Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European Union

This paper examines the Romanian economy and its version of capitalism from a long-term perspective and in a broad context. It focuses on economic prospects in the face of a legacy of backwardness and the endurance of domestic weaknesses, in the context of the Great Recession and the eurozone crisis...

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Main Authors: Daniel Dăianu, Bogdan Murgescu
Format: Article
Language:English
Published: European Institute of Romania 2013-12-01
Series:Romanian Journal of European Affairs
Subjects:
Online Access:https://rjea.ier.gov.ro/wp-content/uploads/articole/RJEA_2013_vol13_no4_dec2013_art1.pdf
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author Daniel Dăianu
Bogdan Murgescu
author_facet Daniel Dăianu
Bogdan Murgescu
author_sort Daniel Dăianu
collection DOAJ
description This paper examines the Romanian economy and its version of capitalism from a long-term perspective and in a broad context. It focuses on economic prospects in the face of a legacy of backwardness and the endurance of domestic weaknesses, in the context of the Great Recession and the eurozone crisis. Romania has a pressing need to mobilise its internal resources and absorb EU funds on a much greater scale so that it can enhance economic growth and mitigate external shocks. To this end, Romania needs to undertake thorough reforms in the public sector, combat rent-seeking and waste, foster domestic savings. The functioning of institutions and of taxation should convey a sense of fairness to citizens. Romania needs to rethink its growth model. Romania must improve its education system by increasing the level of resources assigned to education and creating coherent policies to strengthen institutional capacities and to improve quality standards. The Romanian economy would benefit significantly from EU policies that are more responsive to the economic and social fractures revealed by the current crisis. Not least, financial markets have to be tamed in Europe and elsewhere if they are to serve economies.
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publishDate 2013-12-01
publisher European Institute of Romania
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spelling doaj-art-94b455afbc02492a90f1ead634220eb62025-08-20T02:21:16ZengEuropean Institute of RomaniaRomanian Journal of European Affairs1582-82711841-42732013-12-01134534Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European UnionDaniel Dăianu0Bogdan Murgescu1Professor of Economics at the National School of Political and Administrative Studies, BucharestProfessor of Economic History at Bucharest UniversityThis paper examines the Romanian economy and its version of capitalism from a long-term perspective and in a broad context. It focuses on economic prospects in the face of a legacy of backwardness and the endurance of domestic weaknesses, in the context of the Great Recession and the eurozone crisis. Romania has a pressing need to mobilise its internal resources and absorb EU funds on a much greater scale so that it can enhance economic growth and mitigate external shocks. To this end, Romania needs to undertake thorough reforms in the public sector, combat rent-seeking and waste, foster domestic savings. The functioning of institutions and of taxation should convey a sense of fairness to citizens. Romania needs to rethink its growth model. Romania must improve its education system by increasing the level of resources assigned to education and creating coherent policies to strengthen institutional capacities and to improve quality standards. The Romanian economy would benefit significantly from EU policies that are more responsive to the economic and social fractures revealed by the current crisis. Not least, financial markets have to be tamed in Europe and elsewhere if they are to serve economies. https://rjea.ier.gov.ro/wp-content/uploads/articole/RJEA_2013_vol13_no4_dec2013_art1.pdfcapitalismromaniaeurozonetransitioneconomic growthcrisis
spellingShingle Daniel Dăianu
Bogdan Murgescu
Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European Union
Romanian Journal of European Affairs
capitalism
romania
eurozone
transition
economic growth
crisis
title Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European Union
title_full Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European Union
title_fullStr Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European Union
title_full_unstemmed Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European Union
title_short Which Way Goes Romanian Capitalism? – Making a Case for Reforms, Inclusive Institutions and a Better Functioning European Union
title_sort which way goes romanian capitalism making a case for reforms inclusive institutions and a better functioning european union
topic capitalism
romania
eurozone
transition
economic growth
crisis
url https://rjea.ier.gov.ro/wp-content/uploads/articole/RJEA_2013_vol13_no4_dec2013_art1.pdf
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AT bogdanmurgescu whichwaygoesromaniancapitalismmakingacaseforreformsinclusiveinstitutionsandabetterfunctioningeuropeanunion