Romania at a Cross Roads : The Business Situation in Romania

• Observations have suggested that results of initial elections were the single most important factor in determining central and eastern European progress after the U.S.S.R. breakup in 1991. Romania thus presents a unique case in studies of this region. Initially it elected a government that shunned the ‘‘shock therapy’’ required to get a new economy started, but in 1996 elected a reform slate of officials. Thus, it has started the recovery process that more perceptive countries started five years earlier. These post-election developments in Romania are clearly of interest because of the model it presents for other countries in which the electorate may be considering similar changes. This paper reports on the situation in Romania as it related to the evolving economy there in the spring of 1999, three years after the critical election. It is adjudged that conditions imposed as part of the contemporaneous World Bank agreement were of course steps in the right direction. Nevertheless, progress toward a viable economy would require further progress in establishing a rule of law and in developing a much larger small business sector, which are recommended for any subsequent country making a similar transition. Forecasts by the prime minister suggested Romania would enter the EU after 2010. It is suggested that it would take at least that long before Romania’s economy approached EU level.

Ämnesord

SAMHÄLLSVETENSKAP  -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)

SOCIAL SCIENCES  -- Economics and Business -- Business Administration (hsv//eng)

Nyckelord

Romania

business sector development

privatization

Business studies

Företagsekonomi

företagsekonomi

Business Studies

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