Agriculture under the Europe
2020 Strategy
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
Structure of the lecture

Guidelines for Europe 2020 Strategy

Agriculture in the European Union

Agriculture and the EU's international policy

Agriculture and public goods
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
2
Guidelines for Europe 2020 Strategy

What is Europe 2020 Strategy?

New, long-term program of periodic socio-economic development
the EU

Replaced the Lisbon Strategy implemented since 2000

Globalization necessitates joint action of the European Union
countries to exit from the crisis and implement reforms

Challenges such as aging of society and growing need for
efficient use of resources can be met at the level of cooperation
in the European Union
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
3
The three priorities of the Strategy
Europe 2020
1. Smart growth
i.e. a development based on science and innovation
2. Sustainable growth
i.e. a transformation towards a low carbon economy, effectively
using the resources economy and competitive economy
3. Inclusive growth
to reinforce economy characterized by high levels of employment
and providing economic, social and territorial cohesion
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
4
Five indicators of progress of the
Strategy
1. Achieving the employment rate of 75%
2. Improving the conditions for conducting
research and development, including 3% of
EU GDP for investment in research and
development
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
5
Five indicators of progress of the
Strategy
3. Reducing greenhouse gas emissions by
20% compared to 1990 levels, an increase
of 20% renewable energy in overall energy
consumption, efforts to increase energy
efficiency by 20%
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
6
Five indicators of progress of the
Strategy
4. Raising the level of education, especially by
reducing the percentage of dropout rates to
less than 10% and increasing the proportion
of people with higher education aged 30-34
by at least 40%
5. Promoting social inclusion, especially
through reduction of poverty, with the aim of
rising from poverty or social exclusion 20
million citizens.
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
7
Instruments for implementation of
the Strategy
Guiding Initiatives
(Flagship Initiatives)
National Reform
Programmes


developed by EU
Member States
to be ready by
April 2011
Andrzej Grzyb

prepared by the EC

implemented at EU
level, Member States,
regional and local
authorities
Lecture, University of Economics
Poznań, 18 February 2011
8
Guiding initiatives (flagship initiatives)


Innovation Union – improvement of the framework
conditions for innovation and use of innovation to
solve major social and economic problems
identified in Europe 2020 Strategy
Youth on the Move – improving quality at all levels
of education and training as well as increasing the
attractiveness of European higher education
internationally
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
9
Guiding initiatives (flagship initiatives)


Digital Agenda for Europe – achieving
sustainable economic and social benefits of the
single market of digital, based on access to
broadband Internet
Resource efficient Europe – supports the shift
towards
a
resource-efficient,
low-carbon
economy and the desire to eliminate the
dependence
of
economic
growth
from
environmental degradation
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
10
Guiding initiatives (flagship initiatives)


An Industrial Policy for the Globalisation Era –
improving the conditions for entrepreneurship and
supporting the development of a strong industrial
base, capable to compete on a global scale
An agenda for new skills and jobs – creating
conditions for modernization of labor markets by
facilitating mobility of workers and developing
their skills in order to increase employment and
ensure the sustainability of European social
models
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
11
Guiding initiatives (flagship initiatives)

European platform against poverty – ensuring
economic, social and territorial cohesion by
helping the poor and excluded people and
enabling them to actively participate in economic
and social life
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
12
Synergy of the Strategy with the EU
initiatives

On January 26th, 2011 European Comission
published guiding initiative Resource efficient
Europe, which is the instrument for
implementation of the Strategy

It is essential to use the resources efficiently in
European policies on energy, climate change,
transport, industry, agriculture, fisheries,
biodiversity and regional development
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
13
Synergy of the Strategy with the EU
initiatives

By using the effect of synergy between different
policies, the initiative is intended to help in
achieving the objectives set by the EU, such as
long-term goal of reducing greenhouse gas
emissions by 80-95% by 2050, reforming the
agricultural sector and fisheries, increasing food
security in developing countries and increasing
the EU resistance to the risks connected with
global growth in prices of energy, raw materials,
goods and services.
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
14
Synergy Strategy - Action Plan
1. Work out an action plan for the EU low
carbon economy by 2050; an action plan for
energy sector by 2050; and an action plan
for resource efficient Europe
2. Work out a plan for energy efficiency by
2020 and strategy for sustainable
competitiveness in the construction sector
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
15
Synergy Strategy - Action Plan
3. Development of energy infrastructure
(including intelligent grid), trans-European
transport networks and the adoption of the
White Paper on the future of the transport
sector
4. Revision of the Directive on excise duty on
energy
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
16
Synergy Strategy - Action Plan
5. Preparation of the proposal to reform the
Common Agricultural Policy, Common
Fisheries Policy and Cohesion Policy in
accordance with the priorities of Europe
2020 Strategy

In relation to each of the above mentioned areas, the
European Commission will submit concrete proposals
for action, which will be monitored within the framework
of Europe 2020 Strategy
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
17
Agriculture and international trade

Trade in agricultural products in the EU is responsible for
6% of total trade

Declining trend can be observed; for example, in 1995,
trade in agricultural products accounted for 9% of total
EU trade

The source of this trend is the development of trade in
industrial products over the past 15 years, which
accounts for approximately 150%. At the same time,
trade in agricultural products increased by approximately
60%
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
18
Trends in international trade
Source: data from the European Commission website – DG TRADE
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
19
The value of international trade in
agricultural products

The annual trade in agricultural products with third
countries is approximately 160 billion per year

The exchange is balanced, the value of both export
and import amounts to around 80 billion euros a
year

In the past, trade in agricultural products generated
a negative balance
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
20
International trade in agricultural
products

Enlargement of the European Union for new
countries in 2004 resulted in an increase of trade
with third countries by about 60%

The European Union is currently the world's
largest importer and the largest exporter of
agricultural products

It is connected in particular with the trade
exchange with developing countries
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
21
The balance for international trade in
agricultural products
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
22
The balance for international trade in
agricultural products

Security and stability of supplying agricultural
products were the main reasons for
development of the Common Agricultural
Policy in the 60's

Even today, when trade is balanced, in the
area of ​some products, the EU still imports far
more than exports
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
23
The balance for international trade in
agricultural products
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
24
The balance for international trade in
agricultural products

The EU is a net importer of most resources. In the area
of trade, the deficit is about 25 billion euros. This deficit
is generated in particular by oil products, fruits and
vegetables

The surplus is generated by dairy products. Trade in
crops and products connected with farm animals is
balanced
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
25
The balance for international trade in
agricultural products

The European Union is a net exporter of
processed agricultural products. The surplus is
about 20 billion euros

Import from 10 most important trading partners of
the European Union represents more than half of
the total agricultural imports. Brazil was
responsible for 12 billion euros or 16% of imports.
United States accounted for 9% of total imports,
while Argentina for 8%
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
26
Import of agricultural products to the EU –
most important sources of import – countries
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
27
Import of agricultural products to the EU– most
important sources of import - regions
Source: data from the European Commission website – DG AGRI
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
28
Export of agricultural products from the EU most important sources of export - countries

More than half of exports from the
European Union goes to the 10 most
important trading partners

The United States is responsible for 19% of
total exports from the EU, Russia for 10%,
and Switzerland for 7%
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
29
Export of agricultural products from the EU–
most important sources of export - countries
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
30
Export of agricultural products from the EU most important sources of export - regions
Source: data from the European Commission website – DG AGRI
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
31
Structure of imports of agricultural products
in the EU
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
32
Import of agricultural products from
developing countries
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
33
International agreements




Agreement on free trade areas (FTA) with
third countries
Agreement on Partnership and Cooperation
(PCA)
Association Agreement
Sectoral agreements
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
34
Agreement on free trade areas (FTA)
with third countries
Example:

South Korea
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
35
The most important, recently ongoing
negotiations of EU with the third countries:

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








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CENTRAL AMERICA
ARMENIA, GEORGIA,
ASEAN
BRAZIL
CHINA
EUROMED
INDIA
JAPAN
CANADA
SOUTH KOREA
ACP COUNTRIES
MERCOSUR
GCC - Gulf Countries Council
RUSSIA
UKRAINE
ANDEAN COMMUNITY
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
36
European Union Enlargement




Croatia
Iceland
Macedonia
Turkey
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
37
Agriculture and public goods

Multifunctionality of European agriculture

The definition of public goods

Types of goods provided by agriculture


Global

Local
Awarding for public goods

Variants

Problems
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
38
Multifunctionality of European
agriculture

Andrzej Grzyb
The Cork Declaration 1996
Lecture, University of Economics
Poznań, 18 February 2011
39
The definition of public goods

According to Paul Samuelson, public goods
are goods of the following characteristics:
1.
no one is excluded from the benefits arising
from their use (no exclusion from
consumption)
increase in the number of users does not
eliminate or reduce the possibilities of using
particular goods by all users (they are not
competitive in consumption)
2.
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
40
Division of public goods:

Global

Local
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
41
Global public goods are goods that
are universal for all countries, social
groups and generations, e.g.:

oxygen production

carbon sequestration

protection of biodiversity

protection of water

ensuring food safety
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
42
Local public goods are goods that are
consumed on the local level, e.g.:

land protection

water erosion, relates to more than 20% of the area
of our country

protection of water

protection of landscape

protection of rural heritage

creating conditions for leisure and recreation

creating jobs in rural areas
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
43
Variants of awarding for public
goods




direct assessment of the procured goods and
paying for them
payment for the use of property rights to
resources or factors of production
payment for the lost income connected with
the supply of public goods related to the
environment
Covering of the transaction costs
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
44
The objectives of the future CAP


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Economic efficiency and competitiveness
Food safety
Distribution of income
Rural public goods
Protection of the environment
Protection of landscape
Food Standards
Animal welfare
Development of rural areas
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
45
The priorities of Polish presidency
( 1 July 2011 – 31 December 2011)

promotion of investment associated with the development of
renewable energy sources in rural areas

promotion of activities aimed at increasing energy production
from agricultural by-products and residues of agro-food industry

efficient use of EU financial resources

taking care of public goods - food security and multifunctional
development

future of the milk and milk products market – abolition of the milk
quota in 2015

simplification of the Common Agricultural Policy
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
46
The draft report „The CAP towards 2020: meeting
the food, natural resources and territorial challenges
of the future” - by Albert Dess MEP

A wide debate on global budget of Pillar 1
and 2

The idea of sustainable and competitive
agriculture

Plant and animals welfare

Simplification of the future CAP
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
47
Direct Payments

Not connected with the volume of production

Equitable distribution of the budget under Pillar 1 and Pillar 2
between Member States and farmers from each Member State

Strategy of farm payment

Division of direct payments and individual historical benchmarks

Guarantee of basic income for small farms

Simplification of the system of direct payment

No upper limit

Payment for profesionally active farmers
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
48
Sustainable management of natural
resources and elements of the environment

Improved sustainable management of natural resources should be
linked to direct payments

Any environmental benefits can be efficiently achieved by Member
States through the adoption of benefits from Pillar 2

Participation in programs of sustainable development is mandatory
for each farmer receiving direct payments

Compensation for element of the environment in Pillar 2 is powered
from the budget of Pillar 1
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
49
Cross-compliance and simplification

The system of cross-compliance for all
beneficiaries of direct payments

Cross-compliance - limited to the control of
primary and recognized standards

The elimination of disproportionate burdens
placed on livestock by the cross-compliance
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
50
Market instruments and safety net

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The general market orientation of the CAP should be
maintained
Further, individually focused on farm, risk management
in the facethe of expected environmental risks, climate,
risk of epidemics and high price volatility on agricultural
markets
Providing farmers with national risk management tools
Multi-level security network in the event of temporary
disruption on the market
The extension of private sector insurance schemes
The system of export credits
The extension of the sugar market reform of 2006
until 2020.
The fight against speculation in agricultural commodities
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
51
Rural development

The abolition of the previous axis of rural development

Introducing targeted measures, to be decided by the Member States
in the second pillar, to attain priority objectives of the EU (2020
Strategy)

The compensatory allowance for disadvantaged areas be
retained in the second pillar

An optional increase of 25% in national financing in the second pillar
(top-up) should be possible

Abrupt changes in the allocation of appropriations in the second
pillar to be avoided

At least 10 percentage points of any national cofinancing should
come from public funds
Andrzej Grzyb
Lecture, University of Economics
Poznań, 18 February 2011
52
Sources:



Baum, R., Śleszyński, J., (2009), Nowe funkcje rolnictwa – dostarczanie dóbr publicznych,
Stowarzyszenie Ekonomistów Rolnictwa i Agrobiznesu, Roczniki Naukowe, tom XI, zeszyt 2;
EPP Group in the EP: Yearbook of the EPP Group in the European Parliament 2010, Bruksela;
Samuelson, P. A., (1954), The Pure Theory of Public Expenditure, Review of Economics and
Statistics, 36 (4);
Documents of the European Institutions: (chronologically within the institutions )
European Parliament



Rezolucja legislacyjna Parlamentu Europejskiego z dnia 17 lutego 2010 r. w sprawie wniosku
dotyczącego rozporządzenia Parlamentu Europejskiego i Rady w sprawie wprowadzenia w
życie dwustronnej klauzuli ochronnej zawartej w umowie o wolnym handlu między UE a Koreą
(COM(2010)0049 – C7-0025/2010 – 2010/0032(COD)), (P7_TA(2011)0061);
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-20110061&language=PL&ring=A7-2010-0210
Rezolucja Parlamentu Europejskiego z dnia 16 czerwca 2010 r. w sprawie strategii UE 2020,
P7_TA(2010)0223; http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7TA-2010-0223&language=PL&ring=P7-RC-2010-0348
Projekt opinii Komisji Rolnictwa i Rozwoju Wsi w sprawie WPR do 2020 r.: Sprostać
wyzwaniom przyszłości związanym z żywnością, zasobami naturalnymi oraz aspektami
terytorialnymi, , Sprawozdawca: Albert Deß, 15.02.2011, (2011/XXXX(INI));
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+COMPARL+PE458.545+02+DOC+PDF+V0//PL&language=PL
mgr inż. Andrzej Grzyb
Wykład na Uniwersytecie Ekonomicznym,
Poznań 18 lutego 2011
53
Sources:





Rezolucja Parlamentu Europejskiego z dnia 16 lutego 2011 r. w sprawie sprawozdania o
postępach Chorwacji w 2010 r, (P7_TA(2011)0059);
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P7-TA-20110059+0+DOC+XML+V0//PL&language=PL
Rezolucja legislacyjna Parlamentu Europejskiego z dnia 17 lutego 2011 r. w sprawie projektu
decyzji Rady w sprawie zawarcia Umowy o wolnym handlu między Unią Europejską i jej
państwami członkowskimi, z jednej strony, a Republiką Korei, z drugiej strony (08505/2010 –
C7-0320/2010 – 2010/0075(NLE)), (P7_TA(2011)0063);
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-20110063&language=PL&ring=A7-2011-0034
Projekt opinii Komisji Przemysłu, Badań Naukowych i Energii w sprawie WPR do 2020 r.:
Sprostać wyzwaniom przyszłości związanym z żywnością, zasobami naturalnymi oraz
aspektami terytorialnymi, Sprawozdawca: Jens Rohde, 22.02.2011, (2011/XXXX(INI));
http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//NONSGML+COMPARL+PE458.808+01+DOC+PDF+V0//PL&language=PL
Rezolucja Parlamentu Europejskiego z dnia 8 marca 2011 r. w sprawie rolnictwa UE i handlu
międzynarodowego, (tzw. raport Papastamkosa), P7_TA(2011)0083;
http://www.europarl.europa.eu/sides/getDoc.do?type=TA&reference=P7-TA-20110083&language=PL#ref_1_1
Projekt rezolucji Parlamentu Europejskiego z dnia 24 marca 2011 r. zamykającej debatę na
temat oświadczeń Rady i Komisji w sprawie sprawozdania o postępach Islandii w 2010 r., (B70226/2011); http://www.europarl.europa.eu/sides/getDoc.do?pubRef=//EP//TEXT+MOTION+B7-2011-0226+0+DOC+XML+V0//PL&language=PL
mgr inż. Andrzej Grzyb
Wykład na Uniwersytecie Ekonomicznym,
Poznań 18 lutego 2011
54
Sources:
European Commission




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Dokument końcowy Europejskiej Konferencji na Temat Rozwoju Wsi zorganizowanej z
inicjatywy Prezydencji irlandzkiej oraz Komisji Europejskiej w Cork, w Irlandii, w dniach 7-9
listopada 1996 r. Na zakończenie obrad przyjęto tzw. Deklarację z Cork, dziesięciopunktowy
program zawierający wytyczne w sprawie sformułowania nowej polityki wspierania obszarów
wiejskich Unii Europejskiej. Tekst deklaracji dostępny jest m.in. na stronach internetowych
Komisji Europejskiej: "The Cork Declaration - A living countryside", 1996;
http://ec.europa.eu/agriculture/rur/cork_en.htm
Agenda 2000. The challenge of enlargement, COM(97) 2000 final VOL. II. Brussels:
Commission of the European Communities, 15.07.1997. s. 67; http://ec.europa.eu/agenda2000
Communication From The Commission To The European Parliament, The Council, The
European Economic And Social Committee And The Committee Of The Regions, 20 20 by
2020 - Europe's climate change opportunity, Brussels, 23.1.2008, COM(2008) 30 final;
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0030:FIN:EN:PDF
Komunikat Komisji Europejskiej, EUROPA 2020 Strategia na rzecz inteligentnego i
zrównoważonego rozwoju sprzyjającego włączeniu społecznemu, Bruksela, 3.3.2010,
KOM(2010) 2020 wersja ostateczna; http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:PL:PDF
Komunikat Komisji do Parlamentu Europejskiego, Rady, Europejskiego Komitetu
Ekonomiczno-Społecznego i Komitetu Regionów, Europejska agenda cyfrowa, Bruksela, dnia
26.8.2010, KOM(2010) 245 wersja ostateczna/2 http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0245:FIN:PL:PDF
mgr inż. Andrzej Grzyb
Wykład na Uniwersytecie Ekonomicznym,
Poznań 18 lutego 2011
55
Sources:





Komunikat Komisji do Parlamentu Europejskiego, Rady, Europejskiego Komitetu
Ekonomiczno-Społecznego i Komitetu Regionów, Mobilna młodzież Inicjatywa na rzecz
uwolnienia potencjału młodzieży ku inteligentnemu, trwałemu i sprzyjającemu włączeniu
społecznemu wzrostowi gospodarczemu w Unii Europejskiej, Bruksela, dnia 15.9.2010,
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Komunikat Komisji do Parlamentu Europejskiego, Rady, Europejskiego Komitetu
Ekonomiczno-Społecznego i Komitetu Regionów, WPR do 2020 r.: sprostać wyzwaniom
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Komunikat Komisji do Parlamentu Europejskiego, Rady, Europejskiego Komitetu
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mgr inż. Andrzej Grzyb
Wykład na Uniwersytecie Ekonomicznym,
Poznań 18 lutego 2011
56
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






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Komunikat Komisji do Parlamentu Europejskiego, Rady, Europejskiego Komitetu
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
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Wykład na Uniwersytecie Ekonomicznym,
Poznań 18 lutego 2011
57
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mgr inż. Andrzej Grzyb
Wykład na Uniwersytecie Ekonomicznym,
Poznań 18 lutego 2011
58
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