Markets and People : Romania Country Economic Memorandum

Romania’s income per capita has increased from 26 percent of the EU-28 average in 2000 to 63 percent in 2017, but this economic success rests on the wobbly foundations of unfavorable demographics, weak human capital, and ineffective institutions. Going forward, stronger competition and better human...

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Bibliographic Details
Main Author:	World Bank
Format:	Book
Language:	English
Published:	Washington, DC: World Bank 2020
Subjects:	SKILLS GROWTH COMPETITION PRODUCTIVITY CONVERGENCE HUMAN CAPITAL HCI HUMAN CAPITAL INDEX MARKET REGULATION COMPETITION POLICY STATE-OWNED ENTERPRISES REGIONAL DISPARITIES PRIMARY EDUCATION SECONDARY EDUCATION LEARNING GAP SCHOOL PERFORMANCE TEACHER RECRUITMENT LABOR SKILLS DEVELOPMENT LABOR MARKET
Online Access:	https://documents.worldbank.org/en/publication/documents-reports/documentdetail/294831583173658317/markets-and-people-romania-country-economic-memorandum http://hdl.handle.net/10986/33236

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recordtype	oai_dc
spelling	okr-10986-332362021-04-23T14:05:18Z Markets and People : Romania Country Economic Memorandum World Bank SKILLS GROWTH COMPETITION PRODUCTIVITY CONVERGENCE HUMAN CAPITAL HCI HUMAN CAPITAL INDEX MARKET REGULATION COMPETITION POLICY STATE-OWNED ENTERPRISES REGIONAL DISPARITIES PRIMARY EDUCATION SECONDARY EDUCATION LEARNING GAP SCHOOL PERFORMANCE TEACHER RECRUITMENT LABOR SKILLS DEVELOPMENT LABOR MARKET Romania’s income per capita has increased from 26 percent of the EU-28 average in 2000 to 63 percent in 2017, but this economic success rests on the wobbly foundations of unfavorable demographics, weak human capital, and ineffective institutions. Going forward, stronger competition and better human capital are critical to increasing the economy’s growth potential. Romanian manufacturing ﬁrms are exposed to domestic and international competition, ensuring the ﬂow of resources and market shares to more efﬁcient players. This has not been the case for services, where anticompetitive regulations and direct state control often limit efﬁciency gains. Romanian state-owned enterprises do not compete on an equal footing with private sector ﬁrms, distorting market outcomes and hampering the efﬁcient allocation of resources. Removal of these restrictions would have a signiﬁcant positive impact on GDP growth. Competitively neutral policies are needed to ensure that all enterprises, public or private, domestic or foreign, face the same set of rules. Romania’s human capital accumulation--proxied by the World Bank’s Human Capital Index (HCI)--is the lowest in the European Union and varies widely across counties. Disparities in education outcomes remain relevant across and within regions of Romania. Learning gaps in primary and secondary education persist. These can be seen clearly between urban and rural areas, across regions, and across social groups, requiring changes both at the systems level and at the learning-center level. In the labor market, the automation of production processes has started driving demand for higher levels of cognitive skills, while jobs involving the routine application of procedural knowledge are shrinking in number. A paradigm shift would require reforms in primary and secondary schooling, in addition to more targeted actions, to establish an effective skills development system to bolster human capital. 2020-01-23T22:19:38Z 2020-01-23T22:19:38Z 2020-01-30 Book https://documents.worldbank.org/en/publication/documents-reports/documentdetail/294831583173658317/markets-and-people-romania-country-economic-memorandum 978-1-4648-1503-4 http://hdl.handle.net/10986/33236 English International Development in Focus; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC: World Bank Publications & Research Publications & Research :: Publication Europe and Central Asia Romania
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	SKILLS GROWTH COMPETITION PRODUCTIVITY CONVERGENCE HUMAN CAPITAL HCI HUMAN CAPITAL INDEX MARKET REGULATION COMPETITION POLICY STATE-OWNED ENTERPRISES REGIONAL DISPARITIES PRIMARY EDUCATION SECONDARY EDUCATION LEARNING GAP SCHOOL PERFORMANCE TEACHER RECRUITMENT LABOR SKILLS DEVELOPMENT LABOR MARKET
spellingShingle	SKILLS GROWTH COMPETITION PRODUCTIVITY CONVERGENCE HUMAN CAPITAL HCI HUMAN CAPITAL INDEX MARKET REGULATION COMPETITION POLICY STATE-OWNED ENTERPRISES REGIONAL DISPARITIES PRIMARY EDUCATION SECONDARY EDUCATION LEARNING GAP SCHOOL PERFORMANCE TEACHER RECRUITMENT LABOR SKILLS DEVELOPMENT LABOR MARKET World Bank Markets and People : Romania Country Economic Memorandum
geographic_facet	Europe and Central Asia Romania
relation	International Development in Focus;
description	Romania’s income per capita has increased from 26 percent of the EU-28 average in 2000 to 63 percent in 2017, but this economic success rests on the wobbly foundations of unfavorable demographics, weak human capital, and ineffective institutions. Going forward, stronger competition and better human capital are critical to increasing the economy’s growth potential. Romanian manufacturing ﬁrms are exposed to domestic and international competition, ensuring the ﬂow of resources and market shares to more efﬁcient players. This has not been the case for services, where anticompetitive regulations and direct state control often limit efﬁciency gains. Romanian state-owned enterprises do not compete on an equal footing with private sector ﬁrms, distorting market outcomes and hampering the efﬁcient allocation of resources. Removal of these restrictions would have a signiﬁcant positive impact on GDP growth. Competitively neutral policies are needed to ensure that all enterprises, public or private, domestic or foreign, face the same set of rules. Romania’s human capital accumulation--proxied by the World Bank’s Human Capital Index (HCI)--is the lowest in the European Union and varies widely across counties. Disparities in education outcomes remain relevant across and within regions of Romania. Learning gaps in primary and secondary education persist. These can be seen clearly between urban and rural areas, across regions, and across social groups, requiring changes both at the systems level and at the learning-center level. In the labor market, the automation of production processes has started driving demand for higher levels of cognitive skills, while jobs involving the routine application of procedural knowledge are shrinking in number. A paradigm shift would require reforms in primary and secondary schooling, in addition to more targeted actions, to establish an effective skills development system to bolster human capital.
format	Book
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Markets and People : Romania Country Economic Memorandum
title_short	Markets and People : Romania Country Economic Memorandum
title_full	Markets and People : Romania Country Economic Memorandum
title_fullStr	Markets and People : Romania Country Economic Memorandum
title_full_unstemmed	Markets and People : Romania Country Economic Memorandum
title_sort	markets and people : romania country economic memorandum
publisher	Washington, DC: World Bank
publishDate	2020
url	https://documents.worldbank.org/en/publication/documents-reports/documentdetail/294831583173658317/markets-and-people-romania-country-economic-memorandum http://hdl.handle.net/10986/33236
_version_	1764478289250877440

Markets and People : Romania Country Economic Memorandum

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