The Development Potential of Romania

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    Babe -Bolyai University

    Faculty of Economics and Business Administration

    Master Saint George

    Regional development policy in Romania

    Directive: Student:

    Dr. elemen Ant!nia Mi"ola# $odica-Andrea

    2013

    The development potential of Romania is very good. The plainfact that there are between

    two and three million Romanians working and studying abroad is a positive sign. Many see

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    migration as a bad thing but a high degree of mobility is a good thing. !n the one hand a high

    degree of mobility indicates that people in Romania have the education and skills that allow

    them to find "obs in developed economies. !n the other hand the e#perience and skills ac$uired

    by Romanians abroad will be important for the future development prospects of the country.

    %evelopment is inherently uneven & don't get scared by the unevenness try to embrace

    it. %evelopment re$uires a shift of resources (people ideas capital) to areas where they can be

    more productive. These are usually areas with greater economic mass. *n fact almost every

    country in the +, has a higher level of economic concentration than Romania. *f you hope to be

    as developed as the rest of the +, is you should welcome concentration not fight it. !ver time

    as Romania will become more developed regional differences in welfare will even out & the

    same way it has happened in more developed countries.

    %evelopment is about people not about regions or cities. Romania's development

    strategies should not focus on regions or cities but on its people. -hatever you do some regions

    will develop faster than others. This means that some regions will lose people (usually the

    lagging regions) while other will gain people (usually the leading regions). *f your goal is topromote balanced regional growth you will almost certainly fail. *f however you aim to offer as

    many people as possible access to opportunitiesby providing essential institutions (especially

    public security education and health care)and good infrastructure you will create right

    conditions for healthy and rapid development and with a more efficient use of limited public

    resources.

    Romania has a very important advantage over other developing countries & it is close to

    the place with the highest economic mass in the -orld/ -estern +urope. *t should take full

    advantage of this and try to build on it through further and deeper integration in +urope. This

    will re$uire not only investments in strategic infrastructure (highway connections are critical in

    this respect) but also a focus on encouraging the movement of people within this space.The type of investments it has done in the past but allocate those in a more strategic way/

    *nvestments in institutions (e.g. schools health care centers public services infrastructure &

    water sewage gas etc.) everywhere.

    onnective infrastructure with priority for leading areas (particularly infrastructure that

    connects people to the growth poles) and for lagging areas with high population density (such as

    the orth+ast).Targeted measures for marginalied groups whose access to opportunities is

    affected by e#ternal factors (e.g. ethnic discrimination).