Citation

The State against Business, Business against the State in an Unstable Legal Environment: Socio-Legal Analysis Based on Polish Experience

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Abstract:

After the 1989 democratic and liberal economic transition, a legal system full of loopholes and based on too broad and blurred regulations has been established in Poland. This system has several consequences. It allows arbitrary decisions by public officials (not accountable for all decisions, e.g. financially), which may result in downfall or collapse of a company. Yet, it also creates a possibility of cheating the state by entrepreneurs, tax evasion bribing officials for being granted tax exemption or deferment. On the other hand, some companies are favored, especially those with well-established political connections on a local or national scale.
This legal system of constant change is also conducive and even enables state capture. It takes the form of influencing legislative processes and affecting the final shape of legal regulations (statutes, ordinances). Such regulations have (in several cases) both been created at the political demand or to favor a particular company or sector.
In this system, law can also be instrumentally used for political or other particular purposes to favor or pursue given companies. There are several reasons for that, amongst which political directives seem to play a major role. As a result, prosecution and administrative bodies (customs, revenue offices) may use the legal system into the realm of almost unlimited powers, which allow them to instigate and conduct legal proceedings against virtually any entrepreneur.
Wrongdoing by the state and against business, as well as cheating the state by companies is especially easy in an unstable, often-changing legal system which allows arbitrary decision-making by public officials and offers loopholes and conflicting regulations.
In our presentation we will show examples of legal regulations, which are neither clear, nor sharp enough, and therefore can be easily drawn against companies, as well as used by private business to o take the advantage of the state. We will present several stories of Polish entrepreneurs legally wronged by the state. Despite public criticism and accused businessmen being cleared of all charges, prosecutors and officials never suffered any consequences of their destructive actions. These examples will serve to prove the point of a legal system designed in such a way that it allows legal injustice and prosecution by state institutions and, on the other hand, opens the state to predatory abuse by some companies. It is exactly in the system of weak and unstable law that the state and business, instead of partnership, clash in antagonistic relations.
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Association:
Name: The Law and Society Association
URL:
http://www.lawandsociety.org


Citation:
URL: http://citation.allacademic.com/meta/p496582_index.html
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MLA Citation:

Polak, Paulina. and Gadowska, Kaja. "The State against Business, Business against the State in an Unstable Legal Environment: Socio-Legal Analysis Based on Polish Experience" Paper presented at the annual meeting of the The Law and Society Association, Westin St. Francis Hotel, San Francisco, CA, May 30, 2011 <Not Available>. 2014-11-25 <http://citation.allacademic.com/meta/p496582_index.html>

APA Citation:

Polak, P. A. and Gadowska, K. , 2011-05-30 "The State against Business, Business against the State in an Unstable Legal Environment: Socio-Legal Analysis Based on Polish Experience" Paper presented at the annual meeting of the The Law and Society Association, Westin St. Francis Hotel, San Francisco, CA <Not Available>. 2014-11-25 from http://citation.allacademic.com/meta/p496582_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: After the 1989 democratic and liberal economic transition, a legal system full of loopholes and based on too broad and blurred regulations has been established in Poland. This system has several consequences. It allows arbitrary decisions by public officials (not accountable for all decisions, e.g. financially), which may result in downfall or collapse of a company. Yet, it also creates a possibility of cheating the state by entrepreneurs, tax evasion bribing officials for being granted tax exemption or deferment. On the other hand, some companies are favored, especially those with well-established political connections on a local or national scale.
This legal system of constant change is also conducive and even enables state capture. It takes the form of influencing legislative processes and affecting the final shape of legal regulations (statutes, ordinances). Such regulations have (in several cases) both been created at the political demand or to favor a particular company or sector.
In this system, law can also be instrumentally used for political or other particular purposes to favor or pursue given companies. There are several reasons for that, amongst which political directives seem to play a major role. As a result, prosecution and administrative bodies (customs, revenue offices) may use the legal system into the realm of almost unlimited powers, which allow them to instigate and conduct legal proceedings against virtually any entrepreneur.
Wrongdoing by the state and against business, as well as cheating the state by companies is especially easy in an unstable, often-changing legal system which allows arbitrary decision-making by public officials and offers loopholes and conflicting regulations.
In our presentation we will show examples of legal regulations, which are neither clear, nor sharp enough, and therefore can be easily drawn against companies, as well as used by private business to o take the advantage of the state. We will present several stories of Polish entrepreneurs legally wronged by the state. Despite public criticism and accused businessmen being cleared of all charges, prosecutors and officials never suffered any consequences of their destructive actions. These examples will serve to prove the point of a legal system designed in such a way that it allows legal injustice and prosecution by state institutions and, on the other hand, opens the state to predatory abuse by some companies. It is exactly in the system of weak and unstable law that the state and business, instead of partnership, clash in antagonistic relations.


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