Rural regions have increasingly diverse economies, depending on a wide range of economic engines for employment and economic growth. International trade, improved communications and reduced transportation costs have propelled economic and social change in rural areas. Given this diversity, traditional policies to subsidise farming have not been able to harness the potential of these economic engines. As such, the OECD has long advocated for a territorial approach to rural development that has positioned rural policy as an investment strategy to promote competitiveness and wellbeing in rural regions. Such an approach can help rural areas seize opportunities and build on their existing assets, such as location, natural resources, natural and cultural amenities and social capital.

Poland has key strengths in agriculture, but has yet to transition to a fully modern form; labour productivity remains low and poverty rates are high. Poland’s strengths in agriculture include a large arable land base that has production capacity that can be readily improved as well as a growing food-processing industry. However, Poland’s agricultural sector is also the most labour intensive in the European Union; agriculture as a share of total employment stands at 11% while its total value added to the economy stands at only 2.4% (2015). This is in part due to limited land consolidation and the dominance of small farms, as well as hidden unemployment in agriculture. While agriculture is a key economic activity for rural dwellers, it is not highly remunerative and farm households face high poverty rates. In 2016, approximately one in four farmers lived in relative poverty, and 11% of farmers lived in extreme poverty.

Rural regions are important for Poland: they host about 35% of the national population, contribute around a quarter of the national gross domestic product (GDP), and produce more than half of the total gross value added (GVA) in the agriculture, forestry and fisheries industries. In a context of solid national growth, rural Poland has seen impressive development, with GDP per capita in rural regions increasing by 61% between 2000 and 2014. When compared to OECD rural regions, GDP per capita growth in Polish rural regions has been amongst the highest, driven partly by a catching-up process. Despite this remarkable growth performance, the majority of rural regions have not converged to national standards in GDP per capita. Notwithstanding this fact, a small group of rural regions registers relatively high incomes and are growing strongly. These regions are located in the regions (voivodeships) of Wielkopolskie, Mazowieckie and Lódzkie and clearly benefit from proximity to urban agglomerations.

This chapter provides a diagnosis of rural Poland, identifying major trends, strengths and bottlenecks to development. The chapter begins by describing the key issues facing rural Poland. The second section provides a profile of rural Poland, including territorial divisions, population dynamics, settlement patterns and labour markets. The third section describes the rural economy, noting the prominence of agriculture and the need for economic diversification. The fourth section describes the key enabling factors of growth and development, skills, innovation and infrastructure. The fifth section describes quality of life in rural Poland. The chapter ends with a discussion of how rural areas are defined, which is very important in terms of how policies are structured and targeted to rural locales.

This chapter examines the structure and focus of Poland’s national rural polices along with the development priorities and policy interventions of regions and local governments in rural areas and the role of the European Union in structuring supports. The chapter begins with an overview of national policies for rural development in Poland and how they have changed over time – from a sole focus on agriculture towards a greater focus on rural development more broadly. Following this, key areas of rural policy are discussed: agriculture; rural economic diversification; spatial, land-use and environmental policies; infrastructure; and public services. The chapter ends with a discussion of how the aforementioned set of policies could be better integrated for more effective rural development.

Effective multi-level governance and deepened decentralisation are key to Poland achieving its rural development objectives. While Poland has made great progress in adopting a strategic framework for rural policies, silos and gaps remain. This chapter discusses these issues in two parts. The first section discusses the governance of rural policy, including the role of the European Union, the national co-ordination of sectoral and territorial policies, the capacity of subnational governments, inter-municipal partnerships, and community-based development. The second section discusses the national government’s new Strategy for Responsible Development, which sets a strong vision for rural development in Poland – one that can only be realised through effective multi-level governance and enhanced regional and local capacity.