Poland Reclassified as a Developed Economy by the FTSE
202 Populist politics, public anxiety over immigration and governments bristling over the experiment with integration called the European Union are driving social currents across Europe. All of those forces are active in Poland, but the centralâ¦
Populist politics, public anxiety over immigration and governments bristling over the experiment with integration called the European Union are driving social currents across Europe.
All of those forces are active in Poland, but the central European country is now also the source of some good news. The country that experienced economic growth even during the recent global financial c risis has now been elevated to the group of developed economies in the Russell Index, run by the Financial Times and Stock Exchange, or FTSE.
Poland becomes the first country from the former Soviet bloc to be graded as a developed economy by FTSE, a London-based provider of economic and financial data. The country has showed itâs creditworthy, and its citizens earn enough to qualify for the FTSE designation.
âAs of September 2018, Poland will leave the FTSE Emerging All Cap Index (where its weight, as of March 2018, was 1.33 percent) and join the FTSE Developed All Cap Index, where its index weight is projected to be 0.154 percent,â write the authors of the FTSE report. âReclassification as a Developed market is the fruit of continuous improvements in Polandâs capital markets infrastructure, supported by the countryâs steady economic progress.â
Poland is the eighth-largest economy in the European Union and the largest in central Europe , and the FTSE designation is one the countryâs leaders have chased for years because of its status. But government officials have often been criticized for not making enough progress in developing its capital markets and its market economy. In 2004, when the FTSE country classification was first introduced, Poland failed in four of the 21 criteria. Back then it did not have free and well-developed foreign exchange and derivative markets, stock lending was not permitted , and the country was dealing with problems related to the rights of intermediaries in international investment.
[ MORE: 10 countries that receive the most foreign direct investment.]
Now, according to the FTSE, Polandâs formal stock market regulatory authorities actively engage in monitoring activities, minority shareholders benefit from fair and non-prejudicial treatment, and foreign investors are generally welcomed in the country. At the same time, Poland now has well-develope d equity and foreign exchange markets, a landscape that makes it easy for foreign investors to pour capital in the country.
Poland also meets the World Bank criteria for high gross national income per capita. According to most recent data, Poland ranked 57th in the global ranking with an average gross national income of $12,710 per capita in 2017.
Following the collapse of communism, Polish leaders moved quickly to establish a free-market economy, one that has matured over the years. Today, the countryâs economy possesses enough competition, efficiency and transparency to be considered developed, the authors of the FTSE report said.
These are all good signs, say experts, as Polish leaders seem to understand the need to work closely with the European Union to develop a maturing economy.
âThis elevation in status reflects Polandâs determination to push through economic reforms and win benefits from its membership in the EUâs single market,â sa ys Daniel Hamilton, professor at Johns Hopkins University School of Advanced International Studies and an expert in U.S. foreign policy.
In recent years, growing nationalist politics in Poland have fueled a testy sparring match between the countryâs leaders and the European Union. The new economic designation places responsibilities on the countryâs leaders that will be seen to investors as guarantees, Hamilton says.
âGaining developed market status commits Poland to maintain fiscal and monetary discipline and assurances about the rule of law.â
Poland now occupies the list of developed European economies along with Austria, Belgium, Luxembourg, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the U.K.
The elevation of Poland is the first time in nearly a decade that a country has been promoted from an âadvanced emergingâ economy to a âdevelopedâ one in the FTSE ranki ng. The ranking considers various criteria, including the quality of a countryâs market, consistency and predictability, stability, market access, and the cost of implementing economic changes.
Other countries added on the FTSE watch list this year are Argentina, Vietnam and Romania, considered to be added on the list of secondary emerging nations.
More from U.S. News
Polandâs Kaczynski Says Germany Should Pay Damages for World War Two
Poles Seek to Assert Themselves Within EU
Commentary: Be Patient with Poland
10 Countries That Receive the Most Foreign Direct Investment
Poland Reclassified as a Developed Economy by the FTSE originally appeared on usnews.com
- FBI completes interview of Kavanaugh's high sc hool friend
- The Latest: Strong winds reported in area of stranded ferry
- AP FACT CHECK: New trade deal not as big as Trump claims
- Brother-in-law: Suspect in mansion killings asked me to help burn van
- Ricin detected in mail sent to Pentagon
- Multiple p eople arrested over 2017 white nationalist rally
- Adams Morgan PorchFest will feature more than 45 bands
- Why most people canât read the Greene Turtleâs new menu
- White House tells FBI it can talk to anyone about Kavanaugh
- Primera Air ends Dulles-London service just weeks after launching
- Indie horror king comes to DC: Don Coscarelli on Hollywood, his memoir and more
- Column: This is why NFL players hold out
- Defining the âFâ: Md. school district considers standardized grading scale
Fun & Games
Need a break? Play a quick game of solitaire or Sudoku. Or take one of our fun quizzes!500Source: Google News Poland | Netizen 24 Poland