annals of the university of petroşani ∼ economics ∼ vol. xi - part i ...

Regional Development - Past, Present and Future in Romania 19
However, as a result of this process of industrialization in many areas of the
country's massive disparities in their economic development were substantially reduced
during the centralized economy. With the transition to a market economy, regional
disparities problem reappeared. After the collapse of the socialist regime and since the
introduction of market economy, resources tended to be directed towards those areas
where it was possible to maximize their utilization. As a result, the poorest regions,
which have seen an artificial industrial development, now supports a severe impact of
transition and structural adjustment in the transition to market economy system.
Statistical data, with all their shortcomings shows that Romania has entered the
transition with a relatively low level of regional disparities, compared to the new
Member States, but that these disparities have increased rapidly, first in Bucharest area
and the rest of the country and, in lesser degree, among other regions.
Economic and social analysis revealed, after 1990, a process of increasing
economic and social development disparities between regions. Development
differences between the most developed region (Bucuresti - Ilfov) and the least
developed (North-East), in terms of GDP per capita increased almost threefold.
At the same time, there is a growing disparity between regions located in the
western half of the country (North-West, Centre and West), with positive economic
developments and an increasing level of many indicators of economic and social
development and those in the middle east of the country (North-South East, South and
South-West), less developed. Market forces tend to favour the widening gaps.
Industrial centres or areas that present a strong service sector are usually more
developed, while the peripheral areas of agriculture, infrastructure predominantly poor
become even more marginalized.
The first analysis of regional disparities in post-communist Romania has been
made under the PHARE program for the period March to July 1996 and was included
in two reports aiming primarily an analysis of sectored differences and then global
ones, between counties, with using aggregate indicators. Based on this information has
been made a map of regional disparities in Romania, which allowed the spatial location
of poverty and under - development in the country's two main areas: north-east, which
includes virtually all the historical region of Moldova and the South, that the largest
agricultural area of the country - Romanian Plain. The second report was completed in
July 1996 ("B"), and established hierarchies of two counties, ordered on the basis of
global development called DEVELOP, calculated for 1990, 1994. The second report
followed, in particular, to analyze trends on the evolution of sectoral imbalances in the
period 1990 - 1994, in order to identify their major causes and significant changes. In
this variant were used 12 indicators, grouped into five categories.
Regional development in Romania is a new concept that aims at stimulating
and diversifying economic activities, stimulating investments in the private sector,
contributing to decreasing unemployment and, last but not least, a concept that would
lead to an improvement in the living standards. In order to apply the regional
development strategy, eight development regions were set up, spreading throughout the
whole territory of Romania. Each development region comprises several counties.
Development regions are not territorial-administrative entities; do not have legal
personality, being the result of an agreement between the county and the local boards.