English Version - United Nations Development Programme Romania

sectors fall into this category: industries assisting in the modernisation of agriculture and the efficient use
of agricultural, forest, and animal breeding products, communication equipment, computer and software
technology, vehicles, secondary processing of ferrous and non-ferrous metal products, processed
macromolecular products, clothing, furniture, and paper industry, electronic assembly industry,
environmental protection equipment industry, certain categories of machinery and spare parts,
construction materials industry, waste recycling.
The third category includes the remaining sectors and sub-sectors of the extractive and
processing industries.
b) Intra-sectorial restructuring must seek to improve the production structure and its
performances and the modernisation of technologies in viable enterprises, as well as in those enterprises
that have the potential to become viable. This restructuring should take place in all viable or potentially
viable enterprises, no matter the sector they belong to, since, without in-depth market and sector studies
done by professional associations and economic agents, it is currently hard to predict which industries
will be subject to economic growth in the future.
Financial and human resources should focus on the production of a limited number of
products and, in certain cases, of product components, in order to increase, in a shorter time span, the
competitiveness of products, exports, productivity and added value. This can also be achieved by cooperating
with high-standing companies from developed countries.
Closing down or converting oversized enterprises, enterprises with obsolescent or inefficient
technology, without any prospects of becoming competitive.
c) Conforming to European and international standards could act as a catalyst for export
growth and, at the same time, would increase the efficient use of resources, bringing along an increased
added value.
d) Expert products that require advanced processing standards, that would lead to the creation
of specialised structures that will research markets and promote Romania’s own interests on third markets.
e) Strengthening of efficient use and growth of the country's own research and development
potential. This implies ensuring co-financing and credits that will support the creation of efficient
technology of national interest.
f) Acceleration of privatisation could stimulate the free enterprise, and this would lead to an
efficient use of industrial capacity. This could also render the economy more flexible to the demand on
the domestic and international markets.
Investment of domestic private capital, in addition to the investment of foreign capital, is a
premise for sustainable economic growth in the national interest.
g) Increasing managerial performance is an essential pre-requisite for the increase of the
industry's competitiveness. The government should support the training of managers in the private and
public sector. Global experience proves that management determines whether privatisation will succeed
or not, keeping in mind that it is the managers and not the shareholders who manage an enterprise.
Investing in management is, in all developing countries or countries that lack experience in market
economy, the most profitable investment sector. Investing in management training will considerably
increase economic competitiveness and growth in the medium and long run.
h) Developing the services required for production, from the initial stages of the production
process (research and development, design, technological engineering, testing, market forecasting) to the
intermediate stages of the process (management, maintenance, quality control) and to the final stages of
the process (distribution, advertising, post-sale services). This is a condition not an option that will make
competition on the market and an increase in exports possible. Therefore, it is necessary to supply more
products and services.
i) Increasing the potential for competition by concentrating the industrial and industrialfinancial
sectors of the economy in holding associations especially in the area of 'strategy and finance'.
The globalisation process stimulates this trend, and there is a gradual but rapid tendency to eliminate tariff
and non-tariff barriers. This leads to the attainment of certain important requirements of sustainable
economic growth by means of:
Drawing up and applying certain coherent strategies on long and medium term, with special
attention being paid to the best employment of limited resources; this can be achieved by certain
advanced processing cycles, which will have a favourable effect on added value and employment.
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