The world is facing a new dawn

In the current global landscape, marked by a post-pandemic era alongside conflicts and the subsequent crises they have engendered, is this a new era in world history or merely our perception? If indeed it signifies a new order heralding a fresh chapter in economic history, what can we anticipate? These were the questions that experts endeavoured to address during the panel discussion titled, “Old Debts, New Horizons – The Economics of the Future”.

A long list of challenges

A change consisting of many parallel processes was described by Professor Grzegorz Kołodko, former Minister of Finance.

– “This is not a moment; it is rather a process we are dealing with. A process of a different quality than the last few decades have shown, which is complicating the world economy”, said prof. Grzegorz Kołodko, who pointed out that technological progress solves an enormous number of problems, but also creates some new ones. According to the expert, it is important to realise this and acknowledge that we do not know how things will turn out.

Professor Kołodko highlighted the significant demographic shifts characterised by substantial inequalities. Some nations are witnessing a sharp decline in their populations, particularly in the working-age group, while others grapple with persistently high and expanding populations. These demographic trends are likely to intensify migration patterns, potentially leading to military conflicts in numerous instances. Additionally, a crucial issue is the changing attitudes towards the economy, regrettably indicating a shift in a negative direction.

– “I am observing how quickly rational thinking about economic matters goes away. The world is becoming less and less rational. When I look at American acts, Chinese sanctions, the rebuilding of global supply chains, or other government behaviour regarding public finances, I see irrationality there”, prof. Kołodko said.

Finally, many of the unfavourable processes are blamed, in the professor’s opinion, on the crisis of liberal democracy that is not working. – “This factor played a role in the preceding financial crisis between 2008 and 2010, and it has struggled to handle the pandemic effectively or navigate the current phase of the Cold War, which is characterised by irrationality and exacerbates irrational behaviour within the economic realm. The prevailing politics are not conducive to promoting a holistic approach to sustainable development encompassing social, economic, and demographic facets, as had been the trend in recent decades. This juncture raises numerous concerns from a political perspective, making it challenging to rest easy.

Cautious optimism

Włodzimierz Wlaźlak, CEO of Lidl Polska, agreed with the professor’s view of a very important moment in world history. – “We are at a unique point in the history of Poland and the world, from an economic point of view”, he said.

The CEO of Lidl admitted that he views the Polish economy with cautious optimism, based on the experience of the past few years.

– “The year 2020 was incredibly challenging, as companies had to mobilise to ensure the supply of food during the pandemic. Just when it appeared that the series of catastrophes, including successive waves of the pandemic, had abated, 24 February 2023 arrived, solidifying the inflationary pressures that had been accumulating over the past two years”, said Włodzimierz Wlaźlak. – “Today, there is debate as to whether this will be rapid economic growth. I am optimistic because of what I have observed over the last three years, of what the Poles have shown over these years, i.e., the flexibility, commitment, and willingness to fight as entrepreneurs. The market is looking for a new way to allocate resources. You could see how Polish companies were trying to respond to the threats of previous years”, he said.

The CEO of Lidl emphasised that today up to 75% of the assortment in Lidl Poland shops comes from Polish suppliers. This was also relevant during the pandemic. – “We know that in difficult times, it is also necessary to talk to suppliers. For instance, when there were payment bottlenecks, we paid out more than PLN 300 million of liabilities to suppliers ahead of their due dates to make them more comfortable”, pointed out Włodzimierz Wlaźlak.

Another advantage that the company derived from the pandemic was a significant advancement in technology, partly driven by the government’s directive to restrict the number of individuals in public spaces. The self-service checkouts implemented during that period are already the preferred choice of 60% of customers.