Investment Process in Romania and Institutional Dysfunctionalities

The concepts set out and the macroeconomic policies implemented during the past twenty years have been different and controversial. They have aimed at creating an economic environment conducive to the infusion of foreign capital and development of sectors considered as a priority at that time, which can ensure a sound macro-economic stability, taking into account the fact that there is not enough domestic capital to participate in achieving these objectives. In this paper we will focus on foreign direct investment (FDI) policies designed to promote them, their effects on national economy in general terms and features of investment in rural and agricultural sector, which we consider key elements of success in economic growth. Also, the institutional framework in which the investment process took place is thoroughly addressed given that most times the general investment climate of a certain market is influenced both by legislation and the institutions involved in economic life. The experience of transition and the experiences of other countries have shown how important are institutions created to coordinate, support and control of investment activity. We included in this analysis institutions and organizations in Romania with responsibilities in the investment field. Based on this analysis, and on the contributions of institutions to create the proper economic development, but also by investors' direct contribution to the creation of this framework by policy makers recommendations, it is obtained a profile of the business environment in Romania, including what is best but what is missing and it needs to be implemented. We consider that this approach is an important step in addressing the institutional investment process and it creates prerequisites of disseminating essential information and remedial implications to stakeholders.business environment, foreign direct investment, institutions, investments, Romania.

ROMANIA AND BULGARIA ON THE WAY OF INTEGRATION – INVESTMENTS ASPECTS

The present study as well as the studies produced by UNCTAD, United Nations Economic Commission for Europe1 and other institutions, reveal certain characteristics of the FDI flows in the transition countries from Central and South-Eastern Europe, applicable for Romania and Bulgaria, too: - These flows grow faster than the world average. - The FDI per capita is low compared to the values in Western Europe (2000-3000 USD) and USA (about 1800 USD). - There is a linear correlation between GDP per capita in the transition countries and the FDI level. - The main sectors initially targeted by foreign investors were the industrial sector (40-60%) and the trade sector (12-25%). - About 25% of FDI in the transition countries come from Hungary, Poland, Czech Republic and Russia. In addition to the above mentioned facts, the characteristics mentioned in the present study add to the picture we tried to present in Romania’s and Bulgaria’s case; these countries largely featured an identical evolution, no significant differences were found between them; these countries missed the start of economic transformations in early 1990s, but are trying to make up for the losses at the beginning of this new millennium, while also benefiting from a more favorable international conjuncture. The general framework for FDI attraction, of which the legal framework is a part, although now created by all CEECs, was either not completed or it was affected by instability and subordinated to political struggles, personal or group interests. Neither the institutional framework was mostly adequate and efficient in most CEECs, so that the foreign investment flows were mainly directed to three countries: Poland, Hungary, the Czech Republic. The foreign investors had a negative reaction to those countries in which political instability was manifested, which resulted in social and economic instability, often remembered in EU Country Reports. The drawbacks and frequent modification of legislation, corruption and bureaucracy have been the main disturbing factors. To sum up, it can be stated that the present development stage for most CEECs is far from the EU level in all the economic sectors. Only the five countries from CE (Poland, Hungary, Czech Republic, Slovakia, Slovenia) are closer to the EU parameters; the countries from SEE are far from completing the accession requirements. The large gaps already existing between the countries from CE and SEE would be bridged up only by an aggressive policy, of attracting foreign investors by the SEE countries with a faster rate than that in the CE, in those activity sectors that are interesting for investors; after that, by a „domino effectâ€, other sectors less attractive or with a higher risk level would be included in the international financial flows (e.g. agriculture). Romania and Bulgaria were generally avoided by the significant world investment flows. It is obvious that we are at fault. Only in recent years an acceleration of the investment attractiveness was experienced, with certain strategic privatizations, with largely yearly FDI inflows, with the elaboration of certain special lows for the important foreign investors; this is mostly beneficial and encouraging for the economy and it will be reflected in the future economic growth, while the economic revigoration will be possible. However, with all these positive signals and future hopes, a question still persists, namely: isn’t this start too late, is there time for bridging up the gaps or will these countries continue to remain in the future, too "second hand countries among the second hand European countriesâ€?FDI, GDP, transition countries, Investment Matrix, Agribusiness, Agricultural and Food Policy,

THE ROLE OF THE EUROPEAN RESEARCH NETWORKS IN RURAL DEVELOPMENT

The present paper intends to present “a short history” of a young research network established a few years ago. The network has already a European cover and impact. Its activity was very intense and the results over expectations. Moreover, the cohesion among members makes possible the development of the activity for the future. By this article we want to give an example of a “good practice” in this field. Could be an example for other networks, institutes, research centres and researcher of how an idea can become reality.Europe, Networks, Rural Development, Experience, Agribusiness, Community/Rural/Urban Development, Labor and Human Capital, Teaching/Communication/Extension/Profession,

Challenges for chain based finance in the Romanian dairy chain

This paper investigates the different types of vertical coordination mechanism and the spread institutional arrangements (i.e. contracting) as well as identifies opportunities to expand innovative solutions that help to create and maintain the linkages among the famers and downstream businesses for dairy in Romania. In particular, we address the various modes of access to production factors, such as capital, specific inputs and know-how, as reasons for the varied development of Romanian dairy supply chains and its respective actors (farmers, processors). The paper draws on results from a recent study supported by the World Bank. The findings are based on semi-structured telephone and face-to-face interviews conducted in January-March 2009. The interviews indicate that large and prosperous dairy chains have better access to all production factors, which allows the strengthening of their relationships, especially in the upstream stages (farmers), and supports their competitive advantages in the domestic market. Many barriers exist in the domestic market, particularly for small and medium-sized dairy chains, which hampers their potential exploitation of particular stages in the chain. In the same way the findings indicate that virtually only large companies and farms benefit from public support regarding access to capital (EU-funding, governmental programs) and know-how (extension service).vertical coordination, structural change, farm assistance, Romania, dairy., Agricultural and Food Policy, Food Consumption/Nutrition/Food Safety,

Opportunities for bioeconomy in Central and Eastern European

During the last years, the strategies and policies in the world have moved to bioeconomy concept. However we define the bioeconomy, the future of humanity will have to focus on this concept and what derives from it. For European countries, whether EU states or non-EU countries, the bioeconomy will play an important role in their national economy, by policies and strategies promoted. The goals of this paper are to present the bioeconomy concept, the EU bioeconomy strategic agenda, the state of the national bioeconomy strategies creation and implementation at EU level, and the main opportunities and challenges for CEE countries. To carry out this work, data available from different European bodies with responsibilities in this field were used. A text analysis of these documents, a comparative analysis of the implementation stages, as well as forecasts on the chances of approval and implementation of these strategies in the next period were performed. Part of the results of this study is based on the analyses carried out within the Horizon 2020 project "Advancing Sustainable Circular Bioeconomy in Central and Eastern European countries" (BIOEASTsUP). Through the results of this research we consider that, we can offer a broad perspective on the bioeconomy at the level of the EU, CEE countries, as well as Romania, with their own characteristics, opportunities and challenges for the near future

The market potential of the organic products and niche competitiveness

We are presenting the organic farming in Romania, the general background, the legislation bearing on it, the institutions created to coordinate this activity, the evolution of areas and productions, organization of producers, trade, the new challenges in the filed, tendencies and traditions. By this paper we would like to put in evidence the importance of the organic products on the present market characterized by high competitiveness and niche opportunities. For the analysis, we use long time series data based on statistical data provided by the National Institute of Statistics of Romania, the Ministry of Agriculture and various publications in this field. The conclusions and results of the paper will underline the present market tendencies, the opportunities of the Romanian business environment, the benchmarks for policy makers, niches alternatives and the level of the Romanian organic products market on a competitive global market

Cereal market in Romania-regional competitiveness

The article analyses the Romanian cereal sector in the last decades. The analysis gives a special attention to the sector development level and its evolution by regions. We analyze areas, productions, yields and the trade with cereals, at national and regional level. We try to identify how competitive the sector is and the main factors of influence, based on some quantitative indicators. Moreover, we identify the negative factors which influenced it. The statistical analysis is based on long data series and concentrates on the years before and after Romania’s accession into EU. We use data provided by the National Institute of Statistics. The results presented show the evolution of the cereal sector after 1989, its decline for about ten years, but also the recovery, especially after the EU accession. The article opens new discussions about the role of the cereal sector in the Romanian economy and the ways of development in the context of a high level of competitiveness among European Union countries and other countries in the world. At the same time, by the present analysis we want to show how the regional performances can contribute to the development of the cereal market in Romania

The market potential of the organic products and niche competitiveness

We are presenting the organic farming in Romania, the general background, the legislation bearing on it, the institutions created to coordinate this activity, the evolution of areas and productions, organization of producers, trade, the new challenges in the filed, tendencies and traditions. By this paper we would like to put in evidence the importance of the organic products on the present market characterized by high competitiveness and niche opportunities. For the analysis, we use long time series data based on statistical data provided by the National Institute of Statistics of Romania, the Ministry of Agriculture and various publications in this field. The conclusions and results of the paper will underline the present market tendencies, the opportunities of the Romanian business environment, the benchmarks for policy makers, niches alternatives and the level of the Romanian organic products market on a competitive global market

Small farmers in the Romanian dairy market: Do they have a future?

This paper investigates various modes of vertical coordination, with the focus on small farm integration in the Romanian dairy chain. It draws on results from a World Bank study based on semi-structured interviews conducted in spring 2009. The findings indicate that large and prosperous dairy chains fortify their chain efficiency by partner selection and provision of sophisticated assistance to relatively larger farmers. On the contrary, many barriers exist for small and medium-sized dairy chains (processors and farmers). The main factors hampering their potential exploitation are restricted access to inputs markets (capital, know-how) as well as poor quality of input service (agricultural service delivery, veterinary issues). The majority of cow's milk in Romania is still delivered by small farmers who have difficulties fulfilling the requirements of the modern procurement systems. However, small farmers are a relatively heterogeneous group. Hence, different development paths can be expected. In addition to working with retail chains via strengthening horizontal integration, another opportunity for small dairy farmers is to occupy a market niche. Nevertheless, some small farmers will have to leave the dairy market.vertical coordination, small farms, Romania, dairy., Livestock Production/Industries,