This business presentation is about Romanian Economy Crisis. The economic recovery started in 2000, which was also the year when the accession negotiations with the EU were opened. Even if they went slower compared to the other accession countries, Romania entering the EU almost three years later, on January 1st 2007, the economic growth followed a constant, up-growing trend. It resulted in a period of econom ic prosperity with mid and long term optimistic expectations, despite serious warnings on some unsustainable growth co-ordinates. Thus, these expectations were sharply broken in the last quarter of 2008, firstly as a reaction to the external shocks of the global financial and economic crisis. While some former transition countries found the internal engines to cope with crisis challenges and have already passed the critical point in terms of recovery, Romania is still in the crisis turmoil and a modest, if any, economic recovery is expected only in the second half of 2011, given deep internal vulnerabilities that amplify the impact of international shocks. Based on the above overall considerations this paper proposes Romania as a relevant case study for the manifestations of the current global crisis. It aims to examine how the hardships of transition and the weaknesses and imbalances in economic, social and institutional terms influenced the reactions to the global crisis,demonstrating that, in this case, the global crisis only hastened the inevitable domestic crisis and raised its costs by adding to the pre-existing problems. Reflections on the policy responses to crisis challenges are also provided, taking into consideration both the internal and international context. The paper is organized as follows. Section 2 focuses on the institutional, economic and social factors of the process of transition to the market economy in Romania, pointing out the drawbacks and negative consequences of the gradual transfor mation process on subsequent evolutions. Section 3 addresses the main factors responsible for the current crisis in Romania, analysing both the external influences and internal elements conducive to the massive recession. Section 4explores the prospects for future development, followed by a discussion on the possible solutions for recovery in Section 5.
Posted on: Mon, 02 Dec 2013 12:16:45 +0000
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