Political economy of French capital in interwar Poland

A shortage of capital is one of the biggest challenges faced by peripheral states. Without proper funds, economic growth is difficult, yet the easiest solution to obtaining capital on international markets is fraught with danger. This may lead to an erosion of a state’s sovereignty, while the potential transfer of foreign profits abroad threatens a country’s growth. Interwar Poland also faced this challenge, and the goal of the project is to study how the country coped with these inherent difficulties, based on the case of French capital.

The choice of France stems from its unique position in Polish politics. France was Poland’s most important ally in the interwar period and, at the same time, the newly reborn country’s major source of foreign capital. French loans financed Polish armaments and crucial infrastructural investments, such as the port in Gdynia or the Silesia-Gdynia trunk line, both constructed by French companies. Not all French actions were as beneficial to the Polish economy. France used its political position to pressure Poland into extensive concessions, and French companies enjoyed privileges few others had. Their owners would at times circumvent the law and usually got away with it thanks to political protection.

In the most famous case, after a prolonged conflict in the French-owned textile plant in Żyrardów, the murder of its CEO, and the murderer’s widely-publicised trial, provoked discussions about foreign capital in Poland and the position of the country in the world. This project will explore these contradictions between the different roles of France in the interwar Polish economy, as well as their political and social contexts. In order to achieve these goals, three questions will be answered: how did French capital get to Poland, what did it do there, and what reactions did it provoke?