Over half term 29 students visited Krakow and Warsaw in order to observe a wide array of commercial activities taking place. We saw first hand the transition that is still taking place in Poland, with it moving from a command economy to a free market following the collapse of communism there in 1991.

After a journey not exactly free of challenges, we arrived at our newly booked hotel on the opposite side of town. We enjoyed the traditional Polish cuisine which was laid on at very short notice, and eagerly awaited the next day.

On the second day of the trip, we went on an informative tour of Krakow, which, while not linked directly with economics, gave us all an insight in to the past of Poland, which was very relevant in understanding how it has got to current economic position. Following this, we went to the Dobczyckie hydroelectric power plant which, we were told, provides enough power to run a town of 6000 people for 2 days. The industrial activity which takes place here is capital intensive because there is only a small staff there purely to maintain the equipment.

After having moved to a new hotel, we enjoyed all that Krakow had to offer in terms of entertainment, meaning that we were all the more refreshed the following day, when we embarked on the journey to the Zywiec Brewery where we enjoyed a very well developed tour, including its history. It was originally founded by Arch-Duke Albrecht Frederick Habsburg in the mid 19th century, and belonged to the Habsbergs up to World War II, later being acquired by Heineken. This was followed by a tour of the brewery itself where we were shown how, like the power plant, it is quite capital intensive with a relatively small workforce.

This was followed by a day at the Wieliczka salt mine which is a prime example of diversification, because after having mined for over 700 years, the mining has been reduced and tourism has become a major part of the business, with 800,000 visitors seeing the mine every year. During its history, the mine has grown to a huge size, with a depth of 327 metres spread over 9 levels, and 300km of passages, making it all the more impressive for visitors, even though they see only a small section of the whole mine.

Following a thoroughly satisfying time in Krakow, we moved north by train to see Poland’s capital, Warsaw, which differs hugely to Krakow, as it is essentially a new city, the old one having been destroyed during World War II. It acted as a very real reminder of the effect that Poland’s history has had on its development, both economically and otherwise.

The next day, we visited Koneser vodka factory, which, while it did not have the most impressive tour available, did demonstrate the changes which have taken place in the Polish economy since the transition from a command economy to a free market economy. During the time of Communism in Poland, Koneser benefited hugely as it could sell its products very cheaply, with no tax being added to the price. This was due to the government’s wish to distract the workers’ attention from their poor living conditions. Since the free market was introduced, prices of vodka have rocketed due to an 80% tax being introduced, as it is now seen as a demerit good. This has had a very negative impact on Koneser, and it is now suffering financial problems. While touring the production line, it was evident that due to lack of investment in capital goods, the equipment being used was out of date and innadequate for production. With the significant increase in indirect taxation, it is now essential that efficiency is improved to keep costs of production to a minimum.

After this, we saw a completely different type of economic activity, at the Warsaw stock exchange. The visit showed how Poland is very keen to attract investment in order to facilitate its economic expansion, with the minimum value that a company has to have, in order to be floated on the exchange sitting very low, at around £100,000. Having a stock exchange is a relatively new development for Poland, as there was no need for it during the time of the command economy. It has facilitated Poland's move towards being a successful free market economy, especially with the advantages of modern technology which allow easy and fast investment.

Following this, we were shown some of Poland’s overall economic history, with a display of some of the currency used during the time of hyperinflation.

On our last day we went on a tour of Warsaw, seeing monuments of historical importance; admittedly there was not a huge amount of very old architecture to see as most of it was built post world war two, but it was still an interesting experience.

Our trip back to England was largely problem free, apart from rather long queues at Warsaw airport and a slightly delayed flight, meaning that we arrived back in Abingdon at 2.30 in the morning.