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Romania guide
Although its poverty indicators remain significantly adrift of European standards, Romania finally became a member of the European Union in January 2007. The battle for poverty reduction will be fought in the agriculture sector where millions of traditional small farmers await the uncertain benefits of European subsidies and open markets. As yet the political classes inspire little confidence as regional partners, having fragmented into units of self-interest in response to European pressure for higher standards of public accountability.
updated April 2008
Millennium Development Goals in Romania
In common with other upper middle-income countries, Romania has created its own set of national targets to fulfil the spirit of the Millennium Development Goals (MDGs). An unusual feature is the truncation of the normal 1990-2015 assessment period into a much shorter timeframe with a baseline of 2002 and completion of 2009 or even earlier. This makes it more difficult for the government to defer adequate funding for poverty reduction programmes but raises an element of doubt as to whether progress is the result of fortuitous short term factors as opposed to fundamental redistribution of resources.
Romania’s claim to have achieved the MDG target for its measure of “severe poverty” appears to be soundly based. This indicator fell from 10.9% in 2002 to 4.1% in 2006, having stood at just under 10% in 1994. Rural poverty by this measure is over three times that in the cities. Although short of European standards, Romania does offer a social safety net, including pensions and minimum wage legislation to protect low paid workers. The general trend is confirmed in World Bank figures based on a broader poverty measure of people living on less than $3 per day which fell from 36% in 2000 to 13.8% in 2006.
The most serious poverty issue for the Romanian government is the position of the Roma minority; such is their marginalisation that even their numbers are unknown. The government acknowledges over 0.5 million whose identity is registered but civil society groups believe there may be as many as 2-3 million Roma people in Romania, more than any other Central and Eastern European country, possibly exceeding 10% of the total population. Lack of identity papers denies the Roma access to health, education and utility services, creating a concentration of serious poverty indicators. Just over half of their children complete primary education and only about 15% of the parents can be found in conventional full-time employment.
A progress report for the MDGs in Romania was promised for October 2007 but has not yet surfaced.
Health in Romania
Progress in health indicators is less convincing than income poverty particularly for child mortality which is 4 times the European average. The incidence of tuberculosis is by far the highest in Europe with over 30,000 patients. The transition from the health services model of the communist era has been difficult. Maintenance of buildings and equipment has focused on showpiece hospitals in the cities at the expense of rural clinics. Staff are underpaid so that the provision of care and drugs has become riddled with petty corruption. Poor farming families cannot afford these payments and may live some distance from a competent health centre.
Romania was the first Eastern European country to announce an HIV/AIDS case in 1985. The lack of tests for blood transfusions in the late 1980s meant that 60% of Europe's HIV/AIDS paediatric cases were registered in Romania. Poor public awareness, the disruption at that time of the administration in general and the health system in particular created a worrying image for Romania in terms of dealing with this disease.
The national response to HIV and AIDS became more structured in 2000 when the Romanian government developed a National AIDS Strategy for surveillance, control and prevention of HIV/AIDS cases. All those in need now receive full antiretroviral treatment and Romania is one of the countries in the region best equipped for dealing with the pandemic. The incidence of HIV infection is low and falling.
The Economy in Romania
After the collapse of the communist regime in 1989 Romania started the task of transforming its state central planning into a market economy, including the privatisation of most of its state-owned enterprises. The central goal of this period was membership of the European Union (EU). This undertaking proved to be difficult with uneven results but by 2004 a report of the European Commission concluded that Romania has a functioning market economy.
With unemployment below 5%, wages rising sharply and major manufacturers such as Nokia relocating factories to Romania, prospects for further poverty reduction would seem promising. But it is the fate of agriculture that holds the key – 30% of the workforce, and most of the poorest workers, are engaged in this sector. Over 4 million small farms, largely managed by traditional methods, are critical in varying degrees to the rural economy. European standards and competition present an uncertain mix of threat and opportunity. Provided that Romania can introduce modern financial controls to prevent abuse, vast subsidies will become available, rising each year until maturity in 2014. But small farms may not survive and the trend of rural poverty may be determined by the capacity of households to cope with fundamental change.
Foreign investment in Romania is regarded as an economic success story but the attention of the Canadian-owned Rosia Montana Gold Corporation has been less than welcome to the village of that name in the Apuseni Mountains. This is a test for Romania’s fledgling civil society campaigning groups who allege that the proposed open cast gold mine would destroy the landscape. The company claims that the project would clean up the mess of thousands of years of small scale mining and bring employment. The Ministry for Environment and Sustainable Development has suspended the company’s work on an environmental impact assessment, referring the case to the courts; in return the company is suing the Romanian state.
Climate Change in Romania
EU membership may not be the only significant influence on Romanian farming in the early 21st century. Many areas of the country are prone to drought, increasingly so in recent decades according to the country’s National Strategy on Climate Change 2005-2007 document. In 2007, the wheat harvest was down 46%. Exceptionally high temperatures and water shortages have become familiar and are predicted to reduce crop yields.
Romania is itself an Annex 1 country for the purposes of the Kyoto Protocol and has a commitment to reduce the level of 1990 greenhouse gas emissions by 8%. Due to the post-1989 economic reconstruction, emissions have fallen by around 50% and the country is adopting energy efficiencies for their own sake rather than the pursuit of targets.
Politics in Romania
After the violent fall of communism in 1989, Romania started a long and sinuous journey towards democracy. Even though there has been great progress in institutionalising democratic principles, many of the most prominent politicians active today are former members of what was called the Romanian Communist Party. Many also have close business connections in which the post-1989 history of privatisation of state assets is likely to have featured. The faultlines in these qualifications for public office have been brutally exposed by EU pressure to stamp out corruption.
The last round of presidential and parliamentary elections held in 2004 brought together the National Liberal Party (PNL) led by prime minister Calin Popescu Tariceanu and the Democratic Party headed by the elected president, Traian Basescu, in a centrist political alliance called Justice and Truth Dreptate si Adevar. Despite Romania’s status as a parliamentary republic, considerable powers are awarded to the president. The consequence was a complete breakdown in the relationship with the prime minister and the coalition collapsed in early 2007. Tariceanu now governs from a minority base of only 20% of the legislature. The leftist opposition Social Democrats then successfully moved a motion to impeach the president on grounds of over-reaching his constitutional role but the subsequent public referendum in May 2007 gave strong backing to Basescu.
The root cause of these dysfunctional relationships lies in differences over the appropriate degree of vigour with which the Anti-Corruption Directorate should pursue its brief. The prime minister and his party appear to be resisting laws which might strengthen the investigative powers of the Directorate; the president wants a more determined approach to bring corrupt senior officials to justice. The EU has so far taken the president’s side, criticising the failure of the courts to pass judgement. For example, the highest ranking prosecution is that of former prime minister, Adrian Nastase, but his case has been set aside on a technicality.
Conditions attached to Romania’s membership permit the EU to withhold funding if progress on this issue is too slow. The tone of the monitoring reports suggest that this sanction is likely to be enforced on current performance. The opportunity for a much-needed fresh start may come with the next parliamentary election which is due no later than November 2008. However, both houses of parliament are elected by proportional representation, a system which some observers fear will prove inappropriate to enabling a more credible political environment. At stake is the small matter of potential EU regional support grants totalling 30 billion euros by 2013.
Human Rights in Romania
European observers are also less than convinced by Romania’s ability to enforce anti-discrimination leglislation, especially in the context of the Roma communities who experience difficulties with access to education, health and employment opportunities. On the other hand, generous EU funding should become available for social support groups working to assist the Roma.
Romania has been caught up in the international "rendition" controversy over the existence of possible CIA secret jails (where terrorist suspects are interrogated outside the protection of their legal rights under American law) in some Eastern European countries. The Government, the Romanian military and the American government have denied the existence of such detention centres but Council of Europe investigations claim to have uncovered evidence that the jails existed and with the knowledge of senior government officials. The issue remains the subject of inquiries in Europe.
The OneWorld Romania Guide was first published in December 2005 with a text written by Volunteer Editor Ruxandra Ratiu
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In common with other upper middle-income countries, Romania has created its own set of national targets to fulfil the spirit of the Millennium Development Goals (MDGs). An unusual feature is the truncation of the normal 1990-2015 assessment period into a much shorter timeframe with a baseline of 2002 and completion of 2009 or even earlier. This makes it more difficult for the government to defer adequate funding for poverty reduction programmes but raises an element of doubt as to whether progress is the result of fortuitous short term factors as opposed to fundamental redistribution of resources.
Romania’s claim to have achieved the MDG target for its measure of “severe poverty” appears to be soundly based. This indicator fell from 10.9% in 2002 to 4.1% in 2006, having stood at just under 10% in 1994. Rural poverty by this measure is over three times that in the cities. Although short of European standards, Romania does offer a social safety net, including pensions and minimum wage legislation to protect low paid workers. The general trend is confirmed in World Bank figures based on a broader poverty measure of people living on less than $3 per day which fell from 36% in 2000 to 13.8% in 2006.
The most serious poverty issue for the Romanian government is the position of the Roma minority; such is their marginalisation that even their numbers are unknown. The government acknowledges over 0.5 million whose identity is registered but civil society groups believe there may be as many as 2-3 million Roma people in Romania, more than any other Central and Eastern European country, possibly exceeding 10% of the total population. Lack of identity papers denies the Roma access to health, education and utility services, creating a concentration of serious poverty indicators. Just over half of their children complete primary education and only about 15% of the parents can be found in conventional full-time employment.
A progress report for the MDGs in Romania was promised for October 2007 but has not yet surfaced.
Health in Romania
Progress in health indicators is less convincing than income poverty particularly for child mortality which is 4 times the European average. The incidence of tuberculosis is by far the highest in Europe with over 30,000 patients. The transition from the health services model of the communist era has been difficult. Maintenance of buildings and equipment has focused on showpiece hospitals in the cities at the expense of rural clinics. Staff are underpaid so that the provision of care and drugs has become riddled with petty corruption. Poor farming families cannot afford these payments and may live some distance from a competent health centre.
Romania was the first Eastern European country to announce an HIV/AIDS case in 1985. The lack of tests for blood transfusions in the late 1980s meant that 60% of Europe's HIV/AIDS paediatric cases were registered in Romania. Poor public awareness, the disruption at that time of the administration in general and the health system in particular created a worrying image for Romania in terms of dealing with this disease.
The national response to HIV and AIDS became more structured in 2000 when the Romanian government developed a National AIDS Strategy for surveillance, control and prevention of HIV/AIDS cases. All those in need now receive full antiretroviral treatment and Romania is one of the countries in the region best equipped for dealing with the pandemic. The incidence of HIV infection is low and falling.
The Economy in Romania
After the collapse of the communist regime in 1989 Romania started the task of transforming its state central planning into a market economy, including the privatisation of most of its state-owned enterprises. The central goal of this period was membership of the European Union (EU). This undertaking proved to be difficult with uneven results but by 2004 a report of the European Commission concluded that Romania has a functioning market economy.
With unemployment below 5%, wages rising sharply and major manufacturers such as Nokia relocating factories to Romania, prospects for further poverty reduction would seem promising. But it is the fate of agriculture that holds the key – 30% of the workforce, and most of the poorest workers, are engaged in this sector. Over 4 million small farms, largely managed by traditional methods, are critical in varying degrees to the rural economy. European standards and competition present an uncertain mix of threat and opportunity. Provided that Romania can introduce modern financial controls to prevent abuse, vast subsidies will become available, rising each year until maturity in 2014. But small farms may not survive and the trend of rural poverty may be determined by the capacity of households to cope with fundamental change.
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| Rosia Montana, under threat from mining in Romania © Ruxandra Ratiu |
Climate Change in Romania
EU membership may not be the only significant influence on Romanian farming in the early 21st century. Many areas of the country are prone to drought, increasingly so in recent decades according to the country’s National Strategy on Climate Change 2005-2007 document. In 2007, the wheat harvest was down 46%. Exceptionally high temperatures and water shortages have become familiar and are predicted to reduce crop yields.
Romania is itself an Annex 1 country for the purposes of the Kyoto Protocol and has a commitment to reduce the level of 1990 greenhouse gas emissions by 8%. Due to the post-1989 economic reconstruction, emissions have fallen by around 50% and the country is adopting energy efficiencies for their own sake rather than the pursuit of targets.
Politics in Romania
After the violent fall of communism in 1989, Romania started a long and sinuous journey towards democracy. Even though there has been great progress in institutionalising democratic principles, many of the most prominent politicians active today are former members of what was called the Romanian Communist Party. Many also have close business connections in which the post-1989 history of privatisation of state assets is likely to have featured. The faultlines in these qualifications for public office have been brutally exposed by EU pressure to stamp out corruption.
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| Calin Popescu Tariceanu |
The root cause of these dysfunctional relationships lies in differences over the appropriate degree of vigour with which the Anti-Corruption Directorate should pursue its brief. The prime minister and his party appear to be resisting laws which might strengthen the investigative powers of the Directorate; the president wants a more determined approach to bring corrupt senior officials to justice. The EU has so far taken the president’s side, criticising the failure of the courts to pass judgement. For example, the highest ranking prosecution is that of former prime minister, Adrian Nastase, but his case has been set aside on a technicality.
Conditions attached to Romania’s membership permit the EU to withhold funding if progress on this issue is too slow. The tone of the monitoring reports suggest that this sanction is likely to be enforced on current performance. The opportunity for a much-needed fresh start may come with the next parliamentary election which is due no later than November 2008. However, both houses of parliament are elected by proportional representation, a system which some observers fear will prove inappropriate to enabling a more credible political environment. At stake is the small matter of potential EU regional support grants totalling 30 billion euros by 2013.
Human Rights in Romania
European observers are also less than convinced by Romania’s ability to enforce anti-discrimination leglislation, especially in the context of the Roma communities who experience difficulties with access to education, health and employment opportunities. On the other hand, generous EU funding should become available for social support groups working to assist the Roma.
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| Romanian Airforce base © Christian Science Monitor |
The OneWorld Romania Guide was first published in December 2005 with a text written by Volunteer Editor Ruxandra Ratiu
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