– 1 –

To be quoted as: Domański B., Guzik R., Gwosdz K., Micek G., 2009, The transformation of Małopolska:

experiences and prospects for the twenty-first century, [in:] Jakubowska P., Kukliński A., Żuber P. (eds.) The Future of Regions in the Perspective of Global Change, Vol. 4, Part Two, Ministerstwo Rozwoju Regionalnego, Warszawa, 95-133.

The transformation of Małopolska:

experiences and prospects

for the twenty-first century

Bolesław Domański

Robert Guzik

Krzysztof Gwosdz

Grzegorz Micek

Department of Regional Development

Institute of Geography and Spatial Management

Jagiellonian University

Prepared for Ministry of Regional Development

Kraków 2008

– 2 –

There is no doubt that a long-term perspective is needed in order to disentangle the

complex and sometimes contradictory processes of regional development. The region is an

eminent structure of long duration in material and spiritual (cultural) dimensions. Long duration

finds expression both in economic structures, settlement and infrastructural networks, as well as

in human minds and behaviour. At the same time, global processes and regional activities based

on internal strengths and/or weaknesses may cause a shift in the direction of regional

development.

The fundamental general issue addressed here concerns continuity and change in the

developmental trajectory of Małopolska (Lesser Poland) in Southern Poland. This paper has been

inspired by the Regio – Futures Programme advocated by Antoni Kukliński (2007). The major

emphasis is on the mechanisms and impact of the post-1989 transformation on the long-term

processes of regional development. This had been an element of global transformation at the turn

of the twentieth and twenty-first century, combined with specific properties of a post-socialist

„transition‟ from state socialism to a market economy and liberal democracy. The question is to

what extent this recent transformation could be a turning point in the developmental trajectory of

Małopolska.

The authors have adopted a relational perspective. Thus, the attempt is to capture salient

relationships between the phenomena and processes comprising regional development instead of

a conventional analysis of economic sectors and social activities. This aims at a better

understanding of the determinants and mechanisms affecting the future development of the

region. We believe that this allows for the combination of the methodologies of diagnostic and

visionary thinking and the perspectives of Regio – history, Regio – diagnoses and Regio –

futurology proposed by Antoni Kukliński.

The starting point was an analysis of the post-1989 transformation of Małopolska in seven

basic fields necessary for the interpretation of the regional scene: natural environment,

technology and science, economy, infrastructure, society, culture and governance. They have

been explored from the point of view of the following properties:

- the impact (strength) of transformation,

- the directions of transformation,

- the specificity of Małopolska vis-à-vis other regions,

- the main periods when particular processes were formed and changed (pre-socialist,

socialist, post-socialist),

- the principal agents of change,

- the major agents of status quo,

- the self-reinforcing and/or reactive mechanisms,

- the vision of regional trajectory by 2020 and 2050.

The outcomes of this analysis are summarised in the form of a table presented in the

Appendix. This has provided a basis for revealing and explaining vital relationships between the

phenomena and processes of the developmental trajectory of the region.

Four cornerstones (pillars) formed as a result of the post-socialist transformation have

been identified as crucial elements (factors) underlying the current and future developmental path

of Małopolska:

1) structural diversification,

2) internal cohesion,

3) external linkages, and

4) the image of the region.

– 3 –

We argue that they are fundamental factors determining the development of Małopolska.

The structural diversification of the regional economy manifests itself in a considerable diversity

of dynamic economic activities, including consumer and producer services, tourist-related

activities and several manufacturing sectors. Moreover, they comprise large, medium-sized and

small enterprises, which represent numerous local firms (high entrepreneurship) and external

investors. Thus, economic growth rests on both endogenous and exogenous development. All of

this makes the regional economy less-vulnerable to the crisis of individual economic sectors and

is interconnected with the social diversity of the region.

This also contributes to the multiple external linkages of the region discussed. These

linkages are also underlined by the broad national and international contacts of cultural and

scientific institutions. In addition, they are constantly reproduced by family and social links

related to massive past migrations to North America and Western Europe. The steadily growing

tourist movement is yet another element of strong foreign linkages, while the influx of students

and migrants from other regions of the country enriches the labour market and the innovation

potential of the region.

An important characteristic of Małopolska is its unique internal cohesion. None of the

other Polish regions, with the possible exception of Wielkopolska (Greater Poland), can be

considered as a similar coherent entity in all sorts of domains. Despite its economic and partly

social diversity, there is a clear regional identity supported by the long-term residential roots of

the population, traditions of civic activity and low levels of social pathology. The region lacks

centrifugal, separatist tendencies, and the city of Kraków is an unquestionable capital

transmitting development impulses and innovations throughout the region.

Last but not least, the positive image of the region is important here. It is built on the role

of Kraków as a symbol of Polish national identity, formed during the nineteenth-century

partitions and combined with the distinct folk culture of the highlanders (Górale) and the value of

the natural landscape. It has been enriched by recent religious elements related to Pope John Paul

II and the newly discovered heritage of cultural diversity, especially Jewish. The residential and

tourist attractiveness of Małopolska, stemming from its image, contributes to the influx of

migrants, tourists and investors, which boosts regional demand and stimulates economic activity.

All in all, the four discussed pillars of the developmental trajectory of the historically poor

and basically agricultural region of Małopolska are strongly interconnected.

Each of these is a product of both deep changes brought about by recent transformation as

well as pre-socialist and socialist phenomena and mechanisms. It may be argued that the post-

socialist transformation has become a critical conjuncture of several processes that began in the

past and came together to produce the contemporary developmental path of the region. Therefore,

what we see in Małopolska as a result of the post-socialist transformation is a clear change, which

is, however, based on the continuity of earlier structures and mechanisms.

The structure of the paper is as follows: After a brief account of the transformation of the

region in various fields, the authors discuss each of the four cornerstones (pillars) of the regional

developmental trajectory (structural diversification, external linkages, image of the region and

internal cohesion) in order to reveal their relationships with other phenomena and processes. In

this context, the position of Małopolska among the Polish regions and the role of Kraków vis-à-

vis other metropolitan cities in Poland are illustrated with selected statistical indicators related to

the discussed phenomena. This is followed by an analysis on inter-regional differentiation.

Special attention is given to self-reinforcing and/or reactive mechanisms in regional

development. The main challenges and barriers for the future development of the region are then

– 4 –

considered. This leads to a reflection on the transformation of Małopolska in the perspective of

the long duration and the future of the region in two time horizons: 2020 and 2050.

The region of Małopolska is treated in this paper as the Małopolskie voivodship.

The basic fields of transformation

Post-socialist transformation exerted its impact on the entire range of processes determining

the directions of regional development. However, becoming familiar with the force and the

direction of the impact of the processes released during the course of the transformation is

difficult without differentiation of the basic fields of development. Kukliński (2008a)

differentiated five such fields: science and technology, economy, society, culture and regional

management. The authors have supplemented this with two additional dimensions: environment

and infrastructure. A detailed discussion of the impact of transformation on these structures and

the vision of their development in the perspective of 2020 and 2050 was included in the

Appendix. On the other hand, this fragment draws attention to the most important elements of

this transformation in each of the differentiated fields of development.

Socialist industrialisation‟s heritage was a catastrophic status for a number of components

of the natural environment, both in areas subjected to intensive industrialisation and in other

densely-populated areas in relation with weak development of the municipal infrastructure. As a

result of the transformation, the emission of pollution and waste from industrial sources was

greatly decreased after 1990. However, the Kraków Agglomeration, Tarnów and Nowy Sącz and

twelve other poviats of the voivodship are still characterised by their unsatisfactory quality of air.

The volume of industrial and municipal sewage requiring treatment, which has been showing a

systematic decreasing trend in the discussed period, places Małopolska in second place in Poland,

both in absolute categories (after the Śląskie (Silesian) voivodship) as well as in conversion per

inhabitant. The lower degree of sewage treatment compared with the remainder of Poland is

related with the settlement structure of the voivodship, i.e. a low degree of urbanisation and

dispersion of development, which greatly increases the costs of sewerage. With respect to waste

management, two characteristic trends can be differentiated after 1990. The volume of industrial

waste produced decreases, whereas the degree of waste management in comparison to the 1990s

(over 85% in 2006) is on the rise. The surface area of degraded soil has also been significantly

decreased. On the other hand, the volume of municipal waste generated annually (mainly from

households) remains at a level similar to the level from the end of the 1990s with a slight

recovery of this type of waste. The requirement for a harmonious relation between economic

development and the status of the natural environment is particularly important in Małopolska,

which has important natural qualities (nine out of seventeen landscape types in Poland are located

within its borders, as well as five national parks) and where one of the pillars of the economy is

tourism. The main challenges in this respect are protection of water resources, municipal waste

management and progressing sub-urbanisation and landscape degradation.

In the field of science and technology, the transformation allowed the region to open up to

the world and activate high level research and development works. The change took place within

the scope in which the science opened onto international contacts: the scientists from Małopolska

participate in European Union projects in large numbers, surpassing the activity of research teams

in the Śląskie (Silesian), Wielkopolskie (Greater Poland) and Pomorskie (Pomeranian)

voivodships. Małopolska occupies a leading position in the country with respect to the level of

economy innovativeness. Revenue from research apparatus and the value of foreign funds

assigned to research and development place Małopolska second in Poland after the Mazowsze

– 5 –

region (Nauka i technika 2007). Outlays on research and development activity exceed one

percent of the regional GDP, whereas in the rest of the country, this coefficient does not even

reach 0.6% (Nauka i technika 2007). Participation of scientific and research employees employed

in Małopolska industry in 2006 almost reached the level of the Mazowsze region. Research and

development centres of foreign enterprises operate in Małopolska, and the number of Polish

private research units is growing. In comparison with Silesia, the weaknesses of Małopolska

science are its weak contacts with enterprises within the scope of research and support for

product development (Działek, Skalska 2006).

Tab. 1. Selected data for Kraków in relation to other Polish major cities

City

Students per

10,000

inhabitants

GDP per capita

(in thousands PLN)

Number of IT

companies per

1,000

companies

Own revenues of gmina budgets

per 1 inhabitant (in PLN)

2006 1999 2005 2004 1999 2006

Kraków 2 344 12,6 16,0 11,7 226 2 054

Łódź 1 533 10,1 11,6 7,7 208 1 721

Poznań 2 402 14,9 18,3 11,6 218 2 066

Trójmiasto 1 191 12,7 15,0 11,3 301 2 325

Wrocław 2 175 12,5 15,5 11,7 292 2 969

Source: Authors‟ calculations based on the data of National Statistic Office.

The transformation boosted the economic attractiveness of Małopolska, thanks primarily to

significant development of human resources within the scale of the country, as well as an influx

of students and immigrants. The economic potential of Kraków grew rapidly, which is expressed

by one of the highest increases in the gross domestic product (Tab. 1) among large Polish cities.

However, the economic potential of the entire region expressed by the value of GDP per

inhabitant is still small: with respect to this coefficient, in 2005 Małopolska occupied 10th

place

in the country. Nevertheless, after 1989, a number of new foreign companies involved in high

technology and services based on knowledge found their location in the region. In the

transformation period, an important element of economic development was the proximity of a

receptive internal market, comprising the densely populated southern part of the country,

including, in particular, the neighbouring areas of the Katowice conurbation. In comparison with

the socialist period, the size and structure of the economy became diversified. Foreign

companies, as well as quickly developing companies with domestic capital, constitute the major

dynamic entities. Despite growth in the multi-functional character of rural areas, a constant

problem is the hidden unemployment in agriculture, which at the end of the 1990s was estimated

at 280,000 - 320,000 people (Górka et al. 2002). Progress within the scope of increasing the

average area of farmsteads (2.44 hectares – the smallest in Poland) is slight. The voivodship is

still characterised by one of the highest employment ratios in agriculture per 100 ha of arable

lands in the country.

Transformation brought about an improvement in road accessibility, thanks, for example, to

the A4 motorway, and air accessibility due to significant development of the airport in Balice

located near Kraków. Local government authorities put a lot of effort into modernisation and

extension of the road network, the water supply and the sewage collection network, especially in

rural areas. Between 1995 and 2004, the network of hardened gmina roads in rural areas

increased in Małopolska to the largest degree in comparison with the rest of the country, i.e.

almost by half. Nevertheless, the condition of roads is still unsatisfactory, and this makes access

to some areas of special tourist value difficult, thus impeding the possibilities of tourism

– 6 –

development. Thanks to the activity of the regional self-government, Małopolska became the

Polish leader with respect to the construction of the information and communication technology

infrastructure and Internet delivery programmes in rural areas.

The impact of the transformation processes on the population of Małopolska manifested

itself primarily in activation of the society. The inhabitants of the region showed above-average

attendance in parliamentary elections. Apart from the inhabitants, who were the main subject of

changes, a number of actions, e.g. establishment of various associations or organisation of civic

actions, were stimulated by the local governments and the local press. The aspirations of the rural

population in Małopolska are higher that the country's average, which results in the high

education level of the rural population. A well-developed social capital and relatively high civic

activity allow for the consideration of the period of transformation as the beginnings of civic

society. On the other hand, Małopolska is still largely a rural region, and in 2005 the urbanisation

index did not exceed 50%, i.e. it was lowest in the country after the Podkarpackie voivodship.

Revenues of households at a level of PLN 13,800 annually per one household (91% of national

average) place Małopolska 9th

in the country.

The transformation brought about new trends in each of the elements of culture: heritage,

institutions, economic activities related with culture (culture industries) and the identity of the

inhabitants. The leading position of Małopolska within the scope of cultural heritable has been

emphasised by more entries to the world heritage list of UNESCO. The sacral sphere of the

cultural accomplishments of Małopolska was greatly enlarged in relation with the phenomenon of

Pope John Paul II. Jewish heritage was discovered. The Galician and the socialist heritage were

re-evaluated. Kraków retains its status as the main centre (after Warsaw) of cultural activities it is

especially distinguished in the area of art galleries and the book market. The cultural sphere is

one of the key competitive edges of Małopolska, and the future role of the region in the united

Europe depends, to a large extent, on its functioning.

With respect to governance, an objective set in Małopolska was the so-called new public

governance; therefore, the region made use of the window of opportunity which was opened at

the beginning of the period of current transformation. Innovative management methods were

implemented; with respect to contacts with the inhabitants, new technologies were introduced.

Thanks to a new policy of shaping relations, the attitude of clerks to the inhabitants was also

improved. The Marshall‟s Office made the greatest contribution to efficient management of the

region, thanks to effective use of external funds. On the other hand, the activity of gminas in

procuring external funds is slight: only 70% of Małopolska‟s gminas implemented EU projects,

which placed Małopolska 12th

in the country (Ocena postępów... 2007).

– 7 –

Structural

diversification

of economy

Internal market

External investors Entrepreneurship

Human capital

Education

Institutions

Civic activity

External linkeages

Accessibility

Emigration „Galician poverty”

Political motives

Demographic structure Culture Attractiveness

of Kraków and

the region

Proximity to Katowice conurbation Students Tourists Image

In-migration

Conjuncture of

transformation

Fig. 1. Mechanisms of structural diversification of Małopolska economy

Source: Authors‟ elaboration.

Fields on which transformation has had considerable impact

– 8 –

Four cornerstones

Structural diversification

Structural diversification of the Małopolska economy is a relatively recent phenomenon.

This emerged during the transformation period and is related to its positive image and external

linkages, which are discussed later in greater detail. It reflects the diversified internal market,

local entrepreneurship and the influx of external investors, which are underlined by human

capital and the inward mobility of migrants, students and tourists (figure 1).

The roots of several of these regional features and processes in Małopolska have to be

sought in the nineteenth century. It was a periphery of the Habsburg Empire, with very limited

industrialisation and poor, increasingly fragmentised agriculture, which remained the economic

activity of the vast majority of the population. This induced massive outward migration,

especially to North America. However, the region was the only part of contemporary Poland

which enjoyed relative political autonomy. This entailed the creation of self-government and

numerous other institutions, together with a sizeable administrative class. Another significant

phenomenon, the consequences of which have become evident many decades later, was the

development of educational institutions. Still, Małopolska entered the twentieth century as a poor,

basically agricultural region. The urbanisation level was very low, and the city of Kraków was a

dominant service centre and partly industrial centre of the region.

The turn of the nineteenth and twentieth centuries brought yet another new phenomenon,

i.e. the rise of the tourist movement, especially in the mountain areas, the Ojców valley and

Kraków itself as the historical capital of Poland. The popularity of the Zakopane resort and the

sub-region of Podhale in artistic circles gave rise to the creation and spreading of the myth of

highlanders as an archetype of Polish folk.

Tab. 2. Demographical structure of Małopolska in relation to selected Polish regions

Region

Share of population below 25

years Balance of migration (both foreign and internal)

2004 1995 2006

Małopolskie 34,7 0,2 0,4

Dolnośląskie 31,7 -0,6 -1,3

Pomorskie 34,5 -0,2 -0,4

Wielkopolskie 34,6 0,2 0,2

Poland 33,2 -0,5 -0,9

Source: Authors‟ calculations based on the data of Central Statistical Office of Poland.

Despite long traditions of outward migration, Małopolska shows nowadays – in contrast

to many other Polish regions – a very favourable demographic structure: a high share of young

people with a balanced proportion of males and females. This is a major advantage in the

contemporary aging Europe facing population decline with all its economic and social

consequences. This is sustained by a natural increase and is reinforced even further by a positive

balance of migration. Moreover, Małopolska enjoys the second highest foreign inward migration

among the Polish regions. The region also attracts the largest number of foreign tourists in the

country.

All this contributes to a dynamic and diversified regional market. We cannot forget that

the region is part of the vast market of Southern Poland, which represents the largest

concentration of population and economic activity in the country. The neighbouring Śląskie

voivodship, which is experiencing a major economic restructuring, creates vast demand for

various services developed in Kraków and Małopolska.

– 9 –

Migrations and broad international contacts are important vehicles of learning and

imitation behaviour and therefore facilitate local entrepreneurship in many parts of the region.

These effects were combined with the experience of commuting to non-agricultural jobs after

World War II, the inflow of capital through family links and the traditions of hard work,

especially in the mountain areas, which stimulated the entrepreneurship culture and local social

activity „frozen‟ under state socialism. As a result, the densely populated western and southern

parts of Małopolska have become multifunctional rural areas. On the other hand, there are also

areas with more traditional agriculture and limited entrepreneurship in the north and east of the

region.

Tab. 3. Some basic education indicators of Małopolska in comparison to selected Polish regions

Region

Students per 10,000

inhabitants

The average results of

gymnasium exit exams (max.

40 points.)

The share of people with

command of English

2006 2007 2007

Małopolskie 621 27,42 36,8

Dolnośląskie 587 26,63 31,3

Pomorskie 464 26,16 37,2

Wielkopolskie 511 26,12 28,9

Poland 506 26,57 32,9

Source: Authors‟ calculations based on the data of Central Statistical Office of Poland, Czapiński and Panek (2007)

and Brożek et al. (2007).

The scope and level of education are important in this context. The quality of primary

education finds expression in the second highest score in national scholastic tests, a high

percentage of people with tertiary education and the second highest number of students per

10,000 people in Małopolska. This reflects the existence of an established educational system

developed since the nineteenth century and the inter-connected educational aspirations among the

local population and contributes to the quality of human capital in the region. Human capital

fosters the growth of indigenous enterprises and attracts external investors, i.e. it supports both

endogenous and exogenous development. The attractiveness of the region for large foreign and

domestic investors rests on the qualities of the regional market, labour force and local institutions

(good investment climate), existing external linkages and good accessibility.

Tab. 4. Selected Polish regions by the level of education

Region

Share of population

with tertiary education

Share of population

with tertiary and

secondary education

Share of population with

tertiary and secondary

education in rural areas

Share of population with

tertiary education in rural

areas

1999 2006 2002 1988 2002 1988 2002

Małopolskie 8,5 11,3 38,0 15,8 28,1 2,0 4,4

Dolnośląskie 7,3 11,6 39,8 16,8 28,3 1,9 4,1

Pomorskie 6,5 9,1 39,5 14,9 24,4 2,1 4,4

Wielkopolskie 6,0 9,8 36,7 14,2 25,5 1,8 4,2

Poland 6,6 11,0 38,2 14,9 26,7 1,8 4,3

Source: Authors‟ calculations based on the data of National Census (2002) and Eurostat

In contrast to some other regions of Poland, Małopolska has not experienced a collapse of

any important sectors of the regional economy. The largest manufacturing enterprises, such as

Mittal Steel Poland (former Lenin Steelworks), Synthos (former Chemical Works in Oświęcim)

and Works of Nitrogen Compounds in Tarnów have been by and large successfully restructured.

– 10 –

Foreign capital contributes to the economic diversification of the region, showing no major

specialisation. And last but not least, this diversification finds expression in the list of the major

indigenous enterprises established in the transformation era. They include major European

producers of cables (Tele-Fonika Myślenice), instant food products and juices (Maspex

Wadowice) and roof windows (Fakro Nowy Sącz), the top Polish providers of software

(Comarch) and ice-cream (Koral) and the largest radio broadcasting station (RMF).

All this leads to a varied economic structure with many dynamic sectors, including

producer services (e.g. one of the main centres of business process outsourcing and software

development in Poland), specialised consumer services (e.g. culture industries), tourist-related

activities and several manufacturing industries. Małopolska shows the highest employment in

research and development per 100,000 people, except for the Warsaw region. These activities are

mainly concentrated in the Kraków metropolitan area, which, among other things, is one of the

largest centres of foreign owned R&D units in Poland.

Tab. 5. Employment in research and development activities

Regions Employment in R&D per 100,000 inhabitants

1999 2006

Małopolskie 469 410

Dolnośląskie 324 306

Pomorskie 313 312

Wielkopolskie 349 371

Poland 329 318

Source: Authors‟ calculations based on the data of National Statistical Office of Poland.

All in all, the post-1989 transformation has forged a new path of diversified economic

development, which should have a positive impact on the future of the region. It has to be

emphasised that these changes have been contingent on the attributes and processes that began in

the two previous centuries.

External linkages

Some of the pillars of the past and present development of Małopolska are live, strong and

constantly growing external linkages. Even though the discussed linkages are rooted in historical

structures and a number of them are characterised by long duration, only the transformation

processes made it possible to consider them important advantages of Małopolska, on the basis of

which the vision of regional development may be constructed. External linkages are and will

continue to be an important dimension of Małopolska‟s development, due to the fact that they are

conducive towards circulation of knowledge, innovation and capital. External linkages, by

exerting a positive impact on the region‟s economy and its attractiveness as a place of residence,

study and leisure and by further construction of external linkages, constitute an element of a self-

reinforcing path, where the transformation releasing this mechanism provided a turning point. In

the long-term perspective, it is necessary to expect an increase in external linkages resulting both

from the self-reinforcing mechanisms listed above and external factors (e.g. science,

transportation and the regional policy of the European Union). The region's geographical location

is an advantage – Małopolska lies in the very heart of Central Europe at the crossroads of transit

routes, including the main corridor connecting Ukraine with Western Europe. Increasing freedom

and the facility of transportation, which results from liquidation of borders and construction of

new transportation networks, additionally contribute to intensification of linkages.

– 11 –

The strong external linkages of Małopolska are based on contacts with emigrants who come

from this region, on the contacts of immigrants with places of their origin and on extensive

contacts resulting from the operation of the educational, scientific and cultural institutions of

Kraków and the region. Touristic and religious functions of the region play a huge role in

development of linkages, and since the period of transformation, this role is also supplemented by

the diversified regional economy with significant importance placed on foreign investors and the

simultaneous foreign expansion of local companies taking over enterprises in other countries. The

region‟s superb communication accessibility is also conducive to linkages; Małopolska has the

second largest airport in Poland (Tab. 6) and is connected with the European network of

motorways by means of the A4 motorway. The relation of linkages with communication

accessibility has a self-reinforcing character - if it were not for animated contacts, we would not

be observing such a huge increase in traffic at the airport in Balice, which, in turn, is conducive

towards new linkages, which are the driving force of further growth (Fig. 2).

Tab. 6. Kraków-Balice in comparison to other major Polish airports

Airport Number of direct flights (weekly) Number of destinations

Passengers

(in thousands)

1989 2000 2008 1989 2000 2008 2004 2007

Kraków – Balice 28 121 309 5 13 34 803 3 042

Poznań – Ławica 12 59 144 2 5 19 351 863

Katowice – Pyrzowice 6 61 173 1 5 28 580 1 980

Gdańsk – Rębiechowo 32 65 228 5 5 31 463 1 708

Warszawa – Okęcie 345 698 1 226 60 51 80 6 085 9 268

Source: Authors‟ calculations based on the flight schedules and data of Office of Civil Aviation.

The national affiliation of the region in the 19th

century lies at the foot of a number of

developmental processes in Małopolska. Galician poverty and significant overpopulation of

villages triggered economic migration to the United States, Canada, South America, France,

Belgium and other Western European countries and from the end of the 19th

century, to the

developing Górnośląski Okręg Przemysłowy (Upper Silesian Industrial District) as well. In no

other area of Poland was the scale of emigration so massive; additionally, a majority of the

migration had a chain character, which in turn contributed to strong ties in new places and

prevented excessive cultural assimilation, which was conducive to maintenance of ties with the

homeland. Support from families living abroad, the possibility of undertaking temporary

economic migration and the availability of capital related to it were one of the most important

sources for the financing of entrepreneurship which flourished after 1989. Contacts and

familiarity with the operation of a market economy was a definite additional advantage allowing

the region to make use of the opportunities which emerged along with social and economic

transformation. Historical differentiation of the level and the scale of migration are one of the

causes for significant differences in the level of entrepreneurship development and the quality of

life between the northern, agricultural part of the voivodship, historically affiliated with the

Congress Kingdom of Poland (as part of Russia), and its southern Galician part (Austria-

Hungary).

Kraków, being the oldest academic centre in the country and currently the second with

respect to size after Warsaw, was and is an attractive place of study with a national range and

increasing significance beyond the borders of Poland. This helps building external linkages in a

number of manners, e.g. from the shaping of linkages with respect to demand and the resulting

communication accessibility with other regions and countries, through the friendly linkages of

– 12 –

students from outside of the region with local students, to the phenomenon of constant in-

migration – settlement of students after the completion of their studies in Małopolska. Along with

an increase in the scale of this phenomenon in the period of transformation, the shaping of

linkages is currently much stronger than in the past. Additionally, it is worthwhile mentioning

linkages which are the result of the undertaking of studies or internship trips (TEMPUS,

ERASMUS) by students who come from Małopolska. This means better acquaintance with the

region, the possibility of establishing contacts and good communication ties resulting from the

tourist demand.

– 13 –

External

linkages

External investors

In-migration Emigration

Communication accessibility

Self-government

„Galician poverty”

Political motives

Promotion

Students Tourists

Image

Balice airport A4 motorway Kraków railway hub

Institutions of science and

culture Structural

diversification

of economy

Regional cohesion

Family, religion

Attractiveness

of Kraków and

the region

Fig. 2. Mechanisms of external linkages of Małopolska

Source: Authors‟ elaboration.

Fields on which transformation has had considerable impact

– 14 –

Image of the region

A strong side of Małopolska in comparison with other regions of Poland is its positive and

clear image. This image comprises primarily elements related with culture, including four spheres

pervading one another: cultural heritage, cultural institutions, economic activity related with

culture (culture industries) and the identity of the inhabitants. The ability to include new elements

into the region‟s competitive edge – particularly visible within the scope of the region‟s cultural

heritage – is one of the key factors impacting the development of the Małopolska voivodship.

The image of the region and its capital underlies a number of positive phenomena which have

been important for the economic, social and cultural development of this region since at least the

second half of the 19th

century. This translates directly and indirectly into the attractiveness and

economy of the voivodship. The spirit of the area (genius loci), strongly sensed in historical

Kraków, has both a social value and is a strong force shaping its further development (Wallis

1977). Getting acquainted with the genesis of the image of Małopolska and Kraków, including its

changes in the course of the transformation, allows one to understand the key conditions and

development mechanisms of the region in a better way.

The shaping of the image of Małopolska has to be perceived through the perspective of

mutually impacting spheres: cultural heritage, attractiveness of the landscape, identity and

functioning of historical and modern institutions (Fig. 3).

The most important factor regarding the image of Małopolska is that the region‟s cultural

heritage was recognised, accepted and internalised as Polish national heritage. Firstly, this is

related with the “essential Polishness of Kraków” (Rożek 1997) as ara patriae and the Polish

Piedmont. The monuments of Kraków have symbolic and integrating values. The shaping of this

symbolic function of Kraków has the character of a self-reinforcing sequence initiated in the 19th

century as a result of a conjunction of three elements: the existence of the attributes of the Polish

state here, the Galician autonomy within Austria-Hungary and the drive to retain a Polish national

identity. This process is discussed in detail in section 4.

However, Kraków is not the only element of the region's heritage, which became an

expression of self-identification of Poles and the source of other positive associations. Here it is

possible to make a reference to the Cracovian folk attire, which became the national folk attire. It

is necessary to indicate the phenomenon of the folk culture of the Podhale region. There is no

other such pampered and recognisable regional group in Poland. Currently, we are observing a

cultural “export” of the highlander tradition, exemplified by construction of restaurants and inns

in the style typical of Podhale throughout Poland. Another phenomenon of Małopolska is, on the

one hand, the impression of national and religious centrality and the uniformity of the region

(inwards turn), and on the other hand, multi-cultural traditions, expressed by the region‟s

openness (outwards turn).

The second important element of Małopolska‟s trademark is accumulation of various

examples of material and immaterial cultural heritage in the area of the voivodship. It comprises

a wide temporal and material spectrum, from the prehistoric heritage of the Kraków and

Częstochowa Upland, Gothic panel painting, Renaissance residences and Baroque temples to the

monuments of former industry (Wieliczka mine) and transportation (rafting). A number of

elements of this heritage have symbolic and cultural value not only in Polish, but also in an

international dimension. The former concentration camp of Auschwitz-Birkenau is located in the

area of the voivodship. Despite the fact that it casts a shadow on contemporary development of

the city of Oświęcim (Charlesworth at al. 2006), it is one of the magnets attracting several

millions of visitors to Małopolska annually. The international ranking of Małopolska‟s heritage

– 15 –

has been emphasised in recent years by subsequent entries into the UNESCO world list (Kalwaria

Zebrzydowska monastery and the wooden churches of southern Małopolska).

Another important element of Małopolska‟s image is the ability of local environments to

shape new heritage values or to strengthen or revive the values negated in the People‟s Republic

of Poland. This is best expressed by the return to the idea of Kraków as the Second Rome and the

Second Jerusalem. Re-discovery of the Jewish heritage took place in the 1990s. The Old

Synagogue in Kazimierz became one of the symbols of Kraków; the festival of Jewish culture

became one of the leading cultural events in the voivodship and the former Oppidum Judeorum in

Kazimierz became a Mecca for tourists from around the world (Murzyn 2006). The period of the

decline of communism and the 1990s were also times for the manifestation of Polish Catholicism,

which took place when Pope John Paul II was on St. Peter's throne in the Vatican. The diverse

heritage related with John Paul II is another important element of the identity of Małopolska. At

the same time, Kraków, through its newest sanctuary of Divine Mercy in Łagiewniki (1.8 million

pilgrims in 2007), has significantly strengthened its position as a place of pilgrimage.

Development of the Łagiewniki sanctuary has to be treated in the category of continuation of

huge pilgrimage plans of the Małopolska Church metropolis related with the former capital status

of Kraków, secular and lay patronage and the inhabitants‟ piety. Nota bene, the idea of the

Łagiewniki sanctuary (“Kościół Łagiewnicki”), is juxtaposed to other ideas (“Kościół

Toruński”). The phenomenon of adding new elements to the approved and promoted heritage is

currently visible in district of Nowa Huta. An excellent example of socialist urban planning,

rejected for a long time as a foreign body in the organism of Kraków, Nowa Huta is becoming

one of the more important and touristically attractive places (currently more appreciated by

foreign tourists than by domestic ones).

Looking from the perspective of fifteen years of transformations, it is worthwhile to draw

attention to the fact that the historically shaped structures of Małopolska and the attractiveness of

the natural surroundings and landscape of the region allowed for a perception of the area as a

place of opportunities at the beginning of the 1990s. It is possible to speak of the growing

compliance between the features of the region and the dominant model of the economy (Gorzelak

2003). Rich cultural resources, an attractive environment, the existence of Kraków – a centre of

science, culture and art – combined with favourable demographic trends and social activity

facilitated Małopolska to become adjusted to the paradigm of a post-Fordists economy and a

growing role of services. This is visible in the role of Małopolska as one of the leading Polish

regions within the scope of cultural institutions and the activity of creative circles in Poland. The

voivodship is first in Poland with respect to the number of museums and people who visit them

(Tab. 7) and the number of galleries. It has a well-developed book market (second place in

Poland); it is also in the forefront of regions with respect to the number of libraries and

readership, cinemas and theatres. In the transformation period, it is possible to speak about the

strengthening of the role of Kraków as the chief centre of commercial culture in Poland after

Warsaw. Creative freedom, which was brought by democratic changes, bore fruit in

establishment of new important institutional culture units (e.g. Manggha, the Małopolska Cultural

Institute, International Cultural Centre) and independent creative circles (concentrated around

Łaźnia Nowa Theatre, Club Alchemia, etc.).

– 16 –

Image

of the region Kraków as

ara patriae

Fig. 3 Mechanisms of the development of Małopolska image

Source: Authors‟ elaboration.

Folk traditions (i.e Highlanders)

Judaica Heritage of old activities

(Wieliczka salt mines, rafting)

Diversity of cultural heritage accepted and newly discovered

Sacral heritage

Drive to retain a

Polish national

identity

Galician

autonomy

Historical capital

of Poland

Self-reinforcing path of

Kraków as the core of

Polish identity

Cultural and science

institutions

Kraków as

educational, science

and cultural centre

Religiousness Patronage

Pope John Paul II

Self-

government

Promotion

Regional

identity

Natural

environment

quality

Diversity of nature and

landscape

Fields on which transformation has had considerable impact

– 17 –

Regional

cohesion

Lack of separatist tendencies

Linkages of inhabitants

and institutions

(participation)

Galician autonomy

Image

Historical region Long-term residency Uniqueness of

landscape and quality

of nature

Nodal location of

Kraków in transport

systems

Fig. 4. Mechanisms of the internal cohesion of Małopolska

Source: Authors‟ elaboration.

Strong local and subregional identity

Religiousness

Complementary

subregional

economies

Kraków close integration with the

whole region

Kraków as the unquestionable

capital and engine for regional

development

Low level of social

pathologies

Civic activity

Fields on which transformation has had considerable impact

– 18 –

Tab. 7. Tourism in Małopolska as compared to selected Polish regions

Region

Number of foreign tourists

per 1000 inhabitants Visitors to museums per 1000 inhabitants

1999 2006 1995 2006

Małopolskie 169 286 1 179 1 676

Dolnośląskie 106 169 365 368

Pomorskie 107 130 785 863

Wielkopolskie 72 78 324 344

Poland 84 113 397 477

Source: Authors‟ calculations based on the data of Central Statistical Office of Poland.

To summarise, the period of transformation has to be treated as one of the stages on the

self-reinforcing path of development of the voivodship‟s image and its cultural heritage, which

was shaped in the 19th

century. This allowed for strengthening of the previously visible trends, at

the same time supplementing them with new recognisable elements.

In the long-term perspective, it is necessary to expect a further positive development of

Małopolska‟s image. This will depend on the fact of whether or not Kraków retains its leading

role as the centre of culture, science and art in Poland, which will be conducive to

implementation of new, original flagship projects and an influx of immigrants, which will allow

for the return to the status of a multi-cultural city, which Kraków lost after 1939.

Internal cohesion

In spite of the signalled social and cultural variety and economic diversification, a number of the region's features and mechanisms in its development are conducive to its internal cohesion. It is possible to indicate the long duration of certain processes described in this chapter, whose beginnings should be looked for in the Middle Ages.

The first element that is conducive to Małopolska‟s cohesion is the economic, social and cultural role of Kraków in the region (Fig. 4). The capital of Małopolska, in contrast to Warsaw or Wrocław, is strongly integrated with its catchment area, being their hub. Kraków is the engine for development of the metropolitan area, which can be confirmed by dynamic economic development of the settlements of the Kraków agglomeration, e.g. Niepołomice, Skawina, Myślenice or Zabierzów. The impact of Kraków also reaches to more distant municipal centres. This is primarily visible in the sphere of education, where an example of the spill-over of Kraków's impact is the development of Wyższa Szkoła Biznesu - National Louis University in Nowy Sącz. Kraków's close integration with the region has its roots in the territorial integration of the area, which, apart from its northern part, has been a cohesive area managed politically from the present-day capital.

Małopolska belongs to the group of voivodships where no current separatist tendencies were observed on a large scale. In the course of the national administrative reform in 1999 and after its introduction, no significant centrifugal tendencies resurfaced. This resulted from a number of factors, but definitely, apart from significant territorial integration, the absence of separatist tendencies has its sources in the attractive image of the region as a whole. In spite of development of the entire region, the spatial social and economic differentiation of Małopolska is diminishing, which is not recorded in other regions. The territorial cohesion of Małopolska is growing significantly, which finds expression in significant decline in its internal differentiation in several important spheres, i.e. the share of people with higher and secondary education and the number of companies registered in the REGON system per 1,000 inhabitants (Tab. 8). The current transformation is conducive to a decrease in the existing disproportions. Decreasing differentiation allows the modern Małopolska to pass through a specific window of opportunity and to attract new investment in the high technology industry and high rank services.

– 19 –

Tab. 8. Internal diversification of Małopolska Region

Coefficient

Share of population with higher and

secondary education (in percent)

Own revenues of gminas budgets

per 1 inhabitant

(in PLN)

Firms registered

per 1000 inhabitant

Average usable floor space

per 1 inhabitant

(in square meters)

1988 2002 1996 2006 1996 2006 1996 2006

Regional average 20,1 41,3 178,8 628,5 46,4 64,5 17,6 24,0

3 gminas with the

highest value

52,7

(Kraków);

47,6

(Nowy Sącz);

46,9

(Zakopane)

63,1

(Kraków);

58,8

(Nowy Sącz);

54,3

(Zakopane)

648,9

(Bukowno);

591,7

(Nowy Targ);

539,9

(Bolesław)

2053,9

(Kraków);

820,7

(Zakopane);

1733,4

(Oświęcim)

166,6

(Zakopane);

145,1

(Kalwaria Z.);

124,4

(Nowy Targ)

192,3

(Zakopane);

139,1

(Kalwaria Z.);

138,1

(Kraków)

23,1

(Radziemice);

22,1

(Koszyce);

22,1

(Skała)

35,5

(Zielonki);

32,2

(Michałowice);

30,0

(Książ Wielki)

3 gminas with the

lowest value

7,7

(Lipnica W.);

8,1

(Pałecznica);

9,1

(Tokarnia)

14,3

(Szaflary)

14,9

(Cz. Dunajec)

15,7

(Lipnica W.)

47,6

(Lipnica W.);

57,7

(Grybów);

57,8

(Łukowica)

240,8

(Radgoszcz);

253,8

(Korzenna);

255,8

(Olesno)

17,0

(Gromnik);

17,7

(Radgoszcz);

18,2

(Pałecznica)

26,4

(Radgoszcz);

26,7

(Mędrzechów);

27,2

(Gromnik)

12,9

(Korzenna);

13,3

(Podegrodzie);

13,4

(Łukowica)

17,3

(Nawojowa);

18,2

(Łabowa);

18,3

(Korzenna)

Average for 10

percent of the best

gminas

34,9 50,1 372,6 1369,1 94,3 112,1 20,2 27,8

Average for 10

percent of the worst

gminas

10,1 18,2 67,8 288,9 21,1 32,2 14,1 19,0

Coefficient of

changeability (%) 50,2 30,8 53,8 54,7 50,8 41,0 11,7 12,5

Standard deviation 10,1 9,2 96,2 344,1 23,5 26,5 2,1 3,0

1 In 1998 population over 14 years, in 2002 population over 12 years.

Source: Authors‟ calculations based on the data of Central Statistical Office and National Census (1998,2002).

– 20 –

The social and economic differentiation of Małopolska may be analysed in a number of spatial dimensions. One of them is division into the Russian northern part (during the time of partitions) (including the contemporary Miechów and Proszowice poviats) and the Galician part of the rest of the region. The division of Małopolska into two parts is reflected to this day in the internal shaping of the region, especially with respect to entrepreneurship and education levels (Fig. 5 and Fig. 6). Various power and economic relations functioning for decades in the two partitions exerted their impact on solidification of social and economic differences.

Fig. 5. Spatial diversification of entrepreneurship level in Małopolska region

The second element of cohesion is the strong regional identity. The inhabitants of

Małopolska form a community which is united by the name of the region, conviction of its

uniqueness and a strong attachment to it (Smoleń 1998). Małopolska in the last century was

not an area of a significant influx of external population. As a result, the inhabitants of

Małopolska are characterised by one of the greatest long term residency ratio in the scale of

the country (Tab. 9). This feature, combined with the significant religiousness of the

population, constitutes the specific character of the region, which distinguishes it from the rest

of Poland. According to Diagnoza Społeczna (2007), only the Podkarpackie voivodship is

similar to Małopolska with respect to long term residency and religiousness. Thanks to

education and the following of traditional models, regional identity is developing, and this is

expressed through social activity in the form of local associations and cultural institutions.

Activities for the sake of local communities are undertaken in Małopolska by an above-

– 21 –

average number of people. Additionally, Małopolska has distinguished and different (with

respect to other regions) natural environment resources, which also adds to a strong regional

identity.

Fig. 5. Spatial diversification of education level in Małopolska region

The third foundation of cohesion, related with regional identity, is local social activity.

This is depicted by the slightly higher number of non-governmental organisations compared

to neighbouring regions (Gumkowska, Herbst 2006). Significant social activity interacts with

the relatively low level of pathologies expressed in the number of crimes per 10,000

inhabitants. This second feature in the transformation period ran below the national average,

and the experienced crime rate fell (Czapiński, Panek 2007). Along with a relatively low level

of social pathologies, local social activity allows for setting in motion a self-propelling

mechanism sustaining the region‟s cohesion.

Strong regional identity and strong ties thanks to long-term residency are conducive

towards the inhabitants‟ ability to form various associations and NGOs, which increases

social activity and reinforces cohesion. In Małopolska, the period of transformation

strengthened the social ties which had their roots in the Galician period and allowed for

activation of “dormant” developmental possibilities.

– 22 –

Tab. 9. Long term residency, community and religious engagement

Region

Share of population

born in the place of

residence

Frequency of religious

practices (per month)

Declaration of

volunteer work for

local community in

last three years

(in percent)

Participation in public

meetings (except

workplace)

(in percent)

2002 2007 2003-2005 2005

Małopolskie 68,3 3,76 12,3 19,4

Dolnośląskie 50,7 2,46 11,1 20,0

Pomorskie 54,1 3,21 12,5 17,7

Wielkopolskie 61,0 2,74 10,3 18,0

Polska 59,2 2,88 10,9 18,1

Source: Authors‟ calculations based on National Census (2002) and Czapiński, Panek (2007).

The fourth group of elements conducive to cohesion are the extensive contacts of the

inhabitants with public institutions. In Małopolska, social consultations and the proximity of

offices, which is expressed by the relatively small social distance to clerks (in comparison to

the areas of the former Congress Kingdom of Poland), have a long tradition dating back to the

period of Galician autonomy. The gminas of the modern Małopolska voivodship were

included in the group of first local self-governments, which decided to work on strategies and

programmes of development as early as in the last decade of the 20th

century. The first

strategy of the regional development prepared in 2000 and later programmes (e.g. Regional

Innovation Strategy) were created in the process of social agreement. The newest strategy of

the region‟s development was constructed after many consultations, i.e. within the scope of

poviat workshops (meetings with local leaders, a cycle of regional conferences, projects

“Młoda Małopolska”, “Obywatelska Małopolska”). Regional cohesion is also promoted

through pioneering activities undertaken within the scope of the introduction of an electronic

office. In 2003 the Małopolska voivodship was placed second in the country with respect to

the number of gminas having their own Internet sites (Guzik 2004). The regional Internet site

Wrota Małopolski received awards in a number of competitions. The number of procedures

possible to conduct by electronic means has grown significantly.

The fifth constitutive element of Małopolska cohesion is the central location of the

capital in the communication system. Kraków is the nodal point for a definite majority of

inhabitants travelling through the region. Kraków‟s role as the transportation hub for the

entire region forces the inhabitants of the region to pay frequent visits to the capital of

Małopolska, which in consequence may allows them to identify with the city.

Other cohesive links are complementary economic structures on the supra-local level. In

Małopolska, the neighbouring poviats are often characterised by different, complementary

economic structures. This refers to the complementary nature of Tarnów and Nowy Sącz and

the poviats surrounding them, which perform functions within the scope of agricultural

alimentation for the above-mentioned municipal centres.

Despite historically shaped diversity, Małopolska is a region which has become

cohesive socially and economically in recent years. The growing uniformity of the region also

results from the existence of a network of connections among the six listed factors that

determine cohesion. For example, the central location of Kraków in the communication

networks allows for a strengthening of the inhabitants‟ ties with the capital; it creates a certain

regional identity, which in turn may stimulate activities for the sake of local communities.

– 23 –

Self-reinforcing and reactive mechanisms in the development of Małopolska

A. Kukliński (2008b, 6) notices aptly that “Polish regional studies make weak use of

cognitive values and pragmatic utility of concept of path dependency”. This probably stems

from the lack of appreciation for historical conditions or fear of wrongly understood historical

determinism. Meanwhile, thinking in evolutionary categories allows not only for the

diagnosing and interpretation of the genesis of competitive advantages and barriers in

development, but also for forecasting (future as paths cf. Stimson et al. 2006).

With respect to the concept of path dependency, it is necessary to indicate the

following elements:

– there are two basic mechanisms: self-reinforcing and reactive (Mahoney 2000). The

logic of self-reinforcing path consists of reproduction of the initial features by

positive feedbacks. In other words, the initial conditions stimulate growth in a

given direction, so that after a certain time, leaving this direction becomes difficult

or impossible. In such a case, we can talk about a lock-in a given path. Self-

reinforcing mechanisms may have a positive (virtuous circle) or negative (vicious

circle) character. Reactive processes have the character of a sequences of events

connected sequentially, where each event was, on the one hand, a reaction to the

previous event and, on the other hand, the cause for later events (Mahoney, 2000).

In this case, the process of reinforcement of initial structure does not take place but

the structure is reshaped.

– The need and the efficiency of external intervention depend on the phase of a given

process. The possibilities for changing the trajectory are limited if we are in the

“lock-in” phase. However, at this stage, it is easy to foresee and to model a further

course of the process. The situation is different in the instability phase, also known

as the turning point. In such a moment, a “deep and quick transformation of the

structures and driving forces of developmental processes” takes place (Kukliński

2008b, 5). At that moment, multi-direction development is possible, whereas a

selected direction of development may be solidified in the future, creating a

positive or negative lock-in on the paths. The prediction possibilities in the turning

point are difficult, and when the phenomenon is a function of its own internal

development (e.g. it is subject to the law of increasing returns), it is almost

impossible (Gore 1984, Kaldor 1994).

– Conjunction of previously independent developmental paths may give the process a

new developmental trajectory. Such a moment has the properties of a turning point.

Four basic sequences were identified in the development of the Małopolska voivodship,

which may be interpreted within the framework of the paths dependency concept. They have

direct relation with the region‟s competitive advantage, or they constitute a barrier for its

development.

Tab. 10. Self-reinforcing and reactive mechanisms in the development of Małopolska region

Mechanism

Self-reinforcing Reactive

Eff

ect

Negative Persistent relative backwardness of

certain rural areas Fragmentation of land ownership

Positive The image of Kraków Emergence of diversified regional

economy

Source: Authors‟ elaboration.

– 24 –

a) Development of the image of Kraków as a symbol of Polish identity

Wincenty Pol, a geographer and poet, wrote that by “arriving in Kraków, everybody

who did not know they were Polish, became Polish”. In the 19th

century, Kraków, at that time

a provincial centre at the northern frontier of the Habsburg monarchy (50,000 inhabitants in

1869 in comparison with 87,000 in Lvov and 255,000 in Warsaw), began to function as the

spiritual capital of Poland. Development of this key element in today‟s image of Kraków is a

good example of a self-reinforcing path generated at a turning point, which was the 19th

century for the city and the region. This sequence resulted from a combination of three

phenomena. The first was an increase in the national awareness of Poland, influenced by the

trauma of the loss of the independent state and romantic ideas. Secondly, celebration and

emphasis of a Polish national identity was possible only here. Freedom in the period of the

Free City of Kraków (1815 – 1846) and primarily in the period of Galician Autonomy (1867 –

1914) within Austria-Hungary was clearly different from the oppressive policy of Russia and

Prussia. At the same time, mementos of Poland‟s former greatness compiled in Kraków

(especially the cathedral with royal tombstones) predestined the city to play the role of the

homeland's altar (ara patriae). The Wawel Cathedral began functioning as the national

pantheon. “Archaeological patriotism” (Ostrowski, 1992) related with the repeated

ceremonious burials of leaders (T. Kościuszko, J. Poniatowski), national poets (A.

Mickiewicz) and kings (Kazimierz Wielki) was perfected. At the same time, Kraków regained

the role of the “Polish Athens” (development of the Jagiellonian University after a long period

of crisis, establishment of the Polish Academy of Arts and Sciences) and the “Polish

Parnassus”, best exemplified by the paintings of Jan Matejko and the artistic movement of

Młoda Polska. In the inter-war period, these traditions were continued in a natural manner.

Despite the fact that in the period of the People‟s Republic of Poland, the city was developing

“in the shadow of the huge steelworks”, and with respect to cultural activity, it was dominated

by Warsaw, it did not lose its spiritual function, which was greatly influenced by the role of

the circles surrounding the Kraków archdiocese. After 1990, we can speak of the retention of

the traditional image of the city and the establishment of subsequent positive elements

resulting from the discovery of heritage other than the Polish and Catholic features of

Kraków.

b) Emergence of diversified regional economy

As far as the 19th

century period of autonomy was a turning point for the image of

Kraków, in the case of economy, the turning point can be observed over the last 15 years. The

period of transformation is becoming a time of birth for the diversified economy of the

voivodship. Its sources may be found in previous features of the region, yet was made

possible by a democratic system, the market economy and the opening of borders. A free

market released the potential of entrepreneurship, which was embedded in the southern and

south-western part of the region. The high investment attractiveness of the region caused an

influx of external investors (7.5% of all foreign direct investment in Poland), which, however,

did not lead to domination of the regional economy by foreign capital. The tourist sector and

service sector (including high level services) developed rapidly.

c) Persistent relative backwardness of certain rural areas of the voivodship

Economic development of Małopolska villages in the Galician period and the inter-war

period had the characteristics of a vicious circle. A high population growth rate in villages and

the tradition of dividing land led to the creation of farms of a very small size. Improvement of

the agricultural structure was only possible through an outflow of people from villages, yet

this was not encouraged by the limited industrialisation and urbanisation of the region. The

– 25 –

solution was foreign migration, which was thwarted during the inter-war period. A slight

possibilities of taking over the surplus of the rural population by cities entailed

overpopulation in villages, hidden unemployment and further division of land. The weakness

of cities and low industrialisation of the region also meant a small internal market for

agriculture. Poverty in rural areas, resulting from an inappropriate agrarian structure, meant

low demand for goods and services provided in the cities. This, in turn, thwarted their

development and was not conducive towards creation of new workplaces, which could

manage the surplus in villages. Samecki (1998) believes that overpopulated villages and

dispersed agriculture was the basic source of ailment for the Polish economy in the inter-war

period. In the socialist period, the problem of hidden unemployment in villages was

decreased, but not solved, inter alia by the fact that industrialisation significantly overtook

urbanisation. At the same time, Małopolska villages dominated by private peasant farms

remained significantly underfunded with respect to the technical and social infrastructure.

Commuting to work in the cities resulted in the creation of a class of peasants/workers which

was strongly impacted by the phase of shock therapy. The transformation created conditions

for the development of the multi-functionality of villages; however, progress in this respect is

strongly diversified. The situation is best in the suburban zones of the larger cities and in the

southern and south-western part of the voivodship. The development of the multi-

functionality of villages is not highly advanced in the north of the voivodship (Proszowice

and Miechów poviats), the north-eastern areas (Dąbrowa Tarnowska poviat) and in the east

and south-east of the region (Tarnów and Gorlice poviats). Differences in the construction of

a multi-functional rural economy result from a number of features: historically shaped cultural

habits (entrepreneurship and mobility), education of the rural population, proximity to growth

centres in the region and touristic attractiveness.

d) Fragmentation of land ownership

Fragmentation of land ownership in Małopolska bears a number of features of lock-in,

and its consequences, both positive and negative, go beyond the original problem regarding

management of arable land. It influences and will continue to influence the following

features:

a) difficulties in rationalisation of agricultural economy – with respect to fragmentation

of ownership of land and the disordered property status of a number of plots;

b) economic structure of Małopolska. In contrast to reindustrialisation, which takes place

on a great scale in the Dolnośląskie (Lower Silesian), Śląskie (Silesian) and Łódź

voivodships, the activity of large companies in Małopolska, with respect to the

construction of large plants, is slightly weaker. Moreover, lack of investment land may

constitute an impediment for the multi-functional development of rural areas;

c) rational shaping of the spatial layout of Małopolska‟s cities and villages and future

infrastructural investments;

d) protection of the environment and limitation of possibilities for the introduction of

principles of sustainable development in the region.

The genesis of the problem lies in the tradition of equal division of land among all

children in Galicia1, which, with respect to densely populated rural areas and a high rate of

population growth, resulted in huge fragmentation of land ownership. The resulting

impossibility of being able to sustain oneself with a small farm was the cause of hidden

unemployment, which forced people to search for alternative sources of income and generated

1 In contrast to inheriting an entire farm by chosen single heir in Polish areas belonging to Prussia in the 19

th

century, e.g. in Wielkopolska.

– 26 –

a constant stream of migrants (Fig. 7). Foreign out-migration was, until the First World War,

the most important effect of overpopulation of Małopolska villages.

Fig. 7. The origin of fragmentation of land ownership and its effects

Źródło: Authors‟ elaboration.

The areas of the present-day Małopolska voivodship, with the exception of its western

part, were weakly industrialised until 1945. This state of affairs was changed by socialist

industrialisation. Insatiable demand for workers in this extensive type of industrialisation,

combined with urbanisation that lagged behind and a high number of redundant workers in

villages, bore fruit in the form of the establishment of a class of peasant-workers rather than

an outflow of people from villages to cities. The chronic lack of grocery items in trade and the

traditional attachment of peasants to their land convinced people to retain their farms. Thus,

fragmentation of land continued. At the same time, funds obtained from work in industry, as

well as received from relatives from abroad (the result of former migrations), enabled the

growth of single family housing. Legal regulations from the 1970s enabling farmers to build a

home anywhere within the borders of a dwelling area meant a rapid dispersion of

development and, in consequence, an increase in construction costs and infrastructure

– 27 –

maintenance for Małopolska villages. Another result of fragmentation emerged, i.e.

consequences regarding the development structure in rural areas. At the same time, since the

1970s, it was more and more popular to equip houses with central heating (local boiler rooms,

which were heated mainly by coal, often of low quality). Bearing in mind the dense

population and the land (weakly ventilated valleys), the result was a significant increase of

low emission. After 1990, the spontaneously developed network of water supply systems was

not accompanied by an appropriate growth of the sewage collection system and sewage

treatment plants. In the upland areas, with their strongly dispersed development, pollution of

soil, underground waters and surface watercourses by household cesspools became a serious

problem (German 2002).

The significance and the diversity of the results of land fragmentation rapidly increased

during the transformation period. They were related with the overlapping of three phenomena:

(a) an increase in construction activity, both multi- and single-family development, as well as

commercial development and return of the mechanism of land rent, (b) sub-urbanisation and

(c) liberalisation and weak enforcement of regulations within the scope of spatial planning

and construction law. As a result, we are observing progressive spatial anarchy, which is

particularly visible in the areas of Kraków, being in the phase of expansion. It is also

manifested by degradation of landscape and cultural values in the Kraków and Częstochowa

Upland and in the area of the Carpathian Mountains. The supply of investment land by the

Małopolska self-governments is also limited due to huge difficulties in the consolidation of

plots (Jarczewski 2007). As a result, Małopolska is not able to make use of the investment

boom which has been visible in Poland for a couple of years with respect to new large

industrial and logistic projects. At the same time, the lack of greenfield areas for new

investments is conducive towards the use of post-industrial land, which, with respect to the

limited availability of alternative locations, are relatively attractive.

Major challenges and barriers in the perspective of the twenty-first century

The easiest way to divide the barriers and challenges for development of Małopolska is

into two groups: external and internal. The first group includes factors related with the general

political and economic situation of Poland, the European Union or even the entire globalised

economic system. One may wonder whether global challenges, such as the problem of climate

changes, depletion of fossil fuel resources, transfer of production to China and other Asian

countries or the problem of the demographic ageing of Europe, puts Małopolska in a more

difficult position than other regions of Poland and/or the European Union. The challenges

listed above are most likely a smaller problem for Małopolska. Climate change and an

increase in the oceans' temperature may lead to an increase in evaporation and cloud cover

and therefore an increase in precipitation (mainly during wintertime), which will improve

conditions for the development of skiing in the mountainous part of the region. An opposite

scenario, where the changes would result in greater insulation, may be favourable for summer

tourism as well as for agricultural activities such as orchards. An increase in temperature will

reduce the cost of heating, which will be beneficial in the context of the increased cost of fuel

(see the second challenge), yet it will differ from Southern Europe, where a decrease in

temperature will become a problem (air conditioning, which is highly energy consuming). An

increase in the number of extreme phenomena (floods, hurricanes and draughts) should also

have a milder course in the region – the weakening factor is the varied land relief, larger water

resources than in other parts of the country and a high share of forest areas. An increase in the

cost of fuel will have less of an impact on the competitiveness of the region, which is densely

populated, which means a smaller amount of transportation work; moreover, this is not based

on energy-consuming economic sectors. A certain threat and an unknown factor is the impact

– 28 –

of the increase of fuel costs on tourism and the limitation of travel. Paradoxically, even this

may be beneficial, because it would primarily exert an impact on costly distant foreign travel,

and in this context, Małopolska, as one of the more attractive areas of Poland and this part of

Europe for tourists may record an increase in the tourist traffic. If we combine this with dark

visions of the desertification of Mediterranean Europe (climate warming), the climatic

attractiveness of Małopolska will add to an increase of tourist traffic. The diversified service

economy of Małopolska seems to be little threatened by the production and economic

expansion of China in contrast to the Silesian and Lower Silesian voivodships. The most

serious challenges are possibly the demographic issues. Despite a more favourable initial

situation in comparison with other regions of Poland, with the current demographic trends,

Małopolska will age rapidly and lose its inhabitants. This will be weakened by in-migration,

yet the vision of future development cannot be built on this basis. Migration in itself brings

the challenge of the integration and assimilation of migrants, which is particularly strong if it

refers to migrants from other cultural circles (ethnic and religious). Failure to meet the

challenges of integration will lead to social fragmentation and erosion of regional identity and

the region‟s cohesion, i.e. values which are considered the pillars of current development and

the region's superiority. It is necessary here to mention the significance of Ukraine on the

political and economic map. Ukraine open towards Europe is an important developmental

advantage for Małopolska as an economic partner, a transit place and a labour market. A

reverse situation means not only a loss of direct economic and social benefits, but it also may

impact the image and perception of the region as located peripherally at the borders of the

“stable world”.

The most important internal barrier for development in a long-term perspective is the

settlement structure of the region with its dispersed settlement and fragmented land structure.

At present, dispersed settlement means high costs of construction for any sort of

infrastructure; such projects are currently implemented with the use of external funds;

however, in the future, the costs of exploitation and renovation will largely encumber local

finances. Fragmented plots not only impede the conduct of a rational farming policy, but also

significantly hinder economic, housing and infrastructural investments. Gminas, especially

suburban ones, implementing the postulates of the inhabitants, assign more and more land for

construction in their spatial plans; this leads to the aggravation of spatial chaos and a decrease

in the attractiveness of housing. In the perspective of the further development of the

population of suburban zones, effective transportation will be an increasing challenge.

Difficulties in the accessibility of transportation and longer travel times not only constitute a

measurable financial cost, but also a decrease in the attractiveness of housing and investment

in the area. Failure to take into account landscape aspects in spatial planning or, even more,

failure to enforce these aspects will lead to the erosion of the unquestionable advantage of

Małopolska. A good example may be provided by solutions adopted in Germany. Wise and

farsighted spatial planning that implements the postulates of sustainable development not in

the perspective of 5 or 10 years, but looking 50 - 100 years ahead also poses an important

challenge. For example, if a motorway is not planned to Nowy Sącz today, something which

nobody thinks of at present, its construction in 50 years‟ time will entail the necessity of

numerous demolitions and reconstruction of infrastructural networks and will result in huge

costs.

An undeniable challenge in the long-term perspective will be the more rapid economic

and social development of Kraków than of the rest of Małopolska. This may reduce the

region‟s cohesion and, through the mechanism of the wash-out effects, might become a self-

reinforcing process. The remedy to this process will be constant improvement of the

transportation accessibility of Kraków with respect to the rest of the region, preventing its

functional separation.

– 29 –

Communication accessibility is also a challenge for the vision of development of

tourism in the southern part of the voivodship. The multi-functionality of mountainous areas

entails greater communication needs than in other agricultural areas. The positive functional

transformation of rural areas will be thwarted by an insufficient transportation infrastructure.

Differentiation in accessibility, caused, for example, by irregularities in the development of a

network of fast road connections (an express road to Zakopane), will lead to an increase in

differences in development among gminas which are well and badly connected. This will also

entail a concentration of the pressure on the environment along better accessible corridors. In

this context, the challenge is the preparation of a vision of development and appropriate

accessibility planning and investment process adjusted to it.

A challenge of another nature is the availability of highly-qualified personnel for public

offices and educational institutions. Fast economic growth entails serious competition from

the private sector, which offers higher remuneration and opportunities for professional

development.

A challenge and a task facing regional and local authorities is making a catalogue of

their strong points and their appropriate management, bearing in mind that not all types of

growth are good and are desired. An example may be provided by the organisation of stag

parties in Kraków by travel agencies for tourists mainly from Great Britain. In a short-term

perspective, this means revenue and an increase in the number of tourists, yet in the long-term

perspective, it may have a very negative impact on the image of the city and loss of much

wealthier and less troublesome tourists. A similar problem is the rapid growth of Kraków as

an academic centre, understood in terms of an increase in the number of students, without an

appropriate increase in academic staff. In effect, this may lead to deterioration of the standard

of education, whereas insufficient investment may lead to a decrease in the comfort of

studying and would do harm to the image of Kraków and the idea of making it the Polish

Cambridge.

Conclusions: development and transformation of Małopolska in a long-term perspective

Looking at the development of Małopolska in a long-term perspective, one should ask

which of the five transformations of the Polish space (Kukliński 2008b) exerted the greatest

impact on the contemporary developmental trajectory of this region, and where is this impact

visible?

Certain important structures, in particular the settlement network, with the dominant

role of Kraków, whose geographical range of impact exceeds the borders of Małopolska, were

already shaped during the Middle Ages.

The consequences of the first great transformations of 1815 and 1914 in Małopolska are

difficult to overestimate. Location in the periphery of the Austro-Hungarian Empire and

Russia, combined with low urbanisation and industrialisation, an archaic agrarian structure,

increasing fragmentation of farms and the overpopulation of villages, led to economic

backwardness in the development of capitalist economy. At the same time, important

differences emerged between the Galician part, which constitutes a definite majority of the

present-day Małopolska voivodship, and the northern part, included within the borders of the

Congress Kingdom of Poland. The differences regarding self-government and the beginnings

of elementary education which developed in Galicia are still visible in the aspirations and

educational achievements and the level of entrepreneurship, as well as in civic and social

activity. Poverty became an impulse for mass emigration, which today bears fruit in social

contacts and the transfer of economic and cultural models from abroad. In this period, the

developmental path of Kraków as a symbol of Polish national identity crystallised; it is also

– 30 –

possible to look for the beginnings of the popularity of national tourist trips to Kraków and

recreational tourism in the mountain areas.

The transformation of the inter-war period (1918-1939) exerted a relatively slight

impact on Małopolska. Much greater and ambiguous is the impact of the socialist period

(1945-1989). The new borders of Poland enabled the advancement of Kraków as a central

place in southern and south-eastern Poland. This was related to the fact that Kraków took over

a part of the sphere of influence of Lvov (the present-day Podkarpackie voivodship). Other

factors which contributed to the increase in Kraków‟s role was the extension of Polish rule

over the entire area of the Upper Silesian Industrial District, which, as a result of the

underdevelopment of services, bore weight within the scope of a number of higher level

functions in the capital of Małopolska, and an increase in the number of ties with the former

Kielce voivodship, where there was no competitive centre for Kraków. The imprint of forced

industrialisation was lesser than in a number of other regions of the country, in spite of the

construction of the Nowa Huta steelworks, a shoe plant in Nowy Targ and several other

flagship investments, as well as the general extension of older plants. It is important that

industrialisation did not cause the specialisation in certain manufacturing industries which are

in decline today nor the establishment of many mono-functional or mono-plant centres. The

commuting to work on an unprecedented scale by farmers (so-called peasanst-workers)2 had a

huge long-term impact. These people bore the costs of insufficient urbanisation, being

deprived of access to public social infrastructure; an indirect positive result in the long–term

perspective was increased activity and aspirations and the transfer of capital. At the same

time, the tourist movement increased in several parts of the region also serviced by private

entrepreneurs. The peripheral character of agricultural parts of the region was aggravated;

these areas were not included in the industrialisation processes or the development of the

tourist movement – primarily the northern and partially eastern poviats.

What was changed by the transformation after 1989?

The first fundamental feature of the transformation of Małopolska, differentiating it

from the transformation of a number of other regions in the country, is the fact that it was not

accompanied by a serious decline of economic activities on which the previous development

of the region relied. In other words, Małopolska avoided the problems and difficulties related

with the collapse of entire basic sectors, as happened in industrial centres of Upper Silesia and

Łódź voivodships, numerous mono-plant centres, especially those related to the armament

industry, or in northern regions, which in the past were dominated by state-owned farms.

What is more, the giants of the socialist industry mostly underwent successful restructuring

(e.g. the steelworks in Kraków, the chemical plant in Tarnów and Oświęcim) or after collapse

provided a basis for the development of local entrepreneurship (footwear manufacturing in

Podhale).

The second basic attribute of transformation after 1989 in the Małopolska region is the

release of various forms of activity, which were dormant or limited during the socialist period,

and their reliance on features shaped in the previous periods. It is possible to search for the

basis of this activity both in the tradition of the hard work of farmers in the mountainous

areas, the strong sense of identity, the deeply rooted religiousness, the civic and local

government activity, and the intensive external contacts with the Kraków metropolis and

abroad. In densely populated rural areas with large villages, the above factors were conducive

to creation of local markets, establishment of local institutions (e.g. schools), construction of a

close network of roads and, at the same time, multi-functional development, gradually

changing the traditional agricultural Galician villages. The relatively favourable demographic

structure and education of the inhabitants were conducive to this. Forms of activity which

2 It was greater only in the present day Podkarpackie voivodship and the region of Bielsko-Biała.

– 31 –

started to play an important role in dynamising and diversifying the region's economy during

the period of post-socialist transformation were developed earlier: servicing of the tourist

movement, education, science and culture, local production entrepreneurship (metal and wood

products).

In general, the developmental path of Małopolska bears numerous attributes of an

evolutionary structure of long duration. The long duration of certain features and structures

had key importance for the transformation between 1990 and 2010 and the shaping of the

current developmental path of the region, much more than in the case of western and northern

regions of Poland. A major role of continuing tendencies and the impact of features shaped in

the previous period do not mean continuation of social and economic backwardness, which

characterised Małopolska before the First World War. Post-socialist transformation became a

type of critical conjuncture for various economic, social and institutional processes, which

together shape a new path of development of the region.

Fifth transformation: Małopolska in the time horizon of 2020 and 2050

What are the consequences of the discussed regularities of transformation and the

contemporary developmental trajectory of Małopolska for its future?

Among the basic factors conditioning future development of the discussed region will

be the role of the Kraków metropolis as the keystone and node joining Małopolska with

global economic networks and impulses of innovativeness. The success of Małopolska,

especially in the 2050 time horizon, will not be possible without the success of Kraków in the

national and international competition as a European metropolis. The self-reinforcing positive

image of the city and the region, conducive towards the development and attracting of human

capital in the situation the European demographic crisis, as well as the diversification of the

regional economy, are among the factors fostering the continuation of the positive cumulative

developmental path of Małopolska shaped in the period of post-socialist transformation.

Another important determinant will be the success or failure of the present deep restructuring

of the neighbouring Katowice conurbation.

The cohesion of the region should facilitate transfer of developmental impulses from the

metropolis to the entire region. An important unknown from the point of view of this cohesion

are future migration trends: the scale of out-migration and returns of Małopolska residents and

the scale and directions of the influx of immigrants from neighbouring countries and from

other continents. Significant challenges, or possibly barriers, at least in the 2020 time horizon

and probably much longer, will be the land fragmentation and resulting dispersion of housing

development, costs of infrastructure development and environmental costs, as well as the

weakness of traditional farming in certain areas. A chief challenge in the long-time

perspective will be the problem of accessibility, resulting from the snowballing increase in the

automotive traffic.

– 32 –

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