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The Obstacles to Social-Economic Change in Post-Communist Romania

Author(s): NAGY EGON

Journal: Romanian Review of Regional Studies
ISSN 1841-1576

Volume: I;
Issue: 1-2;
Start page: 69;
Date: 2005;
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Keywords: Social-economic change | Macroeconomics | Economic development | Romania

The aim of this paper is to study the macroeconomic phase which characterizes present-day Romania, 15 years after the regime- change, embedded into that regional context which Romania is part of. The regional importance of this paper is that Romania is the biggest state of the southeastern region as far as territory and population are concerned. For this reason the country’s economic development cannot be indifferent to the neighbouring states, as it can have positive or negative social effects on them. The Romanian society was passing through a slowly and difficult process of democratization and economic liberalization during the nineties and the turn of the millenium, which was a similar way to the other post-socialist East European countries. The NATO membership of Romania and the imminent EU membership in 2007 are important stimuli to make further progresses on the way to functional capitalism and welfare. As an express of the efficient economy policy at the end of the social-democratic administration the economical growth of Romania rose to the incredible rate of 8.1%, while the budget deficit was only 1.3%. In the autumn of 2004 was elected a right, liberal coalition-government, which began his activity with a radical fiscal reform introducing a unique rate of taxes (16%). In this circumstances the possibility of the avalanche of the FDIs is a real expectance, but Romania still have to fulfill some other requirements, such as the reducing of the almost generalized corruption and to maintain the balance of the budget according to the agreement with the IMF, in order to became a major economic competitor of the Central-Eastern European region.
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