According to the
\nlatest report on transition, drawn up by experts with the European Bank for
\nReconstruction and Development, Romania needs a new economic growth model,
\nbased on innovation, in order to be able to catch up the developed countries in
\nthe West. The report was presented on Tuesday at a conference held at the
\nheadquarters of the Romanian Central Bank. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
The regional EBRD
\ndirector Matteo Patrone said that the GDP has been growing above its potential,
\nbased on consumption and salary increases, without being correlated with an
\nincrease in the country’s productivity. To accelerate on the convergence path,
\nRomania, like many other countries in the region, needs a new growth model
\nbased on innovation and integration in the global value chain, Matteo Patrone
\nalso said, while also voicing his conviction that Romania is on the right path,
\ndue in particular to its human resources and high technology, in fields such as
\nthe IT and the aerospace industry. Still, as the EBRD director also stressed,
\nmany ingredients are still missing or need to be supported, in terms of
\nstructural reforms. Patrone believes that infrastructure is a crucial
\ningredient, as it stimulates social inclusion and geographical integration,
\nincreases productivity and paves the way for trade and foreign direct
\ninvestments in the country. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
According to the
\nEBRD official, within the next five years, the need for infrastructure
\ninvestment in the region will have reached 40% of the total investment
\nrequired, accounting for 1.9 billion Euros. He also referred to Romania’s
\nmotorway network, saying that with its only 747 km, Romania ranks quite low as
\ncompared to other countries in the region in terms of infrastructure network
\ndensity and geographic expansion. Still, as Matteo Patrone stated, there are
\nsectors where progress has been made, such as water and energy, pointing at the
\ninterconnection of the Romanian gas network with those of Bulgaria and Hungary.
\n<\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
The chief economist
\nof the Romanian Central Bank Valentin Lazea, who attended the presentation of
\nthe EBRD report, said that a country cannot expect a high rate of economic
\ngrowth indefinitely if it’s a democracy and doesn’t make the necessary
\nstructural reforms. Valentin Lazea drew attention to the fact that one of the
\ncosts of democracy is that decisions are made at a slower pace, things take
\nlonger and the growth is not as high as in dictatorial regimes. He mentioned a
\nfew issues that Romania is still faced with and needs to resolve, such as the
\ngaps existing between regions, between youth and the elderly in terms of access
\nto the labour market and between men and women as regards salaries. <\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
According to experts with the European Bank for Reconstruction and Development (EBRD), Romania needs a new economic growth model.<\/p>\n","protected":false},"author":46,"featured_media":78089,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[29212],"coauthors":[],"class_list":["post-78088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-economy"],"acf":[],"yoast_head":"\n