English Version - United Nations Development Programme Romania

More documents

Recommendations

Info

5.9%; machinery and equipment industry 10.7%; automotive industry: 7.2%; construction materials, glass and ceramics industries: 4.4%; metal products and metal constructions industry: 3.8%; electric and optical equipment industry: 3.9%. The structure of the workforce according to age groups (1996) is better balanced in industry than in other sectors of the economy and creates the necessary conditions for the sustainable development of industry. 90% of workers employed in industry are under 50 years of age, and 42,2% of workers are under 35 years of age. The specific problems that should be taken into account in designing the strategy for a sustainable development of the industry refer to the creation and application of a professional and managerial training system, in line with the global technical and technological progress. This strategy should also rehabilitate the activity of scientific research, stop the emigration of highly qualified specialists, and offer new opportunities to the unemployed, especially in the development and specialisation of services. d) Competitiveness of Romania's industry The increasing decline of production and the low occupancy rate of the production potential demonstrate the decline in competitiveness in most energy intensive sectors that also require costly materials and capitals. As a result of foreign capital investment, privatisation, and certain technological improvements, the following industries have had a relatively satisfactory growth: the communications equipment industry, the automotive industry, as well as industries manufacturing electric equipment, textile, clothing, construction materials, furniture, tyres, antibiotics, and chloride and sodium products. The shrinkage of the industrial production has been determined mainly by the slow adaptation to the new demands and structure of the markets after 1989, managerial incompetence at the microeconomic level (technical, financial, commercial, human resources) especially in state-owned enterprises. Other factors were: the increasing loss of capital and the dull economic environment, the slow pace of privatisation and restructuring, the incoherent and unstable legal framework which discouraged foreign investment, the insufficient support offered by the banking system to the reform process and also, the inability to use the opportunities created by the Association Agreement to the E.U. (technical and financial assistance, the asymmetric tariffs regime, safeguarding clauses, etc.). e) Privatisation The development of the private sector in industry was slower than that of other economic branches. In 1997, the industry's contribution to the net added value in the private sector of the economy reached 25.9%; this exceeds the contribution of the private sector in business. The private sector prevails in manufacturing varnish and paint (85%), cosmetics (93%), detergents (74%), meat products (67%), cooking oil (63%), bread (75%), beer and wine (over 60%), household glassware (86%), china (79%), newspaper editing and printing (94% and 75%, respectively), tyre, clothing, automated telephone exchange equipment (over 50%) etc. Fields where the private sector has a significant contribution with tendencies to increase: leather and footwear industry, wood processing, cement and construction materials industry, pharmaceuticals, chemical fertilisers and automobile industry etc. The contribution of the private sector is very low in sectors requiring large investment: the extractive industry, the generation of electric and thermal power, metallurgy, refineries and petroleum industry, manufacturing of machinery and equipment, cellulose and paper, etc. It is noteworthy that in the private industrial sector productivity is clearly superior to that in state-owned enterprises. This is demonstrated by the fact that 29.7% of the total population employed in the private sector produced in 1997 over 43% of the net added value. This is the result of a more efficient microeconomic management, of a more active investment policy and of amortisation of the fixed capital. OBJECTIVES AND DIRECTIONS FOR ACTION The deterioration of the industrial and economic activity, a situation that was first seen in the 1980s, then the accelerated decline and chronic macroeconomic imbalance created between 1990 and 1998, demonstrated that in the general context of the difficulties generated by the transition process, the socio-economic evolution of Romania was also adversely affected by the absence of an integrated global strategy capable to define a pragmatic approach to the medium- and long-term options and goals to be realised in the development of the main industrial branches and to evaluate and optimise the impact upon the human development. 46
In this context, the strategy for the sustainable development of the industrial sector should seek an increase in competitiveness, and based on this, it should also seek stable and sustained economic growth, in conjunction with the environmental protection. This goal is not simply a desideratum, but a necessity. If this goal is not achieved, integration within the E.U structures and the global values circuit will not be possible, given the globalisation of the economy and the elimination of tariff and non-tariff barriers. The industry and the agriculture accounted for 31-32% and 16-20%, respectively, of the GDP, and the figures are superior to those reported by several developed countries. This does not lead to the conclusion that the activity in these two important sectors of the economy should register a decline. The contributions are related to a lower value of the GDP per capita and the contribution from the other branches of the economy (the tertiary service sector, for example,) is very reduced. An average increase of the added value in the industrial sector of 6-6.5% in the next 15-20 years is estimated as being feasible. However, reaching this goal implies an essential modification regarding resources for economic growth, though the creation of a superior dynamic of net added value as compared to the one of intermediate consumption. In order to achieve this goal, the main guidelines for action could be the following: a) Outlining an operating industrial macrostructure , taking into account the following guidelines: The dimensions of the domestic market and the prospects of expanding demand for consumer and capital goods in the long and medium run. Interference and spreading effects among industries that have the potential to develop (agriculture, communications, transport, construction, and public works and utilities, etc.). The ideal overall structure of the industry would need to include the industries capable to support the agric ulture (manufacturing tractors, agricultural machinery, fertilisers, irrigation equipment, pesticides) as well as those that depend on agriculture (food industry, liquor and tobacco industry, textile and clothing industry, leather and fur industry). Contribution to the efficient and competitive usage of raw materials, materials and power, which will lead to an increase of added value per unit of resource used. Size and technological level of fixed capital; level of attractiveness and realistic perspectives for attracting foreign and domestic capital investment in the modernisation process which will increase competitiveness, according to the profitability of capital spending (duration of capital recuperation). The current and estimated increase in size and efficiency of exports and the efficient use of material and power resources directly or indirectly contained in exported products, based on the results of marketing activities and on the favourable estimated effects of microeconomic privatisation and restructuring. Comparing Romania to other countries that aspire to E.U. integration sets Romania at a disadvantage. Romania's per capita export is 4 times lower than Hungary's, 6-7 times lower than the per capita export in the Czech and Slovak Republics, and 12 times lower than that of Slovenia. Though 95% of the exports from Romania are industrial products, during the past three years, export earnings have been limited to approximately $8.3-8.4 billion. Revitalising the exports would significantly aid economic growth, reduce the balance deficit in foreign trade and help stabilising the national currency. Following the global trends towards the expansion of certain industrial sectors , which are characterised by, sophisticated technology with applications in the information society, as well as the capacity of radiating the technology, i.e. the ability to introduce products or services into other economic and social sectors. Observing the above-mentioned guidelines, the industrial sectors (which may be divided into three categories) will benefit from the application of policies capable to speed up the selective restructuring and the privatisation process, apart from some monopolies that must still belong to the state, and to attract foreign and domestic capital. The first category includes the strategic industries; these ensure that certain fundamental needs are met and have a major impact on the performance of the socio-economic system, power sufficiency, national defence and public health, under normal and emergency circumstances. This category could include: production, transportation and distribution of electric and thermal power, extraction, processing, transportation and storage of hydrocarbons, defence industry, production of certain pharmaceutical substances and products (antibiotics, vaccines) needed in emergency situations, when epidemics break out, or in cases of natural disasters. The second category includes industries that could significantly influence sustainable economic growth, international economic exchanges, and the modernisation of infrastructure and other branches of the economy. These industries could also propagate influences upon employment, productivity increase, and efficiency in the processing of raw materials and materials. The following sub- 47
Page 1 and 2: ROMANIA National Sustainable Develo
Page 3 and 4: The Prime Minister of Romania Roman
Page 5 and 6: The President of the Romanian Acade
Page 7 and 8: First Part: Objectives and Prioriti
Page 9 and 10: CHAPTER 2 Priorities of Sustainable
Page 11 and 12: According to some surveys of school
Page 13 and 14: udget debts, and of social pressure
Page 15 and 16: tendency - provoked by the foreign
Page 17 and 18: The energy sector in Romania is fac
Page 19 and 20: The most likely scenario for Romani
Page 21 and 22: surveying networks corresponding to
Page 23 and 24: Criteria for evaluating options for
Page 25 and 26: The basin principle , according to
Page 27 and 28: 80% of the lignite and brown coal r
Page 29 and 30: entered into, new environment prote
Page 31 and 32: Table 4.3 Indices of forestry resou
Page 33 and 34: Improving the logistics level in or
Page 35 and 36: CHAPTER 5 Evaluation and the Develo
Page 37 and 38: When drawing up the stages for the
Page 39 and 40: The future of the energy industry m
Page 41 and 42: Increasing efficient user consumpti
Page 43: Increasing the contribution of this
Page 47 and 48: Increasing of the financial, resear
Page 49 and 50: inspecting the technical condition
Page 51 and 52: Ensuring availability of human reso
Page 53 and 54: 5.8 Trade During the last few years
Page 55 and 56: demand to these products, the gover
Page 57 and 58: -million lei- Total spending: 1,465
Page 59 and 60: Aluminium 33 40 10 24 Paper and car
Page 61 and 62: In 1994, the National Bank adopted
Page 63 and 64: Generally speaking though, the insu
Page 65 and 66: CHAPTER 6 Evaluation and Developmen
Page 67 and 68: growing population as the result of
Page 69 and 70: APVP = potential lost life years (d
Page 71 and 72: allocated for health increases only
Page 73 and 74: The legal framework, as well as the
Page 75 and 76: Speeding up reforms in the field of
Page 77 and 78: 6.5.3 Non-governmental organisation
Page 79 and 80: Fig. 6.2 -Internal migration Thous.
Page 81 and 82: Unidentified materials 300 thousand
Page 83 and 84: Providing housing for all the popul
Page 85 and 86: Healthy economic growth, efficientl
Page 87 and 88: The result of the differentiated co
Page 89 and 90: Establishing certain priorities and
Page 91 and 92: Key actions and commitments of the
Page 93 and 94: 8.2 Financial policies The principl
Page 95 and 96:
8.3.2 Premises SME development in R
Page 97 and 98:
The threat of increased pressure on
Page 99 and 100:
CHAPTER 9 Social policies The subst
Page 101 and 102:
The current system functions based
Page 103 and 104:
CHAPTER 10 The institutional framew
Page 105 and 106:
CHAPTER 11 Territorial planning Ter
Page 107 and 108:
CHAPTER 12 External Policy and Nati
Page 109 and 110:
) Flexible reallocation of necessar
Page 111 and 112:
CHAPTER 13 Development of Infrastru
Page 113 and 114:
structure for a thorough, comprehen
Page 115 and 116:
NATIONAL SUSTAINABLE DEVELOPMENT ST
show all

English Version - United Nations Development Programme Romania

Create successful ePaper yourself

Delete template?

Save as template?