection: September 199 1

Amount Source (millions U.S. dollars)

International organizations World Bank European Community

Phase I Phase II

Bilateral assistance United States Sweden Switzerland Denmark Finland Netherlands Norway Belgium United Kingdom

Total

18.0

26.7 36.5

36.7 33.0

5.7 3.4 2.5 2.2 2.0 1.9 0.3

168.9

Source: The State of the Environment in Poland: Damage and Remedy. Ministry of Environmental Protection, September 1991, p. 70. Foreign exchange rates from New York Times, September 21, 1991.

tal standards by the year 2000. Long-term priorities after 2000 introduce sustainable development principles into the entire economy.

By the end of 199 1, however, legislative progress had been slow. Parliament had passed only one new law that significantly strengthens the national enforcement agency, the State Inspectorate for Environmental Pro- tection. Since early 1990, under the auspices of the In- stitute of State and Law, Polish Academy of Sciences, a commission of legal experts has been working on revising the comprehensive environmental law of 1980. The most recent draft-the seventh-seeks to enhance the law's comprehensiveness by combining it with the law on na- ture protection. The process is complex, involving con- sultation with Czechoslovakia and Germany as well as assuring conformity with European Community stan- dards.

Poland's transformation to democracy is also delaying passage of the comprehensive law. The president, prime minister, other ministers, and the ministers of parliament, in addition to MEPNRF, all have the right to submit drafts and amendments. Moreover, participants seem to seri- ously disagree about the extent of public participation to be allowed by the new act."

Despite limited legislative action, MEPNRF has moved ahead on near-term priorities. The agency has closed chemical factories in Jelenia Gora and Chorzow, a steel factory in Byton, and coke plants in Katowice and Wal- brzych. The Council of Ministers in 1990 set maximum permissible standards in fuel combustion for SO2, NO,, and dust. Additionally, MEPNRF now charges fees and fines that are forty times higher than they were two years ago.

Coal washing projects are underway in four mines where coal is especially high in sulfur. These, and four- teen similar planned projects should reduce SO2 emis- sions by 25 percent in the next few years. Engineers have discovered methane deposits in Upper and Lower Silesia. The ministry expects production of this cleaner fuel product to double in the next five to seven years. Through bilateral aid, projects are underway to switch from household heating to gas or district heating in Krakow, Walbrzych, and Torun.

MEPNRF is establishing seven water districts: four in the Vistula watershed; three in the Oder watershed. The ministry is administering the now fully operating pilot district project in the Upper Vistula Basin funded, as stated above, by the World Bank and the European Com- munity. MEPNRF has launched a national survey of mu- nicipal waste management needs with support from Eu- ropean Community funds. The United States is helping to finance a waste-management system in Warsaw, waste water treatment in Lodz, and schemes to reuse solid wastes in a Katowice steel mill. Funding from Switzerland and Denmark is helping efforts to improve waste man- agement and to train municipal personnel.

The abolishment of censorship in Poland has expanded public awareness of environmental problems. Recently, the Central Statistical Ofice published a yearbook on the environment, which paves the way for more independent research on environmental conditions. In September 1990 nongovernment environmental groups and citizen activists celebrated a major victory when the government decided to abandon its $1 billion investment in Poland's first nuclear power plant and stopped construction. Other ecologically significant events include the establishment of an independent Commission for Environmental Impact Assessment with strong participation from the forty-nine voivodships. Finally, Poland is developing three new na-

TABLE 4: Immediate near-term priorities for sustainable development in Poland: November 1990

1.

2. 3.

4.

5. 6. 7.

8.

9. 10.

Working with the 500 most significant polluting enterprises through voivodship governments. Implementing a coal quality improvement program. Significant reduction of dust and gaseous emissions, particularly in the Upper Silesia region. Modernization of water works systems and reduction of pollution of the Vistula, Oder, and Pomeranian rivers and their tributaries. Creating modern system of water management. Creating a modern solid waste disposal management system. Reduction of food crop production on toxic soils. Beginning reduction of polluting effects of transportation and communication. Improvement of ecological conditions on borders with Czechoslovakia and Germany. Reforestation program. Public education.

Source: Ministry of Environmental Protection, Natural Resources and Forestry (1 990). National Environmental Policy, Warsaw: The Ministry, November 1990,12-13.

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tional parks: Stolowe Mountains, Mazurian Lake Region, and the Bierbrza Valley. The World Wildlife Fund is par- ticipating in the project to protect the Bierbrza marsh lands. Efforts are also underway to set up common park lands at the borders with Byelorussia, the Ukraine, Ger- many, and Czechoslovakia.

Poland spent 0.8 percent of national income on envi- ronmental protection in 1987, 1988, and 1989. In 1990, this dipped to 0.6 percent. In 1991, this percentage will probably more than double to 1.5 percent.I2 Foreign aid has been an important catalyst to environmental protec- tion, although, to date, it represents only 5 percent of Poland’s expenditure on environmental protection. In 199 1 Poland negotiated a debt-for-nature agreement with Western European countries. Under this agreement, part of Poland’s debts are forgiven provided the savings are invested in environmental protection.

Privatization The country’s privatization efforts involve both the

Ministry of Privatization and MEPNRF. The privatization of each state enterprise usually involves an environmental audit, in which the settlement of past environmental damages and liabilities are negotiated on a case-by-case b a ~ i s . ’ ~ In some cases the government may subsidize mitigating actions. Thus far, few state firms have been privatized. The pace of privatization is quickening, how- ever, suggesting that specific criteria and procedures need to be developed for the negotiation^.'^ Stronger man- agement will also be required for the allocation of new permits to the privatized enterprises.

Nongovernment Organizations Since the late 1980s about two hundred new nongov-

ernment organizations (NGOs) have emerged in Poland, devoted to environmental protection and sustainable de- velopment. The largest and oldest, the Polish Ecological Club, has seventeen regional branches and five thousand members. The PEC sponsored an International Forum of NGOs in November 1990. At home, the club, working with other groups, has actively promoted the develop- ment of new national parks, ecological agriculture, awareness of the relation between environmental pol- lution and health, and the improvement of ecological education. In 1989, six members of PEC won seats in Parliament, and thirteen members, including the chair, serve on the Environmental Impact Assessment Com- mission (Polish Ecological Club 1 991).15

The Polish Ecological Club also helped found the In- stitute of Sustainable Development in Warsaw in 1990, a prominent organization devoted to developing effective institutions for promoting sustainable development in Poland. Also founded in 1990 was the Institute for Energy Efficiency.

Issues and Problems for the Future Bochniarz’s comparative study delineates three stages

in recent efforts toward environmental protection (1 990):

1. Regulatory Stage: In the 1960s and 1970s govern- ments created laws to regulate the discharge of pol- lutants into the air and water. Clean-up and prevention relied chiefly on governments establishing law en- forcement institutions. Most industrial countries fol- lowed this path in the early stages of developing their environmental policy.

2. Economic Incentive Stage: In the 1970s and 1980s some countries created economic incentives for pro- tecting the environment. The U.S. has played a prom- inent role in creating a range of mechanisms from developing trading markets for pollution rights to es- tablishing recycling incentives.

3 . Sustainable Development Stage: In this emergent phase governments seek to integrate the goals of eco- nomic growth and development with the goals of en- vironmental protection. Recent theoretical work in environmental economics suggests approaches for this (Pearce, Markandya, and Barbier 1989).

This third stage seems to be shaping the current climate of reform in Poland. The major thrust of recent initiatives is to integrate the economic and environmental restruc- turing of the country. Poland’s task, like that of most Eastern Europe countries, is redevelopment rather than development from premodern conditions. Poland’s eco- nomic reform program is the most extreme in the region (barring German reunification), yet it is unclear whether Poland has the framework in place to achieve its goals. The country’s basic institutions-government, finance, church, and community-are all evolving. The country must find: (1) a viable theory of economic and social development; (2) an institutional framework for effec- tively planning for sustainable development: and ( 3 ) a theory or model of environmental planning that can suc- cessfully adapt to the country’s emerging market de- mocracy.

Theories of Development and Urbanization Many theoretical issues emerge in the post mortem of

planning in Communist economies. Central to any pro- gram of economic development or environmental pro- tection is the issue of land, its resource values, its con- tribution to production processes, its transfer value, and the manner of constraining or limiting its use. Yet, Marx argued that land had no value.

Hamilton, in 1979, noted:

[Marxist] practitioners and theorists alike now argue that land does have a value, both to each urban enterprise and to society as a whole. The . . . task is for them to devise realistic measures of value which can be charged as fees for transferring use, and so to influence land use to benefit both (219).

In Poland, the land market is a hybrid. The major share of agricultural land is privately owned. Urban land has mixed markets. Public ownership dominates with either

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the central government or the municipality owning major parcels. Cooperative ownership of urban land is another large segment, while prewar housing, where it still exists, is likely to be privately owned.

Mechanisms for determining prices also raise crucial theoretical and practical concerns. The manner in which Poland and other former Soviet-bloc countries set prices contributed to material shortages and masked the true economic and social costs of heavy industrial enterprise. In market economies, prices are assumed to be set by supply and demand; the unseen hand supposedly removes the price mechanism from arbitrary intrusions and ren- ders an infallible measure of value. This, of course, does not work in practice. Environmental pollution, in fact, is the classic example of how markets fail to account for social costs (externalities).

The breakdown of Communist markets and the failures of capitalist markets suggest the need to conceptualize new approaches to economic growth and development problems. Can these two opposing ideological ap- proaches to economic allocation and valuation be selec- tively integrated to incorporate the goals and aims and best experiences of both? This issue is, as well, the un- derlying challenge of the concept of sustainable devel- opment.

Most economists and planners concede that the tra- ditional theories of growth are inadequate. The failure of Western efforts to assist underdeveloped nations through large-scale investment in heavy industry was paralleled in the Communist world. Poland has now em- braced the IMF neoindustrialist theory of development that is also currently being tried in Third World countries in Latin America-the rapid transformation to a market economy, termed “economic shock therapy” (Weiner 1990). This approach to economic development has been harsh and painful in terms of unemployment and has drastically reduced consumer purchasing power. Pro- duction continues to decline, and unemployment reached 12 percent in January 1992 (2,230,000 out of work) (Economic Review 15-92, 1).

The challenge for a new development theory spills over into areas of urban and regional land and spatial planning. The contrasting development paths of capitalist and so- cialist cities constitute a dialectical paradox: The spon- taneous Western city, despite its seemingly chaotic growth, has elements of order and symmetry in social, economic, and physical terms. Though methodically and systematically planned, socialist cities exhibit disorder and environmental squalor.

Yet most puzzling is the realization that planning staffs in Poland, at both the national and municipal levels, were relatively sophisticated (Montias 1962; Fisher 1966). Their technical methods were reasonably appropriate, and probably were as good if not better than those of Western city planners. Yet they failed to see the emerging environmental problems until they became severe. Per- haps the planners had the skills but not a nourishing in- stitutional framework, which is now being sought in the country’s pursuit of sustainable development.

Theories of Institutional Design Thus, planning failed because it was embedded in

deeply flawed institutional frameworks. The govern- ment’s excessively centralized hierarchy created rigidities that kept planners from coping with complex problems (Bolan 1987) and engendered unduly excessive trans- action costs. Surreptitious, alternative institutions emerged spontaneously to serve individual needs, yet, these institutions undermined the goals of central gov- ernment. Variously called “shadow markets,” “secondary markets,” and “black markets,” they constituted both consumer and producer markets (Hewett 1988; Wedel 1986). Such spontaneous and hidden patterns of behavior also operated within the party structure and the admin- istrative organs of the government and undermined col- lective planning efforts.

In sum, Poland needs to design and plan a viable in- stitutional framework. Yet operational theory in this area is not well understood. Theorists need to closely analyze and understand institutional and extrainstitutional be- havior to formulate new institutional designs that can provide more favorable auspices for sustainable devel- opment.

Berger and Luckmann’s pioneering work on institu- tional development, The Social Construction of Reality (1967), suggests the complexity of the task.l7 The follow- ing factors are important in designing an institutional framework that would enable Poland to pursue sustain- able development:

Conceiving of processes as well as structures in the design of institutional configurations. To do otherwise is to reify institutions and overlook their essence as a web of human relations and legitimated practices. This means keeping in mind the contingent and fragile nature of what is being designed as distinct from static, hier- archical structures. Accounting for interactive processes as against linear procedures. Institutions exhibit an alternating play of conflict and synthesis, of differentiation and resolution, of process and product, of authority and responsibility. They are, in effect, charged with ambiguity and con- tradiction. Inventing schemes of human relations as well as re- lations to material resources. This means understanding the dialectical, historical processes by which rules come into being, become legitimated, and ultimately lose their logic. Including rules for changing rules, acknowledging that, as patterns of human practices, institutions are con- stantly being shaped, even if changes at any given mo- ment appear glacial or trivial. Thus, a well-designed institution would include the provisions for its own transformation. Creating institutions that inspire not only efficiency and effectiveness but also loyalty, spirit, energy, confidence in conflict resolution, and mutual help. The dialectic relation between individual identity and collective in- terests is the critical dynamic in institutional design.

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Central, large-scale, hierarchical bureaucracies con- sistently fail the test of this relation. Poland’s Com- munist state for forty years was permeated by a disloyal, distrusting, apathetic, and alienated citizenry.

In some respects, institutional design is analogous to a problem in game theory. In terms of the current critical and difficult environmental conditions in Poland, the question can be posed whether it is possible to devise a game (an institution) with rules that provide an appro- priate mix of cooperation and competition, by which people acting in their own interests, behave in such man- ner as to be economically productive, enhance or mini- mize damage to the environment, and plan for the con- servation of its resources all at the same time (Hurwicz 1987, 401). The big question in designing new institu- tions, then, is providing specific contexts for learning and legitimating new behavior. The metaphor is one of a learning society embarking on a journey rather than being boxed into a structure.

Planning Models

argues that capitalism has taken away: John Friedmann, in Planning in the Public Domain,

A genuine political life with widespread citizen

Territorial autonomy in production and politics, The collective self-production of life, The discovery of one’s individuality in the context

However, with the lid of secrecy removed from Central and Eastern Europe, we see that it is not just capitalism that dispossesses humanity in this fashion-Friedmann’s list identifies the core hardships in the Communist states since World War 11. If anything, the legacy of Stalinist rule has meant that communism has been more dehu- manizing than capitalism.

If nothing else, the pluralism of the United States has forced planners to look more carefully at the social re- lations embedded in planning processes. We have been unable to assume hierarchical command powers. Thus, we have been forced to devise and experiment with transactional models that have driven us to understand the factors involved in collaboration, negotiation, bar- gaining, and conflict. We have also been enmeshed in institutional settings that are more flexible and less Kaf- kaesque than those in Poland. In sum, we have had to learn the complex devices of social mobilization-some- thing Polish planners assumed could be done simply by control and command.

Variants of these models will be very important for planning for sustainable development in Poland. Even in autumn 1989, Polish town planners seemed confused by Western visitors inquiring about citizen participation in the planning process (Judge and Oakley 1989). A more open society with more flexible and participatory insti- tutional designs will require appropriate and adaptive models of planning practice. As in the Western demo-

involvement,

of specific social relations (1987, 387).

cracies, developing a balance between substantive tech- nical skills and sociopolitical transactional skills will be- come a question as dominant for Polish planners at all levels-national, local, economic, social, and environ- mental-as it is for their counterparts in the United States.

As Timothy Garton Ash (1 990) has pointed out, Poland needs to convert from anti-political talk to working po- litical talk; from tearing down to building; from viewing conflict and dissent in the black and white terms of the legitimate versus the illegitimate to understanding the integral ambiguities and contradictions in the dialectical process of governance and development. This means a central focus on the legitimacy of nonviolent conflict as a core activity in a free, pluralistic, learning society.

Restoring environmental integrity while escaping from the depths of economic crisis will require public and pri- vate planning capabilities of an unprecedented sort. The fundamental challenge is finding more effective ways for fallible, competitive, altruistic, and visionary human beings to live and work together-both among them- selves and with the supporting natural environment. This requires deeper probes into the nature of social cohesion, power, and conflict than has yet been explored. The fu- ture efficacy of planned change of all kinds rests heavily on gaining this deeper understanding.

AUTHOR’S NOTE

Preparation of this article has been assisted by funding from the Ford Foundation, the Rockefeller Brothers Fund, and the Rockefeller Family Associates. The author grate- fully acknowledges the assistance of Ewa Borkowska, Ministry of Local Self-Government; Jerzy Jendroska, In- stitute of State and Law, University of Wroclaw; Dr. An- drzej Kassenberg, president, Institute for Sustainable Development; and Stanislaw Sitnicki, director, Project Implementation Unit, Ministry of Environmental Protec- tion, Natural Resources and Forestry.

NOTES

1. Fisher’s 1962 essay in the journal of the American Znstitute of Planners was an early contribution (1 962; see also Pioro, Savic, and Fisher 1965). Fisher later edited a volume, which included detailed descrip- tions of technical and administrative approaches to planning (1 966). A critical study of central planning in Poland by Montias was also published in this pe- riod (1 962). Jachniak-Ganguly (I 978) provided an insightful report on governmental reforms of the mid- 1970s and Hamilton’s work (1 979) provides a unique grasp of the workings of land use, land markets, and city planning in Poland. The works of Dawson (1987, 1989) and Regulski et al. (1988) are important aids to understanding contemporary planning in Poland.

2. Studies of environmental conditions have been rel- atively recent in Poland. Notable has been the work of Bochniarz (1 988), Bochniarz and Kassenberg (1988), a comprehensive study by the World Bank (1989), and the recently published proceedings of a

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1990 conference in Poland (Bochniarz and Bolan 199 1).

3. One example has had recent prominent attention. A large chemical works was located in Jelenia Gora, a small resort city in the southwestern mountains bordering Germany and Czechoslovakia. This factory was the source of so much pollution that efforts by academics and other local leaders succeeded in hav- ing it closed in January 1990. The rationale for its location is unclear beyond the idea that the workers could enjoy the healthy mountain conditions. It was clearly far removed from sources of raw materials and from markets. It was a major factor in the growth of the city to more than 100,000. Combined with the air pollution from Germany and Czechoslovakia, this facility produced devastating effects on the re- gional tourist economy.

4. Complementing this theory of industrial development was the environment of the Cold War and the de- mand for military armaments. Poland and Czecho- slovakia were key suppliers of Soviet weapons.

5. Interview, August 3, 1991, with Dr. Andrzej Kas- senberg, former member of the Central Planning Commission staff and a founding member of the Pol- ish Ecological Club (currently director of the newly formed Institute for Sustainable Development in Warsaw and chair of the Commission on Environ- mental Impact Assessment).

6. Kassenberg notes that unfriendly critics dubbed this provision “decorative planning” (interview, August 3, 1991).

7. Government interest in environmental protection in Poland actually goes back to its independent period between 1920 and 1939, when the country passed laws to protect the natural environment.

8. Twenty-nine parties won seats in the October 199 1 election. The leading parties in the present Parlia- ment are the Democratic Union (sixty-two seats), the Democratic Left Alliance (the former Communist party, sixty seats), the Catholic Election Action (forty- nine seats), the Polish Peasants’ party (forty-eight seats), the Confederation for an Independent Poland (forty-six seats), and the Centrum Civic Alliance (forty-four seats). Major surprises in the election were the poor showing of Solidarity (twenty-seven seats) and of the party of Bielecki, the incumbent prime minister (thirty-seven seats). Overall, however, it took almost three months to form a government and the coalition has been highly unstable since. Thus, wholly free elections have not, as yet, produced a secure democracy.

9. See Hahn (1 988) and Liroff (1986) for full discussion of the theory of emission trading. Emission trading suggests that within an overall acceptable pollution level for an airshed region, firms with discharge per- mits that perform at a cleaner level than their permit allows can “sell” their unused polluting “rights” to other firms. The U.S. Clean Air Act of 1991 has incorporated emission trading.

10. Interview with Ewa Borkowska, Ministry of Local Self-Government, September 19, 199 1.

1 1. Based on discussions with Stanislaw Sitnicki, direc- tor, Environment Management and Implementation Unit, MEPNRF; and Jerzy Jendroska, faculty of law, University of Wroclaw, September 199 1.

12. Unfortunately, the deep recession of 199 1 in Poland means that national income has seriously declined.

13. Interview with Stanislaw Sitnicki, director, Envi- ronment Management and Implementation Unit, Ministry of Environmental Protection, Natural Re- sources and Forestry, September 19, 199 1.

14. As of January 1992, 1,430 former state enterprises had been privatized (1 7 percent). These are predom- inantly small and mid-sized firms. Of state enterprises with five hundred or more employees, 192 have been privatized. Liquidations have eliminated 1,003 firms (Economic Review 22-92, 1).

15. A key event was an international conference in Bi- alowieza, in September 1990, on the theme, Insti- tutional Design for Sustainable Development. The Polish Ecological Club, the Technical University at Bialystok, the Humphrey Institute of the University of Minnesota, and the World Wildlife Fund jointly sponsored this conference. A Declaration of Sus- tainable Development for Poland emerged from this conference. The document proved very influential in the formulation of the National Environmental Policy adopted two months later.

16. Private foundations in the U.S. helped fund the In- stitute for Sustainable Development in Warsaw. Funds from the Battel Institute helped fund the In- stitute for Energy Efficiency.

17. See especially recent work by Giddens (1 979, 1984) and Habermas (1 984, 1987). See also Bolan (1 99 1) for a fuller review and analysis of this literature.

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