Top 10 companies operating by management contract
4. Romanian econo my i age of aliza restric ions, xig nci
4.1 Romania in numbers
and be “new, multilateral developed people of socialism”, a new test of history pushes us towards a capitalism of abundance, towards post-modernism society. A new experiment?
4.1 Romania in numbers
earcher, which would try to have
levant, because, even mentionin
es are many es co adicte y off l stat ime, s
col g reality, of data introduced into the system
ething f r our e deavor, any s
’s popul tion (th usands f inhabi
m
last
population in rural areas, as a reduction of the level of industrial activity. W p
the population from the village to the cities, towards major blocks of flats meant to break the past and form a new man. In parallel, im
another, either trough deportation, or under the pressure for need of qualified labor force in the development industry, first in regions with more tradition in this field, in order to form new nterprises in the regions which were left behind, then vice versa, to balance the ethnic e
d alism, fo he payment of war debts, and the feeding ti
R
67 In spite of the law for transparency, the miner uprisings, their economic effects and not only, are under the sign of e concerning privatization
1
the sphinx.
168 See as an edifying example thos
126
Production of main agricultural products Total thousands tons ( world/Romania)
Average per inhabitant Average for ha 1990 1997 1998 1999 kg 1999
Brute fleece 3065 2421 2372 2363 0,39
38 22 20 19 0.85
Cow milk 481840 466427 478081 480659 79
4156 5421 5248 5078 226
Potatoes 267586 301556 293377 294332 48 16358
3186 3206 3319 3957 176 14434
Corn 479340 586410 614003 600418 99 4313
6810 12687 8623 10935 487 3627
Wheat 592589 613342 591632 583624 96 2711
776
7379 7186 5208 4683 209 2
Number of livestock (a he beg ning o the yet t in f ar) Total thousand heads ( world/ R mania) o
1990 1997 1998 1999 Sheep/goats 1772784 174 821 1767386 8 1778603
16452 10317 9547 8994 Pigs 855775 841890 882544 912708
11671 8235 7097 7194Only 4797 in 2000 Bovines 1430628 1482306 1492260 1496828
6291 3435 3235 3143Only 2870 in 2000 Source: Romania’s Yearbook 2001
is the one of the industrial sector. We present
Today Romania is struggling to ensure the required food products. The cases will be analyzed in the following chapter.
The most controversial problem here only the
indexes, as compared with several other countries, chosen not by accident.
Source: Romani k 2
After 1990, the theory of the official propaga a e is m developed countries (the US and articula ) t om ’s was a o aps. A sudden amnesia of western technocrats (the Romanian people were not given access to information under the law of secrecy) ignored that the same industry produced armament, one of the major exporters in the world (today, from 200.000 worker we have 35.000, and they are too numerous for the amount of orders stated – less than 5% of total capacity169); that on oilfields, big western companies were
a’s Yearboo 001
nda nd sp cial ts fro the EU in p r was hat R ania just pile f scr
169 Nine years ago Romania exported armament of total value of 167.7 million dollars, in 2002 the value was only 43.8 million dollars. In 2001, local companies managed to sell outside the borders products of only 24.5 million dollars. “Our main problem is the lack of orders from the internal and external markets”. – Dan Garboveanu, executive director of PATROMIL. Considering the fact that Romania will align itself directly to NATO requirements,
Indexes of industrial production (%)
Country 1999/1990 Annual average rhythm 1999/1995
Romania 57.3 -6 83.1
Russia 50 -7.4 100
Slovakia 84.3 -1.9 105.6
Hungary 125.2 2.55 142.4
127
meeting with an co i Ro ia c a a hicles were spread in South America, Africa and Asia, R anian chemica d w der embargo
due to the du level o r t t gons were appreciated,
etc. that the Romanian fleet had the largest tonnage under the national pavilion. All under political pretext
Romani mpet tors, that man n tra tors nd l nd ve
that om l pro ucts ere always un mping f the price/quality atio, hat locomo ives and wa
. But did Thatcher not do the same?
Brute GDP / inhabitant (calculus on the parity of purchasing power) international dollars Country 1995 1996 1997 1998 1999
Romania 6095 6595 6422 6153 5441 ! different methodologies Czech Rep. 9770 10870 10380 12197 12840
Slovakia 7380 7460 7860 9624 10430 Hungary 6410 6730 6970 9832 11050 USA 26980 28020 29080 29240 31910
S ania’ book 2001
a’s percentage in the world GDP in 2000 is modest: just 32748 million USD, meaning close to 0.09% (0.4% in population numbers), with an annual growth rate of 0.1%, meaning 1460 USD in 1995 per inhabitant and 6442 USD in 2000, of which 13% from agriculture, 36% industry and 6 rvices UN a rld Bank sta
According ted from agriculture,
hunting and fishing with 15.1%, industry, inclu building wi %, and s es – including
fina iaries – %.
ource: Rom s Year
Romani
1% se (according to nd Wo tistics).
to Romania’s yearbook in 1999, the GDP was constitu
ding th 33.9 ervic
ncial intermed with 51
External commerce is strong. Here are a few comparative data for 1999.
Percentage of exterior commerce of several countries in world trading
country Export FOB Import CIF
1990 1997 1998 1999 1990 1997 1998 1999 Romania 0.17 0.16 0.15 0.15 0.26 0.21 0.22 0.19 Czech Rep. 0.42 0.49 0.48 0.49 0.53 0.51 Hungary 0.29 0.34 0.43 0.45 0.25 0.38 0.47 0.49
Slovakia 0.15 0.2 0.18 0.19 0.24 0.2import FOB USA 11.58 12.74 12.79 12.69 14.83 16.35 17.41 18.68
It is clear that we have a deficit. We must extend our area of comparisons
(mil USD)/USD
1970 1978
Country Export FOB Import CIF Export FOB Import CIF
Total Per inhabitant Total Per inhabitant Total Per inhabitant Total Per inhabitant
the patronages of the profile m the market. The demand
for armament on the markets as well as a result
of modifications in y of in on tions. over, exter tries where our country operated states such r the Ukrai tered, gr mame ustry th own.
industry estimates 50-60% of weapons factories will vanish fro internal market was reduced because Romania lost traditional external the realit ternati al rela More on the nal coun
as Russia o ne en with a far eater ar nt ind an our 128
Romania 1851 91 1960 97 8237 377 9087 416
Czech Rep. 3792 265 3695 258 11747 776 12565 830
Portugal 949 105 1582 175 2393 244 4791 489
Slovakia 2317 224 2506 594 6345 594 7902 740
USA 42500 209 39756 195 141154 647 182787 838
The inferiority position is maintained, but progress is obvious, although the transition period marks stagnation.
An important contribution to the transition period was the policy of the discount interest rate of the National Bank.
Discount interest rate of the National Bank of Romania (%) Country 1995 1997 1998 1999 2000
Russian Fed. 160 28 60 55 25
Romania 35 40 35 35 35
Hungary 28 20.5 17 14 …
Poland 25 24.5 18.3 19 21.5
….
R.P.China 10.44 8.5 4.59 3.24 3.24
Czech Republic 9.5 13 7.5 5 5
Source: Romania’s Yearbook 2001
The National Bank still has high discount interest rates, after which at the beginning of the period it was the main instrument in dragging liquidities towards the banking system, thus generating a financial blockage and the blockage of the economic system, especially in industry.
Still, after it repeatedly lost the country’s golden reserve, the reserves of Romania are still solid;
this questions yet again the need and opportunity for IMF loans.
Source: Romania’s Yearbook 2001